search icon
      blog search icon

      Hookipa (HOOK) Stock Prospects amidst Volatility - Stocks Telegraph

      By Wasim Omar

      Published on

      March 2, 2022

      6:38 PM UTC

      Hookipa (HOOK) Stock Prospects amidst Volatility - Stocks Telegraph

      HOOKIPA Pharma Inc. (HOOK) has plunged -22.22% at $1.96 in the current market on the last check Wednesday. The stock of HOOK completed the previous trading session at $2.52. The price range of the company’s shares was between $2.36 and $2.7899.

      Expected Public Offering

      This volatility in trading had been brought about, following the announcement of Hookipa Pharma’s announcement of an imminent public offering of two distinct classes of stock, the first of is which is of the common category, with the second being non-voting preferential convertible stock. This offering is likely to deliver an immediate injection of funds into Hookipa Pharma which would enable potential growth, yet to be realized. Traders are thus hoping to cash in on the newfound confidence in the HOOK stock given this announcement, which is likely to see steady growth once the public offering takes place.

      Collaboration with Gilead Sciences

      This is not the first-time onlookers have been eyeing the HOOK stock with optimistic anticipation. Earlier last month, when Hookipa amended the terms of its collaborative agreement with the pharmaceutical giant, Gilead Sciences Inc (NASDAQ: GILD), stock prices soared. This amendment was made to an existing contract signed in April of 2018, where Hookipa was granted exclusive rights for the development of hepatitis B and HIV immunotherapies. As a result, the company saw its first month without net loss in value since May of 2021. Following the amendment in the contract, Hookipa was paid a $4 million funding package to advance phase 1 trials under the HIV program signed.

      As the world continues to recover from the Covid-19 outbreak, with vaccination rates seeing a continuous increase, and global containment restrictions being eased, the pharmaceutical industry is returning its focus to serious diseases which require immediate attention. The likely trend expected is for the pharmaceutical industry to make investments around biotech sectors that received little attention in the prior years.

      Conclusion

      The volatility observed in HOOK stock price can be attributed to a significant anticipated gain, following plans of a public offering in the near future. Furthermore, amendments to an existing agreement with Gilead Sciences and a $4 million funding indicate a shift in the pharmaceutical industry, away from Covid-19 related investments.

      More From Stocks telegraph