Helix BioMedix, Inc. (OTCBB: HXBM), a developer of bioactive peptides,
today announced financial results for the year ended December 31, 2007.
Revenue for the twelve months ended December 31, 2007 was approximately
$0.5 million, compared to revenue of approximately $71,000 for 2006. Net
loss for 2007 was approximately $3.4 million, or $(0.14) per share,
compared to approximately $3.8 million, or ($0.17) per share, for 2006.
As of December 31, 2007, the company’s cash,
cash equivalents and available-for-sale marketable securities totaled
approximately $1.1 million, and in February 2008 the company consummated
a convertible debt financing of $3.0 million.
“During 2007, we made significant progress
towards leveraging our past efforts in science and development, which
resulted in our successful transition from a development stage company
to the recording of the company’s first
meaningful revenue as a commercial stage company,”
stated R. Stephen Beatty, President and Chief Executive Officer of Helix
BioMedix. “I am also pleased to report that
during the year we achieved each of the four key milestones we
established one year ago, which serves as a measure of our progress and
execution.”
Beatty continued, “Looking forward to 2008, we
expect to build upon our 2007 accomplishments and continue to
commercialize our innovative bioactive peptides. In order to support our
expected growth, we recently closed a $3.0 million convertible debt
financing, which will fund our operations during the coming year. We
also entered into a peptide manufacturing and supply agreement to secure
an adequate supply of specified peptides at fixed prices for an initial
period of two years. For 2008, we are establishing three new key
strategic milestones, comprised of the following:
Launch a core anti-aging skin care product offering;
Generate significant revenue from our licensing partnerships; and
Initiate clinical development of our lead drug candidate.
Based on our expected execution of the above initiatives, we have
established a goal of continuing to build strong revenue growth during
2008 followed by significantly higher revenue during 2009.”
Beatty concluded, “We believe the long-term
success of the company will be through further development of our
pharmaceutical programs. Our goal is to initiate clinical development of
our lead drug candidates either through strategic partnerships or by
securing the necessary funding to launch our lipohexapeptide
pharmaceutical programs. During 2007, we met with pharmaceutical
companies regarding out-licensing opportunities; however, we believe the
best way to maximize stockholder value is to further develop our lead
lipohexapeptide drug candidates before seeking a pharmaceutical partner.
With this in mind we will continue to update interested pharmaceutical
companies while concurrently presenting our scientific data to life
science investment groups with the goal of funding our lead drug
candidates.”
Recent Financial and Business Highlights:
Reported record revenue of almost $500,000 in 2007
Closed $3.0 million convertible debt financing in February 2008
Launched P.A.C. Perfect™ (Peptide-powered
Acne Control) product line through strategic relationship with
DermaVentures, LLC
Entered into a broad-based marketing agreement with Evonik (formerly
Degussa)
Expanded marketing partnership with Grant Industries
Entered into a peptide supply agreement that will assure adequate
peptide supplies at fixed prices for a two-year term
Appointed Robin Carmichael, a twenty-five year industry veteran, as
Vice President – Marketing and Business
Development
Strengthened Board of Directors with the addition of Jack Clifford,
former Chairman and CEO of ProCyte Corporation
Established Dermatology Advisory Board
Entered into discussions with pharmaceutical companies regarding
licensing of our lipohexapeptide pharmaceutical program
Entered into discussions with selected life science investment groups
regarding the funding of our lipohexapeptide pharmaceutical program
About Helix BioMedix, Inc.
Helix BioMedix, Inc. is a biopharmaceutical company with an extensive
library of diverse bioactive peptides and patents covering six distinct
classes and hundreds of thousands of peptide sequences. Our mission is
to enrich clinical practice and the patient/consumer experience by
developing topically-applied products which offer the health, beauty and
safety benefits of our 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 peptides.
Our core competencies include peptide design, synthesis and
characterization together with assay development, screening, tissue
culture and microbiology, leveraged through relationships with contract
research organizations and peptide manufacturers. We have the capability
to take our product development programs from theoretical concept to a
validated and qualified skin care active ingredient fully validated as
to efficacy and safety. Applications for Helix BioMedix peptides include
anti-aging cosmeceutical skin care and acne treatment as well as other
topical anti-infective pharmaceuticals and wound healing applications.
In addition, we are developing finished, peptide-based products to
market with our partners.
More information about the company and its proprietary peptides may be
found on the company’s website at www.helixbiomedix.com.
Forward Looking Statements
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 its 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, continue developing marketable
peptide-based products and general economic conditions. Additional
assumptions, risks and uncertainties are described in detail in the
company’s reports and other filings with the
Securities and Exchange Commission. Such filings are available on the
company’s website or at 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.
Financial Tables to Follow
HELIX BIOMEDIX, INC.
BALANCE SHEETS
(Unaudited)
December 31,
2007
2006
ASSETS
Current assets:
Cash and cash equivalents
$
461,290
$
1,276,901
Marketable securities
700,000
980,000
Accounts receivable
83,915
-
Inventory
65,279
-
Prepaid expenses and other current assets
144,074
93,342
Total current assets
1,454,558
2,350,243
Deposits
8,522
4,211
Property and equipment, net
126,509
194,728
Intangible assets, net
432,482
511,362
Total assets
$
2,022,071
$
3,060,544
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable
$
95,071
$
65,549
Accrued compensation and benefits
63,813
108,603
Accrued expenses
60,269
27,315
Deferred revenue
130,000
61,000
Total current liabilities
349,153
262,467
Deferred rent
2,205
-
Total liabilities
351,358
262,467
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $0.001 par value, 25,000,000 shares authorized;
none issued and outstanding
-
-
Common stock, $0.001 par value, 100,000,000 shares authorized;
25,653,512 shares outstanding at December 31, 2007; 22,788,514
shares outstanding at December 31, 2006
25,654
22,788
Additional paid-in capital
29,211,972
26,908,198
Accumulated deficit
(27,566,913
)
(24,132,909
)
Total stockholders’ equity
1,670,713
2,798,077
Total liabilities and stockholders’ equity
$
2,022,071
$
3,060,544
HELIX BIOMEDIX, INC.
STATEMENTS OF OPERATIONS
(Unaudited)
Year Ended December 31,
2007
2006
Revenue:
License and development fees
$
193,381
$
38,940
Peptide sales
206,160
32,000
Peptide sales to related party
64,400
-
463,941
70,940
Operating expenses:
Cost of peptide sales
118,096
162,991
Other cost of revenue
20,396
-
Research and development
782,075
988,451
Depreciation and amortization
174,225
180,755
Accounting, legal and professional
537,176
318,113
Marketing and business development
443,732
490,706
General and administrative
1,906,820
1,832,858
Total operating expenses
3,982,520
3,973,874
Loss from operations
(3,518,579
)
(3,902,934
)
Other income:
Interest income
84,575
74,608
84,575
74,608
Net loss
$
(3,434,004
)
$
(3,828,326
)
Basic and diluted net loss per share
$
(0.14
)
$
(0.17
)
Weighted average shares outstanding
25,139,745
22,343,087
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