VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 25, 2013) - Med BioGene Inc. (TSX VENTURE:MBI) today provided an update in regard to its ongoing litigation with Signal Genetics LLC and Respira Health LLC.
In February 2011, Signal and Respira filed a lawsuit against MBI and its commercial partner, Precision Therapeutics, Inc., in the Supreme Court of the State of New York asserting twelve causes of action against MBI. MBI continues to believe that the lawsuit is frivolous, vexatious and entirely without merit and is defending the lawsuit vigorously. MBI has received financial support from Precision to, among other things, conduct such defense (half of which is credited against future royalties that may be owed to MBI by Precision) and to cover any settlement or award of damages made against MBI, subject in all cases to certain threshold limits.
Discovery in the lawsuit has been completed and, on August 24, 2012, MBI filed with the Court a motion for partial summary judgment to dismiss Signal and Respira's claims for lost profits arising from alleged breaches of contract and the duty of good faith and fair dealing, and causes of action for negligent misrepresentation, unfair competition and unjust enrichment.
On February 20, 2013, the Court heard oral argument in connection with MBI's motion. In a Decision and Order of the same date, the Court granted MBI's motion and dismissed Signal and Respira's: (1) claims against MBI for lost profit damages arising from alleged breaches of contract and the duty of good faith and fair dealing; (2) cause of action against MBI for negligent misrepresentation; and (3) cause of action against MBI for unfair competition. No trial date has been set with respect to the remaining claims.
Erinn Broshko, MBI's Executive Chairman commented: "This decision is a significant setback for Signal and Respira. We have always believed that the lawsuit is entirely without merit and are confident that we will be successful in having the remaining claims and causes of action dismissed."
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. MBI and Precision Therapeutics have partnered for the global commercialization of LungExpress Dx. For more information about Precision Therapeutics, please visit www.precisiontherapeutics.com. Med BioGene's common shares are listed for trading on the TSX Venture Exchange. For more information about MBI, please visit www.medbiogene.com.
About LungExpress Dx
LungExpress Dx is a proprietary gene expression-based test to improve upon staging for identifying those patients with early-stage non-small-cell lung cancer (NSCLC) who, following surgical removal of their tumor, are at higher and lower risks of mortality. In an initial study of patient specimens from the National Cancer Institute of Canada Clinical Trials Group JBR.10 trial, published in the Journal of Clinical Oncology, patients classified by LungExpress Dx as higher risk benefited from adjuvant chemotherapy, and those classified as lower risk did not benefit and may have experienced a detrimental effect from adjuvant chemotherapy. LungExpress Dx was subsequently validated in predicting patient mortality in four independent studies involving data from tumor specimens totaling 676 untreated early-stage NSCLC patients. LungExpress Dx is expected to provide better-informed and personalized treatment decisions to assist in the selection of patients for adjuvant chemotherapy.
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Med BioGene Inc.
Erinn B. Broshko