The outlook for hVIVO PLC (AIM:HVO) appears to be improving, with Panmure Liberum describing the stock as "interesting at current levels" following another contract win for the clinical research group.
This latest deal adds to a string of recent agreements that signal growing confidence in the human challenge trial specialist’s prospects for 2025 and beyond.
Reiterating its ‘buy’ rating and 24p price target, the City broker noted: "The business had a tough time in 2024, with order intake slowing as the industry slowed, but the tide has now turned."
Panmure Liberum highlighted that hVIVO has secured more contracts in the first months of 2025 than it did throughout all of 2024.
Another broker, Peel Hunt, also reaffirmed its ‘buy’ recommendation, setting a higher 34p price target. By mid-morning, hVIVO shares were trading at 17.75p.
Earlier on Monday, the company announced a £2 million contract with a new biopharmaceutical client. The funding will support the final phase of its human metapneumovirus (hMPV) characterisation study, setting the stage for future human challenge trials (HCTs).
A pilot trial, announced in January, successfully demonstrated a safe, measurable, and reproducible disease model in healthy volunteers. It confirmed strong infection and symptomatic response rates while validating the optimal dose of the challenge agent.
The next phase will expand the dataset, enrolling more volunteers to strengthen the model and ensure robust trial powering.
The study is scheduled to begin in the first half of 2025, with revenue recognised within the year. Subject to successful completion and regulatory approvals, hVIVO expects to launch full hMPV human challenge trials in the second half of the year.