OncoSec Medical Inc (OTCMKTS:ONCS) posted a net loss of $8.7 million in the first half of the year that ended January 31, 2015. The loss increased from the net loss of $4.7 million posted in the comparable period, a year ago. During this period, the company generated zero revenue.
The research and development expenses
OncoSec informed that R&D expenses in the first half of the year jumped to $5.4 million from $2.2 million in the comparable period, a year ago. The sharp jump in expenses can be credited to higher costs linked to outside service, extended expenses on laboratory supplies and increased salaries. There was need of increased lab supplies as the company has been developing next-gen electroporation models and electroporation technologies.
The increased expenses
OncoSec stated that the G&A expenses surged to $3.3 million from $2.4 million in the first half of fiscal. The jump in salary expenses resulting from extended headcount and higher conference fees resulted in greater than before G&A expenses. The company hired more employees during this period. However, the increased costs were in part balanced by savings in professional services fees. The cash/cash equivalents came at reported $30.7 million, lower from $37.9 million recorded in comparable period, a year ago. The cash balance is sufficient enough to support the business needs for next one year.
OncoSec Medical is one of the well-known names in the industry of biopharmaceuticals. The company has been arduously working on development tasks of cancer immunotherapy. Its core technology develops the effectiveness of the local delivery and use of immune-targeting bodies. It carried out several clinical trials to check efficacy and safety of ImmunoPulse that came satisfactory. The lead technology of OncoSec has the potential to initiate a systemic immune reaction that limits the systemic toxicities linked with other treatments.