Bioniche Reports Fiscal 2008 Thi...(oss profit margins increasedthis fiscal ...),Health

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
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