- sales of Animal Health products 10% ahead of Fiscal 2011 on a year-to-date basis -
(all figures are in Canadian dollars unless otherwise noted)
BELLEVILLE, ON, May 9, 2012 /PRNewswire/ -Bioniche Life Sciences Inc. (TSX: BNC) (ASX: BNC), a research-based, technology-driven Canadian biopharmaceutical company, today announced financial results for the third quarter of its 2012 fiscal year (ended March 31, 2012).
"We continue to see growth in sales of Animal Health products, representing a ten percent increase on a year-to-date basis over Fiscal 2011," said Mr. Graeme McRae, Chairman, President & CEO of Bioniche Life Sciences Inc. "Further growth is expected heading into Fiscal 2013 as we launch new Animal Health products in the marketplace, including a canine cancer product that could be launched as early as July this year in the U.S. and Canada."
Corporate Burn Rate
The Company continues to monitor and work to control its burn rate (cash used in operations). The Company's burn rate was approximately $1.4 million per month during the third quarter of Fiscal 2012 as compared to an average of $1.1 million per month during the first two quarters. The increase in burn rate can be attributed to investments to support new product launches in Animal Health. Burn rate control efforts going forward include a strengthening of Animal Health product sales, the deferment of certain Research and Development projects, and continued scrutiny around administrative expenditures. At the same time, the Company continues its efforts to identify new Human Health opportunities for its proprietary Mycobacterial Cell Wall-DNA Complex (MCC) technology. UrocidinTM, a formulation of MCC for non-muscle-invasive bladder cancer that is refractory to BCG, is undergoing Phase III clinical testing. An international trial is being conducted by the Company's licensing partner, Endo Pharmaceuticals.
Fiscal 2012 Third Quarter Financial Results Highlights
Revenues associated with Animal Health product sales increased in the quarter by $1.2 million as compared to the same quarter in Fiscal 2011 (revenues increased from $7.2 million to $8.4 million), with gross margins of 48.7% in the period (vs. 48% in Q3, Fiscal 2011). A reclassification of depreciation under International Financial Reporting Standards (IFRS) has reduced the margin by 1.3% in the period. On a year-to-date basis, Animal Health sales revenues are $21.9 million, as compared to $20 million for the first nine months of Fiscal 2011 with gross margins of 50.3% in Fiscal 2012 as compared to 50.1% last year.
Consolidated revenues for the quarter were $8.7 million, as compared to $8.1 million in the same period in Fiscal 2011. On a year-to-date basis, consolidated revenues are $23.7 million as compared to $26.6 million for the first nine months of Fiscal 2011. It should be noted that certain non-recurring licensing revenue was included for the Fiscal 2011 reporting period.
Cash and cash equivalents, including other current financial assets, amounted to $5.3 million at March 31, 2012, as compared to $16.8 million at June 30, 2011. This does not include the US$20 million debt financing that was received subsequent to quarter-end.
Research and Development expenditures for the quarters ended March 31, 2011 and 2012 were $5.5 million. On a year-to-date basis, these expenditures amount to $15.0 million in Fiscal 2012, as compared to $15.2 million in Fiscal 2011.
Administrative expenditures for the quarter ended March 31, 2012 were $2.4 million, as compared to $2.5 million in the same period in Fiscal 2011. Year-to-date administrative expenditures total $7.4 million, as compared to $7.9 million in Fiscal 2011. Marketing and selling expenditures were $1.8 million in the third quarter, as compared to $1.7 million in the same period in Fiscal 2011. Year-to-date expenditures in this category amounted to $5.1 million, as compared to $5.2 million for the same nine months of Fiscal 2011. It should be noted that the Company plans to invest additional resources in marketing and selling during Fiscal 2013 in order to enhance penetration in existing markets and develop new markets for Animal Health products to improve revenues and cash flow.
The basic and fully-diluted net loss for the three-month period ending March 31, 2012 was $(0.06) per share compared to $(0.05) per share in the same period in Fiscal 2011. The year-to-date basic and fully diluted net loss is $(0.14) per share, compared to $(0.12) in the same period last year.
The weighted average number of Common Shares outstanding for the nine-month period ended March 31, 2012 is 102,627,328. This compares to 84,605,217 at March 31, 2011. The completion of concurrent Share Offers in Canada and Australia in December 2010/January 2011 contributed to this change.
Vaccine Manufacturing Centre Validation/Commissioning
The Company's Animal Health and Food Safety Vaccine Manufacturing Centre (VMC) in Belleville, Ontario has been undergoing validation and commissioning to meet North American production standards for the past several months. This process has proceeded according to plan and is expected to be completed by mid-2012. A satisfactory review of documentation related to procedures will be required by the regulatory agency before commercial production can commence.
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 and innovative products for human and animal health markets worldwide. The fully-integrated company employs more than 200 skilled personnel and has three operating divisions: Human Health, Animal Health, and Food Safety. The Company's primary goal is to develop and commercialize products that advance human or animal health and increase shareholder value.
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.
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