VANCOUVER, Nov. 29 /CNW/ - Med BioGene Inc. (TSX Venture: MBI), an
emerging biotechnology company developing genetic biomarkers for use in
improving diagnosis, prognosis and treatment decisions for patients suffering
from certain cancers and cardiovascular disease, today reported that it
appointed John H. Rayson, M.D. as its new Chairman of the Board and further
reported its financial results for the three months ending September 30, 2006.
APPOINTMENT OF JOHN H. RAYSON, M.D. AS CHAIRMAN OF THE BOARD
The Board of Directors of MBI on November 25, 2006 appointed John H.
Rayson as its new Chairman of the Board, replacing the founder of MBI and its
President and Chief Scientific Officer, Dr. T. Nathan Yoganathan. Dr.
Yoganathan stated "We are very pleased that Dr. Rayson has accepted the
appointment of Chairman. Dr. Rayson's experience and accomplishments in the
industry are invaluable in assisting Med BioGene's efforts to develop its
genetic biomarkers and his increased role with the company as Chairman is
consistent with our commitment to the highest corporate governance standards."
Dr. Rayson has been a director of MBI since 2004. Dr. Rayson practiced
family medicine for 27 years before joining MDS Metro Laboratory Services in
1994 as President and Chief Executive Officer, a position he held until 2001
when he became Chief Executive Officer and Executive Vice Chairman. Dr. Rayson
retired as CEO in June 2006 but continues as Executive Vice Chairman. MDS
Metro Laboratory Services is part of the diagnostics division of MDS Inc.
(TSX: MDS; NYSE: MDZ).
FINANCIAL RESULTS FOR THIRD QUARTER 2006
Recent Business and Scientific Highlights
<<
- November 10, 2006, MBI was approved by the Cooperative Human Tissue
Network ("CHTN"), an initiative of the National Cancer Institute in
the United States, to receive diseased lymphoma and leukemia samples
for use in the validation of its genetic biomarkers. The CHTN
specializes in the prospective procurement, preservation and
distribution to approved researchers and organizations of human
tissues for research.
- September 25, 2006, MBI entered the development and validation phase
for its genetic biomarkers for cardiovascular disease. Furthermore,
MBI began a joint pilot project with the Ottawa Heart Institute
Research Corporation, the clinical and contract research arm of the
University of Ottawa Heart Institute, to develop and validate its
genetic biomarkers for cardiovascular disease.
- August 3, 2006, MBI announced promising results of its pre-clinical
studies involving its genetic biomarkers for lymphoma. The studies of
fifty RNA samples derived from human lymphoma tissues suggest that
MBI's biomarkers can be used as an effective tool for accurate and
rapid disease diagnosis and to unlock innovation in therapeutic
development and treatment. Furthermore, MBI narrowed its lymphoma
biomarkers to approximately 100 genes, thus increasing the
effectiveness of the product as a manageable diagnostic tool.
>>
Erinn B. Broshko, Chief Executive Officer of MBI, stated "Med BioGene has
made impressive progress over the last quarter as we continued to develop our
genetic biomarkers for lymphoma and expect to meet certain important
scientific milestones in the second quarter of 2007 regarding the accuracy,
sensitivity and specificity of the biomarkers. Upon meeting such milestones,
we will be in a position to initiate discussions with potential partners to
license our lymphoma biomarkers for use as an effective tool for accurate and
rapid disease diagnosis and prognosis. We are also aggressively developing our
genetic biomarkers for leukemia and, through our joint pilot project with the
Ottawa Heart Institute Research Corporation, cardiovascular disease."
Financial Results for Third Quarter 2006
For the three months ending September 30, 2006, MBI reported a net loss
of $407,682 ($0.02 per share) compared to a net loss of $232,786 ($0.03 per
share) for the three months ended September 30, 2005. The increase was
primarily due to increased research and development expenses of $45,909 and
increased general and administrative expenses of $158,950.
Research and Development
Research and development expenditures were $165,025 for the three months
ended September 30, 2006 compared to $119,116 for the three months ended
September 30, 2005. Included in research and development expenditures is the
impact of government assistance received and investment tax credits. The
increase in spending was due primarily to stock-based compensation costs of
$61,227 which were offset by decreases in personnel costs and laboratory
supplies. In addition, there were $105,237 of government grants and refundable
tax credits recorded in the three months ended September 30, 2005, which
offset the related research and development costs incurred in that quarter,
compared to $10,126 for the three months ended September 30, 2006.
General and Administrative
General and administrative expenses were $253,445 for the three months
ended September 30, 2006 compared to $94,495 for the three months ended
September 30, 2005. The increase was due primarily to stock-based compensation
costs of $152,023 and public company costs, such as filing and printing fees,
of $7,827.
Liquidity and Capital Resources
Effective April 28, 2006, in conjunction with the listing of MBI's common
shares on the TSX Venture Exchange, MBI completed a private placement
financing for gross proceeds of $2 million. MBI has sufficient capital to
satisfy the operating expenses and capital requirements required to meet its
business objectives as currently planned for at least eight months. However,
MBI will require additional capital to complete the development of its product
candidates, begin development of additional products or undertake a strategic
alliance. In such cases, MBI would review the different alternatives for
obtaining additional funding from one or several sources such as granting
licenses or disposing of certain non-core assets, cooperative research and
development agreements, government grants, tax credits, the issuance of
treasury shares if markets are favourable and other financial arrangements.
MBI's inability to obtain the necessary capital would adversely affect its
ability to complete such projects or strategic alliances.
CORPORATE MATTERS
MBI has granted to certain of its employees five-year incentive stock
options to purchase an aggregate of 50,000 common shares at an exercise price
of $0.40 per share. These option grants were made pursuant to the Med BioGene
Inc. 2006 Incentive Stock Option Plan and in the normal course of business.
ABOUT MED BIOGENE
MBI is a biotechnology company with advanced research and development in
gene expression technology. MBI intends to utilize its expertise in gene
expression to identifying those genes, known as "biomarkers," which mark the
presence of various diseases. These biomarkers will be used as an effective
tool for accurate and rapid disease diagnosis and to unlock innovation in
therapeutic development and treatment. With a robust set of qualified
biomarkers, disease diagnosis will be quicker, less invasive and more accurate
and the safety of new therapeutics will be increased, drug products will get
to patients in less time and treatment decisions will be more informed.
MBI is currently focused on developing and validating biomarkers in
respect of lymphoma, leukemia and cardiovascular disease through its Gene
Expression Profiling System(TM).
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.
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
are not limited to, those 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.
These forward-looking statements or information are only predictions 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 forwardlooking information. Forward-looking information is
subject to known and unknown risks and uncertainties and are 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. Our forward-looking information does not reflect the potential impact
of any future partnerships, collaborations, acquisitions, mergers,
dispositions, joint ventures or investments 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.
