Biomira reports Full year and Fourth Quarter 2006 Financial Results



    EDMONTON, March 8 /CNW/ - Biomira Inc. (Nasdaq:   BIOM) (TSX: BRA) today
reported financial results for the year and quarter ended December 31, 2006.
All results are in Canadian dollars.
    Net loss for the year ended December 31, 2006, was $17.8 million or
$0.19 per basic and diluted share, compared with $19.0 million, or $0.24 per
basic and diluted share in 2005. The decrease in net loss resulted from
decreased clinical expenditures as a result of transferring the development
program for Stimuvax(R) to Merck KGaA of Darmstadt Germany ("Merck") effective
March 1, 2006, partly offset by increased general and administrative expenses
related to changes in accounting for stock-based compensation and charges due
to reduction in workforce. Revenue from operations for the year ended
December 31, 2006 was $4.5 million, compared with $4.4 million in the prior
year.
    Expenses for the year ended December 31, 2006, were $24.1 million,
compared with $24.5 million for the prior year. Research and development
expenses decreased from $16.9 million in 2005 to $13.8 million in 2006,
primarily as a result of reduced clinical expenditures with the transfer of
responsibility for the clinical development of Stimuvax to Merck. This was
offset by an increase in G&A expenses from $6.3 million in 2005 to
$8.7 million in 2006. This increase was primarily attributable to changes in
the expensing of stock options with the adoption of a new accounting policy in
2006, a non-cash expense, and with costs related to workforce reductions and
employee exiting.
    Net loss for the quarter ended December 31, 2006 was $4.3 million or
$0.04 per basic and diluted share, compared with $4.4 million or $0.05 per
basic and diluted share for the comparable period in 2005. Revenue from
operations was $1.3 million, compared with $1.1 million for the comparable
period in 2005. Expenses for the quarter were $6.7 million, compared with
$6.0 million for the comparable period in 2005.
    As of December 31, 2006, Biomira's cash, cash equivalents and short term
investments were $33.0 million, compared to $21.4 million at the end of 2005,
an increase of $11.6 million, or 54%. Major contributors to the net change
included $31.9 million in net financing proceeds, offset by $15.6 million used
in operations and $4.3 million used in the acquisition of ProlX
Pharmaceuticals Corporation ("ProlX").

    Financial Guidance

    Biomira believes the following financial guidance to be correct as of the
date provided. We are providing this guidance as a convenience to investors,
and we assume no obligation to update it.

    For 2007, we expect our research and development expenses to increase
significantly, primarily as a result of increased manufacturing and process
development activities for Stimuvax for the Phase 3 trial being conducted by
Merck, and of increased development activity for the small molecules drugs we
acquired with the acquisition of ProlX. We expect these expenses to be offset
by increased funding from Merck, which is required to purchase Stimuvax from
Biomira, by milestone payments we anticipate receiving from Merck, one for the
enrollment of the first patient in the Phase 3 trial and another for the
signing of the final amended collaboration and supply agreements, and by grant
funding available to our ProlX subsidiary. The net result is that we
anticipate that our cash used in operations for 2007 will be between
$14 million and $16 million dollars. As a result, we believe that Biomira
currently has sufficient cash resources to last into the second half of 2008.

    Business Update

    
    Key Achievements in 2006 included:
    -   Completing a Special Protocol Agreement (SPA) with the U.S. Food and
        Drug Administration related to the Phase 3 trial of Stimuvax in
        patients with non-small cell lung cancer. The SPA concerns the design
        of the Phase 3 trial and outlines definitive clinical objectives and
        data analyses considered necessary to support regulatory approval of
        Stimuvax.
    -   Transferring the U.S. IND for Stimuvax to Merck, which enabled Merck
        to initiate the Phase 3 trial.
    -   Appointing Robert L. Kirkman M.D. as President and Chief Executive
        Officer and D. Lynn Kirkpatrick, Ph.D. as Chief Scientific Officer.
    -   Acquiring ProlX Pharmaceuticals Corporation. The acquisition brought
        in a portfolio of small molecule compounds with significant potential
        in the treatment of various cancers. Diversification of Biomira's
        pipeline through the acquisition is expected to increase the
        Company's opportunities for clinical and commercial success.
    -   Raising $31.9 million in net financing proceeds. These financial
        resources are expected to support aggressive advancement of multiple
        product development programs.

    Key Achievements to date in 2007 include:
    -   Initiation of the Phase 3 trial of Stimuvax in patients with non-
        small cell lung cancer by Merck. Enrollment of the first patient in
        this trial, which occurred in February 2007, triggered a milestone
        payment to Biomira of U.S. $2.5 million, before associated payments
        to third parties of approximately U.S. $0.5 million. In addition,
        Biomira has the responsibility for the manufacture of Stimuvax and
        has been successfully manufacturing for the Phase 3 trial.
    -   Initiation of the Phase 2 trial of the thioredoxin inhibitor PX-12 in
        patients with advanced pancreatic cancer resistant to gemcitabine or
        a gemcitabine-containing regimen.
    

    Conference Call and Webcast
    Biomira's management will discuss the Company's fourth quarter and full
year 2006 financial results as well as general business updates during a
conference call beginning at 1:30 p.m. PT/ 4:30 p.m. ET today, Thursday,
March 8, 2007. To listen to a webcast of the discussion, visit
www.Biomira.com.

    About Biomira
    Biomira is a biotechnology company specializing in the development of
innovative therapeutic products for the treatment of cancer. Biomira's goal is
to develop and commercialize novel synthetic vaccines and targeted small
molecules that have the potential to improve the lives and outcomes of cancer
patients.

    Forward-Looking Statements
    In order to provide our investors with an understanding of our current
results and future prospects, this release may contain statements that are
forward looking. Any statements contained in this press release that are not
statements of historical fact may be deemed to be forward-looking statements.
Words such as "believes," "anticipates," "plans," "expects," "will,"
"intends," "potential," "possible" and similar expressions are intended to
identify forward-looking statements. These forward-looking statements
represent Biomira's intentions, plans, expectations and beliefs with respect
to research and development expenses, the use and adequacy of cash resources,
the successful integration of ProlX, the timing, duration and results of
clinical trials, the timing and results of regulatory reviews, the safety and
efficacy of our products, the possibility of future payments from Merck and
the availability of grant funding for our ProlX subsidiary and are based on
our experience and our assessment of historical and future trends and the
application of key assumptions relating to future events and circumstances.
    Forward-looking statements involve risks and uncertainties related to our
business and the general economic environment, many beyond our control. These
risks, uncertainties and other factors could cause our actual results to
differ materially from those projected in forward-looking statements,
including the risks associated with the adequacy of financing and reserves on
hand; currency exchange rate fluctuations; changes in general accounting
policies, general economic factors, achievement of the results we anticipate
from our clinical trials with our products and our ability to adequately
obtain and protect our intellectual property rights. Although we believe that
the forward-looking statements contained herein are reasonable, we can give no
assurance that our expectations are correct. All forward-looking statements
are expressly qualified in their entirety by this cautionary statement. For a
detailed description of our risks and uncertainties, you are encouraged to
review the official corporate documents filed with the securities regulators
in Canada on SEDAR and the United States on U.S. EDGAR. Biomira does not
undertake any obligation to publicly update its forward-looking statements
based on events or circumstances after the date hereof.

    Additional Information
    Additional information relating to Biomira, including a copy of our
Annual Information Form and Proxy Circular filed annually at the end of March,
can be found on SEDAR at www.sedar.com and U.S. EDGAR at www.sec.gov.



    
                                 Biomira Inc.
                    Consolidated Statements of Operations
                    (in thousands, except per share data)
                                 (unaudited)

    -------------------------------------------------------------------------
                                Three Months Ended            Year Ended
                                    December 31               December 31
    -------------------------------------------------------------------------
                                 2006         2005         2006         2005
    -------------------------------------------------------------------------
    REVENUE
      Contract research
       and development       $  1,170      $   977     $  4,172     $  3,842
      Licensing revenue from
       collaborative
       agreements                  50           52          207          207
      Licensing, royalties,
       and other revenue           43           86          135          328
    -------------------------------------------------------------------------
                                1,263        1,115        4,514        4,377
    -------------------------------------------------------------------------
    EXPENSES
      Research and
       development              3,287        4,455       13,838       16,907
      General and
       administrative           2,615        1,441        8,661        6,295
      Marketing and business
       development                153           12          666          965
      Amortization                602          106          897          376
    -------------------------------------------------------------------------
                                6,657        6,014       24,062       24,543
    -------------------------------------------------------------------------
    OPERATING LOSS             (5,394)      (4,899)     (19,548)     (20,166)
      Investment and
       other income               424          226        1,039          795
      Interest expense             (2)          (1)         (11)          (2)
    -------------------------------------------------------------------------
    LOSS BEFORE INCOME
     TAXES                     (4,972)      (4,674)     (18,520)     (19,373)
    -------------------------------------------------------------------------
    INCOME TAX RECOVERY:
      Current                     524          286          524          348
      Future                      174            -          174            -
    -------------------------------------------------------------------------
                                  698          286          698          348
    -------------------------------------------------------------------------
    NET LOSS                  $(4,274)     $(4,388)    $(17,822)    $(19,025)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    BASIC AND DILUTED LOSS
     PER SHARE                 $(0.04)      $(0.05)      $(0.19)      $(0.24)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    WEIGHTED AVERAGE
     NUMBER OF COMMON
     SHARES OUTSTANDING       102,800       78,660       91,900       78,660
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


                                 Biomira Inc.
                       Consolidated Balance Sheets Data
                               (in thousands)
                                 (unaudited)

    -------------------------------------------------------------------------
                                                    December 31, December 31,
                                                           2006         2005
    -------------------------------------------------------------------------
    Cash position                                       $33,037      $21,415
    -------------------------------------------------------------------------
    Total assets                                        $79,099      $24,263
    -------------------------------------------------------------------------
    Total long-term liabilities                         $13,378       $1,147
    -------------------------------------------------------------------------
    Shareholders' equity                                $61,417      $20,063
    -------------------------------------------------------------------------
    Common shares outstanding                           116,915       78,817
    -------------------------------------------------------------------------
    





For further information:

For further information: Investor and Media Relations Contact: Stephanie
Seiler, Ph.D., Gemini BioProjects LLC, (206) 713-0124, ir@biomira.com

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