hVIVO stock plunges after contract cancellations in 'depressed' market

hVIVO PLC on Friday suffered a dive in its share price after reporting the cancellation of a ‘significant’ human challenge trial contract.

The London-based contract research organisation testing vaccines for infectious and respiratory diseases also noted a postponement and a small study cancellation.

hVIVO shares plunged 46% to 8.80 pence each on Friday morning in London.

The firm suggested business was cooling due to ‘uncertainties in the pharmaceutical industry and the continued depressed biotech financing market’.

hVIVO has £47 million in revenue contracted for financial 2025, inclusive of cancellation and postponement fees, and anticipates further contract wins during the year. The company said it is in advanced talks for possible contracts commencing in late 2025, which could provide ‘significant revenue’.

Nonetheless, current contracted revenue is expected to result in a mid-single-digit operating loss for the year.

‘We still remain confident in the continued growth of human challenge trials and the overall prospects for hVIVO as we also continue to diversify our revenue streams,’ said Chief Executive Yamin ’Mo’ Khan.

‘We currently have our largest ever sales pipeline, including projects under discussion that would represent some of our largest ever value contracts for human challenge trials,’ Khan added.

hVIVO said further cancellations were unlikely, as all but one of its contracts for 2025 have commenced, and noted that an updated outlook will be provided later in the year.

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