BOTHELL, Wash., Nov. 10 /PRNewswire-FirstCall/ -- Helix BioMedix, Inc.
(OTC Bulletin Board: HXBM.OB), a developer of bioactive peptides, today
announced financial results for the three and nine month periods ended
September 30, 2006.
For the three month period ended September 30, 2006, Helix BioMedix
reported a net loss of $870,507, or $0.04 net loss per share, compared to a
net loss of $797,951, or $0.04 net loss per share, for the comparable
period in 2005. Revenue for the three-month period ended September 30, 2006
was $18,841, derived from licensing revenue and the sale of peptides.
Revenue for the comparable period in 2005 was $40,000 derived from the sale
of peptides at cost.
For the nine month period ended September 30, 2006, Helix BioMedix
reported a net loss of $2,877,295, or $0.13 net loss per share, compared to
a net loss of $2,402,020, or $0.14 net loss per share, for the comparable
period in 2005. The 2006 results include approximately $369,600 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 nine months ended September 30, 2006 was $66,940 which was derived
from licensing revenue, the renewal of a material transfer agreement and
the sale of peptides. Revenue for the comparable period in 2005 was $95,414
which consisted of $80,414 from the sale of peptides at cost and $15,000 of
licensing revenue.
On September 30, 2006, Helix BioMedix had cash and cash equivalents of
approximately $3.1 million, which included $2,598,000 of proceeds from a
private placement of common stock that was completed in the first quarter
of 2006. Shares outstanding at September 30, 2006 were 22,788,863.
R. Stephen Beatty, President and Chief Executive Officer, commented,
"In January of this year, Helix BioMedix identified five aggressive
milestones that we would seek to accomplish during 2006. We have already
achieved three of those objectives: First, we have delivered several newly
developed, peptide-based ingredients to our marketing and formulation
partners; second, we have successfully developed a new generation of
peptides described more fully in this press release; and third, we have
successfully advanced the pre-clinical testing of these peptides, for
certain pharmaceutical applications, to proof of concept in animal models.
We continue to make good progress toward achieving our two remaining
milestones, and we remain optimistic that we can achieve our goal of
completing five additional license agreements for peptide-based personal
care products over the next several months. While we did not sign any
additional license agreements during the third quarter, negotiations with
several companies are advancing towards completion."
Mr. Beatty added, "From the perspective of our organizational
development, the year to date has seen enormous progress as we have grown
and matured our commercialization and marketing functions to match our
first-class scientific capabilities. The addition of David O'Connor and
Weston Anson as directors in April of this year brought important
experience in consumer markets and licensing expertise to our boardroom.
Our efforts to bolster our marketing capabilities in the consumer product
area culminated with the appointment of Lori Bush as Chief Operating
Officer. Lori's wealth of industry experience at companies including
Johnson & Johnson and, most recently, Nu Skin Enterprises is already
proving beneficial for our company as she has accelerated our discussions
with a number of prospective licensees and marketing partners."
Mr. Beatty concluded, "This increased emphasis on commercializing our
technology has permeated the entire Helix BioMedix organization. We were
particularly proud that our Chief Scientific Officer, Dr. Tim Falla,
recently received a rare perfect score from attendees at The Personal Care
Ingredients & Technology Expo (PCITX) in response to his presentation
describing how the innate immune system is largely mediated by peptides,
the bioactivities of which can be isolated and tailored for use in a wide
range of consumer healthcare products."
Commenting on Helix BioMedix's new generation of peptides, Dr. Falla
said, "During the third quarter, we made considerable advances in our
pharmaceutical technology platform, and we plan to place our initial
emphasis on the large anti-infective dermatology market, including
indications such as acne and dermatitis. This program will feature a new
generation of small molecule peptides (lipohexapeptides) which we have
designed specifically to overcome the disadvantages that have hampered
previous attempts to develop therapies based on antimicrobial peptides.
These 'new generation' peptides are active in an oil and serum environment,
kill micro-organisms deep in a pore, and exhibit a broad spectrum of
activity. They are also excellent therapeutic drug candidates due to their
low toxicity, attractive cost of goods profile, and efficacy in both
bacterial and fungal infection models. The innovative technology underlying
this new class of peptide was recently validated in dermatological animal
infection models conducted at the University of Virginia and Case Western
Reserve University in which our lead molecules outperformed molecules
currently on the market and in development."
"As we advance our technology, we have also expanded our research and
development facilities," continued Dr. Falla. "With additional laboratory
space we have added a tissue culture facility which provides our scientists
with the capability to develop a wider range of functionally diverse
molecules."
Lori Bush, Chief Operating Officer, concluded, "This has been a period
of considerable strategic progress for our company -- progress that should
benefit our stockholders over the course of time. As we invest in our
pharmaceutical platform for the long-term growth of Helix BioMedix, we
continue to identify and advance the short- to mid-term commercialization
opportunities in the cosmeceutical and personal care arena. We are finding
that an increasing number of industry leaders and skin care clinicians are
identifying peptides as the next generation of cosmetic skin care
technology. The progress that we have made both on the pharmaceutical and
consumer sides of our business has begun to attract the attention of
strategic partners, and we will be actively pursuing several opportunities
to expand applications for our peptides and our technology platform during
the months to come."
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:
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)
Three Months Ended Nine Months Ended
September 30 September 30
2006 2005 2006 2005
Revenue:
Licensing $ 3,841 $ -- $ 38,940 $ 15,000
Peptide sales 15,000 40,000 28,000 80,414
Total revenue 18,841 40,000 66,940 95,414
Operating expenses:
Cost of peptide sales 6,620 40,000 162,991 80,414
Research and development 278,256 216,119 772,341 637,250
Depreciation
and amortization 46,141 46,197 136,477 130,966
Accounting, legal
and professional 73,602 34,321 210,023 236,488
Consulting fees 4,163 70,209 9,092 119,328
General and administrative 500,620 445,564 1,709,009 1,325,819
Total operating expenses 909,402 852,410 2,999,933 2,530,265
Loss from operations (890,561) (812,410) (2,932,993) (2,434,851)
Interest income (20,054) (14,459) (55,698) (32,831)
Net loss $(870,507) $(797,951) $(2,877,295) $(2,402,020)
Basic and diluted
net loss per share $(0.04) $(0.04) $(0.13) $(0.14)
Weighted average
shares outstanding 22,788,514 20,187,724 22,192,979 17,073,030
Balance Sheet Highlights (unaudited)
September 30, December 31,
2006 2005
Cash and cash equivalents $3,130,172 $2,827,959
Property and equipment, net 125,195 168,063
Patents pending and approved, net 457,777 505,908
Total assets 3,890,397 3,741,940
Total current liabilities 159,038 224,359
Total stockholders' equity 3,731,359 3,517,581
Total liabilities and stockholders' equity 3,890,397 3,741,940
SOURCE Helix BioMedix, Inc.
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Related links:
http://www.helixbiomedix.com
CONTACT:
David Kirske, CFO of Helix BioMedix, Inc.,
+1-425-402-8400, or dkirske@helixbiomedix.com; or investors,
Alison Ziegler of Cameron Associates, +1-212-554-5469, or
Alison@cameronassoc.com, for Helix BioMedix, Inc.
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