QUEBEC CITY, Nov. 12 /PRNewswire-FirstCall/ -- Medicago Inc. (TSX: MDG), a biotechnology company focused on developing highly effective and competitive vaccines based on proprietary manufacturing technologies and Virus-Like Particles, today announced its operational and financial results for the third quarter ended September 30, 2010. The Company's financial statements and management report are available at http://www.sedar.com/ and at http://www.medicago.com/.
"There were several key developments this quarter. Firstly, Medicago was awarded US$21M from the Defense Advanced Research Projects Agency (DARPA). This award recognizes our solution to quickly produce highly effective and cost-effective vaccines. We have commenced construction of our U.S. commercial grade facility, which will allow us to participate in the $3.7B seasonal and pandemic vaccine market whilst enhancing access to grant programs in the U.S. for additional funding opportunities," said Andy Sheldon, President and CEO of Medicago. "Secondly, we continue to make great strides in the clinical advancement of our VLP plant-based vaccine technology and recently initiated our phase II clinical trial for our H5N1 pandemic influenza vaccine. This trial will generate data, within three months, further validating our manufacturing technology."
Key Developments: Corporate -- Medicago USA Inc. was awarded a US$21 million grant from the Defense Advanced Research Projects Agency (DARPA) under a Technology Investment Agreement to provide scalable manufacturing of its plant-expressed VLP vaccines in the U.S.A.. -- Completed a C$7.5 million equity offering. The proceeds from this offering will be mainly used to fund the Company's participation in the DARPA cost-sharing program. -- Appointed Mike Wanner as Vice President of U.S. Operations. -- Commenced construction of its U.S. vaccine facility. The facility is projected to be operational in summer 2011. -- Subsequent to quarter end, Medicago received US$1M in funding by U.S.-based PATH pursuant to a research collaboration agreement. Medicago and PATH will work together on a broad coverage influenza vaccine based on Medicago's proprietary plant-based Virus-Like Particle (VLP) technologies for the developing world. Clinical -- Discovered a breakthrough method of preparing plant derived recombinant proteins and VLPs and filed two international patent applications under the Patent Cooperation Treaty (PCT) that broadly cover new methods of preparing plant-derived recombinant proteins and VLPs. -- Demonstrated cross protection would be a major competive advantage when administering Influenza vaccines to human populations. Medicago has now demonstrated that its avian influenza vaccine can cross protect against different strains of H5N1 influenza in ferrets. -- Subsequent to quarter end, Medicago received regulatory approval and commenced Phase II clinical testing of its H5N1 avian influenza vaccine. Status of Phase II H5N1 clinical trial
Enrollment is ongoing and vaccination has commenced in the Company's phase II clinical trial with its H5N1 pandemc influenza vaccine. Interim results from this study are expected within three months.
Financial Results
Consolidated loss for the three-month period ended September 30, 2010 was $4,104,000 or $0.03 per basic and diluted share compared to a loss of $3,165,000 or $0.03 per basic and diluted share for the three-month period ended September 30, 2009. Since the beginning of the year the consolidated loss was $11,766,000 or $0.09 per basic and diluted share compared to a loss of $8,584,00 or $0.09 per basic and diluted share. Increase in the loss for the three and nine-month period is explained by the increase in R&D expenses in relation with the Phase II clinical trials that is underway.
Cash and cash equivalents were $14.7 million as at September 30, 2010.
As at November 12, 2010, there were 136,912,102 common shares issued and outstanding, 7,344,047 stock options outstanding, 3,796,982 unit options outstanding and 26,209,586 warrants outstanding.
Detailed financial statements and the MD&A are available at http://www.medicago.com/ or http://www.sedar.com/.
Grant of stock options
Pursuant to terms and conditions of Medicago Inc.'s stock option plan, the company has granted 239,000 stock options to employees. The stock options were issued at an exercise price of 0.40 cents, will vest in three yearly instalments and are set to expire 10 years from the date of the grant.
About Medicago
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 pandemic and seasonal influenza using a transient expression system which produces recombinant vaccine antigens in non-transgenic plants. Their lead vaccine candidate, H5N1, has successfully completed a PI clinical trial and will be entering a PII clinical trial in 2010. Medicago's 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 http://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 24, 2010 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 statements.
Medicago Inc.
CONTACT:
| Medicago, Inc. Andy Sheldon President and CEO (418) 658-9393 | Medicago Inc. Christina Cameron Investor Relations Manager (418) 658-9393 x156 |
