Welcome!

News Feed Item

Med BioGene Reports Financial Results for Q3 2012

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).

Business Highlights

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.

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
"We are still a relatively small software house and we are focusing on certain industries like FinTech, med tech, energy and utilities. We help our customers with their digital transformation," noted Piotr Stawinski, Founder and CEO of EARP Integration, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"I think DevOps is now a rambunctious teenager – it’s starting to get a mind of its own, wanting to get its own things but it still needs some adult supervision," explained Thomas Hooker, VP of marketing at CollabNet, in this SYS-CON.tv interview at DevOps Summit at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"We've been engaging with a lot of customers including Panasonic, we've been involved with Cisco and now we're working with the U.S. government - the Department of Homeland Security," explained Peter Jung, Chief Product Officer at Pulzze Systems, in this SYS-CON.tv interview at @ThingsExpo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"We're here to tell the world about our cloud-scale infrastructure that we have at Juniper combined with the world-class security that we put into the cloud," explained Lisa Guess, VP of Systems Engineering at Juniper Networks, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"I will be talking about ChatOps and ChatOps as a way to solve some problems in the DevOps space," explained Himanshu Chhetri, CTO of Addteq, in this SYS-CON.tv interview at @DevOpsSummit at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
With tough new regulations coming to Europe on data privacy in May 2018, Calligo will explain why in reality the effect is global and transforms how you consider critical data. EU GDPR fundamentally rewrites the rules for cloud, Big Data and IoT. In his session at 21st Cloud Expo, Adam Ryan, Vice President and General Manager EMEA at Calligo, will examine the regulations and provide insight on how it affects technology, challenges the established rules and will usher in new levels of diligence...
SYS-CON Events announced today that SkyScale will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. SkyScale is a world-class provider of cloud-based, ultra-fast multi-GPU hardware platforms for lease to customers desiring the fastest performance available as a service anywhere in the world. SkyScale builds, configures, and manages dedicated systems strategically located in maximum-securit...
"We are an IT services solution provider and we sell software to support those solutions. Our focus and key areas are around security, enterprise monitoring, and continuous delivery optimization," noted John Balsavage, President of A&I Solutions, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
Your homes and cars can be automated and self-serviced. Why can't your storage? From simply asking questions to analyze and troubleshoot your infrastructure, to provisioning storage with snapshots, recovery and replication, your wildest sci-fi dream has come true. In his session at @DevOpsSummit at 20th Cloud Expo, Dan Florea, Director of Product Management at Tintri, provided a ChatOps demo where you can talk to your storage and manage it from anywhere, through Slack and similar services with...
The financial services market is one of the most data-driven industries in the world, yet it’s bogged down by legacy CPU technologies that simply can’t keep up with the task of querying and visualizing billions of records. In his session at 20th Cloud Expo, Karthik Lalithraj, a Principal Solutions Architect at Kinetica, discussed how the advent of advanced in-database analytics on the GPU makes it possible to run sophisticated data science workloads on the same database that is housing the rich...
SYS-CON Events announced today that Calligo has been named “Bronze Sponsor” of SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Calligo is an innovative cloud service provider offering mid-sized companies the highest levels of data privacy. Calligo offers unparalleled application performance guarantees, commercial flexibility and a personalized support service from its globally located cloud platfor...
"We want to show that our solution is far less expensive with a much better total cost of ownership so we announced several key features. One is called geo-distributed erasure coding, another is support for KVM and we introduced a new capability called Multi-Part," explained Tim Desai, Senior Product Marketing Manager at Hitachi Data Systems, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
DevOps at Cloud Expo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 21st Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to w...
There is a huge demand for responsive, real-time mobile and web experiences, but current architectural patterns do not easily accommodate applications that respond to events in real time. Common solutions using message queues or HTTP long-polling quickly lead to resiliency, scalability and development velocity challenges. In his session at 21st Cloud Expo, Ryland Degnan, a Senior Software Engineer on the Netflix Edge Platform team, will discuss how by leveraging a reactive stream-based protocol,...
"At the keynote this morning we spoke about the value proposition of Nutanix, of having a DevOps culture and a mindset, and the business outcomes of achieving agility and scale, which everybody here is trying to accomplish," noted Mark Lavi, DevOps Solution Architect at Nutanix, in this SYS-CON.tv interview at @DevOpsSummit at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.