hVIVO PLC (AIM:HVO) shares have jumped 50% in two days to 9.13p after ILiAD Biotechnologies secured $115 million in Series B financing, strengthening expectations that a previously signed letter of intent could convert into a full contract.
In a flash note, Stifel said the fundraising clears a key hurdle that had prevented hVIVO from converting a January 2025 letter of intent to run a pivotal phase III human challenge trial for ILiAD’s BPZE1 intranasal pertussis vaccine.
The broker said the oversubscribed round, led by RA Capital with participation from Janus Henderson and BNP Paribas, represents strong validation of the vaccine and renewed appetite for infectious disease investment despite sector headwinds.
Stifel estimates the potential contract could be worth about £15 million and noted that hVIVO’s £40 million order book did not include the ILiAD letter of intent.
The shares had already risen 17% on the day of the ILiAD announcement, and the rally has since extended as investors price in a higher probability of conversion.
Stifel retains a 'hold' rating and 10p price target, saying formal confirmation of a definitive contract would help underpin 2026 revenue growth guidance.