Med BioGene Inc.
TSX VENTURE : MBI

Med BioGene Inc.

November 28, 2008 21:56 ET

Med BioGene Reports Financial Results for the Third Quarter 2008

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 28, 2008) - Med BioGene Inc. (TSX VENTURE:MBI) today reported its financial results for the third quarter of 2008.

Erinn Broshko, MBI's Chief Executive Officer stated: "This is an important time for the company as we prepare for the U.S. launch of LungExpress Dx™ in mid 2009. LungExpress Dx™, our lead product under development, is a gene expression-based test for early stage non-small-cell lung cancer that provides valuable information regarding each patient's prognosis in order to more effectively guide treatment and improve the selection of patients for chemotherapy following surgical removal of their cancerous tumour. Over the last quarter, we broadened our commercialization team and continued to execute upon our strategy for the successful introduction of LungExpress Dx™. Furthermore, we completed a $1.8 million financing in challenging global financial markets to facilitate the establishment of our commercial operations."

Recent Scientific and Business Highlights

- October 23, 2008: MBI expanded its commercialization team through the appointed Vineet Bansal as Director, Product Launch and Marketing, and Debbie Corrazzelli as Senior Advisor, Diagnostics Commercialization.

Mr. Bansal and Ms. Corazzelli will be working closely with Dr. Melanie Mahtani, MBI's Executive Advisor, Commercial Development to implement the launch in the United States of LungExpress Dx™. Mr. Bansal and Ms. Corazzelli, both previously with XDx, Inc. (Brisbane, California; www.xdx.com), were integral to the successful launch, marketing and adoption of AlloMap®, XDx's first gene expression-based test to help doctors manage the care of stable heart transplant recipients. Within the first two years of the launch of AlloMap®, sales revenue increased 1200% and more than 50% of all U.S. heart transplant centres were using the test.

- August 7 and September 18, 2008: MBI closed a public offering of 12,168,667 units for gross proceeds of $1.8 million. Each unit was issued at a price of $0.15 and consists of one common share and one-half of one transferable common share purchase warrant.

Third Quarter 2008 Financial Results

MBI reported a net loss of $675,383 ($0.02 per share) in the third quarter of 2008 compared to a net loss of $552,563 ($0.02 per share) in the third quarter of 2007. The increase was a result of increased business development costs as MBI continues to develop and execute upon its commercialization strategy and increased research and development costs primarily in conjunction with the development of LungExpress Dx™, partially offset by reduced stock-based compensation expenses.

Research and Development

Research and development expenses were $330,877 in the third quarter of 2008 compared to $276,341 in the third quarter of 2007. The increase is related to additional expenditures incurred in the development of LungExpress Dx™ which amounted to $101,750, partially offset by decreased stock-based compensation expense of $52,273. MBI received a further $21,242 of government contributions to support its cardiovascular disease program during the quarter.

General and Administrative

General and administrative expenses were $320,437 in the third quarter 2008 compared to $285,557 in the third quarter 2007. The increase was due primarily to increased personnel and investor relations costs, partially offset by decreased stock-based compensation expense.

Liquidity and Capital Resources

At September 30, 2008, MBI had $1,415,414 of cash and cash equivalents as compared to $1,367,820 at December 31, 2007. The increase relates primarily to net proceeds from its public offering partially offset by operational cash outflows.

About Med BioGene

MBI is a life science company focused on the development and commercialization of genomic-based personalized clinical laboratory diagnostic tests for cancer and cardiovascular disease. MBI's lead product, LungExpress Dx™, is expected to be the first commercially available test using gene expression technology to assist in determining the prognosis of early stage non-small-cell lung cancer. LungExpress Dx™ will provide to patients and their physicians valuable information in order to more effectively guide treatment and improve the selection of patients for chemotherapy. MBI is committed to advancing personalized medicine by commercializing tests that provide actionable information to both save lives and reduce health care costs.

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.

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