New manufacturing facility opening in Second Quarter
TORONTO, Feb. 13 /CNW/ - Microbix Biosystems Inc. (TSX:MBX) said today
that despite a challenging year for the biopharmaceutical industry, it has
maintained its focus and continued its advance toward the ultimate goal of
sustained profitability. The Company was announcing results for the first
quarter ended December 31, 2008.
In a news release today, William J. Gastle, CEO of Microbix said "the
Company has improved the fundamentals of its core business and we are
approaching major milestones in our product pipeline. We are waiting for the
FDA to authorize release of Kinlytic inventory, our Urokinase product, we are
in discussions with potential pharma partners for our Hunan (China) influenza
vaccine business and we expect to provide guidance on the SST program as we
near the end of the expanded sex specific protein investigation described in
First Quarter Highlights
Growth was robust in the first quarter with sales improving over 50 per
cent compared to the same quarter last year. "We exceeded our sales target in
the first quarter," Mr. Gastle continued "and we are on a path to meet or
exceed projections for this fiscal year. The Company will open its new
facility in Mississauga, Ontario in March 2009 with significantly improved
The Company is collaborating with a major firm to evaluate VIRUSMAX in
their influenza vaccine manufacturing process in the second quarter.
Preliminary results were promising and the evaluation has moved to the next
phase at the partner's manufacturing facility.
We are pleased with the arrangement to form a manufacturing joint venture
agreement to build and operate an influenza vaccine plant in China based on
VIRUSMAX. We are making solid progress towards completing the pre-conditions
that have been set for financing of the Hunan project to occur. The Company is
working with the Hunan Provincial Government and now also Chinese Central
Government organizations to complete the financing.
Semen Sexing Technology (SST)
The SST program has focused on executing the program's strategy to hold a
comprehensive intellectual property position for sex-specific proteins on
sperm cells. "We are approaching an important juncture in the completion of
this phase of the work", said Mr. Gastle. "Once reached, we will be able to
provide specific guidance on the timelines through field trials and to
The Company acquired all Urokinase assets from ImaRx Therapeutics, Inc.
of Tucson, Arizona, (Nasdaq: IMRX) in September 2008. These assets included
ImaRx' remaining Urokinase inventory as well as the regulatory file for the
product (formerly known as Abbokinase(R), now rebranded as Kinlytic(R)), key
raw materials for Urokinase manufacture, and the corresponding sales and
The acquired inventory is awaiting US FDA release in the coming weeks,
allowing Microbix to begin sales and marketing activities in the second
quarter fiscal 2009.
"We are in the final steps towards completing expansion of our new
manufacturing facility to accommodate increased demand for virology products,"
said Mr. Gastle. "The additional capacity will begin to further expand sales
For the quarter ended December 31, 2008, the Company recorded a net loss
of $583,668 or 1 cent a share compared to a loss of $944,987 or 2 cents a
share in the same period in fiscal 2008. Cash flow was negative for the first
quarter 2009 compared to cash flow positive in fiscal 2008.
The loss for the quarter was due to ongoing investment in SST development
and commercializing the new Urokinase product, Kinlytic. Microbix continues
its corporate restructuring to conserve cash and lower its burn rate in order
to ensure its pipeline products reach their full potential.
"Given the unusually difficult market conditions, Microbix is controlling
its cash flow prudently", said Mr. James A. Long, CFO. "We remain confident in
our ability to operate the business using existing cash flow from our core
business." The planned launch of Urokinase in 2009 would be accretive to the
Company's projected positive cash flows.
Quarter Ended Dec 31
Revenue $ 1,606,523 1,036,851
Net Income (Loss) $ (583,668) (944,987)
Net Income (Loss) per share $ (0.01) (0.02)
Cash Flow $ (2,362,069) 5,603,173
Cash flow was negative at $2,362,069, due mostly to expenditures related
to the expansion of the core business manufacturing facilities and continued
effort on the Kinlytic commercial development. The Company was cash flow
positive $5,603,173, in the same period in 2008 due to an equity financing.
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
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 failure to get authorization to release Kinlytic for
distribution in the US from the FDA, inability to complete financing for the
Hunan China project currently the subject of financing; risks associated with
commercializing the technologies; risks associated with the ability to license
VIRUSMAX to industry; risks associated with failure to develop and
commercialize SST; non-adoption of SST. These forward-looking statements
represent the Company's judgment as of the date of this press release. The
Company disclaims any intent or obligation to update these forward-looking
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