BELLEVILLE, ON, February 10, 2011 – Bioniche Life Sciences Inc. (TSX & ASX: BNC), a research-based, technology-driven Canadian biopharmaceutical company, today announced financial results for the second quarter of its 2011 fiscal year (ended December 31, 2010).
“Subsequent to quarter-end – on January 27th – the Company became listed on the Australian Securities Exchange (ASX) following the successful completion of concurrent Australian and Canadian Share Offers,” said Graeme McRae, Chairman, President & CEO of Bioniche Life Sciences Inc. “Between the two jurisdictions, we raised a total of C$28.9 million which will facilitate the achievement of a number of corporate objectives. The ASX listing provides a higher profile and enhanced growth opportunities for the Company in both the Australian and Asian markets.”
Subsequent to the ASX listing – on February 4, 2011 - investment bank Taylor Collison Limited (Australia) initiated research coverage of the Company. Healthcare and Biotechnology Analyst Thomas Duthy gave the Company a “speculative buy” recommendation with a valuation and price target of A$2.99.
Fiscal 2011 Second Quarter Financial Results Highlights
Fiscal 2011 second quarter cash and cash equivalents amounted to C$23.6 million, as compared to C$11 million at Fiscal 2010 year-end (June 30, 2010). This significant increase largely reflects the net proceeds of the Canadian portion of the recently completed Share Offers - C$16,675,000. A further C$12.2 million less expenses will be added in Q3 reflecting the early January, 2011 closing of the Australian portion of the Share Offers.
Consolidated revenues related to Bioniche Animal Health product sales for the second quarter were C$6.1 million, as compared to C$7.0 million in the second quarter of Fiscal 2010. Year-to-date revenue from product sales amounts to C$12.8 million, compared to C$12.9 million year-to-date in Fiscal 2010. Research collaborations and licensing revenue in Q2, Fiscal 2011 brought total revenue for the quarter to C$11.4 million, compared to C$13.8 million in the same period last year. Licensing revenue reflects the amortization of the up-front payment from Endo Pharmaceuticals Inc. upon signing of the UrocidinTM license, development and supply agreement. The total up-front payment received, C$22.3 million (non-refundable), is being recognized over 15 years, which is the term over which the Company maintains substantive contractual obligations (per Canadian Generally Accepted Accounting Principles – GAAP).
The Company is undergoing a period of intensive investment in the Animal Health & Food Safety Vaccine Manufacturing Centre under construction at its Belleville, Ontario corporate headquarters. This investment is reflected in the long-term corporate assets under Property, Plant and Equipment, which totals C$23.2 million at the end of Q2. The new facility is being funded through a consortium of government and quasi-government repayable long-term loans. The Company is required to expend resources, after which, reimbursement for eligible expenditures is provided by the lenders.
Research and development expenditures in the second quarter of Fiscal 2011 totalled C$4.8 million, a 1.2% increase over the same period in Fiscal 2010. The R&D expenditures related to the Company’s portion of the ongoing UrocidinTM clinical development program, as well as development programs in Animal Health and Food Safety.
Administration expenses grew in Q2, Fiscal 2011 to C$3.6 million from C$1.6 million in the same period in Fiscal 2010. The increase is mainly attributable to the establishment of a retirement benefit plan.
The basic and fully-diluted net loss per share for the second quarter of Fiscal 2011 was (C$0.04) compared to a gain per share of C$0.04 in the same quarter in Fiscal 2010 reflecting license revenues for that period. Total Common Shares outstanding at December 31, 2010 were 81,897,104, as compared to 72,008,694 for the corresponding period in Fiscal 2010.
About Bioniche Life Sciences Inc.
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 218 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. The Company was named one of the Top 50 Small and Medium-Sized Employers in Canada for 2010, based on employee opinion. For more information, please visit 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:
Jennifer Shea, Vice-President, Communications, Investor & Government Relations Bioniche Life Sciences Inc. Telephone: +1 (613) 966 8058 ext. 1250 Cell: +1 (613) 391 2097 Jennifer.Shea@Bioniche.com
Kyahn Williamson, Account Director Buchan Consulting Telephone: +61 3 9866 4722 kwilliamson@bcg.com.au
Paul Dekkers, Account Director Buchan Consulting Telephone: +61 2 9237 2800 pdekkers@bcg.com.au
