Bioniche Life Sciences Inc. Reports Fiscal 2011 Second Quarter Results
- cash for the quarter more than doubled over same period in Fiscal 2010, to $23.6 million -
(all figures are in Canadian dollars unless otherwise noted)
BELLEVILLE, ON, Feb. 10 /PRNewswire-FirstCall/ - Bioniche Life Sciences Inc. (TSX & ASX: BNC), a research-based, technology-driven Canadian biopharmaceutical company, today announced financial results for the second quarter of its 2011 fiscal year (ended December 31, 2010).
"Subsequent to quarter-end - on January 27th - the Company became listed on the Australian Securities Exchange (ASX) following the successful completion of concurrent Australian and Canadian Share Offers," said Graeme McRae, Chairman, President & CEO of Bioniche Life Sciences Inc. "Between the two jurisdictions, we raised a total of $28.9 million which will facilitate the achievement of a number of corporate objectives. The ASX listing provides a higher profile and enhanced growth opportunities for the Company in both the Australian and Asian markets."
Subsequent to the ASX listing - on February 4, 2011 - investment bank Taylor Collison Limited (Australia) initiated research coverage of the Company. Healthcare and Biotechnology Analyst Thomas Duthy gave the Company a "speculative buy" recommendation with a valuation and price target of A$2.99.
Fiscal 2011 Second Quarter Financial Results Highlights
Fiscal 2011 second quarter cash and cash equivalents amounted to $23.6 million, as compared to $11 million at Fiscal 2010 year-end (June 30, 2010). This significant increase largely reflects the net proceeds of the Canadian portion of the recently completed Share Offers - $16,675,000. A further $12.2 million less expenses will be added in Q3 reflecting the early January, 2011 closing of the Australian portion of the Share Offers.
Consolidated revenues related to Bioniche Animal Health product sales for the second quarter were $6.1 million, as compared to $7.0 million in the second quarter of Fiscal 2010. Year-to-date revenue from product sales amounts to $12.8 million, compared to $12.9 million year-to-date in Fiscal 2010. Research collaborations and licensing revenue in Q2, Fiscal 2011 brought total revenue for the quarter to $11.4 million, compared to $13.8 million in the same period last year. Licensing revenue 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).
The Company is undergoing a period of intensive investment in the Animal Health & Food Safety Vaccine Manufacturing Centre under construction at its Belleville, Ontario corporate headquarters. This investment is reflected in the long-term corporate assets under Property, Plant and Equipment, which totals $23.2 million at the end of Q2. 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.
Research and development expenditures in the second quarter of Fiscal 2011 totalled $4.8 million, a 1.2% increase over 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 in Q2, Fiscal 2011 to $3.6 million from $1.6 million in the same period in Fiscal 2010. The increase is mainly attributable to the establishment of a retirement benefit plan.
The basic and fully-diluted net loss per share for the second quarter of Fiscal 2011 was ($0.04) compared to a gain per share of $0.04 in the same quarter in Fiscal 2010 reflecting license revenues for that period. Total Common Shares outstanding at December 31, 2010 were 81,897,104, as compared to 72,008,694 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 218 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 As at
December 31, June 30,
2010 2010
(thousands of Canadian dollars) $ $
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ASSETS
Current
Cash and cash equivalents 23,586 11,070
Accounts receivable 4,858 8,601
Income taxes receivable 119 63
Future income tax assets 71 197
Inventories 8,092 6,668
Prepaid expenses, deposits and other 1,984 793
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38,710 27,392
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Long-term
Property, plant and equipment 23,150 16,584
Intangible assets 6,479 6,500
Goodwill 456 456
Long-term accounts receivable 1,750 1,156
Future income tax assets 33 51
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70,578 52,139
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current
Accounts payable and accrued liabilities 11,360 9,716
Deferred government incentives 744 -
Current portion of long-term debt and obligations
under capital leases 527 256
Current portion of repayable government assistance 1,886 960
Current portion of non-refundable
deferred licensing revenue 1,486 1,486
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16,003 12,418
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Long-term
Accrued pension liability 1,934 -
Long-term debt 1,722 1,341
Obligations under capital leases 1,131 1,184
Repayable government assistance 11,806 6,965
Deferred government incentives 479 2,382
Non-refundable deferred licensing revenue 18,610 19,353
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51,685 43,643
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Shareholders' equity
Share capital 112,800 96,677
Other paid-in capital 8,593 8,700
Deficit (102,500) (96,881)
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18,893 8,496
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70,578 52,139
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Bioniche Life Sciences Inc.
INTERIM CONSOLIDATED STATEMENTS OF (LOSS)
INCOME, COMPREHENSIVE (LOSS) INCOME, AND
DEFICIT
(Unaudited)
For the three and six months ended December 31
Current Last
Current Last Year Year to Year to
(thousands of Canadian dollars, Quarter Quarter Date Date
except share and per share 2010 2009 2010 2009
amounts) $ $ $ $
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REVENUES
Sales 6,110 7,029 12,802 12,935
Research collaborations 854 - 1,644 -
Gain on disposal of intangible
assets - - - 883
Licensing 4,417 6,757 4,789 7,090
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11,381 13,786 19,235 20,908
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EXPENSES
Cost of sales (excluding
amortization) 2,873 3,294 6,040 6,065
Administration 3,616 1,646 5,516 3,431
Marketing and selling 1,878 1,469 3,395 2,950
Financial expenses 233 164 386 352
Amortization of property,
plant and equipment 253 260 491 567
Amortization and write-down of
intangible assets 208 189 407 431
Foreign exchange loss 150 144 257 264
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9,211 7,166 16,492 14,060
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Income before research and
development expenses 2,170 6,620 2,743 6,848
and other items
Research and development
expenses, gross 4,809 4,754 9,250 8,154
Repayable government assistance - - - 3,884
Less: government incentives,
net (530) (790) (1,034) (1,193)
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(Loss) income before income
taxes (2,109) 2,656 (5,473) (3,997)
Provision for income tax
expense - - 129 130
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Net (loss) income and
comprehensive (loss)
income for the period (2,109) 2,656 (5,602) (4,127)
Deficit, beginning of period (100,391) (102,075) (96,881) (95,292)
Premium on share redemption - - (17) -
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Deficit, end of period (102,500) (99,419) (102,500) (99,419)
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Basic and diluted net (loss)
income per share (0.03) 0.04 (0.07) (0.06)
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Weighted-average number of
common shares outstanding 81,897,104 72,008,694 77,466,755 71,941,789
Bioniche Life Sciences Inc.
INTERIM CONSOLIDATED STATEMENTS
OF CASH FLOWS
(Unaudited)
For the three and six months ended December 31
Current Last
Current Last Year Year to Year to
Quarter Quarter Date Date
2010 2009 2010 2009
(thousands of Canadian dollars) $ $ $ $
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OPERATING ACTIVITIES
Net income (loss) for the
period (2,109) 2,656 (5,602) (4,127)
Add (deduct) non-cash items:
Amortization 461 449 898 946
Unrealized foreign exchange
loss (gain) 21 1 62 (26)
Accreted interest on
discounted receivables and
interest-free loans and
amortization of financial
expenses 164 103 262 211
Stock-based compensation
expense 75 49 137 109
Employee share ownership plan 213 137 407 137
Accrued pension expense 1,934 - 1,934 -
Warrants issued to consultants - - 1 -
Repayable government assistance - - - 3,884
Amortization of deferred
government incentives (1,183) (667) (1,472) (844)
Licensing revenue (371) (371) (743) (704)
Write-down of intangible
assets - - - 52
Future income taxes - - 129 -
Gain on sale of intangible
assets - - - (883)
Deemed government assistance (16) (15) (31) (74)
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(811) 2,342 (4,018) (1,319)
Decrease in restricted cash - 911 - 1,037
Net change in non-cash working
capital balances 3,908 (1,034) 3,556 (6,028)
Net change in non-refundable
deferred licensing revenue - - - 22,286
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Cash provided by (used in)
operating activities 3,097 2,219 (462) 15,976
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INVESTING ACTIVITIES
Proceeds on settlement of
long-term accounts receivable - - 100 -
Government incentives received
on account of property, plant
and equipment 352 51 1,496 51
Proceeds on sale of intangible
assets - - - 606
Purchase of intangible assets (213) - (386) -
Procceds on disposal of property,
plant and equipment 6 6 6 6
Purchases of property, plant and
equipment (5,398) (1,136) (11,558) (1,375)
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Cash used in investing
activities (5,253) (1,079) (10,342) (712)
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FINANCING ACTIVITIES
Proceeds from deferred
government incentives 340 - 690 -
Proceeds from government
assistance 3,848 - 7,574 54
Proceeds from long-term debt 500 - 500 -
Proceeds from exercise of stock
options 57 - 184 -
Proceeds from exercise of
warrants 302 - 302 -
Proceeds from shares issued 16,675 - 16,675 -
Redemption of common shares - - (173) -
Payment of share issuance costs (2,198) - (2,198) -
Payment of financing fees - debt - - - (2,117)
Repayment of revolving credit
facility - - - (4,416)
Repayment of capital lease
obligations (130) (151) (228) (235)
Repayment of long-term debt 3 (141) (6) (150)
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Cash provided by (used in)
financing activities 19,397 (292) 23,320 (6,864)
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Net increase in cash and cash
equivalents during the period 17,241 848 12,516 8,400
Cash and cash equivalents,
beginning of period 6,345 13,502 11,070 5,950
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Cash and cash equivalents,
end of period 23,586 14,350 23,586 14,350
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SOURCE Bioniche Life Sciences Inc.
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