|By Marketwired .||
|November 29, 2012 10:30 PM EST||
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 11/30/12 -- Med BioGene Inc. (TSX VENTURE:MBI) today reported its financial results for the nine months ended September 30, 2012 (all amounts are in United States dollars).
Commercialization of LungExpress Dx
MBI announced in October 2012 that its commercial partner, Precision Therapeutics, Inc., expects to commence commercialization of LungExpress Dx, a proprietary gene expression-based test for early-stage non-small-cell lung cancer, in its CLIA-certified laboratory by mid-2013.
-- In advance of commercialization, Precision has established an advisory board comprised of world leaders in lung cancer research and treatment from the United States, Canada, France and Italy. -- LungExpress Dx is currently validated for use with frozen tumour tissue. Precision is responsible for all costs associated with the development and commercialization of LungExpress Dx and is commencing clinical studies to validate the use of LungExpress Dx with tissue preserved by RNARetain, a molecular fixative. RNARetain eliminates the need to flash- freeze specimens and to keep specimens frozen throughout storage and transport, a process that can be cumbersome and costly. It also eliminates the need for preserving tissue in formalin, which is known to cross-link and degrade the nucleic acids rendering them less suitable for specific downstream molecular applications. -- These clinical studies are being conducted using patient specimens collected prospectively by Precision from a consortium of medical centers in the United States. This collection is complete and the final step of validation using RNARetain has begun.
Erinn Broshko, Executive Chairman of MBI, commented: "The commercial success of a molecular diagnostic test depends, in large measure, upon the extent of its integration into current pathological processes. The use of LungExpress Dx with RNARetain will allow pathologists to avoid the logistics involved with using flash-frozen tumor specimens and, instead, to handle and ship specimens at room temperature, thereby simplifying the process significantly. We believe that this will materially enhance the commercial prospects of our test and are encouraged by the progress made by Precision."
Restructuring of Milestone Payments Under Commercialization Agreement
Under the terms of MBI's commercialization agreement with Precision, Precision has paid to MBI license fees and research reimbursement of $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 $1 million in payments based on the achievement of certain milestones, all of which are credited against future royalties that may be owed to MBI by Precision. MBI and Precision amended in September 2012, among other things, these milestone payments such that Precision will now pay to MBI, following the commercial launch of LungExpress Dx, amounts totaling $500,000 and, following the achievement of $5 million in net revenues from LungExpress Dx, amounts totaling $500,000.
MBI will also receive royalty payments in the high single digits based on a percentage of Precision's future net revenues associated with the commercialization of LungExpress Dx.
Erinn Broshko further commented: "By restructuring the milestone payments in our commercialization agreement, we expect to extend MBI's cash runway following the commercialization of LungExpress Dx to allow us the opportunity to demonstrate increasing clinical and commercial success of our test. As a result of our focused burn rate, we believe that MBI currently has sufficient cash resources to continue with operations until approximately the first quarter of 2014. If Precision commercializes LungExpress Dx around the expected timeframe then, with receipt of the $500,000 in milestone payments from Precision relating to commercial launch, we believe that MBI will have sufficient cash resources to fund operations until approximately the third quarter of 2015."
Third Quarter 2012 Financial Results
MBI incurred a loss of $301,667 ($0.00 per share) for the nine months ended September 30, 2012 compared to having net income of $1,790,427 ($0.02 per share) for the nine months ended September 30, 2011. MBI incurred a loss of $78,239 ($0.00 per share) in the third quarter of 2012 compared to having net income of $1,575,650 ($0.02 per share) in the third quarter of 2011. MBI did not generate any revenue during the nine months ended September 30, 2012, but generated net licensing revenue of $2,069,773 during the nine months ended September 30, 2011.
Research and Development
Research and development expenses were $nil for the nine months ended September 30, 2012 compared to $123,161 for the nine months ended September 30, 2011. Comparing the third quarter of 2012 with the corresponding quarter of 2011, research and development expenses decreased to $nil from $14,511. Under the terms of MBI's partnership with Precision, Precision is responsible for all future costs associated with the development and commercialization of LungExpress Dx.
General and Administrative
General and administrative expenses, including non-cash share-based expenses associated with the prior issuance of stock options and foreign exchange, were $301,844 for the nine months ended September 30, 2012 compared to $443,397 for the nine months ended September 30, 2011, representing a decrease of 32%. Comparing the third quarter of 2012 with the corresponding quarter from 2011, general and administrative expenses decreased by 57% to $78,249 from $183,958.
Consistent with MBI's cost saving initiatives, general and administrative expenses, exclusive of non-cash share-based expenses associated with the prior issuance of stock options and foreign exchange, were $199,511 for the nine months ended September 30, 2012 and $59,474 for the three months ended September 30, 2012.
Liquidity and Capital Resources
At September 30, 2012, MBI had cash and equivalents totalling $458,964 and working capital of $356,614 compared to cash and equivalents of $685,170 and a working capital of $556,446 at December 31, 2011.
Cash used in operating activities was $226,923 for the nine months ended September 30, 2012 compared to cash provided by operating activities of $472,724 for the nine months ended September 30, 2011.
Cash provided by investing activities was $nil for the nine months ended September 30, 2012 compared to $64,499 for the nine months ended September 30, 2011. The cash provided by investing activities consisted of proceeds from the disposal of capital assets.
Cash provided by financing activities was $nil for the nine months ended September 30, 2012 compared to $212,930 for the nine months ended September 30, 2011. The cash provided by financing activities consisted of proceeds on issuance of shares.
About Med BioGene
MBI is a life science company based in Vancouver, British Columbia, that is currently focused on managing the license and rights to LungExpress Dx, a proprietary gene expression-based test for early-stage non-small-cell lung cancer. LungExpress Dx is expected to provide better-informed and personalized treatment decisions to assist in the selection of patients for adjuvant chemotherapy. MBI has partnered with Precision Therapeutics for the global commercialization of LungExpress Dx. MBI's common shares are traded on the TSX Venture Exchange. For more information regarding MBI, please visit www.medbiogene.com. For more information regarding Precision, 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, the timing for commercialization of any products, 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. Certain information included in this press release in respect of Precision and its scientific, clinical and/ or commercialization efforts have been provided to MBI by Precision. MBI may not have been able to confirm the accuracy of such information and you should not place undue reliance on any such information, including any information regarding Precision that would constitute forward-looking information. A redacted copy of the amended commercialization agreement between MBI and Precision may be found at www.sedar.com. Each trademark, trade name or service mark of any entity appearing in this news release belongs to its holder.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
Artificial Intelligence has the potential to massively disrupt IoT. In his session at 18th Cloud Expo, AJ Abdallat, CEO of Beyond AI, will discuss what the five main drivers are in Artificial Intelligence that could shape the future of the Internet of Things. AJ Abdallat is CEO of Beyond AI. He has over 20 years of management experience in the fields of artificial intelligence, sensors, instruments, devices and software for telecommunications, life sciences, environmental monitoring, process...
May. 5, 2016 07:45 PM EDT Reads: 1,496
In his session at 18th Cloud Expo, Sagi Brody, Chief Technology Officer at Webair Internet Development Inc., will focus on real world deployments of DDoS mitigation strategies in every layer of the network. He will give an overview of methods to prevent these attacks and best practices on how to provide protection in complex cloud platforms. He will also outline what we have found in our experience managing and running thousands of Linux and Unix managed service platforms and what specifically c...
May. 5, 2016 07:00 PM EDT Reads: 1,374
Increasing IoT connectivity is forcing enterprises to find elegant solutions to organize and visualize all incoming data from these connected devices with re-configurable dashboard widgets to effectively allow rapid decision-making for everything from immediate actions in tactical situations to strategic analysis and reporting. In his session at 18th Cloud Expo, Shikhir Singh, Senior Developer Relations Manager at Sencha, will discuss how to create HTML5 dashboards that interact with IoT devic...
May. 5, 2016 07:00 PM EDT Reads: 1,468
The IoTs will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform. In his session at @ThingsExpo, Craig Sproule, CEO of Metavine, will demonstrate how to move beyond today's coding paradigm and share the must-have mindsets for removing complexity from the development proc...
May. 5, 2016 06:00 PM EDT Reads: 1,034
We’ve worked with dozens of early adopters across numerous industries and will debunk common misperceptions, which starts with understanding that many of the connected products we’ll use over the next 5 years are already products, they’re just not yet connected. With an IoT product, time-in-market provides much more essential feedback than ever before. Innovation comes from what you do with the data that the connected product provides in order to enhance the customer experience and optimize busi...
May. 5, 2016 06:00 PM EDT Reads: 1,360
SYS-CON Events announced today that SoftLayer, an IBM Company, has been named “Gold Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. SoftLayer, an IBM Company, provides cloud infrastructure as a service from a growing number of data centers and network points of presence around the world. SoftLayer’s customers range from Web startups to global enterprises.
May. 5, 2016 05:00 PM EDT Reads: 1,268
Many private cloud projects were built to deliver self-service access to development and test resources. While those clouds delivered faster access to resources, they lacked visibility, control and security needed for production deployments. In their session at 18th Cloud Expo, Steve Anderson, Product Manager at BMC Software, and Rick Lefort, Principal Technical Marketing Consultant at BMC Software, will discuss how a cloud designed for production operations not only helps accelerate developer...
May. 5, 2016 05:00 PM EDT Reads: 1,364
A critical component of any IoT project is the back-end systems that capture data from remote IoT devices and structure it in a way to answer useful questions. Traditional data warehouse and analytical systems are mature technologies that can be used to handle large data sets, but they are not well suited to many IoT-scale products and the need for real-time insights. At Fuze, we have developed a backend platform as part of our mobility-oriented cloud service that uses Big Data-based approache...
May. 5, 2016 04:00 PM EDT Reads: 764
Peak 10, Inc., has announced the implementation of IT service management, a business process alignment initiative based on the widely adopted Information Technology Infrastructure Library (ITIL) framework. The implementation of IT service management enhances Peak 10’s current service-minded approach to IT delivery by propelling the company to deliver higher levels of personalized and prompt service. The majority of Peak 10’s operations employees have been trained and certified in the ITIL frame...
May. 5, 2016 04:00 PM EDT Reads: 1,184
trust and privacy in their ecosystem. Assurance and protection of device identity, secure data encryption and authentication are the key security challenges organizations are trying to address when integrating IoT devices. This holds true for IoT applications in a wide range of industries, for example, healthcare, consumer devices, and manufacturing. In his session at @ThingsExpo, Lancen LaChance, vice president of product management, IoT solutions at GlobalSign, will teach IoT developers how t...
May. 5, 2016 03:45 PM EDT Reads: 720
As the rapid adoption of containers continues, companies are finding that they lack the operational tools to understand the behavior of applications deployed in these containers, and how to identify issues in their application infrastructure. For example, how are multiple containers within an application impacting each other’s performance? If an application’s service is degraded, which container is to blame? In the case of an application outage, what was the root cause of the outage?
May. 5, 2016 03:00 PM EDT Reads: 1,175
Digital payments using wearable devices such as smart watches, fitness trackers, and payment wristbands are an increasing area of focus for industry participants, and consumer acceptance from early trials and deployments has encouraged some of the biggest names in technology and banking to continue their push to drive growth in this nascent market. Wearable payment systems may utilize near field communication (NFC), radio frequency identification (RFID), or quick response (QR) codes and barcodes...
May. 5, 2016 02:45 PM EDT Reads: 1,059
SYS-CON Events announced today that CollabNet (www.collabnet.com) a global leader in enterprise software development and delivery solutions that help customers create high-quality applications at speed, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. The CEO of CollabNet Flint Brenton will also present about DevOps challenges in today’s global, open, and heterogeneous world of software development.
May. 5, 2016 02:39 PM EDT Reads: 299
Much of the value of DevOps comes from a (renewed) focus on measurement, sharing, and continuous feedback loops. In increasingly complex DevOps workflows and environments, and especially in larger, regulated, or more crystallized organizations, these core concepts become even more critical. In his session at @DevOpsSummit at 18th Cloud Expo, Andi Mann, Chief Technology Advocate at Splunk, will show how, by focusing on 'metrics that matter,' you can provide objective, transparent, and meaningfu...
May. 5, 2016 02:30 PM EDT Reads: 1,204
SYS-CON Events announced today that Peak 10, Inc., a national IT infrastructure and cloud services provider, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Peak 10 provides reliable, tailored data center and network services, cloud and managed services. Its solutions are designed to scale and adapt to customers’ changing business needs, enabling them to lower costs, improve performance and focus inter...
May. 5, 2016 02:30 PM EDT Reads: 1,483