hVIVO PLC (AIM:HVO) has reported revenues of £24.2 million for the first half of 2025, broadly in line with expectations for full-year revenues of £47 million, as the company continues to diversify its clinical services through recent acquisitions.
Cavendish said the acquisitions of CRS and Cryostore contributed £5.2 million and £0.3 million respectively during the period.
This has expanded hVIVO’s offering beyond its core human challenge trials to include therapeutic areas such as cardiometabolic and respiratory diseases.
Peel Hunt highlighted that the weighted order book stood at £40 million at the end of June, down from £71 million a year earlier.
The broker noted delays in contract conversions and cancellations, which are affecting the broader contract research organisation (CRO) sector, particularly in the US.
Despite this, hVIVO’s sales pipeline remains strong, with advanced talks underway for several large human challenge trial projects, some potentially the biggest contracts in the company’s history.
In terms of profitability, the company expects an EBITDA margin of around 12% for the first half, supported by operational efficiencies and cancellation fees.
Peel Hunt expects a low single-digit EBITDA loss for the full year, improving on previous guidance of a mid-single-digit loss.
The broker forecasts an adjusted EBITDA loss is £4.8 million for the current year, reflecting cautious optimism amid continuing macroeconomic uncertainties in the US healthcare market.
Cavendish maintains its adjusted EBITDA loss target of £5.4 million for 2025, describing the market challenges as “transitory rather than fundamental”.
The research firm notes hVIVO’s strong cash position of £23.3 million at period end and the group’s debt-free status.
Cavendish views the company’s growing diversification and robust pipeline as positioning it well for a return to growth as biopharma funding improves and the market normalises.
Both brokers highlight the challenges in the CRO sector but emphasise hVIVO’s expanding service range and pipeline as positive factors.
Peel Hunt maintains an 'add' rating with a target price of 21p, reflecting the company’s world-leading position in human challenge trials and a cautiously positive outlook.
Cavendish also keeps a target price of 20p, based on a 10.9x enterprise value to adjusted EBITDA multiple for 2026, noting that hVIVO remains materially discounted against global CRO peers.
The shares were flat at 9.92p.