ProMetic Life Sciences Inc. Reports its First Quarter 2009 Highlights and Financial Results

MONTREAL, QUEBEC, CANADA--(Marketwire - May 14, 2009) - ProMetic Life Sciences Inc. (TSX: PLI)

- Q1 2009 revenue reached $3.8 M, an increase of nearly 120% over Q1 2008

- Protein Technologies Unit reports positive EBITDA of $0.5 M for Q1 2009

ProMetic Life Sciences Inc. (“ProMetic”) today reports business highlights and financial results for the first quarter of 2009. All amounts are in Canadian dollars unless otherwise indicated.

“In the first quarter of 2009, ProMetic has registering revenue growth from its Protein Technologies business and reduced costs leading to a significant reduction of $3.7 M in operating losses over the same period last year,” remarked Mr. Pierre Laurin, President and Chief Executive Officer of ProMetic. Mr. Laurin added: “This is a net result of our strategic decisions to focus on revenue generating and partnering activities. The Company is also pursuing non-dilutive initiatives to improve its balance sheet, including monetization of certain large value contracts and other forms of credit and development support from the governments of Quebec and Canada.”

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Highlights

Protein Technologies

- In the first quarter of 2009, the Protein Technologies Unit entered into a collaborative development agreement with HemCon Medical Technologies Inc. (“HemCon”) for a sterile, single-use antibody capture device for the removal of isoagglutinin antibodies. The development agreement, which targets a $ 500 M US market opportunity includes:

 - funding of the development program by HemCon - both companies will jointly own all collaboration technology; - integration of ProMetic’s technology with HemCon’s Lyophilized Plasma System will result in a stable and universally applicable plasma product for emergency use by HemCon’s military and civilian customers that avoids the requirement to match plasma. 

Therapeutics

- During this past quarter, ProMetic has brought forward additional data demonstrating that PBI-1402 has a distinct mechanism of action than that of erythropoietin stimulating agents (“ESAs”), that its safety profile does not exacerbate tumor growth and that it does not raise hemoglobin to unsafe levels.

In addition, new data generated indicate that PBI-1402 could be efficacious in different conditions relating to chronic kidney diseases and furthermore, that it demonstrated nephroprotective properties.

The changing anemia market has provided new opportunities for PBI-1402. In order to capitalize on these opportunities ProMetic has retained the services of experienced advisors to augment the in-house business development initiates underway. In this respect, Sumitomo Corporation of America will advise on partnering for the Japanese market; Healthios and HealthPro BioVentures have been retained for the North American and European Markets.

Corporate

- At ProMetic’s Annual and Extraordinary Meeting of Shareholders (the “Meeting”), Mrs. Louise Menard, President of Groupe Mefor inc., Mr. Paul Mesburis, Senior Portfolio Manager, Excel Funds Management Inc., and Dr. Roger Perrault, Independent Director, were elected to ProMetic’s Board of Directors.

Re-elected Directors are Mr. G.F. Kym Anthony, Chair of DFG Investment Advisers, Dr. John Bienenstock, Professor of Medicine and Pathology at McMaster University, Mr. Robert Lacroix, Senior Vice-President of CTI Capital Securities, Mr. Pierre Laurin, President of ProMetic, Mr. Bruce Wendel, Executive Vice-President, Corporate Development of Abraxis BioScience Inc., and Mr. Benjamin Wygodny, President of Angus Partnership.

- The strengthening of ProMetic’s EBITDA position has allowed the Company to access new debt instruments, including a repayable grant from the Isle of Man Department of Trade and Industry.

Financials Results

The following information should be read in conjunction with the financial statements for the first quarter ending March 31, 2009, as well as the Management’s Discussion and Analysis for the same period.

Revenues for the first quarter of 2009 were at $3.8 M, $2.1 M higher than the same quarter in 2008. This increase is due to service fees associated with the development agreements with various licensees as well as significant sales of affinity adsorbents to major pharmaceutical companies from the subsidiary in the UK.

These revenues arising from the core technologies have allowed the Protein Technologies Unit to report a positive EBITDA of $0.5 M for the first quarter of 2009.

The operating loss decreased significantly during the first quarter of 2009 mainly due to the increased gross profit resulting from increased sales and the costs cutting measures initiated by ProMetic’s management team. Operating losses were at $1.6 M in the first quarter 2009 compared to $5.3 M in the same quarter in 2008, an improvement of $3.7 M.

Cash outflows from operating activities were $1.0 M for the first quarter of 2009 compared to $3.8 M for the same period in 2008. This decrease is mainly attributed to the increased revenues and costs reduction measures initiated by ProMetic’s management team.

ProMetic’s MD&A and 2009 First Quarter Financial Statements have been filed on Sedar (www.sedar.com) and are now available on the Company’s web site at www.prometic.com.

About ProMetic Life Sciences Inc.

ProMetic Life Sciences Inc. (“ProMetic”) (www.prometic.com) is a biopharmaceutical company specialized in the research, development, manufacture and marketing of a variety of commercial applications derived from its proprietary Mimetic Ligand™ technology. This technology is used in large-scale purification of biologics and the elimination of pathogens. ProMetic is also active in therapeutic drug development with the mission to bring to market effective, innovative, lower cost, less toxic products for the treatment of hematology and cancer. Its drug discovery platform is focused on replacing complex, expensive proteins with synthetic “drug-like” protein mimetics. Headquartered in Montreal (Canada), ProMetic has R&D facilities in the U.K., the U.S. and Canada, manufacturing facilities in the U.K. and business development activities in the US, Europe, Asia and in the Middle-East.

Forward Looking Statements

This press release contains forward-looking statements about ProMetic’s objectives, strategies and businesses that involve risks and uncertainties. These statements are “forward-looking” because they are based on our current expectations about the markets we operate in and on various estimates and assumptions. Actual events or results may differ materially from those anticipated in these forward-looking statements if known or unknown risks affect our business, or if our estimates or assumptions turn out to be inaccurate. Such risks and assumptions include, but are not limited to, ProMetic’s ability to develop, manufacture, and successfully commercialize value-added pharmaceutical products, the availability of funds and resources to pursue R&D projects, the successful and timely completion of clinical studies, the ability of ProMetic to take advantage of business opportunities in the pharmaceutical industry, uncertainties related to the regulatory process and general changes in economic conditions. You will find a more detailed assessment of the risks that could cause actual events or results to materially differ from our current expectations on page 25 of ProMetic’s Annual Information Form for the year ended December 31, 2008, under the heading “Risk and Uncertainties related to ProMetic’s business”. As a result, we cannot guarantee that any forward-looking statement will materialize. We assume no obligation to update any forward-looking statement even if new information becomes available, as a result of future events or for any other reason, unless required by applicable securities laws and regulations. All amounts are in Canadian dollars unless indicated otherwise.