Opexa Therapeutics Reports Second Quarter 2014 Financial Results and Provides Corporate Update

Recent highlights include:

We are pleased to close the first half of 2014 in a strong position to continue developing Tcelna for the treatment of patients with Secondary Progressive Multiple Sclerosis, saidNeil K. Warma, Opexas President and Chief Executive Officer. Completion of enrollment in the Phase IIb Abili-T trial during this past quarter represents an important milestone in the development of our personalized immunotherapy for the Secondary Progressive MS community. We remain committed to our goal in developing Tcelna for this patient population.

As ofJune 30, 2014, Opexas cash and cash equivalents totaled approximately$16,214,690 and the Companys monthly burn rate for the six months endingJune 2014was approximately$1.2 million. Based on the current clinical activities for the Abili-T trial, Opexa believes it has sufficient liquidity to support its current clinical activities for the Abili-T trial and general operations to sustain itself into the fourth quarter of 2015.

Second Quarter Financial Results

Opexa reported revenue of$307,686for the three months endedJune 30, 2014, compared to$348,837for the three months endedJune 30, 2013. The revenue is related to the recognized portion of the$5 millionupfront payment received from Merck Serono in conjunction with the Option and License Agreement entered into between Opexa and Merck Serono duringFebruary 2013.

Research and development expenses were$3,409,210 for the three months endedJune 30, 2014, compared with $2,223,030 for the three months endedJune 30, 2013. The increase in expenses is primarily due to the increasing enrollment of patients for the ongoing clinical trial of Tcelna in SPMS, an increase in the procurement and use of supplies for product manufacturing and development, and increases in the number of employees to support the ongoing clinical trial, employee compensation expense and stock compensation expense.

General and administrative expenses for the three months endedJune 30, 2014were$967,367, compared with $750,605 for the three months endedJune 30, 2013. The increase in expense is due to increases in employee compensation and stock compensation expenses, and was partially offset by decreases in legal and professional fees related to financing activities.

Depreciation and amortization expenses for the three months endedJune 30, 2014were$98,658, compared with $88,898for the three months endedJune 30, 2013. The increase in expense is due to increases in depreciation for laboratory, manufacturing and computer equipment acquired during 2013 and 2014 and leasehold improvements during 2013 and 2014 to support increased development activities.

Opexa reported a net loss for the three months ended June 30, 2014 of $4,163,259, or $0.15 loss per share (basic and diluted), compared with a net loss of $2,996,430 or $0.37 loss per share (basic and diluted) for the three months ended June 30, 2013. The increased net loss is primarily related to a decrease in revenue and an increase in research and development expenses, higher general and administrative expenses and higher depreciation expense for the quarter ending June 30, 2014.

Cash and cash equivalents were$16,214,690as ofJune 30, 2014, compared to$5,028,280as ofJune 30, 2013.

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Opexa Therapeutics Reports Second Quarter 2014 Financial Results and Provides Corporate Update