BELLEVILLE, Ontario, Nov. 10 /PRNewswire-FirstCall/ -- Bioniche Life Sciences Inc. , a research-based, technology-driven Canadian biopharmaceutical company, today released first quarter results for Fiscal 2007 (for the period ended September 30, 2006).
The Company reported three significant operating highlights during and subsequent to the first quarter of Fiscal 2007:
- Total revenues were C$7.7 million for this period, as compared to C$5.8 million in the same period in Fiscal 2006. This 33% increase is the result of strong marketing efforts by the Company’s Animal Health division. - The Company agreed to sell its 10% ownership position in Bioniche Pharma Holdings and its annual royalty payments for each of the next five years related to sales of Suplasyn(R) for a total of $6 million USD. Suplasyn(R) is a proprietary product for the treatment of osteoarthritis in human joints that was developed by the Company. - Subsequent to the quarter end (on November 8, 2006), the Company announced the first patient was administered Urocidin(TM) as part of the Phase III refractory bladder cancer trial. Urocidin is a formulation of Mycobacterial Cell Wall-DNA Complex (MCC), the Company’s proprietary composition prepared from Mycobacterium phlei, a saprophytic mycobacteria. MCC has immune stimulatory as well as apoptosis (programmed cell death) inducing activity against cancer cells.
Graeme McRae, President & CEO of Bioniche noted: “Twenty-five clinical sites have committed to participate in our Phase III clinical trial involving the treatment of 105 non-muscle invasive bladder cancer patients whose cancer is refractory (unresponsive) to the current standard therapy (BCG) with Urocidin, our proprietary technology. This important project and the regulatory approval of our E. coli O157:H7 cattle vaccine remain our two corporate priorities. At the same time, we are pursuing potential financing and strategic partnerships that will assist us in completing these projects efficiently.”
First Quarter Results
The Company’s consolidated revenues for the first quarter of fiscal 2007 reached C$7.7 million as compared to C$5.8 million in the same period last year. This increase of C$1.9 million, or 33%, reflects increased sales of two of the Company’s reproductive technologies. This increase is predominantly attributed to increases in sales due to strong marketing efforts.
Expenses totaled C$3.9 million for the three-month period ending September 30, 2006, as compared to C$4.2 million recorded in the same period last year The overall gross profit margin on product sales during the first quarter of fiscal 2007 increased to 56% from 55% reported in the same period last year.
The EBITDA before Research and Development for the three months ending September 30, 2006 totaled C$1.8 million as compared to C$0.5 million recorded in the same period last year as a result of the better-than-expected performance in Animal Health sales during the first quarter.
The Company recorded net income before research and development of C$0.6 million for the three month period ending September 30, 2006, as compared to a loss of C$(0.9) million recorded in the same period last year. This increase of C$1.5 million reflects the increased sales level and reduction in expenses.
Gross research and development (R&D) expenses for the three-month period ending September 30, 2006 totaled C$3.6 million as compared to C$2.9 million reported in the same period last year. This increase of C$0.7 million, or 25%, reflects increased costs of C$0.7 million within the Human Health segment due to increased staffing within the clinical group and third party costs associated with the Phase III clinical trial along with increased administrative support.
Net loss for the three months ending September 30, 2006 totaled C$(2.7 million), as compared to C$(3.3 million) recorded in the same period last year. The overall loss was reduced by C$0.6 million. The basic and diluted loss per share for the three months ending September 30, 2006 was C$(0.07) per share, as compared to a loss of C$(0.09) recorded in the same period last year.
“We have focused the business and prioritized our key proprietary technologies: Urocidin for bladder cancer and the E. coli O157:H7 cattle vaccine. We look forward to sharing news of our continued development and progress towards commercialization of these significant technologies,” concluded Mr. McRae.
About Bioniche Life Sciences
Bioniche Life Sciences Inc. is a research-based, technology-driven Canadian biopharmaceutical company focused on the discovery, development, manufacturing, and marketing of proprietary products for human and animal health markets worldwide. The fully-integrated company employs approximately 188 skilled personnel and has three operating divisions: Human Health, Animal Health, and Food Safety. The Company’s primary goal is to develop proprietary cancer therapies supported by revenues from marketed products in human and animal health. For more information, please visit http://www.Bioniche.com.
Except for historical information, this news release may contain forward- looking statements that reflect the Company’s current expectation regarding future events. These forward-looking statements involve risk and uncertainties, which may cause but are not limited to, changing market conditions, the successful and timely completion of clinical studies, the establishment of corporate alliances, the impact of competitive products and pricing, new product development, uncertainties related to the regulatory approval process, and other risks detailed from time to time in the Company’s ongoing quarterly and annual reporting.
For further information, please contact: Patrick Montpetit, CA Vice-President and Chief Financial Officer Bioniche Life Sciences Inc. Telephone: (514) 697-6636 ext. 2245 Patrick.Montpetit@Bioniche.com Jennifer Shea Corporate Communications & Investor Relations Manager Bioniche Life Sciences Inc. Telephone: (613) 966-8058 ext. 1250 Cell: (613) 391-2097 Jennifer.Shea@Bioniche.com Bioniche Life Sciences Inc. Amalgamated under the laws of Ontario CONSOLIDATED BALANCE SHEETS [Unaudited] As at As at September 30, June 30, 2006 2006 $ $ ASSETS Current Cash 1,591,705 4,093,293 Accounts receivable 7,018,143 5,644,956 Inventories 5,573,258 6,171,453 Prepaid expenses and deposits 795,978 804,470 14,979,084 16,714,172 Long-term Capital assets, net 9,950,919 10,138,797 Intangible assets, net 9,187,604 9,401,733 Goodwill 456,155 456,155 Deferred financing fees, net 1,083,908 1,258,236 Investment 3,123,279 3,298,279 Other assets 100,000 100,000 38,880,949 41,367,372 LIABILITIES AND SHAREHOLDERS’ EQUITY Current Revolving credit facility 2,329,724 3,162,097 Accounts payable and accrued liabilities 6,047,730 5,054,593 Income and other taxes payable 555,902 494,881 Deferred government incentives 3,450,238 3,433,007 Current portion of senior debt and capital leases 1,209,905 1,220,840 13,593,499 13,365,418 Long-term Senior debt 3,538,107 3,697,806 Obligations under capital lease 928,802 953,957 18,060,408 18,017,181 Shareholders’ equity Share capital 72,883,626 72,686,901 Other paid-in capital 4,570,779 4,556,290 Deficit (56,610,485) (53,869,621) Cumulative translation adjustment (23,379) (23,379) 20,820,541 23,350,191 38,880,949 41,367,372 Bioniche Life Sciences Inc. CONSOLIDATED STATEMENTS OF DEFICIT [Unaudited] For the three months ended September 30 2006 2005 $ $ Deficit, beginning of period (53,869,621) (52,726,240) Net loss for the period (2,740,864) (3,322,463) Deficit, end of period (56,610,485) (56,048,703) Bioniche Life Sciences Inc. CONSOLIDATED STATEMENTS OF LOSS [Unaudited] For the three months ended September 30 2006 2005 $ $ [Restated] REVENUE Sales 7,744,626 5,838,054 Cost of sales 3,190,845 2,529,304 Gross profit 4,553,781 3,308,750 EXPENSES Administration 1,130,291 1,006,585 Marketing and selling 1,421,464 1,350,276 Quality assurance 168,507 248,904 Interest on long-term debt 160,509 634,383 Other interest 73,204 (23,066) Imputed interest on convertible term note 143,138 - Share ownership plan and bonus - 133,171 Amortization of capital assets 295,284 302,297 Amortization of intangible assets 214,129 214,129 Amortization of deferred financing fees 174,328 68,339 Impairment of investment 175,000 - Foreign exchange loss (gain) (12,186) 232,843 3,943,668 4,167,861 Income (loss) before research and development expenses 610,113 (859,111) Research and development expenses, gross 3,589,748 2,858,352 Less: government incentives, net (422,627) (91,199) Loss from continuing operations before income taxes (2,557,008) (3,626,264) Provision for income tax expense 183,856 28,611 Loss from continuing operations (2,740,864) (3,654,875) Income from discontinued operations - 332,412 Net loss for the period (2,740,864) (3,322,463) Basic and diluted net income (loss) per share Continuing operations (0.07) (0.10) Discontinued operations - 0.01 Basic and diluted net loss per share (0.07) (0.09) Bioniche Life Sciences Inc. CONSOLIDATED STATEMENTS OF CASH FLOWS [Unaudited] For the three months ended September 30 2006 2005 $ $ [Restated] OPERATING ACTIVITIES Loss from continuing operations (2,740,864) (3,654,875) Add (deduct) non cash items: Amortization 683,741 584,765 Non-cash interest expense 143,138 - Foreign exchange gain (6,133) (26,815) Share, option, and warrant compensation 55,780 73,175 Employee share ownership plan - 136,354 Impairment of investment 175,000 - (1,689,338) (2,887,396) Net change in non-cash working capital balances 270,577 694,755 Cash used in operating activities (1,418,761) (2,192,641) INVESTING ACTIVITIES Payment relating to acquisition of net assets - (123,120) Purchase of capital assets (107,405) (123,344) Cash used in investing activities (107,405) (246,464) FINANCING ACTIVITIES Repayment of revolving credit facility (665,480) - Repayment of senior and other long-term debt (309,941) (208,104) Cash used in financing activities (975,422) (208,104) Net decrease in cash from continuing operations (2,501,588) (2,647,209) Net increase in cash from discontinued operations - 435,444 Net decrease in cash for the year (2,501,588) (2,211,765) Cash, beginning of period 4,093,293 3,527,408 Cash, end of period 1,591,705 1,315,643
Bioniche Life Sciences Inc.
CONTACT: Patrick Montpetit, CA, Vice-President and Chief FinancialOfficer, +1-514-697-6636 ext. 2245, Patrick.Montpetit@Bioniche.com, orJennifer Shea, Corporate Communications & Investor Relations Manager,+1-613-966-8058 ext. 1250, Cell - +1-613-391-2097,Jennifer.Shea@Bioniche.com, both of Bioniche Life Sciences Inc.
Web site: http://www.bioniche.com/
