Medgenics Announces Preliminary Results for the Year Ended 31 December 2007

  
    
  
  
    
      Medgenics (AIM:MEDG), the US-incorporated biopharmaceutical company 
      developing the 'Biopump’ sustained-action 
      protein therapy for the treatment of chronic diseases, is pleased to 
      announce its first full year results since the admission of the Company’s 
      shares to trading on AIM. The Annual Report and Accounts of the Company 
      and its subsidiary (the Group) for the year ended 31 December 2007 will 
      be posted to shareholders during the week commencing 23 June 2008 and 
      will be available on the Company’s website (www.medgenics.com).
    
    
      Key Points for the period:
    
    
      
        Successful fund raising and admission to AIM on 4 December 2007, 
        raising gross proceeds of £3.28 million (US 
        $6.72 million)1.
      
      
        The proceeds of the fund raising are being used to fund the second 
        clinical trial, which will be a Phase I/II safety and efficacy study 
        of its lead sustained-action protein therapy to treat anaemia, and to 
        further develop and test its Biopump platform technology and products.
      
      
        Increased consolidated net assets of $3.3 million (2006: $987,000)
      
      
        Increased cash on hand at 31 December 2007 of US $4.7 million (2006: 
        $1.6 million).
      
      
        Net loss after tax of US $3.9 million (2006: US $2.6 million).
      
    
    
      Highlights since admission:
    
    
      
        Appointment of Lord Steinberg as Non-Executive Director in February 
        2008.
      
      
        Application submitted for approval of the Phase I/II trial of its 
        EPODURE protein therapy to the Israel Ministry of Health (MoH) in 
        February 2008.
      
      
        Appointment of Dr. Ehud Shoshani, former CEO of Quintiles, Israel, as 
        Vice President of Clinical Affairs and addition of key scientific and 
        engineering personnel in accordance with its plan and preparation for 
        the Phase I/II clinical trial for EPODURE.
      
      
        Successful manufacture of the key 'gutless' adenoviral vector in a GMP 
        (Good Manufacturing Practice) vector production facility. This vector 
        will be used to prepare EPODURE Biopumps capable of producing 
        sufficient daily amounts of erythropoietin (EPO) to meet the Group's 
        requirements for use in its forthcoming Phase I/II clinical trial in 
        anaemic patients with chronic kidney disease.
      
      
        Completion of the design, fabrication and evaluation of the key 
        proprietary patient contact devices that will be used both to enable 
        Medgenics to conduct its current Phase I/II clinical trial and to 
        assist in future clinical trials.
      
      
        Successful move to a new larger facility, allowing the corporate and 
        R&D operations to be housed in one location.
      
    
    
      Commenting on the results Dr. Andrew Pearlman, Chief Executive Officer 
      of Medgenics, said:
    
    
      “2007 was an important year for Medgenics, 
      culminating in our successful fund raising and admission to AIM in 
      December 2007 in what was and still remains a turbulent economic 
      climate. Since then, we have made excellent progress with our 
      preparations for the start of the Phase I/II safety and efficacy 
      clinical trial of our EPODURE Biopump for treating anaemia. We remain on 
      track to begin this important trial mid-year and are expecting further 
      guidance from the Israel Ministry of Health following its meeting on 1 
      July 2008. Key initial safety and efficacy data for EPODURE is expected 
      3-5 months after the trial commences. The next few months, therefore, 
      will be very exciting for the Company and I look forward to reporting 
      further progress over the coming weeks and months.”
    
    
      1 Exchange rate: £1.00 
      = $2.06 as at 26 November 2007
    
    
      NOTES TO EDITORS:
    
    
      Medgenics, Inc. is a clinical-stage biopharmaceutical company developing 
      its unique tissue-based Biopump platform technology to provide 
      sustained-action protein therapy for the treatment of a range of chronic 
      diseases.
    
    
      Medgenics currently has two products in development based on this 
      technology:
    
    
      
        EPODURE – producing erythropoietin (EPO) to 
        treat anaemia
      
      
        INFRADURE – producing interferon-alpha (IFN-?) 
        to treat hepatitis C
      
    
    
      The Company has demonstrated proof of principle of the Biopump treatment 
      procedure in a clinical trial using a short-acting version of EPODURE in 
      anaemic patients. A long-acting version of EPODURE, designed to produce 
      and deliver a therapeutic dose of EPO steadily for six months or more, 
      is scheduled to enter a Phase I/II trial in mid-2008. The Company plans 
      to follow with a clinical trial of INFRADURE in 2009.
    
    
      Medgenics intends to develop its innovative products and bring them to 
      market via multiple strategic partnerships with major pharmaceutical 
      and/or medical device companies, starting with EPODURE and INFRADURE.
    
    
      Beyond these, Medgenics plans to develop and/or out-license a pipeline 
      of future Biopump products targeting the large and rapidly growing 
      global protein therapy market, which is forecast to reach US $87 billion 
      by 2010. Other potential areas include multiple sclerosis (interferon-?), 
      haemophilia (Factor XIII), paediatric growth hormone deficiency (human 
      growth hormone) and diabetes (insulin).
    
    
      Founded in 2000, Medgenics is a US-incorporated company with major 
      operations in Misgav, Israel. Medgenics was admitted to AIM in December 
      2007 (AIM:MEDG).
    
    
      www.medgenics.com
    
    
      CAUTIONARY NOTICE REGARDING FORWARD-LOOKING STATEMENTS
    
    
      This release contains forward-looking statements, which include all 
      statements other than statements of historical fact, including (without 
      limitation) those regarding the Company’s 
      financial position, business strategy, plans and objectives of 
      management for future operations. These statements relate to future 
      events, prospects, developments and strategies. Forward-looking 
      statements are sometimes identified by their use of the terms and 
      phrases such as “estimate,” 
      “project,” “intend,” 
      “forecast,” “anticipate,” 
      “plan,” “planning, 
      “expect,” “believe,” 
      “will,” “will 
      likely,” “should,” 
      “could,” “would,” 
      “may” or the 
      negative of such terms and other comparable terminology. All such 
      forward-looking statements are based on current expectations and are 
      subject to risks and uncertainties. Should any of these risks or 
      uncertainties materialize, or should any of the Company’s 
      assumptions prove incorrect, actual results may differ materially from 
      those included within these forward-looking statements. Accordingly, no 
      undue reliance should be placed on these forward-looking statements, 
      which speak only as of the date made. The Company expressly disclaims 
      any obligation or undertaking to disseminate any updates or revisions to 
      any forward-looking statements contained herein to reflect any change in 
      the Company’s expectations with regard 
      thereto or any change in events, conditions or circumstances on which 
      any such statements are based. As a result of these factors, the events 
      described in the forward-looking statements contained in this release 
      may not occur.
    
    
      FULL ANNOUNCEMENT AND FINANCIAL INFORMATION CAN BE VIEWED AT: www.medgenics.com