HOOK - Hookipa stock surges 46% on license deal with Roche for immunotherapy

Roche ( OTCQX:RHHBY ) ( OTCQX:RHHBF ) signed a license agreement with  Hookipa Pharma ( NASDAQ: HOOK ) to develop immunotherapy HB-700 for KRAS-mutated cancers and a second undisclosed novel arenaviral immunotherapy.

Under the agreement, Hookipa will receive $25M upfront. The Swiss pharma giant will have the option for an another product candidate, in which case Hookipa will get an additional $15M at option exercise.

Including this option payment, Hookipa is eligible for research, development and commercialization milestone-based payments for HB-700 and the additional candidate for up to ~$930M, plus royalties on net sales, the New York-based company said in a press release on Thursday.

Under the collaboration, Hookipa will conduct research and early clinical development through phase 1b for arenaviral immunotherapy HB-700 to treat KRAS-mutated cancers.

After phase 1b trial is over, Roche has the right to take over development responsibility and to commercialize licensed products in multiple indications, Hookipa added.

The agreement also includes an option for Roche to license a second arenaviral cancer immunotherapy.

"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.

HOOK +46.28% to $1.77 premarket Oct. 20

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