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Heat Biologics Reports Third Quarter 2019 Results and Provides Corporate Update

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Reported Positive Phase 2 Interim Data in Advanced Non-Small Cell Lung Cancer Patients

MORRISVILLE, NC / ACCESSWIRE / November 15, 2019 / Heat Biologics, Inc. (HTBX), a biopharmaceutical company developing therapeutics designed to activate a patient's immune system against cancer, today reported financial and clinical updates for the third quarter ended September 30, 2019.

Jeff Wolf, Heat's CEO, commented, "We remain encouraged by the positive top line data from our Phase 2 trial for HS-110 in advanced non-small cell lung cancer (NSCLC) in combination with Bristol-Myers Squibb's anti-PD-1 checkpoint inhibitor, Opdivo® (nivolumab) and with Merck's anti-PD-1 checkpoint inhibitor Keytruda® (pembrolizumab), which completed enrollment in July 2019. We recently presented a subset of this data in a poster presentation at The Society of Immunotherapy of Cancer's (SITC) 34th Annual Meeting, in which we reported that 61% of patients in our Phase 2 Cohort B achieved disease stabilization per iRECIST, a patient population whose disease had progressed following prior checkpoint inhibitor therapy. Based on this data, we look forward to advancing our clinical trials and intend to aggressively explore all options for the future development of HS-110, including possible collaboration and licensing opportunities."

"We ended the quarter with approximately $15.0 million in cash, cash equivalents and short-term investments. We believe we are well funded to advance our clinical activities though additional major milestones and continue to manage expenses accordingly."

Third Quarter 2019 Financial Results

  • Research and development expenses decreased to $3.1 million for the quarter ended September 30, 2019 compared to $4.4 million for the quarter ended September 30, 2018. The decrease of approximately $1.3 million is due to the lower PTX-35 expense for 2019, primarily reflecting decreased manufacturing costs, offset by increased Phase 2 trial expenses, including outsourced clinical trial support services and payments to investigator sites.

  • General and administrative expense increased to $2.0 million for the quarter ended September 30, 2019 compared to $1.6 million for the quarter ended September 30, 2018. The $0.4 million increase is primarily attributable to increased personnel costs, including stock-based compensation expense.

  • Net loss attributable to Heat Biologics was approximately $6.2 million, or ($0.18) per basic and diluted share for the quarter ended September 30, 2019 compared to a net loss of approximately $3.7 million, or ($0.16) per basic and diluted share for the quarter ended September 30, 2018.

  • As of September 30, 2019, the Company had approximately $15.0 million in cash, cash equivalents and short-term investments with an additional $6.9 million in grant funds from Cancer Prevention Research Institute of Texas (CPRIT) that it expects to receive after filing an IND for PTX-35.

About Heat Biologics, Inc.

Heat Biologics is a biopharmaceutical company developing immunotherapies designed to activate a patient's immune system against cancer using CD8+ "Killer" T-cells. HS-110 is the Company's first biologic product candidate in a series of proprietary immunotherapies designed to stimulate a patient's own T-cells to attack cancer. Heat has completed enrollment in its Phase 2 clinical trial for advanced non-small cell lung cancer, in combination with Bristol-Myers Squibb's nivolumab (Opdivo®) or with Merck's pembrolizumab (Keytruda®). Pelican Therapeutics, a subsidiary of Heat, is focused on the development of co-stimulatory monoclonal antibody and fusion protein-based therapies designed to activate the immune system. Heat also has numerous pre-clinical programs at various stages of development. For more information, please visit www.heatbio.com.

Forward Looking Statements

This press release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 on our current expectations and projections about future events. In some cases, forward-looking statements can be identified by terminology such as "may," "should," "potential," "continue," "expects," "anticipates," "intends," "plans," "believes," "estimates," and similar expressions. These statements are based upon current beliefs, expectations and assumptions and include statements such as: looking forward to advancing Heat's clinical trials, the intention to aggressively explore all options for the future development of HS-110, including possible collaboration and licensing opportunities, being well funded to advance Heat's clinical activities through additional major milestones and continuing to manage expenses accordingly, and the expected receipt of an additional $6.9 million in grant funds from CPRIT after filing the IND for PTX-35 These statements are based on management's expectations and assumptions as of the date of this press release and are subject to a number of risks and uncertainties, many of which are difficult to predict that could cause actual results to differ materially from current expectations and assumptions from those set forth or implied by any forward-looking statements, including the ability of Heat's therapies to perform as designed, to demonstrate safety and efficacy, as well as results that are consistent with prior results, the ability to enroll patients and complete the clinical trials on time and achieve desired results and benefits, Heat's ability to obtain regulatory approvals for commercialization of product candidates or to comply with ongoing regulatory requirements, regulatory limitations relating to Heat's ability to promote or commercialize its product candidates for specific indications, acceptance of its product candidates in the marketplace and the successful development, marketing or sale of products, Heat's ability to maintain its license agreements, the continued maintenance and growth of its patent estate, its ability to establish and maintain collaborations, its ability to obtain or maintain the capital or grants necessary to fund its research and development activities, its ability to retain its key scientists or management personnel, and the other factors described in Heat's Annual Report on Form 10-K and 10-K/A for the year ended December 31, 2018 and other subsequent filings with the SEC. The information in this release is provided only as of the date of this release and the company undertakes no obligation to update any forward-looking statements contained in this release based on new information, future events, or otherwise, except as required by law.

Media and Investor Relations Contact

David Waldman
+1-919-289-4017
investorrelations@heatbio.com

(tables follow)

Consolidated Balance Sheets

September 30,

2019

December 31,

2018

(unaudited)

Current Assets

Cash and cash equivalents

$

9,334,421

$

22,154,251

Short-term investments

5,683,446

5,570,027

Accounts receivable

37,300

28,538

Prepaid expenses and other current assets

734,788

961,317

Total Current Assets

15,789,955

28,714,133

Property and Equipment, net

609,916

643,146

Other Assets

In-process R&D

5,866,000

5,866,000

Goodwill

1,452,338

2,189,338

Right-of-use asset

347,153

-

Deposits

386,284

351,220

Total Other Assets

8,051,775

8,406,558

Total Assets

$

24,451,646

$

37,763,837

Liabilities and Stockholders' Equity

Current Liabilities

Accounts payable

$

1,944,333

$

974,619

Deferred revenue

-

1,032,539

Contingent consideration, current portion

1,477,000

1,187,000

Operating lease liability, current portion

91,068

-

Accrued expenses and other liabilities

1,281,911

1,678,051

Total Current Liabilities

4,794,312

4,872,209

Long Term Liabilities

Contingent consideration

2,356,515

1,918,225

Deferred tax liability

361,911

316,733

Deferred revenue, net of current portion

200,000

200,000

Operating lease liability, net of current portion

259,222

-

Other long-term liabilities

306,235

213,724

Total Liabilities

8,278,195

7,520,891

Commitments and Contingencies

Stockholders' Equity

Common stock, $.0002 par value; 100,000,000 shares authorized, 33,334,124 and 32,492,144 shares issued and outstanding at September 30, 2019 (unaudited) and December 31, 2018, respectively

6,822

6,499

Additional paid-in capital

117,836,082

114,883,135

Accumulated deficit

(101,261,124

)

(84,580,180

)

Accumulated other comprehensive loss

52,230

(19,904

)

Total Stockholders' Equity- Heat Biologics, Inc.

16,634,010

30,289,550

Non-Controlling Interest

(460,559

)

(46,604

)

Total Stockholders' Equity

16,173,451

30,242,946

Total Liabilities and Stockholders' Equity

$

24,451,646

$

37,763,837

Consolidated Statements of Operations and Comprehensive Loss
(Unaudited)

Three Months Ended,
September 30,

Nine months Ended,
September 30,

2019

2018

2019

2018

Revenue:

Grant and licensing revenue

$

6,439

$

1,840,009

$

1,049,988

$

3,735,713

Operating expenses:

Research and development

3,129,356

4,403,759

9,725,744

10,756,485

General and administrative

1,993,136

1,585,600

7,201,196

4,727,105

Goodwill impairment loss

737,000

-

737,000

-

Change in fair value of contingent consideration

502,000

114,838

728,290

665,936

Total operating expenses

6,361,492

6,104,197

18,392,230

16,149,526

Loss from operations

(6,355,053

)

(4,264,188

)

(17,342,242

)

(12,413,813

)

Interest income

97,415

83,509

373,060

131,306

Other (expense) income, net

(73,275

)

31,704

(80,539

)

153,500

Total non-operating income

24,140

115,213

292,521

284,806

Net loss before income taxes

(6,330,913

)

(4,148,975

)

(17,049,721

)

(12,129,007

)

Income tax benefit (expense)

-

225,389

(45,178

)

665,080

Net loss

(6,330,913

)

(3,923,586

)

(17,094,899

)

(11,463,927

)

Net loss - non-controlling interest

(136,315

)

(265,024

)

(413,955

)

(668,219

)

Net loss attributable to Heat Biologics, Inc.

$

(6,194,598

)

$

(3,658,562

)

$

(16,680,944

)

$

(10,795,708

)

Net loss per share attributable to Heat Biologics, Inc.-basic and diluted

$

(0.18

)

$

(0.16

)

$

(0.50

)

$

(0.75

)

Weighted-average number of common shares used in net loss per share attributable to Heat Biologics, Inc.-basic and diluted

33,650,829

23,143,952

33,255,535

14,359,429

Other comprehensive loss:

Net loss

$

(6,330,913

)

$

(3,923,586

)

$

(17,094,899

)

$

(11,463,927

)

Unrealized gain on foreign currency translation

63,711

39,377

72,134

110,648

Total other comprehensive loss

(6,267,202

)

(3,884,209

)

(17,022,765

)

(11,353,279

)

Comprehensive loss attributable to non-controlling interest

(136,315

)

(265,024

)

(413,955

)

(668,219

)

Comprehensive loss

$

(6,130,887

)

$

(3,619,185

)

$

(16,608,810

)

$

(10,685,060

)


SOURCE: Heat Biologics, Inc.



View source version on accesswire.com:
https://www.accesswire.com/566707/Heat-Biologics-Reports-Third-Quarter-2019-Results-and-Provides-Corporate-Update