On February 15, Hookipa Pharma Inc. (HOOK) announced entering into an amended and restated collaboration and license agreement with Gilead. The news resulted in the stock soaring high in the after-hours on Tuesday.
The stock remained bullish in the regular session with a gain of 6.35% at 12.05 million shares. The day saw a super heavy volume of 3,485% of its average. HOOK closed the regular session at a value of $1.34 per share. Following the announcement, the stock added a further 50.00% in the after-hours session. Hence, HOOK was trading at $2.01 apiece at an after-hours volume of 11.86 million shares.
The clinical-stage company, Hookipa Pharma Inc. develops products for the prevention and cure of infectious diseases and cancer. Currently, its 26.14 million outstanding shares trade at a market capitalization of $37.75 million. HOOK stands at a year-to-date loss of 42.49% while it declined by 89.21% last year.
HOOK and Gilead
Previously, in April 2018, Gilead had licensed exclusive rights to the company’s arenaviral platform for developing HIV and HBV (hepatitis B virus) immunotherapies. As per the previous terms, the companies had agreed on a joint research phase, following which further development was Gilead’s right.
On Tuesday, February 15, the company announced an amended and restated collaboration and license agreement. As per the amended terms, HOOK will be responsible for advancing the HIV program through the completion of a Phase 1b trial. This will be done with funding from Gilead through an upfront payment and equity purchases. Following the completion of the trial, Gilead, further development rights would be with Gilead. Additionally, the HBV program terms are the same as the original agreement.
In addition to the previously earned $4 million, HOOK will now receive $15 million from Gilead with a $5 million equity investment. The company is also eligible for an additional $30 million of equity financing.
Upcoming Presentation
On February 09, the company announced its participation in the virtual 11th Annual SVB Leerink Global Healthcare Conference. The conference is ongoing and started on February 14 and will end on February 18, 2022. The company’s corporate presentation will take place on February 16, 2022, at 10:30 a.m. EST.
HOOK’s Financial Position
In the third quarter of 2021, the company had revenue of $3.9 million, against $4.0 million in the year-ago period.
Furthermore, HOOK had a net loss of $20.0 million in Q3 2021, against $13.6 million in the prior-year period.
