QUEBEC CITY, May 9, 2013 /CNW/ - 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 www.sedar.com 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
-- 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 production.
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
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
-- Addition of new pipeline candidates
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 www.sedar.com.
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:
www.medicago.com/investors (3 minutes).
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 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 "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.
Medicago Inc. Andy Sheldon President and CEO (418) 658-9393
Medicago Inc. Christina Cameron Investor Relations (418) 658-9393 ext.156
SOURCE: Medicago Inc.
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