Med BioGene Inc.
TSX VENTURE : MBI

Med BioGene Inc.

April 30, 2012 14:40 ET

Med BioGene Reports Financial Results for 2011

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 30, 2012) - Med BioGene Inc. (TSX VENTURE:MBI) today reported its financial results for 2011 (all amounts are in United States dollars).

2011 Financial Results

MBI generated net income of $1,530,192 ($0.02 per share) for 2011 compared to a loss of $2,870,549 (loss per share - $0.04) for 2010.

During 2011, MBI, pursuant to its commercialization partnership with Precision Therapeutics, Inc., received licensing payments of $2,292,589 and, pursuant to its research collaboration with the University Health Network, paid a sublicense royalty fee of $222,816. As a result, MBI received in 2011 net licensing revenue of $2,069,733.

Research and Development

Research and development expenses were $94,519 for 2011 compared to $652,724 for 2010, representing a decrease of 86%.

General and Administrative

General and administrative expenses were $732,284 for 2011 compared to $2,102,588 for 2010, representing a decrease of 65%.

Liquidity and Capital Resources

At December 31, 2011, MBI had cash and equivalents totalling $685,170 and working capital of $556,446, compared to cash and equivalents of $126,797 and a working capital deficiency of $1,570,261 at December 31, 2010.

Cash provided by operating activities was $252,586 for 2011 compared to cash used in operating activities of $1,799,331 for 2010. The cash provided by operating activities consisted mainly of licensing revenue less salaries and related employee costs, payments to third parties and company operating costs.

Cash provided by investing activities was $64,499 for 2011 compared to $nil in 2010. The cash provided by investing activities consisted of proceeds from the disposal of capital assets.

Cash provided by financing activities was $212,930 for 2011 compared to $460,631 for 2010. The cash provided by financing activities consisted of proceeds of a private placement completed in 2011. During 2010, the Company received $95,040 from the exercise of warrants.

Results from Annual General Meeting

On April 2, 2012, MBI announced that the annual meeting of MBI shareholders scheduled for, and convened on March 30, 2012, was adjourned due to the lack of requisite quorum. The meeting reconvened on April 10, 2012 at which time the shareholders represented in person or by proxy at the meeting constituted quorum.

All resolutions put to MBI shareholders at the meeting as proposed by the MBI board of directors were approved.

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. MBI and Precision Therapeutics have partnered to commercialize MBI's flagship test, LungExpress Dx. For more information on MBI, please visit www.medbiogene.com. For more information on Precision Therapeutics, please visit www.precisiontherapeutics.com.

Certain statements in this press release contain forward-looking statements and information ("forward-looking statements") under applicable United States and 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 statements, although not all forward-looking statements contain these identifying words. Forward looking statements include, but are not limited to, that with respect to the timing, completion and/or results of clinical trials or studies, future profits, future product revenues, future shareholder value, future operations and plans, the completion and use of proceeds from transactions or financings and the prospects for negotiating partnerships or collaborations and their timing. These forward-looking statements are only a prediction based upon the party's current expectations, and actual events or results may differ materially. A party 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 a party'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. A party's forward-looking statements do not reflect the potential impact of any future partnerships, collaborations, acquisitions, mergers, dispositions, joint ventures or investments that that party may make. All forward-looking statements are qualified in their entirety by this cautionary statement and a party 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.

LungExpress Dx is MBI's trademark. Each trademark, trade name or service mark of any other entity appearing in this news release belongs to its holder.

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

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