Cangene signs agreement to supply the U.S. Department of Defense with VIG product

    Readers are referred to the cautionary notes regarding Forward-looking
    Information at the end of this release

    Listed TSX, Symbol: CNJ

    TORONTO and WINNIPEG, April 15 /CNW/ - Cangene Corporation today reports
that the Chemical Biological Medical Systems Project Management Office of the
United States Department of Defense ("DoD") has signed an agreement to
purchase Cangene's Vaccinia Immune Globulin Intravenous (Human) ("VIG"). The
four-year, sole-source base contract is valued at approximately US$4.9
million. Cangene expects to deliver the product during fiscal 2010. The DoD
has two options to purchase additional product during the course of the
contract, which if exercised, could add approximately US$7 million to the
total value. This contract is independent of Cangene's agreement with the U.S.
Centers for Disease Control and Prevention for the supply of VIG; the DoD's
stockpile of the product will be maintained for use by United States military
personnel under the DoD's Smallpox Immunization Program. Cangene's VIG product
was approved by the U.S. Food and Drug Administration ("FDA") in 2005.
    "Since this drug was approved, we have signed a number of agreements with
government groups to supply product to their stockpiles-this illustrates the
benefit of having an FDA licence and that there is an ongoing market for the
product," said Dr. John Langstaff, Cangene's president and CEO.

    About Vaccinia Immune Globulin Intravenous (Human)

    VIG is a hyperimmune product intended for use in treating and preventing
certain types of severe complications that may be associated with smallpox
vaccination and is considered to be an important component of smallpox
vaccination programs. Hyperimmunes are highly purified, specialty antibodies
made from plasma.

    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.
Cangene has approximately 700 employees in eight locations across North
America and its products are sold worldwide. It operates three large
manufacturing facilities-two in Winnipeg, Manitoba and one in Baltimore,
Maryland-where it produces its own products and undertakes contract
manufacturing for a number of companies. Cangene operates three U.S. and one
Canadian plasma-collection facilities. In addition, it has a regulatory
affairs, sales and investor relations office in Toronto, Ontario.
    Cangene is focused on developing therapeutics for infectious diseases,
and the Company uses patented manufacturing processes to produce
plasma-derived and recombinant therapeutic proteins. Cangene has five FDA
and/or Health Canada-approved products. 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.
    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). Cangene's website,, includes product and investor information, including past
news releases. Chesapeake's website is
    "Cangene" is a trademark belonging to Cangene Corporation.

    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 costs 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 labeling for products and not rely on information presented
in news releases. Drug names and prescribing information may differ in various

    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: about Cangene Corporation, please contact
Michael Graham at (204) 275-4040 or by email at

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