VANCOUVER, May 30 /CNW/ - Med Biogene Inc. (TSX-V - MBI) today reported
its financial results for the quarter ending March 31, 2006.
First Quarter 2006 Financial Results
For the quarter ending March 31, 2006 MBI reported a net loss of $238,737
($0.02 per share) compared to a net loss of $101,122 ($0.01 per share) for the
quarter ended March 31, 2005. The increase in net loss is primarily a result
of an increase in costs related to the acquisition of Dragon-Tex (Group)
Limited ("Dragon-Tex") and concurrent listing of shares on the TSX Venture
Exchange, which was completed on April 28, 2006.
Research and Development
Research and development expenditures, which are net of government
assistance received and investment tax credits, were $47,068 for the quarter
ended March 31, 2006 compared to $67,225 for the quarter ended March 31, 2005.
The decrease was due primarily to a decrease in laboratory supplies expenses
of $30,416 and a decrease in consulting fees of $14,189. We anticipate these
expenses to increase as the company continues to expand its research and
development activities related to the development of MBI's Hematological
Cancer Profiling System.
General and Administrative
General and administrative expenses were $25,052 for the quarter ended
March 31, 2006 compared to $18,944 for the quarter ended March 31, 2005. The
increase was primarily due to increased professional fees and sales and
marketing related expenses for printing and website design.
Transaction costs
Transaction costs consist of professional and filing fees incurred to
complete the acquisition of Dragon-Tex and were $150,408 for the quarter ended
March 31, 2006. There were no such costs in 2004.
Liquidity and Capital Resources
Effective April 28, 2006, MBI completed a Private Placement which yielded
sufficient capital for MBI to satisfy the operating expenses and capital
requirements required to meet MBI's business objectives for at least twelve
months. However, additional capital will be required to complete the
development of MBI's product candidates or to undertake a strategic
acquisition. 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 acquisitions.
About Med BioGene
MBI is a biotechnology company with advanced research expertise in gene
expression technology. MBI's mission is to become a market leader in the
supply of content for molecular-based diagnostic micro arrays. MBI intends to
fulfill this mission by developing and marketing genetic content for
molecular-based human diagnostic tests. Molecular diagnostics, based on
genetic expression, is a developing technology field that has the potential to
replace certain of today's standard diagnostic tests. MBI intends to utilize
its expertise in gene expression, bioinformatics and micro arrays to develop
the diagnostic tests' genetic content. From the tens of thousands of genes in
the human genome, MBI is attempting to identify those genes, known as "bio
markers," which mark the presence of various disease conditions.
MBI's initial focus will be developing diagnostic tests for certain types
of cancer, specifically, lymphoma and leukemia. In the future, MBI intends to
develop diagnostic tests to identify the earliest stages of heart disease or
the presence of an infectious disease. These diagnostic test kits will be
designed to provide additional information to physicians to allow them to
create more suitable and more effective treatments for an improved patient
prognosis.
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 forward-looking information. Forward-looking information is
subject to known and unknown risks and uncertainties and 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,
collaborations, 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.
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