BELLEVILLE, ON, March 29 /CNW/ - Bioniche Life Sciences Inc. (TSX: BNC),
a research-based, technology-driven Canadian biopharmaceutical company, today
announced that it has reached an agreement with Technology Partnerships Canada
(TPC) to amend the existing contribution agreement in support of the Company's
Mycobacterial Cell Wall-DNA Complex (MCC) research project.
The amendments to the agreement include the following provisions,
reflective of the evolution of the project and to the satisfaction of both
- The anticipated completion date for the project is being extended to
September 30, 2011 from June 30, 2006.
- An obligation to issue a significant number of share purchase
warrants to TPC has been eliminated from the agreement. As a result,
the Company will also remove an amount of $1,200,000 from "Other
paid-in capital" in its financial statements.
- In exchange, the Company has agreed to an acceleration of its
(capped) royalty obligations and to certain cash milestone payments.
- The original royalty cap of $11.3 million will be retained, but
payments to the cap level will be made at a rate of 6% of product
revenues, instead of 1.9%. The Company currently expects such
payments to be made between 2010 and 2015.
- On a partnership agreement or upon regulatory approval for
commercialization, but commencing no earlier than June 2010, the
Company will pay TPC $960,000 per year for five years.
"We appreciate the flexibility of TPC in granting these amendments," said
Mr. Graeme McRae, President & CEO of Bioniche Life Sciences Inc. "The
replacement of the warrants with an annual cash payment is particularly
helpful, in that it allows the Company to avoid the dilution that would have
been experienced with the exercise of the warrants."
The Company was originally awarded two contribution agreements
(conditionally repayable contribution) with TPC in 2001, for:
1. Projects relating to the Company's proprietary Mycobacterial Cell
Wall technologies. TPC has agreed to contribute C$9.6 million to this
project. This is the project that is now amended.
2. The development and commercialization of an E. coli O157:H7 vaccine.
TPC has agreed to contribute C$7.6 million to this project.
"The TPC combined funding has been a great help to Bioniche in its
efforts to complete both of these important projects," added Mr. McRae. "TPC's
support has enabled us to realize the potential of these human and animal
health discoveries and to achieve the best possible results for all
A significant benefit to this funding from the federal government is that
it has allowed us to keep these innovative, made-in-Canada projects in the
country, utilizing Canadian resources. With the MCC project, we have now
entered our U.S. Food and Drug Administration (FDA) and Health Canada-approved
Phase III clinical program testing the technology - trademarked Urocidin - in
bladder cancer patients. With the E. coli O157:H7 cattle vaccine project, we
recently received authorization from the Canadian Food Inspection Agency
(CFIA) to distribute the vaccine to Canadian veterinarians under a Permit to
Release Veterinary Biologics as specified in the Canadian Health of Animal
Regulations. We are now scaling up production of this vaccine at our
Belleville, Ontario facility."
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
185 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.
For further information:
For further information: Jennifer Shea, Corporate Communications &
Investor Relations Manager, Bioniche Life Sciences Inc., Telephone: (613)
966-8058, Cell: (613) 391-2097, Jennifer.Shea@Bioniche.com