MEDWELL CAPITAL ANNOUNCES THIRD QUARTER 2010 RESULTS

Toronto Stock Exchange Symbol: MWC

EDMONTON, Nov. 10 /CNW/ - Medwell Capital Corp. (TSX: MWC), today announced financial and operational results for the three and nine months ended September 30, 2010.

"During the quarter, we continued to evaluate additional technologies with the objective of identifying and supporting promising healthcare opportunities that require capital and strategic support to realize their full potential. We also continued the process of reducing costs, ensuring we maintain a solid financial base to support our strategic initiatives," said Kevin Giese, President and CEO.

Highlights:

• Medwell Capital's lead investment, Spectral Diagnostics (TSX:SDI), recently achieved a major milestone by enrolling the first patients in its US pivotal Phase III trial of Toraymyxin™ for the treatment of septic shock. Toraymyxin™ directed by Spectral's Endotoxin Activity Assay (EAA™), an FDA cleared assay for use in sepsis, represents a blockbuster market opportunity. Medwell currently owns approximately 40% of the issued and outstanding shares of Spectral.
  
  
• Medwell Capital continued to implement organizational changes in order to focus expenditures on investments and potential investments.  Operating, general and administration expenditures increased for the three months ended September 30, 2010.  Actual cash utilization for the period was $1.3 million.
  
  
• At September 30, 2010, cash and cash equivalents and short-term investments totaled $30.5 million. Technology investments totaled an additional $12.2 million.

Financial Results:

Medwell Capital is reporting results from both continuing and discontinued operations. Continuing operations consist of activities related Medwell Capital as an investment and advisory service provider to the healthcare industry. Medwell Capital's discontinued operations relate to the late stage clinical development program for dirucotide, a drug for the treatment of multiple sclerosis.

The consolidated net loss from continuing operations of the Company for the three months ended September 30, 2010 was $5.2 million or $0.06 per share compared with a consolidated net loss from continuing operations of $1.6 million or $0.02 per share for the same period in the previous year. The consolidated net loss from continuing operations for the nine months ended September 30, 2010 was $8.2 million or $0.09 per share compared with a consolidated net loss from continuing operations of $7.8 million or $0.09 per share for the same period in the previous year. These results include the recognition of an unrealized loss of $2.6 million on Medwell's investments for the three month reporting period and an unrealized loss of $1.1 million on Medwell's investments for the nine month reporting period, due to changes in the fair value of the Company's investments. Medwell Capital's lead investment in Spectral Diagnostics represents approximately 40% of Spectral's issued and outstanding common shares. The closing market price Spectral as at September 30, 2010 was $0.33 per common share compared to $0.41 as at June 30, 2010 and $0.40 as at December 17, 2009 when the investment was made.

Revenue earned from the services agreement initiated with Spectral amounted to $0.3 million for the three months ended September 30, 2010. Interest income earned on funds invested was $0.1 million for the three months ended September 30, 2010, compared to $0.1 million for the same period in the previous year. Revenue earned from the services agreement with Spectral amounted to $0.8 million for the first nine months of September 30, 2010. Interest income earned on funds invested was $0.2 million for the first nine months of September 30, 2010, compared to $0.3 million for the same period in the previous year, due to the decrease in cash and cash equivalents and levels of current prevailing interest rates.

Total consolidated expenses from continuing operations for the three months ended September 30, 2010 were $2.9 million compared with $1.6 million in the three months ended September 30, 2009. Total consolidated expenses from continuing operations for both the nine months ended September 30, 2010 and 2009 were $8.1 million.   The increase over the three month period was due to a combination of factors, the most significant being termination and severance related costs related to ongoing corporate restructuring, increased professional fees related to the corporate restructuring and investments, and loss on disposal of property and equipment for a write off of leasehold improvements related to space reductions commensurate with staff reductions.

The consolidated net loss from discontinued operations for the three months ended September 30, 2010 was $0.3 million or $0.01 per share compared with a consolidated net income from discontinued operations of $11.5 million or $0.13 per share for the same period in the previous year.  Consolidated net income from discontinued operations for the first nine months of 2010 was $0.1 million or $0.01 per share compared with a consolidated net income from discontinued operations of $17.9 million or $0.20 per share for the same period in the previous year.  Upon the conclusion of the MAESTRO-01 clinical trial the Company discontinued the other dirucotide clinical trials, MAESTRO-02 and MAESTRO-03, and completed final collection of data and records.

At September 30, 2010, cash and cash equivalents and short-term investments totaled $30.5 million as compared to $51.4 million at December 31, 2009. At September 30, 2010, the Company had working capital of $29.7 million as compared to $47.5 million at December 31, 2009.  Management estimates that the current working capital is sufficient for the Company to meet its obligations.

As at September 30, 2010 there were 91,008,923 Class "A" common shares of the Company issued and outstanding.

About Medwell Capital Corp.
Medwell Capital Corp. is a Canadian-based service provider in the healthcare industry. For further information please visit www.medwellcapital.com.

This press release may contain forward-looking statements, which reflect the Company'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. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Medwell Capital Corp.
(formerly BioMS Medical Corp.)
Interim Consolidated Balance Sheet
(Unaudited)

		September 30, 2010 $ (Unaudited)		December 31, 2009 $
Assets
Current assets
Cash and cash equivalents		30,119		48,774
Short-term investments		338		2,662
Accounts receivable		172		-
Goods and services tax recoverable		35		37
Other prepaid expenses		320		79
Investments		11,309		-
Assets of discontinued operation		-		771
		42,293		52,323
Property and equipment		74		350
		42,367		52,673
Liabilities
Current liabilities
Accounts payable and accrued liabilities		1,052		358
Liabilities of discontinued operation		147		4,464
		1,199		4,822
Share capital		175,714		175,714
Contributed surplus		12,319		10,937
Accumulated deficit		(146,865)		(138,800)
		41,168		47,851
		42,367		52,673

Medwell Capital Corp.
(formerly BioMS Medical Corp.)
Interim Consolidated Statement of Operations and Comprehensive Income (Loss)
(Unaudited)

		Nine-month period ended September 30,				Three-month period ended September 30,
		2010 $		2009 $		2010 $		2009 $
Revenue Unrealized loss on investments		(1,065)		-		(2,645)		-
Realized gain on investments		12		-		12		-
Contract services		750		-		250		-
Interest		153		306		68		40
		(150)		306		(2,315)		40
Expenses
Operating, general and administrative		6,271		6,064		2,489		1,751
Stock-based compensation		1,382		1,845		-		-
Amortization of property and equipment		112		127		37		42
Loss on disposal of property and equipment		173		-		173		-
Foreign exchange loss		88		79		161		(188)
		8,026		8,115		2,860		1,605
Net loss from continuing operations		(8,176)		(7,809)		(5,175)		(1,565)
Net income (loss) from discontinued operation		111		17,862		(297)		11,513
Net (loss) income and comprehensive (loss) income		(8,065)		10,053		(5,472)		9,948
Basic and diluted net loss per common share - continuing operations		(0.09)		(0.09)		(0.06)		(0.02)
Basic and diluted net income (loss) per common share - discontinued operation		0.01		0.20		(0.01)		0.13
Basic and diluted net (loss) income per common share		(0.09)		0.11		(0.06)		0.11
Basic and diluted weighted average number of common shares outstanding		91,009		91,009		91,009		91,009

Medwell Capital Corp.
(formerly BioMS Medical Corp.)
Interim Consolidated Statement of Cash Flows
(Unaudited)

		Nine-month period ended September 30,				Three-month period ended September 30,
		2010 $		2009 $		2010 $		2009 $
Cash provided by (used in)
Operating activities
Net income (loss)		(8,065)		10,053		(5,472)		9,948
Items not involving cash
Unrealized loss on investments		1,065		-		2,645		-
Realized gain on investments		(12)		-		(12)		-
Stock-based compensation		1,382		1,845		-		-
Amortization of property and equipment		112		127		37		42
Loss on disposal of property and equipment		173		-		173		-
		(5,345)		12,025		(2,629)		9,990
Net change in non-cash working capital items		343		(1,411)		1,215		302
		(5,002)		10,614		(1,414)		10,292
Investing activities
Purchase of investments		(12,504)		-		-		-
Net purchase of short-term investments		2,324		(45)		2,330		(7)
Purchase of property and equipment		(10)		(7)		(4)		-
		(10,190)		(52)		2,326		(7)
Foreign exchange gain (loss) on cash and cash equivalents held in foreign currency		83		1,177		(167)		(373)
Cash (used in) provided by continuing operations		(15,109)		11,739		745		9,912
Cash used in discontinued operation		(3,546)		(45,943)		321		(21,154)
Decrease in cash and cash equivalents		(18,655)		(34,204)		1,066		(11,242)
Cash and cash equivalents - Beginning of period		48,774		87,826		29,053		64,864
Cash and cash equivalents - End of period		30,119		53,622		30,119		53,622
Cash and cash equivalents consists of
Bank accounts		695		1,337		695		1,337
Interest bearing deposits and securities		29,424		52,285		29,424		52,285
		30,119		53,622		30,119		53,622

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