TSE & VSE: "HBP"
JULY 7, 1998
HELIX BIOPHARMA CORP. NEWS RELEASE
215 - 7080 RIVER ROAD
RICHMOND, B.C.
CANADA V6X 1X5
PHONE: (604) 270-7468
FAX: (604) 270-8208
TOLL FREE: 1-800-563-4363
HELIX BIOPHARMA CORP. ANNOUNCES THIRD QUARTER 1998 FINANCIAL RESULTS
(Richmond, B.C.) - Helix BioPharma Corp. (TSE, VSE - HBP) announces its
third quarter results. These results show a streamlining of operations, a
focus on strategic assets and increased development spending to further
advance the Company's core technologies, in particular its patented drug
delivery systems and advanced sensor technology.
Through the Company's ongoing investment commitment in PharmaDerm
Laboratories Ltd., Helix is developing patented dermal and mucosal drug
delivery technologies, including the BIPHASIXTM. The BIPHASIXTM is a
delivery system that greatly enhances the performance of therapeutics and
vaccines while eliminating the need for injections. Its ease of use and
increased performance should result in improved patient compliance and health.
Helix has incorporated a wholly owned subsidiary, Sensium Technologies
Inc., to hold and develop its proprietary Advanced Sensor Technology. This
Canadian technology uses a combination of membrane physics and biochemistry
to detect and measure a wide range of compounds such as nucleotides (the
building blocks of DNA), carbohydrates, peptides, steroids and vitamins, in
biological specimens such as blood.
The Company continues to fund its existing development partnerships with
University of Alberta, University of Saskatchewan, McGill University and
the Canadian Government sponsored Protein Engineering Network Centers of
Excellence. Together, these relationships form an integral part of the
Company's plan for accelerating the development of its technologies by
gaining access to exceptional scientists and technical personnel, highly
sophisticated instruments and equipment that would not otherwise be
available without large capital commitments.
In addition, Helix is continuing its efforts to build strategic commercial
alliances to bring its technologies to market.
The Company's increased focus on technology development is reflected in an
increase in Research and Development spending in 1998 over 1997. R & D
spending in the first 9 months of 1998 was $952,044 as compared to $558,588
for the same period in 1997.
Total revenue is stable in 1998, $3,067,942 for the first 9 months of 1998
as compared to $3,023,237. Royalty income continues to grow and the
Company is in fact generating royalties from sales of products using its
technology in over 25 countries around the world.
As mentioned above, Management is continuing to streamline operations and
concentrate its efforts on core strategic assets. The increase in
Marketing and Administrative costs to $2,347,228 for the 9 months ended
April 30, 1998 versus $2,116,019 for the same period in is due largely to
increased business development costs. Management has taken note and has
implemented changes that have improved administrative efficiencies as
reflected in the significant decline in these costs in the third quarter of
1998 over each of the previous two quarters: $565,693 in quarter three
versus $800,194 in the second quarter and $981,341 in the first quarter.
The Company had $1,409,713 in cash and treasury bills on hand as at April
30, 1998, versus $3,715,846 at April 30, 1997.
Helix BioPharma Corp.
Consolidated Balance Sheet as at April 30
(Unaudited)
1998 1997
ASSETS
Cash and treasury bills $ 1,409,713 $ 3,715,846
Accounts receivable 642,175 1,210,071
Inventory 512,236 500,693
Prepaid expenses and other 66,269 335,668
2,630,393 5,762,278
CAPITAL ASSETS 364,822 516,374
OTHER ASSETS 640,600 811,437
$ 3,635,815 $ 7,090,089
LIABILITIES AND SHAREHOLDERS' EQUITY
Accounts payable $ 1,027,219 $ 731,535
Royalties payable 32,425 35,873
Current portion of long term debt 121,600 146,840
1,181,244 914,248
LONG TERM DEBT 257,726 333,694
NON-CONTROLLING INTEREST 200,000 200,000
1,638,970 1,447,942
SHAREHOLDERS' EQUITY
Share capital 9,072,124 9,072,124
Deficit (7,075,279) (3,429,977)
1,996,845 5,642,147
$ 3,635,815 $ 7,090,089
Consolidated Statement of Loss for the Nine Months ended April 30
(Unaudited)
1998 1997
REVENUE $ 3,067,942 $ 3,023,237
EXPENSES 4,836,508 4,170,718
(1,768,566) (1,147,481)
Loss on discontinuation of operation 0 834,968
Loss before income taxes (1,768,566) (1,982,449)
Income taxes 74,391 0
Net loss for Period $ (1,842,957) $ (1,982,449)
Dated at Richmond, B.C. this 7th Day of July, 1998.
ON BEHALF OF THE BOARD
"Jerry McElroy"
Jerome F. McElroy, M.A.Sc., P.Eng, Chairman of the Board
The Toronto and Vancouver Stock Exchanges have not reviewed and do not
accept responsibility for the adequacy or accuracy of the content of this
News Release.
Helix BioPharma trades on the TSE and VSE under the symbol "HBP"
For further information contact: Jason Van Bergen, Investor Relations
Helix BioPharma Corp.
Tel: (604) 270-7468
(800) 563-4363
Fax: (604) 270-8208
E-mail: invrelations@helixbiopharma.ca
Jason Van Bergen
Phone: (604) 517-0599
E-mail: vanberg@ican.net |
