PDS Biotechnology saw a surge in its shares by 20% to $6.30 following the release of its third-quarter financial results. The clinical-stage immunotherapy company reported a quarterly loss of $10.8 million, or 35 cents a share. This is a narrower loss compared to the $7.4 million, or 26 cents a share, loss in the same quarter last year.
Analysts polled by FactSet were anticipating a higher loss of $14.4 million, or 38 cents a share. The company attributed its higher quarterly loss to an increase in research and development expenses, along with general and administrative expenses.
Research and development expenses rose to $6.4 million in the third quarter from $4.4 million in the previous year. The increase of $2 million can be primarily attributed to a rise in clinical trials expenses by $1.3 million, and an increase in personnel costs including $700,000 in non-cash stock-based compensation.
Despite the loss, PDS Biotech reported a healthy cash balance of $54.3 million as of September 30. The company is confident that its available cash resources will sustain its operational and research and development activities until the third quarter of 2024.