BioMS Medical Announces Third Quarter 2009 Results

Toronto Stock Exchange Symbol: MS

EDMONTON, Nov. 12 /PRNewswire-FirstCall/ - BioMS Medical Corp. (TSX: MS) today
announced financial and operational results for the three and nine months
ended September 30, 2009.
During the quarter, the exclusive license and collaboration agreement between
BioMS Medical and Eli Lilly and Company (NYSE: LLY) for dirucotide was
terminated with the effect that all commercial rights to dirucotide are
returned to BioMS.
"During the third quarter, the Company made significant progress towards
completing its termination of the dirucotide clinical trials, and in reducing
expenditures," said Kevin Giese, President and CEO of BioMS Medical. "We
anticipate that this process of ending the trials, which includes the
collecting, and review and analysis of the trial data, should be substantially
completed by the end of the year."

Financial Results

The consolidated net income of the Corporation for the three months ended
September 30, 2009 was $9.9 million or $0.11 per share compared with
consolidated net income of $6.3 million or $0.07 per share for the previous
year. The consolidated net income of the Corporation for the nine months ended
September 30, 2009 was $10.1 million or $0.11 per share compared with a
consolidated net loss of ($0.8) million or ($0.01) per share for the same
period in 2008.
Revenue earned from the collaboration agreement in the amount of $20.6 million
for the three months and $45.6 million for the nine months ended September 30,
2009 compared to $16.1 million and $40.1 million for the three and nine months
ended September 30, 2008. The revenue represents the amortization of deferred
revenue from the US$87 million upfront licensing fee payment and the US$10
million development milestone payment received from Lilly from the Agreement
that was terminated on September 2, 2009. Deferred revenue is recorded as
revenue as the Corporation incurred the costs related to meeting its
obligations under the terms of the Agreement.
Total consolidated expenses for the three months ended September 30, 2009 were
$5.0 million as compared with $11.8 million in the three months September 30,
2008. Expenses related to the Corporation's direct research and development
efforts accounted for $3.7 million or 75% of all expenses as compared with
$10.1 million or 86% in 2008. Total consolidated expenses for the nine months
ended September 30, 2009 were $30.1 million as compared with $45.4 million in
the nine months September 30, 2008. Expenses related to the Corporation's
direct research and development efforts accounted for $23.4 million or 78% of
all expenses as compared with $32.6 million or 72% in 2008.
At September 30, 2009, cash and cash equivalents and short-term investments
totaled $56.3 million as compared to $90.4 million at December 31, 2008. At
September 30, 2009, the Corporation had working capital of $54.4 million as
compared to $81.3 million at December 31, 2008.
Management estimates that the current working capital is sufficient for the
Corporation to meet its obligations to fund the completion costs of the
completed clinical trials and ongoing operations beyond 2010.
As at September 30, 2009 there were 91,008,923 Class "A" common shares of the
Company issued and outstanding.

About BioMS Medical Corp.
-------------------------

BioMS Medical is a biotechnology company engaged in the development and
commercialization of novel therapeutic technologies. BioMS Medical's lead
technology, dirucotide, is for the treatment of multiple sclerosis. For
further information please visit our website at http://www.biomsmedical.com

This press release may contain forward-looking statements, which reflect the
Corporation's current expectation regarding future events. These
forward-looking statements involve risks and uncertainties that may cause
actual results, events or developments to be materially different from any
future results, events or developments expressed or implied by such
forward-looking statements. Such factors include, but are not limited to,
changing market conditions, the successful and timely completion of clinical
studies, the establishment of corporate alliances, the impact of competitive
products and pricing, new product development, uncertainties related to the
regulatory approval process and other risks detailed from time to time in the
Corporation's ongoing quarterly and annual reporting. We undertake no
obligation to publicly update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise.

BioMS Medical Corp.
Interim Consolidated Balance Sheets
(Unaudited)
-------------------------------------------------------------------------

(expressed in thousands of Canadian dollars)

September 30, December 31,
2009 2008
$ $
(Unaudited)
Assets

Current assets
Cash and cash equivalents 53,622 87,826
Short-term investments 2,659 2,614
Goods and services tax recoverable 341 299
Prepaid clinical trial costs 2,482 2,227
Recoverable from collaboration 2,083 267
Other current assets 120 54
---------------------------

61,307 93,287

Prepaid clinical trial costs - 790

Licensing costs - 5,910

Property and equipment 395 517
---------------------------

61,702 100,504
---------------------------
---------------------------

Liabilities

Current liabilities
Accounts payable and accrued liabilities 6,667 12,015
Deferred revenue - 45,605
---------------------------

6,667 57,620
---------------------------

Shareholders' Equity

Share capital 175,714 175,714

Contributed surplus 10,937 8,839

Accumulated deficit (131,616) (141,669)
---------------------------

55,035 42,884
---------------------------

61,702 100,504
---------------------------
---------------------------

BioMS Medical Corp.
Interim Consolidated Statements of Operations and Comprehensive Loss
(Unaudited)
-------------------------------------------------------------------------
(expressed in thousands of Canadian dollars and shares, except per share
amounts)

Nine-month period ended Three-month period ended
September 30, September 30,

2009 2008 2009 2008
$ $ $ $
--------------------------- ---------------------------

Revenue earned from
collaboration
partner 45,605 40,097 20,615 16,096
Less: Research and
development
expenses (23,317) (32,574) (3,670) (10,092)
--------------------------- ---------------------------

22,288 7,523 16,945 6,004

General and
administrative
expenses (5,885) (11,641) (1,275) (1,252)

Amortization of
licensing costs (736) (1,103) - (368)

Amortization of
property and
equipment (127) (82) (42) (38)
--------------------------- ---------------------------

Income (loss) from
operations 15,540 (5,303) 15,628 4,346
--------------------------- ---------------------------

Other income
(expense)
Investment income 306 1,877 40 554
Impairment of
licensing costs (5,174) (5,174)
Foreign exchange
(loss) gain (619) 2,652 (546) 1,413
--------------------------- ---------------------------

(5,487) 4,529 (5,680) 1,967
--------------------------- ---------------------------
Net income (loss)
and comprehensive
income (loss) 10,053 (774) 9,948 6,313
--------------------------- ---------------------------
--------------------------- ---------------------------

Basic and diluted
net income (loss)
per common share 0.11 (0.01) 0.11 0.07
--------------------------- ---------------------------
--------------------------- ---------------------------

Basic weighted
average number of
common shares
outstanding 91,009 91,261 91,009 91,112
--------------------------- ---------------------------
--------------------------- ---------------------------
Diluted weighted
average number of
common shares
outstanding 91,009 91,261 91,009 91,919
--------------------------- ---------------------------
--------------------------- ---------------------------

BioMS Medical Corp
Interim Consolidated Statements of Cash Flows
(Unaudited)
-------------------------------------------------------------------------

(expressed in thousands of Canadian dollars)

Nine-month period ended Three-month period ended
September 30, September 30,

--------------------------- ---------------------------
2009 2008 2009 2008
$ $ $ $
Cash provided by
(used in)

Operating
activities
Net income (loss) 10,053 (774) 9,948 6,313
Items not
involving cash
Stock-based
compensation 2,098 2,175 - 7
Amortization of
licensing costs 736 1,103 - 368
Amortization of
property and
equipment 127 81 42 38
Impairment of
licensing costs 5,174 - 5,174 -
Loss on disposal
of property and
equipment - 7 - -
--------------------------- ---------------------------

18,188 2,592 15,164 6,726
Net change in
non-cash working
capital items (53,517) 57,762 (26,026) (4,998)
--------------------------- ---------------------------
(35,329) 60,354 (10,862) 1,728
--------------------------- ---------------------------
Investing
activities
Purchase of
property and
equipment (7) (269) - (241)
Net purchase of
short-term
investments (45) (66) (7) (2,271)
Licensing costs - - - -
--------------------------- ---------------------------
(52) (335) (7) (2,512)
--------------------------- ---------------------------

Financing
activities
Proceeds from
issuance of share
capital - 91 - -
Repurchase of share
capital - (1,229) - (241)
Share issue costs - - - -
--------------------------- ---------------------------
- (1,138) - (241)
--------------------------- ---------------------------

Foreign exchange
gain (loss) on
cash and cash
equivalents held
in foreign
currency 1,177 1,920 (373) 1,456
--------------------------- ---------------------------

(Decrease) increase
in cash and cash
equivalents (34,204) 60,801 (11,242) 431

Cash and cash
equivalents -
Beginning of
period 87,826 35,428 64,864 95,798
--------------------------- ---------------------------

Cash and cash
equivalents - End
of period 53,622 96,229 53,622 96,229
--------------------------- ---------------------------
--------------------------- ---------------------------

Cash and cash
equivalents
consists of
Bank accounts 1,337 1,385 1,337 1,385
Interest bearing
deposits and
securities 52,285 94,844 52,285 94,844
--------------------------- ---------------------------
53,622 96,229 53,622 96,229
--------------------------- ---------------------------
--------------------------- ---------------------------

SOURCE BioMS Medical Corp.

Tony Hesby, Ryan Giese, Amanda Stadel, BioMS Medical Corp., (780) 413-7152,
(780) 408-3040 Fax, E-mail: info@biomsmedical.com, Internet:
http://www.biomsmedical.com; James Smith, Investor Relations, (416) 815-0700
ext. 229, (416) 815-0080 Fax, E-mail: jsmith@equicomgroup.com