Medicago Announces 2011 Third Quarter Financial Results

QUEBEC CITY, Nov. 14, 2011 /PRNewswire/ - 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, 2011. The Company's financial statements and management report are available at www.sedar.com and at www.medicago.com.

"This was another quarter of progress on both the clinical and corporate front for the Company as we continue to advance our rapid and highly effective plant-based VLP vaccines. Earlier this year, we presented positive clinical results from our phase II pandemic H5N1 influenza vaccine clinical trial and our US phase I seasonal influenza trial, confirming to date that our vaccines are safe and can elicit a strong immune response in humans," said Andy Sheldon, President and Chief Executive Officer of Medicago. "We recently commenced operations at our 97,000-square-foot facility in North Carolina within a year of holding our groundbreaking ceremony. We also closed a significant offering priced above market that included a top 50 global pharmaceutical company as lead investor, Philip Morris International and other strategic healthcare-focused funds. This infusion of capital from strategic investors, in our opinion, further validates our approach and our technology and puts us in a strong position financially. This allows us to move forward with our clinical programs and initiatives, such as, the U.S. phase II study for our seasonal flu vaccine and the expansion of our product pipeline outside of influenza."

Key Developments:

Corporate

  • Medicago USA Inc. commenced operations at its 97,000-square-foot plant-based vaccine facility in Research Triangle ParkNorth Carolina, within 11 months of hosting the groundbreaking ceremony.
  • Medicago won the 2011 Frost & Sullivan Enabling Technology of the Year award in the vaccine market for the Company's achievements and leadership in the development of rapid and highly effective plant-based VLP vaccines.
  • Completed a private placement offering of $25 million in which the lead investor was a top 50 global pharmaceutical company.
  • Subsequent to quarter end, Philip Morris Investments B.V. announced the exercise of its pre-emptive right and the investment of an aggregate of $22.5 million in Medicago through a two tranche private placement.  The first one of $11.3 million closed on October 27, 2011 and the second one is subject to shareholder approval.

Products

  • Successfully completed the first stage of the research collaboration agreement with a top 10 global pharmaceutical company for the development of a non-influenza VLP vaccine candidate. Medicago received the approval to proceed to the second stage of the collaboration.

Outlook

Upcoming potential milestones for the next six months may include, among others:

       Initiation of U.S. phase II clinical trial with trivalent seasonal influenza.
  - Initiation of Infectious Disease Research Institutes (IDRIs) U.S. phase I clinical trial with a single dose of Medicago's H5N1 vaccine with their adjuvant
  - Addition of new pipeline candidates
  - Potential contracts  with governments and pharmaceutical companies

Financial Results

Consolidated loss for the three-month period ended September 30, 2011 was $4,407,000 or $0.03 per basic and diluted share compared to a loss of $4,140,000 or $0.03 per basic and diluted share for the three-month period ended September 30, 2010.  Since the beginning of the year, the consolidated loss was $14,341,000 or $0.09 per basic and diluted share compared to a loss of $11,881,000 or $0.10 per basic and diluted share for the same period in 2010.  Increase in the loss for the three and nine-month period is explained by an increase in R&D expenses in relation with clinical development of our Influenza vaccine candidates and the DARPA project.

Cash and cash equivalents and short-term investments were of $28.1 million as at September 30, 2011.

As at November 11, 2011, there were 229,410,302 common shares issued and outstanding as well as 8,212,819 stock options outstanding.  Warrants outstanding and Unit options outstanding as at November 11, 2011 represented a total of 25,719,417.

Detailed financial statements and the MD&A are available at www.medicago.com or www.sedar.com.

About Medicago

Medicago is committed to provide highly effective and competitive vaccines based on proprietary Virus-Like Particle (VLP) and manufacturing technologies. Medicago is developing VLP vaccines to protect against pandemic and seasonal influenza and other indications, 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 promises 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 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 o 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 31, 2011 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.

SOURCE Medicago Inc.

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