Biophage Pharma announces 2007 financial results


    MONTREAL, Nov. 14 /CNW Telbec/ - Biophage Pharma Inc. (TSX: BUG.V), a
high potential, revenue driven biotechnology company focused on the
development of an integrated approach for the prevention and control of
bacterial infections, announced today its financial results and review of
operating highlights for the year ended November 30, 2007.
    Biophage focuses on the development of products that address the large
infectious disease market with unmet needs. Biophage operates three different
divisions: (1) the biosensor division; (2) the therapeutic division, and; (3)
the service division (ImmunotoxLabs). Both the biosensor and the phage therapy
programs developed at Biophage are aimed at providing a safe and
environmentally friendly solution for the control of deadly microorganisms.

    In the Biosensor Division, our lead compound is the PDS(R) Biosensor. We
are also pursuing the development of the second generation of biosensors: The
BacTrapping(R) system, and the FastBac biosensor. The PDS(R) Biosensor allow
the detection of the total bacteria load in a sample as well as the rapid and
simultaneous screening of a large number of toxic compounds, metals and
nanoparticles and determines their relative level of toxicity. Our targeted
clients are government and regulatory agencies, research laboratories and
environmental investigators in the biopharmaceutical, agricultural, cosmetics
and probiotics fields.

    In the Therapeutic Division, Biophage is engaged in the development of an
environment-friendly system that utilizes naturally occurring phages in either
a liquid form or bound to plastic in order to reduce the incidence of
nosocomial infections. L'Hôpital du Sacré-Coeur de Montréal will play a key
role in this development. Nosocomial infections (infections acquired in
hospitals) are a major cause of health-care complications, with important
socio-economic impacts such as prolonged hospital stays, increased mortality
and morbidity and significant increases in health costs.

    In the ImmunotoxLabs division, Biophage hired Dr. Michel Heyne as
director of its Beryllium Reference Lab to meet the increasing demand for
Beryllium and MELISA(R) testing. In September 2007, Biophage obtained official
accreditation from the Quebec Ministry of Health and Social Services for its
Beryllium Reference Laboratory. In May 2008, the Corporation's Board of
directors approved the sale of all of the assets pertaining to the business of
ImmunotoxLabs to Validapro Biosciences Inc. for the sum of $400,000. This
transaction is a result of the Corporation's reorganization plan aiming at
reducing operating costs and focusing its R&D activities for the development
of the Biosensor and the therapeutic uses of the phages.SELECTED ANNUAL INFORMATION

    Statements of Operation
    -----------------------                           2007              2006
                                                         $                 $
    -------------------------------------------------------------------------
    Total Revenues                                 666,295           784,394
    Total expenses                               1,706,521         1,647,713
    -------------------------------------------------------------------------

    Weighted average number of common
     shares outstanding                         46,403,089        36,534,695
    Basic and diluted loss per share                 (0.02)            (0.02)

    Balance Sheets
    Total current assets                           659,428         1,016,561
    Total long term liability                            -                 -
    -------------------------------------------------------------------------
    Shareholder' equity                            150,735         5 4 0,402
    -------------------------------------------------------------------------
    Common shares outstanding                   47,279,370        42,948,912
    -------------------------------------------------------------------------

    Total revenues for the year ended November 30, 2007 amounted to $666,857
compared to $779,996 in fiscal 2006. Other income for fiscal 2007 reached
$4,438, compared with $4,398 in fiscal 2006. This decrease is mainly due to a
temporary slowing down of Beryllium tests. Costs of contracts for fiscal 2007
amounted to $447,815, relatively less than the $468,262 incurred for fiscal
2006. The slight decrease in the costs of contracts is mainly due to an
improvement in the management of contracts. Research and development costs for
fiscal 2007 (before tax credits) slightly decreased to $507,269, compared to
$526,028 recorded for fiscal 2006. Research and development tax credits
amounted to $168,983, which compares to $121,554 for fiscal 2006, representing
33 % and 23 % of related costs, respectively.
    During fiscal 2007, Biophage continued its efforts to streamline its
activities in order to manage burn rate, awaiting a general improvement in the
market for small-cap biotech companies. These steps protected both the
integrity of the Corporation and the long-term value for its shareholders.

    More detailed information regarding the foregoing can be found in the 
financial statements and the management discussion and analysis of those
financial statements which have been filed today on www.sedar.com.

    FORWARD-LOOKING STATEMENTS The information contained in this press release
contains statements regarding future financial and operating results. It also
contains forward-looking statements with regards to partnerships and
agreements and future opportunities based on these. There are also statements
related to the discovery and development of intellectual property as well as
other statements about future expectations, goals and plans. We have attempted
to identify these statements by use of words such as "expect", "believe",
"anticipate", "intend", and other words that denote future events. These
forward-looking statements are subject to material risks and uncertainties
that could cause actual results to differ materially from those in the
forward-looking statements. These risks and uncertainties include but are not
limited to the Corporation's ability to develop, and successfully manufacture
products, and to obtain contracts for its products and services and commercial
acceptance of its phage technology. Additional information on risk factors can
be found in the Corporation's Annual Information Form for the year ended
November 30, 2006. Shareholders are cautioned that these statements are
predictions and these actual events or results may differ materially from
those anticipated in these forward-looking statements. Any forward-looking
statements we may make as of the date hereof are based on assumptions that we
believe to be reasonable as of this date and we undertake no obligation to
update these statements as a result of future events or for any other reason,
unless required by applicable securities laws and regulations.
For further information: Rosemonde Mandeville, M.B., Ch.B., PhD.,
President and Chief Executive Officer, Biophage Pharma Inc, (514) 496-1488,
rosemonde.mandeville@biophagepharma.net