Bioniche posts last results before animal health sale

Bioniche (ASX:BNC) has announced what will likely be the company’s final set of annual results with its animal health division, before it sells the unit later this financial year.

To reflect the expected sale of the unit - planned to allow the company to focus on development of human bladder cancer treatment Urocidin - the Canadian dual-listed company separated the revenue from this business into a separate category on its earnings sheet.

Revenue from discontinued operations - namely the animal health business - increased 8.3% to C$31.5 million ($32.8 million). The unit swung from a loss of C$894,000 in FY12 to a C$3.3 million profit in FY13.

Revenue from continuing operations totalled C$82,000. This compares to C$2 million from FY12, back when Bioniche was still receiving reimbursement from former Urocidin development partner Endo Pharmaceuticals.

Bioniche split with Endo in April, taking back the global rights to the treatment candidate. Endo Pharmaceuticals had previously cancelled a US phase III trial of Urocidin due to a slower-than-expected rate of recruitment.

In July, Bioniche entered a wide-ranging debt refinancing, funding and Urocidin licensing deal with Canada’s Paladin Labs, but the company is single-handedly funding the remaining product development and manufacturing costs.

Due to these development costs and investments to develop the manufacturing capabilities for phase III trials, R&D costs for FY13 increased by C$1.1 million to C$16.3 million.

The company reported a loss per share of C$0.32, up from an FY12 loss per share of C$0.23.

Bioniche also revealed it has closed a C$9.8 million Canadian equity offer and private placement.

“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 C$16 million,” Bioniche Chairman Graeme McRae estimated.

Bioniche (ASX:BNC) shares were trading unchanged at $0.38 as of around 3.30 pm on Monday.