- construction of important new manufacturing facilities completed in
the quarter -
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(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).
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"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.
