A recent capital markets day spelt out why hVIVO is so structurally well-positioned as the world-leading provider of challenge studies, according to broker Liberum.
In particular, hVIVO said big pharma is increasingly recognising the value that challenge studies bring to clinical development and view challenge data as a ‘must have’ if a developer is to be acquired.
Secondly, the regulatory landscape for challenge studies is evolving and slowly becoming more favourably overseas, added the broker.
Based on that, Liberum believes there is a material disconnect between market price and what it sees as the company’s underlying value of 21.6p.
“We see the current share price as an optimal entry point for investors to play the challenge study CRO theme,” the broker concluded.
Shares today were up 2.7% at 9.65p.