Bionovo reports total revenue of $14,000 for second-quarter 2010

Bionovo, Inc. (Nasdaq: BNVI) today announced second quarter highlights and financial results for the three months ended June 30, 2010.

"We have now had critical discussions with both the FDA and the EMA. Both agencies have provided guidance and requirements for marketing license approval of Menerba," said Isaac Cohen, O.M.D., Bionovo's Chairman and Chief Executive Officer. "We can now turn our attention to initiating pivotal clinical trials for Menerba by year end."

"Any potential treatment for such a large indication as menopausal symptom alleviation will require careful consideration and review by the regulatory agencies," said Mary Tagliaferri, M.D., Bionovo's President and Chief Medical Officer. "The details of the regulatory agencies' review will be particularly useful to a prospective partner for assessing the development costs and market potential of Menerba."

Second Quarter Results

For the quarter ending June 30, 2010 total revenue was $14,000 compared with $7,000 for the same period in 2009. This revenue was the result of limited research services the Company performed for one customer.  The Company does not expect to continue performing these services for the remainder of 2010.

Total operating expenses for the three months ending June 30, 2010 were $4.1 million compared to $4.1 million for the same period in 2009 and $4.7 million for the first quarter of 2010.  Total operating expenses for the second quarter included the purchase of manufacturing supplies and raw materials and testing in support of the Menerba manufacturing process development. The Company expects operating expenses to increase in the last half of the year as clinical trials begin.

The Company reported a net loss for the three months ended June 30, 2010 of $4.1 million, or $0.04 per share, compared with a net loss of $4.1 million, or $0.05 per share, for the same period in 2009.

The Company ended the quarter with $6.9 million in cash, cash equivalents and short term investments, and began the quarter with $11.8 million.  The cash balance at the end of the quarter reflects the cash expenses mentioned above combined with $1.0 million in capital equipment purchases during the year.