EX-99.1 2 f3957ex99-1.htm EX99.1 f3957ex99-1.htm
Exhibit 99.1
 
 
Your medicine in the hands of Nature
 
BIONOVO ANNOUNCES FIRST QUARTER 2008 FINANCIAL RESULTS
 
Emeryville, CA, May 9, 2008 -- Bionovo, Inc. (NASDAQ: BNVI) today announced results for the first quarter of 2008.

Quarter Results

The company did not report any revenue for the three months ended March 31, 2008. Revenues for the three months ended March 31, 2007 were $3,750, received from our licensing and technology transfer agreement with United Biotechnology Corporation of Taiwan. In October of 2007, we terminated the agreement following notice of material breach of the Agreement by UBC and we recognized the remaining deferred revenue of $91,250 in December 2007.

Total operating expenses for the three months ending March 31, 2008 were $4.2 million compared to $3.5 million for the same period in 2007.

The company reported a net loss for the three months ended March 31, 2008 of $3.9 million, or $0.05 per share, compared with a net loss of $3.3 million, or $0.05 per share, for the same period in 2007.

The Company ended the quarter with $29.4 million in cash, cash equivalents and short term investments, and began the quarter with $33.3 million, a difference of $3.9 million.


Company Highlights

·  
Patient enrollment and dosing continues in the Phase 1 portion of the BZL101 Phase 1/2 clinical trial for advanced metastatic breast cancer. Presentations, papers and scientific discussions have expounded the mechanisms of action and described the positive progress to date.
 
·  
Bionovo presented data on two additional preclinical anti-cancer drug candidates -- BN107 and BN108 -- at the American Association of Cancer Research (AACR) conference in April.  BN107 induces apoptosis through the mitochondrial pathway, and induces cell death only in estrogen receptor negative breast cancer cells. BN108 induces cancer cell death by rapid inactivation of both AKT and mTOR pathways in breast cancer cells, but not in normal cells.
 
·  
The Company commissioned and reported results from two independent physician surveys which showed the Company’s drug candidate MF101 could become first-line treatment for menopausal vasomotor symptoms (hot flashes). In both qualitative and quantitative studies, 124 board certified physicians in internal medicine or obstetrics and gynecology specializing in the treatment of menopause reported that MF101, if approved, would be their drug of choice for the treatment of hot flashes. In addition, 92% of physicians reported they would prescribe MF101 before prescribing an antidepressant agent for hot flashes.
 
·  
Three additional members were appointed to the Board of Directors: George Butler, Louis Drapeau, and John Baxter.
 
“The first quarter of the year was a very productive quarter for Bionovo, with tremendous scientific and operational progress,” said Dr. Isaac Cohen, O.M.D., Bionovo’s Chairman and Chief Executive Officer. “We are positioned quite well for 2008, a year in which we will have additional new drug candidates in clinical trials, each addressing a significant unmet medical need with great commercial opportunity.”

“We believe that our scientific and operational success is not yet reflected in our stock price,” Dr. Cohen continued. “However, our value has been re-affirmed throughout the scientific community, as reflected by the industry reception of our scientific papers and quality of our new board members.”

A full financial report on Form 10-Q is expected to be filed on Friday, May 9, 2008.


Bionovo, Inc.
 
Bionovo is a pharmaceutical company focused on the discovery and development of safe and effective treatments for women's health and cancer, markets with significant unmet needs and billions in potential annual revenue. The company applies its expertise in the biology of menopause and cancer to design new drugs derived from botanical sources which have novel mechanisms of action. Based on the results of early and mid-stage clinical trials, Bionovo believes they have discovered new classes of drug candidates within their rich pipeline with the potential to be leaders in their markets. Bionovo is headquartered in Emeryville, California and is traded on the NASDAQ Capital Market under the symbol, "BNVI". For more information about Bionovo and its programs, visit: http://www.bionovo.com.
 
Forward Looking Statements
 
This release contains certain forward-looking statements relating to the business of Bionovo, Inc. that can be identified by the use of forward-looking terminology such as "believes," "expects," or similar expressions. Such forward-looking statements involve known and unknown risks and uncertainties, including uncertainties relating to product development, efficacy and safety, regulatory actions or delays, the ability to obtain or maintain patent or other proprietary intellectual property protection, market acceptance, physician acceptance, third party reimbursement, future capital requirements, competition in general and other factors that may cause actual results to be materially different from those described herein as anticipated, believed, estimated or expected. Certain of these risks and uncertainties are or will be described in greater detail in our filings with the Securities and Exchange Commission, which are available at http://www.sec.gov. Bionovo, Inc. is under no obligation (and expressly disclaims any such obligation) to update or alter its forward-looking statements whether as a result of new information, future events or otherwise.
 
Contact:
Investors Relations
The Trout Group
Lauren Glaser
Tel: 415.392.3310
lglaser@troutgroup.com
 
 
Media
Tom Chesterman
Tel: 510.420.4189
investor@bionovo.com

 
 
Source: Bionovo, Inc.





 
Bionovo, Inc.
(A Development Stage Company)
Condensed Statements of Operations
(Unaudited)
                         
                     
Accumulated from
  
     
 
      
 
      
February 1, 2002
  
     
Three months
      
Three months
      
(Date of inception) To
  
     
ended March 31,
      
ended March 31,
      
March 31,
  
     
2008
      
2007
      
2008
  
Revenues
 
$
—
 
 
$
3,750
 
 
$
659,490
 
Operating expenses:
 
 
 
 
 
 
 
 
 
 
 
 
Research and development
 
 
2,387,393
 
 
 
2,788,668
 
 
 
18,179,598
 
General and administrative
 
 
1,822,027
 
 
 
694,921
 
 
 
9,273,794
 
Merger cost
 
 
—
 
 
 
—
 
 
 
1,964,065
 
Total operating expenses
 
 
4,209,420
 
 
 
3,483,589
 
 
 
29,417,457
 
Loss from operations
 
 
(4,209,420
)
 
 
(3,479,839
)
 
 
(28,757,967
)
Change in fair value of warrant liability
 
 
—
 
 
 
—
 
 
 
831,288
 
Interest income
 
 
306,192
 
 
 
149,712
 
 
 
1,374,609
 
Interest expense
 
 
(26,537
)
 
 
(14,081
)
 
 
(263,554
)
Other income (expense)
 
 
(15,575
 ) 
 
 
 
 
 
 
129,321
  
Income (loss) before income tax
 
 
(3,945,340
)
 
 
(3,344,208
)
 
 
(26,686,303
)
Income tax provision
 
 
(3,256
)
 
 
(800
)
 
 
(12,258
)
Net loss
 
$
(3,948,596
)
 
$
(3,345,008
)
 
$
(26,698,561
 
Basic and diluted net loss per common share
 
$
(0.05
)
 
$
(0.05
)
 
$
(0.70
)
Shares used in computing basic and diluted net loss per common share
 
 
76,343,101
 
 
 
61,525,518
 
 
 
37,914,036
 



Bionovo, Inc.
(A Development Stage Company)
Consolidated Balance Sheet
 
 
 
 
 
 
 
 
 
 
 
 
 March 31,
 
 
 
 December 31,
 
 
 
 
 2008
 
 
 
 2007
 
 
 
 
(Unaudited)
 
 
 
(Note 1*)
 
ASSETS
 
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
 
    Cash and cash equivalents
 
$
19,187,934
 
 
$
28,472,485
 
    Short-term investments
 
 
10,198,744
 
 
 
4,823,938
 
    Receivables
 
 
19,942
 
 
 
285,899
 
    Prepaid expenses and other current assets
 
 
530,709
 
 
 
405,381
 
Total current assets
 
 
29,937,329
 
 
 
33,987,703
 
Property and equipment, net
 
 
4,040,105
 
 
 
3,900,248
 
Other assets and patent pending, net
 
 
733,445
 
 
 
277,220
 
Total assets
 
$
34,710,879
 
 
$
38,165,171
 
 
 
 
 
 
 
 
 
 
LIABILITIES AND SHAREHOLDERS’ EQUITY
 
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
 
 
Accounts payable
 
$
206,799
 
 
$
299,677
 
Accrued clinical costs
 
 
152,444
 
 
 
298,559
 
Accrued compensation and benefits
 
 
553,242
 
 
 
462,485
 
Current portion of lease obligation
 
 
928,252
 
 
 
706,710
 
Other current liabilities
    
540,922
      
949,200
  
Total current liabilities
 
 
2,381,659
 
 
 
2,716,631
 
Non-current portion of lease obligation
 
 
1,018,976
 
 
 
526,346
 
Commitments and contingencies
 
 
 
 
 
 
 
 
Shareholders’ equity:
 
 
 
 
 
 
 
 
Preferred stock, $0.0001 par value; 10,000,000 shares authorized; none issued and outstanding                
Common stock, $0.0001 par value, 190,000,000 shares authorized; 76,343,101 shares issued and outstanding as of March 31, 2008 and December 31, 2007, respectively.
 
 
8,166
 
 
 
8,166
 
Additional paid-in capital
 
 
57,980,224
 
 
 
57,659,513
 
Accumulated other comprehensive income
    
20,415
      
4,480
  
Accumulated deficit
 
 
(26,698,561)
 
 
 
(22,749,965)
 
Total shareholders’ equity
 
 
31,310,244
 
 
 
34,922,194
 
Total liabilities and shareholders’ equity
 
$
34,710,879
 
 
$
38,165,171
 

* The balance sheet at December 31, 2007 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements.