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Helix BioPharma Corp. Announces Fiscal 2008 Results
Date:10/28/2008

sents an increase of $188,000 or 6.8% when compared to product revenue in fiscal 2007 of $2,764,000. Product sales of Klean-Prep(TM) continued to grow in fiscal 2008 and more than offset lower sales of Orthovisc(R) in Canada.

License fees and royalties in fiscal 2008 totaled $639,000 and represent an increase of $127,000 or 24.8% when compared to fiscal 2007. The increase is mainly the result of a milestone payment from the sub-licensing arrangement of the Company's biochip technology to Lumera Corporation. Lumera has now given notice of its termination of the sub-license effective December 19, 2008.

Research and development contract revenue in fiscal 2008 totaled $nil and represents a decrease of $148,000 when compared to fiscal 2007. The Company completed a research and development contract in the third quarter of fiscal 2007 and currently has no plans to contract its research and development services out to third parties, but instead is focusing its resources on the development of two product candidates: L-DOS47 and Topical Interferon Alpha-2b.

Cost of sales in fiscal 2008 and 2007 totaled $1,239,000 and $1,139,000, respectively. As a percentage of product revenues, cost of sales in fiscal 2008 and 2007 were 42.0%, 41.2%, respectively. The Canadian dollar's strength over the last three fiscal years has moderated in fiscal 2008 and was range bound, reflecting slight higher cost of sales.

Research and development expenditures in fiscal 2008 totaled $5,064,000 and represent an increase of $948,000 or 23.0% when compared to fiscal 2007. Both Topical Interferon Alpha-2b and DOS47 reflect an increase of 20.6% and 25.0%, respectively. The increase in DOS47 research and development expenditures reflect advancing preclinical costs in preparation for L-DOS47 pre-IND meetings and a Phase I IND filing to occur sometime before the end of Helix's fiscal fourth quarter ending July 31, 2009. The increase in research and development expenditures relate
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SOURCE Helix BioPharma Corp.
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