Gilead Sciences Inc (NASDAQ:GILD, ETR:GIS), the largest shareholder in HOOKIPA Pharma, has thrown its backing behind the proposed merger with Poolbeg Pharma PLC (AIM:POLB).
Gilead, which holds just under 1.9 million shares or 19.4 per cent of HOOKIPA, also pledged to participate in the associated fundraising.
If the transaction goes ahead, HOOKIPA now plans to carry out a primary private placement of new stock to raise over $30 million.
Under the terms outlined last week, Poolbeg shareholders would receive 0.03 HOOKIPA shares for each Poolbeg share, resulting in approximately 55% of the combined entity’s equity for Poolbeg shareholders and 45% for HOOKIPA shareholders.
The proposed combination would create a diversified clinical pipeline, headlined by HOOKIPA's HB-700, a multi-KRAS targeting immunotherapy for cancers with limited treatment options, and Poolbeg’s POLB 001, a phase II-ready small molecule therapy for cancer immunotherapy-induced cytokine release syndrome.