Bioniche Life Sciences Inc. Outlines Plan to Achieve Profitability
September 22 2011 - 5:00PM
PR Newswire (Canada)
BELLEVILLE, ON, Sept. 22, 2011 /CNW/ - Bioniche Life Sciences Inc.
, a research-based, technology-driven Canadian biopharmaceutical
company, provided shareholders with a corporate update on a
conference call/web cast last evening. The purpose of the call was
to discuss the Company's year-end financial results, specify its
priorities and outline its plan to achieve profitability. The
financial results for the Company's 2011 fiscal year were released
on September 14, 2011. The results showed an increase in both
administrative and research and development expenditures, with a
decrease in overall revenues due to a reduction in milestone
revenues from the Company's human health development partner. The
corporate burn rate (cash used in operations) was approximately $1
million per month in Fiscal 2011. The Company had $16.8 million in
cash, cash equivalents and short-term investments at June 30, 2011.
Bioniche intends for its current cash resources to support
operations until it achieves positive cash flow from operations. To
manage cash flow through the commercialization of its late-stage
development projects, Bioniche has imposed a series of spending
restrictions. Such restrictions include, but are not limited to, a
hiring freeze and material expenditure reductions for all
departments. Beyond such immediate measures, the major objective of
reducing the corporate burn rate (cash used in operations will be
achieved in three ways: 1. Increasing revenues from Animal Health
product sales, with a focus on launching new products from the
Company's internal development pipeline (for example, a canine
oncology product that is based on the Company's Mycobacterial Cell
Wall-DNA Complex (MCC) technology; MCC is currently in Phase III
clinical testing for BCG-refractory, non-muscle-invasive human
bladder cancer) . 2. Increasing Animal Health profits, by focusing
on high margin products. 3. Reducing overheads as some of the
Company's late-stage research projects mature. Late-stage research
is more costly and, as products come to market, the research and
development activity related to those products will cease. "Our
goal is to progressively reduce the burn rate from the current $1
million per month through the remainder of Fiscal 2012," said
Graeme McRae, Chairman, President & CEO of Bioniche Life
Sciences Inc. "In Fiscal 2013, our goal is to eliminate our burn
rate altogether and show sustained profitability by the end of that
year." During the conference call/web cast, the Company also
provided an update on its three divisions, including the Food
Safety division, where work continues toward a U.S. conditional
license for its Econiche(TM )E. coli O157 cattle( )vaccine from the
U.S. Department of Agriculture (USDA). It is not clear when this
license could be issued, but the Company notes that over half of
the beef products sold in the U.S. are branded products and it has
seen significant interest from within specific brands in the U.S.
to implement vaccination as a risk reduction strategy once the
Company's vaccine is conditionally licensed. Meanwhile, the Company
continues to very closely monitor Canadian and international
opportunities for government mandating of E. coli O157 vaccination.
The Company has been in contact with government and/or industry
leaders in North America, Europe (specifically Sweden and the UK),
Australia and New Zealand. The new Animal Health and Food Safety
Vaccine Manufacturing Centre at Company headquarters in Belleville,
Ontario has been undergoing commissioning and validation. This is a
complicated and lengthy process that is expected to continue until
early 2012, after which production scale-up will occur. In terms of
plant utilization, the Centre is capable of manufacturing other
biologics and there are both Bioniche-developed and contract
manufactured vaccine options for consideration. Canada imports in
excess of $125 million dollars of Veterinary Biologics from the
U.S. annually, representing a risk in the event that the supply
chain becomes disrupted. The new Centre could be made available for
the production of a variety of vaccines as national needs arise.
Conference Call/Web Cast Replay A replay of the conference call
will be available until September 28, 2011 at midnight by calling
1-855-859-2056 (passcode: 10564534#). The web cast will be
available for replay until September 20, 2012 via this link:
http://event.on24.com/r.htm?e=357400&s=1&k=196F8E1949C7EF06BF11AE4846538BA0
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.
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. CONTACT: Jennifer
Shea, Vice-President, Communications, Investor
&GovernmentRelationsBioniche Life Sciences Inc.Telephone: (613)
966-8058; from Australia: 0011 1 613-966-8058Cell: (613) 391-2097;
from Australia: 0011 1 613-391-2097Jennifer.Shea@Bioniche.com
Copyright
Purpose Canadian Financi... (TSX:BNC)
Historical Stock Chart
From Jun 2024 to Jul 2024
Purpose Canadian Financi... (TSX:BNC)
Historical Stock Chart
From Jul 2023 to Jul 2024