For investors seeking differentiated exposure to innovation in the drug development sector, Cavendish believes hVIVO PLC (AIM:HVO) offers a 'compelling' route in.
The company runs human challenge trials, a niche but increasingly strategic part of vaccine development that helps accelerate timelines and reduce costs for drugmakers.
At the recent World Vaccine Congress, hVIVO showcased its expanding portfolio of viral challenge models.
These included newer strains of influenza and respiratory viruses, where traditional field trials can be slow and costly.
Cavendish noted strong industry interest in hVIVO’s human metapneumovirus and Flu B models, which currently face little competition.
It also highlighted hVIVO’s emerging use of thermal imaging to track fever responses in infected participants. This kind of clinical innovation could offer added value in future trials.
The broker maintains a 35p target price, nearly double the current share price, pointing to the company’s steady revenue growth, strong net cash position of £44.2 million and increasing relevance to vaccine developers.
Amid political uncertainty in US public health policy, Cavendish views hVIVO’s focus on efficient data generation through challenge trials as a structural advantage.
The shares were changing hands for 17.49p each.