Shares of HOOKIPA Pharma plunged over 10% in premarket trading following the company’s announcement that it would be cutting 30% of its workforce and that Roche, the Swiss drug giant, has terminated their collaboration and licensing agreement.
Workforce Reduction and Development Pause
In order to realign priorities and conserve resources, HOOKIPA Pharma has decided to reduce its workforce by 55 jobs. Additionally, the company has decided to pause development activities related to HB-300, a program that was previously licensed to Roche. Most of its preclinical research activities will also be put on hold.
Focus on Clinical Development
Despite the setbacks, HOOKIPA Pharma remains committed to its mission. It will now prioritize the clinical development of HB-200, which aims to treat HPV16+ head and neck cancers. Furthermore, the company will continue partnering with Gilead in their infectious disease programs.
Regaining Global Development Rights
Good news for HOOKIPA Pharma comes in the form of regaining global development rights to the HB-700 program for KRAS-mutated cancers. The company also remains eligible for a milestone payment from Roche, which will be associated with the submission of an investigational new drug application to the U.S. Food and Drug Administration.
Strengthening Late-Stage Development Efforts
With a cash position of $117.5 million at the end of 2023, HOOKIPA Pharma believes that the planned workforce reductions and strategic changes will better align its organization and support its late-stage development efforts.
As a result of these developments, HOOKIPA Pharma shares have experienced a decrease of 11%, falling from 70 cents to 62.5 cents in premarket trading.
