HOOKIPA Pharma(US:HOOK)2025-05-15 20:00Financial Position - As of March 31, 2025, the company had cash, cash equivalents, and restricted cash of $40.5 million, including $19.9 million received from the Austrian government research incentive program for 2022 and 2023 [170]. - The accumulated deficit reached $428.2 million as of March 31, 2025, with expectations of continued significant losses in the foreseeable future [238]. - The company raised approximately $142.5 million from redeemable convertible preferred stock prior to its IPO and $84.0 million from its IPO in April 2019 [228]. - The company has total non-cancellable obligations under contracts with manufacturing organizations amounting to $3.9 million as of March 31, 2025 [232]. - As of March 31, 2025, the company had cash, cash equivalents, and restricted cash totaling $40.5 million [230]. - The company expects to require additional funding to support ongoing operations and product development, with substantial doubt regarding its ability to continue as a going concern for at least the next 12 months [236]. - The company has entered into a Sales Agreement with Jefferies LLC to issue and sell up to $50.0 million of common stock, but no sales had been made as of March 31, 2025 [231]. Revenue and Income - The company has not generated any revenue from product sales to date and does not expect to do so in the near future [176]. - Revenue from collaboration and licensing decreased to $2.0 million for the three months ended March 31, 2025, down from $36.6 million in the same period of 2024, a decline of $34.6 million [207][208]. - Grant income for the three months ended March 31, 2025 was $0.2 million, compared to $2.2 million in the same period of 2024, a decrease of $2.0 million [223]. - Interest income decreased to $0.2 million for the three months ended March 31, 2025, down from $1.3 million in the same period of 2024, a decline of $1.1 million [224]. - The company experienced a significant decrease in revenue due to the termination of the Roche Collaboration Agreement, which previously contributed $35.7 million in revenue in Q1 2024 [208][211]. - Other income for Q1 2025 was $2.0 million, a significant increase from other expenses of $0.3 million in Q1 2024, primarily due to exchange rate differences [226]. Expenses - The company incurred a net loss of $15.4 million for the three months ended March 31, 2025, with an accumulated deficit of $428.2 million [174]. - Total research and development expenses for the three months ended March 31, 2025 were $12.9 million, compared to $20.2 million for the same period in 2024, reflecting a decrease of $7.3 million [214][215]. - General and administrative expenses increased to $6.9 million for the three months ended March 31, 2025, up from $4.1 million in the same period of 2024, an increase of $2.8 million [217][218]. - Restructuring expenses decreased to $0.1 million for the three months ended March 31, 2025, down from $1.3 million in the same period of 2024 [219][220]. - The company expects to continue incurring net operating losses for the foreseeable future due to ongoing research and development costs [174]. Strategic Changes - The company announced a workforce reduction of approximately 80% as part of its restructuring plan, which is expected to be substantially completed by the end of the first half of 2025 [167]. - The company is collaborating with Gilead Sciences Inc. on its Hepatitis B and HIV programs, with Gilead responsible for further development and commercialization of the Hepatitis B product candidate [165]. - The company received a non-refundable upfront payment of $10.0 million from Gilead under the Gilead Collaboration Agreement, with potential milestone payments totaling up to $140.0 million for the Hepatitis B program [178]. - The company has paused clinical development in its eseba-vec program for HPV16+ cancers to focus on the phase 1-ready HB-700 program for KRAS mutant cancers [163]. - The company is focusing on the continued development of infectious disease therapies in partnership with Gilead, indicating a strategic shift in R&D priorities [216]. Cash Flow - Net cash provided by operating activities for Q1 2025 was $52, a recovery from a net cash used of $24,156 in Q1 2024 [247]. - For the three months ended March 31, 2025, cash provided by operating activities was $0.1 million, with a net loss of $15.4 million adjusted by non-cash charges of $0.1 million and cash provided due to changes in operating assets and liabilities of $15.4 million [248]. - During the same period, cash used in operating activities was $24.2 million, consisting of a net income of $14.4 million adjusted by non-cash charges of $0.4 million and cash used due to changes in operating assets and liabilities of $38.9 million [249]. - Cash used in investing activities for the three months ended March 31, 2025, was less than $0.1 million, primarily related to land in Vienna, Austria [251]. - There was no cash used in financing activities for the three months ended March 31, 2025, while cash used in financing activities for the same period in 2024 was $0.1 million, mainly for costs related to Gilead's purchase of common stock [252]. Market and Economic Conditions - A hypothetical 10% weakening of the U.S. dollar compared to the euro would have increased the net loss for the three months ended March 31, 2025, by approximately $1.2 million [259]. - Inflation may impact labor costs, clinical trial costs, and operational costs, potentially affecting the company's financial condition and results of operations [261]. - The company is classified as a "smaller reporting company," with a market value of stock held by non-affiliates less than $700 million and annual revenue below $100 million [256]. - The company evaluates its estimates and judgments on an ongoing basis, which may differ from actual results under different assumptions or conditions [253].