BELLEVILLE, Ontario, Nov. 7 /PRNewswire-FirstCall/ -- Bioniche Life Sciences Inc. , a research-based, technology-driven Canadian biopharmaceutical company, today announced that it has reached an agreement to sell two of its remaining assets associated with Bioniche Pharma Holdings Limited, the entity which now holds the shares of Bioniche Pharma Group Limited.
The Company has agreed with Bioniche Pharma Holdings Limited and the shareholders of that company to sell its 10% ownership position in Bioniche Pharma Holdings and its annual royalty payments for each of the next five years related to sales of Suplasyn(R) for a total of $6 million USD. Suplasyn(R) is a proprietary product for the treatment of osteoarthritis in human joints that was developed by the Company.
The Company’s Board of Directors has deemed these two assets as “non-core” in the context of corporate priorities. The $6 million USD generated from their sale will be used to support the Company’s strategic research and development projects, including partial repayment of its outstanding debt facilities.
“This is a critical point in the development of Bioniche,” said Graeme McRae, President & CEO of Bioniche Life Sciences Inc. “Resources must remain focused on two priorities: our proprietary cancer treatment that is entering Phase III trials and our E. coli O157:H7 cattle vaccine that is seeking marketing registrations.”
In human cancer, Mycobacterial Cell Wall-DNA Complex (MCC) -- trademarked Urocidin -- has been authorized by the United States Food and Drug Administration to begin a Phase III clinical program in non-muscle invasive bladder cancer. The Company believes there to be a large and unmet medical need in the treatment of this type of cancer.
The E. coli O157:H7 cattle vaccine has been tested for safety and efficacy in more than 30,000 animals and is demonstrating reductions in colonization and shedding of the bacteria by cattle. E. coli O157:H7 is a mutant strain of bacteria that releases toxins highly dangerous to humans. Exposure to these bacteria in food or water is regularly implicated in outbreaks of human disease.
After the sale of the above two assets, Bioniche will retain its potential earnout payments that relate to certain Bioniche Pharma Holdings performance targets.
The Company expects the transaction to be completed in December 2006.
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 188 skilled personnel and has three principal 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. 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, Manager of Corporate Communications & Investor Relations Bioniche Life Sciences Inc. Telephone: (613) 966-8058 ext. 1250 Cell: (613) 391-2097 Rachel Levine, Investor Relations The Global Consulting Group Tel: 646-284-9439 Rlevine@hfgcg.com
Bioniche Life Sciences Inc.
CONTACT: Jennifer Shea, Manager of Corporate Communications & InvestorRelations of Bioniche Life Sciences Inc., +1-613-966-8058, ext. 1250, orcell, +1-613-391-2097; or Rachel Levine, Investor Relations, The GlobalConsulting Group, +1-646-284-9439, or Rlevine@hfgcg.com, for Bioniche LifeSciences Inc.
Web site: http://www.bioniche.com//
