Bioniche shares soar on hopes for cattle vaccine

Bioniche Life Sciences Inc. passed a major milestone yesterday when the United States Department of Agriculture said the company's E. coli vaccine for cattle is eligible for a conditional licence.

The vaccine, which stops cattle from shedding the dangerous bacteria in their manure, is already being sold in Canada under a conditional licence, but access to the U.S. will open up a potentially enormous new market for the Belleville, Ont.-based biotech company.

"This is a huge move forward for us," Bioniche chief executive officer Graeme McRae said.

Bioniche stock responded to the news by jumping 41 per cent on the Toronto Stock Exchange. Still, the company has some hurdles to cross before it gets the conditional U.S. licence. It will likely have to provide more research data, and perhaps conduct some more real-world studies on U.S. cattle, before the USDA gives its stamp of approval.

Even when it gets the conditional licence, the company will have to do some of its manufacturing of the vaccine inside the United States, and it won't be allowed to use a trademarked name on the product. Those restrictions will be lifted when a full licence is received.

Mr. McRae said he is optimistic about the process because "they are under huge pressure to do something about E. coli in the United States."

There have been several U.S. outbreaks of E. coli due to tainted hamburger meat. Cows carry the bacteria in their intestines and excrete it in manure. While cattle aren't sickened by the O157:H7 strain, it can cause severe illness in humans, as it did in the May, 2000, outbreak in Walkerton, Ont.