Bioniche Reports Fiscal 2009 Third Quarter



    
    - year-to-date revenues increase by 23% over same period in Fiscal 2008 -

    (all figures are in Canadian dollars unless otherwise noted)
    

    BELLEVILLE, ON, May 6 /CNW/ - Bioniche Life Sciences Inc. (TSX: BNC), a
research-based, technology-driven Canadian biopharmaceutical company, today
announced financial results for the third quarter of its 2009 fiscal year,
ending March 31, 2009.
    "The year-to-date revenue growth of 23% percent in our Bioniche Animal
Health business unit is very impressive in our current economic climate," said
Graeme McRae, Chairman, President & CEO of Bioniche Life Sciences Inc. "This
base business has supported the Company's research and development efforts for
30 years, and continues to do so."
    The Company is currently pursuing several financing alternatives
including issuing additional debt, preferred or common equity, finding
strategic financing partners and/or asset or segment dispositions, as a result
of near-term liquidity requirements, the delays in completing a partnership
deal to support its Phase III development program for Urocidin(TM) and
finalizing the replacement of its existing revolving credit facility. Based on
the current estimated cash requirements, there remains an immediate need to
obtain additional financial resources before year-end.

    Highlights of Financial Results - Q3 and Year-to-Date

    For the three-month and nine-month periods ended March 31, 2009,
consolidated revenues totaled $7.4 million and $24.1 million respectively,
compared to $7.2 million and $19.6 million for the corresponding periods in
Fiscal 2008. The increase in sales in the current quarter and year-to-date
involved a variety of animal health product lines, including Folltropin(R)-V,
Cue-mate(TM), Pregnecol and embryo transfer products where promotional efforts
contributed to increased sales across numerous geographic locations.
    For the three-month and nine-month periods ended March 31, 2009, gross
profit as a percentage of sales totaled 55.8% and 56.9% respectively, compared
to 57.8% and 58.2% for the corresponding periods in Fiscal 2008.
    For the three-month and nine-month periods ended March 31, 2009, expenses
before research and development totaled $4.1 million and $13.1 million
respectively, compared to $4.3 million and $13.1 million for the corresponding
periods in Fiscal 2008.
    Expenses for the three-month and nine-month periods ended March 31, 2009
remained relatively constant. Expense activity in the current quarter and
year-to-date reflects stable marketing and selling costs to support increased
sales activity.
    Overall administration expenses have decreased, reflecting the Company's
cost control measures introduced this fiscal year. This is offset by increased
amortization of deferred financing and increased interest costs.
    For the three-month and nine-month periods ended March 31, 2009, overall
gross research and development expenses totaled $3.6 million and $10.6 million
respectively, compared to $4.4 million and $11.6 million for the corresponding
periods in Fiscal 2008. The majority of these costs can be attributed to the
ongoing Phase III clinical program for the company's Urocidin(TM) bladder
cancer treatment and the E. coli O157 cattle vaccine development program.
    For the three-month and nine-month periods ended March 31, 2009, basic
and fully-diluted loss per share totaled ($0.04) and ($0.13) respectively,
compared to losses of ($0.07) and ($0.20) for the corresponding periods in
Fiscal 2008. Total shares outstanding at March 31, 2009 were 71,532,411, as
compared to 65,564,779 at March 31, 2008.

    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
200 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. Bioniche has been named one of the Top 50 Best Small and
Medium-Sized Employers in Canada for 2009. 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 - see going concern uncertainty)

                                                          As at        As at
                                                       March 31,     June 30,
                                                           2009         2008
                                                              $            $
    -------------------------------------------------------------------------

    ASSETS
    Current
    Cash and cash equivalents                         2,899,383    4,399,065
    Accounts receivable                               6,220,576    6,443,299
    Inventories                                       6,606,727    4,738,765
    Prepaid expenses and deposits                       704,215      640,326
    Foreign currency embedded derivatives                     -       59,693
    -------------------------------------------------------------------------
                                                     16,430,901   16,281,148
    -------------------------------------------------------------------------
    Long-term
    Restricted cash                                   1,440,215            -
    Property, plant and equipment                     9,481,151    9,718,157
    Intangible assets                                 7,081,058    7,688,698
    Goodwill                                            456,155      456,155
    Long-term accounts receivable                       989,947      478,852
    -------------------------------------------------------------------------
                                                     35,879,427   34,623,010
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    LIABILITIES AND SHAREHOLDERS' EQUITY
    Current
    Revolving credit facility                         5,412,952    2,593,059
    Accounts payable and accrued liabilities         10,516,416    8,341,398
    Income taxes payable                                126,265      104,592
    Deferred government assistance                      323,327            -
    Current portion of long-term debt and
     obligations under capital leases                   884,034      706,505
    -------------------------------------------------------------------------
                                                     17,262,994   11,745,554
    -------------------------------------------------------------------------
    Long-term
    Long-term debt                                    1,212,536    1,673,853
    Obligations under capital leases                  1,035,850    1,176,237
    Government assistance loans                       2,394,244            -
    Deferred government incentives                    3,493,662    3,606,926
    -------------------------------------------------------------------------
                                                     25,399,286   18,202,570
    -------------------------------------------------------------------------
    Shareholders' equity
    Share capital                                    95,536,860   92,941,966
    Special warrants                                  2,174,008    2,174,008
    Other paid-in capital                             6,303,091    6,056,115
    Deficit                                         (93,533,818) (84,751,649)
    -------------------------------------------------------------------------
                                                     10,480,141   16,420,440
    -------------------------------------------------------------------------
                                                     35,879,427   34,623,010
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    Bioniche Life Sciences Inc.

             INTERIM CONSOLIDATED STATEMENTS OF LOSS, DEFICIT AND
                             COMPREHENSIVE LOSS
                 (Unaudited - see going concern uncertainty)

    For the three and nine months ended March 31


                              Current    Last Year      Current         Last
                              Quarter      Quarter Year to Date Year to Date
                                 2009         2008         2009         2008
                                    $            $            $            $
    -------------------------------------------------------------------------

    REVENUE
    Sales                   7,405,145    7,185,970   24,117,081   19,605,015
    Cost of sales
     (excluding
     amortization)          3,271,345    3,033,310   10,398,582    8,199,792
    -------------------------------------------------------------------------
                            4,133,800    4,152,660   13,718,499   11,405,223
    -------------------------------------------------------------------------

    EXPENSES
    Administration          1,614,154    1,609,317    4,711,532    5,212,451
    Marketing and selling   1,413,356    1,734,872    5,040,758    5,104,963
    Quality assurance               -      202,946            -      573,730
    Interest on long-term
     debt                      80,234       36,748      249,468      110,678
    Other interest, net       126,261       27,120      237,774      (57,226)
    Accreted interest on
     discounted receivables
     and interest free loans   (5,636)           -      (19,542)           -
    Amortization of property,
     plant and equipment      332,926      308,125    1,009,372      872,287
    Amortization of
     intangible assets        199,280      214,130      607,640      642,387
    Amortization of
     financing expenses       310,445      283,608    1,270,698      436,415
    Foreign exchange loss
     (gain)                    35,137      (71,387)      12,228      245,128
    -------------------------------------------------------------------------
                            4,106,157    4,345,479   13,119,928   13,140,813
    -------------------------------------------------------------------------
    Income (loss) before
     research and
     development expenses
    and other items            27,643     (192,819)     598,571   (1,735,590)
    Research and
     development expenses,
     gross                  3,565,505    4,416,249   10,595,782   11,646,663
    Less: government
     incentives              (423,638)    (250,659)  (1,429,886)    (969,242)
    Change in unrealized
     loss on foreign
     currency embedded
     derivatives                    -      191,096       59,693       52,893
    -------------------------------------------------------------------------
    Loss before income
     taxes                 (3,114,224)  (4,549,505)  (8,627,018) (12,465,904)
    Provision for
     (recovery of) income
     taxes                    (61,277)      92,805      115,801      206,329
    -------------------------------------------------------------------------
    Net loss and
     comprehensive loss
     for the period        (3,052,947)  (4,642,310)  (8,742,819) (12,672,233)
    Transition adjustment
     due to change in
     accounting policy              -            -      (39,350)     134,674
    Deficit, beginning
     of period            (90,480,871) (76,525,864) (84,751,649) (68,630,615)
    -------------------------------------------------------------------------
    Deficit, end of
     period               (93,533,818) (81,168,174) (93,533,818) (81,168,174)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Basic and diluted
     net loss per share         (0.04)       (0.07)       (0.13)       (0.20)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Weighted-average
     number of common
     shares outstanding    71,411,362   62,791,700   69,863,738   62,246,607



    Bioniche Life Sciences Inc.

                       INTERIM CONSOLIDATED STATEMENTS
                                OF CASH FLOWS
                 (Unaudited - see going concern uncertainty)

    For the three and nine months ended March 31

                              Current    Last Year      Current         Last
                              Quarter      Quarter Year to Date Year to Date
                                 2009         2008         2009         2008
                                    $            $            $            $
    -------------------------------------------------------------------------

    OPERATING ACTIVITIES
    Net loss for the
     period                (3,052,947)  (4,642,310)  (8,742,819) (12,672,233)
    Add (deduct)
     non-cash items:
      Amortization            842,651      805,863    2,887,710    1,951,089
      Amortization of
       deferred government
       incentives            (140,113)           -     (140,113)           -
      Unrealized foreign
       exchange loss          233,454      231,039      599,728      177,593
      Change in unrealized
       loss on foreign
       currency embedded
       derivatives                  -      191,096       59,693       52,893
      Accreted interest on
       discounted receivables
       and interest free
       loans                   (5,636)           -      (19,542)           -
      Stock-based
       compensation            59,818      221,304      184,962      653,715
      Warrants issued to
       consultants                  -            -          700            -
      Employee share
       ownership plan         166,135      188,061      506,333      499,383
    -------------------------------------------------------------------------
                           (1,896,638)  (3,004,947)  (4,663,348)  (9,337,560)
    Net change in non-cash
     working capital
     balances                (783,233)   1,103,295     (587,231)     272,530
    -------------------------------------------------------------------------
    Cash used in operating
     activities            (2,679,871)  (1,901,652)  (5,250,579)  (9,065,030)
    -------------------------------------------------------------------------

    INVESTING ACTIVITIES
    Proceeds from maturity
     of short-term
     investments                    -            -            -    9,500,000
    Increase in restricted
     cash                  (1,440,215)           -   (1,440,215)           -
    Government incentives
     received on account
     of property, plant
     and equipment              7,227            -       60,301        4,641
    Purchases of property,
     plant and equipment     (152,361)    (274,257)    (674,939)    (546,654)
    -------------------------------------------------------------------------
    Cash provided by
     (used in) investing
     activities            (1,585,349)    (274,257)  (2,054,853)   8,957,987
    -------------------------------------------------------------------------

    FINANCING ACTIVITIES
    Proceeds from deferred
     government incentives    332,098            -      434,499       49,965
    Proceeds from
     government assistance  1,597,071            -    2,373,502            -
    Proceeds from term note         -    1,750,000            -    1,750,000
    Payment of financing
     fees - debt                    -      (43,000)     (11,036)     (43,000)
    Proceeds from revolving
     credit facility        6,200,599    8,500,864   23,176,609   21,952,839
    Repayment of revolving
     credit facility       (6,361,105)  (5,838,724) (19,627,501) (16,219,244)
    Repayment of capital
     lease obligations        (99,942)     (20,663)    (229,967)     (84,986)
    Repayment of senior
     and other long-term
     debt                    (139,367)      (5,140)    (310,356)     (14,752)
    -------------------------------------------------------------------------
    Cash provided by
     financing activities   1,529,354    4,343,337    5,805,750    7,390,822
    -------------------------------------------------------------------------

    Net increase (decrease)
     in cash and cash
     equivalents during
     the period            (2,735,866)   2,167,428   (1,499,682)   7,283,779
    Cash and cash
     equivalents,
     beginning of period    5,635,249    6,639,948    4,399,065    1,523,597
    -------------------------------------------------------------------------
    Cash and cash
     equivalents,
     end of period          2,899,383    8,807,376    2,899,383    8,807,376
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    %SEDAR: 00013159EF




For further information:

For further information: Patrick Montpetit, CA, Vice-President and Chief
Financial Officer, Bioniche Life Sciences Inc., Telephone: (514) 697-6636,
Patrick.Montpetit@Bioniche.com; Jennifer Shea, Vice-President, Communications,
Investor & Government Relations, Bioniche Life Sciences Inc., Telephone: (613)
966-8058, Cell: (613) 391-2097, Jennifer.Shea@Bioniche.com

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