On March 17, 2021 Helix BioPharma Corp. (TSX: "HBP"), a an immuno-oncology company developing drug candidates for the prevention and treatment of cancer, reported its financial results for the fiscal second quarter ended January 31, 2021 (Press release, Helix BioPharma, MAR 17, 2021, View Source [SID1234576793]).
Schedule your 30 min Free 1stOncology Demo!
Discover why more than 1,500 members use 1stOncology™ to excel in:
Early/Late Stage Pipeline Development - Target Scouting - Clinical Biomarkers - Indication Selection & Expansion - BD&L Contacts - Conference Reports - Combinatorial Drug Settings - Companion Diagnostics - Drug Repositioning - First-in-class Analysis - Competitive Analysis - Deals & Licensing
Schedule Your 30 min Free Demo!
OVERVIEW The Company reported a net loss and total comprehensive loss of $2,492,000 and $2,714,000 for the three and sixmonth periods ended January 31, 2021. For the three and six-month periods ended January 31, 2020, net loss and total comprehensive loss totalled $2,255,000 and $4,466,000, respectively. The net loss and total comprehensive loss for the three-month period ending January 31, 2021 included a net loss of $626,000 (2020-$nil) and for the sixmonth period ending January 31, 2021 a net gain of $1,536,000 (2020-$nil) as a result of the loss of control of a subsidiary and ultimately, a final tranche disposition on December 22, 2020 for gross proceeds of $2,308,000. Subsequent to the quarter ending January 31, 2021, BDO Canada LLP resigned as the Company’s auditors.
The Company has engaged Marcum LLP as its new auditors. Research and development Research and development expense for the three and six-month periods ended January 31, 2021 totalled $1,086,000 and $2,170,000, respectively, as compared to $1,588,000 and $3,099,000 respectively for the three and six-month periods ended January 31, 2020, respectively.
The reduction in research and development expenditures for both the three and six-month periods ended January 31, 2021 when compared to the prior year, is mainly the result of lower clinical study and intellectual property expenditures. 1 Lower clinical operation expenses are due to spending having occurred in the prior year related to the Company’s LDOS003 Phase II clinical study in Poland and the Ukraine which has since concluded but currently awaiting reporting. The Company’s new LDOS006 Phase Ib/II pancreatic clinical study in the U.S. was still in the early stages with U.S. FDA approval only having been received in August 2019 and enrollment having commenced in December 2019. COVID19 slowed down patient enrollment.
The Company has added a new study site on March 12, 2021 and expects to add a third site in a months’ time in order to increase the patient enrollment rate. Lower intellectual property maintenance costs are mainly the result of the Company reclaiming certain costs incurred on behalf of its former subsidiary as per agreement. Operating, general and administration Operating, general and administration expenses for the three and six-month periods ended January 31, 2021 totalled $818,000 and $2,121,000, respectively, as compared to $654,000 and $1,363,000 for the three and six-month periods ended January 31, 2020, respectively The increase in operating, general and administration expenditures for both the three and six-month periods ended January 31, 2021 when compared to the prior year, is mainly the result of higher stock-based compensation expense associated with the vesting of stock options that were granted to directors of the Company over their vesting period in addition to higher legal costs and auditor fees. The Company has been in discussions with various groups both in the U.S. and Canada and has been incurring additional legal and audit expenses as part of the Company’s objective to raise additional capital to qualify for a listing on a U.S. stock exchange such as NASDAQ.
LIQUIDITY AND CAPITAL RESOURCES The Company reported a net loss and total comprehensive loss of $2,492,000 for the three-month period ended January 31, 2021 (2020-$2,255,000) and $2,714,000 for the six-month period ended January 31, 2021 (2020-$4,466,000). As at January 31, 2021 the Company had working capital of $3,639,000, shareholders’ equity of $3,766,000 and a deficit of $183,230,000. As at July 31, 2020 the Company had working capital of $2,735,000, shareholders’ equity of $2,981,000, a deficit of $180,516,000.
The Company experienced a working capital deficiency throughout fiscal 2018 and 2019 until August 21, 2019 when the Company closed the first of a series of private placements with a more recent financing occurring in December 2020. During the quarter ended January 31, 2021, the Company completed two rounds of private placements for gross proceeds totalling $4,100,000. On December 22, 2020 the Company disposed its remaining interest in a subsidiary for gross proceeds of $2,308,000. The Company’s cash reserves of $4,098,000 as at January 31, 2021 are insufficient to meet anticipated cash needs for working capital and capital expenditures through the next twelve months, nor are they sufficient to see planned research and development initiatives through to completion.
Though the funds raised have assisted the Company in dealing with its working capital deficiency, additional funds are required to advance the Company’s clinical and preclinical programs and deal with working capital requirements. To the extent that the Company does not believe it has sufficient liquidity to meet its current obligations, management considers securing additional funds, to be critical for its development needs.
The Company’s Interim Condensed Financial Statements (unaudited) and Management’s Discussion and Analysis will be filed under the Company’s profile on SEDAR at www.sedar.com, as well as on the Company’s website.