Press Releases

BioMS Medical Announces 2002 Year-End Results

Edmonton, Alberta, May 20, 2003 – BioMS Medical Corp (TSX:MS), a leading developer in the treatment of multiple sclerosis (MS), today announced fourth quarter and year-end results for the year ended December 31, 2002.

"Our efforts to build a strong, well-capitalized company with drug development expertise and solid commercial potential have been successful.” said Mr. Kevin Giese, President of BioMS Medical. “The year ahead will be an important and exciting one at BioMS as we begin to put the final pieces of our current strategic plan in place.

”The mission of BioMS is to provide an effective treatment for Chronic Progressive Multiple Sclerosis (CPMS). MS affects more than two million people worldwide, with 50% of this population suffering from CPMS. More than US $2.3 billion is spent annually on therapeutics for MS, growing to $4 billion by 2006. Few of these therapeutics are effective or approved for the treatment of CPMS, leaving half of the MS population with unsatisfactory medical options.

Financial Highlights

The consolidated net loss for the twelve months ended December 31, 2003 was $7.8 million or $0.19 per share compared with a consolidated net loss of $4.8 million or $0.24 per share for the previous year. The increased loss in 2002 resulted primarily from increased investment in research and development related to MBP8298 and HYC750. Total consolidated expenses for the twelve months ended December 31, 2002 were $8,345,640 as compared with $5,235,216 in the previous year. The largest contributors to the increase were planned expenses related with the continued development of MBP8298. In 2002, expenses related to the Company’s direct research and development efforts accounted for $5,004,242 or 60% of all expenses as compared with $3,089,323 or 59% in 2001. The increased costs were the result of toxicology studies on MBP8298 as well as preliminary work on the design of the next phase of human clinical trials for MBP8298 and HYC750.

During the year the Company strengthened its cash position through a private placement for gross proceeds of $615,000 and from the exercise of warrants for gross proceeds of $2,635,008. The Company also reported interest revenue of $542,593 for the twelve-month period ended December 31, 2002, as compared to $457,954 for the previous year. As at December 31, 2002 cash and short-term investments totaled $23,860,849 as compared to $25,799,445 at December 31, 2001. The company has sufficient cash to cover the expected costs of the next clinical trials in Canada for MBP8298 and HYC750.

Operational Highlights

In 2002, BioMS management focused on developing a cautious and well-planned strategy for achieving regulatory approval of MBP8298. As a result of a thorough consultation process, the Company has determined that conducting a pivotal human clinical trial in Canada is within the means of BioMS and is the most prudent and efficient course.

During the year, BioMS also undertook to leverage the core management expertise originally assembled to develop the MS therapy in order to broaden the Company’s therapeutic portfolio. In September, 2002 a new Emerging Technologies Division was created, headed by Mr. Richard Brown, Vice-President, to oversee the development of newly acquired technologies. This division will be responsible for the licensing and development of additional novel technologies from the Canadian research community.
The first addition to BioMS’s pipeline through this initiative was HYC750, a new platform technology licensed from the University of Alberta that involves a method for mobilizing hematopoetic cells in humans. HYC750 has a multitude of potential uses, such as a means to reduce the length and severity of side effects arising from cancer treatments. The Company estimates the market potential for effective products in this area to be in excess of $10 billion annually, with current products accounting for more than $2 billion.

BioMS plans to conduct a phase I human clinical trial to evaluate the safety and potential efficacy of HYC750 for the treatment of cancer therapy related side effects.
It is anticipated that regulatory filings for approval of the trial will be made in 2003. On September 4, 2002, BioMS graduated to the Toronto Stock Exchange (TSX), with its common shares trading under the symbol “MS”.

Notice of AGM

BioMS will be holding its Annual General Meeting on Monday, June 30th, 2003 at 2:00pm at the Delta Edmonton South Hotel and Conference Centre, 4404 Calgary Trail, Edmonton, Alberta.

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. Certain of the assumptions made in preparing forward-looking statements include but are not limited to the following: that dirucotide (MBP8298) will continue to demonstrate a satisfactory safety profile in ongoing and future clinical trials; and that BioMS Medical Corp. will complete the respective clinical trials within the timelines communicated in this release. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.