On May 11, 2017 Heat Biologics, Inc. ("Heat") (NASDAQ: HTBX), a leader in the development of novel therapies designed to activate a patient’s immune system against cancer, reported a business and clinical update for the first quarter ended March 31, 2017 (Press release, Heat Biologics, MAY 11, 2017, View Source [SID1234525053]).
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During the first quarter, Heat announced a number of major developments. First, it met the safety and efficacy endpoints in its Phase 1b lung cancer trial evaluating HS-110 in combination with Bristol-Myers Squibb’s anti-PD-1 checkpoint inhibitor, nivolumab (Opdivo), enabling it to progress to Phase 2 clinical trials. Preliminary data suggests Heat’s therapeutic vaccine has the potential to significantly expand the percentage of patients responding to checkpoint inhibitors by increasing T cell activity within the tumor, thereby converting "cold” tumors into "hot" tumors.
"We are encouraged by these results, showing signs of synergistic efficacy with nivolumab," said Jeff Wolf, Heat’s founder and CEO. "Patients with increased levels of tumor infiltrating lymphocytes (TIL) at 10 weeks saw a durable benefit, with 75% (6 out of 8 of these patients) alive at the one-year follow-up point. Additionally, 60% of the patients (3 of the 5 patients) exhibiting low TIL experienced significant tumor reduction, which compares favorably to the 10% response rate of low TIL patients reported for existing data on nivolumab alone."
Researchers reported a strong correlation between T cell activation, tumor reductions and increased overall survival in the 12 of the 15 patients that were evaluable for ELISPOT analysis. Importantly, the timing of immune responses to HS-110 corresponded to the timing of observed clinical responses, and those responses appear to be sustained.
Mr. Wolf continued, "While checkpoint inhibitors have transformed the landscape in the fight against cancer, they are only effective as a monotherapy in a small minority of patients. Our approach has the potential to dramatically increase the response rate in the majority of patients who don’t respond to checkpoint therapy alone. As a result of the encouraging data in our checkpoint combination trials and the positive response from within the industry, we are now prioritizing combination therapies, with a particular emphasis on checkpoint inhibitors and T cell co-stimulators. As a result, we are discontinuing programs where we do not see an opportunity to immediately combine with checkpoints, such as our non-muscle invasive bladder cancer program, and will instead reallocate those resources to fund current and future checkpoint and T cell co-stimulator combination programs."
Heat recently completed the acquisition of Pelican Therapeutics, whose product candidates strengthen its portfolio in the emerging T cell activation space. Pelican’s approach has the potential to improve the durability of responses in combination with Heat’s vaccine platform, as well as others, by stimulating the production of "memory" CD8+ T cells, as supported by pre-clinical data. This acquisition also brings with it a $15.2 million grant awarded by the Cancer Prevention and Research Institute of Texas (CPRIT) to advance multiple products through preclinical development and at least one program through a 70-patient Phase 1 clinical trial.
"We believe our growing franchise in immuno-oncology and activating cytotoxic T cells places us in a unique position at the core of future combination therapies," Wolf said. "We plan to continue to remain at the forefront in the development of exciting new therapies to activate T cells as part of a broad-based combination approach against cancer."
Heat ended the quarter with over $11 million in cash, and $15 million in non-dilutive grant funding through Pelican.
Recent Developments & First Quarter 2017 Corporate Highlights
In April 2017, Heat acquired an 80% controlling interest in Pelican Therapeutics, Inc. As of the acquisition date, Pelican is structured as a subsidiary to Heat focused on developing agonists to TNFRSF25, a highly differentiated and potentially "best-in-class" T cell costimulatory receptor. Pelican was the recipient of a highly-competitive $15.2 million New Company Product Development Award from the Cancer Prevention and Research Institute of Texas (CPRIT), which will enable the Company to advance multiple products through preclinical development and at least one program through a 70-patient Phase 1 clinical trial.
In April 2017, Heat presented new preclinical data from its collaboration with OncoSec Medical Incorporated at the AACR (Free AACR Whitepaper) Annual Meeting. Results suggested that combining ComPACT DNA electroporation and cellular vaccination led to increased tumor antigen-specific CD8+ T cells, delayed tumor progression, and improved overall survival in preclinical models. The data demonstrated possible synergistic benefits of vaccination plus intratumoral injection.
In March 2017, Heat reported positive interim results from its Phase 2 clinical trial evaluating HS-110 in combination with Bristol-Myers Squibb’s anti-PD-1 checkpoint inhibitor, nivolumab (Opdivo), for the treatment of non-small cell lung cancer (NSCLC). Fifteen patients had completed the HS-110/nivolumab combination to-date and 12 of these 15 patients were evaluable for ELISPOT analysis. ELISPOT results suggest that HS-110 plays an integral role in tumor reduction and may enhance efficacy of checkpoint inhibitors in lung cancer patients.
In March 2017, Heat announced that Natasa Strbo, M.D., D.Sc., Research Assistant Professor of Microbiology and Immunology at the University of Miami Miller School of Medicine, received a three-year $981,901 grant from the Florida Department of Health 2016-17 Zika Research Grant Initiative to further develop and test gp96-based Zika vaccine. This vaccine is being developed under a collaboration between the University of Miami and Heat’s wholly-owned subsidiary, Zolovax, Inc., which has licensed the intellectual property from the University of Miami.
In March 2017, Heat announced that it had achieved the safety and efficacy endpoints for its Phase 1b trial evaluating HS-110 in combination with nivolumab for the treatment of NSCLC and that the trial met the expansion criteria to advance into a Phase 2. Five out of 15 patients treated with the HS-110/nivolumab combination had 20% or greater tumor reduction. Patients with increased levels of tumor infiltrating lymphocytes (TIL) at 10 weeks appeared to have a durable benefit, with six out of eight of these patients (75%) alive at the one-year follow-up point.
In January 2017, Heat announced the appointment of Jeff Hutchins, Ph.D., as its Chief Scientific Officer and Senior Vice President of Preclinical Development. Dr. Hutchins brings over 24 years of research and clinical development experience from both large pharmaceutical and biotechnology companies.
First Quarter 2017 Financial Highlights
Research and development expenses decreased to approximately $1.9 million in the first quarter of 2017 from $3.7 million in the first quarter of 2016, a decrease of $1.8 million. The decrease is attributable to reductions in clinical trial costs, professional and consulting fees, personnel-related expenses, travel, and other costs.
General and administrative expenses increased to $1.5 million in the first quarter of 2017 from $1.0 million in the first quarter of 2016, an increase of $0.5 million. The increase is attributable to professional services and third-party expenses related to the acquisition of Pelican.
Net loss for the first quarter of 2017 was $3.2 million, compared to a net loss of $4.7 million for the first quarter of 2016.
Cash and cash equivalents totaled approximately $11.1 million at March 31, 2017, compared to $7.8 million at December 31, 2016. Through the acquisition of Pelican, the Company also has access to a $15.2 million grand from CPRIT, which will enable it to advance multiple products through preclinical development and at least one program through a 70-patient Phase 1 clinical trial.