Why Is Immunotherapy-Focused Hookipa Pharma Stock Soaring Today?

Gilead Sciences Inc GILD announced on Thursday that it has purchased 15 million shares of HOOKIPA Pharma Inc HOOK for approximately $21.25 million, at $1.4167 per share.

In addition, HOOKIPA has the right to sell an additional approximately $8.75 million of common stock to Gilead as pro-rata participation in potential future equity raises. 

The agreement with Gilead replaces the stock purchase agreement that Hookipa entered into with Gilead in 2022.

Following the completion of the stock purchase, Gilead's ownership in HOOKIPA increased to 18,759,465 shares or approximately 19.4% of HOOKIPA's outstanding shares of Common Stock.

"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," said Joern Aldag, CEO at HOOKIPA.

HB-500 is an alternating, 2-vector arenaviral therapeutic vaccine that is being evaluated as part of a potential curative regimen for HIV. 

HB-500 is one of two separate development programs in HOOKIPA's collaboration and license agreement with Gilead, announced in 2018. 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 program development after that.

Price Action: HOOK shares are up 80.50% at $1.02 on the last check Thursday. GILD shares are up 0.80% at $79.22.