hVIVO secures £6.3m contract with biotech client

Infectious and respiratory disease study group hVIVO has inked a £6.3m contract with an unnamed biotechnology client to test an antiviral candidate using its common cold virus human challenge study model.

hVIVO said on Tuesday that the Phase 2a randomised, double-blinded placebo-controlled human challenge trial was planned to take place at its new quarantine facilities in Canary Wharf and will evaluate the effect of the antiviral candidate on viral load, safety, tolerability, and prophylactic antiviral activity against human rhinovirus infection in multiple cohorts of healthy volunteers.

The AIM-listed group stated the study was expected to commence in the second half, with revenue to be recognised in 2024 and 2025.

Chief executive Yamin Khan said: "We are delighted to be partnering with this biotech client to investigate the use of their antiviral candidate against HRV. Our human challenge trials can provide quick efficacy data, that has the potential to significantly enhance the value of our clients' assets, something which is critical in the current tight biotech investment landscape.

"There is renewed focus and capital available to biopharma companies with assets targeting respiratory disease indications. Our HRV Human Challenge Model offers our clients the opportunity to open up these markets, given HRV's association to exacerbation of asthma and COPD."

As of 0855 GMT, hVIVO shares were up 7.37% at 25.50p.

Reporting by Iain Gilbert at Sharecast.com