BOTHELL, Wash., Nov. 14 /PRNewswire-FirstCall/ -- Helix BioMedix, Inc.
(OTC Bulletin Board: HXBM), a developer of synthetic bioactive peptides, today
announced financial results for the third quarter ended September 30, 2005.
For the third quarter of 2005, the company reported a net loss of
$798,000, or $0.04 per diluted share, compared to a net loss of $837,000, or
$0.06 per diluted share, in the prior year period. The company reported
revenue of $40,000 in the third quarter related to providing peptides at cost
to certain companies that are researching the potential development of new
products that would incorporate the company's peptides. This compares to
revenue of $26,000 for the comparable period in 2004, all of which was
licensing revenue. Revenue for the remainder of 2005 will be dependent on
Helix BioMedix's ability to enter into collaborative or licensing agreements
with third parties.
For the nine month period ended September 30, 2005, Helix BioMedix
reported a net loss of $2,402,020, or $0.14 per diluted share, compared to a
net loss of $2,310,000, or $0.18 per diluted share, in the prior year period.
Revenue for the first nine months of 2005 was $95,000 compared to $92,000 for
the first nine months of 2004.
On September 30, 2005, Helix BioMedix had cash and cash equivalents of
approximately $3.5 million compared to approximately $1.9 million at December
31, 2004. The company received proceeds from a private placement of common
stock in the first quarter of 2005 and a warrant exchange in the second
quarter of 2005, raising an aggregate of approximately $3.8 million in cash.
Shares outstanding at September 30, 2005 were 20,190,514.
"In line with our projections last quarter, we saw the first two
commercial launches of our proprietary peptides during the third quarter,"
commented R. Stephen Beatty, President and CEO. "In September, we entered
into a definitive license agreement with Levlad Inc., a leading manufacturer
and marketer of branded natural and organic personal care products. Levlad is
marketing our proprietary HB64 peptide as Oligopeptide-10, a key ingredient in
Levlad's Nature's Gate(R) Organics Natural Results(TM) Acne Treatment System.
Introduced at Natural Products Expo East, the product is expected to be
available for sale later this year. In addition, American Global Health
Group, LLC (AGHG) has accepted delivery of one of our peptides for their new
skin care product and are in the process of rolling it out. While revenues
are not expected to be material in the fourth quarter, we look forward to
these products' potential success in 2006."
The initial commercialization of the company's technology has been
accompanied by the advancement of Helix peptide-based skin care products to
the formulation and consumer testing stage with six additional cosmetic
companies. This has the potential to lead to accelerated product launches in
2006 and 2007. To build on this initial success, the company's scientists
have begun an intensive screening program to identify and develop new active
ingredients in areas of skin care specifically identified by its customers.
This initiative is anticipated to yield new peptide-based products for
launches in 2007 and beyond.
Mr. Beatty added, "On the pharmaceutical side, our work on wound structure
with HB50 has identified anti-inflammatory and proliferate properties in a
number of our other lead candidates entering preclinical evaluation.
Preclinical testing of a gel formulation of HB50 has shown that it
significantly reduces Staphylococcus aureus bacteria in topical anti-infective
model, and, in the majority of cases, HB50 eradicated this organism."
"We are also pursuing a wide variety of peptide-based therapeutics which
includes extremely small lipopeptides specifically designed for dermatological
applications. These peptides are highly potent against bacterial and fungal
pathogens active in serum and in the lipid environment associated with skin
conditions such as acne. Patent applications have been filed in 2005 on this
new class of antimicrobial peptide, and preclinical studies were initiated in
the area of skin infection with academic collaborators at the University of
Virginia and Case Western. This new generation of antimicrobial agent has a
broad spectrum of activity, a novel mechanism of action and the potential for
an array of topical and systemic applications."
Recent scientific advances by Helix BioMedix will be discussed later this
year in presentations at ICAAC in Washington, DC and The Strategic Research
Institute's Peptides & Therapeutic Proteins Conference in Philadelphia.
About Helix BioMedix
Helix BioMedix, Inc. is an early-stage biotechnology company that has a
portfolio of issued patents that covers six distinct classes of peptides,
including over 1 million 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. 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 involve risks
and uncertainties, including activities, events or developments that the
company expects, believes or anticipates will or may occur in the future. 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:
Helix BioMedix, Inc.
David H. Kirske, 425-402-8400
dkirske@helixbiomedix.com
or:
Investor Relations:
Cameron Associates
Paul G. Henning, 212-554-5462
paul@cameronassoc.com
Helix BioMedix, Inc.
Statements of Operations
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
2005 2004 2005 2004
Revenue:
Licensing $-- $26,000 $15,000 $92,061
Peptide sales 40,000 -- 80,414 --
Total revenue 40,000 26,000 95,414 92,061
Operating expenses:
Cost of peptide sales 40,000 -- 80,414 --
Research and
development 216,119 212,854 637,250 695,968
Depreciation and
amortization 46,197 41,613 130,966 118,857
Accounting, legal and
professional 34,321 59,011 236,488 226,513
Consulting fees 70,209 7,256 119,328 104,627
General and
administrative 445,564 555,331 1,325,819 1,279,381
Total operating
expenses 852,410 876,065 2,530,265 2,425,346
Loss from operations (812,410) (850,065) (2,434,851) (2,333,285)
Other (income) expense:
Gain on sale of equipment -- (6,453) -- (6,453)
Interest income (14,459) (6,382) (32,831) (17,132)
(14,459) (12,835) (32,831) (23,585)
Net loss $(797,951) $(837,230) $(2,402,020) $(2,309,700)
Basic and diluted
net loss per share $(0.04) $(0.06) $(0.14) $(0.18)
Weighted average
shares outstanding 20,187,724 13,533,370 17,073,030 13,104,859
Balance Sheet Highlights
September 30, December 31,
2005 2004
Cash and cash equivalents $3,522,609 $1,908,028
Property and equipment, net 189,670 211,716
Patents pending and approved 521,952 527,018
Total assets 4,453,111 2,867,080
Total current liabilities 148,320 188,046
Total stockholders' equity 4,304,791 2,679,034
Total liabilities and stockholders' equity 4,453,111 2,867,080
SOURCE Helix BioMedix, Inc.
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Related links:
http://www.helixbiomedix.com
CONTACT:
David H. Kirske of Helix BioMedix, Inc.,
+1-425-402-8400, or dkirske@helixbiomedix.com, or investors, Paul
G. Henning of Cameron Associates, +1-212-554-5462, or
paul@cameronassoc.com, for Helix BioMedix, Inc.
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