Whopping warning!
This 'previously' fast-growing leader in the testing of infectious diseases using human challenge studies has announced news of significant contract cancellations, which has brought a whopper of a profit warning and a big sell-off in the shares. While the issues seem temporary, in light of the big decline in revenues, we are obliged to demote it from Stonking Small Cap status.
Human Challenge Trials (HCTs), in which healthy volunteers are deliberately infected with a pathogen to study the course of a disease and the effectiveness of potential treatments, are a valuable tool for developing new vaccines and treatments for infectious diseases. The AIM company covered here provides end-to-end early clinical development services for a broad and long-standing client base of global biopharma companies. The shares have tumbled following news of contract cancellations offering a potentially interesting opportunity for bargain hunters in a previously fast-growing and still cash rih business. AIM listed hVIVO (AIM:HVO), which was previously called Open Orphan, has developed a unique…