GlobeImmune, down to 6 employees, posts $1.3M quarterly loss

LOUISVILLE — Biopharma GlobeImmune Inc. (Nasdaq: GBIM) on Friday reported a net loss of $1.3 million for the quarter that ended June 30.

The Louisville-based company is down to six employees from 22, according to documents filed with the Securities and Exchange Commission, as it restructures operations to preserve cash after negative trial results of its hepatitis B drug candidate announced during the quarter.

For the quarter, GlobeImmune posted revenue of $1.3 million from collaboration license and manufacturing services compared with $1.7 million in revenue generated during the same quarter a year ago.

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As of June 30, GlobeImmune had cash and cash equivalents of $12.4 million. In a prepared statement, company officials said that existing cash and cash equivalents will allow the company to fund operations through 2016, based on current operations. GlobeImmune recently engaged Cantor Fitzgerald to “explore strategic alternatives.”

The quarterly loss of $1.3 million is less than the loss of $9.2 million for the same period in 2014.

Net cash used in operating activities for the first six months of this year was $4.4 million, compared with $5.9 million for the same period in 2014. The company’s losses have resulted principally from costs incurred in its discovery and development activities.

Total research and development expenses for the three months were $1.3 million, compared with $2.1 million for the same period in 2014. General and administrative expenses were $1.2 million, compared with $900,000 for the same period in 2014. Company officials said the majority of the increase was related to expenses associated with being a public company.

In May, GlobeImmune’s share price declined more than 50 percent after the company announced that its hepatitis B drug candidate did not show a reduction of the disease at the end of a 24-week study, even in patients receiving the highest dose.

In early June, GlobeImmune announced laying off most of its employees as part of a restructuring in the wake of the negative trial results.

Three of the company’s cancer-drug candidates are being developed under collaborations with biotechnology companies Gilead Sciences and Celgene Corp.