BELLEVILLE, ON, Sept. 26 /PRNewswire-FirstCall/ - Bioniche Life Sciences Inc. , a research-based, technology-driven Canadian biopharmaceutical company, today announced financial results for its 2007 fiscal year ended June 30, 2007.
“The recent announcements of the first shipment and commercial usage of our E. coli O157:H7 cattle vaccine and the Special Protocol Assessment (SPA) agreement with the U.S. Food and Drug Administration for our second Phase III pivotal trial in bladder cancer occurred after the end of Fiscal 2007, but are the result of significant internal efforts during the fiscal year,” noted Patrick Montpetit, Chief Financial Officer of Bioniche Life Sciences Inc. “During Fiscal 2007, we started our first Phase III clinical trial using our proprietary Mycobacterial Cell Wall-DNA Complex (MCC) in the treatment of bladder cancer patients whose condition is refractory (unresponsive) to the current standard therapy. We also closed a $17.5 million equity financing, with strong support from both institutional and individual investors.”
Fiscal 2007 Financial Results Highlights
Consolidated revenues for the fiscal year increased by 3% to $27.5 million, as compared to $26.7 million in Fiscal 2006. The overall gross profit margin was 56% this fiscal year as compared to 57% in Fiscal 2006.
Expenses totalled $18.5 million for the 12 months ending June 30, 2007, which compares to $19.6 million recorded in the same period last year. This decrease of $1.1 million, or 6%, includes a decrease in interest on long-term debt and other interest associated with the refinancing and repayment of the Company’s debt.
Gross research and development (R&D) expenses increased $2 million, or 16%, in Fiscal 2007, reaching $14.9 million compared to $12.9 million in Fiscal 2006. This is largely attributable to the start of the Phase III pivotal trial with Urocidin in bladder cancer patients whose condition is refractory (unresponsive) to the current standard therapy.
The Company repaid its long-term convertible debt with Laurus Master Funds during Fiscal 2007. US$1,723,307 was repaid on the secured convertible term note through conversion into shares and US$2,845,178 was repaid in cash. A secured revolving line of credit with Laurus Master Funds remains in place, allowing a maximum borrowing limit of US$4.0 million.
The basic net loss per share for Fiscal 2007 was ($0.32) compared to a net loss per share of ($0.03) in Fiscal 2006, which was bolstered by a gain of $0.47 per share from discontinued operations.
“We continue to pursue our strategic objectives with a view to creating shareholder value,” added Graeme McRae, President & CEO of Bioniche Life Sciences Inc. “We are focused on obtaining a full Canadian license for our E. coli O157:H7 cattle vaccine, while beginning to sell vaccine to Canadian veterinarians under the Permit to Release Veterinary Biologics. At the same time, we continue to pursue a registration in the U.S. We are also focused on the successful completion of a marketing partnership deal for our bladder cancer technology, while executing our Phase III clinical program with Urocidin and planning for early stage studies to support the use of our MCC technology in the treatment of other human cancers. Meeting these key milestones will, we believe, greatly enhance shareholder value in Bioniche.”
Conference Call/Audio Web Cast
Bioniche will host a conference call to discuss Fiscal 2007 results on Friday, September 28, 2007 at 10:00 a.m. Eastern. To participate in the teleconference, call 416-644-3414/toll-free 1-800-733-7571. A listen-only audio web cast will be available at www.newswire.ca/en/webcast/viewEvent.cgi?eventID=2012120 (English) or www.cnw.ca/fr/webcast/viewEvent.cgi?eventID=2012120 (French).
A replay of the conference call will be available until October 5, 2007 by calling (416) 640-1917 or toll-free 1-877-289-8525 (passcode: 21247148 followed by the number sign). The web cast will be available for replay using the above links until December 28, 2007.
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 approximately 195 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 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.
Bioniche Life Sciences Inc. Amalgamated under the laws of Ontario CONSOLIDATED BALANCE SHEETS As at June 30 2007 2006 $ $ ------------------------------------------------------------------------- ASSETS Current Cash and cash equivalents 1,523,597 4,093,293 Short-term investments 9,500,000 - Accounts receivable 5,495,836 5,644,956 Inventories 5,480,167 6,171,453 Prepaid expenses and deposits 658,867 804,470 ------------------------------------------------------------------------- 22,658,467 16,714,172 ------------------------------------------------------------------------- Long-term Property, plant and equipment 9,557,359 10,138,797 Intangible assets 8,545,215 9,401,733 Goodwill 456,155 456,155 Deferred financing fees 209,578 1,258,236 Investment - 3,298,279 Other assets 100,000 100,000 ------------------------------------------------------------------------- 41,526,774 41,367,372 ------------------------------------------------------------------------- ------------------------------------------------------------------------- LIABILITIES AND SHAREHOLDERS’ EQUITY Current Revolving credit facility 895,619 3,162,097 Accounts payable and accrued liabilities 6,399,382 5,054,593 Income and other taxes payable 283,845 494,881 Deferred government incentives 541,282 3,433,007 Current portion of long-term debt and capital leases 123,769 1,220,840 ------------------------------------------------------------------------- 8,243,897 13,365,418 ------------------------------------------------------------------------- Long-term Long-term debt 421,396 3,697,806 Obligations under capital leases 764,933 953,957 Deferred government incentives 2,986,572 - ------------------------------------------------------------------------- 12,416,798 18,017,181 ------------------------------------------------------------------------- Shareholders’ equity Share capital 90,038,524 72,686,901 Special warrants 2,174,008 - Other paid-in capital 5,528,059 4,556,290 Deficit (68,630,615) (53,869,621) Cumulative translation adjustment - (23,379) ------------------------------------------------------------------------- 29,109,976 23,350,191 ------------------------------------------------------------------------- 41,526,774 41,367,372 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Bioniche Life Sciences Inc. CONSOLIDATED STATEMENTS OF DEFICIT Years ended June 30 2007 2006 $ $ ------------------------------------------------------------------------- Deficit, beginning of year (53,869,621) (52,726,240) Net loss (14,760,994) (1,143,381) ------------------------------------------------------------------------- Deficit, end of year (68,630,615) (53,869,621) ------------------------------------------------------------------------- ------------------------------------------------------------------------- Bioniche Life Sciences Inc. CONSOLIDATED STATEMENTS OF LOSS Years ended June 30 2007 2006 $ $ ------------------------------------------------------------------------- REVENUE Sales 27,479,727 26,655,647 Cost of sales 12,179,266 11,331,332 ------------------------------------------------------------------------- Gross profit 15,300,461 15,324,315 ------------------------------------------------------------------------- EXPENSES Administration 7,239,106 5,856,666 Marketing and selling 6,106,225 6,341,082 Quality assurance 690,291 1,208,459 Interest on long-term debt 637,510 1,538,130 Other interest 75,049 287,729 Accreted interest on convertible term note 722,867 379,554 Amortization of property, plant and equipment 1,169,948 1,217,731 Amortization of intangible assets 856,518 1,245,451 Amortization of deferred financing fees 1,048,658 1,357,835 Foreign exchange loss (gain) (55,375) 192,841 ------------------------------------------------------------------------- 18,490,797 19,625,478 ------------------------------------------------------------------------- Loss before research and development expenses and other items (3,190,336) (4,301,163) Research and development expenses, gross 14,935,158 12,915,955 Less: government incentives, net (1,727,403) (833,148) Loss on sale of investment 192,157 - Gain on sale of rights to future royalty stream (2,127,587) - Debt refinancing - 2,493,920 ------------------------------------------------------------------------- Loss from continuing operations before income taxes (14,462,661) (18,877,890) Provision for income taxes 298,333 112,094 ------------------------------------------------------------------------- Loss from continuing operations (14,760,994) (18,989,984) Income from discontinued operations - 17,846,603 ------------------------------------------------------------------------- Net loss (14,760,994) (1,143,381) ------------------------------------------------------------------------- ------------------------------------------------------------------------- Basic and fully diluted net income (loss) per share Continuing operations (0.32) (0.50) Discontinued operations - 0.47 ------------------------------------------------------------------------- Basic and fully diluted net loss per share (0.32) (0.03) ------------------------------------------------------------------------- ------------------------------------------------------------------------- Weighted average number of common shares outstanding 45,827,257 37,936,361 Bioniche Life Sciences Inc. CONSOLIDATED STATEMENTS OF CASH FLOWS Years ended June 30 2007 2006 $ $ ------------------------------------------------------------------------- OPERATING ACTIVITIES Net loss from continuing operations (14,760,994) (18,989,984) Add (deduct) non cash items: Amortization 3,075,124 3,821,017 Accreted interest on convertible term note 722,867 498,881 Foreign exchange (gain) loss 38,208 (543,011) Stock-based compensation 221,712 241,484 Warrants issued to consultants 39,300 - Share bonus and shares issued to directors 962,759 90,002 Employee share ownership plan 523,559 544,872 Loss on sale of investment 192,157 - Gain on sale of right to future royalty stream and royalties recognized (2,618,306) - Write-down of deferred costs - government incentives - 576,000 Debt refinancing - 1,271,454 ----------------------------------------------------------------------- (11,603,614) (12,489,285) Net change in non-cash working capital balances 615,806 (1,552,485) ------------------------------------------------------------------------- Cash used in operating activities (10,987,808) (14,041,770) ------------------------------------------------------------------------- INVESTING ACTIVITIES Payment relating to acquisition of net assets - (123,120) Acquisition of short-term investments (11,000,548) - Proceeds from maturity of short-term investments 1,500,548 - Government incentives received on account of property, plant and equipment 30,224 54,422 Proceeds on disposal of property, plant and equipment 4,786 11,888 Proceeds from sale (purchase) of investment 3,196,200 (1,740,146) Selling costs incurred for sale of investment and future royalty stream (100,000) - Proceeds from sale of right to future royalty stream 3,652,800 - Purchase of property, plant and equipment (623,520) (1,000,017) ------------------------------------------------------------------------- Cash used in investing activities (3,339,510) (2,796,973) ------------------------------------------------------------------------- FINANCING ACTIVITIES Proceeds from bridge loan - 8,681,250 Proceeds from units issued 17,500,000 1,102,993 Proceeds from over-allotment warrants issued 22,500 - Proceeds from exercise of compensation warrants 23,730 - Proceeds from exercise of stock options 1,800 - Unit issue costs incurred (1,906,316) (49,300) Proceeds from convertible term note - 7,048,807 Payment of financing fees - debt - (1,333,986) Proceeds from deferred government incentives 74,282 727,721 Proceeds from revolving credit facility 21,019,297 4,051,250 Repayment of revolving credit facility (21,677,375) (741,285) Repayment of bridge loan - (8,605,500) Repayment of senior and other long-term debt (3,300,296) (18,989,521) ------------------------------------------------------------------------- Cash provided by (used in) financing activities 11,757,622 (8,107,571) ------------------------------------------------------------------------- Net decrease in cash from continuing operations (2,569,696) (24,946,314) Net increase in cash from discontinued operations - 25,512,199 ------------------------------------------------------------------------- Net increase (decrease) in cash for the year (2,569,696) 565,885 Cash and cash equivalents, beginning of year 4,093,293 3,527,408 ------------------------------------------------------------------------- Cash and cash equivalents, end of year 1,523,597 4,093,293 ------------------------------------------------------------------------- -------------------------------------------------------------------------
Bioniche Life Sciences Inc.
CONTACT: Patrick Montpetit, CA, Vice-President and Chief FinancialOfficer, Bioniche Life Sciences Inc., Telephone: (514) 697-6636,Patrick.Montpetit@Bioniche.com; Jennifer Shea, Corporate Communications &Investor Relations Manager, Bioniche Life Sciences Inc., Telephone: (613)966-8058, Cell: (613) 391-2097, Jennifer.Shea@Bioniche.com
