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Bioniche Reports Fiscal 2008 Third Quarter
Date:5/9/2008

- sales increase over Q3 '07; gross profit remains stable; net loss per

share improves -

(all figures are in Canadian dollars unless otherwise noted)

BELLEVILLE, ON, May 9 /PRNewswire-FirstCall/ - Bioniche Life Sciences Inc. (TSX: BNC), 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 grent

made in shares - - 1,392,902

Warrants issued in

connection with

the convertible

term note - - 93,023

Revolving debt

principal payments

made in shares - - 1,602,963

Unit offering, net

of issue costs - - 15,533,947

-----------------------------------------------------------

Balance, March 31,

2007 (64,033,990) - 32,440,018

-----------------------------------------------------------

-----------------------------------------------------------

Balance, June 30,

2007 (68,630,615) - 29,109,976

Transition

adjustment 134,674 - 134,674

Net loss for the

period (12,672,233) - (12,672,233)

Issued under

employee share

ownership plan - - 456,451

Stock-based

compensation - - 273,559

Shares issued to

directors - - 76,502

Share bonus - - 408,340

Revolving debt

principal payment

made in shares - - 1,780,100

Adjustment for

conversion of

fractional shares - - -

Warrants issued in

connection with

the revolving debt - - 92,730

-----------------------------------------------------------

Balance, March 31,

2008 (81,168,174) - 19,660,099

-----------------------------------------------------------

-----------------------------------------------------------

Bioniche Life Sciences Inc.

INTERIM CONSOLIDATED STATEMENTS OF LOSS

(Unaudited)

For the three and nine months ended March 31

Current Last Year Current Last

Quarter Quarter Year to Date Year to Date

2008 2007 2008 2007

$ $ $ $

-------------------------------------------------------------------------

REVENUE

Sales 7,185,970 6,397,832 19,605,015 20,054,734

Cost of sales 3,033,310 2,672,384 8,199,792 8,608,512

-------------------------------------------------------------------------

Gross profit 4,152,660 3,725,448 11,405,223 11,446,222

-------------------------------------------------------------------------

EXPENSES

Administration 1,609,317 1,870,869 5,212,451 4,603,108

Marketing and

selling 1,734,872 1,550,481 5,104,963 4,456,518

Quality assurance 202,946 174,036 573,730 512,082

Interest on

long-term debt 36,748 78,336 110,678 573,081

Other interest

(income) 27,120 26,047 (57,226) 170,778

Accreted interest

on convertible

term note - 59,831 - 679,244

Amortization of

property, plant

and equipment 308,125 289,502 872,287 880,348

Amortization of

intangible assets 214,130 214,130 642,387 642,389

Amortization of

deferred financing

fees 283,608 137,464 436,415 946,722

Foreign exchange

loss (gain) (71,387) (27,597) 245,128 (311,448)

-------------------------------------------------------------------------

4,345,479 4,373,099 13,140,813 13,152,822

-------------------------------------------------------------------------

Loss before research

and development

expenses and other

items (192,819) (647,651) (1,735,590) (1,706,600)

Research and

development

expenses, gross 4,416,249 4,199,003 11,646,663 11,350,443

Less: government

incentives, net (250,659) (425,667) (969,242) (1,262,201)

Change in

unrealized loss on

foreign currency

embedded

derivatives 191,096 - 52,893 -

Impairment of

investment - - - 175,000

Loss on sale of

investment - - - 17,157

Gain on sale of

right to future

royalty stream - - - (2,127,587)

-------------------------------------------------------------------------

Loss before income

taxes (4,549,505) (4,420,987) (12,465,904) (9,859,412)

Provision for

income taxes 92,805 89,447 206,329 304,957

-------------------------------------------------------------------------

Net loss for the

period (4,642,310) (4,510,434) (12,672,233) (10,164,369)

-------------------------------------------------------------------------

-------------------------------------------------------------------------

Basic and diluted

net loss per share (0.07) (0.10) (0.20) (0.25)

-------------------------------------------------------------------------

-------------------------------------------------------------------------

Weighted-average

number of common

shares

outstanding 62,791,700 44,274,985 62,246,607 41,242,672

Bioniche Life Sciences Inc.

INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

For the three and nine months ended March 31

Current Last Year Current Last

Quarter Quarter Year to Date Year to Date

2008 2007 2008 2007

$ $ $ $

-------------------------------------------------------------------------

OPERATING ACTIVITIES

Net loss for the

period (4,642,310) (4,510,434) (12,672,233) (10,164,369)

Add (deduct)

non-cash items:

Amortization 805,863 641,096 1,951,089 2,469,459

Accreted interest

on convertible

term note - 59,831 - 679,244

Change in

unrealized loss

(gain) on

foreign currency

embedded

derivative 191,096 - 52,893 -

Unrealized foreign

exchange loss

(gain) 231,039 (8,914) 177,593 336,730

Stock-based

compensation 94,585 55,242 273,559 166,264

Share compensation 126,719 - 380,156 81,000

Employee share

ownership plan 188,061 146,256 499,383 358,918

Impairment of

investment - - - 175,000

Loss on sale of

investment - - - 17,157

Gain on sale of

right to future

royalty stream - - - (2,127,587)

-------------------------------------------------------------------------

(3,004,947) (3,616,923) (9,337,560) (8,008,184)

Net change in

non-cash working

capital balances 1,103,295 (1,906,198) 272,530 (808,490)

-------------------------------------------------------------------------

Cash used in

operating

activities (1,901,652) (5,523,121) (9,065,030) (8,816,674)

-------------------------------------------------------------------------

INVESTING ACTIVITIES

Proceeds from

maturity of

short-term

investments - - 9,500,000 -

Proceeds from sale

of investment - - - 3,196,200

Proceeds from sale

of right to future

royalty stream - - - 3,652,800

Government

incentives received

on account of

property, plant and

equipment - - 4,641 30,224

Proceeds on disposal

of property, plant

and equipment - 2,124 - 2,124

Purchase of property,

plant and equipment (274,257) (27,172) (546,654) (209,248)

-------------------------------------------------------------------------

Cash provided by

(used in) investing

activities (274,257) (25,048) 8,957,987 6,672,100

-------------------------------------------------------------------------

FINANCING ACTIVITIES

Proceeds from units

issued - 15,535,747 - 15,535,747

Financing fees paid (43,000) (43,000)

Proceeds from

convertible term

note 1,750,000 - 1,750,000 -

Proceeds from

deferred

government

incentives - - 49,965 74,282

Proceeds from

revolving credit

facility 8,500,864 5,895,962 21,952,839 15,948,279

Repayment of

revolving credit

facility (5,838,724) (4,706,109) (16,219,244) (15,411,793)

Repayment of

obligations under

capital lease (20,663) (26,126) (84,986) (84,385)

Repayment of senior

and other long-term

debt (5,140) (56,412) (14,752) (3,290,561)

-------------------------------------------------------------------------

Cash provided by

financing

activities 4,343,337 16,643,062 7,390,822 12,771,569

-------------------------------------------------------------------------

Net increase in cash

and cash

equivalents during

the period 2,167,428 11,094,893 7,283,779 10,626,995

Cash and cash

equivalents,

beginning of

period 6,639,948 3,625,395 1,523,597 4,093,293

-------------------------------------------------------------------------

Cash and cash

equivalents, end

of period 8,807,376 14,720,288 8,807,376 14,720,288

-------------------------------------------------------------------------

-------------------------------------------------------------------------

oss 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 balance sheet at March 31, 2008 shows:

- Total assets of $38.9 million, as compared to $41.5 million at

June 30, 2007.

- Working capital of $6.6 million, as compared to $14.4 million at

June 30, 2007.

- Shareholders' equity of $19.7 million, as compared to $29.1 million

at June 30, 2007.

- Cash and cash equivalents of $8.8 million, as compared to cash, cash

equivalents and short-term investments of $11.0 million at June 30,

2007.

- Unused revolving credit facilities of $0.5 million, as compared to

$1.8 million at the end of June 30, 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 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.

Bioniche Life Sciences Inc.

Amalgamated under the laws of Ontario

INTERIM CONSOLIDATED BALANCE SHEETS

(Unaudited)

As at As at

March 31, June 30,

2008 2007

$ $

-------------------------------------------------------------------------

ASSETS

Current

Cash and cash equivalents 8,807,376 1,523,597

Short-term investments - 9,500,000

Accounts receivable 5,502,049 5,495,836

Inventories 4,945,312 5,480,167

Prepaid expenses and deposits 700,590 658,867

Foreign currency embedded derivatives 105,327 -

-------------------------------------------------------------------------

20,060,654 22,658,467

-------------------------------------------------------------------------

Long-term

Property, plant and equipment, net 9,496,091 9,557,359

Intangible assets, net 7,902,828 8,545,215

Goodwill 456,155 456,155

Deferred financing fees - 209,578

Foreign currency embedded derivatives 28,461 -

Other assets 945,096 100,000

-------------------------------------------------------------------------

38,889,285 41,526,774

-------------------------------------------------------------------------

-------------------------------------------------------------------------

LIABILITIES AND SHAREHOLDERS' EQUITY

Current

Revolving credit facility 4,120,711 895,619

Accounts payable and accrued liabilities 7,856,646 6,399,382

Income and other taxes payable 445,024 283,845

Deferred government incentives 615,864 541,282

Current portion of long-term debt and

obligations under capital leases 422,507 123,769

-------------------------------------------------------------------------

13,460,752 8,243,897

-------------------------------------------------------------------------

Long-term

Long-term debt 1,838,938 421,396

Obligations under capital leases 942,924 764,933

Deferred government incentives 2,986,572 2,986,572

-------------------------------------------------------------------------

19,229,186 12,416,798

-------------------------------------------------------------------------

Shareholders' equity

Share capital 92,759,917 90,038,524

Special warrants 2,174,008 2,174,008

Other paid-in capital 5,894,348 5,528,059

Deficit (81,168,174) (68,630,615)

-------------------------------------------------------------------------

19,660,099 29,109,976

-------------------------------------------------------------------------

38,889,285 41,526,774

-------------------------------------------------------------------------

-------------------------------------------------------------------------

Bioniche Life Sciences Inc.

INTERIM CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY

(Unaudited)

Preferred shares -

Common shares Series 1

# $ # $

-------------------------------------------------------------------------

Balance, June 30,

2006 39,198,140 60,794,185 167 161,000

Net loss for the

period - -

Issued under

employee share

ownership plan 409,114 349,940 - -

Stock-based

compensation - - - -

Shares issued to

directors 109,998 76,999 - -

Share bonus 5,264 4,001 - -

Shares issued on

exercise of options 2,000 1,889 - -

Term debt repayment

made in shares 1,903,165 1,472,473 - -

Warrants issued in

connection with

the convertible

term note - - - -

Revolving debt

principal payments

made in shares 2,004,745 1,602,963 - -

Unit offering, net

of issue costs 14,583,333 12,598,546 - -

-------------------------------------------------------------------------

Balance, March 31,

2007 58,215,759 76,900,996 167 161,000

-------------------------------------------------------------------------

-------------------------------------------------------------------------

Balance, June 30,

2007 61,711,867 81,078,737 167 161,000

Transition

adjustment - - - -

Net loss for the

period - - - -

Issued under

employee share

ownership plan 590,560 456,451 - -

Stock-based

compensation - - - -

Shares issued to

directors 73,560 76,502 - -

Share bonus 516,886 408,340 - -

Revolving debt

principal payment

made in shares 2,671,900 1,780,100 - -

Adjustment for

conversion of

fractional shares 6 - - -

Warrants issued in

connection with

the revolving debt - - - -

-------------------------------------------------------------------------

Balance, March 31,

2008 65,564,779 83,800,130 167 161,000

-------------------------------------------------------------------------

-------------------------------------------------------------------------

Other

Preferred shares - Special paid-in

Series ll warrants capital

# $ $ $

-------------------------------------------------------------------------

Balance, June 30,

2006 12,000,000 11,731,716 - 4,556,290

Net loss for the

period - - - -

Issued under

employee share

ownership plan - - - 8,978

Stock-based

compensation - - - 166,264

Shares issued to

directors - - - -

Share bonus - - - -

Shares issued on

exercise of options - - - (89)

Term debt repayment

made in shares - - - (79,571)

Warrants issued in

connection with

the convertible

term note - - - 93,023

Revolving debt

principal payments

made in shares - - - -

Unit offering, net

of issue costs - - 2,159,568 775,833

-------------------------------------------------------------------------

Balance, March 31,

2007 12,000,000 11,731,716 2,159,568 5,520,728

-------------------------------------------------------------------------

-------------------------------------------------------------------------

Balance, June 30,

2007 9,000,000 8,798,787 2,174,008 5,528,059

Transition

adjustment - - - -

Net loss for the

period - - - -

Issued under

employee share

ownership plan - - - -

Stock-based

compensation - - - 273,559

Shares issued to

directors - - - -

Share bonus - - - -

Revolving debt

principal payment

made in shares - - - -

Adjustment for

conversion of

fractional shares - - - -

Warrants issued in

connection with

the revolving debt - - - 92,730

-------------------------------------------------------------------------

Balance, March 31,

2008 9,000,000 8,798,787 2,174,008 5,894,348

-------------------------------------------------------------------------

-------------------------------------------------------------------------

Cumulative

translation

Deficit adjustment Total

$ $ $

-----------------------------------------------------------

Balance, June 30,

2006 (53,869,621) (23,379) 23,350,191

Net loss for the

period (10,164,369) 23,379 (10,140,990)

Issued under

employee share

ownership plan - - 358,918

Stock-based

compensation - - 166,264

Shares issued to

directors - - 76,999

Share bonus - - 4,001

Shares issued on

exercise of options - - 1,800

Term debt repaym
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SOURCE Bioniche Life Sciences Inc.
Copyright©2008 PR Newswire.
All rights reserved

Related medicine news :

1. Bioniche Appoints U.S. President of Food Safety
2. Bioniche Reports the Passing of its Board Chair
3. Bioniche Converts a Portion of its Debt to Equity
4. Bioniche Receives Fast Track Designation For First-Line Bladder Cancer Therapy
5. Bioniche Pharma Chooses TrackWise for its Deviation Control Solution
6. Bioniche Provides Update on Refractory Bladder Cancer Trial with Urocidin(TM)
7. Bioniche Reports Fiscal 2008 Second Quarter
8. USDA Agrees to Grant Conditional License to Bioniche for its E. coli O157:H7 Cattle Vaccine
9. Bioniche Amends Terms of Convertible Debt with Laurus Master Funds
10. Bioniche Receives $5 Million of Federal Government Support to Scale-up Vaccine Production in Ontario
11. Bioniche Reports Fiscal 2008 First Quarter
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