OUCH!!!
Helix Biopharma Corp -
Year end results
Helix Biopharma Corp HBPShares issued 137434151998-01-20 close $0.4Thursday Jan 22 1998Mr Jerome McElroy reviews the company 1997 was a pivotal year in the existence of Helix BioPharma. While continuing to consolidate its position as Canada's premier leader in private DNA testing, Helix made significant acquisitions of new intellectual property and laid the foundations necessary to prepare for the forecasted rapid growth in the company's three key areas of expertise: genetic testing, drug development, and advanced sensor technology. DNA and Genetic Testing Helix's paternity testing operations reached and exceeded all goals in 1997. The Company's DNA division achieved an excellent year in terms of number of cases processed. The company's national market share is now in excess of 70%. This increase in casework was not achieved at the expense of profitability, which was maintained at attractive levels. Furthermore, Helix continued to increase its share of forensic DNA testing, an area previously dominated by public sector laboratories in Canada. Drug Development In 1997 Helix's drug division had several notable achievements: Klean-Prep, Helix's proprietary colonic lavage, was launched successfully in another five countries by Helix's distribution partner, Helsinn-Birex of Ireland. Pro-Lax, a constipation preventative, was introduced for sale in Canada. Helix made a major investment in PharmaDerm Laboratories of Saskatchewan, and PharmaDerm subsequently received two notice of allowance of patents from the US Patent Office for its innovative Dermal Drug Delivery Systems. Helix has received preliminary animal data indicating that its anti-infective compounds are effective in treating Candida albicans, the organism responsible for oral thrush and vaginal yeast infections. This market exceeds $1.4 billion globally. Advanced Sensor Technology Helix entered into an agreement with the Protein Engineering Network of Centers of Excellence, supported by the University of Alberta and McGill University, for development of a platform biosensor technology. This technology holds a great deal of promise for the purpose of converting chemical, biological, and environmental measurements directly to digital form in a rapid and inexpensive manner. Key patent applications for the technology have been filed in all major countries in the world. Discontinued Operation In order to allow the company's resources to be allocated to these new developments, the board of directors made the difficult decision to close Helix's laboratory and diagnostic distribution division. The board felt that management's time and the company's capital resources would be better spent on building the future potential of the company instead of struggling to maintain this low margin and cut-throat business. This decision has led to a one-time charge of $1,707,838. Looking Ahead to 1998 The preceding developments represent a great number of fundamental, foundation-building achievements which Helix believes will strongly enhance the shareholder value of this company in the future, and which have set the stage for the realization of significant corporate milestones in 1998. In 1998 Helix looks forward to achieving further success in the following key fields: Genetic Testing for Disease Predispositions The company's DNA subsidiary will begin to offer genetic testing services for disease predispositions in 1998, as negotiations for the rights to several gene sequences have already commenced. To its knowledge, Helix will be one of the first companies to offer such services privately in Canada. Establishing Helix as a leader in this area of technology will greatly aid the company's intention to eventually become active in the new field of gene therapy. Drug Development During 1998 it is anticipated that Helix will reach significant milestones with its novel technology portfolio. The company's proprietary Dermal Drug Delivery Systems will be subjected to their first major clinical test, as it is anticipated that two pharmaceutical compounds using these systems will enter phase I human clinical trials. The company's lead anti-infective compounds will undergo further animal studies for the purpose of establishing appropriate dosage levels and formulation in preparation for human trials in 1999. Advanced Sensor Technology Comprehensive laboratory testing will soon be undertaken with the company's first Biosensor prototype. These tests are expected to validate this technology as a revolutionary platform technology for measuring minute quantities of biological compounds. Strategic Alliances and Funding As Helix's technologies increase in value, the company will begin to form alliances to bring each technology to commercialization. To accomplish this it anticipates undertaking capital financing initiatives, to be followed by major technology-based commercial alliances later in 1998.
STATEMENT OF EARNINGS
Year ended July 31
1997 1996
Revenue $ 4,006,547 $ 3,599,756
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Expenses
Amortization 255,894 144,835
Interest and
bank charges,
net (85,879) 144,835
Interest on
long term debt 10,069 17,019
Marketing and
administration 2,518,892 1,623,745
Production 1,452,209 850,237
Rent 93,437 67,963
R and D 1,481,935 546,597
Royalties 354,251 293,754
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6,080,808 3,502,443
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Earnings (loss)
before income
taxes and dis-
continued
operations (2,074,261) 97,313
Income taxes 2,695 14,396
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Earnings (loss)
from continuing
operations (2,076,956) 82,917
(Loss) from
discontinued
operations (1,707,838) (430,438)
----------- -----------
Earnings (loss) (3,784,794) (347,521)
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Earnings (loss)
per share $(0.16) $0.01 |
