HOOKIPA Pharma enacts 1-for-10 reverse stock split

Published 10/07/2024, 14:26
HOOKIPA Pharma enacts 1-for-10 reverse stock split

HOOKIPA Pharma Inc. (NASDAQ:HOOK), a biopharmaceutical company, announced on Monday that it has implemented a 1-for-10 reverse stock split of its common stock. The reverse stock split became effective at 5:00 p.m. Eastern Time on the same day.

The Delaware-based company filed a certificate of amendment to its amended and restated certificate of incorporation to execute the reverse stock split. This action resulted in every 10 shares of issued and outstanding common stock being automatically combined into one share.

Despite the consolidation, the par value per share remains at $0.0001. Stockholders who would have received a fractional share due to the reverse stock split will instead receive a proportional cash payout.

Before the reverse stock split, HOOKIPA Pharma had approximately 96.6 million shares of common stock issued and outstanding. Following the reverse split, this number has been adjusted to approximately 9.7 million shares. The number of authorized shares of common stock has also been reduced from 400,000,000 to 40,000,000 as a result of the reverse split.

This strategic move is part of the company's efforts to adjust its capital structure.

The information presented in this article is based on the company's recent SEC filing.

In other recent news, HOOKIPA's HIV vaccine, HB-500, entered Phase 1b trials, marking a significant milestone in the company's collaboration with Gilead Sciences, Inc. (NASDAQ:GILD)

On the cancer treatment front, HOOKIPA 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, underscoring the potential of the company's cancer vaccine approach. However, H.C. Wainwright later adjusted its price target again, this time reducing it due to the narrower target patient population for the HB-200 program.

Lastly, HOOKIPA 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.

These developments highlight HOOKIPA's ongoing efforts in the biopharmaceutical space.

InvestingPro Insights

As HOOKIPA Pharma Inc. (NASDAQ:HOOK) navigates through its recent 1-for-10 reverse stock split and continues its clinical trials, there are several financial metrics and analyst insights that investors should consider. According to InvestingPro, HOOKIPA holds a market capitalization of $61.38 million, reflecting its current valuation in the market post-reverse stock split.

While the company's revenue has seen a substantial increase, with a growth rate of 235.12% over the last twelve months as of Q1 2024, it's important to note that HOOKIPA's gross profit margin stands at -57.44% during the same period, indicating challenges in converting revenue into gross profit. Additionally, the company's operating income margin was reported at -93.17%, suggesting that operational costs are significantly high relative to its revenue.

InvestingPro Tips highlight two critical points for investors: HOOKIPA is quickly burning through cash, which is a concern for its financial sustainability, and analysts do not anticipate the company will be profitable this year. These insights could be crucial for investors considering the long-term viability of the company amidst its promising clinical developments.

For those seeking more in-depth analysis and additional tips on HOOKIPA Pharma Inc., InvestingPro offers a comprehensive suite of tools and insights. There are currently 14 additional InvestingPro Tips available for HOOK, which can be accessed by visiting https://www.investing.com/pro/HOOK. Remember to use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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