Louisville-based GlobeImmune swings to loss for 2014

LOUISVILLE — Biopharmaceutical company GlobeImmune Inc. (Nasdaq: GBIM) on Tuesday reported a net loss of $16.3 million for 2014 compared with a profit of $9.5 million in 2013.

The Louisville-based company is developing products for the treatment of cancer and infectious diseases using its Tarmogen platform. Tarmogens activate the immune system by stimulating cellular immunity, known as T-cell immunity, in contrast to traditional vaccines that predominately stimulate antibody production.

GlobeImmune reported a decline in revenue from $22.5 million in 2013 to $6 million in 2014. The net loss for the fiscal year that ended Dec. 31 was due primarily to a decrease in collaboration payments and milestone revenue, as well as noncash interest expense, the early retirement expense associated with convertible notes and fair-value adjustments of warrants upon the closing of the company’s initial public offering. In July, GlobeImmune went public, raising $17.3 million in gross proceeds.

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Research and development for proprietary programs expense for the year was $2.2 million compared with $1.9 million for 2013. The increase primarily was due to expenses related to a tuberculosis grant.

Tuberculosis, once considered nearly eliminated, now is a common, and in many cases, lethal infectious disease. In 2013, the company was awarded a $4 million Research Project Grant by the National Institute of Allergy and Infectious Diseases of the National Institute of Health to support the development of Tarmogen immunotherapy product candidates intended to treat or prevent tuberculosis infection. The work done under this grant is being performed and reimbursed over four years.

“We are pleased with the progress made across all of our programs in 2014,” said Timothy C. Rodell, GlobeImmune’s president and chief executive. “Results reported from our Phase 1 trial of GI-6301 in metastatic cancers and chordoma were encouraging, and we look forward to the initiation of the Phase 2 chordoma trial.” Chordoma is a rare type of cancer that occurs in the bones of the skull and spine.

GlobeImmune had cash and equivalents of $16.8 million. Based on the company’s current level of operations, GlobeImmune believes that its existing cash and cash equivalents will provide adequate funds for ongoing operations, planned capital expenditures and working capital requirements through at least Jan.1.

GlobeImmune’s stock was trading at $6.67 per share midday Tuesday.