Durham drug-development company Heat Biologics narrowed its loss in the second quarter and reported that it recently boosted its cash on hand by a much-needed $2 million.
The company recently generated $2 million in cash by exercising warrants it issued in March in conjunction with its secondary stock offering. That stock sale raised $6.8 million in gross proceeds, which was short of the $12.5 million the company hoped to raise. However, the $2 million it raised from the warrants is additional money that wasn’t included in that $6.8 million total.
Heat Biologics was left with 19 employees in April after cutting 22 percent of its staff as part of an effort to stretch its cash through the end of 2016.
The company reported Monday that it had $7.1 million in cash as of June 30, which doesn’t include the recent infusion of $2 million. The company, which had $11.6 million in cash at the end of last year, anticipates releasing results from a phase 2 clinical trial of its lead drug, a treatment for non-muscle invasive bladder cancer, in the fourth quarter.
Lower expenses enabled the company to reduce its second-quarter net loss to $3 million, or 17 cents per share, down from $4.7 million a year ago.
Heat Biologics is developing drugs for bladder cancer and lung cancer but has no products on the market.
Heat Biologics reported its financial results after the markets closed Monday. Earlier in the day its shares closed at $1.55, down 8 cents. Its shares have fallen 37 percent this year.