- sales of Animal Health products 10% ahead of Fiscal 2011 on a year-to-date basis -
(all figures are in Canadian dollars unless otherwise noted)
BELLEVILLE, ON, May 9, 2012 /PRNewswire/ - 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 2012 fiscal year (ended March 31, 2012).
"We continue to see growth in sales of Animal Health products, representing a ten percent increase on a year-to-date basis over Fiscal 2011," said Mr. Graeme McRae, Chairman, President & CEO of Bioniche Life Sciences Inc. "Further growth is expected heading into Fiscal 2013 as we launch new Animal Health products in the marketplace, including a canine cancer product that could be launched as early as July this year in the U.S. and Canada."
Corporate Burn Rate
The Company continues to monitor and work to control its burn rate (cash used in operations). The Company's burn rate was approximately $1.4 million per month during the third quarter of Fiscal 2012 as compared to an average of $1.1 million per month during the first two quarters. The increase in burn rate can be attributed to investments to support new product launches in Animal Health. Burn rate control efforts going forward include a strengthening of Animal Health product sales, the deferment of certain Research and Development projects, and continued scrutiny around administrative expenditures. At the same time, the Company continues its efforts to identify new Human Health opportunities for its proprietary Mycobacterial Cell Wall-DNA Complex (MCC) technology. UrocidinTM, a formulation of MCC for non-muscle-invasive bladder cancer that is refractory to BCG, is undergoing Phase III clinical testing. An international trial is being conducted by the Company's licensing partner, Endo Pharmaceuticals.
Fiscal 2012 Third Quarter Financial Results Highlights
Revenues associated with Animal Health product sales increased in the quarter by $1.2 million as compared to the same quarter in Fiscal 2011 (revenues increased from $7.2 million to $8.4 million), with gross margins of 48.7% in the period (vs. 48% in Q3, Fiscal 2011). A reclassification of depreciation under International Financial Reporting Standards (IFRS) has reduced the margin by 1.3% in the period. On a year-to-date basis, Animal Health sales revenues are $21.9 million, as compared to $20 million for the first nine months of Fiscal 2011 with gross margins of 50.3% in Fiscal 2012 as compared to 50.1% last year.
Consolidated revenues for the quarter were $8.7 million, as compared to $8.1 million in the same period in Fiscal 2011. On a year-to-date basis, consolidated revenues are $23.7 million as compared to $26.6 million for the first nine months of Fiscal 2011. It should be noted that certain non-recurring licensing revenue was included for the Fiscal 2011 reporting period.
Cash and cash equivalents, including other current financial assets, amounted to $5.3 million at March 31, 2012, as compared to $16.8 million at June 30, 2011. This does not include the US$20 million debt financing that was received subsequent to quarter-end.
Research and Development expenditures for the quarters ended March 31, 2011 and 2012 were $5.5 million. On a year-to-date basis, these expenditures amount to $15.0 million in Fiscal 2012, as compared to $15.2 million in Fiscal 2011.
Administrative expenditures for the quarter ended March 31, 2012 were $2.4 million, as compared to $2.5 million in the same period in Fiscal 2011. Year-to-date administrative expenditures total $7.4 million, as compared to $7.9 million in Fiscal 2011. Marketing and selling expenditures were $1.8 million in the third quarter, as compared to $1.7 million in the same period in Fiscal 2011. Year-to-date expenditures in this category amounted to $5.1 million, as compared to $5.2 million for the same nine months of Fiscal 2011. It should be noted that the Company plans to invest additional resources in marketing and selling during Fiscal 2013 in order to enhance penetration in existing markets and develop new markets for Animal Health products to improve revenues and cash flow.
The basic and fully-diluted net loss for the three-month period ending March 31, 2012 was $(0.06) per share compared to $(0.05) per share in the same period in Fiscal 2011. The year-to-date basic and fully diluted net loss is $(0.14) per share, compared to $(0.12) in the same period last year.
The weighted average number of Common Shares outstanding for the nine-month period ended March 31, 2012 is 102,627,328. This compares to 84,605,217 at March 31, 2011. The completion of concurrent Share Offers in Canada and Australia in December 2010/January 2011 contributed to this change.
Vaccine Manufacturing Centre Validation/Commissioning
The Company's Animal Health and Food Safety Vaccine Manufacturing Centre (VMC) in Belleville, Ontario has been undergoing validation and commissioning to meet North American production standards for the past several months. This process has proceeded according to plan and is expected to be completed by mid-2012. A satisfactory review of documentation related to procedures will be required by the regulatory agency before commercial production can commence.
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.
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
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(thousands of Canadian dollars)
(Unaudited)
| As at |
March 31, 2012 |
June 30, 2011 |
||||
|
ASSETS Current |
[Restated] | |||||
| Cash and cash equivalents | 5,258 | 15,353 | ||||
| Other current financial assets | — | 1,493 | ||||
| Trade and other receivables | 6,486 | 6,460 | ||||
| Income taxes receivable | 270 | 254 | ||||
| Inventories | 8,694 | 8,523 | ||||
| Prepayments | 1,314 | 1,067 | ||||
| 22,022 | 33,150 | |||||
| Non-current | ||||||
| Property, plant and equipment | 39,856 | 37,582 | ||||
| Intangible assets | 5,479 | 6,306 | ||||
| Goodwill | 456 | 456 | ||||
| Other non-current receivables | 1,805 | 1,756 | ||||
| Deferred tax assets | 671 | 540 | ||||
| Total assets | 70,289 | 79,790 | ||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||
| Current | ||||||
| Trade and other payables | 7,394 | 8,520 | ||||
|
Current portion of long-term debt and obligations under finance leases |
953 | 700 | ||||
| Current portion of repayable government assistance | 366 | 1,049 | ||||
| 8,713 | 10,269 | |||||
| Non-current | ||||||
| Long-term debt | 4,498 | 2,171 | ||||
| Obligations under finance leases | 651 | 546 | ||||
| Repayable government assistance | 30,319 | 27,456 | ||||
| Employee benefit liability | 1,896 | 1,808 | ||||
| 46,077 | 42,250 | |||||
| Shareholders' equity | ||||||
| Share capital | 126,136 | 125,630 | ||||
| Other paid-in capital | 9,315 | 8,771 | ||||
| Deficit | (110,124) | (95,687) | ||||
| Foreign currency translation reserve | (1,115) | (1,174) | ||||
| Total shareholders' equity | 24,212 | 37,540 | ||||
| Total liabilities and shareholders' equity | 70,289 | 79,790 | ||||
Bioniche Life Sciences Inc.
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN
SHAREHOLDERS' EQUITY
|
(Unaudited) (thousands of Canadian dollars) |
Common shares $ |
Preferred shares Series I $ |
Preferred shares Series II $ |
Total Share Capital $ |
Other paid-in Capital $ |
Deficit $ |
Foreign currency translation reserve $ |
Total $ |
|||||||||||
|
Balance, July 1, 2010 [Restated] |
87,717 | 161 | 8,799 | 96,677 | 8,813 | (82,094) | (84) | 23,312 | |||||||||||
| Net loss for the period | — | — | — | — | — | (10,189) | — | (10,189) | |||||||||||
|
Exchange difference on translation of foreign operations |
— | — | — | — | — | — | (875) | (875) | |||||||||||
|
Issued under employee Share ownership plan |
618 | — | — | 618 | — | — | — | 618 | |||||||||||
| Preferred Shares converted | 8,799 | — | (8,799) | — | — | — | — | — | |||||||||||
| Options issued to a consultant | — | — | — | — | 1 | — | — | 1 | |||||||||||
| Shares issued | 28,929 | — | — | 28,929 | — | — | — | 28,929 | |||||||||||
| Share issuance costs | (2,969) | — | — | (2,969) | — | — | — | (2,969) | |||||||||||
| Fair value of stock Options vested | — | — | — | — | 402 | — | — | 402 | |||||||||||
| Warrants exercised | 703 | — | — | 703 | (257) | — | — | 446 | |||||||||||
| Options exercised | 1,250 | — | — | 1,250 | (274) | — | — | 976 | |||||||||||
| Share redemption | (156) | — | — | (156) | — | (17) | — | (173) | |||||||||||
| Balance, March 31, 2011 | 124,891 | 161 | — | 125,052 | 8,685 | (92,300) | (959) | 40,478 | |||||||||||
|
Balance, July 1, 2011 [Restated] |
125,469 | 161 | — | 125,630 | 8,771 | (95,687) | (1,174) | 37,540 | |||||||||||
| Net loss for the period | — | — | — | — | — | (14,437) | — | (14,437) | |||||||||||
|
Exchange difference on translation of foreign operations |
— | — | — | — | — | — | 59 | 59 | |||||||||||
|
Issued under employee Share ownership plan |
659 | — | — | 659 | — | — | — | 659 | |||||||||||
| Fair value of stock Options vested | — | — | — | — | 541 | — | — | 541 | |||||||||||
| Share redemption | — | (161) | — | (161) | 5 | — | — | (156) | |||||||||||
| Options issued to a consultant | — | — | — | — | 1 | — | — | 1 | |||||||||||
| Options exercised | 8 | — | — | 8 | (3) | — | — | 5 | |||||||||||
| Balance, March 31, 2012 | 126,136 | — | — | 126,136 | 9,315 | (110,124) | (1,115) | 24,212 |
Bioniche Life Sciences Inc.
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF LOSS AND COMPREHENSIVE LOSS
(thousands of Canadian dollars, except share and per share amounts)
(Unaudited)
|
Three months ended March 31 |
Nine months ended March 31 |
||||||||||||
| 2012 | 2011 | 2012 | 2011 | ||||||||||
| [Restated] | [Restated] | ||||||||||||
| REVENUES | |||||||||||||
| Sales | 8,377 | 7,177 | 21,857 | 19,978 | |||||||||
| Licensing | — | — | — | 4,046 | |||||||||
| Research collaborations | 370 | 919 | 1,821 | 2,563 | |||||||||
| 8,747 | 8,096 | 23,678 | 26,587 | ||||||||||
| EXPENSES | |||||||||||||
| Cost of sales | 4,294 | 3,729 | 10,871 | 9,966 | |||||||||
| Administrative | 2,406 | 2,236 | 7,361 | 7,948 | |||||||||
| Marketing and selling | 1,759 | 1,691 | 5,092 | 5,186 | |||||||||
| Financial expenses | 279 | 262 | 504 | 772 | |||||||||
| Foreign exchange (gain) loss | 280 | 424 | (246) | (607) | |||||||||
| 9,018 | 8,342 | 23,582 | 23,265 | ||||||||||
|
Income (loss) before research and development expenses and income taxes |
(271) | (246) | 96 | 3,322 | |||||||||
| Research and development expenses, gross | 5,532 | 5,541 | 15,031 | 15,189 | |||||||||
| Less: government assistance | — | (653) | (372) | (1,687) | |||||||||
| Loss before income taxes | (5,803) | (5,134) | (14,563) | (10,180) | |||||||||
| Provision (recovery) of income tax | 87 | 85 | (126) | 9 | |||||||||
| Net loss for the period | (5,890) | (5,219) | (14,437) | (10,189) | |||||||||
|
OTHER COMPREHENSIVE (LOSS) INCOME Exchange difference on translation of foreign operations |
33 | 55 | 59 | (875) | |||||||||
| Total comprehensive loss for the period | (5,857) | (5,164) | (14,378) | (11,064) | |||||||||
| Basic and diluted net loss per Share | (0.06) | (0.05) | (0.14) | (0.12) | |||||||||
| Weighted-average number of Common Shares outstanding | 102,998,425 | 99,199,406 | 102,627,328 | 84,605,217 | |||||||||
Bioniche Life Sciences Inc.
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS
(thousands of Canadian dollars)
(Unaudited)
|
Nine months ended March 31, |
Nine months ended March 31, |
|||||||||
| 2012 | 2011 | |||||||||
| OPERATING ACTIVITIES | [Restated] | |||||||||
| Net loss for the period | (14,437) | (10,189) | ||||||||
| Items not affecting cash and other reconciling items: | ||||||||||
| Depreciation of property, plant and equipment | 1,121 | 998 | ||||||||
| Amortization of intangible assets | 730 | 639 | ||||||||
| Unrealized foreign exchange gain | (140) | (922) | ||||||||
|
Accreted interest on discounted receivables and interest-free loans |
447 | 687 | ||||||||
| Stock-based compensation expense | 541 | 402 | ||||||||
| Employee Share ownership plan | 657 | 624 | ||||||||
| Employee future benefit | 88 | 1,778 | ||||||||
| Deemed government assistance | (7) | (57) | ||||||||
| Amortization of deferred government incentives | — | (1,005) | ||||||||
| Write off of intangible asset | 143 | — | ||||||||
| Deferred income taxes | (126) | 9 | ||||||||
| Other | 1 | 1 | ||||||||
| (10,982) | (7,035) | |||||||||
| Net change in non-cash working capital balances | 203 | (1,177) | ||||||||
| Cash used in operating activities | (10,779) | (8,212) | ||||||||
| INVESTING ACTIVITIES | ||||||||||
| Purchases of property, plant and equipment | (3,966) | (13,990) | ||||||||
| Proceeds on settlement of other non-current receivables | — | 100 | ||||||||
| Proceeds on sale of other current financial asset | 1,493 | — | ||||||||
| Proceeds on disposal of property, plant and equipment | 8 | 24 | ||||||||
| Purchases of intangible assets | (46) | (564) | ||||||||
| Cash used in investing activities | (2,511) | (14,430) | ||||||||
| FINANCING ACTIVITIES | ||||||||||
| Proceeds from government assistance | 1,230 | 10,702 | ||||||||
| Proceeds from deferred government incentives | — | 690 | ||||||||
| Repayment of government assistance | (57) | (960) | ||||||||
| Proceeds from long-term debt | 2,750 | 500 | ||||||||
| Proceeds from exercise of Warrants | — | 446 | ||||||||
| Proceeds on exercise of stock Options | 5 | 976 | ||||||||
| Proceeds from Shares issued | — | 28,929 | ||||||||
| Payment of Share issuance costs | — | (2,969) | ||||||||
| Redemption of Shares | (156) | (173) | ||||||||
| Repayment of finance lease obligations | (322) | (343) | ||||||||
| Repayment of long-term debt | (255) | (15) | ||||||||
| Cash provided by financing activities | 3,195 | 37,783 | ||||||||
|
Net increase (decrease) in cash and cash equivalents during the period |
(10,095) | 15,141 | ||||||||
| Cash and cash equivalents, beginning of period | 15,353 | 11,070 | ||||||||
| Cash and cash equivalents, end of period | 5,258 | 26,211 |
SOURCE Bioniche Life Sciences Inc.
