Bioniche Reports Fiscal 2010 Second Quarter Results
- consolidated revenues in the quarter 62% higher than the previous year due to receipt of licensing milestone revenue -
(all figures are in Canadian dollars unless otherwise noted)
BELLEVILLE, ON,
"This was a very positive quarter for the Company, the first one in its history to show a profit," stated Graeme McRae, Chairman, President & CEO of Bioniche Life Sciences Inc. "The milestone revenue associated with the July, 2009 licensing agreement with Endo Pharmaceuticals Inc. ("Endo") for exclusive rights to develop and market Urocidin(TM) in
Urocidin(TM) is a patented intravesical formulation of Mycobacterial Cell Wall-DNA Complex (MCC) developed by Bioniche for the treatment of non-muscle-invasive bladder cancer. A U.S. Food and Drug Administration (FDA) fast tracked Phase III registration study of the product for the treatment-refractory indication is currently underway and is expected to report results later this year.
Fiscal 2010 Q2 Financial Results Highlights
Consolidated revenues for the quarter totaled
Gross profit on product sales totaled
For the quarter ended
Gross research and development (R&D) expenses in this quarter totaled
The basic and fully-diluted net gain per share for the second quarter of Fiscal 2010 was
Earnings before interest, taxes, depreciation, amortization and foreign exchange (before research and development) during the second quarter of Fiscal 2010 were
At
Long-term liabilities at
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 190 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
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 As at As at December 31, June 30, 2009 2009 (thousands of Canadian dollars) $ $ ------------------------------------------------------------------------- ASSETS Current Cash and cash equivalents 14,350 5,950 Accounts receivable 5,038 3,720 Inventories 6,563 5,408 Prepaid expenses and deposits 1,918 569 Income and other taxes recoverable 6 - Restricted cash 190 1,227 ------------------------------------------------------------------------- 28,065 16,874 ------------------------------------------------------------------------- Long-term Property, plant and equipment 10,098 9,494 Intangible assets 6,361 6,792 Goodwill 456 456 Long-term accounts receivable 1,089 1,025 ------------------------------------------------------------------------- 46,069 34,641 ------------------------------------------------------------------------- ------------------------------------------------------------------------- LIABILITIES AND SHAREHOLDERS' EQUITY Current Revolving credit facility - 4,448 Accounts payable and accrued liabilities 7,087 11,607 Income and other taxes payable - 321 Deferred government assistance 48 342 Current portion of long-term debt and obligations under capital leases 611 635 Current portion of repayable government assistance 926 - Current portion of non-refundable deferred licensing revenue 1,486 - ------------------------------------------------------------------------- 10,158 17,353 ------------------------------------------------------------------------- Long-term Long-term debt 1,016 1,149 Obligations under capital leases 1,169 1,225 Repayable government assistance 5,646 2,476 Deferred government incentives 2,729 3,335 Non-refundable deferred licensing revenue 20,096 - ------------------------------------------------------------------------- 40,814 25,538 ------------------------------------------------------------------------- Shareholders' equity Share capital 96,025 95,855 Other paid-in capital 8,649 8,540 Deficit (99,419) (95,292) ------------------------------------------------------------------------- 5,255 9,103 ------------------------------------------------------------------------- 46,069 34,641 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Bioniche Life Sciences Inc. INTERIM CONSOLIDATED STATEMENTS OF INCOME (LOSS), COMPREHENSIVE INCOME (LOSS), AND DEFICIT For the three and six months ended December 31 Current Last Year Current Last (thousands of Canadian Quarter Quarter Year to Date Year to Date dollar, except share 2009 2008 2009 2008 and per share amounts) $ $ $ $ ------------------------------------------------------------------------- REVENUE, Sales 7,029 8,551 12,935 16,595 Gain on sale of intangible assets - - 883 - Licensing 6,757 - 7,090 - ------------------------------------------------------------------------- 13,786 8,551 20,908 16,595 ------------------------------------------------------------------------- EXPENSES Cost of sales (excluding amortization) 3,294 3,463 6,065 7,213 Administration 1,646 1,579 3,431 3,098 Marketing and selling 1,469 1,755 2,950 3,425 Financial expenses 164 760 352 1,227 Amortization of property, plant and equipment 260 338 567 676 Amortization and writedown of intangible assets 189 194 431 408 Foreign exchange loss (gain) 144 (30) 264 37 ------------------------------------------------------------------------- 7,166 8,059 14,060 16,084 ------------------------------------------------------------------------- Income before research and development expenses and other items 6,620 492 6,848 511 Research and development expenses, gross 4,754 3,185 8,154 7,030 Repayable government assistance - - 3,884 - Less: government incentives, net (790) (490) (1,193) (1,006) ------------------------------------------------------------------------- Income (loss) before income taxes 2,656 (2,203) (3,997) (5,513) Provision for income taxes - 162 130 177 ------------------------------------------------------------------------- Net income (loss) and comprehensive income (loss) for the period 2,656 (2,365) (4,127) (5,690) Transition adjustment due to change in accounting policy - - - (39) Deficit, beginning of period (102,075) (88,116) (95,292) (84,752) ------------------------------------------------------------------------- Deficit, end of period (99,419) (90,481) (99,419) (90,481) ------------------------------------------------------------------------- ------------------------------------------------------------------------- Basic and diluted net income (loss) per share 0.04 (0.04) (0.06) (0.08) ------------------------------------------------------------------------- ------------------------------------------------------------------------- Weighted-average number of common shares outstanding 72,008,694 71,018,609 71,941,789 69,106,748 Weighted-average fully-diluted number of common shares 72,108,797 71,018,609 72,041,922 69,106,748 Bioniche Life Sciences Inc. INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS For the three and six months ended December 31 Current Last Year Current Last Quarter Quarter Year to Date Year to Date (thousands of Canadian 2009 2008 2009 2008 dollars) $ $ $ $ ------------------------------------------------------------------------- OPERATING ACTIVITIES Net income (loss) for the period 2,658 (2,365) (4,128) (5,690) Add (deduct) non-cash items: Amortization 449 532 946 1,084 Unrealized foreign exchange loss (gain) (1) 460 (25) 367 Change in unrealized loss on foreign currency embedded derivatives - - - 60 Accreted interest on discounted receivables and interest-free loans and amortization of financial expenses 103 597 211 947 Stock-based compensation 49 63 109 125 Employee share ownership plan 137 163 137 340 Government assistance obligation - - 3,884 - Amortization of deferred government incentive (667) - (844) - Licensing revenue (371) - (704) - Write-off of intangible assets - - 52 - Gain on sale of intangible assets - - (883) - Deemed government assistance (15) - (74) - ------------------------------------------------------------------------- 2,342 (550) (1,319) (2,767) Decrease in restricted cash 911 - 1,037 - Net change in non-cash working capital balances (1,034) 764 (6,028) 196 Net change in deferred licensing revenue - 22,286 - ------------------------------------------------------------------------- Cash provided by (used in) operating activities 2,219 214 15,976 (2,571) ------------------------------------------------------------------------- INVESTING ACTIVITIES Government incentives received on account of property, plant and equipment 51 53 51 53 Proceeds on sale of intangible assets - - 606 - Proceeds on disposal of property, plant and equipment 6 - 6 - Purchases of property, plant and equipment (1,136) (385) (1,375) (523) ------------------------------------------------------------------------- Cash used in investing activities (1,079) (332) (712) (470) ------------------------------------------------------------------------- FINANCING ACTIVITIES Proceeds from deferred government incentives - 102 - 102 Proceeds from repayable government assistance - 143 54 776 Payment of financing fees - revolving credit facility - (11) (2,117) (11) Proceeds from revolving credit facility - 8,591 - 16,976 Repayment of revolving credit facility - (7,147) (4,416) (13,266) Repayment of capital lease obligations (151) (71) (235) (130) Repayment of senior and other long-term debt (141) (138) (150) (171) ------------------------------------------------------------------------- Cash provided by (used in) financing activities (292) 1,469 (6,864) 4,276 ------------------------------------------------------------------------- Net increase in cash and cash equivalents during the period 848 1,351 8,400 1,235 Cash and cash equivalents, beginning of period 13,502 4,283 5,950 4,399 ------------------------------------------------------------------------- Cash and cash equivalents, end of period 14,350 5,634 14,350 5,634 ------------------------------------------------------------------------- -------------------------------------------------------------------------
%SEDAR: 00013159EF
For further information: For further information: Jennifer Shea, Vice-President, Communications, Investor & Government Relations, Bioniche Life Sciences Inc., Telephone: (613) 966-8058, Cell: (613) 391-2097, [email protected]; or Brian Ford, Chief Financial Officer, Bioniche Life Sciences Inc., Telephone: (613) 966-8058, Cell: (613) 242-2298, [email protected]
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