Cavendish has maintained its 'buy' recommendation and 16.5p target price on hVIVO PLC (AIM:HVO) following the clinical development specialist's announcement of a new influenza human challenge trial contract with Traws Pharma.
The broker described the deal as consistent with the company's strong offering in the antiviral market.
The broker notes that while the financial value of the contract has not been disclosed, it expects the deal to be larger than average, given the approximately 150 participants involved, with the majority of revenues to be recognised through 2026.
Cavendish highlights that TXM, the oral antiviral candidate being tested, is a cap-dependent endonuclease inhibitor targeting seasonal influenza and bird flu, and that the contract aligns closely with hVIVO's established expertise in respiratory antiviral challenge trials.
The broker draws a direct line between the contract win and hVIVO's presentation at the World Vaccine Congress in May 2025, at which the company showcased new challenge models, including its B Connecticut/21, H1N1 A/France/21 and H3N2 A/England/22 influenza agents, saying the announcement validates that presentation.
Cavendish is leaving its forecasts unchanged ahead of hVIVO's full year 2025 results, due on 15 April, noting the company's January trading update guided to revenues of approximately £46.7 million, a positive low single-digit adjusted EBITDA margin, and year-end cash of approximately £14.3 million.
At the current share price of 8p, Cavendish's 16.5p target implies upside of more than 100%.