NEW YORK - HOOKIPA Pharma Inc. (NASDAQ:HOOK), a biopharmaceutical company specializing in immunotherapeutics, today announced a 1-for-10 reverse stock split of its common stock, set to take effect after market close on Tuesday. The move is aimed at regaining compliance with Nasdaq's minimum bid price requirement.
Starting Wednesday, HOOKIPA's common stock will trade on the Nasdaq Capital Market on a split-adjusted basis under the existing ticker symbol "HOOK" and a new CUSIP number. The reverse stock split will convert every ten shares of issued and outstanding common stock into one share, maintaining the par value per share. This consolidation will proportionally reduce the number of authorized common shares from 400 million to 40 million.
Shareholders owning fractional shares as a result of the split will receive a cash payment instead of fractional share interests. The reverse split is designed to affect all shareholders uniformly and will not change their relative ownership interests in the company, except for adjustments related to fractional shares.
The company has also stated that the reverse stock split will lead to adjustments in the conversion ratio for its Class A Common Stock and the conversion prices for its convertible preferred stock series. Similarly, adjustments will be made to the terms of the company's outstanding stock options and the number of shares issuable under its equity incentive plans.
The reverse stock split is expected to reduce the number of HOOKIPA's issued and outstanding common shares from roughly 96.6 million to approximately 9.7 million.
HOOKIPA Pharma is a clinical-stage company that develops novel immunotherapies using its proprietary arenavirus platform, targeting serious diseases by amplifying targeted T cell responses. Its pipeline includes therapies for Human Papillomavirus 16-positive cancers and KRAS-mutated cancers, among others. The company is also working towards functional cures for HBV and HIV in collaboration with Gilead.
This strategic decision is part of HOOKIPA's efforts to align with Nasdaq's listing standards. The information in this article is based on a press release statement from HOOKIPA Pharma Inc.
In other recent news, HOOKIPA Pharma Inc. has reached a significant milestone with its HIV vaccine, HB-500, entering Phase 1b trials. This development comes as part of HOOKIPA's collaboration with Gilead Sciences, Inc. (NASDAQ:GILD) The trial aims to assess the safety and immune response of HB-500 in individuals with HIV who are on suppressive antiretroviral treatment. HOOKIPA's collaboration with Gilead also includes another developmental program, both focusing on leveraging HOOKIPA's arenavirus platform.
In the realm of cancer treatment, HOOKIPA has reported promising results from a Phase 2 study of its HB-200 series, used in treating a specific type of head and neck cancer. This led H.C. Wainwright to adjust its price target for HOOKIPA's shares, while RBC Capital maintained its Outperform rating for HOOKIPA, highlighting the potential of the company's cancer vaccine approach. However, H.C. Wainwright later adjusted its price target for HOOKIPA's shares again, this time reducing it due to the narrower target patient population for the HB-200 program.
Further, HOOKIPA has announced the final design for its Phase 2/3 trial of HB-200 in combination with pembrolizumab, with patient enrollment expected to begin in the fourth quarter of 2024.
InvestingPro Insights
In light of HOOKIPA Pharma Inc.'s recent announcement of a reverse stock split, investors are closely monitoring the company's financial metrics and market performance. According to InvestingPro data, HOOKIPA's market capitalization stands at $55.91 million, with a striking revenue growth of 235.12% over the last twelve months as of Q1 2024. Despite these impressive growth figures, the company's gross profit margin has been deeply negative at -57.44% for the same period, indicating significant cost challenges relative to its revenues.
The company's stock has experienced a notable decline, with a 1-week price total return of -10.07% and a 1-month price total return of -31.01%. These metrics underscore the volatility and the challenges HOOKIPA faces in the market. Furthermore, with a price to book ratio of 0.53 as of Q1 2024, the stock is currently trading below the company's book value, which could suggest that it is undervalued or that investors have concerns about the company's assets.
InvestingPro Tips for HOOKIPA Pharma reveal that analysts do not anticipate the company will be profitable this year, which aligns with the reported negative operating income margin of -93.17%. Additionally, the company does not pay a dividend to shareholders, which may be a factor for income-focused investors to consider. For those interested in a deeper analysis, InvestingPro offers additional tips that can provide further context on HOOKIPA's financial health and future prospects. Readers can explore these insights and access comprehensive analytics by using the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
As HOOKIPA Pharma navigates its way through the rigorous demands of the biopharmaceutical industry and works to maintain its Nasdaq listing compliance, these InvestingPro insights and tips serve as valuable tools for investors to stay informed and make educated decisions.
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