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Algene Biotechnologies Corporation Announces Its Third Quarter Results

MONTREAL, Nov. 21 /PRNewswire/ -- Algene Biotechnologies Corporation (Montreal: AGN.B) announces that in the first three quarters of the 1996 fiscal year, Algene Biotechnologies Corporation has generated revenues or $2,424,882 as compared with $699,637 during the same period in 1995. Profits were $417,829 over the last nine months, as compared with $208,102 for the first nine months of 1995.

The variations in revenues and profits for this period are to a large extent the result of the strategic alliance signed on schizophrenia with Janssen Pharmaceutica N.V., as well as of the substantial increase in research and development (R&D) costs during the first nine months of 1996. These costs were $2,711,556 as compared with $882,938 during the corresponding period in 1995. This significant progression corresponds to a 207% increase in the budget allocated to R & D activities.

Revenues during the third quarter were $933,010, although the Company reported a loss of $83,582 for that same period. The loss can be directly attributed to the increase in R & D efforts, which led to costs of $1,250,534 for the three months ending on September 30, 1996. These costs were $235,922 during the corresponding period in 1995, thus representing an increase of over $1 million.

Current R & D Activities

Whilst significantly increasing its R & D activities, Algene was able to reach concrete scientific results in its current research programs, as well as to diversify its interests by launching new research programs.

Algene recently announced that it had identified five areas in the human genome that could contain genes likely to cause Alzheimer disease. The company has now begun cloning experimentation to identify candidate genes located in these genomic areas. Concurrently, scientists at Algene are preparing for gene sequencing experimentation to circumscribe genetic mutations in these candidate genes. As a result of these developments, Algene granted a research contract on Alzheimer disease to the Centre hospitalier Cote-des-Neiges for an amount that could reach the $5.3 million mark as part of a joint scientific project that may extend to the end of 1997.

Within the framework of the strategic alliance with Janssen Pharmaceutica N.V., the R&D on the genetics of schizophrenia is proceeding according to schedule. The sampling phase is now completed. The genetic mapping phase began just recently and it should be completed in early 1997.

The R&D on the genetics of Parkinson's disease and migraine is now at the sampling phase. These new programs should allow the company to capitalize on its technology platform, with the subsequent objective of making the most of this platform for gone discovery in other diseases.

Corporate Developments

To follow through with the implementation of its strategic development plan in a systematic fashion, Algene has submitted a preliminary prospectus dated October 28, 1996 to issue new Category B restricted shares. The issue ill expire before the end of 1996. This additional financing should provide Algene with an opportunity to complete its current R & D programs, as well as to launch new research programs, whilst also further developing its technology platform.

On October 24, 1996, Mr. Claude E. Forget joined Algene's Board of Directors. In the last 30 years, Mr. Forget has been involved in the evaluation, planning, transformation and management of health services in Canada. He is currently Chairman of the Board of the Royal Victoria Hospital in Montreal, one of the country's leading medical research university centers. Mr. Forget has also been involved with several organizations in the development of health services around the world, including the World Bank and the Dichtley Foundation in England.

Algene has also recruited new members on its Scientific Advisory Committee (SAC). The SAC is now composed of 10 experts from various fields of immediate interest to Algene.

Algene is also pursuing discussions with putative partners of the pharmaceutical and biotechnology industries for strategic alliances. The objectives of these alliances are to acquire leading-edge genome technology, and to initiate new genetic research programs on other diseases of immediate pharmacological interest.

Algene Biotechnologies Corporation is active in the field of biomedical genetics as applied to the treatment of human diseases. Research and development activities focus currently on genes that cause Alzheimer disease, schizophrenia, migraine and Parkinson disease. The Class B Subordinate Shares of Algene are listed on the Montreal Exchange under the symbol AGN.B.

SOURCE Algene Biotechnologies Corporation
 -0- 11/21/96


/CONTACT: Henri Harland, Vice-president, Corporate Development and Chief Financial Officer, 514-340-3539 or E-Mail: harland@algene.com, or Eric Durand, Director of Corporate Development, 514-340-3539 or E-Mail: ericd@algene.com, both of Algene Biotechnologies Corporation/

(AGN.B.)

CO: Algene Biotechnologies Corporation ST: Quebec IN: MTC SU: ERN

NT-TM -- NYTH131 -- 5625 11/21/96 17:25 EST http://www.prnewswire.com
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Date:Nov 21, 1996
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