Heat Biologics Inc. (NASDAQ:HTBX) Gains on FDA Trial Results

Heat Biologics Inc. (NASDAQ:HTBX)

Heat Biologics Inc. (NASDAQ:HTBX) is meeting with strong selling volume after the biotech company gapped up from their Friday close of $0.90 to open at $1.19 and hit a high of $1.25. HTBX had hit a pre-market high of $1.42. Average daily volume is listed at 1.21 million shares but HTBX is posting a volume figure of over 8.2 million as of 11:00 AM EST.

The catalyst is an announcement that Heat Biologics Inc. (NASDAQ:HTBX) achieved the efficacy endpoint for its Phase 1b trial evaluating HS-110 in combination with Bristol-Myers Squibb’s (NYSE:BMY) anti-PD-1 checkpoint inhibitor, nivolumab (Opdivo®), for the treatment of non-small cell lung cancer (NSCLC) and that the trial met the expansion criteria to advance into a Phase 2.

Heat Biologics Inc. (NASDAQ:HTBX) is a clinical-stage company focused on developing its proprietary “ImPACT” (Immune Pan-Antigen Cytotoxic Therapy) fully allogeneic “off-the-shelf” cell based immunotherapy to treat patients with a wide array of cancers and infectious diseases. Heat Biologics Inc. (NASDAQ:HTBX) pipeline is presented on their website:

On March 9, 2017, Durham, NC-based Heat Biologics Inc. (NASDAQ:HTBX) announced that it would be purchasing a controlling stake in Austin, TX-based Pelican Therapeutics Inc. – a privately held biotech. Terms of the deal included $1.5 million in cash and stock. According to reports, more than 75% of Pelican’s shareholders have approved the deal which would give them $500,000 in cash and 1.3 million shares of Heat Biologics Inc. (NASDAQ:HTBX).

Heat Biologics Inc. (NASDAQ:HTBX) had previously spun off Pelican Therapeutics Inc. in 2012. The reason given at the time was that Heat Biologics believed that Pelican would be better able to secure the needed resources for business operations and new treatment development if they were a stand-alone biotech company. That belief was born out when, in May of 2016, Pelican Therapeutics Inc. received a $15.2 million grant from the Cancer Prevention and Research Institute of Texas.

Only one firm follows Heat Biologics Inc. (NASDAQ:HTBX) and their analyst rates HTBX shares as a “Strong Buy”.

Ticker Symbol HTBX
Last Price a/o 11:05 AM EST  $                      1.04
Average Volume                1,210,000
Market Cap (mlns)  $                    24.30
Sales (mlns) $0.20
Shares Outstanding (mlns) 27
Share Float (mlns) 24.22
Shortable Yes
Optionable No
Inside Ownership 1.00%
Short Float 10.95%
Short Interest Ratio 2.2
Quarterly Return -23.08%
YTD Return 4.65%
Year Return 5.88%

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy. 

About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading.

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Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.

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