VANCOUVER, BRITISH COLUMBIA--(Marketwire - November 29, 2010) - Med BioGene Inc. (TSX VENTURE: MBI) today reported its financial results for the three and nine months ending September 30, 2010 (all amounts are in United States dollars).
MBI incurred a loss of $2,785,717 ($0.04 per share) for the first nine months of 2010 compared to a loss of $1,557,271 ($0.03 per share) for the first nine months of 2009. Comparing the third quarter of 2010 to the third quarter of 2009, MBI incurred a loss of $1,765,687 ($0.02 per share) and $616,449 ($0.01 per share), respectively. MBI did not generate any revenue during the first nine months of 2010 or the first nine months of 2009.
Research and Development
Research and development expenses were $574,632 for the first nine months of 2010 compared to $708,136 for the first nine months of 2009, representing a decrease of 19%. Comparing the third quarter of 2010 with the corresponding quarter from 2009, research and development expenses decreased by 45% to $194,224 from $354,675.
General and Administrative
General and administrative expenses were $2,153,724 for the first nine months of 2010 compared to $794,672 for the first nine months of 2009. Consistent with MBI's press release of November 2, 2010, it was then determined that the closing of the proposed United States initial public offering was no longer considered to be likely and, as such, MBI wrote-off the deferred costs associated with the offering in the amount of $1,342,700. Apart from these offering costs, general and administrative expenses increased by 8%. Comparing the third quarter of 2010 with the corresponding quarter from 2009, general and administrative expenses decreased slightly by 2% to $282,804 from $286,888.
Liquidity and Capital Resources
At September 30, 2010, MBI had cash and equivalents totalling $234,952 and a working capital deficiency of $1,553,517, compared to cash and equivalents of $1,522,428 and working capital of $642,166 at December 31, 2009.
Cash used in operating activities was $1,745,363 for the first nine months of 2010 compared to $1,138,249 for the nine months ended September 30, 2009. The cash used in operating activities consisted mainly of salaries and related employee costs, payments to third parties and company operating costs. As described above, as at September 30, 2010, MBI wrote-off deferred costs relating to the proposed United States initial public offering and, as such, removed such costs from the balance sheet and expensed the same in the current period. The Offering costs consisted mainly of legal, accounting, printing and investor relations consulting.
During the nine month periods ended September 30, 2010 and 2009, there was no investing activity.
Cash provided by financing activities was $460,631 for the nine months ended September 30, 2010 compared to $1,362,363 of cash provided from financing activities during the nine months ended September 30, 2009. During the first nine months of 2010, MBI received $95,040 from the exercise of warrants.
About Med BioGene
MBI is a life science company focused on the development and commercialization of genomic-based personalized clinical laboratory diagnostic tests. MBI is committed to advancing personalized medicine by commercializing tests that provide clinically relevant information to improve patient treatment and reduce health care costs. For more information, please visit www.medbiogene.com.
Certain statements in this press release contain forward-looking information and statements ("forward-looking statements") under applicable Canadian and United States 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 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 are only a prediction 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 statements. Forward-looking statements are 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 these forward-looking statements, which speak only as of the date of this press release. MBI's forward-looking statements do not reflect the potential impact of any future partnerships, collaborations, acquisitions, mergers, dispositions, joint ventures or investments that MBI may make. All forward-looking statements are qualified in their entirety by this cautionary statement and MBI 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.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.