Hookipa Pharma to Wind Down Operations Following Asset Sale to Gilead

Hookipa Pharma, a once-promising immunotherapeutics biotech, has announced plans to delist from the Nasdaq and liquidate the company, marking a significant turn of events in the pharmaceutical industry. This decision comes on the heels of a series of setbacks, including a failed merger attempt and the sale of key assets to long-time partner Gilead Sciences.

Asset Sale and Financial Struggles

In May, Hookipa transferred full ownership rights for its arenavirus immunotherapies targeting hepatitis B and HIV to Gilead Sciences for an upfront payment of $10 million. This transaction, which included "substantially all of the company's assets," left Hookipa without any revenue-generating product candidates.

The company's board of directors, after reviewing Hookipa's financial condition, concluded that "continuing to operate is not reasonably likely to create greater value for the stockholders than ... the sale of the company's remaining assets and the complete liquidation and dissolution of the company," according to a recent Securities and Exchange Commission filing.

Discontinued Programs and Clinical Trials

Hookipa's remaining assets include eseba-vec, an immunotherapeutic agent for HPV16-positive cancers, which was being studied in a phase 2 trial for head and neck squamous cell carcinoma in combination with Keytruda. However, further clinical development activities for this program were paused in November 2024.

Additionally, the company had been developing HB-700, an immunotherapy for KRAS-mutated cancers, which was poised to enter phase 1 trials. The fate of these programs remains uncertain as the company prepares to wind down operations.

Recent Setbacks and Industry Impact

Hookipa's decision to cease operations follows a challenging period for the biotech firm. In 2024, the company implemented layoffs after Roche terminated its collaboration on the HB-700 program. Earlier this year, Hookipa's planned merger with Poolbeg Pharma fell through, leaving the rare disease company "surprised and disappointed."

The dissolution of Hookipa Pharma serves as a stark reminder of the volatility and risks inherent in the biotechnology sector, particularly for companies heavily reliant on partnerships and without diversified revenue streams. As the industry continues to evolve, this development may prompt investors and analysts to reassess the sustainability of similar biotech business models.