By Matthew Willett

Bioniche Life Sciences Inc. entered into an agreement with the Canadian government for C$17.2 million (US$10.99 million) in financial assistance for research and development.

Though Bioniche wouldn't disclose details on the funding until final approvals and details have been confirmed, Bioniche officials said the funding will promote product development of oncology products, a device and a veterinary vaccine.

Belleville, Ontario-based Bioniche's senior vice president of business development, Albert Beraldo, said the funding comes at a time when the company is preparing to move products both into the clinic and onto the market.

"This is meant to help support two platform technologies, one in human health related to a cancer program where we've got two products in clinical trials," Beraldo told BioWorld Today. "One is in a clinical trial for bladder cancer, and the other we're just beginning a trial in prostate cancer with. We're in the stage that we're starting to enroll patients in a Phase I trial."

The bladder cancer therapeutic, a mycobacterial cell wall-DNA complex, is in Phase II testing. "We're basically through Phase II, and we hope to get into Phase III in the next six to nine months. I think we'll be wrapping up this trial soon," Beraldo said.

A Phase I/II trial of the therapeutic is under way in Australia and Canada.

In its second technology platform the company is pursuing U.S. regulatory approval for two products. Cystistat is for treatment of interstitial cystitis, an inflammatory disorder of the bladder, and Suplasyn is designed for treatment of osteoarthritis.

Both products make use of Bioniche's hyaluronic acid platform technology, and both are approved for marketing in Canada and in Europe. Though admittedly aggressive in his estimate, Beraldo said the company anticipates U.S. approval in about two years.

"We've met with the FDA recently to discuss protocol, and with some minor adjustments we plan to start enrolling patients [in a pivotal trial] in the next six months."

In veterinary research, the company is pursuing development of an E. coli vaccine for cattle.

Beraldo said this most recent financing would last the company, which spends about C$500,000 a month, between 24 and 36 months. Bioniche last financed itself in October through a special warrant offering that grossed the company C$6.5 million.

"We'll definitely be back to the market," he said. "I don't think it will be too far down the line. I think I can safely say that at some point within the next 18 months we'll be back into the market. We have aggressive plans related to growth in the human health area and in animal heath, and a number of products coming through the pipeline on both sides."

The company's recent focus, he said, apart from the financing announced Monday, has been on strengthening its distribution network through marketing partnerships with the likes of UroCor Inc., of Oklahoma City.

That alliance, worth about $3 million in milestones and up-front payment for Bioniche, covers Cystistat, and includes options for U.S. distribution of the bladder and prostate cancer candidates.

"There were a lot of synergies, and the personalities and individuals were synergistic as well," Beraldo said. "It's not a David and Goliath scenario. It's one small company working with another."

Bioniche's stock (TSE:BNC) rose C10 cents Monday, closing at C$2.70.