BOTHELL, Wash., March 27 /PRNewswire-FirstCall/ -- Helix BioMedix, Inc.
(OTC Bulletin Board: HXBM.OB), a developer of bioactive peptides, today
announced financial results for the year ended December 31, 2006.
For 2006, Helix BioMedix reported a net loss of $3,828,326, or $0.17
net loss per share, compared to a net loss of $3,277,239, or $0.18 net loss
per share, for 2005. The 2006 results include approximately $391,200 of
incremental expense for stock-based compensation due to the adoption of
SFAS 123R "Share Based Payment" during the first quarter of 2006. Revenue
for the year ended December 31, 2006 was $70,940 which was derived from
licensing revenue, the renewal of a material transfer agreement and the
sales of peptides. Revenue for 2005 was $108,408.
On December 31, 2006, Helix BioMedix had cash, cash equivalents and
marketable securities of approximately $2.3 million. Shares outstanding at
December 31, 2006 were 22,788,514. In March 2007, the Company closed a
private equity financing, receiving aggregate cash of approximately $2.1
million in exchange for 2,865,000 shares of common stock.
"2006 was a year of significant progress, both on the science front and
also as it relates to refining our strategy to capitalize on the growing
recognition of peptides as the next generation of cosmetics skin care
technology," commented R. Stephen Beatty, President and Chief Executive
Officer. "Importantly, to support our strategies, we have grown and matured
our commercialization and marketing functions in the consumer products area
to match our first-class scientific capabilities. In addition to a
strengthened board and management team, we recently added a Dermatology
Scientific Advisory Board to provide advice on scientific, clinical, and
regulatory matters."
"One of the year's most important milestones was the successful
development of a new generation of small molecule peptides
(lipohexapeptides) designed specifically to overcome the disadvantages that
have hampered the industry's previous attempts to develop therapeutic
antimicrobial peptides. These 'new generation' peptides are excellent drug
candidates due to their low toxicity, attractive cost of goods profile, and
evidence of efficacy in both bacterial and fungal infection models. As a
result, in 2007, we plan to accelerate our entry into the arena of
pharmaceutical topical anti-infectives with a focus on the large
anti-infective dermatology market, including indications such as acne and
dermatitis. We believe our preclinical programs are attractive early stage
opportunities for a range of regional pharmaceutical-dermatology companies,
and we intend to license certain rights in specific global markets while
focusing internal efforts on advancing clinical programs in the U.S."
"On the consumer front, we have expanded our product development and
business strategies to extend our ability to bring value-added performance
benefits to market in the areas of anti-acne and anti-aging skin care. This
new approach includes licenses and sublicenses through our partnerships
with specialty materials companies, collaborative peptide development
combined with exclusive licensing, and the vertical integration of our
peptides into personal care products that we develop ourselves. We
currently have multiple material evaluation agreements in place and are
working with a breadth of companies to evaluate potential partnerships. We
are optimistic that these developments will position us to generate a
meaningful return on our technology investments."
"Our five 2006 milestones were focused on positioning the company to
see revenue in 2007. By meeting each of the milestones, we have, through
our partnerships, more products in the market, additional peptides in the
market, additional peptides and products under development, and a topical
anti-infective pharmaceutical application ready for licensing discussions."
"Looking out to 2007, we have identified four milestones that build on
our progress of the past year:
1. In partnership with a skin care marketing organization, share in the
market value created by the launch of a new peptide-enhanced personal
care product in 2007.
2. Further the development of a new peptide-based cosmeceutical line for
introduction in 2008 through a joint venture with an exclusive
marketing partner.
3. Enter negotiations for out-licensing rights to certain pharmaceutical
programs.
4. Generate significantly more revenue through strategic and specialty
materials partnerships."
Mr. Beatty concluded, "We believe 2007 will be a year during which we
will be able to demonstrate industry validation for our very important and
novel technologies. Our specialty materials marketing partner is expected
to generate significantly more revenue as they acquire more customer
companies for products that contain peptides licensed from Helix BioMedix.
Finally, we believe the activities now underway position us to attract the
attention of additional strategic partners and will ultimately lead to
improved financial results and enhanced shareholder value."
About Helix BioMedix
Helix BioMedix, Inc. is a biopharmaceutical company with a vast library
of diverse bioactive peptides and patents covering six distinct classes and
hundreds of thousands of peptide sequences. The company's mission is to
enrich clinical practice and the patient and consumer experience by
expanding opportunities to tap the health, beauty and safety benefits of
advanced bioactive small molecule technology. Our vision is to be
recognized as the world leader in the identification, qualification and
commercialization of natural and synthetic peptide technology.
The company's core competencies include peptide design, synthesis and
characterization together with assay development, screening, tissue culture
and microbiology. These areas of expertise are leveraged through
relationships with contract research organizations and peptide
manufacturers for the capability to take a program from theoretical concept
to a validated and qualified skin care active with respect to both efficacy
and safety. Applications for Helix BioMedix peptides include anti-aging
cosmeceutical skin care, acne treatment and other topical anti-infective
pharmaceuticals and wound healing. In addition to our primary focus on
peptides for dermatological applications, our peptide library also holds
promise for advancements in other therapeutic and industrial areas such as
oral care, biocides and animal health.
More information about the company and its proprietary peptides may be
found on the company's website at http://www.helixbiomedix.com.
Important Notice
This press release contains forward-looking statements (statements
which are not historical facts) within the meaning of the Private
Securities Litigation Reform Act of 1995. These forward-looking statements
include statements regarding activities, events or developments that the
company expects, believes or anticipates may occur in the future, including
statements related to our potential growth, product development and
commercialization and revenue. A number of factors could cause actual
results to differ from those indicated in the forward-looking statements,
including the company's ability to successfully raise additional capital,
enter into revenue generating license agreements, continue its research and
development efforts, including pre-clinical and clinical studies, and
general economic conditions. Additional assumptions, risks and
uncertainties are described in detail in our reports and other filings with
the Securities and Exchange Commission. Such filings are available on our
website or at http://www.sec.gov. Readers are cautioned that such forward-looking
statements are not guarantees of future performance and that actual results
or developments may differ materially from those set forth in the
forward-looking statements. The company undertakes no obligation to
publicly update or revise forward-looking statements to reflect subsequent
events or circumstances.
Contact:
Investor relations: Helix BioMedix, Inc.
Alison Ziegler, Cameron Associates David Kirske, CFO
(212) 554-5469 (425) 402-8400
Alison@cameronassoc.com dkirske@helixbiomedix.com
Helix BioMedix, Inc.
Statements of Operations
(unaudited)
Year Ended
December 31,
2006 2005
Revenue $70,940 $108,408
Operating expenses:
Cost of peptide sales 162,991 84,338
Research and development 988,451 834,231
Depreciation and amortization 180,755 175,136
Accounting, legal and professional 318,113 300,895
Consulting fees 14,767 133,518
General and administrative 2,307,620 1,903,615
Total operating expenses 3,972,697 3,431,733
Loss from operations (3,901,757) (3,323,325)
Other (income) expense:
Loss on sale of equipment 1,177 --
Interest income (74,608) (46,086)
(73,431) (46,086)
Net loss $(3,828,326) $(3,277,239)
Basic and diluted net
loss per share $(0.17) $(0.18)
Weighted average shares
outstanding 22,343,087 17,858,807
Balance Sheet Highlights (unaudited)
December 31, December 31,
2006 2005
Cash and cash equivalents $1,276,901 $2,827,959
Marketable securities 980,000 --
Prepaid expenses and other
current assets 86,732 155,667
Property and equipment, net 194,728 168,063
Other assets 73,840 84,343
Patents pending and
approved, net 441,733 505,908
Total assets 3,053,934 3,741,940
Total current liabilities 255,857 224,359
Total stockholders' equity 2,798,077 3,517,581
Total liabilities and
stockholders' equity 3,053,934 3,741,940
SOURCE Helix BioMedix, Inc.
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Related links:
http://www.helixbiomedix.com/
CONTACT:
Investors, Alison Ziegler of Cameron
Associates, +1-212-554-5469, Alison@cameronassoc.com, for Helix
BioMedix, Inc.; or David Kirske, CFO of Helix BioMedix, Inc.,
+1-425-402-8400, dkirske@helixbiomedix.com
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