Bionomics posts maiden profit for FY14

Bionomics (ASX:BNO) has reported a maiden $3.2 million operating profit for the most recent financial year, as a result of its licensing deal with Merck & Co for Alzheimer’s treatment candidate BNC375.

Revenue for the period grew 132% to $27.5 million, but the company’s cash reserves decreased by 53% to $10.5 million.

In June, Bionomics signed a research collaboration and licensing deal worth up to US$526 million ($565 million) with Merck (MSD in Australia) covering the development of BNC375 in Alzheimer’s disease and other central nervous system conditions.

The deal includes upfront payments totalling US$20 million, and the initial payments were the main contributor to Bionomics’ revenue growth for the year.

This agreement followed the signing of an option and licensing agreement with Merck centred on Bionomics’ pain program at the beginning of the financial year. This deal could be worth up to US$172 million in option fees and milestone payments.

During the financial year, Bionomics also announced the results of clinical trials of cancer drug candidate BNC105 in ovarian cancer and in renal cancer patients with liver metastases.

Commenting on its outlook in Bionomics’ annual report, the company said the Merck agreement has left it well financed. Bionomics also expects to receive $7.5 million in R&D tax incentive rebates.

Bionomics (ASX:BNO) shares were trading 5.66% higher at $0.56 as of around 1.30 pm on Wednesday.