HilleVax Announces Q2 2024 Financial Results and Recent Progress

HilleVax, Inc., a Boston-based clinical-stage biopharmaceutical company, reported its financial results for the second quarter ending June 30, 2024, and highlighted recent business updates. The company, listed on Nasdaq under the ticker HLVX, focuses primarily on developing and commercializing innovative vaccines.

During the third quarter of 2024, HilleVax disclosed significant developments. It announced that the NEST-IN1 clinical trial did not achieve its primary or secondary efficacy endpoints, leading to the decision to cease the development of HIL-214 in infants. As a part of cost-saving measures, the company also revealed a workforce reduction of approximately 40%. This strategy aims to cut operating expenses while retaining essential capabilities to continue exploring the potential of HIL-214 and HIL-216 norovirus vaccine candidates, along with related business development activities.

Financially, as of June 30, 2024, HilleVax held $245.0 million in cash, cash equivalents, and marketable securities. This marked a decrease from the $303.5 million reported at the end of 2023. The reduction reflects the ongoing expenditures connected to research and development (R&D) and general administrative operations.

For the second quarter of 2024, R&D expenses were reported at $26.6 million, up from $23.0 million in the same period in 2023. The rise in R&D costs is mainly attributed to an increase in the number of employees dedicated to research and development activities. General and administrative expenses also saw an uptick, reaching $8.1 million compared to $7.2 million in the second quarter of 2023. This increase was due to the growth in the administrative workforce.

Despite the operating expenses, HilleVax recorded other income of $2.3 million for both the second quarters of 2024 and 2023. However, the net loss for the second quarter of 2024 was significantly higher at $40.7 million compared to $27.9 million in the same quarter of the previous year.

HilleVax focuses on developing vaccines to prevent moderate-to-severe acute gastroenteritis (AGE) caused by norovirus infections. Norovirus is a significant global health issue, responsible for approximately 700 million cases of AGE and 200,000 deaths annually. The company’s primary vaccine candidates, HIL-214 and HIL-216, are based on virus-like particle (VLP) technology designed to combat norovirus.

The global burden of norovirus is substantial, with over $4 billion in direct healthcare expenses and $60 billion in societal costs each year. The impact is particularly severe for young children and older adults, who are more vulnerable to the virus's effects.

In summary, HilleVax continues to advance its mission of developing novel vaccines despite facing setbacks in clinical trials and undertaking substantial workforce reductions to manage its resources effectively. The company remains committed to exploring the development potential of its key vaccine candidates, HIL-214 and HIL-216, in adults and pursuing business development opportunities to support these efforts.