EMERYVILLE, Calif., March 13 /PRNewswire-FirstCall/ -- Bionovo, Inc. today announced financial results for the fourth quarter and full year ended December 31, 2007.
Fourth Quarter Results
The company reported revenues for the three months ended December 31, 2007 of $330,875 compared to $3,750 for the same period in 2006. The increase in revenues over the comparable period in 2006, is due primarily to the recognition of $239,625 from our National Institute of Health grant drawdown earned in 2007 and the recognition of unamortized deferred revenue of $91,250 as a result of the termination of our licensing agreement with United Biotechnology Corporation ("UBC") of Taiwan on October 15, 2007.
Total operating expenses for the three months ended December 31, 2007 were $4.3 million compared to $2.0 million for the same period in 2006.
The company reported a net loss for the three months ended December 31, 2007 of $3.7 million, or $0.05 per share, compared with a net loss of $1.9 million, or $0.04 per share, for the same period in 2006.
Full Year Results
For the year ended December 31, 2007 total revenues were $581,750 compared with $15,000 for the same period in 2006. Revenues in 2007 also included a National Institute of Health (NIH) grant drawdown of $239,625 received for 2006 and the recognition of $11,250 in amortization from the proceeds of our licensing and technology transfer agreement with UBC of Taiwan
For the year ended December 31, 2007 total operating expenses were $14.2 million compared with $5.8 million for the same period in 2006. The increase in 2007 operating expenses include the impact of research and development expense for the development of our lead drug candidates, clinical trial expenses and a related increase in operational support.
The net loss for the year ended December 31, 2007 was $12.9 million, or $0.20 per share, compared with a net loss of $5.6 million, or $0.11 per share, for the same period in 2006. The year-over-year increase in net loss was driven primarily by the increased activity related to our clinical trials and a related increase in operational support.
As of December 31, 2007, cash, cash equivalents and short-term investments totaled approximately $33.3 million compared to $3.1 million at December 31, 2006. The increase in cash, cash equivalents and short term investments in 2007 is due primarily to $14.5 million, net of financing expense, raised from our Private Placement (a.k.a. "PIPE") completed in January 2007, a public offering completed in October 2007, which raised aggregate net cash proceeds of $24.0 million, and $4.8 million received from the exercise of stock options and warrants, offset by net cash used in operating activities of $10.3 million.
"We believe our achievements in the last year have positioned Bionovo well for an exciting and promising 2008," said Isaac Cohen, O.M.D., Bionovo's chairman and CEO. "With the proceeds of our recent public offering, we are in a strong financial position to support the ongoing product development and clinical trials for our lead product candidates for metastatic breast cancer, BZL101, and menopausal hot flashes, MF101. We are also pleased with the interest we have received from potential partners in ongoing discussions of our programs and drug candidates. With the combination of our strong financial position, our partner discussions, and the momentum in our clinical trials we believe we are on the right path to become a leader in the areas of breast cancer and women's health."
About Bionovo, Inc.
Bionovo is a pharmaceutical company focused on the discovery and development of safe and effective treatments for women's health and cancer, markets with significant unmet needs and billions in potential annual revenue. The company applies its expertise in the biology of menopause and cancer to design new drugs derived from botanical sources which have novel mechanisms of action. Based on the results of early and mid-stage clinical trials, Bionovo believes they have discovered new classes of drug candidates within their rich pipeline with the potential to be leaders in their markets. Bionovo is headquartered in Emeryville, California and is traded on the NASDAQ Capital Market under the symbol, "BNVI". For more information about Bionovo and its programs, visit: http://www.bionovo.com.
Forward Looking Statements
This release contains certain forward-looking statements relating to the business of Bionovo, Inc. that can be identified by the use of forward-looking terminology such as "believes," "expects," or similar expressions. Such forward-looking statements involve known and unknown risks and uncertainties, including uncertainties relating to product development, efficacy and safety, regulatory actions or delays, the ability to obtain or maintain patent or other proprietary intellectual property protection, market acceptance, physician acceptance, third party reimbursement, future capital requirements, competition in general and other factors that may cause actual results to be materially different from those described herein as anticipated, believed, estimated or expected. Certain of these risks and uncertainties are or will be described in greater detail in our filings with the Securities and Exchange Commission, which are available at http://www.sec.gov. Bionovo, Inc. is under no obligation (and expressly disclaims any such obligation) to update or alter its forward-looking statements whether as a result of new information, future events or otherwise.
CONTACT: Investors Relations, Lauren Glaser Of The Trout Group,
+1-415-392-3310, lglaser@troutgroup.com, For Bionovo, Inc.
Web site: http://www.bionovo.com//
