HilleVax Reports Reduced Losses and Strategic License Agreement for Norovirus Vaccine

HilleVax, Inc. reported a significant reduction in its financial losses for the first quarter of 2025, with a net loss of $6.1 million compared to a net loss of $46.8 million in the same period of 2024. This improvement is attributed to a substantial decrease in operating expenses, which fell to $7.6 million from $49.8 million year-over-year. The decline in expenses was primarily driven by a reduction in research and development costs, which decreased from $26.0 million to $2.0 million, reflecting the company's decision to discontinue the development of its HIL-214 vaccine candidate for infants.

The company's total assets as of March 31, 2025, were reported at $178.8 million, a decrease from $192.7 million at the end of 2024. This decline was largely due to a significant reduction in cash and cash equivalents, which dropped to $47.5 million from $154.5 million. However, HilleVax's marketable securities increased to $112.1 million, up from $17.0 million, indicating a strategic shift in asset allocation. The company’s total liabilities also decreased to $27.9 million from $38.2 million, primarily due to a reduction in accrued expenses and accounts payable.

In terms of strategic developments, HilleVax entered into a license agreement with Chengdu Kanghua Biological Products Co., Ltd. for the rights to a hexavalent virus-like particle vaccine candidate for norovirus, referred to as HIL-216. The agreement includes an upfront payment of $15 million and potential milestone payments totaling up to $255.5 million. This move aligns with the company's focus on expanding its vaccine portfolio and exploring new development opportunities.

Operationally, HilleVax has not generated any revenue since its inception and continues to rely on external funding to support its operations. The company raised approximately $14.9 million through an at-the-market equity offering in February 2024 and $107.8 million from an underwritten public offering in September 2023. As of March 31, 2025, HilleVax had cash, cash equivalents, and marketable securities totaling $159.5 million, which management believes will be sufficient to meet its anticipated cash requirements for at least the next 12 months.

Looking ahead, HilleVax anticipates continued net losses as it progresses with the development of its vaccine candidates. The company plans to finance its operations through equity offerings, debt financing, and potential collaborations. However, it acknowledges the inherent uncertainties in clinical development and the potential need for additional funding to support its long-term objectives.