EMERYVILLE, Calif., Nov. 5 /PRNewswire-FirstCall/ -- Bionovo, Inc. , a drug discovery and development company focused on the unmet needs in women’s health and oncology, today announced third quarter highlights and financial results for the three months ended September 30, 2009.
Subsequent to the end of the quarter, in October 2009, Bionovo successfully completed a public offering and issued approximately 31 million shares of common stock together with approximately 29 million warrants. The net proceeds to the Company were approximately $17.7 million. The Company intends to use these proceeds to conduct a Phase 3 trial of Menerba, its lead product candidate for the treatment of menopausal vasomotor symptoms.
“The third quarter was an extremely productive quarter for Bionovo,” stated Isaac Cohen, Bionovo’s Chairman and Chief Executive Officer. “Not only did we publish and present a considerable amount of scientific data and make significant progress in the Menerba manufacturing and quality control process, but we also completed an important financing that sets the stage for the next chapter in the history of Bionovo. This financing provides us with the necessary funds to conclude our preparation for the FDA submission and conduct the first of two pivotal clinical trials for Menerba. This is an exciting time at Bionovo, and we eagerly anticipate the accomplishment of important milestones in the upcoming quarters.”
Third Quarter 2009 Company Highlights
Third Quarter Results
Total operating expenses for the three months ended September 30, 2009 were $3.9 million compared to $5.2 million for the same period in 2008 and $4.1 million for the second quarter of 2009. The decrease in year-over-year spending was primarily a result of a decrease in clinical activity and reduced employee headcount. Operating expenses in the third quarter of 2009 were primarily related to the Menerba manufacturing process development and commercial quality assurance procedures. Company management expects operating expenses to remain consistent through the fourth quarter at a burn rate of between $1 million and $1.5 million per month.
The Company reported a net loss for the three months ended September 30, 2009 of $3.7 million, or $0.05 per share, compared with a net loss of $5.1 million, or $0.07 per share, for the same period in 2008.
The Company commenced the quarter with $5.4 million in cash, cash equivalents and short-term investments. As of September 30, 2009, the Company had cash, cash equivalents and short-term investments of $2.3 million. In October 2009, the Company successfully completed a registered public offering of approximately 31 million shares of common stock together with approximately 29 million warrants, resulting in net proceeds to the Company of approximately $17.7 million. As of the close of the financing on October 7, 2009, the Company’s cash and cash equivalents balance stood at $19.9 million.
Conference Call
The Company will conduct a conference call and webcast to review the financial results for the third quarter of fiscal year 2009 and the Company’s plans for the remainder of the year at 4:45 p.m. ET on Thursday, November 5, 2009.
Interested parties can access the call by dialing (800) 860-2442 or (412) 858-4600, or can listen via a live Internet webcast, which can be found at http://bionovo.com/investors/events. A replay of the call will be available via webcast at http://bionovo.com/investors/events for 30 days or by playback at (877) 344-7529 or (412) 317-0088, conference code 434779, through November 9, 2009.
About Bionovo, Inc.
Bionovo, Inc. 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: Company, Tom Chesterman of Bionovo, Inc., +1-510-601-2000,
investor@bionovo.com; or Investors, Joe Diaz, Robert Blum or Joe Dorame,
All Of Lytham Partners, LLC, +1-602-889-9700, bnvi@lythampartners.com, For
Bionovo, Inc.
Web site: http://www.bionovo.com/
