Durham’s Heat Biologics, which develops cancer immunotherapies, reduced its annual loss last year to $12.6 million as the start-up company moved from designing and developing clinical trials to enrolling patients and monitoring results.
The 19-employee publicly-traded company reports its financials just once a year because of its small size. Heat, which is developing therapies for lung cancer and bladder cancer, reported a net loss of $20.3 million in 2015. The company has spent $57 million since it was founded in 2008 and has no products on the market.
The company is juggling two clinical trails for its experimental cancer treatments and expects to report the results of HS-410, the bladder cancer product, by the end of this year. Heat has not announced a schedule for reporting final results for HS-110, the lung cancer treatment.
Heat said in its filing with the Securities and Exchange Commission that it reduced its annual loss in 2016 by decreasing clinical and regulatory expenses and directing resources toward completion its clinical trials. The company also cut operating costs last year when it reduced staff by 22 percent.
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Last month, the Nasdaq stock market notified the company that it is in danger of having its stock delisted unless it raises the price above $1 per share. Shares closed at 87 cents Monday; two years ago Heat was trading at $8.65.
Last week Heat raised nearly $4.1 million in a public stock offering at 80 cents per share. Previously the company had reported $7.8 million in cash and equivalents as of the end of 2016.
The company also said in March that it will do research as part of a 3-year grant for $981,901 from the Florida Department of Health to develop a vaccine for the Zika virus. The grant was awarded to the University of Miami, which will develop the vaccine with Heat’s wholly-owned subsidiary, Zolovax.