hVIVO PLC's (AIM:HVO) new contract with Inhalon Biopharma has strengthened Peel Hunt’s confidence in the company’s medium-term order book, adding visibility into 2026 and beyond.
The deal will see hVIVO run a phase IIa human challenge trial to test IN-002, an inhaled antibody treatment for respiratory syncytial virus (RSV).
Peel highlighted that this is the second such trial secured in recent months, following an £11.5 million RSV challenge trial announced in December 2024.
“This demonstrates to us the continued competition within the RSV space and the momentum across BioPharma for faster data generation, facilitated by the human challenge trial format,” the broker said.
Inhalon has said there is an unmet need for RSV treatments, with existing vaccines underused and hospitalisations remaining high. The success of Sanofi’s RSV antibody Beyfortus has highlighted the commercial opportunity.
Peel also pointed to hVIVO’s recent Letter of Intent for a phase III whooping cough trial, expected to start in the second half of 2025. The data from that study is intended for use in a regulatory submission, showing confidence in challenge trials for pivotal data generation.
The broker said it is not adjusting its forecasts, having recently updated its model, but noted that hVIVO’s valuation remains attractive at 7.7 times estimated earnings for 2025 and 6.5 times for 2026.
Peel says 'buy' up to 34p - almost double the current price of 18.85p.