QUEBEC CITY, QUEBEC, May 27, 2011 /CNW/ - Medicago Inc. (TSX: 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 first quarter ended March 31, 2011. The Company's
financial statements and management report are available at www.sedar.com and at www.medicago.com.
"We recently achieved positive phase II interim results for our pandemic
H5N1 Influenza VLP vaccine candidate. We continue to advance our
clinical pipeline and look forward to reporting final phase II data for
our H5N1 vaccine candidate and our U.S. phase I clinical data for our
seasonal vaccine candidate this quarter," said Andy Sheldon, President
and CEO of Medicago. "In parallel, we are pursuing our strategy of
partnership with countries and pharmaceutical companies looking at
investing in faster and economical technologies for the production of
pandemic and seasonal flu vaccines and other non-influenza vaccines."
Selected to collaborate with the Infectious Disease Research Institute
(IDRI) on a multimillion-dollar grant awarded to IDRI by the U.S.
Department of Defense's Defense Advanced Research Projects Agency
(DARPA) for the proposed development of a single-dose H5N1 influenza
vaccine which could be rapidly and widely administered in the case of
an avian pandemic flu outbreak.
Reported positive phase II interim results for its clinical trial with
its H5N1 avian influenza vaccine. The vaccine was found to be safe,
well tolerated and also induced a solid immune response.
Received FDA clearance to initiate phase I clinical trial for its phase
I H1N1 influenza VLP vaccine candidate clinical trial in the United
States. The Company initiated this trial on March 21, 2011. This phase
I trial is expected to lead into Medicago's U.S. phase IIa trial for
its seasonal trivalent vaccine with the recommended H1N1, H3N2 and B
Received the second milestone payment of $3.8-million (U.S.) from DARPA.
This is part of the $21-million (U.S.) DARPA grant awarded to Medicago
to demonstrate the scalable manufacturing of its plant-expressed
virus-like particle vaccines in the United States under a technology
investment agreement. Medicago has received $10.7-million (U.S.) to
date for this project.
Subsequent to quarter end, Medicago closed an offering of 34,117,600
units (each, a "Unit") at a price of $0.51 per Unit, representing gross
proceeds of $17,399,976 (the "Offering"). Philip Morris Investments BV,
an insider of the Company, participated in the offering and acquired
In the first quarter of 2011, the Company reported positive interim
phase II results for its clinical trial with its H5N1 avian influenza
vaccine. The Company is proceeding with the second part of the phase II
trial with final results expected before the end of the second quarter.
Upcoming milestones include among others:
Phase II final results with its H5N1 vaccine
Initiation of U.S. phase I clinical trial with its H1N1 vaccine. Results
are expected in Q2 2011.
Operational U.S. vaccine facility
Initiation of U.S. phase II clinical trial with trivalent seasonal
vaccine if authorization granted by FDA
Potential contracts with governments and pharmaceutical companies
Addition of new pipeline candidates (vaccines, biosimlar enzymes)
The Company's unaudited interim consolidated financial statements as at
and for the three months ended March 31, 2011, represent the Company's
first filing in accordance with international financial reporting
standards ('IFRS'). Comparative unaudited consolidated financial
statements for 2010 have been adjusted to reflect the Company's
adoption of IFRS on a retrospective basis, effective on Jan. 1, 2010.
Consolidated loss for the three-month period ended March 31, 2011 was
$5,051,000 or $0.04 per basic and diluted share, compared to a loss of
$3,742,000 or $0.03 per basic and diluted share in the same period in
2010. Increase in the loss for the three month period is mainly
explained by the increase in R&D expenses in relation with the H5N1
Phase II clinical trial and the H1N1/seasonal vaccine Phase I clinical
trial that is underway.
Cash and short-term investments were $6.9 million as at March 31, 2011.
Subsequent to quarter end, Medicago closed an offering of 34,117,600
units at a price of $0.51 per Unit, representing gross proceeds of
As at May 26, 2011, there were 173,039,702 common shares issued and
outstanding as well as 8,710,263 stock options outstanding. Warrants
outstanding and Unit options outstanding as at May 26, 2011 represented
a total of 28,288,113 shares.
Voting Results of Annual Meeting of Shareholders
At the Annual Meeting of Shareholders held yesterday all matters put
before the shareholders were approved, namely approval of our new
by-laws and the modification of the stock option plan. The Board of
Directors will consist of Randal Chase, Andrew J. Sheldon, Pierre
Seccareccia, Jonathan Goodman, Pierre-Marc Johnson, Pierre Des Marais
II and Louis P. Vézina. For further details, please see the management
proxy circular available on www.sedar.com.
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 news release includes certain forward-looking statements that are
based upon current expectations, which involve risks and uncertainties
associated with Medicago's business and the environment in which the
business operates. Any statements contained herein that are not
statements of historical facts may be deemed to be forward-looking,
including those identified by the expressions "anticipate", "believe",
"plan", "estimate", "expect", "intend", and similar expressions to the
extent they relate to Medicago or its management. The forward-looking
statements are not historical facts, but reflect Medicago's current
expectations regarding future results or events. These forward-looking
statements are subject to a number of risks and uncertainties that
could cause actual results or events to differ materially from current
expectations, including the matters discussed under "Risks Factors and
Uncertainties" in Medicago's Annual Information Form filed on March 31,
2011 with the regulatory authorities. Medicago assumes no obligation to
update the forward-looking statements, or to update the reasons why
actual results could differ from those reflected in the forward-looking
SOURCE Medicago Inc.
For further information:
| Medicago Inc. || Medicago Inc. |
| Andy Sheldon || Christina Cameron |
| President and CEO || Investor Relations Manager |
| (418) 658-9393 || (418) 658-9393 x156 |