Bioniche Life Sciences Inc. Reports Fiscal 2011 Second Quarter Results

- cash for the quarter more than doubled over same period in Fiscal 2010, to $23.6 million -

(all figures are in Canadian dollars unless otherwise noted)

BELLEVILLE, ON, Feb. 10 /CNW/ - Bioniche Life Sciences Inc. (TSX & ASX: BNC), a research-based, technology-driven Canadian biopharmaceutical company, today announced financial results for the second quarter of its 2011 fiscal year (ended December 31, 2010).

"Subsequent to quarter-end - on January 27th - the Company became listed on the Australian Securities Exchange (ASX) following the successful completion of concurrent Australian and Canadian Share Offers," said Graeme McRae, Chairman, President & CEO of Bioniche Life Sciences Inc. "Between the two jurisdictions, we raised a total of $28.9 million which will facilitate the achievement of a number of corporate objectives. The ASX listing provides a higher profile and enhanced growth opportunities for the Company in both the Australian and Asian markets."

Subsequent to the ASX listing - on February 4, 2011 - investment bank Taylor Collison Limited (Australia) initiated research coverage of the Company. Healthcare and Biotechnology Analyst Thomas Duthy gave the Company a "speculative buy" recommendation with a valuation and price target of A$2.99.

Fiscal 2011 Second Quarter Financial Results Highlights

Fiscal 2011 second quarter cash and cash equivalents amounted to $23.6 million, as compared to $11 million at Fiscal 2010 year-end (June 30, 2010). This significant increase largely reflects the net proceeds of the Canadian portion of the recently completed Share Offers - $16,675,000. A further $12.2 million less expenses will be added in Q3 reflecting the early January, 2011 closing of the Australian portion of the Share Offers.

Consolidated revenues related to Bioniche Animal Health product sales for the second quarter were $6.1 million, as compared to $7.0 million in the second quarter of Fiscal 2010. Year-to-date revenue from product sales amounts to $12.8 million, compared to $12.9 million year-to-date in Fiscal 2010. Research collaborations and licensing revenue in Q2, Fiscal 2011 brought total revenue for the quarter to $11.4 million, compared to $13.8 million in the same period last year. Licensing revenue reflects the amortization of the up-front payment from Endo Pharmaceuticals Inc. upon signing of the UrocidinTM license, development and supply agreement. The total up-front payment received, C$22.3 million (non-refundable), is being recognized over 15 years, which is the term over which the Company maintains substantive contractual obligations (per Canadian Generally Accepted Accounting Principles - GAAP).

The Company is undergoing a period of intensive investment in the Animal Health & Food Safety Vaccine Manufacturing Centre under construction at its Belleville, Ontario corporate headquarters. This investment is reflected in the long-term corporate assets under Property, Plant and Equipment, which totals $23.2 million at the end of Q2. The new facility is being funded through a consortium of government and quasi-government repayable long-term loans. The Company is required to expend resources, after which, reimbursement for eligible expenditures is provided by the lenders.

Research and development expenditures in the second quarter of Fiscal 2011 totalled $4.8 million, a 1.2% increase over the same period in Fiscal 2010. The R&D expenditures related to the Company's portion of the ongoing UrocidinTM clinical development program, as well as development programs in Animal Health and Food Safety.

Administration expenses grew in Q2, Fiscal 2011 to $3.6 million from $1.6 million in the same period in Fiscal 2010. The increase is mainly attributable to the establishment of a retirement benefit plan.

The basic and fully-diluted net loss per share for the second quarter of Fiscal 2011 was ($0.04) compared to a gain per share of $0.04 in the same quarter in Fiscal 2010 reflecting license revenues for that period. Total Common Shares outstanding at December 31, 2010 were 81,897,104, as compared to 72,008,694 for the corresponding period in Fiscal 2010.

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 218 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. 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 annual reporting.

    <<

    Bioniche Life Sciences Inc.
    Amalgamated under the laws of Ontario

                     INTERIM CONSOLIDATED BALANCE SHEETS
                                 (Unaudited)
                                                            As at      As at
                                                      December 31,   June 30,
                                                             2010       2010
    (thousands of Canadian dollars)                             $          $
    -------------------------------------------------------------------------
    ASSETS
    Current
    Cash and cash equivalents                              23,586     11,070
    Accounts receivable                                     4,858      8,601
    Income taxes receivable                                   119         63
    Future income tax assets                                   71        197
    Inventories                                             8,092      6,668
    Prepaid expenses, deposits and other                    1,984        793
    -------------------------------------------------------------------------
                                                           38,710     27,392
    -------------------------------------------------------------------------
    Long-term
    Property, plant and equipment                          23,150     16,584
    Intangible assets                                       6,479      6,500
    Goodwill                                                  456        456
    Long-term accounts receivable                           1,750      1,156
    Future income tax assets                                   33         51
    -------------------------------------------------------------------------
                                                           70,578     52,139
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    LIABILITIES AND SHAREHOLDERS' EQUITY
    Current
    Accounts payable and accrued liabilities               11,360      9,716
    Deferred government incentives                            744          -
    Current portion of long-term debt and obligations
     under capital leases                                     527        256
    Current portion of repayable government assistance      1,886        960
    Current portion of non-refundable
           deferred licensing revenue                       1,486      1,486
    -------------------------------------------------------------------------
                                                           16,003     12,418
    -------------------------------------------------------------------------
    Long-term
    Accrued pension liability                               1,934          -
    Long-term debt                                          1,722      1,341
    Obligations under capital leases                        1,131      1,184
    Repayable government assistance                        11,806      6,965
    Deferred government incentives                            479      2,382
    Non-refundable deferred licensing revenue              18,610     19,353
    -------------------------------------------------------------------------
                                                           51,685     43,643
    -------------------------------------------------------------------------
    Shareholders' equity
    Share capital                                         112,800     96,677
    Other paid-in capital                                   8,593      8,700
    Deficit                                              (102,500)   (96,881)
    -------------------------------------------------------------------------
                                                           18,893      8,496
    -------------------------------------------------------------------------
                                                           70,578     52,139

    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



    Bioniche Life Sciences Inc.

                  INTERIM CONSOLIDATED STATEMENTS OF (LOSS)
                  INCOME, COMPREHENSIVE (LOSS) INCOME, AND
                                   DEFICIT
                                 (Unaudited)

    For the three and six months ended December 31

                                                          Current       Last
                                    Current  Last Year    Year to    Year to
    (thousands of Canadian dollars, Quarter    Quarter       Date       Date
     except share and per share        2010       2009       2010       2009
     amounts)                             $          $          $          $
    -------------------------------------------------------------------------

    REVENUES
    Sales                             6,110      7,029     12,802     12,935
    Research collaborations             854          -      1,644          -
    Gain on disposal of intangible
     assets                               -          -          -        883
    Licensing                         4,417      6,757      4,789      7,090
    -------------------------------------------------------------------------
                                     11,381     13,786     19,235     20,908
    -------------------------------------------------------------------------

    EXPENSES
    Cost of sales (excluding
     amortization)                    2,873      3,294      6,040      6,065
    Administration                    3,616      1,646      5,516      3,431
    Marketing and selling             1,878      1,469      3,395      2,950
    Financial expenses                  233        164        386        352
    Amortization of property,
     plant and equipment                253        260        491        567
    Amortization and write-down of
     intangible assets                  208        189        407        431
    Foreign exchange loss               150        144        257        264
    -------------------------------------------------------------------------
                                      9,211      7,166     16,492     14,060
    -------------------------------------------------------------------------
    Income before research and
     development expenses             2,170      6,620      2,743      6,848
       and other items
    Research and development
     expenses, gross                  4,809      4,754      9,250      8,154
    Repayable government assistance       -          -          -      3,884
    Less: government incentives,
     net                               (530)      (790)    (1,034)    (1,193)
    -------------------------------------------------------------------------
    (Loss) income before income
     taxes                           (2,109)     2,656     (5,473)    (3,997)
    Provision for income tax
     expense                              -          -        129        130
    -------------------------------------------------------------------------
    Net (loss) income and
     comprehensive (loss)
     income for the period           (2,109)     2,656     (5,602)    (4,127)
    Deficit, beginning of period   (100,391)  (102,075)   (96,881)   (95,292)
    Premium on share redemption           -          -        (17)         -
    -------------------------------------------------------------------------
    Deficit, end of period         (102,500)   (99,419)  (102,500)   (99,419)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Basic and diluted net (loss)
     income per share                 (0.03)      0.04      (0.07)     (0.06)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Weighted-average number of
     common shares outstanding   81,897,104 72,008,694 77,466,755 71,941,789



    Bioniche Life Sciences Inc.

                       INTERIM CONSOLIDATED STATEMENTS
                                OF CASH FLOWS
                                 (Unaudited)

    For the three and six months ended December 31

                                                          Current       Last
                                    Current  Last Year    Year to    Year to
                                    Quarter    Quarter       Date       Date
                                       2010       2009       2010       2009
    (thousands of Canadian dollars)       $          $          $          $
    -------------------------------------------------------------------------
    OPERATING ACTIVITIES
    Net income (loss) for the
     period                          (2,109)     2,656     (5,602)    (4,127)
    Add (deduct) non-cash items:
      Amortization                      461        449        898        946
      Unrealized foreign exchange
       loss (gain)                       21          1         62        (26)
      Accreted interest on
       discounted receivables and
       interest-free loans and
       amortization of financial
       expenses                         164        103        262        211
      Stock-based compensation
       expense                           75         49        137        109
      Employee share ownership plan     213        137        407        137
      Accrued pension expense         1,934          -      1,934          -
      Warrants issued to consultants      -          -          1          -
      Repayable government assistance     -          -          -      3,884
      Amortization of deferred
       government incentives         (1,183)      (667)    (1,472)      (844)
      Licensing revenue                (371)      (371)      (743)      (704)
      Write-down of intangible
       assets                             -          -          -         52
      Future income taxes                 -          -        129          -
      Gain on sale of intangible
       assets                             -          -          -       (883)
      Deemed government assistance      (16)       (15)       (31)       (74)
    -------------------------------------------------------------------------
                                       (811)     2,342     (4,018)    (1,319)
    Decrease in restricted cash           -        911          -      1,037
    Net change in non-cash working
     capital balances                 3,908     (1,034)     3,556     (6,028)
    Net change in non-refundable
     deferred licensing revenue           -          -          -     22,286
    -------------------------------------------------------------------------
    Cash provided by (used in)
     operating activities             3,097      2,219       (462)    15,976
    -------------------------------------------------------------------------
    INVESTING ACTIVITIES
    Proceeds on settlement of
     long-term accounts receivable        -          -        100          -
    Government incentives received
     on account of property, plant
     and equipment                      352         51      1,496         51
    Proceeds on sale of intangible
     assets                               -          -          -        606
    Purchase of intangible assets      (213)         -       (386)         -
    Procceds on disposal of property,
     plant and equipment                  6          6          6          6
    Purchases of property, plant and
     equipment                       (5,398)    (1,136)   (11,558)    (1,375)
    -------------------------------------------------------------------------
    Cash used in investing
     activities                      (5,253)    (1,079)   (10,342)      (712)
    -------------------------------------------------------------------------
    FINANCING ACTIVITIES
    Proceeds from deferred
     government incentives              340          -        690          -
    Proceeds from government
     assistance                       3,848          -      7,574         54
    Proceeds from long-term debt        500          -        500          -
    Proceeds from exercise of stock
     options                             57          -        184          -
    Proceeds from exercise of
     warrants                           302          -        302          -
    Proceeds from shares issued      16,675          -     16,675          -
    Redemption of common shares           -          -       (173)         -
    Payment of share issuance costs  (2,198)         -     (2,198)         -
    Payment of financing fees - debt      -          -          -     (2,117)
    Repayment of revolving credit
     facility                             -          -          -     (4,416)
    Repayment of capital lease
     obligations                       (130)      (151)      (228)      (235)
    Repayment of long-term debt           3       (141)        (6)      (150)
    -------------------------------------------------------------------------
    Cash provided by (used in)
     financing activities            19,397       (292)    23,320     (6,864)
    -------------------------------------------------------------------------
    Net increase in cash and cash
     equivalents during the period   17,241        848     12,516      8,400
    Cash and cash equivalents,
     beginning of period              6,345     13,502     11,070      5,950
    -------------------------------------------------------------------------
    Cash and cash equivalents,
     end of period                   23,586     14,350     23,586     14,350
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    >>

SOURCE Bioniche Life Sciences Inc.

For further information: Jennifer Shea, Vice-President, Communications, Investor & Government Relations, Bioniche Life Sciences Inc., Telephone: (613) 966-8058 ext. 1250, Cell: (613) 391-2097, Jennifer.Shea@Bioniche.com

Profil de l'entreprise

Bioniche Life Sciences Inc.

Renseignements sur cet organisme


FORFAITS PERSONNALISÉS

Jetez un coup d’œil sur nos forfaits personnalisés ou créez le vôtre selon vos besoins de communication particuliers.

Commencez dès aujourd'hui .

ADHÉSION À CNW

Remplissez un formulaire d'adhésion à CNW ou communiquez avec nous au 1-877-269-7890.

RENSEIGNEZ-VOUS SUR LES SERVICES DE CNW

Demandez plus d'informations sur les produits et services de CNW ou communiquez avec nous au 1‑877-269-7890.