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Med BioGene's 2012 Revenues Drop to Zero, as it Awaits Launch of NSCLC Test

NEW YORK (GenomeWeb News) – Med BioGene had no revenues and a loss of $366,345, or breakeven on a per-share basis, for full-year 2012, the company disclosed in a document filed with Canadian regulators today.

The revenue figure compares to $2.1 million a year ago. The Vancouver, British Columbia-based firm recorded a profit of $1.6 million, or $.02 per share, for FY 2011.

The drop in revenues results from the amendment of a licensing deal with its commercial partner Precision Therapeutics.

Research and development costs were zero compared to $94,519 a year ago, Med BioGene said, while SG&A costs were almost halved to $368,083 from $732,216.

As of Dec. 31, 2012, the company had $355,326 in cash and cash equivalents.

All of its financials were provided in US dollars.

Med BioGene said in a statement that Precision has completed its final clinical studies in advance of the expected launch of Med BioGene's GeneFx Lung test for the identification of patients with early stage, non-small-cell lung cancer who, following surgical removal of their tumor, are at higher or lower risks of mortality.

The test, previously called LungExpress Dx, is expected to launch mid-year. The firms amended their commercialization deal in October, and Med BioGene Executive Chairman Erinn Broshko said today that upon the launch of GeneFx, the first milestone payment from Precision would provide Med BioGene with enough funds to keep it operational through the third quarter of 2015.

In early 2011 Signal Genetics and Respira Health sued Med BioGene alleging a breach of agreement, violation of a confidentiality agreement, and misuse of proprietary information, among other charges. In February Med BioGene announced that the Supreme Court of the State of New York granted its motion to dismiss claims by the plaintiffs for lost profit damages arising from alleged breaches of contract, as well as a cause of action for negligent misrepresentation and a cause of action for unfair competition.

Med BioGene added today that it is confident "that we will be successful in having the remaining claims and cause of action dismissed."