BIOM Biomira Inc. - Common Shares (MM)

EDMONTON, April 26 /PRNewswire-FirstCall/ -- Biomira Inc. (NASDAQ:BIOM) (TSX:BRA) today reported a consolidated net loss from operations of $5.4 million or $0.05 per basic and diluted share for the three months ended March 31, 2007, compared to $5.8 million or $0.07 per basic and diluted share for the same period in 2006. Revenue was $0.2 million for the 2007 first quarter, compared with $0.4 million for the year earlier quarter. Total operating expenses were $6.7 million for the quarter ended March 31, 2007, compared with $6.4 million for the same quarter in 2006. All results are in Canadian dollars. The increase in operating expenses in the first quarter of 2007 compared with the first quarter of 2006 primarily resulted from an increase in amortization expense and marketing and business development expense of $0.8 million and $0.4 million respectively, partially offset by a reduction in research and development expense of $1.0 million. The increase in amortization expense relates to the intangible assets acquired in the acquisition of ProlX Pharmaceuticals Corporation in October 2006, and the increase in marketing and business development expense relates to workforce reduction costs in the first quarter of 2007. The decrease in research and development expense primarily relates to reduced clinical and development expenditures as a result of transitioning the responsibility for the clinical development and regulatory activities for Stimuvax(R) to Merck KGaA of Darmstadt, Germany ("Merck KGaA") during 2006, and related workforce reductions undertaken during 2006. As at March 31, 2007, our cash and cash equivalents and short-term investments were $28.7 million compared to $33.0 million at the end of 2006, a decrease of $4.3 million. Major contributors to the net change included $3.3 million used in operations, $0.5 million used in payment of accrued business acquisition and share issuance costs, and $0.5 million used in the purchase of intangible assets. Netted against cash used in operations was the receipt of a milestone payment to Biomira of $2.9 million as the result of the enrollment of the first patient in the global phase 3 Stimuvax clinical trial. This milestone payment has been recorded as deferred revenue and is being recognized as revenue on a straight-line basis over the remaining patent life of the Stimuvax product. The increase in inventory to $3.7 million at March 31, 2007, from $1.3 million at December 31, 2006, reflects increased Stimuvax manufacturing activities as a result of the commencement of the Merck KGaA-led phase 3 trial of Stimuvax in non-small cell lung cancer initiated in the first quarter of 2007. About Biomira Biomira is a biotechnology company specializing in the development of innovative therapeutic products for the treatment of cancer. Biomira's goal is to develop and commercialize novel synthetic vaccines and targeted small molecules that have the potential to improve the lives and outcomes of cancer patients. Forward-Looking Statements In order to provide our investors with an understanding of our current results and future prospects, this release may contain statements that are forward looking. These forward-looking statements represent Biomira's intentions, plans, expectations and beliefs and are based on our experience and our assessment of historical and future trends and the application of key assumptions relating to future events and circumstances. Forward-looking statements involve risks and uncertainties related to our business and the general economic environment, many beyond our control. These risks, uncertainties and other factors could cause our actual results to differ materially from those projected in forward-looking statements, including those predicting adequacy of financing and reserves on hand; currency exchange rate fluctuations; changes in general accounting policies; and general economic factors. Although we believe that any forward-looking statements that may be contained herein are reasonable, we can give no assurance that our expectations are correct. All forward-looking statements are expressly qualified in their entirety by this cautionary statement. For a detailed description of our risks and uncertainties, you are encouraged to review the official corporate documents filed with the securities regulators in Canada and the United States, including the risk factors described in our 2006 Annual Report. Additional Information Additional information relating to Biomira, including a copy of our Annual Information Form, Form 40-F and Proxy Circular, can be found on SEDAR at http://www.sedar.com/ and U.S. EDGAR at http://www.sec.gov/. Biomira Inc. Consolidated Statements of Operations (expressed in thousands of Canadian dollars, except share and per share amounts) (unaudited) Three Months Ended March 31 2007 2006 ------------------------------------------------------------------------- REVENUE Contract research and development $ 116 $ 324 Licensing revenue from collaborative agreements 74 55 Licensing, royalties, and other revenue 11 1 ------------------------------------------------------------------------- 201 380 ------------------------------------------------------------------------- EXPENSES Research and development 2,989 3,956 General and administrative 2,243 2,130 Marketing and business development 560 218 Amortization 862 106 ------------------------------------------------------------------------- 6,654 6,410 ------------------------------------------------------------------------- OPERATING LOSS (6,453) (6,030) Investment and other income 358 237 Interest expense (1) (7) ------------------------------------------------------------------------- LOSS BEFORE INCOME TAXES (6,096) (5,800) INCOME TAX RECOVERY: Future 737 - ------------------------------------------------------------------------- NET LOSS $ (5,359) $ (5,800) ------------------------------------------------------------------------- ------------------------------------------------------------------------- BASIC AND DILUTED LOSS PER SHARE $ (0.05) $ (0.07) ------------------------------------------------------------------------- ------------------------------------------------------------------------- WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING 116,915,338 85,864,809 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Biomira Inc. Consolidated Balance Sheets Data (expressed in thousands) (unaudited) March 31 December 31 2007 2006 ------------------------------------------------------------------------- Cash and short-term investments $ 28,707 $ 33,037 Inventory $ 3,689 $ 1,287 Total assets $ 75,878 $ 79,099 Deferred revenue (current and non-current) $ 3,887 $ 1,036 Total long-term liabilities $ 15,212 $ 13,378 Shareholders equity $ 56,477 $ 61,417 Common shares outstanding 116,915 116,915 ------------------------------------------------------------------------- ------------------------------------------------------------------------- (CAD $1.00 = USD $0.87) DATASOURCE: Biomira Inc. CONTACT: Investor and Media Relations Contact: Stephanie Seiler, Ph.D., Gemini BioProjects LLC, (206) 713-0124,

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