HilleVax Reports Second Quarter 2025 Financial Results

Rhea-AI Summary

HilleVax (NASDAQ: HLVX) has announced its Q2 2025 financial results and a significant merger agreement with XOMA Royalty Corporation. The company reported cash and equivalents of $159.5 million as of June 30, 2025, down from $171.4 million at year-end 2024.

Under the merger agreement, XOMA Royalty will acquire HilleVax for $1.95 per share in cash plus one non-transferable contingent value right (CVR). The tender offer is expected to commence by August 18, 2025, with the transaction closing anticipated in September 2025. For H1 2025, the company reported a net loss of $11.3 million, significantly improved from an $87.5 million loss in H1 2024, primarily due to reduced R&D expenses.

Positive

• Net loss significantly improved to $11.3M from $87.5M year-over-year
• Strong cash position of $159.5M as of June 30, 2025
• R&D expenses decreased substantially to $3.3M from $52.6M
• G&A expenses reduced to $11.3M from $16.6M

Negative

• Cash position declined from $171.4M to $159.5M since December 2024
• Other income decreased to $3.3M from $5.3M year-over-year
• Merger price of $1.95 per share represents potential takeunder for shareholders

Insights

Biotech Financial Analyst

HilleVax's acquisition by XOMA Royalty at $1.95/share plus CVR represents significant value with 86% reduced quarterly losses.

HilleVax's second quarter financials paint the picture of a company that has significantly reduced its cash burn while maintaining a healthy cash position. The $159.5 million cash reserve represents only a 7% decrease from the $171.4 million at year-end 2024, giving the company a reasonable runway. Most notably, R&D expenses plummeted to $3.3 million compared to $52.6 million in the same period last year – a 94% reduction that signals a substantial scaling back of clinical development activities.

The dramatic 87% reduction in net loss (from $87.5 million to $11.3 million) reflects a company that has strategically narrowed its focus and reduced operational costs. This financial restructuring likely made HilleVax an attractive acquisition target, which explains the timing of XOMA Royalty's offer.

The acquisition offer of $1.95 per share in cash plus a contingent value right (CVR) represents a clear exit strategy for shareholders. With approximately 50 million outstanding shares, the upfront cash component values HilleVax at roughly $97.5 million – significantly below its current cash position. This suggests XOMA Royalty sees value in HilleVax's pipeline and is effectively acquiring its vaccine assets at a discount to cash.

The inclusion of a CVR indicates potential future milestone payments tied to development or regulatory achievements, offering shareholders some participation in future upside while providing immediate liquidity. The expected September 2025 closing suggests minimal regulatory hurdles are anticipated. This deal structure is typical for biotech acquisitions where the buyer wants to limit upfront costs while the seller's shareholders want to participate in potential future success.

BOSTON, Aug. 06, 2025 (GLOBE NEWSWIRE) -- HilleVax, Inc. (Nasdaq: HLVX), a clinical-stage biopharmaceutical company focused on developing and commercializing novel vaccines, today reported financial results for the quarter ended June 30, 2025.

Second Quarter Financial Results

As of June 30, 2025 and December 31, 2024, the company had cash, cash equivalents and marketable securities totaling $159.5 million and $171.4 million, respectively.

Research and development expenses were $3.3 million, compared to $52.6 million for the six months ended June 30, 2025 and 2024. The decrease was primarily due to lower clinical development costs.

General and administrative expenses were $11.3 million, compared to $16.6 million for the six months ended June 30, 2025 and 2024. The decrease was due to lower personnel-related costs.

Other income was $3.3 million, compared to $5.3 million for the six months ended June 30, 2025 and 2024. The decrease was driven by lower accretion of marketable securities.

Net loss was $11.3 million, compared to $87.5 million for the six months ended June 30, 2025 and 2024.

Merger Transaction
In addition, on August 4, 2025, the company announced it has entered into a definitive merger agreement (the “Merger Agreement”), whereby XOMA Royalty Corporation (“XOMA Royalty”) will acquire all of the issued and outstanding common shares of the company, pursuant to which the company’s stockholders will receive $1.95 in cash per share of common stock at the closing of the merger, plus one non-transferable contingent value right (“CVR”), which represents the right to receive potential contingent cash payments following the closing. Pursuant and subject to the terms of the Merger Agreement, XOMA Royalty and its acquisition subsidiary will commence a tender offer (the “Offer”) by August 18, 2025, to acquire all outstanding shares of HilleVax common stock. The closing of the Offer is subject to customary closing conditions and is expected to close in September 2025.

Additional Information and Where to Find It
The tender offer described in this press release has not yet commenced. This press release is for informational purposes only and is neither a recommendation, nor an offer to purchase nor a solicitation of an offer to sell any shares of our common stock or other securities. On the commencement date of the Offer, a tender offer statement on Schedule TO, including an offer to purchase, a letter of transmittal and related documents, will be filed with the SEC by XOMA Royalty and its acquisition subsidiary, and a Solicitation/Recommendation Statement on Schedule 14D-9 will be filed with the SEC by us. The Offer to purchase the outstanding shares of our common stock will only be made pursuant to the offer to purchase, the letter of transmittal and related documents filed as a part of the Schedule TO. INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE TENDER OFFER MATERIALS (INCLUDING THE OFFER TO PURCHASE, A LETTER OF TRANSMITTAL AND RELATED DOCUMENTS) AND THE SOLICITATION/RECOMMENDATION STATEMENT ON SCHEDULE 14D-9 REGARDING THE OFFER, AS THEY MAY BE AMENDED OR SUPPLEMENTED FROM TIME TO TIME, WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION THAT INVESTORS AND SECURITY HOLDERS SHOULD CONSIDER BEFORE MAKING ANY DECISION REGARDING TENDERING THEIR SHARES, INCLUDING THE TERMS AND CONDITIONS OF THE OFFER. Investors and security holders may obtain a free copy of these statements (when available) and other documents filed with the SEC at the website maintained by the SEC at www.sec.gov or by directing such requests to the information agent for the Offer, which will be named in the tender offer statement. Investors and security holders may also obtain, at no charge, the documents filed or furnished to the SEC by the company and XOMA Royalty by accessing the Investor Relations sections of both companies’ websites at https://ir.hillevax.com and https://www.investors.xoma.com.

Forward-Looking Statements
The company cautions you that statements contained in this report regarding matters that are not historical facts are forward-looking statements. The forward-looking statements are based on the company’s current beliefs and expectations and include, but are not limited to: statements regarding the planned completion of the transactions contemplated by the Offer, the merger and the Merger Agreement and the CVR Agreement (the “Transactions”) and the timing thereof; and the potential payment of proceeds to the company’s stockholders, including pursuant to the CVR Agreement, if any. Actual results may differ from those set forth in this report due to the risks and uncertainties related to the Transactions and those inherent in the company’s business, including, without limitation: the possibility that various closing conditions set forth in the Merger Agreement may not be satisfied or waived, including uncertainties as to the percentage of the company’s stockholders tendering their shares in the Offer; the possibility that competing offers will be made; the risk that the Transactions may not be completed in a timely manner, or at all, which may adversely affect the company business and the price of its common stock; costs associated with the proposed Transactions; the risk that any stockholder litigation in connection with the Transactions may result in significant costs of defense, indemnification and liability; the risk that activities related to the CVR Agreement may not result in any value to the company’s stockholders; and other risks and uncertainties pertaining to the company’s business described in the company’s filings with the Securities and Exchange Commission (“SEC”), including under the heading “Risk Factors” in the company’s annual report on Form 10-K and any subsequent filings with the SEC. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof, and the company undertakes no obligation to update such statements to reflect events that occur or circumstances that exist after the date hereof. All forward-looking statements are qualified in their entirety by this cautionary statement, which is made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.

Contact:

Shane Maltbie
IR@hillevax.com 
+1-617-213-5054

HilleVax, Inc.
Condensed Consolidated Statement of Operations Data
(in thousands, except share and per share data)
(unaudited)
		Six Months Ended
		June 30 ,
		2025				2024
Operating expenses:
Research and development		$	3,311			$	52,579
In-process research and development			—				15,325
General and administrative			11,278				16,621
Impairment charges			—				8,235
Total operating expenses			14,589				92,760
Loss from operations			(14,589	)			(92,760	)
Total other income, net			3,262				5,263
Net loss		$	(11,327	)		$	(87,497	)
Net loss per share, basic and diluted		$	(0.23	)		$	(1.79	)
Weighted-average shares of common stock outstanding, basic and diluted			50,047,899				48,819,729

HilleVax, Inc.
Condensed Consolidated Balance Sheet Data
(in thousands)
(unaudited)
		June 30, 2025				December 31, 2024
Cash, cash equivalents and marketable securities		$	159,547			$	171,432
Total assets			174,914				192,690
Total liabilities			27,095				38,204
Total stockholders’ equity			147,819				154,486
Total liabilities and stockholders’ equity			174,914				192,690

FAQ

What are the terms of XOMA Royalty's acquisition of HilleVax (HLVX)?

XOMA Royalty will acquire HilleVax for $1.95 per share in cash plus one non-transferable contingent value right (CVR). The tender offer will commence by August 18, 2025, with expected closing in September 2025.

How much cash does HilleVax (HLVX) have as of Q2 2025?

HilleVax reported $159.5 million in cash, cash equivalents and marketable securities as of June 30, 2025, compared to $171.4 million as of December 31, 2024.

What was HilleVax's (HLVX) net loss for H1 2025?

HilleVax reported a net loss of $11.3 million for the six months ended June 30, 2025, compared to a net loss of $87.5 million in the same period of 2024.

How did HilleVax's (HLVX) R&D expenses change in H1 2025?

R&D expenses decreased significantly to $3.3 million from $52.6 million in the prior year period, primarily due to lower clinical development costs.

When is the XOMA Royalty-HilleVax merger expected to close?

The merger is expected to close in September 2025, subject to customary closing conditions and completion of the tender offer.