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(EMAILWIRE.COM, September 16, 2011 ) (ASX: BNC), a research-based, technology-driven Canadian biopharmaceutical company, today announced financial results for its fiscal year ended June 30, 2011.
"The Company has worked diligently over the past few years to de-risk its business and, thus, create a more attractive investment opportunity," said Graeme McRae, Chairman, President & CEO. "This has been achieved through the signing of partnership deals, the presence of a solid base business generating revenue and positive earnings before research and development, the investment in intellectual property protection of core technologies, and the successful raising of capital resources."
The Company expects to be launching a series of new research and technology-driven products from its pipeline over the next 18 months. Announcements will be made as these products are launched in various global jurisdictions.
Fiscal 2011 Financial Results Highlights
Consolidated revenues related to Bioniche Animal Health product sales for the fiscal year were $27.4 million, as compared to $27 million in Fiscal 2010. This represents a stabilization of product revenues which had previously been reduced with the economic recession in some markets.
In addition to revenues from animal health product sales, the Company recorded licensing revenue of $5.5 million in Fiscal 2011, as compared to $16.2 million in Fiscal 2010, reflecting non-recurring milestone revenue earned under the Urocidin(TM) license, development and supply agreement with Endo Pharmaceuticals Inc. (Endo) and the amortization of the up-front payment by Endo upon the signing of this agreement. The total up-front payment received, C$22.3 million, will be recognized over 15 years, which is the term over which the Company maintains substantive contractual obligations (per Canadian Generally Accepted Accounting Principles - GAAP).
The Company generated Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) - before research and development expenses - of $6.0 million, as compared to $20.5 million in Fiscal 2010. The decrease can be attributed primarily to the lower milestone revenues in Fiscal 2011.
Fiscal year-end cash, cash equivalents and short-term investments amounted to $16.8 million, as compared to $11.1 million at June 30, 2010. At June 30, 2011, the Company's net working capital totaled $23.0 million, excluding the current portion of non-refundable deferred licensing revenue, as compared to net working capital of $16.5 million at June 30, 2010.
The value of the Company's Property, Plant and Equipment has increased to $27.8 million at June 30, 2011, compared to $16.6 million at June 30, 2010. This reflects the significant investment in the Animal Health and Food Safety Vaccine Manufacturing Centre at the Company's corporate headquarters in Belleville, Ontario. This facility was officially opened in April, 2011 and is undergoing commissioning and validation, a process which is expected to be completed in early calendar 2012, to be followed by production scale-up.
Administrative expenses grew in Fiscal 2011 to $10.5 million from $6.8 million at June 30, 2010. Administrative expenses reflect the accrual of approximately $2.0 million for a pension plan for the Company's President & CEO in recognition of his many years of service and longstanding leadership in the Company. The plan provides two months of salary continuance for every year of service, but has not required any cash outlay as the obligation is unfunded. Administrative expenses also include an increase in salaries and related benefits of $0.9 million, comprised of average salary increases of 3% and the creation of four new positions.
Research and development expenditures increased by $1.5 million in Fiscal 2011 to $19.8 million, as compared to $18.3 million in Fiscal 2010. R&D resources are focused on the advancement of certain development programs in Animal Health and Food Safety. There is continued investment in the staffing and infrastructure associated with the GMP production of the Company's Urocidin(TM) bladder cancer treatment that is in Phase III clinical testing. Endo has assumed financial responsibility for the external costs of clinical activities as they relate to Urocidin(TM), and the Company is refocusing its human clinical development activities for the underlying technology - Mycobacterial Cell Wall-DNA Complex (MCC) - on other indications.
The basic and fully-diluted net loss per share for Fiscal 2011 is ($0.17), as compared to a net loss per share of ($0.02) in Fiscal 2010. The decrease in revenues associated with reduced milestone payments from Endo contributed to the greater loss in Fiscal 2011. Total common shares outstanding at June 30, 2011 were 102,108,692, as compared to 72,890,247 at June 30, 2010.
More information on the Company's year-end financial results is provided in the Company's Fiscal 2011 Management's Discussion and Analysis dated September 14, 2011.
Fiscal 2011 Year-End Results Conference Call
The Company will discuss its year-end results during a:
Conference Call & Audio Web Cast
Wednesday, September 21, 2011
6:00 p.m. (Eastern)
To participate in the conference call from North America, call (888) 231-8191.
To participate in the conference call from Australia, call 1-800-287-011.
A listen-only audio web cast will be available at:
http://event.on24.com/r.htm?e=357400&s=1&k=196F8E1949C7EF06BF11AE4846538BA0
A replay of the conference call will be available until September 28, 2011 at midnight by calling 1-855-859-2056 (passcode: 10564534 followed by the number sign).
The web cast will be available for replay using the above link until September 20, 2012.
Timing of Q1, Fiscal 2012 Financial Reporting
Beginning in Q1, Fiscal 2012, the Company will be reporting its financial results according to International Financial Reporting Standards (IFRS). The conversion to IFRS accounting is a major project and the financial report will occur on or about December 8, 2011 as per Ontario Securities Commission regulations.
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.
[CONSOLIDATED BALANCE SHEETS NOT AVAILABLE]
Bioniche Life Sciences Inc.
Jennifer Shea
(613) 966-8058
Jennifer.Shea@Bioniche.com 
Source: EmailWire.com
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