hVIVO PLC (AIM:HVO) shares rose 7% to 9.8p after the clinical research company announced what broker Cavendish described as a landmark contract to run the world's first pivotal Phase III human challenge trial for a whooping cough vaccine.
Cavendish, which has a 'buy' recommendation and 16.5p target price on the stock, said the contract with US biotech ILiAD Biotechnologies represented a significant moment not just for hVIVO but for the broader human challenge trial sector.
It said it expects the trial to raise the profile of human challenge trials and could encourage other drug developers to adopt similar pivotal trial designs.
Cavendish also highlighted the strategic value of hVIVO's integrated service offering, noting that its FluCamp volunteer recruitment arm and Canary Wharf bacterial laboratory, which developed the necessary assays for the study in collaboration with ILiAD, are both central to the contract.
The trial, which will involve more than 500 healthy volunteers and test ILiAD's BPZE1 vaccine candidate against the current standard-of-care Tdap combination vaccine, is expected to be hVIVO's largest by contract value to date.
Revenue recognition is expected to span 2026 and 2027.
hVIVO currently trades at a significant discount to Cavendish's target price, which implies upside of approximately 79% from the current share price.