Helix BioMedix, Inc. (OTCBB: HXBM), a developer of bioactive peptides, announced financial results for the year ended December 31, 2009.
“Helix BioMedix continued to make progress on our strategic initiatives during a year in which customers and partners were greatly impacted by the global economic situation, resulting in a number of delayed product introductions”
Financial and Business Overview:
Recorded revenue of approximately $391,000 in 2009 compared to approximately $563,000 a year ago
Recognized net loss of approximately $3.8 million in 2009 compared to approximately $4.5 million in 2008
Issued convertible promissory notes for approximately $3.5 million in the first quarter of 2009, and closed an additional $2.9 million convertible debt financing in March 2010
Added two new product royalty streams with partners Evonik GmbH and Rodan + Fields, LLC
Launched direct-to-consumer sales via www.strikingskincare.com
Completed initial clinical studies of SmartPeptide™ technology products
Expanded the corporate patent portfolio to include SmartPeptide™ technology claims
Completed proof of concept studies for advancement of Rx product development
Revenue for 2009 was approximately $391,000 compared to revenue of approximately $563,000 in 2008. The decline in revenue was primarily due to delays in product launches and reduced consumer spending as a result of the global economic crisis. Gross margin declined to 49.8% in 2009 compared to 54.6% a year ago. Net loss for 2009 declined to $3.8 million, or ($0.15) per share, compared to a net loss of $4.5 million, or ($0.18) per share, a year ago on improved expense controls and corporate efficiencies.
As of December 31, 2009, the company’s cash and cash equivalents balance was approximately $1.3 million compared to $985,000 at December 31, 2008. On March 5, 2010, the company issued additional convertible promissory notes in the aggregate principal amount of $2.9 million and five-year warrants to purchase an aggregate of 725,000 shares of its common stock at an exercise price of $0.80 per share.
“Helix BioMedix continued to make progress on our strategic initiatives during a year in which customers and partners were greatly impacted by the global economic situation, resulting in a number of delayed product introductions,” stated R. Stephen Beatty, President and Chief Executive Officer of Helix BioMedix. “We continued to incorporate our SmartPeptide™ technology into new formulations and furthered our clinical studies, laying a solid foundation for 2010. We successfully launched direct-to-consumer sales of our Striking™ Skin Care line via the company’s own web site at www.strikingskincare.com and expanded our royalty stream as partners such as Rodan + Fields, LLC launched new products. We also continued to work closely with partners such as Evonik GmbH and Grant Industries on a number of new product programs targeted for launch in 2010.”
Beatty continued, “Our increasing intellectual property portfolio now includes more than 67 patents issued and pending, covering a broad range of peptide technologies aimed at major market opportunities worldwide. We believe this includes significant potential for application in the Rx marketplace. Having completed a number of proof of concept studies in 2009 with our unique antimicrobial peptides, we are now positioned to forge ahead with our partners to advance these programs. Applications for our proprietary antimicrobial technology include dermatological indications such as acne, rosacea and atopic dermatitis, plus prevention of infection in wounds with hard to treat pathogens such as MRSA and other multi-resistant organisms.”
Beatty concluded, “In 2010, we expect to achieve revenue growth as a result of our progress this past year, paving the way for additional opportunities for our company and our peptides. We also expect to make continued progress on our key Rx candidates as well as generate increased business with our partners, several of whom have additional product launches and initiatives planned throughout the year. We are also enthusiastic about our recently announced distribution agreement covering a number of key Asian markets. Our strategic efforts have positioned us to deliver continued progress during 2010 in all areas of our business: licensed peptide technologies, skin care product sales and Rx partnerships.”