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Helix BioPharma announces Q1 2008 financial results
Date:12/17/2007

Product revenues totaled $754,000 in the first quarter of fiscal 2008 and represent 85.2% of total revenues. When compared to the first quarter of fiscal 2007, product revenues increased by $58,000 or 8.3% and are primarily driven by Klean-Prep(TM) product sales.

License fees and royalty revenue

License fees and royalties totaled $131,000 in the first quarter of fiscal 2008 and represent 14.8% of revenues. When compared to the first quarter of fiscal 2007, license fees and royalties were higher by $1,000 or 1.0%. The license fees and royalties in the first quarter of fiscal 2008 and 2007 were comprised solely of royalties related to sales of Klean-Prep(TM) outside of Canada.

Research and development contract revenue

The Company had no research and development contract revenue in both the first quarters of fiscal 2008 and 2007.

Cost of sales and margins

Cost of sales totaled $313,000 in the first quarter of fiscal 2008 (2007 - $290,000) with margins remaining relatively flat. Margins, on a percentage basis, in the first quarter of fiscal 2008 were 58.5% (2007 - 58.3%).

Research & development

Research and development costs in the first quarter of fiscal 2007 totaled $782,000 (2007 - $871,000) for a decrease of $89,000. Lower research and development costs in the first quarter of fiscal 2008 mainly reflect timing of expenditures associated with the Company's L-DOS47 program.

Research and development expenditures related to Topical Interferon Alpha-2b remained relatively flat, with expenditures from the late stage phase II German study during the first quarter of fiscal 2007 being offset by expenditures in the first quarter of fiscal 2008 relating to patient enrollment in the phase II trial in Sweden along with costs associated with patent filings and consulting services.

The Company expects to increase its R&D spending through the remainder of fiscal 2008, as its Topical Interferon Alpha-2b an
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SOURCE Helix BioPharma Corp.
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