BELLEVILLE, ON, June 3, 2014 /PRNewswire/ - Bioniche Life Sciences Inc. (TSX: BNC) today provided corporate updates on a number of key strategic initiatives including:
- Continued execution of Cost Reduction/Strategic Expenditures Review
- Completion of Asset Disposition Program
- Vaccine Manufacturing (VMC) Sales Process
- Urocidin™ Regulatory Update
Strategic Expenditures Review
Initiated in December 2013, management at Bioniche Life Sciences have conducted and implemented a comprehensive review of all corporate expenditures. This review has resulted in the execution of a large number of recommendations that have had the effect of significantly reducing operating costs currently and on an ongoing basis. These include:
- Reduction of senior executive positions from 12 to 5
- A workforce reduction from >200 to approximately 50
- Delisting from the ASX stock exchange
- Reduced corporate benefits program
Dr. Michael Berendt, CEO of Bioniche Life Sciences Inc., commented that, "The objective of this ongoing review is to ensure that all of our expenditures are focussed on driving shareholder value through investment in the development and monetization of Urocidin™, our key Phase 3 bladder cancer program, and on building, through licensing and acquisition, a pipeline of differentiated human therapeutic products that will drive future shareholder value in a cost and time efficient fashion." Dr. Berendt also remarked, "I am determined to ensure that every dollar spent at Bioniche is strategically deployed for the future benefit of our shareholders."
Completion of Asset Disposition Program
As part of the strategic expenditures review, non-core assets were identified and put up for sale. This included a Montreal commercial property and two residences in Belleville, Ontario, that were sold for net proceeds of more than $1 million, as previously reported. In addition, the company is pleased to announce the sale of its 100 acre research farm, for net proceeds of approximately $400,000. The company now maintains only two properties - its Belleville campus and Montreal manufacturing plant.
Vaccine Manufacturing (VMC) Sales Process
PharmaBioSource, a leading U.S. Merchant bank has been engaged to find a buyer for the VMC and entire Belleville campus. Site visits by interested parties are ongoing. Vétoquinol, the purchaser of Bioniche's animal health division, is renting a large portion of this facility at market rates, for the next 3 years.
Urocidin Regulatory Update
Bioniche is in active dialogue, with the US FDA concerning the most appropriate and efficient regulatory pathway for Urocidin in the Unites States. Bioniche expects to be able to report on the results of this dialogue prior to the end of June. Clarity on this issue is critical as it is a prerequisite for the company to increase its active dialogue with interested strategic parties. The company has also decided to re-apply for Orphan Drug designation in the Unites States. Bioniche submitted its Clinical Assessment package to Health Canada in line with the mid-May guidance previously provided and will be meeting with additional potential licensing partners at the upcoming BIO meeting in June in San Diego.
About Bioniche Life Sciences Inc.
Bioniche Life Sciences Inc. is a clinical stage Canadian biopharmaceutical company focused on the discovery, development, manufacturing, and marketing of proprietary and innovative therapies for the global human health market. The Company's primary goal is to develop and commercialize products that advance human health and increase shareholder value. 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
SOURCE Bioniche Life Sciences Inc.