AURORA, ON -- (Marketwired) -- 12/11/15 -- Helix BioPharma Corp. (TSX: HBP) (FRANKFURT: HBP), a biopharmaceutical company developing drug candidates for the prevention and treatment of cancer, today announced its financial results for the first quarter of fiscal 2016, ended October 31, 2015.
FINANCIAL REVIEW
The Company recorded a net loss and total comprehensive loss of $2,592,000 ($0.03 loss per common share) and $2,125,000 ($0.03 loss per common share) for the three-month periods ended October 31, 2015 and 2014, respectively.
Research and development
Research and development costs for the three-month periods ended October 31, 2015 and 2014 totalled $1,339,000 and $1,244,000, respectively.
L-DOS47 research and development expenses for the three-month periods ended October 31, 2015 and 2014 totalled $1,094,000 and $950,000, respectively. The higher L-DOS47 research and development expenses in the three-month period ended October 31, 2015 relate primarily to expenditures associated with the ongoing expansion of European Phase I/II clinical study in Poland.
Corporate research and development expenses for three-month periods ended October 31, 2015 and 2014 totalled $142,000 and $165,000, respectively with the decrease mainly related to lower travel expenses.
Trademark and patent related expenses for the three-month periods ended October 31, 2015 and 2014 totalled $73,000 and $80,000, respectively.
Operating, general and administration
Operating, general and administration expenses for the three-month periods ended October 31, 2015 and 2014 totalled $1,259,000 and $886,000, respectively. The increase mainly reflects higher investor and media relations, legal and other consulting arrangements associated mainly with ongoing efforts by the Company to raise capital.
LIQUIDITY AND CAPITAL RESOURCES
The Company's cash reserves of $5,008,000, as at October 31, 2015, is insufficient to meet anticipated cash needs for working capital and capital expenditures through the next twelve months, nor are they sufficient to see the Company's current research and development initiatives through to completion. Management therefore considers securing additional funds, expected to be through the issuance of equity securities of the Company, to be of the utmost importance.
The Company's condensed unaudited interim consolidated statement of net loss and comprehensive loss for the three-month periods ending October 31, 2015 and 2014 and the condensed unaudited interim consolidated statement of cash flows for the three-month periods ending October 31, 2015 and 2014 are summarized below:
Consolidated Statements of Net Loss and Comprehenisve Loss
(thousand $, except for per share data)
Oct-31 Oct-31
2015 2014
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Expenses:
Research and development 1,339 1,244
Operating, general & administration 1,259 886
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Results from operating activities
before finance items (2,598) (2,130)
Finance items 6 5
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Net loss and total comprehensive loss (2,592) (2,125)
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Total loss per common share * $ (0.03) $ (0.03)
* Figures are for both basic and fully diluted
Consolidated Statements of Cash Flows (thousand $)
Oct-31 Oct-31
2015 2014
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Cash provided by (used in):
Net loss and total comprehensive loss (2,592) (2,125)
Items not involving cash:
Depreciation of property, plant and equipment 36 35
Stock-based compensation 73 104
Foreign exchange loss - 7
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109 146
Changes in non-cash working capital 711 (174)
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Operating activities (1,772) (2,153)
Financing activities 16 -
Investing activities (28) (6)
Effect of exchange rate changes on cash - (7)
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Net decrease in cash from continuing operations (1,784) (2,166)
Cash beginning of the period 6,792 6,980
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Cash end of the period 5,008 4,814
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The Company's condensed unaudited interim consolidated statement of financial position as at October 31, 2015 and July 31, 2015 are summarized below:
Consolidated Statement of Financial Position (thousand $)
31-Oct-15 31-Jul-15
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Non current assets 321 329
Current assets:
Prepaids 85 184
Accounts receivable 278 491
Cash 5,008 6,792
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5,371 7,467
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Total assets 5,692 7,796
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Shareholders' equity 4,324 6,827
Current liabilities:
Accrued liabilities 598 707
Accounts payable 770 262
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1,368 969
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Total liabilities & shareholders equity 5,692 7,796
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The Company's condensed unaudited interim consolidated financial statements and management's discussion and analysis will be filed under the Company's profile on SEDAR at www.sedar.com, as well as on the Company's website at www.helixbiopharma.com. Shareholders have the ability to receive a hard copy of the Company's unaudited condensed interim consolidated financial statements free of charge upon request at the address below.
About Helix BioPharma Corp.
Helix BioPharma Corp. is a biopharmaceutical company specializing in the field of cancer therapy. The Company is actively developing innovative products for the prevention and treatment of cancer based on its proprietary technologies. Helix's product development initiatives include its novel L-DOS47 new drug candidate and its Topical Interferon Alpha-2b. Helix is currently listed on the TSX and FSE under the symbol "HBP".
Forward-Looking Information and Risks and Uncertainties
This news release contains forward-looking information (collectively, "forward-looking information") within the meaning of applicable Canadian securities laws. Forward-looking information includes statements and information that are not historical facts but instead include financial projections and estimates, statements regarding plans, goals, objectives, intentions and expectations with respect to the Company's future business, operations, research and development, including the Company's activities relating to DOS47, and other information in future periods.
Forward-looking information includes, without limitation, statements concerning the Company's ability to operate on a going concern being dependent mainly on obtaining additional financing and future expenditures, the insufficiency of the Company's current cash resources and the need for financing. Forward-looking information can further be identified by the use of forward-looking terminology such as "ongoing", "estimates", "expects", or the negative thereof or any other variations thereon or comparable terminology referring to future events or results, or that events or conditions "will", "may", "could", "would", or "should" occur or be achieved, or comparable terminology referring to future events or results.
Forward-looking information are statements about the future and are inherently uncertain, and are necessarily based upon a number of estimates and assumptions that are also uncertain. Although the Company believes that the expectations reflected in such forward-looking information are reasonable, such statements involve risks and uncertainties, and undue reliance should not be placed on such statements. Forward-looking information, including financial outlooks, are intended to provide information about management's current plans and expectations regarding future operations, including without limitation, future financing requirements, and may not be appropriate for other purposes. Certain material factors, estimates or assumptions have been applied in making forward-looking statements in this news release, including, but not limited to, the safety and efficacy of L-DOS47; that sufficient financing will be obtained in a timely manner to allow the Company to continue operations and implement its clinical trials in the manner and on the timelines anticipated; the timely provision of services and supplies, or other performance of contracts by third parties; future costs; the absence of any material changes in business strategy or plans; and the timely receipt of required regulatory approvals and strategic partner support.
The Company's actual results could differ materially from those anticipated in the forward-looking statements contained in this news release as a result of numerous known and unknown risks and uncertainties, including without limitation, the risk that the Company's assumptions may prove to be incorrect; the risk that additional financing may not be obtainable in a timely manner, or at all, and that clinical trials may not commence or complete within anticipated timelines or the anticipated budget or may fail; third party suppliers of necessary services or of drug product and other materials may fail to perform or be unwilling or unable to supply the Company, which could cause delay or cancellation of the Company's research and development activities; necessary regulatory approvals may not be granted or may be withdrawn; the Company may not be able to secure necessary strategic partner support; general economic conditions, intellectual property and insurance risks; changes in business strategy or plans; and other risks and uncertainties referred to elsewhere in this news release, any of which could cause actual results to vary materially from current results or the Company's anticipated future results. Certain of these risks and uncertainties, and others affecting the Company, are more fully described in Helix's Annual Information Form, in particular under the headings "Forward-looking Statements" and "Risk Factors", and other reports filed under the Company's profile on SEDAR at www.sedar.com from time to time. Forward-looking information is based on the beliefs, assumptions, opinions and expectations of Helix's management on the date of this new release, and the Company does not assume any obligation to update any forward-looking information should those beliefs, assumptions, opinions or expectations, or other circumstances change, except as required by law.
Investor Relations:
Helix BioPharma Corp.
3-305 Industrial Parkway South
Aurora, Ontario, L4G 6X7
Tel: 905 841-2300
Email: ir@helixbiopharma.com
