YM BIOSCIENCES REPORTS FIRST QUARTER 2008 OPERATIONAL AND FINANCIAL RESULTS



    MISSISSAUGA, ON, Nov. 12 /CNW/ - YM BioSciences Inc. (AMEX:  YMI, TSX:YM,
AIM:YMBA), an oncology company that identifies, develops and commercializes
differentiated products for patients worldwide, today reported operational and
financial results for the first quarter of fiscal 2008, ended September 30,
2007.
    "We launched into our 2008 fiscal year by further increasing the level of
clinical activity for our lead drug, nimotuzumab," said David Allan, Chairman
and CEO of YM BioSciences. "In July 2007, we initiated patient enrollment for
our colorectal cancer trial - the first trial using nimotuzumab with
chemotherapy in a bulky tumor. Data from this trial could provide important
evidence supporting the observations to date that nimotuzumab can deliver
efficacy without the debilitating side effects common to other EGFR-targeting
drugs. In August 2007, YM-USA received clearance from the FDA to initiate a
44-patient clinical trial in children with diffuse, intrinsic pontine glioma
(DIPG), an inoperable progressive brain cancer."
    "More recently our licensee in Europe, Oncoscience AG, recruited its
first patients into a randomized Phase III trial in first line adult
glioblastoma grade IV and a Phase IIb/IIIa randomized, placebo controlled
trial in patients with advanced pancreatic cancer for which YM has received
clearance to extend into Canada. Moreover, Daiichi-Sankyo, our licensee in
Japan, has advised us that it has completed its preliminary trials with
nimotuzumab, permitting it to advance into more advanced trials in 2008,"
added Mr. Allan. "We also continued to progress the development of AeroLEF(TM)
and the FDA have scheduled an end-of-Phase II meeting to discuss the Phase III
trial design. The first US trial for AeroLEF(TM) has been cleared to proceed
by the FDA and is pending clearance with the relevant Investigator Review
Boards."

    Nimotuzumab:

    Nimotuzumab, a humanized monoclonal antibody that targets the epidermal
growth factor receptor (EGFR), is currently in varying stages of development
in a number of trials, including colorectal cancer, adult and pediatric
glioma, non-small-cell lung cancer and pancreatic cancer. During the first
quarter of fiscal 2008:

    
    -   YM initiated enrollment for a Phase II colorectal cancer trial in
        Canada. As of today, 30 patients have been enrolled in the first 50-
        patient cohort, with recruitment of this cohort expected to be
        completed by the end of calendar 2007 and data from this cohort are
        expected to be reported in early calendar 2008. The endpoints of the
        trial include Objective Response Rate (ORR), Progression Free
        Survival (PFS), Overall Survival (OS) and the rates and durations of
        Stable Disease (SD), as well as safety.
    -   YM USA was cleared by the US FDA to expand its second-line clinical
        trial in children with DIPG into the US.
    -   YM reported positive preliminary results of a Phase I/II trial of
        nimotuzumab in combination with radiation for the treatment of non-
        small-cell lung cancer (NSCLC).
    -   Oncoscience AG reported completion of patient enrollment in the
        Phase III, first-line, pediatric DIPG trial.
    -   Oncoscience AG reported initiation of late-stage trials designed to
        be supportive of registration in adult glioma and pancreatic cancer.
    -   Subsequent to the end of the quarter:
    -   YM received clearance from Health Canada to extend into Canada the
        188-patient multi-centre randomized, placebo controlled
        Phase IIb/IIIa study in chemotherapy-naive patients with locally
        advanced or metastatic pancreatic cancer initiated by Oncoscience.
    -   Daiichi-Sankyo Co., Ltd. advised YM that it had completed enrollment
        in a nimotuzumab safety trial. There were no limiting toxicities.

    AeroLEF(TM):

    AeroLEF(TM) is a proprietary, inhaled-delivery composition of free and
liposome-encapsulated fentanyl in development for the treatment of moderate to
severe pain, including cancer pain. AeroLEF(TM) uniquely permits patients to
identify and select the appropriate dose in real-time for each pain episode to
achieve both rapid onset and extended duration of analgesia. During the first
quarter of fiscal 2008:

    -   YM announced the clearance by the FDA for the first IND in the US for
        AeroLEF(TM).
    -   A request to the FDA for an End-of-Phase II meeting prior to calendar
        year-end 2007 to discuss Phase III trial designs was submitted. YM
        has been notified by the FDA that this meeting has been scheduled.
    -   YM received clearance from the FDA to initiate a Phase II trial in
        the US in opioid-tolerant or opioid-naive patients. This trial is not
        rate-limiting to the Phase III timeline but a successful trial would
        further extend the utility and medical breadth of the product if and
        when approved. Enrollment in the 50-patient trial is expected to
        start in calendar Q4, 2007.
    

    Financial Results (CDN dollars)

    Total revenue for the first quarter of fiscal 2008, ended September 30,
2007 was $1.8 million compared with $1.8 million for the first quarter of
fiscal 2007, ended September 30, 2006. Revenue from out-licensing was
$1.1 million for first quarter of fiscal 2008 compared with $0.9 million for
the first quarter of fiscal 2007. Interest income for the first quarter of
fiscal 2008 was $0.7 million compared with $0.9 million for the first quarter
of fiscal 2007.
    Total operating expenditures for the first quarter of fiscal 2008 were
$5.6 million compared to $9.7 million for the first quarter of fiscal 2007.
General and administrative expenses were $2.0 million for the first quarter of
fiscal 2008 compared with $1.9 million for the first quarter of fiscal 2007.
Licensing and product development expenses decreased to $3.5 million for the
first quarter of fiscal 2008 compared to $7.9 million for the first quarter of
fiscal 2007. The change is mainly the result of reduced development activity
for tesmilifene, for which a Phase III trial was terminated in January 2007,
and reduced clinical development costs for nimotuzumab and AeroLEF(TM), for
both of which certain trials have finished and others are just starting up.
    Net loss for the first quarter of fiscal 2008 was $3.6 million ($0.06 per
share) compared to $9.7 million ($0.17 per share) for the same period last
year.
    As at September 30, 2007 the Company had cash and cash equivalents and
short-term deposits totaling $71.1 million and payables and accrued
liabilities totaling $2.2 million compared to $75.6 million and $3.3 million
respectively at June 30, 2007.
    As at September 30, 2007 the Company had 58,216,309 common shares
outstanding, of which 2,380,953 common shares are held in escrow for
contingent additional payment related to the acquisition of Delex Therapeutics
Inc., 5,799,765 warrants, and 6,155,662 options.

    AGM Announcement

    YM BioSciences' Annual Meeting of Shareholders will be held on
November 28th, 2007 at 4:00 p.m. at the Gallery of the TSX Broadcast &
Conference Centre, The Exchange Tower, 130 King Street West, Toronto, Ontario.

    About YM BioSciences

    YM BioSciences Inc. is an oncology company that identifies, develops and
commercializes differentiated products for patients worldwide. The Company has
two late-stage products: nimotuzumab, a humanized monoclonal antibody that
targets the epidermal growth factor receptor (EGFR) and is approved in several
countries for treatment of various types of head and neck cancer; and
AeroLEF(TM), a proprietary, inhaled-delivery composition of free and
liposome-encapsulated fentanyl in development for the treatment of moderate to
severe pain, including cancer pain.

    This press release may contain forward-looking statements, which reflect
the Company'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
Company's ongoing quarterly and annual reporting. Certain of the assumptions
made in preparing forward-looking statements include but are not limited to
the following: that nimotuzumab will continue to demonstrate a competitive
safety profile in ongoing and future clinical trials; that AeroLEF(TM) will
continue to generate positive efficacy and safety data in future clinical
trials; and that YM and its various partners will complete their respective
clinical trials within the timelines communicated in this release. We
undertake no obligation to publicly update or revise any forward-looking
statements, whether as a result of new information, future events or
otherwise.

    Summary financial statements attached:

    
    YM BIOSCIENCES INC.
    (A DEVELOPMENT STAGE COMPANY)

    Interim Consolidated Balance Sheets
    (Expressed in Canadian dollars)

    -------------------------------------------------------------------------
                                                 September 30,       June 30,
                                                         2007           2007
    -------------------------------------------------------------------------
                                                   (Unaudited)

    Assets

    Current assets:
      Cash and cash equivalents                 $  20,615,398  $   5,847,351
      Short-term deposits                          50,500,118     69,724,438
      Accounts receivable                             419,152        370,011
      Prepaid expenses                                280,877        347,010
      -----------------------------------------------------------------------
                                                   71,815,545     76,288,810

    Capital assets                                    290,893        325,040

    Intangible assets                               4,860,815      5,125,950

    -------------------------------------------------------------------------
                                                $  76,967,253  $  81,739,800
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Liabilities and Shareholders' Equity

    Current liabilities:
      Accounts payable                          $   1,009,731  $   1,169,211
      Accrued liabilities                           1,195,302      2,103,755
      Deferred revenue                              4,623,340      4,702,132
      -----------------------------------------------------------------------
                                                    6,828,373      7,975,098

    Deferred revenue                                7,881,759      8,929,900

    Shareholders' equity:
      Share capital                               172,921,153    172,921,153
      Share purchase warrants                       4,553,308      4,553,308
      Contributed surplus                           6,703,710      5,657,082
      Deficit accumulated during the
       development stage                         (121,921,050)  (118,296,741)
      -----------------------------------------------------------------------
                                                   62,257,121     64,834,802

    Basis of presentation
    Commitments

    -------------------------------------------------------------------------
                                                $  76,967,253   $ 81,739,800
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



    YM BIOSCIENCES INC.
    (A DEVELOPMENT STAGE COMPANY)

    Interim Consolidated Statements of Operations and Comprehensive Income
    (Expressed in Canadian dollars)

    -------------------------------------------------------------------------
                                                                 Period from
                                                                inception on
                                                                   August 17,
                                          Three months ended         1994 to
                                             September 30,      September 30,
                                          2007           2006           2007
    -------------------------------------------------------------------------
                                              (Unaudited)         (Unaudited)

    Revenue                      $   1,126,933  $     860,698  $   7,433,978
    Interest income                    690,392        894,712      8,819,781
    -------------------------------------------------------------------------
                                     1,817,325      1,755,410     16,253,759

    Expenses:
      General and administrative     2,034,010      1,880,889     38,120,545
      Licensing and product
       development                   3,544,859      7,864,866     94,341,242
      Impairment                             -              -      1,829,538
      -----------------------------------------------------------------------
                                     5,578,869      9,745,755    134,291,325
    -------------------------------------------------------------------------

    Loss before the undernoted      (3,761,544)    (7,990,345)  (118,037,566)

    Gain (loss) on foreign
     exchange                           43,905        (85,817)      (319,277)

    Gain on short-term deposits         93,330              -         93,330

    Loss on marketable securities            -              -     (1,191,329)
    -------------------------------------------------------------------------

    Loss before income taxes        (3,624,309)    (8,076,162)  (119,454,842)

    Income taxes                             -      1,622,695      1,676,075

    -------------------------------------------------------------------------
    Loss and comprehensive loss
     for the period              $  (3,624,309) $  (9,698,857) $(121,130,917)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Basic and diluted loss per
     common share                $       (0.06) $       (0.17)

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

    Weighted average number of
     common shares outstanding,
     excluding 2,380,953 common
     shares held in escrow for
     contingent additional
     payment related to the
     Delex acquisition              55,835,356     55,781,996

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



    YM BIOSCIENCES INC.
    (A DEVELOPMENT STAGE COMPANY)

    Interim Consolidated Statements of Deficit Accumulated During the
     Development Stage
    (Expressed in Canadian dollars)

    -------------------------------------------------------------------------
                                                                 Period from
                                                                inception on
                                                                   August 17,
                                          Three months ended         1994 to
                                             September 30,      September 30,
                                          2007           2006           2007
    -------------------------------------------------------------------------
                                              (Unaudited)         (Unaudited)

    Deficit, beginning of period $(118,296,741) $ (86,566,501) $           -

    Cost of purchasing shares for
     cancellation in excess of
     book value                              -              -       (790,133)

    Loss for the period             (3,624,309)    (9,698,857)  (121,130,917)

    -------------------------------------------------------------------------
    Deficit, end of period       $(121,921,050) $ (96,265,358) $(121,921,050)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



    YM BIOSCIENCES INC.
    (A DEVELOPMENT STAGE COMPANY)

    Interim Consolidated Statements of Cash Flows
    (Expressed in Canadian dollars)

    -------------------------------------------------------------------------
                                                                 Period from
                                                                inception on
                                                                   August 17,
                                          Three months ended         1994 to
                                             September 30,      September 30,
                                          2007           2006           2007
    -------------------------------------------------------------------------
                                              (Unaudited)         (Unaudited)

    Cash provided by (used in):

    Operating activities:
      Loss for the period        $  (3,624,309) $  (9,698,857) $(121,130,917)
      Items not involving cash:
        Amortization of capital
         assets                         34,147         25,348        472,936
        Amortization of intangible
         assets                        265,135        633,051      3,585,093
        Impairment of intangible
         asset                               -              -      1,829,538
        Loss on marketable
         securities                          -              -      1,191,329
        Unrealized gain on
         financial instruments         (70,377)             -        (70,377)
        Stock-based employee
         compensation                1,046,628        519,214      7,200,104
        Stock-based consideration            -              -        292,750
        Warrants-based
         consideration                       -              -         54,775
      Change in non-cash operating
       working capital:
        Accounts receivable and
         prepaid expenses               16,992        868,254        328,693
        Accounts payable, accrued
         liabilities and deferred
         revenue                    (2,194,866)    13,243,503     11,468,488
      -----------------------------------------------------------------------
                                    (4,526,650)     5,590,513    (94,777,588)

    Financing activities:
      Issuance of common shares on
       exercise of warrants                  -          1,875      4,371,555
      Repayment of debenture                 -              -     (1,469,425)
      Net proceeds from issuance
       of shares and warrants                -              -    123,276,729
      Issuance of common shares on
       exercise of options                   -              -      2,516,246
      Redemption of preferred
       shares                                -              -     (2,630,372)
      Purchase of shares for
       cancellation                          -              -     (1,029,679)
      -----------------------------------------------------------------------
                                             -          1,875    125,035,054

    Investing activities:
      Purchase of short-term
       deposits, net                19,294,697     33,959,585    (50,235,816)
      Proceeds on sale of
       marketable securities                 -              -      1,404,450
      Additions to capital and
       intangible assets                     -         (1,630)      (577,315)
      -----------------------------------------------------------------------
                                    19,294,697     33,957,955    (49,408,681)
    -------------------------------------------------------------------------

    Increase (decrease) in cash
     and cash equivalents           14,768,047     39,550,343    (19,151,215)

    Net cash assumed on
     acquisition                             -              -     39,766,613

    Cash and cash equivalents,
     beginning of period             5,847,351      2,735,317              -
    -------------------------------------------------------------------------
    Cash and cash equivalents,
     end of period               $  20,615,398  $  42,285,660  $  20,615,398
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Supplemental cash flow
     information:
      Non-cash items:
        Issuance of shares from
         escrow on Delex
         acquisition             $           -  $           -  $  11,326,981
        Issuance of common shares
         on Eximias acquisition              -              -     35,063,171
        Issuance of common shares
         in exchange for licensed
         patents                             -              -        100,000
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    %SEDAR: 00004652E




For further information:

For further information: Thomas Fechtner, the Trout Group LLC, Tel.
(646) 378-2931, Email: tfechtner@troutgroup.com; James Smith, the Equicom
Group Inc., Tel. (416) 815-0700 x 229, Email: jsmith@equicomgroup.com;
Nominated Adviser, Canaccord Adams Limited, Ryan Gaffney, Tel. +44 (0)20 7050
6500


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