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Helix BioPharma Corp. Announces Fiscal Q1 2010 Results
Date:12/9/2009

product sales of Monovisc(TM) and Orthovisc®(1). The reduction in sales of Orthovisc® offset revenues associated with the product launch of Monovisc(TM). While both products are used in the treatment of osteoarthritis, patients follow a three-injection regimen when using Orthovisc® and only a single injection regimen when being treated with Monovisc(TM).

License fees and royalties totalled $117,000 in the first quarter of fiscal 2010 and represent 11.5% of revenues. When compared to the first quarter of fiscal 2009, license fees and royalties were lower by $81,000 or 40.9%. The decrease in license fees and royalty revenues reflect a US$75,000 termination payment from Lumera Corporation ("Lumera") in the first quarter of fiscal 2009. Excluding the Lumera termination payment, license fees and royalty revenues are comprised solely of royalties related to sales of Klean-Prep®(1) outside of Canada.

Cost of sales totalled $418,000 in the first quarter of fiscal 2010 (2009 - $447,000). Margins, on a percentage basis, in the first quarter of fiscal 2010 were 53.7% (2009 - 51.5%). The increase in margins reflects higher margins on the sales of Monovisc(TM) and Orthovisc®.

Research and development costs in the first quarter of fiscal 2010 totaled $2,925,000 (2009 - $1,641,000) for an increase of $1,284,000. Higher research and development costs in the first quarter of fiscal 2010 reflect increased costs for both L-DOS47 and Topical Interferon Alpha-2b programs. Higher Topical Interferon Alpha-2b program expenditures mainly reflect increased costs associated with the ongoing Phase II pharmacokinetic study for cervical dysplasia/LSIL with marginally lower AGW trial expenditures. Subsequent to the end of the first quarter of fiscal 2010, the AGW trial enrolled all of the required 120 patients. Higher L-DOS47 expenditures reflect higher expenditures associated with animal pharmacology and primate repeat-dose tox
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