-lawsuit brought by Ferghana Partners, Inc.-

BELLEVILLE, ON, Oct. 20, 2011 /PRNewswire/ - Bioniche Life Sciences Inc. (TSX: BNC) (ASX: BNC), a research-based, technology-driven Canadian biopharmaceutical company, today announced that New York court has granted summary judgment in its favour, dismissing all claims in a lawsuit brought by a former licensing advisor, Ferghana Partners, Inc.

About the Case

The lawsuit was filed by Ferghana in December, 2009, seeking payment of 6% of the funds received under Bioniche's strategic partnership related to Urocidin™. In its lawsuit, Ferghana claimed it was entitled to a "finder's fee" in relation to an advisory agreement with Bioniche. This claim was made in relation to an outreach never disclosed to Bioniche, made without the Company's approval and in violation of the terms of the advisory agreement.

In the 19-page ruling granting Bioniche's motion for summary judgment of the case, the New York court dismissed all of Ferghana's claims. The court also denied Ferghana's cross motion to amend its complaint to include additional allegations and claims. Bioniche was represented in this matter by Dewey & LeBoeuf LLP, led by partner William Primps and including associates Jeffrey Amato and Eric Levine.

Bioniche Counterclaims

In the course of fact discovery relating to its defense against Ferghana's meritless claims, Bioniche found evidence supporting counterclaims against Ferghana for its failure to properly advise and represent Bioniche. The court has yet to rule on those counterclaims against Ferghana, which include fraud, breach of fiduciary duty, breach of contract, unjust enrichment, quantum meruit and related punitive damages. Bioniche will provide further comment about its counterclaims as required for its continuous disclosure obligations or as the court rules on them.

"We are pleased that the detailed ruling from Justice Schweitzer has vindicated our position that Ferghana's demand for payment was completely without merit, and we are committed to vigorously pursuing our counterclaims to a successful conclusion," said Graeme McRae, Chairman, President and Chief Executive Officer. "Bioniche remains committed to making Urocidin™ available to the many sufferers of non-muscle-invasive bladder cancer and we will be unrelenting in our pursuit of that goal."

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.

Bioniche Life Sciences Inc. has been named one of the Top 50 Best Small and Medium-Sized Employers in Canada for 2010. 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.

Copyright 2011 PR Newswire

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