Poolbeg Pharma, the ambitious clinical-stage biopharmaceutical firm led by seasoned entrepreneur Cathal Friel, is making bold moves toward a transformative merger with Hookipa Pharma. With the backing of a major shareholder, Gilead Sciences, this merger signals a strategic pivot to capitalise on new opportunities and redefine growth potential for both companies.
Poolbeg Pharma, headquartered in Ireland and listed in London, announced that Gilead Sciences, which holds a 19.4% stake in Hookipa Pharma, has indicated its support for the merger, provided an agreement is reached. The merger, designed as a reverse takeover, envisions Poolbeg investors initially controlling 55% of the combined entity, with Hookipa shareholders holding the remaining 45%. However, an immediate $30 million equity raise post-merger is expected to dilute Poolbeg’s stake to approximately 40%.
Hookipa Pharma has faced significant challenges recently, with its shares plunging by nearly 76% in 2023 amidst substantial leadership changes and workforce reductions. At its peak, the company employed 180 people, but it plans to scale back to fewer than 20 employees by early 2024. Despite these setbacks, industry insiders believe Poolbeg sees a promising turnaround opportunity, especially given Hookipa’s ongoing partnerships with Gilead.
Notably, Hookipa collaborates with Gilead to advance innovative therapies targeting hepatitis B and HIV. These programmes aim for functional cures, with potential milestone payments tied to their development reaching $407.5 million. Current merger discussions indicate that Hookipa’s legacy shareholders would retain 55% of these milestone entitlements, preserving a significant interest in the success of these treatments.
Investors have shown optimism about Poolbeg’s strategic vision. The company’s shares surged by 25% on the London Stock Exchange following the announcement of Gilead’s support, although they remain down by a third since merger discussions began.
With Poolbeg Pharma steering this bold initiative, the merger represents an ambitious step toward unlocking latent value in Hookipa’s assets while strengthening Poolbeg’s position as a leader in biopharmaceutical innovation.
Poolbeg Pharma, the ambitious clinical-stage biopharmaceutical firm led by seasoned entrepreneur Cathal Friel, is making bold moves toward a transformative merger with Hookipa Pharma. With the backing of a major shareholder, Gilead Sciences, this merger signals a strategic pivot to capitalise on new opportunities and redefine growth potential for both companies.
Poolbeg Pharma, headquartered in Ireland and listed in London, announced that Gilead Sciences, which holds a 19.4% stake in Hookipa Pharma, has indicated its support for the merger, provided an agreement is reached. The merger, designed as a reverse takeover, envisions Poolbeg investors initially controlling 55% of the combined entity, with Hookipa shareholders holding the remaining 45%. However, an immediate $30 million equity raise post-merger is expected to dilute Poolbeg’s stake to approximately 40%.
Hookipa Pharma has faced significant challenges recently, with its shares plunging by nearly 76% in 2023 amidst substantial leadership changes and workforce reductions. At its peak, the company employed 180 people, but it plans to scale back to fewer than 20 employees by early 2024. Despite these setbacks, industry insiders believe Poolbeg sees a promising turnaround opportunity, especially given Hookipa’s ongoing partnerships with Gilead.
Notably, Hookipa collaborates with Gilead to advance innovative therapies targeting hepatitis B and HIV. These programmes aim for functional cures, with potential milestone payments tied to their development reaching $407.5 million. Current merger discussions indicate that Hookipa’s legacy shareholders would retain 55% of these milestone entitlements, preserving a significant interest in the success of these treatments.
Investors have shown optimism about Poolbeg’s strategic vision. The company’s shares surged by 25% on the London Stock Exchange following the announcement of Gilead’s support, although they remain down by a third since merger discussions began.
With Poolbeg Pharma steering this bold initiative, the merger represents an ambitious step toward unlocking latent value in Hookipa’s assets while strengthening Poolbeg’s position as a leader in biopharmaceutical innovation.
