This transformation began earlier this year. hVivo, a drug-testing company saw its share price double from 10p to 22p over the year.
hVivo conducts “human challenge trials,” where healthy individuals are administered doses of potential new medicines to evaluate their effectiveness. These trials are carried out in quarantine settings, aiming to accelerate the market introduction of new products.
Led by CEO Mo Khan, hVivo experienced a remarkable 2023.
Recently, Khan announced that this year’s results are expected to surpass forecasts, with 2024 looking even more promising.
The company has secured a significant £17 million testing contract and plans to open a new, advanced quarantine facility next year to expand its trial capacity and boost yearly revenue.
The new facility, located in Canary Wharf, London, will be predominantly financed by clients, reflecting the high regard for hVivo’s services.
hVivo’s impact on drug development became evident earlier this year. After conducting a trial with hVivo, Pfizer obtained approval for the first RSV vaccine, a potentially lethal flu-like virus for infants and the elderly.
This vaccine, aided by hVivo, will now be available much sooner, potentially saving numerous lives.
hVivo is also conducting trials for other diseases, including flu, malaria, and HMPV, a virus dangerous for those with weakened immune systems.
A January trading update is expected to further boost investor confidence, with analysts predicting strong, continued growth in sales and profits. Earlier this year, Khan issued a special 0.45p dividend, hinting at similar future rewards.
Midas’s verdict: hVivo has been highly profitable for its shareholders. While some may consider taking profits at 22p, the company’s prospects suggest continued growth. Investors supportive of Khan and his team are advised to maintain their stakes.
Listed on: AIM, Symbol: HVO. For more information, visit hvivo.com or call 020 7756 0300.
