BELLEVILLE, ON, Sept. 22, 2011 /CNW/ - Bioniche Life Sciences Inc. (TSX:
BNC) (ASX: BNC), a research-based, technology-driven Canadian
biopharmaceutical company, provided shareholders with a corporate
update on a conference call/web cast last evening. The purpose of the
call was to discuss the Company's year-end financial results, specify
its priorities and outline its plan to achieve profitability.
The financial results for the Company's 2011 fiscal year were released
on September 14, 2011. The results showed an increase in both
administrative and research and development expenditures, with a
decrease in overall revenues due to a reduction in milestone revenues
from the Company's human health development partner. The corporate burn
rate (cash used in operations) was approximately $1 million per month
in Fiscal 2011. The Company had $16.8 million in cash, cash equivalents
and short-term investments at June 30, 2011.
Bioniche intends for its current cash resources to support operations
until it achieves positive cash flow from operations. To manage cash
flow through the commercialization of its late-stage development
projects, Bioniche has imposed a series of spending restrictions. Such
restrictions include, but are not limited to, a hiring freeze and
material expenditure reductions for all departments.
Beyond such immediate measures, the major objective of reducing the
corporate burn rate (cash used in operations will be achieved in three
Increasing revenues from Animal Health product sales, with a focus on
launching new products from the Company's internal development pipeline
(for example, a canine oncology product that is based on the Company's
Mycobacterial Cell Wall-DNA Complex (MCC) technology; MCC is currently
in Phase III clinical testing for BCG-refractory, non-muscle-invasive
human bladder cancer) .
Increasing Animal Health profits, by focusing on high margin products.
Reducing overheads as some of the Company's late-stage research projects
mature. Late-stage research is more costly and, as products come to
market, the research and development activity related to those products
"Our goal is to progressively reduce the burn rate from the current $1
million per month through the remainder of Fiscal 2012," said Graeme
McRae, Chairman, President & CEO of Bioniche Life Sciences Inc. "In
Fiscal 2013, our goal is to eliminate our burn rate altogether and show
sustained profitability by the end of that year."
During the conference call/web cast, the Company also provided an update
on its three divisions, including the Food Safety division, where work
continues toward a U.S. conditional license for its EconicheTM E. coli O157 cattle vaccine from the U.S. Department of Agriculture (USDA). It is not clear
when this license could be issued, but the Company notes that over half
of the beef products sold in the U.S. are branded products and it has
seen significant interest from within specific brands in the U.S. to
implement vaccination as a risk reduction strategy once the Company's
vaccine is conditionally licensed.
Meanwhile, the Company continues to very closely monitor Canadian and
international opportunities for government mandating of E. coli O157 vaccination. The Company has been in contact with government
and/or industry leaders in North America, Europe (specifically Sweden
and the UK), Australia and New Zealand.
The new Animal Health and Food Safety Vaccine Manufacturing Centre at
Company headquarters in Belleville, Ontario has been undergoing
commissioning and validation. This is a complicated and lengthy process
that is expected to continue until early 2012, after which production
scale-up will occur. In terms of plant utilization, the Centre is
capable of manufacturing other biologics and there are both
Bioniche-developed and contract manufactured vaccine options for
consideration. Canada imports in excess of $125 million dollars of
Veterinary Biologics from the U.S. annually, representing a risk in the
event that the supply chain becomes disrupted. The new Centre could be
made available for the production of a variety of vaccines as national
Conference Call/Web Cast Replay
A replay of the conference call will be available until September 28,
2011 at midnight by calling 1-855-859-2056 (passcode: 10564534#). The
web cast will be available for replay until September 20, 2012 via this
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. 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
SOURCE Bioniche Life Sciences Inc.
For further information:
Jennifer Shea, Vice-President, Communications, Investor & Government Relations
Bioniche Life Sciences Inc.
Telephone: (613) 966-8058; from Australia: 0011 1 613-966-8058
Cell: (613) 391-2097; from Australia: 0011 1 613-391-2097