Cangene consolidating R&D operations

    Listed TSX, Symbol: CNJ

    TORONTO and WINNIPEG, Oct. 2 /CNW/ - Cangene Corporation today reports
that it is consolidating all research and development activities within the
Winnipeg head office location. The Company has instituted a number of
strategic changes in its R&D processes over the past several months to
formalize and enhance new product development; having a consolidated group
will help to strengthen the links between research, product development and
manufacturing activities, and increase operational effectiveness.
    In addition, a significant portion of the activities in Cangene's
Mississauga R&D operation were related to a contract research project with the
Apotex Group that is now concluded and to two products (Accretropin(TM) and
Leucotropin(R)) that have been submitted for licensure. On-going
responsibility for any additional development of these two products will be
transferred to the Winnipeg group. The Apotex project that has been concluded
contributed a gross profit of $3.2 million to Cangene in fiscal 2006 and the
Company expects a similar amount will be recorded for fiscal 2007.
    The re-organization results in a reduction in staff of approximately 4%
and an expected net operating savings of approximately $1.5 million annually.
Non-R&D functions in Mississauga are unaffected by the consolidation.

    About Cangene Corporation

    Cangene is one of Canada's largest and earliest biopharmaceutical
companies. It was founded in 1984 and is headquartered in Winnipeg, Manitoba.
It uses patented manufacturing processes to produce plasma-derived and
recombinant therapeutic proteins. Cangene has three FDA and Health
Canada-approved products and a fourth that has been approved in Canada only.
One of its recombinant protein products has received an approvable letter from
the FDA and another has been submitted for regulatory review in Canada. In
addition, the Company has several more products in development at various
stages. Three of Cangene's products have been accepted into the U.S. Strategic
National Stockpile - botulism antitoxin, anthrax immune globulin and vaccinia
immune globulin, a product used to counteract certain complications arising
from smallpox vaccination.
    Capitalizing on its drug manufacturing expertise, Cangene also operates a
significant contract research and manufacturing business using its Winnipeg
facilities and the resources of Baltimore, Maryland-based Chesapeake
Biological Laboratories, Inc. (a wholly owned subsidiary). An expansion in
2006 at the Winnipeg location increased the Company's capacity to fractionate
plasma to accommodate the growing manufacturing requirements. Cangene's
website,, includes product and investor information, including
past news releases. Chesapeake's website is

    Forward-looking information

    The reader should be aware that Cangene's businesses are subject to risks
and uncertainties that cannot be predicted or quantified; consequently, actual
results may differ materially from past results and those expressed or implied
by any forward-looking statements. Factors that could cause or contribute to
such risks or uncertainties include, but are not limited to: the regulatory
environment including the difficulty of predicting regulatory outcomes;
changes in the value of the Canadian dollar; the Company's reliance on a small
number of customers including government organizations; the demand for new
products and the impact of competitive products, service and pricing;
availability and cost of raw materials, especially the cost, availability and
antibody concentration in plasma; fluctuations in operating results;
government policies or actions; progress and cost of clinical trials; reliance
on key strategic relationships; costs and possible development delays
resulting from use of legal, regulatory or legislative strategies by the
Company's competitors; uncertainty related to intellectual property protection
and potential cost associated with its defence; the Company's exposure to
lawsuits, and other matters beyond control of management.
    Risks and uncertainties are discussed more extensively in the MD&A
section of the Company's most recent annual report and annual information
form, which are available on the Company's website or on SEDAR at Scientific information that relates to unapproved products or
unapproved uses of products is preliminary and investigative. No conclusions
can or should be drawn regarding the safety or efficacy of such products. Only
regulatory authorities can determine whether products are safe and effective
for the uses being investigated. Healthcare professionals are directed to
refer to approved labelling for products and not rely on information presented
in news releases.
    The cautionary statements referred to above should be considered in
connection with all written or oral statements, especially forward-looking
statements, that are made by the Company or by persons acting on its behalf
and in conjunction with its periodic filings with Securities Commissions,
including those contained in the Company's news releases and most recently
filed annual information form. Forward-looking statements can be identified by
the use of words such as "expects", "plans", "will", "believes", "estimates",
"intends", "may", "bodes" and other words of similar meaning (including
negative and grammatical variations). Should known or unknown risks or
uncertainties materialize, or should management's assumptions prove
inaccurate, actual results could vary materially from those anticipated. The
Company undertakes no obligation to publicly make or update any
forward-looking statements, except as required by applicable law.

    %SEDAR: 00002351E

For further information:

For further information: please contact Michael Graham at (204) 275-4040
or by email at

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Cangene Corporation

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