Gilead Sciences, a global leader in biopharmaceuticals, has signalled strong support for a potential merger between Ireland’s Poolbeg Pharma and Austria-based Hookipa. This backing, alongside plans for fresh equity fundraising, could reshape both companies and strengthen their presence in the biopharma sector, particularly in next-generation immunotherapy.
Gilead, a significant shareholder in Hookipa with a 19.4% stake and a key partner in immunotherapy research for HIV and hepatitis B, has indicated it would follow Hookipa’s board recommendation if the merger proceeds. It has also expressed intent to participate in the proposed concurrent fundraising via a private placement, which could surpass the $30 million previously outlined.
The news provided a modest lift to Poolbeg’s stock, which rose 3% to 4.02 pence in early trading, recovering from record lows triggered by the initial announcement of merger discussions. The merger would involve an all-share acquisition by Hookipa, with Poolbeg shareholders initially holding a 55% stake and Hookipa shareholders holding 45% in the combined entity. The new company would retain Hookipa’s Nasdaq listing and focus on raising additional capital, potentially diluting shareholder stakes further.
The strategic alignment of Poolbeg and Hookipa aims to create a clinical-stage biopharma powerhouse developing innovative treatments for critical unmet medical needs. The combined company would concentrate on advanced immunotherapies, including cancer and other serious diseases, leveraging Hookipa’s proprietary arenavirus platform and Poolbeg’s promising portfolio.
Leadership for the potential merged entity would feature executives from both firms, with Hookipa CEO Malte Peters joined by Poolbeg’s co-founders Cathal Friel and Ian O’Connell. Hookipa, co-founded by Nobel laureate Rolf Zinkernagel, has made significant strides in clinical-stage immunotherapy, and the merger promises a broader global impact by marrying expertise from both companies.
Hookipa has engaged Oppenheimer & Co. as the placement agent for the proposed private placement fundraise, indicating momentum behind these plans. However, the discussions remain non-binding and non-exclusive, leaving room for further negotiation and adjustments as the merger takes shape.
This potential merger reflects the companies’ shared ambition to advance immunotherapies and underscores Gilead’s confidence in their joint vision. Poolbeg Pharma, with its robust pipeline, and Hookipa’s innovative platform, could position the combined entity as a leader in tackling some of the world’s most pressing health challenges.
Poolbeg Pharma plc (LON:POLB) is a clinical stage infectious disease pharmaceutical company, with a novel capital light clinical model which enables us to develop multiple products faster and more cost effectively than the traditional biotech model.
