Microbix Reports 15% Increase In Virology Product Sales In 2012

Urokinase, Vaccine Venture, and LumiSort Update

TORONTO, Dec. 28, 2012 /CNW/ - Microbix Biosystems Inc. (TSX: MBX), a life sciences company commercializing novel virology, biologic and animal reproduction biotechnologies, today reported financial results for the fourth quarter of fiscal 2012.  For the quarter ended September 30, 2012, Microbix reported revenue of $1,884,801, a 12% decrease from $2,137,782 for the same quarter in 2011. Full year revenues were $6,669,789, an increase of 7% compared to $6,228,292 in 2011, as a result of continued growth in customer demand.  Total expenses for the quarter were $1,149,990 compared to $1,204,444 for the same quarter in 2011.  Total expenses for the year were $5,391,611 compared to $5363,847 in 2011.  The operating loss for the quarter was $549,043 compared to $457,497 for the same quarter last year, while the full year operating loss was $2,636,800 compared to $2,566,094 in 2011.

Vaughn C. Embro-Pantalony, President and Chief Executive Officer remarked, "I am very encouraged by the strong underlying growth in virology product sales of 15% in 2012.  However, lower contract sales and higher expenses during the year resulted in a slight increase in operating losses compared to last year.  Our objective in 2013 is to drive the Company towards profitability by continuing to grow revenues, carefully managing expenses, and concluding the partnering of LumiSort, our semen sexing technology, and the Vaccine venture incorporating VIRUSMAXTM our virus yield enhancement technology."

Embro-Pantalony also provided an update on the pipeline products, "In the fourth quarter we signed the urokinase license agreement with Zydus Cadila, and now a joint project team is finalizing our detailed plan to return the product to market within 36 months. We are in advanced discussions with potential investors interested in locating our influenza vaccine manufacturing venture to a new country; and we are also making good progress towards partnering the next phase of our LumiSort development program with initial funding commitments secured.  I will provide further updates on both of these opportunities as matters progress."

Please visit www.sedar.com for recent Microbix Biosystems, Inc. filings on its pipeline products and financial information.

Financial Highlights

       3 months  ended Sept 30             year  ended Sept 30
    2012   2011   2012   2011
                 
Revenue $ 1,884,801     2,137,782     6,669,789      6,928,292
                 
Net loss $ (549,043)   (457,497)   (2,636,800)   (2,566,094)
                 
Net loss per share $      (0.01)           (0.01)          (0.04)            (0.05)
                 
Cash Flow $ (334,964)       108,783         103,187         108,784

About Microbix Biosystems

Microbix Biosystems Inc. specializes in the development of advanced biotechnologies, and markets virology and biological technologies worldwide. The Company owns intellectual property for a approved biopharmaceutical drug, a vaccine technology and an animal reproduction technology. Microbix supplies customers in the U.S., Europe, and Asia. Established in 1988, Microbix is headquartered in Toronto.

Disclaimer

This press release contains forward-looking statements which are subject to risks and uncertainties that could cause actual results to differ materially from those set forth in the forward-looking statements including the risks associated with development projects, operations in foreign jurisdictions, risks associated with engineering and construction generally, risks associated with production including control over costs, quality, quantity and timeliness of delivery of products, foreign currency and exchange rate risk, and risks of raising capital on acceptable terms or at all.  These forward-looking statements represent the Companies' judgment as of the date of this press release. The Company disclaims any intent or obligation to update these forward-looking statements. 

SOURCE: Microbix Biosystems Inc.

For further information:

Visit www.microbix.com or contact: Vaughn C. Embro-Pantalony, CEO, (416) 234-1624 x 350; or James Long, CFO, (416) 234-1624 x 265.