HOOKIPA Pharma Inc. reported its financial results for the third quarter and the nine months ended September 30, 2024, highlighting significant changes in revenue, expenses, and strategic developments compared to the previous fiscal period.

For the three months ended September 30, 2024, HOOKIPA generated revenue of $4.7 million from collaboration and licensing agreements, a decrease from $6.9 million in the same period in 2023. However, for the nine months ended September 30, 2024, revenue surged to $42.6 million, up from $12.7 million in the prior year, primarily due to higher recognition of upfront and milestone payments under the Roche Collaboration Agreement. The company recognized $36.4 million from the terminated Roche agreement, which included $26.3 million in upfront and milestone payments.

Total operating expenses for the third quarter decreased to $23.3 million from $29.5 million year-over-year, while for the nine-month period, expenses fell to $72.6 million from $79.5 million. The reduction in expenses was attributed to lower research and development costs, which amounted to $15.6 million in Q3 2024, down from $24.6 million in Q3 2023. For the nine months, research and development expenses decreased to $55.5 million from $65.3 million.

The company reported a net loss of $13.8 million for the third quarter, an improvement from a loss of $19.1 million in the same quarter of 2023. For the nine months, the net loss was $18.6 million, significantly reduced from $56.8 million in the prior year. The net loss per share for Q3 2024 was $(1.10), compared to $(1.73) in Q3 2023.

Strategically, HOOKIPA announced a restructuring plan in January 2024, prioritizing the clinical development of its eseba-vec program and Gilead-partnered infectious disease programs. This led to a workforce reduction of approximately 30% and the discontinuation of its GMP manufacturing facility project. An additional workforce reduction of 20% was approved in September 2024, with restructuring charges totaling $0.9 million recorded for the third quarter.

As of September 30, 2024, the company had cash and cash equivalents of $59.8 million, down from $117.1 million at the end of 2023. The total assets decreased to $109.7 million from $161.3 million, while total liabilities fell to $37.9 million from $71.5 million. The accumulated deficit stood at $387.8 million, reflecting ongoing challenges in achieving profitability.

Overall, HOOKIPA's financial performance indicates a significant reduction in losses and a strategic focus on key development programs, despite facing challenges related to cash flow and operational restructuring.