HOOKIPA Pharma, Inc. (NASDAQ: HOOK) is engaged as a clinical-stage biopharmaceutical company, which is focused on the research and development of immunotherapies to active and amplify T cells to fight or help prevent serious diseases. Shares of the biopharma company are rallying 21% through early trading on Thursday, October 20, 2022. Over the past three months, HOOKIPA Pharma has seen average daily volume of 193,190 shares. However, volume of 30.38 million shares or dollar volume of around $44.05 million, has already exchanged hands through early trading.
Shares of HOOKIPA Pharma are gaining after the company announced that it has entered into a strategic collaboration and licensing agreement with Roche to continue developing the HB-700 drug candidate for the treatment of KRAS-mutated cancers. The agreement also includes a licensing option to Roche for a second, undisclosed novel arenaviral immunotherapy.
Under the terms of the agreement, HOOKIPA Pharma will continue conducting research and early clinical development through Phase 1b for the drug candidate. Once the Phase 1b trial is complete, Roche will have the right to take over development of HB-700 and commercialize the treatment once approved.
In exchange for the license to HB-700 and a second, undisclosed immunotherapy, Roche will pay HOOKIPA Pharma $25 million in upfront cash and pay up to $930 million in milestone payments and tiered royalties. If Roche exercises its option for the second immunotherapy, the company will pay an additional $15 million to HOOKIPA Pharma in upfront cash.
“We are excited to collaborate with HOOKIPA in leveraging their arenaviral technology, which has clinically demonstrated the ability to induce potent antigen specific CD8+ T cell responses and represents a promising approach for new cancer immunotherapies,” said James Sabry, Global Head of Pharma Partnering at Roche. “This collaboration further strengthens our leadership in oncology, and we are optimistic about advancing this innovative platform to potentially provide more options for people with KRAS-mutated cancers, as well as other potential cancer types.”
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