Gilead buys HIV and HBV programs from HOOKIPA for US $10M

USA – Gilead Sciences has agreed to purchase two infectious disease programs from its partner, HOOKIPA Pharma, for a total of US $10 million.

The deal includes a US $3 million upfront payment and US $7 million to be paid in stages, according to a U.S. securities filing published Thursday.

The two companies originally partnered in 2018 to develop arenavirus-based vaccines targeting HIV and hepatitis B virus (HBV).

Their agreement was updated in 2022, giving HOOKIPA the responsibility to run a Phase Ib trial of the HIV candidate, HB-500, which is expected to conclude in the second half of the year.

Meanwhile, Gilead is managing a Phase I trial of the HBV candidate, HB-400, which is set to finish soon.

This acquisition aligns with Gilead’s strategy to expand its HIV portfolio, a key growth driver for the company.

It follows a US $21.3 million equity investment Gilead made in HOOKIPA in late 2023, a sum now greater than HOOKIPA’s current market value.

Although the announcement boosted HOOKIPA’s stock by around 11%, the company’s total market capitalization remains around US $20 million.

HOOKIPA has faced significant setbacks, including staff layoffs, two restructurings, and the cancellation of a planned merger with Poolbeg Pharma earlier this year.

Despite these challenges, the sale of its vaccine programs to Gilead may offer a financial lifeline.