BELLEVILLE, Ontario, May 3 /PRNewswire-FirstCall/ -- Bioniche Life Sciences Inc. (TSX: BNC), a research-based, technology-driven Canadian biopharmaceutical company, today released third quarter results for Fiscal 2007 (for the period ended March 31, 2007).
Highlights for the period and subsequent to the quarter include (figures in Canadian dollars unless otherwise specified):
-- Year-to-date, total revenues reached $20.1 million as compared to $19.1
million reported in the same period last year, a 5% increase. Looking
at revenues in the animal health business, an 8% increase was
experienced on a year-to-date basis, with revenues reaching $19.6 as
compared to $18.2 in the same period last year. A strong marketing
effort by the Company's animal health sales team and a good response
from customers to a sales initiative launched last August were
contributing factors. Total revenues for the third quarter decreased by
7% to $6.4 million as compared to $6.9 million for the same period last
year.
-- On March 13, 2007, the Company completed a private equity offering. The
Company issued 14,583,333 units at a price of $1.20 per unit for gross
subscription proceeds of $17.5 million.
-- On April 18, 2007, the Company repaid US$523,306 on the secured
convertible term note with 670,943 shares at the price per share of
$0.88, as set out under the terms of the agreement with Laurus Master
Funds. This eliminates the secured convertible term debt with Laurus,
which began as a three-year, US$7 million loan in December, 2005.
Graeme McRae, President & CEO of Bioniche Life Sciences Inc., noted: "Eliminating our long-term convertible debt and generating additional operating funds to advance our priority projects have been significant recent accomplishments. We are encouraged by the support of our long-term shareholders, as well as that of our more recent investors. We expect to achieve further value-creating milestones for all of our shareholders in 2007."
Third Quarter Results Highlights (figures in Canadian dollars unless otherwise specified)
The Company's consolidated revenues for the third quarter of Fiscal 2007 reached $6.4 million as compared to $6.9 million in the same period last year. This decrease of $0.5 million, or 7%, reflects the timing of sales for two of the Company's reproductive products.
Expenses other than research and development totaled $4.4 million for the three-month period ending March 31, 2007, as compared to $4.9 million recorded in the same period last year.
The earnings before interest, taxes, depreciation and amortization (EBITDA) before research and development and other items for the three months ending March 31, 2007 totaled $0.2 million as compared to $1.4 million recorded in the same period last year. This decrease reflects a reduction in gross profit margins during the quarter.
Gross research and development expenses in the three-month period ending March 31, 2007 totaled $4.2 million, as compared to $3.5 million in the same period last year. This increase of $0.7 million, or 20%, relates to increased staffing within the Bioniche Therapeutics clinical group and third party costs associated with the Phase III clinical trial, along with increased third party and administrative support.
Net loss from continuing operations for the three months ending March 31, 2007 totaled $(4.5) million, or $(0.10) per share (basic and fully diluted), compared with $(3.3) million, or $(0.9) per share, recorded in the same period last year.
Year-to-Date (9 months) Financial Results Highlights
On a year-to-date basis, consolidated revenues totaled $20.1 million, compared to $19.1 million for the same period last year. This increase of $1.0 million, or 5%, primarily reflects increased sales for two of the Company's reproductive products, Folltropin(R)-V and Cue-Mate, with increased promotional efforts in the first quarter.
Expenses other than research and development were $13.2 million in the first nine months, compared to $13.9 million for the same period last year, a decrease of 5%.
EBITDA before research and development and other items were $1.9 million for the first nine months, which compares to a $2.6 million recorded in the same period last year. The 27% decrease reflects a reduction in gross margins due to ongoing inventory adjustments on one of the Company's foreign product lines.
Gross research and development expenses for the first nine months totaled $11.4 million, as compared to $9.5 million reported in the same period last year. The 20% increase relates to increased staffing costs to support the start of the Phase III clinical trial with Urocidin in the treatment of non muscle-invasive bladder cancer. Third party costs and increased administrative support costs related to the Phase III program were also incurred in this period.
Net loss from continuing operations for the period reached $(10.2) million or $(0.25) per share (basic and fully diluted) compared with $(13.0) million or $(0.35) per share for the previous year.
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 approximately 185 skilled personnel and has three operating business units: 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. For more information, please visit http://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:
Patrick Montpetit, CA
Vice-President and Chief Financial Officer
Bioniche Life Sciences Inc.
Telephone: (514) 697-6636 ext. 2245
