Peel Hunt has reiterated its 'buy' rating on hVIVO PLC (AIM:HVO), setting a target price of 34p, after its client Shionogi reported strong results from an RSV human challenge trial run by the UK contract research group.
The trial showed that Shionogi’s experimental RSV antiviral, S-337395, significantly reduced viral load—by nearly 89% in the highest dose group—while also improving symptoms.
The drug was well tolerated, with no severe side effects. Given its Fast Track designation from the U.S. Food and Drug Administration (FDA), these results could help speed up its development.
Peel Hunt believes this reinforces the value of human challenge trials, which can accelerate drug approvals compared to traditional field trials.
hVIVO has now conducted 30 RSV challenge studies, proving its expertise in this space.
Beyond this trial, the brokerage sees growing momentum for hVIVO, citing its CRS acquisition, partnership with Iliad for a phase III trial, and a £3.2m contract for hLAB in January.
Despite macro concerns affecting the sector, Peel Hunt thinks the market is overlooking hVIVO’s strong progress.
The stock is currently cheap, trading at 7.5x 2025 earnings, well below the sector average of 10.5x. In afternoon trading, the stock was flat at 18.65p