hVIVO (HVO) is a specialty biopharma discovery and clinical testing company that is pioneering  a human disease technology platform that models respiratory (airway) and infectious diseases. After raising £20m at 225p this could be the last year of losses…….

The Interims to June reported the strongest sales pipeline for several years and translation into active negotiations, with top-tier pharmaceutical companies, should lead to long term contracts. Based in the UK, more than 50 clinical studies have conducted with over 2,500 volunteers inoculated. hVIVO is currently presenting at the Influenza Vaccines World conference at the Royal College of Physician in Edinburgh until Thursday 4th April.

hVIVO are a clinical development services business pioneering human disease models based upon viral and allergen challenge. It is pioneering a human-based clinical trial platform to accelerate drug and vaccine development in respiratory and infectious diseases. Leveraging human disease models in flu, RSV, HRV and respiratory indications. The hVIVO platform captures disease in motion, illuminating the entire disease life cycle from healthy to sick and back to health.

The finals on Thursday 11th should report continued progress in the flu contagiousness project where cost is being shared with the Defence Advanced Research Projects Agency (DARPA). Interim losses were reduced to £4.4m compared to £7.7m, benefitting from both cost reduction initiatives and increased revenues. This trend is expected to continue to break-even for the current year-end to December 2019. The shares are tightly held as 73.2% are not in public hands with Woodford Investment the largest holding at 29.3%followed by Invesco with 26.4%.

Financials

Interim net cash was £10.7m before the receipt of a R&D tax credit refund claim of £2.5m. Therefore, further funds for working capital should not be needed.

Trading Strategy

This could be the time to buy…. fill your lungs!

hVIVO (LSE: HVO)

25p (24-26p)

Mkt Cap: £21.5m

Next Results: Finals Thurs 11th

This tip was written by Jon Levinson as part of the OMG Newsletter