Hookipa Pharma downgraded to Sector Perform from Outperform at RBC Capital

RBC Capital downgraded Hookipa Pharma (HOOK) to Sector Perform from Outperform with a price target of $2, down from $48. The company recently announced a restructuring, including an 80% workforce reduction and a pausing of clinical development for its lead program, eseba-vec for HPV16+ head and neck cancer, the analyst tells investors in a research note. RBC stills like the promise of Hook’s programs and arenavirus platform technology in both oncology and infectious disease, and see potential for partnerships or a takeover at a higher valuation. However, such timing is challenging to predict, and with the company’s strategic refocus now resetting the proprietary pipeline to preclinical stages, where it is difficult to ascribe meaningful value as of yet, the shares will trade near-term in the range of future cash levels, the analyst tells investors in a research note.