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PreMD Reports First Quarter Results
Date:5/15/2008

from operations.

PreMD will be holding its annual general meeting (AGM) on May 21st, 2008 at 4pm. The meeting will take place at The Design Exchange in the Patty Watt room. The Design Exchange is located at 234 Bay Street in Toronto, Ontario.

Financial Review (All amounts are in Canadian dollars)

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The consolidated net loss for the three months ended March 31, 2008 (Q1 2008) was $1,683,000 or $(0.07) per share compared with a loss of $1,589,000 or $(0.07) per share for the quarter ended March 31, 2007 (Q1 2007).

Total product sales were $9,000 for Q1 2008 compared with $18,000 for Q1 2007. License revenue was $27,000 for Q1 2008, compared to nil for Q1 2007. Product sales reflect direct sales to customers, following the termination of the license agreement on December 28, 2006 with McNeil Consumer Healthcare ("McNeil"). The license revenue in 2008 consisted of the upfront cash payment received in accordance with the licensing agreement with AstraZeneca Pharmaceuticals LP ("AstraZeneca") which was deferred and recognized into income on a straight-line basis over five years.

Research and development expenditures for the quarter decreased by $98,000 to $543,000 from $641,000 in Q1 2007. Significant causes of the variance include:

- a decrease of $23,000 in spending on clinical trials for skin

cholesterol;

- a decrease of $40,000 on product development related to manufacturing

validation for the new cordless reader, as this project nears

completion;

- an increase of $49,000 in legal fees on intellectual property;

- a decrease of $38,000 in salaries and benefits for research personnel

due to reduction in staff; and

- an increase in recovery of research costs of $33,000 related to a

special contract to develop a test for use in the cosmetics industry.

General and administratio
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SOURCE PreMD Inc.
Copyright©2008 PR Newswire.
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