Heat Biologics Inc (NASDAQ:HTBX) has been powering higher in the market in recent trading sessions ever since it reported topline clinical trial results for its HS-410 Phase II Bladder Cancer treatment and better than expected third-quarter results. The developer of gp96-based immunotherapies says it will post the topline clinical trial results at the Society of Urology Annual meeting in San Antonio Texas, on November 30, 2016.
Declining net Loss
Away from the clinical trial results, the company says its third quarter net loss dropped to $1.7 million from $5.4 million posted in the same quarter, last year. The better than expected net loss according to Heat Biologics was as a result of a decline in research and development expenses. R&D expenses in the quarter stood at $0.6 million compared to $2.6 million as of last year same quarter.
For the nine months ended, September 30, 2016, Heat Biologics says its R&D expenses dropped to $1.5 million compared to $1.8 million posted last year same period. Net loss on the other had dropped to $9.4 million from $14.4 million.
Chief executive officer, Jeff Wolf, has attributed the substantial decline in net loss to a reduction in consultant fees as well as Clinical trial costs and a reduction in workforce.
“During the third quarter, we strengthened our balance sheet and benefitted from the exercise of warrants and substantial pay down of our existing debt. I am pleased to report we ended the quarter with approximately $8.5 million of cash on hand,” said Mr. Wolf.
Declining Research and Development Costs
A reduction in research and development expenses, however, does not mean that Heat Biologics is no longer spending big in a bid to come up with new cures. In October, the company announced a new Zika vaccine collaboration with the University of Miami. The collaboration is for the licensing and development of patents that make use of the gp96 platform.
During the third quarter, Heat Biologics Inc (NASDAQ:HTBX) also formed a new subsidiary Zolovax, Inc. whose main responsibility will be developing gp96 based vaccines for infectious diseases.