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Canada Business News and Press Releases
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(EMAILWIRE.COM, September 24, 2011 ) Press Release Distribution Services: http://tojongmboh.emailwire.com
BELLEVILLE, ON -- Bioniche Life Sciences Inc. (TSX: BNC) (ASX: BNC), a research-based, technology-driven Canadian biopharmaceutical company, provided shareholders with a corporate update on a conference call/web cast last evening. The purpose of the call was to discuss the Company's year-end financial results, specify its priorities and outline its plan to achieve profitability.
The financial results for the Company's 2011 fiscal year were released on September 14, 2011. The results showed an increase in both administrative and research and development expenditures, with a decrease in overall revenues due to a reduction in milestone revenues from the Company's human health development partner. The corporate burn rate (cash used in operations) was approximately $1 million per month in Fiscal 2011. The Company had $16.8 million in cash, cash equivalents and short-term investments at June 30, 2011.
Bioniche intends for its current cash resources to support operations until it achieves positive cash flow from operations. To manage cash flow through the commercialization of its late-stage development projects, Bioniche has imposed a series of spending restrictions. Such restrictions include, but are not limited to, a hiring freeze and material expenditure reductions for all departments.
Beyond such immediate measures, the major objective of reducing the corporate burn rate (cash used in operations will be achieved in three ways:
Increasing revenues from Animal Health product sales, with a focus on launching new products from the Company's internal development pipeline (for example, a canine oncology product that is based on the Company's Mycobacterial Cell Wall-DNA Complex (MCC) technology; MCC is currently in Phase III clinical testing for BCG-refractory, non-muscle-invasive human bladder cancer) .
Increasing Animal Health profits, by focusing on high margin products.
Reducing overheads as some of the Company's late-stage research projects mature. Late-stage research is more costly and, as products come to market, the research and development activity related to those products will cease.
"Our goal is to progressively reduce the burn rate from the current $1 million per month through the remainder of Fiscal 2012," said Graeme McRae, Chairman, President & CEO of Bioniche Life Sciences Inc. "In Fiscal 2013, our goal is to eliminate our burn rate altogether and show sustained profitability by the end of that year."
During the conference call/web cast, the Company also provided an update on its three divisions, including the Food Safety division, where work continues toward a U.S. conditional license for its EconicheTM E. coli O157 cattle vaccine from the U.S. Department of Agriculture (USDA). It is not clear when this license could be issued, but the Company notes that over half of the beef products sold in the U.S. are branded products and it has seen significant interest from within specific brands in the U.S. to implement vaccination as a risk reduction strategy once the Company's vaccine is conditionally licensed.
Meanwhile, the Company continues to very closely monitor Canadian and international opportunities for government mandating of E. coli O157 vaccination. The Company has been in contact with government and/or industry leaders in North America, Europe (specifically Sweden and the UK), Australia and New Zealand.
The new Animal Health and Food Safety Vaccine Manufacturing Centre at Company headquarters in Belleville, Ontario has been undergoing commissioning and validation. This is a complicated and lengthy process that is expected to continue until early 2012, after which production scale-up will occur. In terms of plant utilization, the Centre is capable of manufacturing other biologics and there are both Bioniche-developed and contract manufactured vaccine options for consideration. Canada imports in excess of $125 million dollars of Veterinary Biologics from the U.S. annually, representing a risk in the event that the supply chain becomes disrupted. The new Centre could be made available for the production of a variety of vaccines as national needs arise.
Conference Call/Web Cast Replay
A replay of the conference call will be available until September 28, 2011 at midnight by calling 1-855-859-2056 (passcode: 10564534#). The web cast will be available for replay until September 20, 2012 via this link:
http://event.on24.com/r.htm?e=357400&s=1&k=196F8E1949C7EF06BF11AE4846538BA0
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 and innovative products for human and animal health markets worldwide. The fully-integrated company employs more than 200 skilled personnel and has three operating divisions: Human Health, Animal Health, and Food Safety. The Company's primary goal is to develop and commercialize products that advance human or animal health and increase shareholder value. The Company was named one of the Top 50 Small and Medium-Sized Employers in Canada for 2010, based on employee opinion. 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.
Bioniche Life Sciences Inc.
Jennifer Shea
(613) 966-8058
Jennifer.Shea@Bioniche.com 
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