Biomira announces third quarter 2007 financial results

EDMONTON, Nov. 1  /PRNewswire-FirstCall/ -- Biomira Inc. ("Biomira" or the "Company") (NASDAQ:BIOM) (TSX:BRA) today reported a consolidated net loss of $6.8 million or $0.06 per basic and diluted share for the three months ended September 30, 2007, compared to $3.7 million or $0.04 per basic and diluted share for the same period in 2006. Revenue was $1.2 million for the 2007 third quarter, compared with $1.7 million for the year earlier quarter. Total operating expenses were $7.9 million for the quarter ended September 30, 2007, compared with $5.6 million for the same quarter in 2006. All results are in Canadian dollars.

The increase in net loss of $3.1 million primarily resulted from lower revenues of $0.5 million and increased operating expenses of $2.3 million. The lower revenues resulted from reduced contract research and development funding 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. The increase in operating expenses is primarily attributable to professional fees associated with the Company's proposed reincorporation into the United States. Also contributing to the increase in operating expenses is higher amortization expense related to intangible assets acquired as part of the ProlX acquisition in October 2006. Partially offsetting these variances is lower research and development expenses, once again resulting from transitioning the responsibility for the clinical development and regulatory activities for Stimuvax to Merck KGaA during 2006.

Financial results for the nine months ended September 30, 2007 reflect a consolidated net loss of $18.4 million or $0.16 per basic and diluted share compared to $13.5 million or $0.15 per basic and diluted share for the same period in 2006.

As at September 30, 2007, cash and cash equivalents and short-term investments were $20.5 million compared to $33.0 million at the end of 2006, a decrease of $12.5 million. Major contributors to the net change included $10.6 million used in operations, $0.5 million used in payment of accrued business acquisition and share issuance costs, and $1.1 million used in the purchase of capital and intangible assets. Included in cash used in operations is an increase in inventory of $3.5 million related to Stimuvax manufacturing activities, which resumed in the first quarter of 2007 as a result of the commencement of the Merck KGaA-led phase 3 trial of Stimuvax in non-small cell lung cancer. Also included in cash used in operations are proceeds from collaborative agreements of $5.6 million related to milestone payments received under the provisions of the collaboration between Biomira and Merck KGaA.

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 and in the amended registration statement on Form S-4 filed by Oncothyreon Inc.

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         Nine Months Ended
                                 September 30              September 30
                               2007         2006         2007         2006
  -------------------------------------------------------------------------

  REVENUE
    Contract research
     and development    $        16  $     1,658  $       665  $     3,002
    Contract
     manufacturing            1,016            -        1,016            -
    Licensing revenue
     from collaborative
     agreements (Note 7)        158           51          349          157
  Licensing, royalties,
   and other revenue              1            6           25           92
  -------------------------------------------------------------------------
                              1,191        1,715        2,055        3,251
  -------------------------------------------------------------------------

  EXPENSES
    Research and
     development (Note 8)     1,273        3,623        7,961       10,551
    Manufacturing             1,290            -        1,290            -
    General and
     administrative           4,412        1,782        9,093        6,046
    Marketing and
     business development        14          146          595          513
    Amortization                870           92        2,589          295
  -------------------------------------------------------------------------
                              7,859        5,643       21,528       17,405
  -------------------------------------------------------------------------

  OPERATING LOSS             (6,668)      (3,928)     (19,473)     (14,154)
  Investment and other
   (loss) income               (435)         191         (434)         615
  Interest expense               (1)          (2)          (2)          (9)
  -------------------------------------------------------------------------

  LOSS BEFORE INCOME
   TAXES                     (7,104)      (3,739)     (19,909)     (13,548)
  INCOME TAX RECOVERY:
    Future                      325            -        1,518            -
  -------------------------------------------------------------------------

  NET LOSS              $    (6,779) $    (3,739) $   (18,391) $   (13,548)
  -------------------------------------------------------------------------
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  BASIC AND DILUTED
   LOSS PER SHARE       $     (0.06) $     (0.04) $     (0.16) $     (0.15)
  -------------------------------------------------------------------------
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  WEIGHTED AVERAGE
   NUMBER OF COMMON
   SHARES OUTSTANDING   116,915,338   89,388,932  116,915,338   88,227,133
  -------------------------------------------------------------------------
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  Biomira Inc.
  Consolidated Balance Sheets Data
  (expressed in thousands)
  (unaudited)

                                                 September 30  December 31
                                                         2007         2006
  -------------------------------------------------------------------------
  Cash and cash
   equivalents and
   short-term investments                         $    20,455  $    33,037
  Inventory                                       $     4,806  $     1,287
  Total assets                                    $    73,763  $    79,099
  Current portion of
   deferred revenue                               $     5,471  $       207
  Total long-term
   liabilities                                    $    18,360  $    13,378
  Shareholders equity                             $    44,395  $    61,417
  Common shares outstanding                           116,915      116,915
  -------------------------------------------------------------------------
  -------------------------------------------------------------------------

  (CAD $1.00 = USD $1.00)


DATASOURCE: Biomira Inc.



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