VANCOUVER, May 18 /CNW/ - Med Biogene Inc. (TSX-V - MBI) ("MBI") today
reported its financial results for the year ending December 31, 2005.
2005 Financial Results
For the year ended December 31, 2005 the Company reported a net loss of
$893,416 ($0.10 per share) compared to a net loss of $429,918 ($0.05 per
share) for the year ended December 31, 2004.
Revenue
MBI had revenues of $33,742 for the year ended December 31, 2005 compared
to $18,000 for the year ended December 31, 2004. The increase in revenues was
primarily due to an increase in the delivery of microarray services to
customers. This source of revenue is ancillary to MBI's core business
operations, being the advanced research and development of gene expression
technology, and may not be generated in the future.
Research and Development
For the year ended December 31, 2005 research and development expenses
were $401,176 compared to $222,634 for the year ended December 31, 2004. The
increase was due primarily to increases in personnel and laboratory supplies
expenses and was partially offset by a decrease in consulting fees and
increases in government grants received and investment tax credits recorded.
Overall, the increase in research and development expenditures resulted
primarily from greater research and development activity related to the
development of MBI's Hematological Cancer Profiling System.
General and Administrative
For the year ended December 31, 2005, general and administrative expenses
were $182,288 compared to $206,029 for the year ended December 31, 2004. The
decrease was primarily due to a decrease in professional fees which were
primarily recorded as transaction costs in 2005.
Transaction costs
For the year ended December 31, 2005, transaction costs consist of
professional and filing fees incurred to complete the amalgamation with
Dragon-Tex and were $281,798. There were no such costs in 2004.
Liquidity and Capital Resources
Effective April 28, 2006, MBI completed a private placement for gross
proceeds of approximately $2 million. Such proceeds is expected to satisfy
MBI's 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 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.
