Bioniche Life Sciences' revenue increases by 21% for the fiscal year 2009

Sep 21 2009

Bioniche Life Sciences Inc. (TSX: BNC), a research-based, technology-driven Canadian biopharmaceutical company, today announced financial results for its 2009 fiscal year ended June 30, 2009.

"We had a very successful year in terms of revenues generated by our base Animal Health business, experiencing 21% growth in a challenging global economy," said Graeme McRae, Chairman, President CEO of Bioniche Life Sciences Inc. "In addition, subsequent to the end of the fiscal year, we announced a transformative corporate event: The signing of a licensing agreement with Endo Pharmaceuticals Inc. for exclusive rights to develop and market UrocidinTM in the U.S. with an option for global rights."

Urocidin is a patented formulation of Mycobacterial Cell Wall-DNA Complex (MCC) developed by Bioniche for the treatment of non-muscle-invasive bladder cancer that is currently undergoing Phase III clinical testing.

Subsequent to the year-end, the Company received an up-front payment of US$20 million from Endo and executed a series of transactions improving its capital structure. At present, the Company reports that its unaudited cash position, inclusive of restricted cash, at the end of August, 2009, was $16.6 million. This strong cash position is the net result of the closing of the License, Development and Supply Agreement as explained above, the repayment of the revolving credit facility and associated fees of $6.2M (US$5.3M), the sale of U.S. licensing rights to a product in the animal health market subsequent to June 30, 2009 for $0.9M (US$0.8M), fourth quarter working capital variations, and repayment of overdue outstanding payables. More information on the partnership transaction and other subsequent events is provided in the Company's Fiscal 2009 Management's Discussion and Analysis dated September 17, 2009.

Fiscal 2009 Financial Results Highlights

Consolidated revenues for the fiscal year increased by 21% to $33.3 million, as compared to $27.5 million in Fiscal 2008. Increased sales of animal health products in all markets, combined with favourable exchange rates, contributed to this result. The overall gross profit margin was 57% this fiscal year, as compared to 54% in Fiscal 2008.

For the year ended June 30, 2009, expenses before research and development totaled $17.5 million, compared to $16.7 million for Fiscal 2008. Importantly, the Company reduced its administration and marketing expenses by 10% from $13.4 million in Fiscal 2008 to $12.2 million in Fiscal 2009, as a result of certain temporary cutbacks necessary during a period of financial challenge. Management expects administration and marketing costs to increase again during Fiscal 2010 to assure the sustainability of the business. This, combined with a non-cash items increase and other minor variations, resulted in an increase of $0.8 million, or 5%.

Gross research and development (R D) expenses decreased by $2.7 million in Fiscal 2009, reaching $13.3 million compared to $16.0 million in Fiscal 2008. The majority of these costs continue to be attributed to the ongoing Phase III clinical program for the Company's Urocidin(TM) bladder cancer therapy and the E. coli O157 cattle vaccine development program.

The basic and fully-diluted net loss per share for Fiscal 2009 was ($0.15) compared to a net loss per share of ($0.26) in Fiscal 2008.

Earnings before interest, taxes, depreciation, amortization and foreign exchange were $5.7 million, as compared to $1.4 million in Fiscal 2008. "This is a significant increase year over year that can be directly attributed to the efforts of the Bioniche Animal Health sales and marketing team," said Mr. McRae.

At yesterday's meeting of the Bioniche Life Sciences Inc. Board of Directors, Mr. Nick Photiades was appointed as an independent Director. Mr. Photiades is a management and strategic planning consultant. In November, 2008, he retired after a long career with the Business Development Bank of Canada, where he was Senior Director, Life Sciences, Venture Capital Division. Mr. Photiades holds a Bachelor of Science degree in Physics from Concordia University and a Graduate Diploma in Management from McGill University. He has served as a director in several public and private high technology companies, mainly in the biotechnology area; he also served on the Board of Directors of the Chamber of Commerce of Metropolitan Montreal; and presently serves on the St. Mary's Hospital Foundation Board.

The Company also welcomes a new Chief Financial Officer: Mr. Brian Ford. Brian is an accomplished chartered accountant and financial professional with over 26 years of experience serving private corporations and publicly traded entities. Most recently, he was the Proprietor of PetersFord Consulting, a firm focused on finance and business risk services. Previously, he held several increasingly responsible positions with Ernst Young, his last position being Principal of Business Risk Services in the firm's Toronto office. He has earned a Graduate Diploma in Accounting from the University of McGill, a B.A. (Economics, History, English) from the University of Guelph, and is a Member of the Ontario Institute of Chartered Accountants. With his multidisciplinary skill set, together with core skills in accounting, auditing, and finance, Brian brings a portfolio of experience that provides significant value to the Company.