Hookipa Pharma Stock Surges On HIV Pact With Gilead

Hookipa Pharma Inc HOOK amended and restated collaboration and license agreement with Gilead Sciences Inc GILD for arenaviral immunotherapy as a component of a potential functional curative regimen for human immunodeficiency virus (HIV).

• In April 2018, Gilead licensed exclusive rights to Hookipa's arenaviral platform to develop immunotherapies for HIV and hepatitis B virus (HBV). 
• The companies agreed to collaborate through a joint research phase, after which Gilead had rights for further development. 
• Under the amended and restated agreement, Hookipa will advance the HIV program through the Phase 1b trial, with funding from Gilead via an upfront payment and equity purchases. 
• After the Phase 1b trial, Gilead has the exclusive right to assume further development of the program. The HBV portion of the agreement remains unchanged.
• Hookipa earned a one-time $4 million preclinical milestone payment under the original 2018 agreement. 
• Upon signing of the amended agreement, Hookipa will receive $15 million. 
• In addition, Gilead will make a $5 million equity investment in Hookipa and up to an additional $30 million of equity financing that can be drawn at HOOKIPA's discretion by December 31, 2023.
• Gilead plans to advance the Hepatitis B virus (HBV) program to the IND-enabling stage in 2022.
• Price Action: HOOK shares are up 41.8% at $1.90 during the premarket session on the last check Wednesday.