- construction of important new
manufacturing facilities completed in the quarter -
(all figures are in Canadian dollars unless otherwise
noted)
BELLEVILLE, ON,
May 11 /PRNewswire-FirstCall/ -
Bioniche Life Sciences Inc. (TSX: BNC) (ASX: BNC), a
research-based, technology-driven Canadian biopharmaceutical
company, today announced financial results for the third quarter of
its 2011 fiscal year (ended March 31,
2011).
"The most exciting recent event for the Company
has been the Official Opening of our Animal Health and Food Safety
Vaccine Manufacturing Centre in our Belleville, Ontario corporate headquarters on
April 29th," said Graeme McRae, Chairman, President & CEO of
Bioniche Life Sciences Inc. "Although the Official Opening occurred
subsequent to the end of Q3, there was substantial activity in the
period to complete construction and install new equipment, which
will now undergo commissioning and validation. Commercial
production is expected to commence later this year."
During the quarter, the Company also completed
construction of a pilot-scale fermentation facility adjacent to the
new Vaccine Manufacturing Centre. This facility houses fermentation
equipment and downstream processing to allow small-scale, bench-top
processes to be scaled up and readied for commercial-scale
production in the Vaccine Manufacturing Centre. It will be funded
in part with a repayable loan from the Federal Economic Development
Agency for Southern Ontario
(FedDev Ontario).
Fiscal 2011 Third Quarter Financial Results
Highlights
Fiscal 2011 third quarter cash and cash
equivalents amounted to $26.2
million, as compared to $11
million at Fiscal 2010 year-end (June
30, 2010). This significant increase largely reflects the
net proceeds of the Share Offers completed in Canada in December and in Australia in January. The cash position is
offset by extensive investment in the above-mentioned Vaccine
Manufacturing Centre. The new 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.
This investment is reflected in the long-term corporate assets
under Property, Plant and Equipment, which totals $25.8 million at the end of Q3.
Consolidated revenues related to Bioniche Animal
Health product sales for the third quarter were $7.2 million, as compared to $6.1 million in the third quarter of Fiscal 2010.
Year-to-date revenue from product sales amounts to $20 million, compared to $19.1 million year-to-date in Fiscal 2010.
Research collaborations and licensing revenue in Q3, Fiscal 2011
brought total revenue for the quarter to $8.5 million, compared to $15.6 million in the same period last year. The
decrease is primarily due to a decrease in milestone-related
license revenues in the current period as compared to the same
period last year. Milestone revenues are tied to non-linear
triggers, and are not expected to be comparative on a quarterly
basis. Licensing revenue in Q3 this year 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), is being
recognized over 15 years, which is the term over which the Company
maintains substantive contractual obligations (per Canadian
Generally Accepted Accounting Principles - GAAP).
Research and development expenditures in the
third quarter of Fiscal 2011 totalled $5.3
million, as compared to $5.1
million in the same period in Fiscal 2010. The R&D
expenditures related to the Company's portion of the ongoing
UrocidinTM clinical development program,
as well as development programs in Animal Health and Food
Safety.
Administration expenses grew slightly in Q3,
Fiscal 2011, to $2.1 million from
$1.7 million in the same period in
Fiscal 2010. The increase relates to new hires and annual salary
increases based on job performance.
The basic and fully-diluted net loss per share
for the third quarter of Fiscal 2011 was ($0.05) compared to a gain per share of
$0.06 in the same quarter in Fiscal
2010 reflecting license revenues for that period. The number of
Common Shares outstanding at March 31,
2011 was 101,606,703, as compared to 72,499,759 for the
corresponding period in Fiscal 2010.
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 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 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]
|
As at March 31, |
As at June 30, |
|
2011 |
2010 |
(thousands of Canadian dollars) |
$ |
$ |
ASSETS |
|
|
Current |
|
|
Cash and cash equivalents |
26,211 |
11,070 |
Accounts receivable |
6,160 |
8,601 |
Income taxes receivable |
47 |
63 |
Future income tax assets |
66 |
197 |
Inventories |
9,543 |
6,668 |
Prepaid expenses and
deposits |
1,114 |
793 |
|
43,141 |
27,392 |
Long-term |
|
|
Property, plant and equipment |
25,837 |
16,584 |
Intangible assets |
6,425 |
6,500 |
Goodwill |
456 |
456 |
Long-term accounts receivable |
2,058 |
1,156 |
Future income tax assets |
31 |
51 |
|
77,948 |
52,139 |
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
Current |
|
|
Accounts payable and accrued liabilities |
12,275 |
9,716 |
Current portion of long-term debt and obligations under capital
leases |
617 |
256 |
Current portion of repayable government assistance |
1,045 |
960 |
Current portion of non-refundable |
|
|
deferred licensing revenue |
1,486 |
1,486 |
|
15,423 |
12,418 |
Long-term |
|
|
Accrued pension liability |
1,972 |
— |
Long-term debt |
1,631 |
1,341 |
Obligations under capital leases |
1,084 |
1,184 |
Repayable government assistance |
13,023 |
6,965 |
Deferred government incentives |
— |
2,382 |
Non-refundable deferred licensing revenue |
18,238 |
19,353 |
|
51,371 |
43,643 |
Shareholders' equity |
|
|
Share capital |
125,052 |
96,677 |
Other paid-in capital |
8,504 |
8,700 |
Deficit |
(106,979) |
(96,881) |
|
26,577 |
8,496 |
|
77,948 |
52,139 |
Bioniche Life Sciences Inc.
INTERIM CONSOLIDATED STATEMENTS OF
(LOSS)
INCOME, COMPREHENSIVE (LOSS) INCOME, AND DEFICIT
[Unaudited]
For the three and nine months ended March 31
|
Current
Quarter
2011 |
Last Year
Quarter
2010 |
Current
Year to Date
2011 |
Last
Year to Date
2010 |
(thousands of Canadian dollars, except share and per share
amounts) |
$ |
$ |
$ |
$ |
REVENUES |
|
|
|
|
Sales |
7,177 |
6,129 |
19,978 |
19,064 |
Research collaborations |
919 |
758 |
2,563 |
758 |
Gain on disposal of intangible assets |
— |
— |
— |
883 |
Licensing |
372 |
8,742 |
5,161 |
15,832 |
|
8,468 |
15,629 |
27,702 |
36,537 |
EXPENSES |
|
|
|
|
Cost of sales (excluding amortization) |
3,628 |
3,109 |
9,668 |
9,174 |
Administration |
2,069 |
1,718 |
7,585 |
5,149 |
Marketing and selling |
1,611 |
1,557 |
5,004 |
4,507 |
Financial expenses |
301 |
163 |
687 |
515 |
Amortization of property, plant and equipment |
263 |
242 |
755 |
809 |
Amortization and write-down of intangible assets |
232 |
189 |
639 |
620 |
Foreign exchange loss |
224 |
242 |
481 |
506 |
|
8,328 |
7,220 |
24,819 |
21,280 |
Income before research and development
expenses and other items |
140 |
8,409 |
2,883 |
15,257
|
Research and development expenses, gross |
5,273 |
5,092 |
14,522 |
13,246 |
Repayable government assistance |
— |
— |
— |
3,884 |
Less: government incentives, net |
(653) |
(1,067) |
(1,687) |
(2,260) |
(Loss) income before income taxes |
(4,480) |
4,384 |
(9,952) |
387 |
Provision for income tax expense |
— |
— |
129 |
130 |
Net (loss) income and comprehensive
(loss) income for the period |
(4,480) |
4,384 |
(10,081) |
257 |
Deficit, beginning of period |
(102,499) |
(102,075) |
(96,881) |
(95,292) |
Premium on share redemption |
— |
— |
(17) |
— |
Deficit, end of period |
(106,979) |
(95,035) |
(106,979) |
(95,035) |
Basic and diluted net (loss) income per share |
(0.05) |
0.06 |
(0.12) |
0.00 |
Weighted-average number of common shares
outstanding |
99,199,406 |
72,349,969 |
84,605,217 |
72,075,862 |
Bioniche Life Sciences Inc.
INTERIM CONSOLIDATED STATEMENTS
OF CASH FLOWS
[Unaudited]
For the three and nine months ended March 31 |
|
|
|
|
|
Current
Quarter
2011 |
Last Year
Quarter
2010 |
Current
Year to Date
2011 |
Last
Year to Date
2010 |
(thousands of Canadian dollars) |
$ |
$ |
$ |
$ |
OPERATING ACTIVITIES |
|
|
|
|
Net income (loss) for the period |
(4,480) |
4,384 |
(10,081) |
257 |
Add (deduct) non-cash items: |
|
|
|
|
|
Amortization |
495 |
431 |
1,394 |
1,377 |
|
Unrealized foreign exchange loss
(gain) |
(8) |
(7) |
52 |
(32) |
|
Accreted interest on discounted
receivables and interest-free loans and amortization of
financial expenses |
232 |
104 |
493 |
315 |
|
Stock-based compensation
expense |
198 |
63 |
335 |
173 |
|
Employee share ownership
plan |
216 |
200 |
624 |
337 |
|
Accrued pension expense |
37 |
— |
1,972 |
— |
|
Repayable government
assistance |
— |
— |
— |
3,884 |
|
Amortization of deferred
government incentives |
(490) |
(464) |
(1,962) |
(1,308) |
|
Licensing revenue |
(371) |
(372) |
(1,115) |
(1,076) |
|
Write-down of intangible
assets |
— |
— |
— |
52 |
|
Future income taxes |
— |
— |
129 |
— |
|
Gain on sale of intangible
assets |
— |
— |
— |
(883) |
|
Deemed government
assistance |
(26) |
— |
(57) |
(73) |
|
(4,197) |
4,339 |
(8,216) |
3,023 |
Decrease in restricted cash |
— |
138 |
— |
1,174 |
Net change in non-cash working capital
balances |
(2,207) |
(1,849) |
(112) |
(7,877) |
Net change in non-refundable deferred licensing
revenue |
— |
— |
— |
22,286 |
Cash provided by (used in) operating
activities |
(6,404) |
2,628 |
(8,328) |
18,606 |
INVESTING ACTIVITIES |
|
|
|
|
Proceeds on settlement of long-term accounts
receivable |
— |
— |
100 |
— |
Government incentives received on account of
property, plant and equipment |
— |
135 |
1,496 |
186 |
Proceeds on sale of intangible assets |
— |
— |
— |
606 |
Purchase of intangible assets |
(178) |
— |
(564) |
— |
Procceds on disposal of property, plant and
equipment |
18 |
— |
24 |
6 |
Purchases of property, plant and equipment |
(3,777) |
(2,283) |
(13,874) |
(3,659) |
Cash used in investing activities |
(3,937) |
(2,148) |
(12,818) |
(2,861) |
FINANCING ACTIVITIES |
|
|
|
|
Proceeds from deferred government
incentives |
— |
— |
690 |
— |
Proceeds from government assistance |
1,632 |
691 |
9,206 |
744 |
Repayment of government assistance |
(960) |
— |
(960) |
— |
Proceeds from long-term debt |
— |
— |
500 |
— |
Proceeds from shares issued |
13,189 |
72 |
30,351 |
72 |
Redemption of common shares |
— |
— |
(173) |
— |
Payment of share issuance costs |
(771) |
— |
(2,969) |
— |
Payment of financing fees - debt |
— |
— |
— |
(2,117) |
Repayment of revolving credit facility |
— |
— |
— |
(4,416) |
Repayment of capital lease obligations |
(115) |
(24) |
(343) |
(259) |
Repayment of long-term debt |
(9) |
(141) |
(15) |
(291) |
Cash provided by (used in) financing
activities |
12,966 |
598 |
36,287 |
(6,267) |
Net increase in cash and cash equivalents
during the period |
2,625 |
1,078 |
15,141 |
9,478 |
Cash and cash equivalents, beginning of period |
23,586 |
14,350 |
11,070 |
5,950 |
Cash and cash equivalents, end of
period |
26,211 |
15,428 |
26,211 |
15,428 |
SOURCE Bioniche Life Sciences Inc.