Shares in hVIVO PLC have advanced 63% over two trading sessions, rising to 9.98p (day high 10.20p), following news that ILiAD Biotechnologies has secured $ 115 million in Series B financing.
The development has heightened market expectations that a previously agreed letter of intent may progress to a binding contractual arrangement.
According to Stifel’s analysis, the capital raise addresses a significant impediment that had prevented the conversion of a letter of intent signed in January 2025. The agreement relates to a proposed pivotal phase three human challenge trial for ILiAD’s BPZE1 intranasal pertussis vaccine, which hVIVO would conduct.
The oversubscribed financing round was led by RA Capital, with participation from Janus Henderson and BNP Paribas. Stifel characterised the outcome as strong validation of the vaccine candidate and an indication of revived investor interest in the infectious disease sector, notwithstanding broader headwinds affecting the industry.
Stifel’s analysts estimate that the potential contract could be valued at approximately 15 million pounds. The broker noted that hVIVO’s existing order book of 40 million pounds does not currently incorporate the ILiAD letter of intent, suggesting material upside should the agreement be formalised.
The share price initially rose 17% on the day ILiAD’s funding announcement was made public. The rally has subsequently extended as market participants assign a higher probability to the conversion of the letter of intent into a definitive contract.
Stifel has maintained its hold rating on hVIVO shares, with a price target of 10 pence. The broker indicated that formal confirmation of a binding agreement would provide support for the company’s revenue growth guidance for 2026.
