RE: Under valued6 Jun 2025 13:37
Business as Usual... pretty much.. yeah.
As I've said before it is more common than you'd expect for contracts to be cancelled or put back several months by clients. This is usually down to either short-term funding issues or a change in priorities for the end client. The contracts rarely disappear completely...they just come back later with revised budgets, KPI's and deadlines.
Put simply if a client is looking to spend $100m in 10 years on researching/developing/manufacturing/marketing a new drug they have to make sure that everything is aligned from the beginning...literally having all their ducks in a row.
There is little or no point in them forking out several million on Phase 1 and 2 studies and trials if the investment or commerical "will" for Phase 3 and 4 are not completely in the bag. It'll only have to be done again. This can be down to external issues such as, for example, large pharma's having to adjust to the fact that with the increase in UK Employer NI contributions it's going to cost them potentially hundred of million each year just to keep their current staff employed. We also have to bear in mind that with the Trump/DOGE investigations in federal spending vast chunks of investment are being held up.
Whilst I appreciate that some short-term investors will have run fast and far away from hVIVO last week the long-term investors will appreciate that Pharma's will need to continually develop new drugs and vaccines to make a profit, pay staff, reward their own shareholders.
To do this they'll need CRO's with solid financial foundations, a strong commercial success story and a sensible Executive who will be honest, even if it means a short-term "tank" in the SP.
I firmly believe that hVIVO has all of the above and with the acquisitions made recently, especially that of CRS in Germany, they are ideally placed as a market leader in Global Clinical Trials. Ask yourself then "who will feel the benefit in years to come"?
That said...i damn near shat my pants when the SP went sub-6p last Friday morning but the median forecast by brokers STILL hovers around the 31-34p mark despite recent events. Go figure.
DYOR, Keep your fingers crossed if you have to and try not to feed the trolls :-)
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