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Med BioGene Posts $1.7M in Revenues for Q3

NEW YORK (GenomeWeb News) – Med BioGene today reported third-quarter revenues of C$1.7 million (US$1.7 million), compared to no revenues for the third quarter of 2010.

The Vancouver, British Columbia-based firm derived all of its revenues from licensing. During the quarter it received license fees and research reimbursement of C$2.3 million from Precision Therapeutics, "half of which is credited against future royalties" that it may receive from Precision, Med BioGene said in a statement accompanying its results.

Earlier this year Med BioGene inked an exclusive licensing deal with Precision Therapeutics covering its LungExpress Dx test. The gene expression-based test has been developed to identify patients with early-stage non-small-cell lung cancer, who following surgical removal of their tumors, are at higher or lower risks of mortality.

Under terms of the agreement, Precision Therapeutics agreed to pay Med BioGene C$2.3 million in licensing fees and research reimbursements within 120 days of the deal's closing. Med BioGene is also eligible for royalty payments.

Med BioGene reported net income of C$1.6 million, or C$.02 per share, for the quarter, compared to a net loss of C$1.7 million, or C$.02 per share, for Q3 2010.

Its R&D spending for the quarter plummeted to C$14,511 from C$194,224, and its general and administrative costs fell sharply to C$183,958 from C$1.5 million.

Med BioGene finished the quarter with C$853,317 in cash and cash equivalents.