TORONTO, Feb. 13 /CNW/ - Microbix Biosystems Inc. (TSX:MBX) today
announced results for the first quarter ended December 31, 2007.
- Microbix raised $6.825 million in equity through a brokered private
placement financing with significant institutional investor
participation. The funds will be used to expand its manufacturing
plant and to accelerate development of SST(TM).
- The base virology business recorded another solid quarter, with sales
up 54% over the same period a year earlier.
- The Company's VIRUSMAX(TM) technology was granted patents in the U.S.
and Australia (patents were already in place in Canada and India).
Microbix is now in a strong position to partner with vaccine
producers, and it is currently attracting global interest. To date,
letters of intent for licensing have been signed with two vaccine
- Microbix CEO William J. Gastle met with high-ranking officials in
China to formalize the licensing agreement for the Company's SST(TM)
technology and to discuss other business opportunities. As announced
earlier, the Animal Fine Breeding Station of Hebei Province has
agreed to become the exclusive distributor of SST(TM) in that
Subsequent to the Quarter:
Microbix and ImaRx Therapeutics, Inc. (Nasdaq: IMRX) announced they had
signed a Letter of Intent under which Microbix will manufacture an
FDA-approved urokinase drug for ImaRx (currently marketed under the brand name
Abbokinase(R)) which has been used to treat pulmonary embolism for over 20
years in the U.S.
ImaRx intends to transfer the manufacturing process and NDA (New Drug
Approval) to Microbix and begin purchasing the drug from Microbix as its
existing inventory is depleted in approximately two years. ImaRx currently
generates about $3 million in sales of Abbokinase per quarter, and this is
projected to grow once a long-term supply is established with Microbix.
The ImaRx deal will shorten Microbix' timeline to commercial production
of new indications, including catheter management, oncology and ophthalmology,
due to the acquisition of the Abbokinase NDA.
The SST(TM) development team has been building on its findings relating
to the family of proteins that are determinative for X and Y
chromosome-bearing sperm. Recent discoveries indicate additional proteins have
been identified which will expand the intellectual property estate. Microbix
will invest more time building a solid patent foundation. In vitro
fertilization studies are to progress as planned. Initiation of field trials
will await the outcome of the further work now underway.
Consistent with its long-term strategy, Microbix continued to make
significant investments in developing its three major products and in
expanding its core production facilities.
Sales for the first quarter were $1,036,851 - an increase of 54% over the
first quarter of fiscal 2007. The quarter-over-quarter increase in the value
of the Canadian dollar, compared to the U.S. dollar, reduced sales by more
than 10%. The net loss for the quarter was $1,012,730 or 2 cents a share
compared to a net loss of $482,127 or 1 cent a share in the first quarter last
year. The increased loss resulted from costs associated with the equity
financing, the ongoing Urokinase financing and maintenance of the facility,
meeting with potential partners for the VIRUSMAX(TM) technology, and expanding
the SST(TM) development. Cash flow was positive at $5,602,173 compared to a
negative amount of $301,667 a year earlier. This change resulted from the
equity issue during the quarter.
The ongoing expenses will be significantly reduced upon financing
For the 3 Months Ended Dec. 31
Sales $1,036,851 $672,484
Net Profit (Loss) (1,012,730) (482,127)
Net Profit (Loss) per share (0.02) (0.01)
Cash Flow 5,602,173 (301,667)
"We now have a solid cash position along with the scientific expertise to
achieve what we have set our sights on," said Mr. Gastle. "Commercialization
of any one of our major products would be a significant win as each has the
potential for annual sales in the hundreds of millions of dollars."
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 develop and commercialize Urokinase,
inability to complete financing, non-adoption of the catheter clearing
product, non-adoption of the drug combination, resistance to business model
for commercialization and implementation; risks associated with
commercializing the technologies; and risks associated with the efficacy of
the drug combination in cancer treatment or catheter clearance product; risks
associated with the ability to license Vaccine Technology 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 statements.
For further information:
For further information: William J. Gastle, CEO, Microbix Biosystems
Inc., (416) 234-1624 x 230; James Long, CFO, Microbix Biosystems Inc., (416)
234-1624 x 265