HOOKIPA Pharma Reports Significant Revenue Decline and Net Loss in Q1 2025

HOOKIPA Pharma Inc. reported a significant decline in financial performance for the first quarter of 2025, with revenues from collaboration and licensing dropping to $2.0 million, down from $36.6 million in the same period last year. This decrease was primarily attributed to the termination of the Roche Collaboration Agreement, which had previously contributed substantial upfront and milestone payments. The company incurred a net loss of $15.4 million for the quarter, compared to a net income of $14.4 million in the first quarter of 2024, reflecting a substantial shift in profitability.

Operating expenses for HOOKIPA Pharma decreased to $19.9 million from $25.5 million year-over-year, driven by a reduction in research and development costs, which fell to $12.9 million from $20.2 million. This reduction was largely due to the company's restructuring efforts, including workforce reductions and a strategic pause on certain clinical programs. General and administrative expenses increased to $6.9 million, up from $4.1 million, primarily due to higher professional and consulting fees associated with strategic assessments and potential mergers.

In terms of operational developments, HOOKIPA Pharma has been undergoing significant restructuring, which included a workforce reduction of approximately 30% in early 2024, followed by an additional 20% reduction by the end of the first quarter of 2025. The company also announced plans to pause the clinical development of its eseba-vec program for HPV16+ cancers, focusing instead on its Gilead-partnered infectious disease programs. As of March 31, 2025, the company had cash, cash equivalents, and restricted cash totaling $40.5 million, a slight increase from the previous quarter.

Looking ahead, HOOKIPA Pharma faces substantial challenges, including the need for additional funding to support its ongoing operations and development programs. The company has expressed substantial doubt about its ability to continue as a going concern for the next 12 months, citing the necessity for further capital to sustain its research and development efforts. Management plans to pursue various funding avenues, including equity or debt financing, to address these financial needs. The company’s future performance will depend heavily on its ability to secure additional funding and successfully navigate the complexities of its clinical development programs.