Med BioGene Inc.
TSX VENTURE : MBI

Med BioGene Inc.

April 16, 2010 20:41 ET

Med BioGene Reports Financial Results for 2009

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 16, 2010) - Med BioGene Inc. (TSX VENTURE:MBI) today reported its financial results for 2009 (all amounts are in United States dollars).

2009 Financial Results

MBI incurred losses in 2009 of $2,134,571, or $0.04 per common share, compared to a loss in 2008 of $2,139,635, or $0.06 per common share. MBI did not generate any revenue during 2009 or 2008.

Research and Development

Research and development expenditures totaled $988,636 in 2009, compared to $751,116 in 2008, representing an increase of 32 per cent.

Personnel and consulting costs decreased as a result of a reduction in the number of MBI employees and consultants. Personnel costs were also lower as a result of a decrease in stock based compensation to $17,045 in 2009 from $21,351 in 2008, due to the full vesting of certain option grants. License and consulting fees increased in 2009 relating to expenses incurred with our collaborators at the University Health Network and other third parties concerning the licensing and development of certain intellectual property underlying MBI's lead test under development, LungExpress Dx. Fees associated with the ongoing prosecution of patent applications regarding LungExpress Dx were incurred during 2009, which amounts were offset by lower expenses related to facilities, supplies and operations in 2009 compared to 2008.

General and Administrative

General and administrative expenses totaled $1,070,204 in 2009, compared to $1,317,124 in 2008, representing a 19 per cent decrease.

Personnel costs increased in 2009 compared to 2008, while consulting fees relating to business development decreased in the same time period following the completion in early 2009 of negotiations related to MBI's collaboration agreements with the University Health Network. Stock-based compensation expenses decreased to $111,242 in 2009, compared to $199,868 in 2008, due to the full vesting of certain option grants.

Liquidity and Capital Resources

At December 31, 2009, MBI had $1,522,428 of cash and cash equivalents compared to $760,053 at December 31, 2008. Working capital at December 31, 2009 was $642,166.

Cash used by MBI in operating activities was $1,179,272 in 2009 compared to $1,770,175 in 2008. Cash provided by financing activities was $1,898,538 in 2009 compared to $1,378,418 in 2008. Capital expenditures were minimal during 2008 and 2009. 

About Med BioGene

MBI is a life science company focused on the development and commercialization of genomic-based personalized clinical laboratory diagnostic tests. MBI is committed to advancing personalized medicine by commercializing tests that provide clinically relevant information to improve patient treatment and reduce health care costs. For more information, please visit www.medbiogene.com.

Certain statements in this press release contain forward-looking information and statements ("forward-looking statements") under applicable Canadian and United States securities legislation. Words such as "anticipates," "believes," "estimates," "expects," "intends," "may," "plans," "projects," "will," "would" and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Forward looking statements include, but are 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. These forward-looking statements are 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 statements. Forward-looking statements are subject to known and unknown risks and uncertainties and are 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 these forward-looking statements, which speak only as of the date of this press release. MBI's forward-looking statements do not reflect the potential impact of any future partnerships, collaborations, acquisitions, mergers, dispositions, joint ventures or investments that MBI may make. All forward-looking statements are qualified in their entirety by this cautionary statement and MBI undertakes no obligation to revise or update any forward-looking statements 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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