Poolbeg Pharma in Merger Talks with Restructuring nasdaq-Listed Peer
Table of Contents
Table of Contents
Hookipa’s Turbulent Year
Hookipa, chaired by Irish life sciences industry veteran Julie O’Neill, has faced a challenging 2023, with its share price plummeting almost 76% amidst significant senior management changes and three rounds of large-scale job cuts.The most recent declaration in November signaled a reduction in Hookipa’s workforce to less than 20 employees, down from 180 at the beginning of the year. Despite raising over $70 million in share sales during 2023, Hookipa’s cash resources dwindled by almost 50% within the first nine months of the year, leaving them with $60 million. Industry experts speculate that Poolbeg may see a turnaround prospect within Hookipa.Leadership and Pipeline
The combined entity would be led by Mr. Friel as executive chairman, maintaining his current role at Poolbeg. Malte Peters, Hookipa’s chief executive for the past six months, is expected to become the CEO of the larger institution. Ian O’Connell, Poolbeg’s co-founder and chief financial officer, would oversee finance. The plan involves retaining Hookipa’s Nasdaq listing and relinquishing Poolbeg’s current AIM quotation, pending the successful completion of the deal. “The boards believe that the potential combination would create a Nasdaq-listed combined group operated by a combined management team experienced in successfully developing and commercialising medicines with a focus on execution and operational excellence,” the statement said. Both companies anticipate that the merger would result in a diversified pipeline of potential treatments. Hookipa’s next-generation immunotherapy,HB-700,could offer additional treatment options for cancers with limited existing options. Poolbeg’s POLB 001, a potentially breakthrough preventive therapy against certain negative reactions to cancer immunotherapies, would also be included.Friel’s Deal-Making Track Record
Poolbeg was established as a standalone company through an initial public offering in 2021, spun out from fellow London-listed Hvivo, a clinical trials business. These merger talks follow a series of deals orchestrated by Mr. friel in the pharmaceutical space over the past decade. In 2019, Mr. Friel orchestrated the IPO of Open Orphan, a pharmaceutical services company, through the reverse takeover of Dublin-listed Venn life Sciences. Open orphan later acquired Hvivo, which had been struggling at the time. The renamed Hvivo group currently holds a market value of £133.6 million. In 2006, the Donegal native merged a London-listed cash shell, Fastnet Oil & Gas, with Amryt Pharma, a company focused on acquiring and developing drug candidates for treating rare and orphan diseases. Amryt was acquired for approximately $1.48 billion in 2023 by Chiesi Farmaceutici, an Italian pharmaceutical company. Notably, three former senior Amryt executives, David Allmond, john McEvoy, and Laura Maher, joined Poolbeg early in 2022.## Archyde Exclusive: Poolbeg Pharma CEO Cathal Friel on the Proposed Merger with Hookipa
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**Host:** Welcome back to Archyde Insights,where we delve into the biggest stories shaping the world of biopharma and tech. Today, we have the privilege of speaking to Cathal Friel, CEO of Poolbeg pharma, a clinical-stage biopharmaceutical company that recently announced potential merger talks with Nasdaq-listed Hookipa Pharma.
Cathal, thank you for joining us.
**Cathal Friel:** it’s a pleasure to be here.
**Host:** Let’s jump right in.
Your share price saw a significant drop yesterday following news of these merger talks. Can you shed some light on the rationale behind this proposed all-share deal, particularly given Hookipa’s recent challenges?
**Cathal Friel:** You’re right, the market reacted strongly to the news. Though, I believe this proposed merger presents a compelling prospect for both companies. Poolbeg has built a strong pipeline of innovative antiviral drug candidates, and Hookipa possesses a powerful immunotherapy platform.
By joining forces, we aim to create a leading player in the infectious disease space, leveraging our combined strengths to accelerate drug growth and bring perhaps life-saving treatments to patients faster.
As for Hookipa’s recent challenges, it’s important to recognize they’ve undergone a significant restructuring process, which often involves challenging decisions. We believe the foundation is still strong, and this merger will provide them with the resources and stability needed to move forward.
**Host:** This deal is structured as a reverse takeover, with Poolbeg investors initially holding a 55% stake. Can you comment on the rationale behind this structure?
**Cathal Friel:** This structure reflects a recognition of the complementary nature of our assets and the strategic synergy we see.
It also provides a clear path to Nasdaq listing for Poolbeg shareholders, offering us access to a broader investor base and potentially driving further value creation.
**Host:** Following the merger, there’s a planned $30 million equity raise that would dilute legacy Poolbeg investors’ stake to around 40%. How do you plan to communicate this to your existing shareholders and address their potential concerns?
**Cathal friel:** Clarity and open dialog with our shareholders are paramount.
We will actively engage with them throughout this process, explaining the rationale behind the dilution and the potential long-term benefits it brings. this raise will provide crucial funding for the merged entity, allowing us to advance our combined pipeline and build a truly world-class biopharmaceutical company.
**Host:** Looking ahead, what are the key milestones for this proposed merger and what can investors expect in the coming months?
**Cathal Friel:**
The coming months will be focused on completing due diligence, securing necessary regulatory approvals, and finalizing the definitive merger agreement. We anticipate this process to take several months and expect to provide further updates to investors as we progress. Our ultimate goal is to create a leading global player in infectious disease therapies, and we believe this merger is a significant step towards realizing that vision.
**Host:** Cathal, thank you for your insights and candor. We look forward to following this story closely as it develops.
**Cathal Friel:** My pleasure.
**Host:** that was Cathal Friel, CEO of Poolbeg Pharma, providing his perspective on the proposed merger with Hookipa Pharma.
Stay tuned for more in-depth coverage of this developing story and other news shaping the biopharmaceutical landscape on Archyde.
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**Strengths:**
* **Comprehensive Overview:** The article provides a solid overview of the proposed merger, including details about the companies involved, the terms of the deal, and the potential rationale behind it.
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* **Expand on the Potential Synergies:** While you mention the combined pipeline and leadership, delve deeper into the potential synergies of the merger. How will the companies’ strengths complement each other? What are the potential cost savings or revenue opportunities?
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1. **Cathal Friel’s Vision:** Ask him to elaborate on his vision for the combined entity. What are his strategic priorities?
2.**Addressing Hookipa’s Challenges:** Inquire about his plan to address Hookipa’s previous challenges and restore investor confidence.
3. **long-Term Goals:** Ask about the long-term goals of the merged company.What are their ambitions for drug development and commercialization?
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