QUEBEC CITY, Aug. 26 /CNW/ - Medicago Inc. (TSX-V: MDG), a biotechnology
company focused on developing highly effective and affordable vaccines based
on proprietary manufacturing technologies and Virus-Like Particles, today
announced its operational and financial results for the second quarter ended
June 30, 2009. The Company's financial statements and management report are
available at www.sedar.com and at www.medicago.com.
"We achieved several important milestones over the past quarter. We
completed all preclinical work with our lead H5N1 pandemic flu vaccine
candidate and subsequent to the end of the quarter, we received clearance from
Health Canada to commence our first clinical trial. We anticipate data from
this trial towards the end of 2009," said Andy Sheldon, President and CEO of
Medicago. "We also obtained animal results demonstrating that our novel H1N1
vaccine candidate induced an immune response after a single dose. This vaccine
candidate was produced within 14 days of receiving the genetic sequence of the
new virus. We believe that this validates our technology and our ability to
rapidly produce highly effective vaccines."
"We made important progress with our international strategy after signing
an agreement with Genopole in France to build an influenza vaccine production
facility. With this agreement we have taken a step towards developing the
commercial potential of our unique plant-based vaccine technology to address
current deficiencies in traditional vaccine manufacturing technologies."
Medicago has received clearance from Health Canada to proceed into human
clinical trials with its lead H5N1 pandemic vaccine. Upcoming milestones
- Completion of a Phase I clinical trial for an H5N1 pandemic vaccine
- Continue development of H1N1 vaccine candidate
- Completion of an agreement with a second country for a pandemic
vaccine production facility
- Completion of an immunogenicity study in mice for a seasonal vaccine
Consolidated loss for the three-month period ended June 30, 2009 was
($2,794,000) or ($0.03) per basic and diluted share, compared to a loss of
($1,577,000) or ($0.05) per basic and diluted share in the same period in
2008. Consolidated loss for the six-month period ended June 30, 2009 was
($5,419,000) or ($0.06) per basic and diluted share, compared to a loss of
($1,902,000) or ($0.07) per basic and diluted share in the first six months of
There were no revenues in the second quarter and first six months of 2009
compared to $583,000 and $2,248,000 respectively in 2008. This decrease is due
to revenues generated by two agreements signed with Philip Morris
International ("PMI") in 2008.
Research and development ("R&D") expenses totaled $1,827,000 in the
second quarter of 2009 compared to $1,116,000 in the second quarter of 2008.
For the first six months of 2009, R&D expenses increased to $3,225,000
compared to $2,232,000 in the same period of 2008. R&D expenses were higher
mainly as a result of the Company's preclinical studies on its H5N1 VLP
vaccine, the hiring of new employees required for the completion of
preclinical work and development of a cGMP process for the production of
clinical materials for the upcoming Phase I trial.
Investment tax credits decreased by $184,000 for the three-month period
ended June 30, 2009, compared to the three-month period ended June 30, 2008.
For the six months ended June 30, 2009 investment tax credits decreased to
$273,000 compared to $691,000 in 2008. The decrease in tax credits for the
quarter and the six months resulted from a decrease in the provincial tax
credits rate from 37.5% to 17.5% applicable to the R&D activities of the
Company as a result of the private placement with PMI.
General and administrative ("G&A"), business development and intellectual
property ("IP") expenses totalled $856,000 for the three-month period ended
June 30, 2009, compared to $685,000 in the same period of 2008. For the first
six months of 2009, G&A, business development and IP expenses increased to
$1,748,000 compared to $1,330,000 in 2008.The increase was mainly due to an
increase in salaries, license and patent costs, and travelling expenses. The
increase in salaries is explained by the hiring of a CFO in May 2008 and the
hiring of a Director, Investor Relations and Communications in January 2009.
Other net financial expenses amounted to $176,000 and $421,000 for the
three-month and six month period ended June 30, 2009 respectively, compared to
$507,000 and $896,000 in the same periods in 2008. This decrease is mainly the
result of a lower interest rate on the Bio-levier loan and higher interest
income explained by the increase in cash, cash equivalents and short-term
investments and no expenses related to warrants issued as financing fees.
As at June 30, 2009, the Company had consolidated assets of $16.1
million, including cash, cash equivalents and short-term investments of $9.2
million, compared to consolidated assets of $20.6 million, including cash and
cash equivalents of $14.0 million as at December 31, 2008.
As at August 25, 2009, there were 95,124,640 common shares issued and
outstanding, 5,766,412 stock options outstanding and 56,133,496 warrants
outstanding. Between June 30 and August 25, 2009, 1,035,250 warrants at a
price of $0.25 and 3,625,450 warrants at a price of $0.30 were exercized, for
a total of $1,346,448.
Medicago is committed to provide highly effective and affordable vaccines
based on proprietary Virus-Like Particle (VLP) and manufacturing technologies.
Medicago is developing VLP vaccines to protect against H5N1 pandemic
influenza, using a transient expression system which produces recombinant
vaccine antigens in non-transgenic plants. This technology has potential to
offer advantages of speed and cost over competitive technologies. It could
deliver a vaccine for testing in about a month after the identification and
reception of genetic sequences from a pandemic strain. This production time
frame has the potential to allow vaccination of the population before the
first wave of a pandemic strikes and to supply large volumes of vaccine
antigens to the world market. Additional information about Medicago is
available at www.medicago.com.
Forward Looking Statements
This press release contains forward-looking statements which reflect
Medicago's current expectations regarding future events. The forward-looking
statements involve risks and uncertainties. Actual results could differ
materially from those projected herein. Medicago disclaims any obligation to
update these forward-looking statements.
The TSX Venture Exchange assumes no responsibility for the content or
accuracy of this press release
For further information:
For further information: Medicago, Inc., Andy Sheldon, President and
CEO, (418) 658-9393; Medicago, Inc., Arianna Vanin, Director, Investor
Relations, (514) 796-3993