QUEBEC CITY, QC, Aug. 20 /CNW/ - Medicago Inc. (TSX-V: MDG), a biotechnology company focused on developing highly effective and affordable vaccines based on proprietary manufacturing technologies and Virus-Like Particles (VLPs), today announced that it has signed a Memorandum of Understanding ("MOU") with Ajanta Pharma Limited ("Ajanta") to discuss and negotiate an agreement to commercialize Medicago's pandemic and seasonal influenza VLP-based vaccines in India and other territories. Ajanta is one of India's fastest growing pharmaceutical companies that has strong relationships with Government health departments, defence services and hospitals. Under the terms of the MOU, the parties will evaluate and select an optimal deal structure with the objective of formalizing a definitive agreement within 90 days.

"We are delighted to be collaborating with Ajanta," said Andy Sheldon, President and CEO of Medicago. "This MOU is consistent with our strategy to provide countries worldwide with a rapid, affordable and effective solution for the supply of vaccines within their borders."

"This potential partnership with Ajanta will provide Medicago with another near-term commercial opportunity to broaden the deployment of our novel pandemic and seasonal influenza VLP vaccines and continue to validate our proprietary plant-based technologies," said Frederic Ors, VP Business Development of Medicago. "We intend to continue to pursue business opportunities of this nature and expand our footprint in regions that lack influenza vaccine manufacturing capabilities."

About Ajanta

Ajanta Pharma Limited is one of the fastest growing Indian pharmaceutical companies. It is a global pharmaceutical company with proven capabilities in the areas of product research, manufacturing & marketing. Its focus is on specialty segments in India and simultaneous opening of newer markets abroad. Ajanta has established strong capabilities in the international market with exports to over 50 countries around the world including countries in Asia, Africa, Latin America and Europe. For more information please visit: www.ajantapharma.com

About Medicago

Medicago is committed to provide highly effective and affordable vaccines based on proprietary Virus-Like Particle (VLP) and manufacturing technologies. Medicago is developing VLP vaccines to protect against H5N1 pandemic influenza, using a transient expression system which produces recombinant vaccine antigens in non-transgenic plants. This technology has potential to offer advantages of speed and cost over competitive technologies. It could deliver a vaccine for testing in about a month after the identification and reception of genetic sequences from a pandemic strain. This production time frame has the potential to allow vaccination of the population before the first wave of a pandemic strikes and to supply large volumes of vaccine antigens to the world market. Additional information about Medicago is available at www.medicago.com.

Forward Looking Statements

This press release contains forward-looking statements which reflect Medicago's current expectations regarding future events. The forward-looking statements involve risks and uncertainties. Actual results could differ materially from those projected herein. Medicago disclaims any obligation to update these forward-looking statements.

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