Med BioGene Inc.

Med BioGene Inc.

April 29, 2009 17:55 ET

Med BioGene Reports Financial Results for 2008

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 29, 2009) - Med BioGene Inc. (TSX VENTURE:MBI) today reported its financial results for 2008.

Erinn Broshko, MBI's Chief Executive Officer stated, "Med BioGene has made significant progress over the last year as we move towards commercializing LungExpress Dx™ in the United States in 2009. In particular, we expanded our collaboration with the University Health Network to complete the further validation of LungExpress Dx™, have expanded our commercialization team through strategic appointments and completed a health economic analysis that shows that LungExpress Dx™ has the potential to increase the cure rate of early stage non-small-cell lung cancer and save the health care system millions of dollars in treatment failure and terminal care costs associated with cancer recurrence. We expect 2009 to be a very successful year for Med BioGene."

Recent Scientific and Business Highlights

- April 2009: MBI expanded its license and development collaboration with the University Health Network to develop and commercialize LungExpress Dx™ to include additional novel gene expression-based markers for early-stage non-small-cell lung cancer (NSCLC).

LungExpress Dx™ is a test for early-stage NSCLC that analyzes the molecular profile of a patient's tumour to provide information to assist in tailoring treatment for that specific patient. LungExpress Dx™ is the first and only gene expression-based test for early-stage NSCLC that may assist in determining a patient's benefit from chemotherapy and prognosis for survival.

- April 2009: MBI and UHN began an additional study to validate LungExpress Dx™ in predicting a patient's prognosis for survival. This study is being performed using an existing independent set of 200-300 early-stage NSCLC patient samples collected over a five-year period and is expected to be completed in the third quarter of 2009.

Early-stage NSCLC patients are treated primarily by surgical removal of their tumours. Recent clinical trials have established that adjuvant chemotherapy, administered after tumour removal, significantly improves the survival of stage II patients, but does not significantly improve the survival of stage I patients. As a result, adjuvant chemotherapy is recommended for stage II patients but not for stage I patients.

30% to 55% of stage I and II early-stage NSCLC patients still die as a result of the disease, suggesting that patients diagnosed with the same stage of disease can have markedly different treatment responses and overall outcomes. Currently, tumor stage remains the strongest predictor of survival but fails to account for this difference in patient outcomes. A more accurate means of prognostication is needed to improve the selection of patients for adjuvant chemotherapy. LungExpress Dx™ has the potential to address this critical unmet need.

- March 2009: MBI appointed Dave Matthews as Chief Financial Officer. Mr. Matthews brings to MBI over fifteen years of experience in funding and operating life science companies and will play a critical role in executing upon MBI's commercialization strategy.

2008 Financial Results

MBI incurred losses in 2008 of $2,264,576, or $0.07 per common share, compared to a loss in 2007 of $2,448,875, or $0.09 per common share. This represents an eight per cent reduction in losses year over year and is consistent with management's expectations for the year. MBI did not generate any revenue during 2008 and 2009.

Research and Development

Research and development expenditures totaled $786,674 in 2008, compared to $1,175,849 in 2007, representing a decrease of 33 per cent. The decrease in research and development expenditures reflects MBI's increasing subcontracting of research and development and licensing of additional intellectual property. Personnel expenses were relatively unchanged from 2007 to 2008, while associated stock based compensation expense decreased by approximately 90 per cent, resulting from a significant number of stock options fully vesting in November of 2007. Government contributions under a Canadian government IRAP grant totaled $96,680 during 2008 compared to $187,036 for 2007.

General and Administrative

General and administrative expenses increased by 12 per cent in 2008 to $1,401,980, compared to $1,249,150 in 2007. The increase was due in part to an increase in personnel costs of $78,796 that was offset by a reduction in stock-based compensation resulting from a significant number of stock options fully vesting in November 2007. Business development expenses increased by $280,093 in 2008 over 2007 due to greater legal, consulting and other related costs pertaining to completing MBI's agreements with UHN and certain other negotiations for the acquisition of additional intellectual property.

Liquidity and Capital Resources

At December 31, 2008, MBI had $1,057,230 of cash and cash equivalents and government receivables, compared to $1,580,672 at December 31, 2007. This decrease is as a result of incurring operating expenses described above, along with minimal capital expenditures. In the third quarter of 2008, MBI completed a public offering that resulted in net proceeds to MBI of $1,472,945.

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.

MBI's lead product, LungExpress Dx™, is expected to be the first test using gene expression technology that may play a role in predicting the individual prognosis and the magnitude of chemotherapy benefit for patients inflicted with early-stage non-small-cell lung cancer. LungExpress Dx™ may provide patients and their physicians with valuable information to more effectively guide treatment and improve the selection of patients for adjuvant 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 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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