Medicago Announces 2013 First Quarter Financial Results

           Medicago Announces 2013 First Quarter Financial Results

PR Newswire

QUEBEC CITY, May 9, 2013

QUEBEC CITY,  May  9,  2013 /PRNewswire/  -    Medicago Inc.  (TSX:  MDG),  a 
biopharmaceutical  company  focused   on  developing   highly  effective   and 
competitive vaccines  based  on  proprietary  manufacturing  technologies  and 
Virus-Like Particles  (VLPs), today  announced its  operational and  financial 
results for the first  quarter ended March 31,  2013. The Company's  financial 
statements and  management  report  are  available  at  and  at

"In the first quarter of 2013,  we announced several strategic agreements  for 
our plant-based  vaccines.  This  included  the execution  of  a  $15  million 
non-dilutive loan with  a major  pharmaceutical company,"  said Andy  Sheldon, 
President and Chief  Executive Officer.  "Discussions are  ongoing with  this 
pharmaceutical company to finalize  a licensing agreement.  We also signed  an 
agreement with Mitsubishi  Chemical Corporation, and  were awarded a  delivery 
contract with DARPA enabling us to leverage our commercial production facility
in North Carolina."

Mr. Sheldon continued, "Following the recent announcement of our best in class
H5N1 clinical data with IDRI, we expect to commence a pandemic readiness Phase
II clinical  trial,  as  well as  a  U.S.  phase II  clinical  trial  for  our 
quadrivalent seasonal flu vaccine."

Corporate and Financial Highlights
During the first quarter of 2013:

  *Awarded an Indefinite Delivery / Indefinite Quantity (ID/IQ) contract from
    DARPA based on Medicago having met all the technical requirement standards
    for the contract and is now allowed to bid for the manufacture and
    delivery of certain tobacco-produced proteins.
  *Executed a $15,000,000 loan agreement with a major Pharmaceutical
    company. Medicago is continuing discussions to finalize a licensing
    agreement with this pharma partner.
  *Investissement Quebec has agreed to a three-year extension of the maturity
    date of Medicago Inc.'s 2003 loan made under the BioLevier program.
    Originally, the maturity date of the loan in the principal amount of
    $15.3-million, was Dec. 31, 2014, and is now Dec. 31, 2017. Under this new
    agreement, Medicago will be required to make minimum annual repayments of
    $1.75-million, $2.5-million and $2.5-million in 2014, 2105 and 2016,
    respectively, with the remaining balance due on Dec. 31, 2017.
  *Execution of a collaboration agreement with Mitsubishi Chemical Holdings
    Corporation ("MCHC") to develop a next generation technology for plant

Subsequent to the first quarter:

  *Announced positive phace I clinical results for its H5N1 vaccine in a
    trial run by IDRI. The vaccine was found to be safe and well-tolerated and
    induced a solid immune response exceeding the three CHMP (Committee for
    Medicinal Products for Human Use) immunogenicity criteria for licensure of
    influenza vaccines. The vaccine was tested in three different
    configurations: using IDRI's Glucopyranosyl Lipid A ("GLA") formulated
    adjuvant, given both intramuscularly and intradermally, and using alum
    intramuscularly. All three configurations exceeded the CHMP criteria.
  *Raised $3.5 million through a private placement of 6.25 million common

Corporate Outlook

Expected upcoming milestones include:

  *Phase II pandemic readiness clinical trial for H5N1 pandemic influenza
    vaccine with interim data expected in summer 2013
  *US Phase IIa clinical trial for quadrivalent seasonal influenza vaccine
    with interim data expected in summer 2013
  *Additional contract opportunities (government, pharmaceutical companies)
  *Addition of new pipeline candidates

Financial Results

The consolidated loss  for the three-month  period ended March  31, 2013,  was 
$8,716,070 or $0.04 per basic and diluted  share. This compares to a loss  of 
$8,987,326 or $0.04  per basic and  diluted share for  the three-month  period 
ended March 31, 2012. Operating  expenses were $9,135,328 in the  three-month 
period ended March 31, 2013, compared to  $9,143,941 in 2012. on of more  than 
10,000,000 doses of  vaccines for  the DARPA  project. Since  June 2011,  the 
Corporation has completed a Phase II clinical trial for its H5N1 VLP  vaccine, 
a Phase I  clinical trial for  its H1N1/seasonal vaccine,  a Phase I  clinical 
trial for  its  H5N1 with  a  new adjuvant,  added  a rabies  vaccine  to  its 
portfolio, completed the construction of its US facility, commissioned the  US 
facility and  completed  the  production  of more  than  10,000,000  doses  of 
vaccines for the  DARPA project.  All of  those activities  have resulted  in 
increased expenses during the last six quarters.

Cash and short-term investments  were $15.3 million as  at March 31, 2013,  an 
increase of $4.0 million from December 31, 2012.

As at May 9, 2013, there were 254,657,245 common shares issued and outstanding
as well as 12,468,684 stock  options outstanding. Warrants outstanding as  at 
May 9, 2013 are in the aggregate of 15,649,160.

Voting Results of Annual Meeting of Shareholders

At the Annual Meeting of Shareholders held today, all matters submitted to the
vote of the shareholders were approved, namely the election of directors and
the appointment of auditors.

The Board of Directors will consist of Randal Chase, Andrew J. Sheldon, Pierre
Seccareccia, Jonathan Goodman, Pierre-Marc Johnson, Pierre Des Marais II and
Louis P. Vézina.The detailed results of the vote for the election of
directors are set out below. For further information, please refer to the
management proxy circular available on

Election of Directors

Nominee                 % For  % Withheld
Randal Chase - Chairman 97.07%   2.93%
Andrew J. Sheldon       97.08%   2.92%
Pierre Seccareccia      97.06%   2.94%
Jonathan Goodman        97.03%   2.97%
Pierre-Marc Johnson     97.00%   3.00%
Pierre Des Marais II    97.07%   2.93%
Louis P. Vézina         97.07%   2.93%

Video - Medicago's Commercial Scale Vaccine Facility
This year, Medicago  is pleased  to present its  2013 corporate  video of  its 
commercial scale  vaccine  facility.  The  video will  allow  viewers  to  see 
Medicago's state  of  the art  vaccine  facility  and will  also  provide  an 
understanding  of  the  operational   processes  of  Medicago's   proprietary 
plant-based manufacturing  platform.  The  video  will  be  available  on  the 
company's website  on  Friday, May  10th.  To view  the  video please  go  to: (3 minutes).

About Medicago
Medicago is a clinical-stage biopharmaceutical company developing novel
vaccines and therapeutic proteins to address a broad range of infectious
diseases worldwide. The Company is committed to providing highly effective and
competitive vaccines and therapeutic proteins based on its proprietary VLP and
manufacturing technologies. Medicago is a worldwide leader in the development
of VLP vaccines using a transient expression system which produces recombinant
vaccine antigens in plants. This technology has potential to offer more potent
vaccines with speed and cost advantages over competitive technologies,
enabling the development of a vaccine for testing in approximately one 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, and supply large volumes
of vaccine antigens to the world market. Medicago also intends to expand
development into other areas such as biosimilars and biodefense products where
the benefits of our technologies can make a significant difference. Additional
information about Medicago is available at

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 "Risk Factors
and Uncertainties" in Medicago's Annual Information Form filed on March 28,
2013, 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.


Medicago Inc.
Andy Sheldon
President and CEO
(418) 658-9393

Medicago Inc.
Christina Cameron
Investor Relations
(418) 658-9393 ext.156
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