Bioniche Reports Fiscal 2011 First Quarter Results
- revenues from product sales increase; loss per share improves over the same period in Fiscal 2010 -
(all figures are in Canadian dollars unless otherwise noted)
BELLEVILLE, ON, Nov. 10 /PRNewswire-FirstCall/ - Bioniche Life Sciences Inc. (TSX: BNC), a research-based, technology-driven Canadian biopharmaceutical company, today announced financial results for the first quarter of its 2011 fiscal year (ended September 30, 2010).
"I'm pleased with the Company's performance in the first quarter of Fiscal 2011," said Graeme McRae, Chairman, President & CEO of Bioniche Life Sciences Inc. "We are progressing well with the construction of our world class Animal Health and Food Safety Vaccine Manufacturing Centre, while maintaining an active Animal Health and Food Safety business and considering new opportunities for our core Mycobacterial Cell Wall-DNA Complex (MCC) in Human Health."
Fiscal 2011 First Quarter Financial Results Highlights
Consolidated revenues related to Bioniche Animal Health product sales for the first quarter were $6.7 million, as compared to $5.9 million in the first quarter of Fiscal 2010. Research collaborations and licensing revenue in Q1, Fiscal 2011 brought total revenue for the quarter to $7.9 million, compared to $7.1 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), will be recognized over 15 years, which is the term over which the Company maintains substantive contractual obligations. (per Canadian Generally Accepted Accounting Principles - GAAP).
Fiscal 2011 first quarter cash and cash equivalents amounted to $6.3 million, as compared to $11 million at Fiscal 2010 year-end (June 30, 2010). This decrease in cash relates to an intensive investment in the Animal Health & Food Safety Vaccine Manufacturing Centre under construction at the Company's Belleville, Ontario corporate headquarters. This 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 increased in the first quarter of Fiscal 2011 by $1 million over the same period in Fiscal 2010. This increase relates to ongoing expenditures for the UrocidinTM clinical development program, as well as development programs in Animal Health. The majority of research and development costs can be attributed to the ongoing Phase III clinical program for the Company's UrocidinTM bladder cancer treatment and to an increased focus on the development of Animal Health reproduction products and vaccines. Starting in February, 2010, Endo assumed financial responsibility for the external costs of clinical activities as they relate to UrocidinTM, and the Company is refocusing its development activities toward MCC for other indications.
The basic and fully-diluted net loss per share for the first quarter of Fiscal 2011 was ($0.05) compared to a net loss per share of ($0.09) in the same quarter in Fiscal 2010. Total common shares outstanding at September 30, 2010 were 80,499,679, as compared to 71,959,642 for the corresponding period in Fiscal 2010.
2010 Annual Meeting of Shareholders
At the Annual Meeting of Shareholders held yesterday afternoon in Belleville, Ontario, shareholders voted to elect the following individuals as members of the Board of Directors:
- Dr. Stanley Alkemade
- Albert Beraldo
- Dr. Margaret Cunningham
- Dr. James Johnson
- Graeme McRae
- Nick Photiades
- Lyle Vanclief
Dr. Armen Aprikian remains an Observer on the Board. Also at yesterday's meeting, the shareholders voted to appoint Ernst & Young, LLP, Chartered Accountants, as auditors of the Corporation.
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 214 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]
| (thousands of Canadian dollars) |
As at September 30, 2010 $ |
As at June 30, 2010 $ |
|
| ASSETS | |||
| Current | |||
| Cash and cash equivalents | 6,345 | 11,070 | |
| Accounts receivable | 7,497 | 8,601 | |
| Income taxes receivable | 57 | 63 | |
| Future income tax assets | 77 | 197 | |
| Inventories | 7,671 | 6,668 | |
| Prepaid expenses and deposits | 706 | 793 | |
| 22,353 | 27,392 | ||
| Long-term | |||
| Property, plant and equipment | 20,135 | 16,584 | |
| Intangible assets | 6,475 | 6,500 | |
| Goodwill | 456 | 456 | |
| Long-term accounts receivable | 1,092 | 1,156 | |
| Future income tax assets | 34 | 51 | |
| 50,545 | 52,139 | ||
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||
| Current | |||
| Accounts payable and accrued liabilities | 8,808 | 9,716 | |
| Current portion of long-term debt and obligations under capital leases | 440 | 256 | |
| Current portion of repayable government assistance | 1,870 | 960 | |
| Current portion of non-refundable deferred licensing revenue | 1,486 | 1,486 | |
| 12,604 | 12,418 | ||
| Long-term | |||
| Long-term debt | 1,297 | 1,341 | |
| Obligations under capital leases | 1,190 | 1,184 | |
| Repayable government assistance | 8,827 | 6,965 | |
| Deferred government incentives | 2,434 | 2,382 | |
| Non-refundable deferred licensing revenue | 18,981 | 19,353 | |
| 45,333 | 43,643 | ||
| Shareholders' equity | |||
| Share capital | 96,880 | 96,677 | |
| Other paid-in capital | 8,723 | 8,700 | |
| Deficit | (100,391) | (96,881) | |
| 5,212 | 8,496 | ||
| 50,545 | 52,139 |
||
Bioniche Life Sciences Inc.
INTERIM CONSOLIDATED STATEMENTS OF LOSS,
COMPREHENSIVE LOSS, AND DEFICIT
[Unaudited]
For the three months ended September 30
| 2010 | 2009 | ||
| (thousands of Canadian dollars, except share and per share amounts) | $ | $ | |
| REVENUES | |||
| Sales | 6,692 | 5,906 | |
| Research collaborations | 790 | — | |
| Licensing | 372 | 333 | |
| Gain on sale of intangible assets | — | 883 | |
| 7,854 | 7,122 | ||
| EXPENSES | |||
| Cost of sales (excluding amortization) | 3,167 | 2,707 | |
| Administration | 1,900 | 1,785 | |
| Marketing and selling | 1,517 | 1,481 | |
| Financial expenses | 153 | 188 | |
| Amortization of property, plant and equipment | 238 | 307 | |
| Amortization and write-down of intangible assets | 199 | 241 | |
| Foreign exchange loss | 107 | 121 | |
| 7,281 | 6,830 | ||
| Income before research and development expenses and other items | 573 | 292 | |
| Research and development expenses, gross | 4,441 | 3,465 | |
| Repayable government assistance | — | 3,884 | |
| Less: government assistance, net | (504) | (403) | |
| Loss before income taxes | (3,364) | (6,654) | |
| Provision for income taxes | 129 | 130 | |
| Net loss and comprehensive loss for the period | (3,493) | (6,784) | |
| Deficit, beginning of period | (96,881) | (95,291) | |
| Premium on share redemption | (17) | — | |
| Deficit, end of period | (100,391) | (102,075) | |
| Basic and diluted net loss per share | (0.05) | (0.09) |
|
| Weighted-average number of common shares outstanding | 73,036,406 | 71,874,883 | |
Bioniche Life Sciences Inc.
INTERIM CONSOLIDATED STATEMENTS
OF CASH FLOWS
[Unaudited]
For the three months ended September 30
| 2010 | 2009 | ||
| (thousands of Canadian dollars) | $ | $ | |
| OPERATING ACTIVITIES | |||
| Net loss for the period | (3,493) | (6,784) | |
| Add (deduct) non cash items: | |||
| Amortization | 437 | 502 | |
| Unrealized foreign exchange loss (gain) | 42 | (24) | |
| Accreted interest on discounted receivables and interest free loans | 98 | 102 | |
| Stock-based compensation | 62 | 60 | |
| Employee share ownership plan | 194 | — | |
| Warrants issued to consultant | 1 | — | |
| Government assistance obligation | — | 3,884 | |
| Amortization of deferred government incentive | (289) | (177) | |
| Licensing revenue | (372) | (333) | |
| Future income taxes | 129 | — | |
| Write-off of intangible assets | — | 52 | |
| Gain on sale of intangible assets | — | (883) | |
| Deemed government assistance | (15) | (59) | |
| (3,206) | (3,660) | ||
| Decrease in restricted cash | — | 126 | |
| Net change in non-cash working capital balances | (353) | (4,995) | |
| Net change in deferred licensing revenue | — | 22,286 | |
| Cash provided by (used in) operating activities | (3,559) | 13,757 | |
| INVESTING ACTIVITIES | |||
| Proceeds on settlement of long-term accounts receivable | 100 | — | |
| Proceeds on sale of intangible assets | — | 606 | |
| Purchase of intangible assets | (173) | — | |
| Government incentives received on account of property, plant and equipment | 1,144 | — | |
| Purchases of property, plant and equipment | (6,160) | (239) | |
| Cash provided by (used in) investing activities | (5,089) | 367 | |
| FINANCING ACTIVITIES | |||
| Proceeds from government assistance | 3,726 | 54 | |
| Proceeds from deferred government incentives | 350 | — | |
| Proceeds on exercise of stock options | 127 | — | |
| Redemption of common shares | (173) | — | |
| Repayment of revolving credit facility | — | (4,416) | |
| Payment of financing fees - debt | — | (2,117) | |
| Repayment of capital lease obligations | (98) | (84) | |
| Repayment of other long-term debt | (9) | (9) | |
| Cash provided by (used in) financing activities | 3,923 | (6,572) | |
| Net increase (decrease) in cash and cash equivalents during the period | (4,725) | 7,552 | |
| Cash and cash equivalents, beginning of period | 11,070 | 5,950 | |
| Cash and cash equivalents, end of period | 6,345 | 13,502 | |
SOURCE Bioniche Life Sciences Inc.
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