BELLEVILLE, ON,
June 3, 2014 /PRNewswire/ - Bioniche
Life Sciences Inc. (TSX: BNC) today provided corporate updates on a
number of key strategic initiatives including:
- Continued execution of Cost Reduction/Strategic Expenditures
Review
- Completion of Asset Disposition Program
- Vaccine Manufacturing (VMC) Sales Process
- Urocidin™ Regulatory Update
Strategic Expenditures Review
Initiated in December
2013, management at Bioniche Life Sciences have conducted
and implemented a comprehensive review of all corporate
expenditures. This review has resulted in the execution of a
large number of recommendations that have had the effect of
significantly reducing operating costs currently and on an ongoing
basis. These include:
- Reduction of senior executive positions from 12 to 5
- A workforce reduction from >200 to approximately 50
- Delisting from the ASX stock exchange
- Reduced corporate benefits program
Dr. Michael
Berendt, CEO of Bioniche Life Sciences Inc., commented that,
"The objective of this ongoing review is to ensure that all of our
expenditures are focussed on driving shareholder value through
investment in the development and monetization of Urocidin™, our
key Phase 3 bladder cancer program, and on building, through
licensing and acquisition, a pipeline of differentiated human
therapeutic products that will drive future shareholder value in a
cost and time efficient fashion." Dr. Berendt also remarked, "I am
determined to ensure that every dollar spent at Bioniche is
strategically deployed for the future benefit of our
shareholders."
Completion of Asset Disposition
Program
As part of the strategic expenditures review,
non-core assets were identified and put up for sale. This
included a Montreal commercial
property and two residences in Belleville, Ontario, that were sold for net
proceeds of more than $1 million, as
previously reported. In addition, the company is pleased to
announce the sale of its 100 acre research farm, for net proceeds
of approximately $400,000. The
company now maintains only two properties - its Belleville campus and Montreal manufacturing plant.
Vaccine Manufacturing (VMC) Sales
Process
PharmaBioSource, a leading U.S. Merchant bank
has been engaged to find a buyer for the VMC and entire
Belleville campus. Site
visits by interested parties are ongoing. Vétoquinol, the
purchaser of Bioniche's animal health division, is renting a large
portion of this facility at market rates, for the next 3 years.
Urocidin Regulatory Update
Bioniche is in active dialogue, with the US FDA
concerning the most appropriate and efficient regulatory pathway
for Urocidin in the Unites States. Bioniche expects to be
able to report on the results of this dialogue prior to the end of
June. Clarity on this issue is critical as it is a prerequisite for
the company to increase its active dialogue with interested
strategic parties. The company has also decided to re-apply
for Orphan Drug designation in the Unites States. Bioniche
submitted its Clinical Assessment package to Health Canada in line
with the mid-May guidance previously provided and will be meeting
with additional potential licensing partners at the upcoming BIO
meeting in June in San Diego.
About Bioniche Life Sciences Inc.
Bioniche Life Sciences Inc. is a clinical stage
Canadian biopharmaceutical company focused on the discovery,
development, manufacturing, and marketing of proprietary and
innovative therapies for the global human health market. The
Company's primary goal is to develop and commercialize products
that advance human health and increase shareholder value. 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.
SOURCE Bioniche Life Sciences Inc.
