Analysts are optimistic about hVIVO PLC (AIM:HVO), a company specializing in scientific trials, following its recent success in securing a £6.3 million contract for common cold treatment research.
hVIVO is set to carry out this research using the human challenge study model, working on behalf of an undisclosed biotech company. The study aims to generate compelling evidence that could support regulatory approval and guide future research initiatives.
While hVIVO has not yet released its financial projections for 2024, Cavendish analysts anticipate a revenue increase to £60 million, up from the £55 million expected in 2023.
The company’s recent contract win, combined with a substantial £16.8 million agreement last month for RSV testing, puts hVIVO in a robust position to announce promising guidance. This guidance is expected to be part of a forthcoming trading update later in the month.
Cavendish commented on hVIVO’s prospects, stating, “As a global leader in testing vaccines and therapeutics for infectious and respiratory diseases through human challenge clinical trials, we believe hVIVO is well-placed to secure new contracts. The company’s order book has been expanding recently and is diversified across a range of clients, challenge agents, and geographic locations, laying a solid foundation for sustained revenue growth.”
Following these developments, hVIVO’s share price rose nearly 8% on Tuesday, reaching approximately 25p.
