Welcome!

News Feed Item

Bioniche Life Sciences Inc. Reports Q1, Fiscal 2013 Results

-quarterly revenues consistent with last year; margin on animal health product sales improves to 54%-

(all figures are in Canadian dollars unless otherwise noted)

BELLEVILLE, ON, Nov. 7, 2012 /PRNewswire/ - Bioniche Life Sciences Inc. (TSX: BNC) (ASX: BNC), a research-based, technology-driven Canadian biopharmaceutical company, today announced financial results for the first quarter of its 2013 fiscal year (ended September 30, 2012).

"The Company continues to invest in several late-stage development projects and in facilities where commercial products will be made," said Mr. Graeme McRae, President & CEO of Bioniche Life Sciences Inc. "We are nearing commercialization of some important products in the next 12 to 18 months and this requires an intensive resource allocation. Once these products reach the marketplace, we expect the new revenues will neutralize the corporate burn rate."

Further to the Company's news release of Monday, November 5, 2012, the Company continues to discuss with its licensing partner, Endo Pharmaceuticals, potential next steps for the Urocidin™ clinical program following the discontinuation of the current Phase III clinical trial in non-muscle-invasive bladder cancer. Urocidin™ remains a valuable asset and the Company is committed to ensuring that this valuable product becomes commercialized.

Fiscal 2013 First Quarter Financial Results Highlights

Revenues from the sale of Animal Health products increased by $0.5 million in the quarter, offset by a decrease in collaborative research revenue of $0.6 million. Animal Health revenues out of Canada, which includes sales into South America, declined by 17% compared to the same quarter last year due to the timing of sales orders. Sales in the United States increased 30% over the same quarter last year primarily from the introduction of new products. Sales in Australia and Europe also saw modest increases. Consolidated revenues for the quarter were $6.7 million, as compared to $6.8 million in the same period in Fiscal 2012.

The cost of sales related to product sales in the Animal Health business unit has decreased by 2% in Q1, Fiscal 2013 from the same quarter in Fiscal 2012. This decrease is directly related to increased sales from new products. Gross margins were 54.2% in Q1, Fiscal 2013, compared to 49.8% in the first quarter of last year.

The Company generated Earnings (Loss) Before Interest, Taxes, Depreciation and Amortization (EBITDA) - before research and development expenses - of ($107,000) for Q1, Fiscal 2013, as compared to ($242,000) for the same period in Fiscal 2012.

Cash, cash equivalents and short-term investments amounted to $14.4 million at September 30, 2012, as compared to $9.6 million in the same period last year and $20.0 million at June 30, 2012. A further $14 million was available to the Company at September 30, 2012 through trade and other receivables and inventories. In the same period last year, $14.6 million was available through these sources.

At September 30, 2012, the Company's net working capital totalled $21.2M as compared to working capital of $27.5M at June 30, 2012, reflecting the decrease in cash primarily used to invest in late-stage development and commercialization activities.

The Company's cash flow used in operations for the quarter ended September 30, 2012 was $5.0 million, as compared to cash used in operations of $3.9 million in the same period in Fiscal 2012. As a result, the average monthly burn rate for Q1, Fiscal 2013 was $1.8 million, vs. $1.2 million for the same quarter in Fiscal 2012.

"The Company remains committed to reducing the average monthly burn rate progressively throughout the year as it completes the development and commercialization of several new products," said Mr. Brian Ford, Chief Financial Officer of Bioniche Life Sciences Inc. "The Company's goal is to neutralize its burn rate and develop sustainable cash flows in Fiscal 2014."

The value of the Company's Property, Plant and Equipment has increased to $40.2 million at September 30, 2012, compared to $40.1 million at June 30, 2011. This increase reflects an ongoing investment in the Animal Health and Food Safety Vaccine Manufacturing Centre at the Company's corporate headquarters in Belleville, Ontario. This facility is undergoing validation to meet global GMP production standards.

Administrative expenses were $2.3 million in Q1, Fiscal 2013, as compared to $2.5 million in the same quarter last year. Marketing, selling and distribution expenses were $1.8 million in Q1, Fiscal 2013, as compared to $1.8 million in the same quarter last year. The additional expenditure in this category is related to increased staffing to support the launch and distribution of several new Animal Health products.

Research and development (R&D) expenditures for Q1, Fiscal 2013 were $4.3 million, as compared to $4.8 million in the same quarter last year. R&D resources are focused on the advancement of certain development programs in Animal Health and Food Safety. Additionally, there is continued investment in the staffing and infrastructure associated with the GMP production of the Company's UrocidinTM bladder cancer treatment. Further, until such time as the Company's Vaccine Manufacturing Centre in Belleville is making commercial product, the carrying costs associated with this facility are also accounted for under R&D.

The Company incurred financial expenses of $1.5 million (including non-cash financial expenses of $737,000) during Q1, Fiscal 2013 as a result of its US$20 million debt financing with Capital Royalty Partners. This compares to financial expenses of $0.2 million in the same quarter of Fiscal 2012.

The basic and fully-diluted net loss per share for Q1, Fiscal 2013 is ($0.06), as compared to a net loss per share of ($0.04) in the same period last year. Total Common Shares outstanding at September 30, 2012 were 103,738,712, as compared to 102,375,477 at September 30, 2011.

The Company has incurred significant losses and has an accumulated deficit of $125.5 million as at September 30, 2012, including a current loss of $6.7 million for the first quarter of Fiscal 2013. The Company's committed cash obligations and expected level of expenditures for the next twelve months exceed its committed resources of funds and funds available as at September 30, 2012.

The Company expects to finance its future expenditures by obtaining additional financing and the exploration of new partnering agreements on technologies under development. If the Company is unable to accomplish either of these initiatives, which are outside of management's control, the Company will be required to curtail its development activities and operations.

More information on the Company's year-end financial results is provided in the Company's Q1, Fiscal 2013 Management's Discussion and Analysis dated November 7, 2012.

Annual and Special Meeting of Shareholders

The Company held its Annual and Special Meeting of Shareholders in Belleville, Ontario today. At the meeting, shareholders voted in favour of electing the following individuals as members of the Board of Directors:

-Dr. Stanley Alkemade
-Mr. Albert Beraldo
-Mr. Rod Budd
-Dr. Margaret Cunningham
-Dr. James Johnson
-Mr. Graeme McRae
-Mr. Nick Photiades
-Mr. James Rae
-Mr. Lyle Vanclief

Dr. Armen Aprikian remains an Observer on the Board.

The shareholders also voted in favour of the appointment Ernst & Young, LLP, Chartered Accountants, as auditors of the Corporation.

Further, the shareholders voted in favour of an increase in the maximum number of Common Shares available to be issued under the Group Registered Retirement Savings and Employee Savings Plan ("Savings Plans") to 10,000,000.

The shareholders voted in favour of an increase in the maximum number of Common Shares available to be issued to pay outside directors to 1,400,000.

The shareholders voted in favour of a new Shareholders' Rights Plan. The Plan was originally approved in 2006 by the Toronto Stock Exchange and the shareholders. As the Plan had expired, a new Plan had to be approved.

Finally, the shareholders voted in favour of re-approval of the Amended and Restated Stock Option Plan. This Plan was approved by the shareholders in 2009 and requires re-approval by the shareholders every three years. The Stock Option Plan is a means by which the Company can compensate eligible persons for their contributions to the performance of the Company.

Other Meeting Highlights

During the meeting, additional information was presented to shareholders, including the following highlights:

  1. The Animal Health business unit has an objective of reaching $60 million in product sales revenues in Fiscal 2016.
  2. The Company's Sin Susto™ canine calming product is expected to be launched in North America in January, 2013.
  3. The Company is talking with the University of Ottawa about potential human applications for Sin Susto™.
  4. The Company's Animal Health and Food Safety Vaccine Manufacturing Centre in Belleville, Ontario is expected to be fully validated to Good Manufacturing Practice (GMP) standards by the spring of 2013.
  5. The Company is seeking a distribution partner in Japan for Econiche®.
  6. The Company's second canine oncology product in development - Oncocidin™ - is expected to be launched in Q1, Fiscal 2014.
  7. The Company has filed new patents around Mycobacterial Cell Wall-DNA Complex (MCC) in October, 2011.
  8. A possible future indication for MCC is in human palliation following chemotherapy.
  9. The Company's R. equi vaccine for horses is undergoing proof of concept studies at the Gluck Equine Research Centre in Kentucky, where the protocol involves vaccinating mares to protect foals.

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 and innovative products for human and animal health markets worldwide. The fully-integrated company employs more than 200 skilled personnel and has three operating divisions: Human Health, Animal Health, and Food Safety. The Company's primary goal is to develop and commercialize products that advance human or animal health and increase shareholder value.

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

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
[Unaudited - see going concern uncertainty]

As at

(thousands of Canadian dollars)
  September
30, 2012
$
June 30,
2012
$
ASSETS
Current
     
Cash and cash equivalents   14,409 20,020
Trade and other receivables   6,024 6,787
Inventories   7,960 7,776
Prepayments   1,065 1,081
    29,458 35,664
Non-current      
Property, plant and equipment   40,217 40,134
Intangible assets   5,009 5,206
Goodwill   456 456
Other non-current receivables   145 183
Deferred tax assets   375 509
Total assets   75,660 82,152
       
LIABILITIES AND SHAREHOLDERS' EQUITY      
Current      
Trade and other payables   6,573 6,713
Income taxes payable   88 94
Current portion of long-term debt   1,015 997
Current portion of repayable government assistance   616 366
    8,292 8,170
Non-current      
Long-term debt   24,842 25,438
Repayable government assistance   31,273 30,921
Employee benefit liability   1,906 1,875
    66,313 66,404
Shareholders' equity      
Share capital   126,425 126,354
Other paid-in capital   9,429 9,327
Deficit   (125,478) (118,807)
Foreign currency translation reserve   (1,029) (1,126)
Total shareholders' equity   9,347 15,748
Total liabilities and shareholders' equity   75,660 82,152

Bioniche Life Sciences Inc. 

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
[Unaudited - see going concern uncertainty]

(thousands of Canadian
dollars)
Common
Shares
$
  Preferred
Shares
Series I
$
  Total Share
Capital
$
  Other
paid-in
Capital
$
  Deficit
$
  Foreign
currency
translation
reserve
$
  Total
$
Balance, June 30, 2012 126,354     126,354   9,327   (118,807)   (1,126)   15,748
Net loss for the period         (6,671)     (6,671)
Exchange difference on translation of foreign operations           97   97
Issued under employee share ownership plan 70     70         70
Options exercised 1     1         1
Fair value of stock options vested       102       102
Balance, September 30, 2012 126,425     126,425   9,429   (125,478)   (1,029)   9,347
                           
Balance, June 30, 2011 125,469   161   125,630   8,771   (94,619)   (1,174)   38,608
Net loss for the period         (4,509)     (4,509)
Exchange difference on translation of foreign operations           267   267
Issued under employee share ownership plan 209     209         209
Options issued to a consultant       1       1
Fair value of stock options vested       213       213
Share redemption   (161)   (161)   5       (156)
Balance, September 30, 2011 125,678     125,678   8,990   (99,128)   (907)   34,633

Bioniche Life Sciences Inc.

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF LOSS AND COMPREHENSIVE LOSS
[unaudited - see going concern uncertainty]

For the three months ended September 30

(thousands of Canadian dollars, except share and per
share amounts)
  2012
$
2011
$
       
REVENUES      
Product   6,595 6,123
Research collaborations   74 693
    6,669 6,816
EXPENSES      
Cost of sales   3,021 3,073
Administration   2,338 2,489
Marketing and selling   1,827 1,771
Financial expenses   1,518 227
Foreign exchange loss (gain)   289 (433)
    8,993 7,127
Loss before research and development expenses and income taxes   (2,324) (311)
Research and development expenses   4,316 4,820
Less: government assistance   (98) (199)
Loss before income taxes   (6,542) (4,932)
Income tax expense (recovery)   129 (421)
Net loss for the period   (6,671) (4,511)
OTHER COMPREHENSIVE INCOME
Exchange difference on translation of foreign operations
  97 267
Total comprehensive loss for the period   (6,574) (4,244)
Basic and diluted net loss per Share   (0.06) (0.04)
Weighted-average number of Common Shares outstanding   103,734,182 102,274,109

Bioniche Life Sciences Inc.

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS
[unaudited - see going concern uncertainty]

For the three months ended September 30

(thousands of Canadian dollars)
  2012
$
2011
$
OPERATING ACTIVITIES      
Net loss for the period   (6,671) (4,511)
Items not affecting cash and other reconciling items:      
  Depreciation of property, plant and equipment   367 355
  Amortization of intangible assets   444 243
  Unrealized foreign exchange gain   (466) (99)
  Finance expense on government incentives, long-term debt
   and repayable government assistance 
  737 217
  Stock-based compensation expense   102 214
  Employee share ownership plan   208
  Employee future benefit   31 23
  Unrealized loss on other current financial assets   20
  Deemed government assistance   (7)
  Deferred income taxes   129 (361)
  Other   1
    (5,327) (3,697)
Net change in non-cash working capital balances   345 (237)
Cash used in operating activities   (4,982) (3,934)
INVESTING ACTIVITIES      
Purchases of property, plant and equipment   (124) (2,766)
Proceeds on disposal of property, plant and equipment   2
Purchases of intangible assets   (247) (3)
Cash used in investing activities   (371) (2,767)
FINANCING ACTIVITIES      
Proceeds from repayable government assistance   1,230
Proceeds on exercise of stock options   1
Redemption of shares   (156)
Repayment of repayable government assistance   (35)
Repayment of finance lease obligations   (108) (118)
Repayment of long-term debt   (116) (29)
Cash provided by financing activities   (258) 927
Net decrease in cash and cash equivalents during the period   (5,611) (5,774)
Cash and cash equivalents, beginning of period   20,020 15,353
Cash and cash equivalents, end of period   14,409 9,579

 

SOURCE Bioniche Life Sciences Inc.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
Many companies start their journey to the cloud in the DevOps environment, where software engineers want self-service access to the custom tools and frameworks they need. Machine learning technology can help IT departments keep up with these demands. In his session at 21st Cloud Expo, Ajay Gulati, Co-Founder, CTO and Board Member at ZeroStack, will discuss the use of machine learning for automating provisioning of DevOps resources, taking the burden off IT teams.
SYS-CON Events announced today that Cedexis will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Cedexis is the leader in data-driven enterprise global traffic management. Whether optimizing traffic through datacenters, clouds, CDNs, or any combination, Cedexis solutions drive quality and cost-effectiveness.
SYS-CON Events announced today that Enroute Lab will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Enroute Lab is an industrial design, research and development company of unmanned robotic vehicle system. For more information, please visit http://elab.co.jp/.
SYS-CON Events announced today that Mobile Create USA will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Mobile Create USA Inc. is an MVNO-based business model that uses portable communication devices and cellular-based infrastructure in the development, sales, operation and mobile communications systems incorporating GPS capabi...
SYS-CON Events announced today that Suzuki Inc. will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Suzuki Inc. is a semiconductor-related business, including sales of consuming parts, parts repair, and maintenance for semiconductor manufacturing machines, etc. It is also a health care business providing experimental research for...
IBM helps FinTechs and financial services companies build and monetize cognitive-enabled financial services apps quickly and at scale. Hosted on IBM Bluemix, IBM’s platform builds in customer insights, regulatory compliance analytics and security to help reduce development time and testing. In his session at 21st Cloud Expo, Lennart Frantzell, a Developer Advocate with IBM, will discuss how these tools simplify the time-consuming tasks of selection, mapping and data integration, allowing devel...
Cloud-based disaster recovery is critical to any production environment and is a high priority for many enterprise organizations today. Nearly 40% of organizations have had to execute their BCDR plan due to a service disruption in the past two years. Zerto on IBM Cloud offer VMware and Microsoft customers simple, automated recovery of on-premise VMware and Microsoft workloads to IBM Cloud data centers.
Why Federal cloud? What is in Federal Clouds and integrations? This session will identify the process and the FedRAMP initiative. But is it sufficient? What is the remedy for keeping abreast of cutting-edge technology? In his session at 21st Cloud Expo, Rasananda Behera will examine the proposed solutions: Private or public or hybrid cloud Responsible governing bodies How can we accomplish?
Real IoT production deployments running at scale are collecting sensor data from hundreds / thousands / millions of devices. The goal is to take business-critical actions on the real-time data and find insights from stored datasets. In his session at @ThingsExpo, John Walicki, Watson IoT Developer Advocate at IBM Cloud, will provide a fast-paced developer journey that follows the IoT sensor data from generation, to edge gateway, to edge analytics, to encryption, to the IBM Bluemix cloud, to Wa...
SYS-CON Events announced today that Massive Networks, that helps your business operate seamlessly with fast, reliable, and secure internet and network solutions, has been named "Exhibitor" of SYS-CON's 21st International Cloud Expo ®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. As a premier telecommunications provider, Massive Networks is headquartered out of Louisville, Colorado. With years of experience under their belt, their team of...
With the rise of DevOps, containers are at the brink of becoming a pervasive technology in Enterprise IT to accelerate application delivery for the business. When it comes to adopting containers in the enterprise, security is the highest adoption barrier. Is your organization ready to address the security risks with containers for your DevOps environment? In his session at @DevOpsSummit at 21st Cloud Expo, Chris Van Tuin, Chief Technologist, NA West at Red Hat, will discuss: The top security r...
SYS-CON Events announced today that Nihon Micron will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Nihon Micron Co., Ltd. strives for technological innovation to establish high-density, high-precision processing technology for providing printed circuit board and metal mount RFID tags used for communication devices. For more inf...
SYS-CON Events announced today that mruby Forum will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. mruby is the lightweight implementation of the Ruby language. We introduce mruby and the mruby IoT framework that enhances development productivity. For more information, visit http://forum.mruby.org/.
In his session at @ThingsExpo, Greg Gorman is the Director, IoT Developer Ecosystem, Watson IoT, will provide a short tutorial on Node-RED, a Node.js-based programming tool for wiring together hardware devices, APIs and online services in new and interesting ways. It provides a browser-based editor that makes it easy to wire together flows using a wide range of nodes in the palette that can be deployed to its runtime in a single-click. There is a large library of contributed nodes that help so...
SYS-CON Events announced today that Ryobi Systems will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Ryobi Systems Co., Ltd., as an information service company, specialized in business support for local governments and medical industry. We are challenging to achive the precision farming with AI. For more information, visit http:...