Microbix Continues Progress in Implementing Strategic Plan in Q3



    TORONTO, Aug. 13 /CNW/ - Microbix Biosystems Inc. (TSX:MBX) today
announced results for the third quarter ended June 30, 2008, and outlined
steps that have been taken in implementing its strategic business plan.
    In his remarks reviewing the third quarter, William J. Gastle Microbix
CEO stated, "The China project announced in the quarter is the opportunity to
install VIRUSMAX(TM) in one of the largest influenza vaccine manufacturing
facilities to be built in the world. This project is expected to have a major
long term impact on Company revenues and profit beginning in 2009."
    Mr. Gastle went on to say, "We are enjoying an increase in sales and have
increased manufacturing capacity to complement increasing demands of the
commercial activities of the major value drivers in our business."

    
    Operating Highlights

    Virology Products

    -   The base Virology Products business performed well, with sales up
        25 percent in the third quarter and up 25 percent in the first nine
        months of fiscal 2008 compared to the same periods a year earlier.

    VIRUSMAX(TM)

    -   The major highlight announced in the third quarter is the
        unprecedented influenza vaccine agreement signed with the Hunan
        Government in China. It is a very large deal for your Company, as it
        represents the opportunity to install the use of VIRUSMAX(TM) in one
        of the largest influenza vaccine manufacturing facilities to be built
        in the world. The joint venture has received a commitment for more
        than 100 million doses from the Province of Hunan - a contract worth
        in excess of $500 million, representing one of the largest single
        commitments for flu vaccine ever made. The economics of this deal are
        impressive and are a significant breakout from the confines of the
        existing market. Specifically, it ensures a royalty rate that
        reflects the value of a large and new market that will all be
        exclusive to this facility.

    -   Additional opportunities are being presented to the Company to
        further utilize the Virusmax(TM) Technology. Letters of Intent
        previously announced have led to evaluations of the technology that
        may lead to definitive agreements. New LOI's are anticipated.

    Urokinase

    -   Negotiations to bring Urokinase back to the medical treatment market
        have continued with ImaRx during the quarter. After a significant
        long term effort to finance Urokinase, the agreement with ImaRx
        announced in April was terminated as a result of uncertainty
        surrounding the pronouncement by the FDA that extended dating for the
        product is approvable but more analysis was required. ImaRx and
        Microbix both agreed to strike a new arrangement that would take into
        consideration the issues associated with the product and other assets
        of interest to Microbix. These discussions are expected to be
        complete in this quarter.

    SST(TM)

    -   Progress is being made on the semen sexing technology development
        reflected in new provisional patents submitted in the quarter that
        represent a broadening of the intellectual property for this
        technology marking an internal milestone for the project. The
        milestones in the immediate future are to complete our investigation
        of sex specific proteins, file additional patents and complete in
        vitro fertilization testing.

    Results of Operations
    

    For the three months ended June 30, 2008, the Company recorded a net loss
of $945,111 compared to a loss of $940,630 for the same period in fiscal 2007.
For the year to date, the current period loss was $3,227,795 compared to a
loss of $1,897,809. Cash flow was negative for the quarter, but positive for
the year to date, reflecting the equity issue in the first quarter.
    Microbix made a significant investment of cash in the first three
quarters this year as the Company has endeavoured to commercialize two major
technologies in the pipeline - VIRUSMAX and Urokinase. The loss was expected
because of these ongoing commercialization activities as well as the research
associated with SST(TM). As most of Microbix' upfront investment associated
with the VIRUSMAX and Urokinase commercial activities is completed, the
ongoing burn rate has been significantly reduced beginning in the fourth
quarter.

    
                                Third Quarter Ended      Nine months ended
                                -------------------      -----------------
                                      June 30                 June 30
                                      -------                 -------
                                  2008        2007        2008        2007
                                  ----        ----        ----        ----
                                   $           $           $           $
    -------------------------------------------------------------------------
    Sales                      1,517,150   1,126,716   3,733,773   2,877,095
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Net Profit (loss)           (945,111)   (940,630) (3,227,795) (1,897,809)
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Net Profit (loss) per share    (0.02)      (0.02)      (0.06)      (0.05)
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Cash Flow                 (1,079,493)    440,076   2,751,746     146,203
    -------------------------------------------------------------------------
    

    Microbix specializes in the development of biological technologies and
commercializing them through global partners. The Company has intellectual
property in large market biotherapeutic drugs, vaccine technologies and animal
reproduction technologies. Established in 1988, Microbix is headquartered in
Toronto.

    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,
without limitation, the risks associated with: failure of the parties
including failure to obtain the funds required under the agreement with the
Hunan Government to finance the venture; risks associated with the ability to
license Vaccine Technology to industry; failure to develop and commercialize
Urokinase on a timely basis or at all; risks associated with failure to
develop and commercialize SST; and intellectual property risks such as failure
to protect intellectual property rights or infringement of third party
intellectual property rights. These forward-looking statements represent the
Company's judgment as of the date of this press release. Additional risks and
uncertainties related to ImaRx can be found in its filings with the U.S.
Securities and Exchange Commission. The Company disclaims any intent or
obligation to update these forward-looking statements.





For further information:

For further information: visit www.microbix.com or contact: William J.
Gastle, CEO, Microbix Biosystems Inc., (416) 234-1624 x 230; James Long, CFO,
Microbix Biosystems Inc., (416) 234-1624 x 265

Organization Profile

Microbix Biosystems Inc.

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890