• Senior Couple - Daughter
  • Senior Couple
  • Senior - Child
  • Doctor - Young People
  • Doctor - Child
Med BioGene Inc. Reports Financial Results for Fiscal Year 2005
May 18, 2006

VANCOUVER, BRITISH COLUMBIA - Med BioGene Inc. (TSX-V – MBI) (“MBI?) today reported its financial results for the year ending December 31, 2005.

2005 Financial Results

For the year ended December 31, 2005 the Company reported a net loss of $893,416 ($0.10 per share) compared to a net loss of $429,918 ($0.05 per share) for the year ended December 31, 2004.

Revenue

MBI had revenues of $33,742 for the year ended December 31, 2005 compared to $18,000 for the year ended December 31, 2004. The increase in revenues was primarily due to an increase in the delivery of microarray services to customers. This source of revenue is ancillary to MBI’s core business operations, being the advanced research and development of gene expression technology, and may not be generated in the future.

Research and Development

For the year ended December 31, 2005 research and development expenses were $401,176 compared to $222,634 for the year ended December 31, 2004. The increase was due primarily to increases in personnel and laboratory supplies expenses and was partially offset by a decrease in consulting fees and increases in government grants received and investment tax credits recorded. Overall, the increase in research and development expenditures resulted primarily from greater research and development activity related to the development of MBI’s Hematological Cancer Profiling System.

General and Administrative

For the year ended December 31, 2005, general and administrative expenses were $182,288 compared to $206,029 for the year ended December 31, 2004. The decrease was primarily due to a decrease in professional fees which were primarily recorded as transaction costs in 2005.

Transaction Costs

For the year ended December 31, 2005, transaction costs consist of professional and filing fees incurred to complete the amalgamation with Dragon-Tex and were $281,798. There were no such costs in 2004.

Liquidity and Capital Resources

Effective April 28, 2006, MBI completed a private placement for gross proceeds of approximately $2 million. Such proceeds is expected to satisfy MBI’s operating expenses and capital requirements required to meet MBI’s business objectives for at least twelve months. However, additional capital will be required to complete the development of MBI’s product candidates or to undertake a strategic acquisition. In such cases, MBI would review the different alternatives for obtaining additional funding from one or several sources such as granting licenses or disposing of certain non-core assets, cooperative research and development agreements, government grants, tax credits, the issuance of treasury shares if markets are favourable and other financial arrangements. MBI’s inability to obtain the necessary capital would adversely affect its ability to complete such projects or strategic acquisitions.

About Med BioGene

MBI is a biotechnology company with advanced research expertise in gene expression technology. MBI’s mission is to become a market leader in the supply of content for molecular-based diagnostic micro arrays. MBI intends to fulfill this mission by developing and marketing genetic content for molecular-based human diagnostic tests. Molecular diagnostics, based on genetic expression, is a developing technology field that has the potential to replace certain of today’s standard diagnostic tests. MBI intends to utilize its expertise in gene expression, bioinformatics and micro arrays to develop the diagnostic tests’ genetic content. From the tens of thousands of genes in the human genome, MBI is attempting to identify those genes, known as "bio markers," which mark the presence of various disease conditions.

MBI’s initial focus will be developing diagnostic tests for certain types of cancer, specifically, lymphoma and leukemia. In the future, MBI intends to develop diagnostic tests to identify the earliest stages of heart disease or the presence of an infectious disease. These diagnostic test kits will be designed to provide additional information to physicians to allow them to create more suitable and more effective treatments for an improved patient prognosis.

For further information, please contact:

Dr. Nathan Yoganathan
Chairman, President and Chief Scientific Officer
(604) 827-5100
nathan@medbiogene.com


The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Certain statements in this press release contain forward-looking information under applicable 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 information, although not all forward-looking information contains these identifying words. Forward looking information includes, but are not limited to, those 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 or information are only predictions 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 information. Forward-looking information is 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 this forward-looking information, which speaks only as of the date of this press release. Our forward-looking information does not reflect the potential impact of any future partnerships, collaborations, acquisitions, mergers, dispositions, joint ventures or investments MBI may make. All forward-looking information is qualified in its entirety by this cautionary statement and MBI undertakes no obligation to revise or update any forward-looking information as a result of new information, future events or otherwise after the date of this press release, other than as required by applicable law.


Home|About Us|Careers|News|Contact

© Copyright 2006 - Med BioGene Inc. - Legal Disclaimer