BELLEVILLE, ON, May 9 /PRNewswire-FirstCall/ - Bioniche Life Sciences Inc. , a research-based, technology-driven Canadian biopharmaceutical company, today announced financial results for the third quarter of its 2008 fiscal year, ending March 31, 2008.
“One highlight of our third quarter was the notification by the U.S. Department of Agriculture (USDA) that our E. coli O157:H7 cattle vaccine is eligible for a conditional license,” said Graeme McRae, President & CEO of Bioniche Life Sciences Inc. “Another important event was the granting by the U.S. Food and Drug Administration (FDA) of a Fast Track designation for our second Phase III clinical trial in bladder cancer with our proprietary Mycobacterial Cell Wall-DNA Complex (MCC) - trademarked Urocidin. These regulatory breakthroughs are significant in facilitating market access for our two priority technologies.”
Fiscal 2008 Third Quarter Financial Results Highlights
For the three-month and nine-month periods ended March 31, 2008, consolidated revenues totalled $7.2 million and $19.6 million respectively, compared to $6.4 million and $20.1 million for the corresponding periods in Fiscal 2007. The increase in sales in the current quarter reflects increased sales of animal health products in the U.S. and export markets.
For the three-month and nine-month periods ended March 31, 2008, overall gross profit totalled $4.2 million and $11.4 million respectively, compared to $3.7 million and $11.4 million for the corresponding periods in Fiscal 2007. For the three-month and nine-month periods ended March 31, 2008, overall gross profit as a percentage of sales remained stable at 57.8% and 58.2% respectively, compared to 58.2% and 57.1% for the corresponding periods in Fiscal 2007. The gross profit margins increased this fiscal year as a result of improved efficiencies.
For the three-month and nine-month periods ended March 31, 2008, expenses before research and development totalled $4.3 million and $13.1 million respectively, compared to $4.4 million and $13.2 million for the corresponding periods in Fiscal 2007. Although the overall expenses for the three- and nine-month periods remain consistent, expense activity in the current quarter and year-to-date reflects increased marketing costs of $0.4 million and $1.3 million respectively related to the education and awareness program focused on the E. coli O157:H7 cattle vaccine and increased administration expenses. These increased costs were offset by reductions in interest expense and amortization of deferred financing fees.
For the three-month and nine-month periods ended March 31, 2008, overall gross research and development expenses totaled $4.4 million and $11.6 million respectively, compared to $4.2 million and $11.4 million for the corresponding periods in Fiscal 2007. The majority of these costs can be attributed to the ongoing Phase III clinical program with Urocidin(TM) in bladder cancer and the E. coli O157:H7 cattle vaccine development program.
For the three-month and nine-month periods ended March 31, 2008, basic and fully-diluted loss per share totalled $0.07 and $0.20 respectively, compared to a loss of $0.10 and $0.25 for the corresponding periods in Fiscal 2007. Total shares outstanding at March 31, 2008 were 65,564,779, as compared to 58,215,759 at March 31, 2007.
The Company also invested approximately $546,654, net of government assistance, in property, plant and equipment year-to-date.
Board Chairmanship
At its quarterly meeting held yesterday, the Company’s Board of Directors unanimously agreed to appoint Graeme McRae as Chair, in addition to his role as President & CEO. The appointment of a new Chair became necessary with the passing of the Company’s former Board Chair, Mr. Hy Isenbaum, last month.
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 200 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 Canada’s Top Ten Life Sciences Companies for 2008. 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.
CONTACT: Patrick Montpetit, CA, Vice-President and Chief Financial
Officer, Bioniche Life Sciences Inc., Telephone: (514) 697-6636,
Patrick.Montpetit@Bioniche.com; Jennifer Shea, Corporate Communications,
Investor & Government Relations Director, Bioniche Life Sciences Inc.,
Telephone: (613) 966-8058, Cell: (613) 391-2097, Jennifer.Shea@Bioniche.com
