BELLEVILLE, ON,
Sept. 22, 2011 /PRNewswire/ -
Bioniche Life Sciences Inc. (TSX: BNC) (ASX: BNC), 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:
- 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) .
- Increasing Animal Health profits, by focusing on high margin
products.
- 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 EconicheTM 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.
SOURCE Bioniche Life Sciences Inc.