VANCOUVER, BRITISH COLUMBIA--(Marketwire -11/29/11)- Med BioGene Inc. (TSX-V: MBI.V - News) today reported its financial results for the nine months ended September 30, 2011 (all amounts are in United States dollars).
- April 15, 2011 - MBI closed its commercialization, license and
research reimbursement agreement with Precision Therapeutics. The
agreement provides to Precision exclusive global rights to develop and
commercialize LungExpress Dx.
Under terms of the agreement, Precision has paid to MBI license fees
and research reimbursement of US$2.3 million, half of which is
credited against future royalties that may be owed to MBI by
Precision. In addition, MBI is eligible to receive up to US$1.0
million in payments based on achievement of certain milestones
associated with the development and commercialization of LungExpress
Dx, all of which are credited against future royalties that may be
owed to MBI by Precision. MBI will receive royalty payments based on a
market percentage rate of Precision's future revenues associated with
the commercialization of LungExpress Dx or any other products
incorporating MBI's technology. Precision is responsible for all
future costs associated with the development and commercialization of
Precision is a Pittsburgh, Pennsylvania-based private, venture
capital-backed company. MBI and Precision believes that LungExpress Dx
will be a synergistic and important addition to Precision's flagship
test, ChemoFx®. Whereas LungExpress Dx can identify early non-small-
cell lung cancer (NSCLC) stage patients who have a poor prognosis and
may benefit from chemotherapy, ChemoFx seeks to quantify an individual
patient's probable tumor response to various chemotherapeutic and
biologic agents. In 2010, Precision received approximately 21,500 live
tissue specimens for its ChemoFx test from across all fifty states (as
well as certain countries outside the U.S.), of which more than 15%
were in NSCLC.
Precision intends to apply the same commercial and clinical strategy
applied to ChemoFx pertaining to clinical trial validation, selling
and marketing and test reimbursement to LungExpress Dx to drive
increasing awareness, acceptance and adoption of LungExpress Dx as a
stand-alone product and as a compliment to ChemoFx.
Precision has approximately 270 employees, including a selling and
marketing team consisting of more than 70 employees who currently work
with over 700 treating physicians in oncology. Precision performs all
clinical testing at its certified laboratories in Pittsburgh.
Third Quarter 2011 Financial Results
MBI reported net income of $2,071,515 ($0.02 per share) for the nine months ended September 30, 2011 compared to a loss of $2,761,991 ($0.04 per share) for the nine months ended September 30, 2010. MBI generated licensing revenue of $2,292,589 during the nine months ended September 30, 2011 but did not generate any revenue during the nine months ended September 30, 2010.
Research and Development
Research and development expenses were $123,161 for the nine months ended September 30, 2011 compared to $574,632 for the nine months ended September 30, 2010, representing a decrease of 79%.
General and Administrative
General and administrative expenses were $443,397 for the nine months ended September 30, 2011 compared to $2,131,243 for the nine months ended September 30, 2010, representing a decrease of 79%.
Liquidity and Capital Resources
At September 30, 2011, MBI had cash and equivalents totalling $853,317 and working capital of $677,061, compared to cash and equivalents of $126,797 and a working capital deficiency of $1,570,261 at December 31, 2010. Under the terms of the commercialization agreement, Precision paid to MBI the aggregate $2.3 million in license fees and research reimbursement. Such total amount paid by Precision to MBI, not including research reimbursement allocated to such amount totaling over $1 million, is subject to MBI's obligation to pay to the University Health Network royalties of a percentage in the high teens pursuant to the sublicensing of technology licensed by MBI from the University Health Network of which $222,816 was paid during the nine months ended September 30, 2011.
Cash provided by operating activities was $472,662 in the nine months ended September 30, 2011 compared to cash used in operating activities of $1,745,363 in the nine months ended September 30, 2010.
Cash provided by financing activities was $212,930 in the nine months ended September 30, 2011 compared to cash provided by financing activities of $460,631 in the nine months ended September 30, 2010.
Effective November 15, 2011, Erinn B. Broshko moved from the position of Chief Executive Officer to Executive Chairman of MBI. Mr. Broshko's executive services to the Company are unchanged and he is providing such services pursuant to a consulting agreement.
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. ChemoFx is Precision's registered trademark. Each trademark, trade name or service mark of any other entity appearing in this news release belongs to its holder.
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