Has Five Prime Therapeutics Inc. (FPRX) Turned The Corner? Adage Capital Thinks So

Just recently, the biotechnology company announced that the initial data from an ongoing Phase 1b trial of FP-1039/GSK3052230 on patients with squamous non-small cell lung cancer and mesothelioma will be released during an oral presentation at the upcoming World Conference on Lung Cancer 2015 in Denver from September 6-9. It’s worth noting that Five Prime Therapeutics has a license and collaboration agreement with GlaxoSmithKline plc (NYSE:GSK), the company that is actually conducting the aforementioned clinical trial. Nevertheless, should the trial evaluating the safety and efficacy of the product candidate deliver positive data, the shares of both companies will most likely enjoy gains, so it’s worth keeping a close eye on the upcoming presentation. Even though it makes little sense to discuss and anticipate the extent to which the company can benefit from the commercialization of this product, potential positive data on the trial will definitely mark an important step towards bringing the product to the market.

We can now take a quick look at some financial figures that might provide some useful insights into the company’s activities and operations. Five Prime’s cash, cash equivalents, and marketable securities added up to $207.4 million on June 30, compared to $149.1 million registered on December 31, 2014. This figure increased as a result of the public offering of common stock that took place at the beginning of the year. The company expects to use between $65 and $70 million of its net cash for operating activities in 2015 and anticipates ending the year with $158 – $163 million in cash, which will be enough to fund its operations through 2017. Five Prime Therapeutics’ research and development expenses for the second quarter increased by 12% year-over-year to $13.3 million, which indicates that the company is hiking the development output of its product candidates. The company’s net loss came to $11.5 million, compared to $9.9 million reported a year ago.

Disclosure: None