Heat Biologics Inc. (NASDAQ:HTBX)

This Is Why Heat Biologics Inc. (NASDAQ:HTBX) Dropped 16%

This Is Why Heat Biologics Inc. (NASDAQ:HTBX)

Shares of Heat Biologics Inc. (NASDAQ:HTBX) fell 16.9% after the biopharmaceutical company priced 5.8 million shares, for a common stock offering. The company has priced the offering at $0.43 a share, slightly below the stock’s current price.

Heat Biologics Inc. (NASDAQ:HTBX)

In addition, the company has granted underwriters a 45-day option for the purchase of up to 872,093 shares of common stock at the public offering price. The company expects gross proceeds of approximately $2.5 million before deduction of underwriting discounts and commissions. The offering should close on or about November 21, 2017.

Heat Biologics Inc. (NASDAQ:HTBX) plans to use the net proceeds from the offering to fund its subsidiaries’ pre-clinical and clinical programs and for working capital and general corporate purposes.

HTBX Investor Reaction

News of the public offering did not go well with current investors as it will dilute their current holdings even though the company tries to use it to shore up its balance sheet. Investors’ confidence in the stock is dropping and threatens to push Heat Biologics Inc. (NASDAQ:HTBX) to its 52-week low of $0.41 a share. Heat Biologics has underperformed the overall industry and is currently down by more than 40% for the year

Despite the underperformance, Griffin analyst Keith Markey remains bullish about the stock’s long-term prospects. The analyst has a ‘buy’ rating on the stock with a share price target of $2.25. The price target represents an upside potential of more than 270%.

“Heat Biologics has developed a T cell activation platform (TCAP) to initiate or enhance an immune attack against solid tumors. [..]As such, we view the Company’s immunotherapies to be far more sophisticated than “vaccines” that also use an antigen-based approach to stimulate the immune system,” said Mr., Markey.

Heat Biologics Q3 Financials

Separately, Heat Biologics Inc. (NASDAQ:HTBX) reported a wider than expected net loss of (-$2.3) million or $0.06 a share, compared to a net loss of (-$1.6) million reported last year. Research and development expense increased 8% to $1.8 million primarily due to Chemistry Manufacturing and Control activities.

During the quarter, the company signed a manufacturing agreement with KBI Pharma that will advance the development of its cancer targeting immunotherapies.

“We had a very productive third quarter, as we achieved a number of important milestones,” said Jeff Wolf, CEO of Heat. “We signed a critical manufacturing agreement to further advance our co-stimulatory programs, and we were also granted a Type C meeting with the FDA to review our Phase 2 clinical trial using our HS-110 for the treatment for non-small cell lung cancer

Heat Biologics Inc. (NASDAQ:HTBX) exited the quarter with cash and cash equivalent of approximately $4.3 million.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $HTBX and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: Monica has an undergraduate degree in Accounting and an MBA she earned – with Honors. She has six years of experience in the financial markets and has been an analyst for the past two years.

Heat Biologics Inc. (NASDAQ:HTBX)

Heat Biologics Inc. (NASDAQ:HTBX) To Meet with FDA

Heat Biologics Inc. (NASDAQ:HTBX)

Heat Biologics Inc. (NASDAQ:HTBX) traded higher after the U.S. Food and Drug Administration (FDA) agreed to a type C meeting to discuss the registration pathway of its non-small cell lung cancer trial with HS-110. The stock was up by 6.54% in Tuesday’s trading session to end the day at $0.57 a share.

HTBX Stock Performance

Tuesday’s rally did little to reverse the selling pressure that has engulfed the stock since the start of the year. Heat Biologics Inc. (NASDAQ:HTBX) is currently trading in a downtrend in a tight $0.53 – $0.71 trading range. The stock faces immediate resistance at the $0.60 mark, above which it could rise to $0.90.

Heat Biologics Inc. (NASDAQ:HTBX)
One month HTBX stock price chart

A meeting with the FDA marks yet another important achievement on the development of HS-110 in combination with Bristol-Myers Squibb Co (NYSE:BMY) Opdivo as a treatment for non-small cell lung cancer. The candidate drug is currently supported by maturing Phase 2 data.

“We are encouraged by the positive safety and efficacy signals that have been previously reported, which support the hypothesis that tumor-specific T-cell activation enhances the clinical activity of checkpoint inhibitor therapy,” said CEO, Jeff Wolf.

Heat Biologics Inc. (NASDAQ:HTBX) is a biopharmaceutical company focused on the development of immuno-oncology therapies that activate patient’s immune systems against cancer. During the second quarter ended June 30, 2017, the company completed the acquisition of Pelican Therapeutics. The acquisition expands the company’s footprint into the business of developing monoclonal antibody and fusion-based therapies for activating the immune system.

Heat Biologics Q2 Earnings Report

Heat Biologics Inc. (NASDAQ:HTBX) generated a net loss of (-$3.2) million or (-$0.90) a share in Q2 2017, up from a net loss of (-$2.9) million or (-$0.70) reported in Q2 2016. General and Administrative expenses increased by 46% in the quarter to $1.6 million compared to $1.1 million reported a year earlier. The company attributes the increase to additional professional services in the quarter as well as third party expenses in relation to the Pelican acquisition.

Research and development expenses were also up by $0.7 million in the quarter due to Chemistry Manufacturing and Control activities. Heat Biologics Inc. (NASDAQ:HTBX) also incurred additional costs in relation to the Zika Program and Pelican Therapeutics programs.

The company exited the quarter with cash and cash equivalents of about $8.3 Million. In the wake of the Pelican Therapeutics acquisition, Heat Biologics has started to access its $15.2 million grant to advance the development of multiple programs.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $HTBX and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: Monica has an undergraduate degree in Accounting and an MBA she earned – with Honors. She has six years of experience in the financial markets and has been an analyst for the past two years.

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”.

3/13/2017
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.