TORONTO, Dec. 21 /CNW/ - Microbix Biosystems Inc. (TSX:MBX) today
announced results for the fiscal year ended September 30, 2007.
"Consistent with our long-term strategic plan, we continued to make
significant investments in our three major products, and I'm pleased to report
that progress was achieved on all fronts," said William J. Gastle, CEO of
Microbix. "Any one of these projects, if successfully commercialized, would
provide shareholders with a substantial return on their investment as each has
the potential for annual sales in the hundreds of millions of dollars."
Microbix' strategy over the past five years has been to use cash from its
core virology business to help fund the development of this product pipeline.
As well, the Company focuses on new products that allow it to leverage its
existing skills and expertise, facilities, and technology platforms. As Mr.
Gastle states, "The next key hurdle for Microbix is to fund Urokinase, and
once that milestone has been achieved, the company can return to profitability
Highlights for fiscal 2007 included:
Record sales were achieved for the core virology business, with
year-over-year growth of 14 per cent. Solid base business performance is
expected to continue, with 20 per cent growth anticipated in fiscal 2008.
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.
The Company recently signed two Letters Of Intent with companies outside
North America which are interested in licensing its influenza vaccine yield
enhancement technology on a non-exclusive basis. The first definitive
agreement is now being negotiated, and Microbix anticipates agreements will be
established early in 2008.
VIRUSMAX(TM) has now been granted patents in the U.S., Canada, India and
Australia, and patents are pending in a number of other countries. During the
year, the international, peer-reviewed scientific journal Vaccine reported on
VIRUSMAX(TM), and the technology also attracted a great deal of interest at a
conference in Toronto attended by delegates from all over the world.
Semen Sexing Technology(TM) (SST(TM))
The first milestone, reported last year, was the signing of agreements
with a number of artificial insemination companies based in Europe, North
America and Australasia. This year, the Company announced a second major
milestone when it discovered the specific proteins that allow female-producing
and male-producing sperm cells to be separated. Microbix is currently filing
patent applications in all major markets.
Also during fiscal 2007, Microbix announced that it had entered into an
agreement to license SST(TM) to a major commercial breeder in China. The
Chinese company - the Animal Fine Breeding Station of Hebei Province - is one
of the leading suppliers to the livestock industry and will become the
exclusive distributor of SST(TM) in that country.
Microbix continues to make progress towards financing Urokinase.
Concurrently with the closing of this financing, the Urokinase assets will be
rolled into a newly created private corporation. The funds being raised for
Urokinase would be used to conduct the clinical trials and proceed to
commercialization. Upon completion of this financing, Microbix would
immediately return to profitability.
Microbix raised $6.825 million in equity through a brokered private
placement financing. This private placement had significant institutional
investor participation. The funds will be utilized to continue the growth of
the core business. Specifically, the proceeds will be used for the expansion
of the core manufacturing operations and to fund the development of SST(TM).
For the year ended September 30, 2007, the Company recorded a net loss of
$2,711,810 or 7 cents a share compared to a loss of $2,092,022 or 6 cents a
share in fiscal 2006. The $400,000 licensing fee obtained from the Chinese
commercial breeder was recorded as deferred revenue until all deliverables in
the agreement are complete. The fourth quarter loss was $814,001 or 2 cents a
share compared with a loss of $699,975 or 2 cents a share in 2006. Cash flow
was positive for both the quarter and full year compared to 2006.
Quarter Ended Sept 30 Year Ended Sept 30
2007 2006 2007 2006
Revenue $1,171,731 675,407 4,048,826 3,644,143
Net Income (Loss) $ (814,001) (699,975) (2,711,810) (2,092,022)
Net Income (Loss)
per share $ (0.02) (0.02) (0.07) (0.06)
Cash Flow $ 90,215 (664,453) 236,418 (853,288)
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: 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