UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 8-K


                                 CURRENT REPORT

                     Pursuant to Section 13 or 15(d) of the
                         Securities Exchange Act of 1934

                Date of Report (Date of earliest event reported)
                        January 3, 2006 (January 3, 2006)

                           HEMISPHERX BIOPHARMA, INC.
             (Exact name of registrant as specified in its charter)

                           Delaware 0-27072 52-0845822
               (state or other juris- (Commission (I.R.S. Employer
           diction of incorporation) File Number) (Identification No.)

              1617 JFK Boulevard, Philadelphia, Pennsylvania 19103
               (Address of principal executive offices) (Zip Code)

       Registrant's telephone number, including area code: (215) 988-0080

                                                                       
          (Former name or former address, if changed since last report)


     Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
           following provisions (see General Instruction A.2. below):

[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)

[ ] Soliciting  material  pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12) [ ] Pre-commencement  communications pursuant to Rule 14d-2(b) under
the Exchange Act (17 CFR 240.14d-2(b))

[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange
Act (17 CFR 240.13e-4(c))








Section 8 - Other Events

Item 8.01 Other Events.

On January 3, 2006, we posted on our website a letter to our Shareholders.  This
letter is filed herewith as Exhibit 99.1.

Section 9 - Financial Statements and Exhibits Item 9.01 Financial Statements and
Exhibits.

(c)      Exhibits

The following Exhibit is filed as part of this report:

Exhibit No.                Description
-----------                -----------
99.1     Letter to Shareholders dated January 3, 2006


                                   SIGNATURES


         Pursuant to the  requirements  of the Securities  Exchange Act of 1934,
the  registrant  has duly  caused  this report to be signed on its behalf by the
undersigned hereunto duly authorized.


                                            HEMISPHERX BIOPHARMA, INC.


January 3, 2006                             By: /s/ William A. Carter
                                              ------------------------------
                                            William A. Carter M.D., President






                                                                 Exhibit 99.1
                               [GRAPHIC OMITTED]

                                                              January 3, 2006


Dear Shareholders,

2005 has been an excellent year for Hemispherx. Years of research,  development,
clinical trials and perseverance have led to growing recognition of the value of
our scientific  approach and product  portfolio and have  facilitated  important
collaborations,  acquisitions  and  financings,  all key  steps  on the  path to
successful commercialization. Our strategy going forward is to focus all efforts
on regulatory approval and advantageous alliances,  with the ultimate goal being
increased shareholder value. Every clinical trial initiated, alliance struck and
investment made in the past year was undertaken  with these  objectives in mind.
We have  enhanced  our asset base and  enriched  our  professional  resources to
provide us with the  resources,  relationships  and  expertise  to  achieve  our
objectives.

The twenty million dollar equity credit line established with Fusion Capital has
provided us the means to build out our manufacturing capability,  strengthen our
balance  sheet  and  secure   future   growth  with  minimum   dilution  to  our
shareholders.

The expansion of our  manufacturing  facilities and staff in New Brunswick,  New
Jersey and the  collaborative  manufacturing  relationship  with  HollisterStier
Laboratories  LLC for the production of  Ampligen(R)  are both ahead of schedule
and due for completion  and  certification  late in the 2nd quarter 2006.  These
efforts will significantly add to our production  capacity and conclude the last
steps  necessary for the filing of a consolidated  NDA for  Ampligen(R)  for the
treatment of CFS.

The single  shortfall of our 2005  objectives was the delay in the filing of our
NDA for  Ampligen(R)  for the  treatment  of CFS.  Our  targeted  filing by 2005
year-end was based on an anticipated grant of FDA permission to submit a rolling
or staged NDA application,  which would allow us to file the safety and clinical
sections of the NDA application in advance of the  manufacturing  section.  Even
though FDA permission to submit a rolling or staged NDA  application  has yet to
be received, since we are scheduled to complete our manufacturing certifications
late in the 2nd  quarter  of 2006,  we should,  in any  event,  file our NDA for
Ampligen(R)  for the  treatment  of CFS no later  than the first part of the 3rd
quarter of 2006.

The  disturbing  threats of an influenza  pandemic and  bio-terror  attacks have
pushed researchers and government  institutions to pursue creative  alternatives
to  established  vaccines  and  antivirals.  This  pursuit  has led to a growing
recognition  of the value of our  scientific  approach and product  portfolio as
investigators  have  identified  Hemispherx  products  as  potentially  adequate
options as a  broad-spectrum,  first line of defense  approach to combat  deadly
pathogens, such as the H5N1 influenza virus. Investigators, with whom we are now
collaborating,  have  sought and are  utilizing  Hemispherx  products in ongoing
clinical trials in this vital area.

Our clinical trials and those of our collaborators in the United States, Canada,
Hong Kong and Japan,  if successful,  will allow for NDA filings of our drugs as
experimental  stand-alone  antivirals  or  as  adjuvants  (boosters)  under  the
proposed new emergency  guidelines  whereby drugs may be licensed for sale based
on successful studies in two recognized animal models. While we are committed to
and are actively pursuing  commercial  approval of Ampligen(R) for the treatment
of CFS,  we are  aware  of,  and  believe  we are  uniquely  positioned  to take
advantage  of,  the fact that the  avian flu  (prevention  /  treatment)  market
opportunity is far larger at present,  rapidly growing and encompasses  areas of
the market opportunity  (Europe and Asia) where CFS recognition and treatment is
still in its infancy.

Our strategy now is to obtain regulatory approval and to leverage our laboratory
successes in aggressively pursuing advantageous relationships.  We are committed
to these  objectives  and  determined  to  deliver.  The next two years  will be
significant  in  Hemispherx's  transition  to  a  developer,   manufacturer  and
distributor of value-added immune enhancing drugs.

At the  Biodefense  Research  Meeting  sponsored  by  the  American  Society  of
Microbiology  in February  2006  (Washington,  DC) we will unveil  exciting  new
results  in  both  the  avian  flu  vaccine   augmentation   and  the  potential
broad-spectrum antiviral activities of Alferon N(TM) and Ampligen(R). Mark these
dates on your calendar as important milestones for our Company.

It is critical to our success that our investors understand the path that we are
taking  and  our  progress  down  this  path.  In  an  effort  to  improve  upon
communication  to the investor  community we will  commence  quarterly  investor
conference calls in line with the filing of the first 10Q of 2006.

We thank you for your on-going support.

Sincerely,

/s/ William A. Carter

Dr. William Carter
Chairman and Chief Executive Officer

Information  contained in this news release other than  historical  information,
should be considered  forward-looking and is subject to various risk factors and
uncertainties. For instance, the strategies and operations of Hemispherx involve
risk of competition,  changing market conditions, change in laws and regulations
affecting these industries and numerous other factors  discussed in this release
and in the Company's  filings with the Securities and Exchange  Commission.  Any
specifically referenced investigational drugs and associated technologies of the
company  (including  Ampligen(R) and Oragens(TM)) are experimental in nature and
as such are not  designated  safe and  effective by a regulatory  authority  for
general use and are legally  available  only  through  clinical  trials with the
referenced  disorders.  The forward-looking  statements  represent the Company's
judgment as of the date of this release.  The Company  disclaims,  however,  any
intent or obligation to update these forward-looking statements. Clinical trials
for other potential indications of the approved biologic Alferon(R) do not imply
that the product will ever be specifically approved commercially for these other
treatment indications.