Med BioGene Inc.
TSX VENTURE : MBI

Med BioGene Inc.

August 27, 2010 14:45 ET

Med BioGene Reports Financial Results for the Second Quarter of 2010

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 27, 2010) - Med BioGene Inc. (TSX VENTURE:MBI) today reported its financial results for the three and six months ending June 30, 2010 (all amounts are in United States dollars).

Financial Results

MBI incurred a loss of $1,020,030 ($0.01 per share) for the first half of 2010 compared to a loss of $940,822 ($0.02 per share) for the first half of 2009. Comparing the second quarter of 2010 to the second quarter of 2009, MBI incurred a loss of $551,910 ($0.01 per share) and $497,503 ($0.01 per share), respectively. MBI did not generate any revenue during the first half of 2010 or the first half of 2009.

Research and Development

Research and development expenses were $380,408 for the first half of 2010 compared to $353,461 for the first half of 2009, representing an increase of 8%. Comparing the second quarter of 2010 with the corresponding quarter from 2009, research and development expenses increased by 30% to $248,840 from $190,863. 

General and Administrative

General and administrative expenses were $600,878 for the first half of 2010 compared to $550,158 for the first half of 2009, representing an increase of 9%. Comparing the second quarter of 2010 with the corresponding quarter from 2009, general and administrative expenses decreased slightly by 2% to $282,804 from $286,888.

Liquidity and Capital Resources

At June 30, 2010, MBI had cash and equivalents totalling $493,660 and a working capital deficiency of $1,119,426, compared to cash and equivalents of $1,522,428 and working capital of $642,166 at December 31, 2009.

Cash used in operating activities was $251,970 for the first half of 2010 compared to $684,036 for the same period in 2009. The cash used in operating activities consisted mainly of salaries and related employee costs, payments to third parties and company operating costs. During the first half of 2010 a substantial portion of the expenses associated with MBI's proposed US initial public offering and listing on The NASDAQ Capital Market remain in accounts payable and accruals and deferred offering costs. These costs consist mainly of legal, accounting, printing and investor relations consulting. There were no revenues received during the first half of 2009 or 2010.

During the six month periods ended June 30, 2010 and 2009, there was no investing activity.

Cash used in financing activities was $838,254 for the first half of 2010 compared to $1,369,311 of cash provided from financing activities during the same period in 2009. During the first half of 2010, MBI received $91,192 from the exercise of warrants. MBI has capitalized a total of $929,446 in expenses relating to above mentioned proposed US initial public offering.

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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