ProMetic Life Sciences Inc.
TSX : PLI

ProMetic Life Sciences Inc.

November 13, 2008 18:30 ET

ProMetic Reports Business Highlights and Third Quarter Financial Results

- $10.7 M of cash receipts in Q3 2008 from sales and strategic investment - $3.3 M in revenue in Q3 2008 versus $0.7 M in Q3 2007 - Significant decrease in net loss due to growing revenues, efficiencies and cost reductions - Commercial use of Prion Capture technology impacting Q4 2008 revenue

MONTREAL, QUEBEC--(Marketwire - Nov. 13, 2008) - ProMetic Life Sciences Inc. (TSX:PLI) ("ProMetic") today reported business highlights and financial results for the third quarter of 2008. All amounts are in Canadian dollars unless otherwise indicated.

"The third quarter of 2008 represented a turning point for ProMetic. The combination of $3.3 M in revenue and the $7.4 M of cash injection from the strategic deal with Abraxis BioScience, Inc. signals tangible, and more importantly, sustainable growth for the business," commented Mr. Pierre Laurin, ProMetic's President and Chief Executive Officer. "This will be further confirmed in Q4 2008 with revenue expected to reach new levels and providing a solid foundation for on-going growth in 2009. This expected revenue escalation is fuelled by the increasing and recurring use of our proprietary affinity products by major pharmaceutical companies, the prion capture products entering commercial phase, and by licensing and service revenues arising from strategic agreements such as the ones entered with Kedrion S.p.A., Abraxis BioScience, Inc., and Sartorius Stedim BioTech," added Mr. Laurin.

"Given the difficult market conditions, now more than ever it is important for management to carefully control cash. We are doing so and remain confident in our ability to operate the business within existing cash reserves and by using predicted cash inflows from operations," commented Bruce Pritchard, ProMetic's Chief Financial Officer.

BUSINESS UPDATE

Protein Technologies

- Proprietary Affinity products -

- Strategic Agreements with Abraxis BioScience, Inc. ("Abraxis") for the development and commercialization of four biopharmaceutical products targeting underserved medical conditions. The transaction includes:

- Initial strategic investment in ProMetic of $7.4 M at $0.47 per share;

- Revenues to be derived from three further Agreements with Abraxis:

- a Service Agreement pursuant to which Abraxis engages ProMetic for various product development activities leading to the filing of Investigational New Drug Applications with the Food and Drug Administration; work has commenced on the development activities for two of the four biopharmaceutical products, which will allow recognition of development service fee income this year;

- a Licensing Agreement that includes development and sales milestone payments, as well as royalties to ProMetic on nets sales of the four products commercialized by Abraxis;

- a Manufacturing Agreement whereby ProMetic would manufacture the bulk active ingredients for clinical trial requirements and upon product commercialization.

- ProMetic launched its new FAbsorbent™ F1P and has already received orders for this product. FAbsorbent™ F1P has been developed to better accommodate the needs of companies that have, in the past, relied on Protein L or traditional multi-step methods for the capture and purification of antibody fragments. FAbsorbent™ F1P is a unique product with broad applicability that addresses the manufacturing needs of a new generation of monoclonal antibody fragments. ProMetic will service these companies with its own sales team, thus retaining 100% of the revenues arising from product sales.

- Technology transfer milestones have been achieved with both Blue Blood Biotech Corporation ("Blue Blood") in Taiwan and Kedrion S.p.A. in Italy.

- ProMetic's collaboration with Sartorius Stedim BioTech ("Sartorius"), a world-leading provider of cutting-edge equipment and services for the development, quality assurance and manufacturing processes of biopharmaceutical products, has resulted in revenue from the successful technology transfer phase with respect to the Blue Blood project. Through this alliance, as well as the Wuhan Institute for Biological Products project, ProMetic is anticipating to generate annual revenues in excess of $60 M upon the joint projects reaching a commercial status in Asia.

- Prion Capture products

- The incorporation of the Prion Capture technology in industrial processes is set to generate revenue in excess of $30 M over the next five years, starting in Q4 2008. The P-Capt® Prion Capture filter phased-in adoption is proceeding as planned in Ireland, Scotland and in the rest of the UK, also with revenue for ProMetic in 2008.

Therapeutics

- The third quarter of 2008 saw further consolidation of ProMetic's proprietary position for PBI-1402 and its analogues, as well as partnering discussions have been at the centre of the activities for this division. The Company intends to provide an update on these activities in the near future.

Corporate

- The Company has discharged its obligation to the Bank of Montreal by repaying in full its debt obligation. This repayment not only removes a significant liability from the Company's balance sheet, but also releases the business from a hypothec held by the bank over the assets of the business;

- Furthermore, payments made under other loan arrangements have significantly reduced the level of long-term indebtedness on the balance sheet.

Third Quarter 2008 Financial Results

The following information should be read in conjunction with the financial statements for the third quarter 2008 as well as the Management Discussion and Analysis for the same period.

Total revenues, which were only derived from the Company's Protein Technologies unit, for the third quarter of 2008 were $3.3 million compared with $0.7 million for the third quarter of 2007.

The Company incurred a net loss of $3.6 million, or $0.01 per share (basic and diluted), for the quarter ended September 30, 2008 compared with a net loss of $7.0 million, or $0.03 per share (basic and diluted), for the same period in 2007. The decrease in net loss is as a result of growing revenues, efficiencies and cost savings being driven in the business, the whole in line with the recent message to shareholders provided by the Company.

Management fully anticipates that, as the protein technologies business continues to extend the commercialisation of its technology, significant, sustainable revenues and cash will be generated. Details will be announced in public statements at the appropriate time.

Ultimately, the business ended the quarter with $5.0 million in cash and cash equivalents, compared with $2.2 million as at 31 December 2007.

ProMetic's MD&A, 2008 Third Quarter Financial Statements and Supplement have been filed on Sedar (www.sedar.com). The MD&A and Third Quarter Financial Statements are now available on its web site at www.prometic.com.

Conference Call / Webcast Details

ProMetic will be hosting a conference call and webcast on Friday, November 14, 2008 at 09:00 (EST) following the release of its third quarter 2008 financial results on Thursday, November 13, 2008 after close of market.

The conference call may be accessed by way of telephone or webcast. The numbers to access the conference call are (416) 644-3428 (international) and 1 (800) 814-4862 (toll free). A live audio webcast of the conference call will be available through ProMetic's website at http://www.prometic.com/en/investors/presentations-webcasts.php. Please connect at least five minutes prior to the conference call to ensure adequate time for any software download that may be needed to hear the webcast. A replay of the call will be available by telephone for a period of seven days as of Friday, November 14, 2008 at 12:00 (EST). The numbers to access the audio replay are (416) 640-1917 (international) and 1 (877) 289-8525 (toll free) using access code 21289053. Afterwards, the webcast may be downloaded directly from ProMetic's website.

About ProMetic Life Sciences Inc.

ProMetic Life Sciences Inc. ("ProMetic") (www.prometic.com) is a biopharmaceutical company specialized in the research, development, manufacture and marketing of a variety of commercial applications derived from its proprietary Mimetic Ligand™ technology. This technology is used in large-scale purification of biologics and the elimination of pathogens. ProMetic is also active in therapeutic drug development with the mission to bring to market effective, innovative, lower cost, less toxic products for the treatment of hematology and cancer. Its drug discovery platform is focused on replacing complex, expensive proteins with synthetic "drug-like" protein mimetics. Headquartered in Montreal (Canada), ProMetic has R&D facilities in the U.K., the U.S. and Canada, manufacturing facilities in the U.K. and business development activities in the US, Europe, Asia and in the Middle-East.

Forward Looking Statements

This press release contains forward-looking statements about ProMetic's objectives, strategies and businesses that involve risks and uncertainties. These statements are "forward-looking" because they are based on our current expectations about the markets we operate in and on various estimates and assumptions. Actual events or results may differ materially from those anticipated in these forward-looking statements if known or unknown risks affect our business, or if our estimates or assumptions turn out to be inaccurate. Such risks and assumptions include, but are not limited to, ProMetic's ability to develop, manufacture, and successfully commercialize value-added pharmaceutical products, the availability of funds and resources to pursue R&D projects, the successful and timely completion of clinical studies, the ability of ProMetic to take advantage of business opportunities in the pharmaceutical industry, uncertainties related to the regulatory process and general changes in economic conditions. You will find a more detailed assessment of the risks that could cause actual events or results to materially differ from our current expectations on page 21 of ProMetic's Annual Information Form for the year ended December 31, 2007, under the heading "Risk Factors". As a result, we cannot guarantee that any forward-looking statement will materialize. We assume no obligation to update any forward-looking statement even if new information becomes available, as a result of future events or for any other reason, unless required by applicable securities laws and regulations.

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