Bioniche Life Sciences Inc. Reports Q2, Fiscal 2012 Results
- Animal Health quarterly product sales increase by 21% over same period in Fiscal 2011 -
(all figures are in Canadian dollars unless otherwise noted)
BELLEVILLE, ON, February 8, 2012 – Bioniche Life Sciences Inc. (TSX: BNC) (ASX: BNC), a research-based, technology-driven Canadian biopharmaceutical company, today announced financial results for the second quarter of its 2012 fiscal year (ended December 31, 2011).
“We are pleased to see the increase in sales revenues related to our Animal Health products in the second quarter as compared to the same period last year, as well as on a year-to-date basis,” said Mr. Graeme McRae, Chairman, President & CEO of Bioniche Life Sciences Inc.
“This reflects double-digit increases in sales of key products in Australia and South America, and stabilizing sales in North America and Europe, notwithstanding a stronger Canadian dollar. Our reproductive franchise continues to be an important part of our business focus.”
Fiscal 2012 Second Quarter Financial Results Highlights
Revenues associated with Animal Health product sales increased in the quarter by $1.3 million as compared to the same quarter in Fiscal 2011 (revenues increased from $6.1 million to $7.4 million), with gross margins of 52.4% in the period (vs. 51.4% in Fiscal 2011).
Consolidated revenues for the quarter were $8.1 million, as compared to $11.0 million in the same period in Fiscal 2011. On a year-to-date basis, consolidated revenues are $14.9 million as compared to $18.5 million for the first six months in 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 as of June 30, 2011, amounted to $6.9 million at December 31, 2011, as compared to $16.9 million at June 30, 2011. This does not include the $2.75 million outstanding receivable from the Business Development Bank of Canada that was received subsequent to quarter end, bringing the cash and cash equivalents to $9.65 million.
“Shareholders will note the return of a going concern uncertainty note in our Q2 financial statements, which indicates that the Company has insufficient cash resources on hand for a 12-month operating runway,” said Mr. Brian Ford, Chief Financial Officer of Bioniche Life Sciences Inc. “What the going concern note does not reflect is the concerted efforts by the Company to curtail non-core expenditures going forward which will enable our cash resources to last longer, nor does it reflect our seeking of non-dilutive financing, such as a revolving credit facility or royalty stream debt financing, in upcoming months.”
The Company has $22.9 million in current assets at December 31, 2011, compared with $33.2 million in current assets at June 30, 2011. At December 31, 2011, the Company’s net working capital totalled $15.6 million, as compared to $22.9 million at June 30, 2011.
The Company’s burn rate (cash used in operations) was approximately $1.0 million per month during the second quarter of Fiscal 2012 as compared to an average of $1.2 million per month during the first quarter.
The Company continues to make efforts to reduce its burn rate and a number of cost containment and revenue-generating initiatives are expected to have a positive impact in the second half of Fiscal 2012. These include a strengthening of Animal Health product sales, the deferment of certain Research and Development projects, and continued scrutiny around administrative expenditures. The Company remains committed to steadily decreasing its burn rate with a goal of eliminating the burn rate altogether and showing sustainable profitability by the end of Fiscal 2013.
Research and Development expenditures for the quarter ended December 31, 2011 were $4.7 million, as compared to $5.0 million for the same period in Fiscal 2011. On a year-to-date basis, these expenditures amount to $9.5 million in Fiscal 2012, as compared to $9.6 million in Fiscal 2011. The reduction in R&D expenditures in Fiscal 2012 relates to the reduction of certain Human Health pre-clinical development activities.
Administrative expenditures for the quarter ended December 31, 2011 were $2.5 million, as compared to $3.5 million in the same period in Fiscal 2011. Year-to-date expenditures total $5.0 million, as compared to $5.5 million in Fiscal 2011. Marketing and selling expenditures were $1.6 million in the second quarter, as compared to $1.9 million in the same period in Fiscal 2011. Year-to-date expenditures in this category amounted to $3.3 million, as compared to $3.5 million for the same six months in Fiscal 2011. The expenditure reductions in administration, marketing and selling relate to cost-containment initiatives being undertaken, as well as the recording in Fiscal 2011 of a non-recurring future employee benefit of $1.6 million. It should be noted that the original actuarial valuation of this defined benefit plan obligation was overstated and this was corrected in the second quarter. This resulted in restatements of certain figures which are reflected in Note 13i of the Company’s second quarter unaudited condensed interim consolidated financial statements.
The basic and fully-diluted net loss for the three-month period ending December 31, 2011 was $(0.04) per share, as compared to $(0.03) in the same period of Fiscal 2011. The year-to-date basic and fully diluted net loss is $(0.08) per share, compared to $(0.06) in the same period last year.
The weighted average number of Common Shares outstanding for the six-month period ended December 31, 2011 is 102,443,797. This compares to 77,460,755 in 2010. The completion of concurrent Share Offers in Canada and Australia in December 2010/January 2011 contributed to this change.
View The Q2 Fiscal Report
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. Production scale-up is now getting underway. This involves moving the Company’s EconicheTM cattle vaccine against E. coli O157 from the production laboratory into the VMC fermentors. It is expected that a first commercial batch of EconicheTM will be made in the VMC by mid-2012.
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 214 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. Bioniche has been named one of the Top 50 Best Small and Medium-Sized Employers in Canada for 2010. 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.
For further information, please contact:
Jennifer Shea, Vice-President, Communications, Investor & Government Relations
Bioniche Life Sciences Inc.
Telephone: (613) 966-8058
Cell: (613) 391-2097