GlobeImmune Announces Second Quarter 2014 Financial Results

LOUISVILLE, CO--(Marketwired - August 15, 2014) - GlobeImmune, Inc. (NASDAQ: GBIM) today announced its second quarter 2014 corporate highlights and financial results. The net loss for the second quarter was $5.7 million, bringing the net loss for the year to $8.2 million. The Company believes that the proceeds from the Company's recent initial public offering, together with existing cash and cash equivalents will allow the Company to fund operations through 2015. 

"This year, we have made good progress as a company, most notably with the completion of our IPO in July," said Timothy C. Rodell, M.D., Chief Executive Officer at GlobeImmune. "We are focused on advancing our pipeline of Tarmogen^® product candidates both independently and with our collaborators."

An update on the Company's programs can be found in the Quarterly Report on Form 10-Q for the period ended June 30, 2014. 

Financial Results - Quarter Ending June 30, 2014, and Year-to-Date

For the quarter ended June 30, 2014, GlobeImmune reported a net loss of $5.7 million compared to a net income of $1.1 million for the same period in 2013. $4.4 million of the $5.7 million loss is due to non-cash interest expense associated with convertible notes and fair-value adjustments of warrants. These non-cash expenses terminated upon closing of the initial public offering. The net income generated in the second quarter of 2013 was due to one-time contract manufacturing revenues received in preparation for the GS-4774 phase 2 trials and the Company does not anticipate net income again in the foreseeable future as it continues to invest in its development programs. For the six months ended June 30, 2014, GlobeImmune reported a net loss of $8.2 million compared to a net loss of $0.5 million for the comparable period in the six months ended June 30, 2013.

Total research and development expense in the quarter ended June 30, 2014, was $2.1 million, a decrease of 21% compared to the same quarter in 2013. The lower R&D expense was primarily due to reduction in manufacturing expenses incurred in 2013 in preparation for a Phase 2 GS-4774 trial. General and administrative expense was $855,693, a 20% increase compared to the quarter ended June 30, 2013, driven primarily by patent costs related to the Company's intellectual property portfolio and costs associated with the initial public offering.