Year end results
Helix Biopharma Corp HBP
Shares issued 13,743,415 Dec 31 close $1.65
Thu 2 Jan 97 Company Review
Mr Terrance Owen reviews the company
1996 was the first year of operations for Helix BioPharma. Following the
amalgamation between International Helix Biotechnologies and Intercon
Pharma on July 31 1995, the new company resumed trading on the VSE in
mid-August and completed its co-listing on the TSE in early June.
The company currently has working capital of approximately $6.6 million.
This position was accomplished by two placements, one in the amount of $1.6
million with a select group of European investors, and a special warrant
offering for $5 million.
In February 1996 the company arranged a $1.3 million line of credit with
the Bank of Nova Scotia.
The company had $6,747,389 in cash reserves as of July 31 1996 made up of
$4,387,089 cash and treasury bills and $2,360,300 held in escrow, which was
subsequently released in October 1996. This is an increase of $5,485,391
from the previous year.
Pharmaceutical
The company currently markets nearly two dozen pharmaceutical products with
four more products pending approval by the Health Protection Branch and a
number of others that are scheduled to be submitted for regulatory
approval. These pharmaceuticals include generic opthalmic products licenced
from Bausch & Lomb, and gastrointestinal products developed and marketed by
the company. Two of the company's products, Klean-Prep and Pro-Lax,
continue to achieve favourable sales results. Pro-Lax is Canada's first
constipation preventative and is targeted at the health care industry's
movement toward preventative medicine.
New Technology
Micro-biological infections, the third largest cause of death in the US
after cancer and heart disease, are becoming resistant to current
treatments. Helix BioPharma's anti-infective technology is expected to
become an alternative and enhancement to current treatments by
Teflon-coating invading pathogens so that they cannot bind to human cells.
In vitro results to date have shown selectivity and high affinity for
Candida albicans, the organism responsible for oral thrush and the most
common form of vaginal infection. Through a licence agreement with the
University of Alberta and the Protein Engineering Network of Centers of
Excellence (PENCE), Helix BioPharma holds the worldwide rights to apply the
anti-infective technology to Candida albicans, a $1.3 billion market.
Animal trials are scheduled to commence in 1997 and human trials in 1998.
STATEMENT OF EARNINGS
Year ended July 31
1996 1995
Revenue $8,127,947 $4,866,138
---------- ----------
Expenses
Depreciation and
amortization 170,052 51,197
Interest and bank
charges, net (34,283) (8,638)
Interest on long-
term debt 34,320 51,111
Marketing and
admin 3,059,654 1,048,801
Production 4,219,576 3,202,303
Rent 105,225 44,676
Royalties 293,898 -
---------- ----------
Earnings before
the undernoted 279,505 476,688
R & D (614,900) (226,805)
Gain on sale of
capital assets 2,270 -
Investment tax
credits and
grants - 106,090
Loss on sale of
subsidiary - (22,722)
---------- ----------
Earnings (loss)
before income
taxes (333,125) 333,251
Income taxes 14,396 7,866
---------- ----------
Net earnings
(loss) $ (347,521) $ 325,385
========== ==========
Earnings (loss)
per share $(0.04) $0.05
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