Bioniche Life Sciences Inc., a research-based, technology-driven Canadian biopharmaceutical company, announced financial results for its fiscal year ended June 30.
"The Company is undergoing a significant transition," said Graeme McRae, President & CEO. "The pending divestment of the Animal Health business and potential sale or partnering of the One Health/VMC business will change the face of the Company into a human pharmaceutical business with a Phase III bladder cancer product that could be selling in the market within the next two years. It should be noted that this is one of the few new bladder cancer technologies to have been developed in decades and it has been taken from inception to late-stage by our Company, and bladder cancer is the 4th most common cancer in North American men."
"The proceeds from the newly closed Canadian equity financing, along with additional funds to be advanced under the Paladin loan and cash in hand, will provide an approximate cash balance of $16 million," added McRae.
In a release on September 27, the Company noted that as a result of its decision to divest the Animal Health business, the Fiscal 2013 year-end financial statements have been segmented into continuing operations (Human Health and One Health business units) and discontinued operations (Animal Health business unit).
Fiscal 2013 Financial Results Highlights
The Company's continuing operations recorded income of $82,000 in Fiscal 2013, related to research collaborations. This compares to $2.0 million from this source in Fiscal 2012. In Fiscal 2012, the Company received reimbursement from its former development partner for Urocidin-related development costs. Such reimbursement was discontinued when the Company regained global rights to Urocidin in December, 2012.
Fiscal year-end cash, cash equivalents and short-term investments amounted to $4.2 million at June 30, as compared to $20.0 million at June 30, 2012, when the Company had just completed a US$20 million debt financing with Capital Royalty L.P. This reflects the debt from Paladin and the adjustment of the Capital Royalty loan following a renegotiation that was concluded in June.
The Company's total liabilities and shareholders' equity at June 30, is $61.5 million, as compared to $82.2 million at June 30, 2012.
The Company's consolidated cash flow used in operations for the year ended June 30, was ($15.7) million, as compared to cash used in operations of ($17.2) million in Fiscal 2012. The average monthly burn rate was $1.3 million for Fiscal 2013, as compared to $1.4 million for Fiscal 2012. Cash requirements to support financing have increased the Company's average monthly burn rate to approximately $1.6 million per month at the present time.
Administrative expenses for continuing operations were $6.3 million in Fiscal 2013, as compared to $7.2 million in Fiscal 2012. Marketing and selling expenses were $0.9 million in Fiscal 2013, as compared to $1.2 million in Fiscal 2012. Financial expenses were $8.5 million for Fiscal 2013, as compared to $3.1 million in Fiscal 2012. The increase in financial expenses relates primarily to the loss on extinguishment of the Company's debt with Capital Royalty, which was assumed by Paladin Labs on June 5.