QUEBEC CITY, Nov. 29 /CNW/ - Medicago Inc. (TSX-V: MDG), a developer and
manufacturer of protein-based vaccines using a proprietary transient
expression system, today reported its financial results for the third quarter
ended September 30, 2007. The Company's financial statements and management
report are available at www.sedar.com and at www.medicago.com.
"During the third quarter, we made significant progress in the validation
of our key value proposition and delivered against milestones set out during
the IPO," said Andy Sheldon, CEO of Medicago Inc. "We succeeded in using our
proprietary expression technology to produce a vaccine candidate for H5N1
Avian Influenza in highly immunogenic particles called Virus like particles
("VLPs"). VLPs have significant advantages over conventional vaccines as they
are known to enhance immunity and therefore increase protection against a
disease. Further, we announced positive pre-clinical study results that
demonstrated that our VLP vaccine triggers a strong protective immune response
against the lethal H5N1 Indonesia strain currently in circulation. We are now
performing additional studies that will allow the initiation of phase I
studies in late 2008."
The Company's biggest challenge in the immediate short-term is to find
partners for its technology and to raise additional capital to fund the
ongoing activities of Medicago.
Research and development ("R&D") expenses decreased to $582,000 in the
third quarter of 2007, compared to $941,000 in the third quarter of 2006. The
decrease in R&D expenses is mainly attributable a lower level of contract work
and lower wages and salaries resulting from the Company's decision to focus on
fewer, more promising opportunities.
General and administrative, business development and intellectual
property expenses totalled $465,000 for the third quarter of 2007, compared
$612,000 for in the same period in 2006.
Investment tax credits totalled $468,000 for the three-month period ended
September 30, 2007, compared to $250,000 for the comparable period in 2006.
The increase in tax credits resulted from the completion of a corporate
reorganization in April 2007 and amendments to the Company's 2006 provincial
Consolidated loss for the three months ended September 30, 2007,
decreased to $1,002,000 or ($0.06) per share (basic and diluted), compared to
a consolidated loss of $1,784,000 or ($0.16) per share (basic and diluted),
for the same period in 2006.
As at September 30, 2007, the Company had consolidated assets of
$6.9 million, including cash and cash equivalents of $127,000, compared to
consolidated assets of $8.6 million, including cash and cash equivalents of
$443,000, as at December 31, 2006.
About Medicago Inc.
Medicago is committed to provide highly effective and affordable vaccines
based on our proprietary Virus-Like Particles (VLPs) 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 the cells of non-transgenic plants. This
technology has potential to offer advantages of speed and cost over
competitive technologies. It can 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 the
Company's current expectations regarding future events. The forward-looking
statements involve risks and uncertainties. Actual results could differ
materially from those projected herein. The Company disclaims any obligation
to update these forward-looking statements.
The TSX Venture Exchange Inc. has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
For further information:
For further information: Andy Sheldon, President and Chief Executive
Officer, Medicago, Tel.: (418) 658-9393, Email: email@example.com; Arianna
Vanin, The Equicom Group, Tel: (514) 844-4680, Email: firstname.lastname@example.org