Tucson-based HTG Molecular Diagnostics Inc., maker of molecular profiling systems for drug development and diagnostics, has entered into a research collaboration agreement with drug giant Bristol-Myers Squibb to study the potential for immuno-oncology molecular profiling in multiple tumor types.
The collaborators will use the HTG EdgeSeq system, which is designed for use with “next-generation” genetic sequencing, to support Bristol-Myers Squibb’s translational research activities, the company said.
Under the agreement, HTG will provide Bristol-Myers Squibb access to its system and the companies will collaborate to develop tools for use for molecular profiling research for immuno-oncology, which uses drugs known as immunotherapies that target a body’s immune system to help fight cancer.
“Immuno-oncology is a very important business segment for us and this agreement and the expansion of our relationship with (Bristol-Myers Squibb) is a validation of our HTG EdgeSeq technology and value proposition,” TJ Johnson, president and CEO of HTG, said in a news release.
HTG, which went public last year with an initial stock offering on the Nasdaq Global Market, also reported a larger first-quarter loss on Friday.
HTG’s total revenue for the first quarter of 2016 was $865,232, down about 15 percent from first-quarter 2015, when revenues were buoyed by grants that ended in June.
The company posted a first-quarter net loss of $6.7 million, up from $4 million for the first quarter of 2015. Net loss per share was $1.02 for the first quarter of 2016 compared to $14.99 for the first quarter of 2015, before the effect of adding about 6.5 million shares from the public offering.
Research and development expanses were nearly $2 million in the first quarter, nearly triple the amount spent in the same period last year, as the company continued to develop new products.
HTG ended the first quarter with $32.8 million in total cash and investments, the company said.
Shares in HTG rose 56 cents, more than 23 percent, to close Friday at $2.97.
