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Helix BioPharma Announces Q1 2009 Financial Results
Date:12/11/2008

When compared to the first quarter of fiscal 2008, license fees and royalties were higher by $67,000 or 51.1%. License fees and royalty revenues are comprised solely of royalties related to sales of Klean-Prep(TM) outside of Canada except in the first quarter of fiscal 2009 which includes a US$75,000 termination payment from Lumera Corporation.

Research and Development Contract Revenue

The Company had no research and development contract revenue in both the first quarters of fiscal 2009 and 2008.

Cost of sales and margins

Cost of sales totaled $447,000 in the first quarter of fiscal 2009 (2008 - $313,000). Margins, on a percentage basis, in the first quarter of fiscal 2009 were 51.5% (2008 - 58.5%). The decrease in margins reflects higher purchase costs resulting from a lower Canadian dollar versus both the U.S. dollar and the Euro. In addition, some competitive pricing in the current market has also resulted in lower pricing to customers.

Research & development

Research and development costs in the first quarter of fiscal 2009 totaled $1,641,000 (2008 - $782,000) for an increase of $859,000. Higher research and development costs in the first quarter of fiscal 2008 reflect increased costs for both L-DOS47 and Topical Interferon Alpha-2b programs with the latter representing the majority of the research and development expenditures in the quarter. Research and development expenditures were split relatively equally amongst the L-DOS47, LSIL and AGW initiatives, with slightly higher expenditures associated with AGW due to the activities to enhance patient enrollment including the expansion of the trial to open study centers in Germany.

Operating, general & administration

Operating, general and administration expenses in the first quarter of fiscal 2009 totaled $1,310,000 (2008 - $1,313,000), for a decrea
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SOURCE Helix BioPharma Corp.
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