BioMS Medical announces first quarter 2010 results

Toronto Stock Exchange Symbol: MS

EDMONTON, May 14 /CNW/ - BioMS Medical Corp. (TSX: MS), today announced financial and operational results for the three months ended March 31, 2010.

"Our new strategy is to transition BioMS into an investment and advisory service provider for the healthcare industry and pursuant to this strategy we completed our first strategic investment in Spectral Diagnostics," said Kevin Giese, President and CEO of BioMS Medical. "We continue to evaluate numerous opportunities that could benefit from access to our capital resources and expertise, and were pleased to announce the addition of Nitin Kaushal to our team to help accelerate these activities and ensure our transition is successful."

Highlights:

    
    -   Subsequent to the end of the quarter, on May 3, 2010, the Company
        announced a strategy to become a service provider to the healthcare
        industry whereby BioMS will directly invest in and advise companies
        on strategy, financing, mergers & acquisitions (M&A), licensing
        transactions and undertake technology development.
    -   The Company also announced it had hired Mr. Nitin Kaushal, a leading
        healthcare investment banker, to implement the Company's new
        strategy. Mr. Kaushal brings more than 25 years of financial and
        investment experience to BioMS and will serve as its Executive Vice
        President and Managing Director.
    -   BioMS announced it intends to change its name to Medwell Capital
        Corp. subject to approval by the Toronto Stock Exchange and
        shareholders at the annual general meeting to be held on June 25,
        2010.
    -   In the first quarter, the Company completed its first investment,
        acquiring 30,000,000 common shares of Spectral Diagnostics Inc.
        ("Spectral"), representing 39.57% of its issued and outstanding
        common shares, and concurrently acquiring 15,000,000 common shares
        purchase warrants of Spectral as well.
    -   As part of its new strategy, the Company entered into a three year
        services agreement with Spectral and will provide clinical,
        regulatory and capital markets consulting services in exchange for
        $3 million paid to BioMS over the term of the contract.
    -   On March 3, 2010, Spectral received Investigational Device Exemption
        (IDE) approval from the U.S. Food and Drug Administration (FDA) for
        Toraymyxin(TM), a treatment for severe sepsis. This approval permits
        Spectral to initiate its planned pivotal trial for Toraymyxin(TM) in
        the United States.
    -   Certain employees, officers and directors of BioMS Medical acquired
        7,245,000 BioMS shares out of 12,915,365 sold by the University of
        Alberta on April 30, 2010.
    

Financial Results

BioMS is reporting results from both continuing and discontinued operations. Continuing operations consist of activities related to its new strategy of transitioning BioMS into an investment and advisory service provider to the healthcare industry. BioMS' discontinued operations relate to the late stage clinical development program for dirucotide, a drug for the treatment of multiple sclerosis.

The consolidated net income from continuing operations for the three months ended March 31, 2010 was $6.5 million or $0.07 per share compared to a consolidated net loss from continuing operations of $3.8 million or $(0.04) per share for the same period in the previous year.

Revenue earned from the services agreement initiated with Spectral during the quarter amounted to $0.3 million for the three months ended March 31, 2010. Interest income earned on funds invested was $0.03 million for the three months ended March 31, 2010, compared to $0.2 million for the same period in the previous year, due to the decrease in cash and cash equivalents. Total consolidated expenses for the three months ended March 31, 2010 were $2.3 million compared to $4.0 million in the three months ended March 31, 2009.

The consolidated net loss from discontinued operations for the three months ended March 31, 2010 was $0.2 million or $(0.01) per share compared with a consolidated net income from discontinued operations of $2.4 million or $0.02 per share for the same period in the previous year. Upon the conclusion of the MAESTRO-01 clinical trial the Company discontinued the other dirucotide clinical trials, MAESTRO-02 and MAESTRO-03, and completed final collection of data and records.

At March 31, 2010, cash and cash equivalents and short-term investments totaled $34.7 million as compared to $51.4 million at December 31, 2009. At March 31, 2010, the Company had working capital of $33.7 million as compared to $47.5 million at December 31, 2009. Management estimates that the current working capital is sufficient for the Company to meet its obligations.

As at March 31, 2010 there were 91,008,923 Class "A" common shares of the Company issued and outstanding.

Notice of AGM:

The Company's annual general meeting is scheduled to be held at 10:00 am (MST) on June 25, 2010 at Delta Edmonton South Hotel and Conference Center.

    
    About BioMS Medical Corp.
    -------------------------
    

BioMS Medical is a biotechnology company engaged in the investment, development and commercialization of pharmaceutical technologies. For further information please visit our website at http://www.biomsmedical.com.

This press release may contain forward-looking statements, which reflect the Corporation's current expectation regarding future events. These forward-looking statements involve risks and uncertainties that may cause actual results, events or developments to be materially different from any future results, events or developments expressed or implied by such forward-looking statements. Such factors include, but are not limited to, changing market conditions, the successful and timely completion of clinical studies, the establishment of corporate alliances, the impact of competitive products and pricing, new product development, uncertainties related to the regulatory approval process and other risks detailed from time to time in the Corporation's ongoing quarterly and annual reporting. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

    
    BioMS Medical Corp.
    Interim Consolidated Balance Sheets
    (Unaudited)
    -------------------------------------------------------------------------

    (expressed in thousands of Canadian dollars)

                                                      March 31,  December 31,
                                                          2010          2009
                                                             $             $
                                                    (Unaudited)
    Assets

    Current assets
    Cash and cash equivalents                           32,010        48,774
    Short-term investments                               2,665         2,662
    Accounts receivable                                    250             -
    Goods and services tax recoverable                      36            37
    Other prepaid expenses                                  77            79
    Investments                                         20,560             -
    Assets of discontinued operation                         -           771
                                                    -----------   -----------

                                                        55,598        52,323

    Property and equipment                                 315           350
                                                    -----------   -----------

                                                        55,913        52,673
                                                    -----------   -----------
                                                    -----------   -----------

    Liabilities

    Current liabilities
    Accounts payable and accrued liabilities               345           358
    Liabilities of discontinued operation                1,000         4,464
                                                    -----------   -----------

                                                         1,345         4,822
                                                    -----------   -----------

    Share capital                                      175,714       175,714

    Contributed surplus                                 11,369        10,937

    Accumulated deficit                               (132,515)     (138,800)
                                                    -----------   -----------

                                                        54,568        47,851
                                                    -----------   -----------

                                                        55,913        52,673
                                                    -----------   -----------
                                                    -----------   -----------



    BioMS Medical Corp.
    Interim Consolidated Statements of Operations and Comprehensive Loss
    (Unaudited)
    -------------------------------------------------------------------------

    (expressed in thousands of Canadian dollars and shares, except per share
    amounts)

                                                          Three-month period
                                                              ended March 31,
                                                    -------------------------
                                                          2010          2009
                                                             $             $
    Revenue
    Unrealized gain on investments                       8,560             -
    Contract services                                      250             -
    Interest                                                32           170
                                                    -----------   -----------

                                                         8,842           170
                                                    -----------   -----------

    Expenses
    Operating, general and administrative                1,701         2,075
    Stock-based compensation                               432         1,845
    Amortization of property and equipment                  37            43
    Foreign exchange loss (gain)                           164           (16)
                                                    -----------   -----------

                                                         2,334         3,947
                                                    -----------   -----------

    Net income (loss) from continuing operations         6,508        (3,777)
    Net income (loss) from discontinued operation         (223)        2,378
                                                    -----------   -----------

    Net income (loss) and comprehensive income (loss)    6,285        (1,399)
                                                    -----------   -----------
                                                    -----------   -----------

    Basic and diluted net loss per common share -
     continuing operations                                0.07         (0.04)

    Basic and diluted net income (loss) per common
     share - discontinued operation                      (0.01)         0.02

    Basic and diluted net income (loss) per common
     share                                                0.07         (0.02)

    Basic and diluted weighted average number of
     common shares outstanding                      91,008,923    91,009,323



    BioMS Medical Corp
    Interim Consolidated Statements of Cash Flows
    (Unaudited)
    -------------------------------------------------------------------------

    (expressed in thousands of Canadian dollars)

                                                          Three-month period
                                                              ended March 31,
                                                    -------------------------
                                                          2010          2009
                                                             $             $
    Cash provided by (used in)

    Operating activities
    Net income (loss)                                    6,285        (1,399)
    Items not involving cash
      Unrealized gain on investments                    (8,560)            -
      Stock-based compensation                             432         1,845
      Amortization of property and equipment                37            43
                                                    -----------   -----------

                                                        (1,806)          489
    Net change in non-cash working capital items          (439)         (218)
                                                    -----------   -----------

                                                        (2,245)          271
                                                    -----------   -----------
    Investing activities
      Net purchase of investments                      (12,000)            -
    Net purchase of short-term investments                  (3)          (19)
    Purchase of property and equipment                      (2)           (1)

                                                       (12,005)          (20)
                                                    -----------   -----------

    Financing activities
      Proceeds from issuance of share capital                -             -
    Repurchase of share capital                              -             -
                                                    -----------   -----------

                                                             -             -
                                                    -----------   -----------

    Foreign exchange (loss) gain on cash and cash
     equivalents held in foreign currency                  180           169
                                                    -----------   -----------

    Cash (used in) provided by continuing operations   (14,070)          420
                                                    -----------   -----------

    Cash used in discontinued operation                 (2,694)      (12,517)
                                                    -----------   -----------

    Decrease in cash and cash equivalents              (16,764)      (12,097)

    Cash and cash equivalents - Beginning of period     48,774        87,826
                                                    -----------   -----------

    Cash and cash equivalents - End of period           32,010        75,729
                                                    -----------   -----------
                                                    -----------   -----------

    Cash and cash equivalents consists of
     Bank accounts                                         806           846
    Interest bearing deposits and securities            31,204        74,883
                                                    -----------   -----------
                                                        32,010        75,729
                                                    -----------   -----------
                                                    -----------   -----------
    

SOURCE Medwell Capital Corp.

For further information: For further information: Tony Hesby, Ryan Giese, BioMS Medical Corp., (780) 413-7152, (780) 408-3040 Fax, E-mail: info@biomsmedical.com, Internet: http://www.biomsmedical.com; James Smith, Investor Relations, (416) 815-0700 ext. 229, (416) 815-0080 Fax, E-mail: jsmith@equicomgroup.com

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Medwell Capital Corp.

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