Roche Walks Away From HOOKIPA Pharma-Partnered KRAS-Focused Cancer Deal
Portfolio Pulse from Vandana Singh
Roche Holdings AG (OTC:RHHBY) has terminated its collaboration with HOOKIPA Pharma Inc (NASDAQ:HOOK) on the HB-700 program for KRAS mutated cancers. HOOKIPA will regain full control of the program in April 2024 and plans to submit an IND in Q1 2024, seeking a new partner. HOOKIPA is refocusing on its HB-200 program for HPV16+ HNSCC and infectious disease programs with Gilead Sciences Inc (NASDAQ:GILD). The company will reduce its workforce by 30% and rebalance costs. HOOKIPA's cash position was $117.5 million as of December 31, 2023, bolstered by Gilead's purchase of 15 million shares in December. HOOKIPA's stock price dropped 15% to $0.59.
January 29, 2024 | 5:55 pm
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NEGATIVE IMPACT
Roche terminated its collaboration with HOOKIPA on the HB-700 program, leading HOOKIPA to refocus on other clinical programs and cut its workforce by 30%. The company's cash position remains strong due to Gilead's investment.
The termination of the collaboration with Roche is a significant event that may negatively impact investor sentiment and the company's future revenue prospects. The workforce reduction indicates cost-saving measures due to the strategic shift, which could also concern investors. However, the strong cash position after Gilead's investment provides some financial stability.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100
NEUTRAL IMPACT
Gilead Sciences has a partnership with HOOKIPA for infectious disease cure programs and has recently invested in the company, purchasing 15 million shares.
Gilead's investment in HOOKIPA and ongoing partnership for infectious disease programs may be viewed positively, but the impact on Gilead's stock is likely to be neutral in the short term as the investment is relatively small compared to Gilead's overall financials.
CONFIDENCE 75
IMPORTANCE 50
RELEVANCE 60
NEUTRAL IMPACT
Roche has decided to terminate its collaboration with HOOKIPA on the HB-700 program, which will result in HOOKIPA regaining full control of the program.
Roche's decision to terminate the collaboration with HOOKIPA may not have a significant short-term impact on Roche's stock as the company has a diverse portfolio and the termination of one program is unlikely to materially affect its overall business.
CONFIDENCE 75
IMPORTANCE 50
RELEVANCE 50
POSITIVE IMPACT
Merck's Keytruda is used in combination with HOOKIPA's HB-200 program, which has shown promising results and is moving towards a randomized trial.
The positive data from the HB-200 program in combination with Merck's Keytruda could be seen as a positive development for Merck, potentially leading to increased usage of Keytruda if the trial is successful.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 40