BOTHELL, Wash., Aug. 11 /PRNewswire-FirstCall/ -- Helix BioMedix, Inc.
(OTC Bulletin Board: HXBM.OB), a developer of bioactive peptides, today
announced financial results for the second quarter ended June 30, 2006.
For the second quarter of 2006, Helix BioMedix reported a net loss of
$1,184,519, or $0.05 per diluted share, compared to a net loss of $838,284,
or $0.05 per diluted share, in the comparable prior year period. Revenue
for the second quarter of 2006 was $30,073 compared to $55,414 in the
second quarter of 2005. Revenue in the quarter was primarily from
non-refundable consideration received upon the renewal of a material
transfer and research agreement. The Company also had a $151,368 write-down
of peptide inventory to its net realizable value.
For the six months ended June 30, 2006, Helix BioMedix reported a net
loss of $2,006,788, or $0.09 per diluted share. This included $291,300 of
incremental expense for stock-based compensation due to the adoption of
SFAS 123R "Share Based Payment" in the first quarter. This compares to a
net loss of $1,604,069, or $0.10 per diluted share, in the first six months
of 2005. Revenue for the first six months of 2006 was $48,099 compared to
$55,414 for the comparable period in 2005.
On June 30, 2006, Helix BioMedix had cash and cash equivalents of
approximately $3.9 million, which included $2,598,000 of proceeds from a
private placement of common stock that was completed in the first quarter.
Shares outstanding at June 30, 2006 were 22,788,514.
"We are excited that the Nature's Gate(R) Organics Natural Results(TM)
Acne Treatment System, one of the first products to contain our HB64
peptide, was recently rolled out throughout the Whole Foods Market and Wild
Oats Markets chains and has moved into 300 select CVS/pharmacy stores,"
commented R. Stephen Beatty, President and Chief Executive Officer. "The
product has been well received to date and we should begin to see related
sales reflected in our revenue later this year."
"We have successfully achieved two of the five milestones we set for
ourselves at the beginning of 2006. From a product marketing standpoint,
our focus in 2006 has been primarily cosmetics. Our goal has been to see
five additional peptide-based products reach the market. To date we have
not signed any additional licenses or supply agreements, however we are
working hard with several companies to meet their product rollout
schedules."
"On the research and development front, we are well on our way to
meeting our stated objective of delivering two newly developed
peptide-based ingredients to our personal care marketing and formulation
partners. In addition to a new peptide capable of reducing skin redness
with application to a wide range of skin care products, we are on track to
deliver our second peptide-based ingredient for anti-aging later this year.
This novel technology platform targets the stimulation skin components such
as collagen, elastin and laminin. We also continue to work on our next
generation of skin care actives that are designed to reduce collagen
breakdown and target the improvement in appearance of age spots and skin
discoloration."
"Finally, we remain particularly optimistic about the potential for our
"small molecule peptides" (lipohexapeptides), which we have designed
specifically to overcome the disadvantages that have beset previous
antimicrobial peptide therapeutic candidates. This new generation of
peptide is active in an oil and serum environment, kills micro-organisms
deep in a pore and exhibits a broad spectrum of activity. These peptides
are excellent therapeutic drug candidates due to their low toxicity, an
attractive cost of goods profile, and efficacy in both bacterial and fungal
infection models. While the company is focused initially on developing this
novel class of anti-infective for dermatological indications, such as acne
and dermatitis, the ongoing generation of compelling preclinical data will
enable these molecules to have the potential to support an extensive
pipeline of indications. We are optimistic that the progress we are making
in the field of peptides will continue to attract the attention of
strategic partners, and we look forward to updating you on our progress in
the months to come," concluded Mr. Beatty.
About Helix BioMedix
Helix BioMedix, Inc. is a biopharmaceutical company that has a
portfolio of issued patents that covers six distinct classes of peptides,
including over 100,000 unique peptide sequences. The company's mission is
to become the industry leader in developing and commercializing small
proteins known as bioactive peptides. The antimicrobial and wound healing
properties of these peptides qualify them for inclusion in a wide range of
both pharmaceutical and consumer products. The company is currently focused
on the development of selected peptides as topical anti-infectives and in
wound healing applications. Non-pharmaceutical applications being pursued
by Helix BioMedix include adjuvants for cosmetics/cosmeceuticals, personal
care, plant health, animal health and wide-spectrum biocides. More
information about the company and its proprietary peptides can 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: Cameron Associates
Alison Ziegler 212-554-5469
alison@cameronassoc.com
Helix BioMedix, Inc.
Statements of Operations
(Unaudited)
Three Months Ended Six Months Ended
June 30 June 30
2006 2005 2006 2005
Revenue:
Licensing $30,073 $15,000 $35,099 $15,000
Peptide sales -- 40,414 13,000 40,414
Total revenue 30,073 55,414 48,099 55,414
Operating expenses:
Cost of peptide sales 151,368 40,414 156,371 40,414
Research and development 267,879 231,090 494,085 421,131
Depreciation and amortization 45,413 42,743 90,336 84,769
Accounting, legal and
professional 70,763 92,202 136,421 202,167
Consulting fees 1,881 27,110 4,929 49,119
General and administrative 698,471 471,394 1,208,389 880,255
Total operating expenses 1,235,775 904,953 2,090,531 1,677,855
Loss from operations (1,205,702) (849,539) (2,042,432) (1,622,441)
Interest income (21,183) (11,255) (35,644) (18,372)
Net loss $(1,184,519) $(838,284)$(2,006,788)$(1,604,069)
Basic and diluted net
loss per share $(0.05) $(0.05) $(0.09) $(0.10)
Weighted average shares
outstanding 22,788,514 16,851,669 21,890,276 15,489,871
Balance Sheet Highlights (unaudited)
June 30, December 31,
2006 2005
Cash and cash equivalents $3,851,778 $2,827,959
Property and equipment, net 151,616 168,063
Patents pending and approved, net 473,820 505,908
Total assets 4,648,562 3,741,940
Total current liabilities 128,568 224,359
Total stockholders' equity 4,519,994 3,517,581
Total liabilities and
stockholders' equity 4,648,562 3,741,940
SOURCE Helix BioMedix, Inc.
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Related links:
http://www.helixbiomedix.com/
CONTACT:
Alison Ziegler of Cameron Associates,
+1-212-554-5469, or alison@cameronassoc.com
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