HBP - Helix Biopharma (HBPCF) - Q3 F2020 Earnings: More Value to Add in 2020

Q3 F2020 financial results. The company reported the third quarter fiscal year ended April 30, 2020. Net operating loss was $2.5 million for the quarter with $1.5 million research and development expenses and $0.9 million general and administrative expenses. Helix reported ($0.02) EPS.Updating estimates. We are adjusting our F2020 revenue and operating expense estimates. We have increased our R&D expenses to $6.4 million and reduced SG&A expense estimate to $2.7 million from $2.9 million. We are not expecting any pharma revenue this or next year. Previously we anticipated $5 and $20 million, respectively. We now forecast $9.1 million in operating expenses and ($0.07) of EPS compared to our previous estimates of $7.9 million and ($0.02), respectively. Our forecast from F2021 onward remains intact. We also assume that the company will also receive $2.3 million from the dissolved HIO agreement. Near-term value-generating catalyst. The value-generating catalysts in 2020 include i) completion of enrollment in Phase 1b pancreatic study in year-end 2020, ii) IND filing of Phase 1b/2 NSCLC, LDOS47 plus immunotherapy or Phase 2 NSCLC in LDOS47 plus Keytruda and carboplatin, iii) data analysis of Phase 2a NSCLC LDOS47 plus vinorelbine (VIN) and cisplatin (CIS), iv) up-listing on a US stock exchange.Reiterating Outperform rating. In our opinion, the company is positioned well with multiple assets soon to advance in the clinical with large market potential. We believe the current share price does not reflect the potential of Helix's pipeline. We are reiterating our Outperform rating and $2.50 price target.Read More >>