Med BioGene Inc.

Med BioGene Inc.

April 29, 2008 23:14 ET

Med BioGene Reports Financial Results for 2007

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 29, 2008) - Med BioGene Inc. (TSX VENTURE:MBI) today reported its financial results for 2007.

Erinn Broshko, MBI's Chief Executive Officer, stated, "Med BioGene has made significant progress over the last quarter. In particular, we entered into a strategic collaboration with the University Health Network to commercialize LungExpress Dx™, we announced positive results from a recent study that demonstrate the high accuracy rate of LymphExpress Dx™, and we continued to work with Duke University to finalize a world-class international consortium of universities to develop LymphExpress Dx™. Furthermore, we have been collaborating extensively with the University of Ottawa Heart Institute and have achieved promising results in our cardiovascular disease program, of which we expect to publish in the near term. 2008 will be a very successful year for Med BioGene."

Recent Scientific and Business Highlights

- April 23, 2008: MBI and the University Health Network (UHN) announced that they have entered into license and collaboration agreements providing MBI with exclusive, world-wide rights to develop and commercialize a critical prognostic test for early stage non-small-cell lung cancer developed by UHN. The test will be marketed under MBI's trade name LungExpress Dx™.

- LungExpress Dx™ is a gene expression-based assay that provides valuable information regarding each patient's prognosis for survival to more effectively guide treatment and improve the selection of patients for chemotherapy following surgical removal of their cancerous tumour.

- April 3, 2008: MBI announced results from a recent study that confirm the previously demonstrated high accuracy rate of LymphExpress Dx™ v.1.0. LymphExpress Dx™ v.1.0 is a gene expression-based array being developed to diagnose the most common subtypes of lymphoma, together representing approximately 90% of all Non-Hodgkin B-cell and Hodgkin lymphomas. In the study, LymphExpress Dx™ v.1.0 achieved an overall accuracy rate of over 90%.

- February 19, 2008: MBI announced the appointment of Dennis L. Grimaud to the company's Board of Directors. Mr. Grimaud has over 30 years of experience in the health care industry and 18 years of experience in biotechnology and molecular diagnostics as an entrepreneur, senior executive and consultant. From 2004 to 2006, Mr. Grimaud was the Chief Executive Officer of Genaco Biomedical Products, Inc., a molecular diagnostics company with proprietary multiplexing technology for infectious disease and cancer diagnostics. In 2006, Mr. Grimaud led the sale of Genaco to global molecular diagnostics leader Qiagen (NASDAQ:QGEN).

2007 Financial Results

MBI reported a net loss of $2,448,875 ($0.09 per share) in 2007 compared to a net loss of $3,517,793 ($0.20 per share) in 2006. The decrease was primarily due to not incurring the one time $2,293,696 transaction cost associated with the acquisition of Dragon-Tex (Group) Limited and the listing of MBI's common shares on the TSX Venture Exchange on April 28, 2006. The absence of this expense in 2007 was partially offset by increased general and administrative expenses of $602,066 and research and development expenses of $610,681 associated with continued expansion of MBI's operations and research and development activities.

Research and Development

Research and development expenses were $1,175,849 in 2007 compared to $565,168 in 2006. The increased expenses are related to the continuing expansion in 2007 of the Company's research and development programs. Specifically, the increase was due primarily to increased personnel costs of $236,704, increased consulting fees of $99,484, increased laboratory supplies of $154,523, increased intellectual property and legal filing fees of $47,769 and increased stock-based compensation costs of $101,223. Government grants received and investment tax credits recorded were $187,036 in 2007, compared to $147,924 in 2006.

General and Administrative

General and administrative expenses were $1,249,150 in 2007 compared to $647,084 in 2006. The increase was due primarily to increased personnel costs of 187,276, increased business development costs of $41,458, increased stock-based compensation costs of $213,965 and increased public company costs of $103,860.

Liquidity and Capital Resources

At December 31, 2007, MBI had $1,367,820 of cash and cash equivalents as compared to $613,016 at December 31, 2006. The increase relates to the net proceeds from the brokered private placement in June 2007 of $3,030,610 offset by $2,012,481 of net operating cash outflows, $182,509 of property and equipment purchases and repayment of $70,200 of shareholder loans.

Investor Relations

MBI announced on February 15, 2007 and September 10, 2007 the engagement of The Howard Group of Calgary, Alberta, and Peterson Capital of Vancouver, British Columbia, respectively, to provide investor and financial relations services to MBI. Their engagement has expired and MBI has extended such engagement on terms and conditions similar to those previously announced.

Options to purchase common shares of MBI granted to The Howard Group and Peterson Capital as previously announced have expired and MBI has granted to them the same number of options at an exercise price of $0.34 per share, being a premium of 94% to the closing price of MBI's common shares on the TSX Venture Exchange on April 29, 2008.

The stock options will have a term of 5 years from the date of grant; vest in four equal amounts every three months from the date of grant; be subject to a four month hold period; and be subject to acceptance for filing by the TSX Venture Exchange.

About Med BioGene

MBI is a life science company focused on the development and commercialization of genomic-based clinical laboratory diagnostic 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.

Certain statements in this news 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 studies or clinical trials and the completion date for studies or 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 upon 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 news 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 news release, other than as required by applicable law.

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

Contact Information