Microbix Announces Third Quarter Results

    Solid Progress in Developing Potential Blockbuster Products

    TORONTO, Aug. 14 /CNW/ - Microbix Biosystems Inc. (TSX:MBX) today
announced its third quarter results for fiscal 2007. The Company showed solid
progress in all areas of the business, with its potential blockbuster products
achieving several important milestones and its core virology business
experiencing strong growth.
    "We continue to invest in our three major biotechnology products as we
move them closer to market, and we continue to support this pipeline
development with the cash flow, in-house expertise, and facilities of our core
business," said Microbix CEO William J. Gastle.
    Highlights of the three months ended June 30, 2007, included:

    Vaccine Technology

    The Company's vaccine yield enhancement discovery and proprietary
technology, now trademarked VIRUSMAX(TM), was featured in Vaccine, an
international, peer-reviewed scientific journal. Also during the quarter, the
U.S. Patent and Trademark Office indicated that it would allow a patent on the
process. Patents in Canada and India have already been allowed. Subsequent to
the end of the quarter, Australia also indicated that it would issue a patent.
    Microbix is in licensing discussions with potential partners, and there
is good industry interest in the technology. The Company conservatively
estimates that the world market for VIRUSMAX(TM) could be more than
$100 million a year.

    Semen Sexing Technology

    Microbix announced during the third quarter that it had made a major
discovery - the ability to identify the specific proteins that allow
female-producing and male-producing sperm cells to be separated. This is the
first time ever that sex-specific proteins have been positively identified.
Microbix is currently filing patent applications in all major markets.
    The discovery, as well as the development of monoclonal antibodies to be
used in the process, is an important breakthrough in commercializing the
Company's Semen Sexing TechnologyTM (SSTTM).
    Late in the third quarter, the Company announced that it entered into an
agreement to license SSTTM to a major commercial breeder in China. Microbix
received the first milestone payment from the breeder in August.
    A number of artificial insemination (AI) companies, representing 13 per
cent of the $2.5 billion global AI market, have already agreed to participate
in field trials, and the launch of the product is expected to occur in late
2008 or early 2009. The worldwide AI market is now $2.5 billion, and Microbix
estimates that sexed semen will garner a premium price of approximately 2
1/2 times the price of the unsexed product. Microbix will receive a royalty of
15 per cent of sales in addition to fees for the SSTTM components.


    Microbix expects to conclude due diligence and close a financing
agreement soon. The funds will be used to conduct clinical trials and proceed
to commercialization.
    The market potential for a new specific Urokinase-based thrombolytic drug
is in excess of $100 million annually. At the same time, the development risk
is relatively low as other Urokinase products have been on the market for many

    Core Business

    The core business continued to perform well during the quarter, growing
15% over the year-earlier period. Microbix is now planning to expand the
manufacturing facility in order to accommodate increased demand for virology
products, water-based products and viral vaccine contract manufacturing.

    Results of Operations

    For the three months ended June 30, 2007, the Company recorded a net loss
of $940,629 compared to a loss of $707,683 for the same period in fiscal 2006.
For the year to date, the current period loss was $1,897,809 compared to a
loss of $1,392,048 in the previous fiscal year. Cash flow was positive for
both the quarter and nine month periods compared to fiscal 2006.

                                Third Quarter Ended       9 Months Ended
                                      June 30                 June 30

                                  2007        2006        2007        2006
    Sales                      1,126,716     978,582   2,877,095   2,968,736

    Net Profit (loss)           (940,629)   (707,683) (1,897,809) (1,392,048)

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

    Cash Flow                    440,075    (493,205)    146,203    (188,835)

    "The spend was within our expectations as we continue to push our major
products through the pipeline and work to build long-term value for our
shareholders," said Gastle.

    Microbix is a company specializing 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
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.

    %SEDAR: 00004220E

For further information:

For further information: visit www.microbix.com or contact: William J.
Gastle, Chairman and CEO, (416) 234-1624 x 230; Robert Stephens, PR POST,
(416) 777-0368

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