TapImmune Inc. (OTCMKTS:TPIV) has been concentrating on the phase-2 trials of its Folate Receptor Alpha study. Unfortunately, the company’s own financial health has not proven to be capable of bearing the burden of the study. However, TapImmune has successfully acquired the services of institutional investors, who have agreed to provide $4.93 million in near term funding. The funding is to be provided through the investors exercising their short-term warrants.
The company’s Folate Receptor Alpha study is targeted at getting the company a much needed product in the market. TapImmune’s own financial situation has been bleak, with the company reported just $1.45 million in cash, no quarterly revenues and a quarterly net loss of $981,000. TapImmune desperately needs to upgrade from a development stage company to one that manufacture drugs for the treatment of breast and ovarian cancer. There is sufficient amount of cash in hand for the company to keep moving forward, but the institutional investors would not be very patient on their short-term returns.
TapImmune with its Folate Receptor Alpha drug is planning to replace conventional cancer treatments. The company’s research is targeted at boosting the immune system, so it destroys diseased cells. As for the Phase-1 clinical trials of the company’s lead drug, the results have been promising for triple-negative breast cancer and ovarian cancer. The study was targeted at assessing the safety of the drug and the maximum dose. Fortunately, it was found to be safe and tolerable.
The injection of additional funds from the institutional investors is sufficient to get the drug through phase-2 of clinical trials, but it would not help the drug reach the market. The company would need to file for an FDA approval before the drug can finally hit the market. Needless to say TapImmune can expect to remain in its current stage for the rest of the year and investors should expect very little profits from the company.
TapImmune Inc. (OTCMKTS:TPIV) experienced an increase of 29.38% in share price to close at $0.812. The stock saw 32.64 million shares change hands during the session on June 8.