Med BioGene Inc.

Med BioGene Inc.

November 28, 2007 18:50 ET

Med BioGene Inc. Reports Financial Results for the Third Quarter 2007

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 28, 2007) - Med BioGene Inc. (TSX VENTURE:MBI), a life science company focused on the development and commercialization of genomic-based diagnostic and screening tests for cancer and cardiovascular disease, today reported its financial results for the third quarter ending September 30, 2007.

Erinn B. Broshko, MBI's Chief Executive Officer stated, "MBI has made significant progress over the last quarter as we worked towards entering into a strategic partnership in 2008 in advance of the commercialization of LymphExpress Dx™," a genomic-based test for rapid and accurate diagnosis of lymphoma. To that effect, we completed our first milestone leading up to that event by establishing a highly experienced business development team to prepare for and negotiate the strategic partnership. Furthermore, on the scientific front, we are extremely pleased with the appointment of Dr. Sandeep S. Dave of Duke University as Principal Investigator of the MBI / Duke collaboration to develop LymphExpress Dx™."

Recent Business Highlights

- October 25, 2007: MBI announced the engagement of JRG Ventures, LLC as its strategic business advisors. JRG has completed strategic partnering and/or licensing transactions for some of the highest profile diagnostic, pharmaceutical and biotechnology companies and will be working closely with Dr. Melanie M. Mahtani, MBI's Executive Advisor, Commercial Development, as MBI prepares for the partnering and commercialization of LymphExpress Dx™."

- September 24, 2007: MBI announced the appointment of Melanie M. Mahtani, Ph.D. as Executive Advisor, Commercial Development. Dr. Mahtani brings to MBI extensive experience in molecular diagnostics and personalized medicine, including over 15 years in the development and commercialization of novel genomic and genetic tests and technology for human disease analysis and profiling.

- September 12, 2007: MBI announced that Sandeep S. Dave, M.D. of Duke University, a world renowned expert in the research of gene expression profiling of lymphoma, has joined the MBI / Duke collaboration as Principal Investigator to develop LymphExpress Dx™. MBI and Duke entered into a research collaboration and option agreement in March 2007.

Third Quarter 2007 Financial Results

MBI reported a net loss of $552,563 ($0.02 per share) in the three months ended September 30, 2007, compared to a net loss of $407,682 ($0.02 per share) in the three months ended September 30, 2006. The increase was due to increased general and administrative and research and development expenses associated with continued expansion of the company's operations and research and development activities.

Research and Development

Research and development expenses were $328,704 for the three months ended September 30, 2007, compared to $165,025 for the three months ended September 30, 2006. The increase was due primarily to increased personnel expenses and engaging additional consultants involved with the Company's development of LymphExpress Dx™ and CardioExpress Dx™.

General and Administrative

General and administrative expenses were $328,704 for the three months ended September 30, 2007, compared to $253,445 for the three months ended September 30, 2006. The increase was due primarily to an increase in stock-based compensation, the hiring of a Chief Executive Officer and Office Manager and an expansion of the Company's office space in May 2006, and the hiring of additional accounting personnel in May 2007.

Liquidity and Capital Resources

At September 30, 2007, the Company had $1,737,324 of cash and cash equivalents compared to $613,016 at December 31, 2006, and had working capital of $1,542,890 at September 30, 2007, compared to $147,309 at December 31, 2006. This increase relates to the closing of the brokered private placement in June 2007 which resulted in net cash proceeds of $3,030,611. The Company also accrued $123,557 of government grant receivables associated with a collaboration agreement with the National Research Council of Canada, and $104,541 of GST refund receivables, both of which are expected to be collected by the end of the first quarter of 2008.

About Med BioGene

MBI is a life science company focused on the development and commercialization of genomic-based clinical laboratory diagnostic and screening tests for cancer and cardiovascular disease. MBI develops these tests by identifying the genes, known as "biomarkers", which indicate the presence of disease. The development of these tests is the first step towards personalized medicine and will replace the conventional "one drug fits all" approach to disease management.

Expected benefits include:

- more accurate, quicker and less invasive diagnosis;

- tailoring of treatment decisions to the needs of each patient by outlining a patient's genetic profile, thus making treatment more effective and reducing healthcare costs by minimizing the treatment of non-responders; and

- prioritizing of genomic biomarkers for use as potential therapeutic targets and to validate the effectiveness of specific therapeutics.

MBI is currently developing tests for lymphoma, leukemia and cardiovascular disease through the following products: LymphExpress Dx™, LeukExpress Dx™ and CardioExpress Dx™.

Certain statements in this press release contain forward-looking information under applicable Canadian securities legislation. Words such as "anticipates", "believes", "estimates", "expects", "intends", "may", "plans", "projects", "will", "would" and similar expressions are intended to identify forward-looking information, although not all forward-looking information contains these identifying words. Forward looking information includes, but is not limited to, that with respect to future profits, future product revenues, future operations and plans, the use of proceeds from financings, the timing of clinical trials and the completion date for clinical trials and the prospects for negotiating partnerships or collaborations and their timing. This forward-looking information is only a prediction based upon MBI's current expectations, and actual events or results may differ materially. MBI may not actually achieve the plans, intentions or expectations disclosed in its forward-looking information. Forward-looking information is subject to known and unknown risks and uncertainties and is based on uncertain assumptions that could cause MBI's actual results and the timing of events to differ materially from those anticipated in such forward-looking information. You are cautioned not to place undue reliance on this forward-looking information, which speaks only as of the date of this press release. MBI's forward-looking information does not reflect the potential impact of any future partnerships, collaborations, acquisitions, mergers, dispositions, joint ventures or investments that MBI may make. All forward-looking information is qualified in its entirety by this cautionary statement and MBI undertakes no obligation to revise or update any forward-looking information as a result of new information, future events or otherwise after the date of this press release, other than as required by applicable law.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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