HOOKIPA Pharma Announces $21.25 Million Equity Investment from Gilead Sciences
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Insights
The equity investment by Gilead Sciences into HOOKIPA Pharma is a strategic financial move that consolidates Gilead's stake in a potential breakthrough in HIV treatment. The purchase of 15 million shares at a price of $1.4167 per share, totaling approximately $21.25 million, increases Gilead's ownership to 19.4% of HOOKIPA’s outstanding shares. This transaction not only infuses HOOKIPA with capital but also strengthens the partnership between the two companies, indicating a heightened level of commitment from Gilead towards HOOKIPA’s arenavirus platform.
From an investment perspective, this could signal confidence in HOOKIPA’s technology and its future market potential. The deal also includes a clause allowing HOOKIPA to issue additional shares to Gilead, suggesting a long-term interest. The immediate financial impact for HOOKIPA is positive, providing them with the necessary funds to advance their HIV therapeutic program into clinical trials. For Gilead, this investment could yield significant returns if the trials prove successful and the treatment reaches the market, though it also represents a risk should the trials not meet their endpoints.
The advancement of HOOKIPA's proprietary arenavirus platform, particularly the HB-500 for HIV, is of significant interest in the medical community. Gilead's investment supports the progression of this program into Phase 1 clinical trials, which is a critical step in the development of new therapeutics. The FDA's clearance for the Investigational New Drug application is a pivotal milestone that allows for the commencement of human trials and it reflects regulatory confidence in the initial preclinical data.
The arenavirus platform represents a novel approach in immunotherapy, potentially offering a new mechanism of action against HIV. If successful, it could address a substantial unmet medical need and offer a functional cure for HIV, which would be a landmark achievement in medicine. The long-term implications for patients and the healthcare system could be transformative, leading to significant changes in the management of HIV.
The biotechnology sector is highly competitive, with numerous companies seeking to innovate in the field of HIV treatment. Gilead's investment in HOOKIPA positions both companies at the forefront of this research area. The deal also reflects a trend in the industry where larger pharmaceutical companies invest in smaller biotech firms to diversify their pipelines and capitalize on emerging technologies without bearing the full burden of research and development costs.
Understanding the context, Gilead's move can be seen as part of a broader strategy to maintain its leadership in the HIV market. The partnership with HOOKIPA could provide Gilead with a competitive edge if HB-500 proves to be effective. It is important for stakeholders to monitor the progression of the Phase 1 trial, as positive data could significantly impact both companies' valuations and the broader biotech market.
- Gilead purchased 15 million newly issued shares of common stock at a price of
$1.41 67 per share - Following the close of the transaction on December 20, 2023, Gilead holds
19.4% of HOOKIPA’s outstanding shares of common stock - Equity investment is to advance the Gilead-partnered HIV therapeutic program through Phase 1; trial expected to commence in the first half of 2024
NEW YORK and VIENNA, Austria, Dec. 21, 2023 (GLOBE NEWSWIRE) -- HOOKIPA Pharma Inc. (NASDAQ: HOOK, ‘HOOKIPA’), a company developing a new class of immunotherapeutics based on its proprietary arenavirus platform, today announced that Gilead Sciences (‘Gilead’) has purchased 15 million shares of HOOKIPA’s common stock for approximately
In addition, HOOKIPA has the right, subject to certain terms and conditions, to sell an additional approximately
“We have a tremendous partnership with Gilead, who have been incredible believers in our arenavirus platform since our initial collaboration and license agreement began more than five years ago,” said Joern Aldag, Chief Executive Officer at HOOKIPA. “Together, we have made meaningful progress to find a potential functional cure for HIV. Most recently, we received clearance from the U.S. Food and Drug Administration of our Investigational New Drug application for HB-500 and are excited to begin our Phase 1 trial in the first half of next year. We are excited to continue our relationship with Gilead, and we are collectively optimistic about the potential of our partnership to benefit patients.”
The transaction closed on December 20, 2023. Following the completion of the stock purchase, Gilead’s ownership in HOOKIPA increased to 18,759,465 shares, or approximately
HB-500 is an alternating, 2-vector arenaviral therapeutic vaccine that is being evaluated as part of a potential curative regimen for HIV. One vector is based on lymphocytic choriomeningitis virus (LCMV) as its arenaviral backbone; another vector is based on Pichinde virus (PICV). Both encode the same HIV antigens. The alternating 2-vector approach is designed to further focus the immune response against the target antigen.
HB-500 is one of two separate development programs in HOOKIPA’s collaboration and license agreement with Gilead. HOOKIPA is responsible for advancing the HIV program through the completion of a Phase 1b clinical trial. Gilead has the exclusive right to assume further development of the program thereafter.
For further details, refer to the Company’s Current Report on Form 8-K filed with the Securities and Exchange Commission (the ‘SEC’) on December 21, 2023.
This press release shall not constitute an offer to sell or a solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or other jurisdiction. Any offering of the shares of common stock described above under the resale registration statement will only be by means of a prospectus.
About HIV
HIV is one of the world’s most formidable public health challenges. It is estimated there are more than 38 million people living with HIV worldwide. The virus infects and kills immune cells, and without effective ongoing treatment leaves the individual increasingly immunocompromised over time. While effective treatments have significantly extended the lives of people living with HIV and reduced the transmission of the virus, there is no cure for HIV or AIDS.
About HOOKIPA
HOOKIPA Pharma Inc. (NASDAQ: HOOK) is a clinical-stage biopharmaceutical company focused on developing novel immunotherapies, based on its proprietary arenavirus platform, which are designed to mobilize and amplify targeted T cells and thereby fight or prevent serious disease. HOOKIPA’s replicating and non-replicating technologies are engineered to induce robust and durable antigen-specific CD8+ T cell responses and pathogen-neutralizing antibodies. HOOKIPA’s pipeline includes its wholly owned investigational arenaviral immunotherapies targeting Human Papillomavirus 16-positive cancers, prostate cancers, and other undisclosed programs. HOOKIPA is collaborating with Roche on an arenaviral immunotherapeutic for KRAS-mutated cancers. In addition, HOOKIPA aims to develop functional cures of HBV and HIV in collaboration with Gilead.
Find out more about HOOKIPA online at www.hookipapharma.com.
Forward Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, including, without limitation, implied and express statements by HOOKIPA regarding: the intended use of proceeds from the investments and planned commencement of the HB-500 Phase 1 clinical trial. Forward-looking statements can be identified by terms such as “will,” “believes,” “expects,” “plans,” “potential,” “would” or similar expressions and the negative of those terms. Such forward-looking statements involve substantial risks and uncertainties that could cause HOOKIPA’s research and clinical development programs, future results, performance or achievements to differ significantly from those expressed or implied by the forward-looking statements. Such risks and uncertainties include, among others, the uncertainties inherent in the drug development process, including HOOKIPA’s programs’ early stage of development, the process of designing and conducting preclinical and clinical trials, the regulatory approval processes, the timing of regulatory filings, the challenges associated with manufacturing drug products, HOOKIPA’s ability to successfully establish, protect and defend its intellectual property, risks relating to business interruptions resulting from public health crises, the impact of public health crises on the enrollment of patients and timing of clinical results, and other matters that could affect the sufficiency of existing cash to fund operations. HOOKIPA undertakes no obligation to update or revise any forward-looking statements. For a further description of the risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, as well as risks relating to the business of the company in general, see HOOKIPA’s annual report on Form 10-K for the period ended December 31, 2022, quarterly report on Form 10-Q for the quarter ended September 30, 2023 and other important factors in HOOKIPA’s subsequent filings with the Securities and Exchange Commission, which are available on the SEC’s website at www.sec.gov and HOOKIPA’s website at www.hookipapharma.com. In addition, any forward-looking statements represent HOOKIPA’s views only as of today and should not be relied upon as representing its views as of any subsequent date. HOOKIPA explicitly disclaims any obligation to update any forward-looking statements. No representations or warranties (expressed or implied) are made about the accuracy of any such forward-looking statements.
Availability of Other Information About HOOKIPA
Investors and others should note that we announce material financial information to our investors using our investor relations website (https://ir.hookipapharma.com/), SEC filings, press releases, public conference calls and webcasts. We use these channels, as well as social media, to communicate with our members and the public about our company, our services and other issues. It is possible that the information we post on social media could be deemed to be material information. Therefore, we encourage investors, the media, and others interested in our company to review the information we post on the U.S. social media channels listed on our investor relations website.
For further information, please contact:
Investors
Michael Kaiser, Investor Relations
michael.kaiser@hookipapharma.com
+ 1 (917) 984 7537
FAQ
What is the equity investment made by Gilead Sciences in HOOKIPA Pharma Inc.?
How much of HOOKIPA’s outstanding shares of common stock does Gilead hold after the transaction?
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