Sales rise 17% for the Toronto biotech which is now focused on partnering its pipeline
TORONTO, May 13 /CNW/ - Microbix Biosystems Inc. (MBX:TSX), a biotechnology company focused on virology and biological technologies, reported sales for the second fiscal quarter of 2010 of $1.83 million, a 17% increase, and a record sales level for the 20-year-old biotech company. If not for the strong Canadian dollar, sales would have increased by 36%.
The record sales improvement was due to three major developments: First, increased product shipments due to higher capacity at the company's new manufacturing facility, which is now fully operational. Second, higher sales were due to Microbix' newly introduced proficiency test diagnostic product which is used in US hospitals and clinical laboratories to document the accuracy of their lab results before they can receive Medicaid funding. And, third, sales increased due to higher royalty fees, specifically, licensing fees for Microbix' recombinant Rabies Vaccine which, for example, has reduced the transmission of the rabies virus in wild animals to zero throughout the province of Ontario, Canada.
"We are pleased that our strong virology business has delivered record sales and provided funding to continue developing our pipeline products. However, the company has developed its pipeline to the point where we are ready to close on partnership arrangements for urokinase, to manufacture and commercialize this highly effective the clot-busting therapy; for Lumisort(TM), Microbix' new proprietary instrument for semen sexing technology which enables livestock producers to predetermine sex of offspring; and for VIRUSMAX(TM), which increases vaccine yields," said William J. Gastle, Microbix CEO.
"We're succeeding in our business strategy, namely, to focus on creating technology with high value potential and then to partner with larger commercial companies to move that technology to market," Gastle added.
For the second quarter ending March 31, 2010, Microbix reported sales of $1,831,186, a 17% increase from sales of $1,570,204 in the comparative period last year. For the quarter, the company reported a loss of $576,000 compared with a loss of $512,834 in the same quarter last year.
Operating expenses increased $237,000 compared to last year, due to non-recurring interest income on cash generated through an equity raise in 2009 prior to utilizing it in operations. The company's cash position improved to $775,000 at March 31, 2009 compared to $120,900 at December 31, 2009, due mainly to the equity raise that occurred in the second quarter.
second quarter ended 6 months ended
March 31 March 31
2010 2009 2010 2009
revenue 1,831,186 1,570,204 3,057,724 3,176,727
net loss (576,177) (512,834) (1,316,207) (1,096,502)
net loss per share (0.01) (0.01) (0.02) (0.01)
cash flow 653,930 (244,708) 186,542 (2,606,777)
Microbix Biosystems, Inc. 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 the risks associated with failure to get regulatory approval, and release, of KINLYTIC(TM) for distribution in Canada and other regions of the world; inability to close financing for the Microbix-Hunan project; risks inherent in moving onto new markets or developing and launching new products or engaging new partners; risks associated with commercializing the technologies including sales may not reach sales targets or be made at all, there is no guarantee that the Company will complete development of any technology and if it does that it will perform to commercially exploitable levels, other technologies may emerge before any technology developed by the Company enters the market, royalty rates may not be achievable, markets may not sustain demand for any product should world economies shift significantly, market utilization rates may not be reached, market value of products may vary, product launch dates and market utilization timetables may not be met; risks associated with failure to develop and commercialize SST; non-adoption of SST; competition in Microbix' core business; general economic conditions; risks affecting timely and cost effective construction and operation of the Microbix-Hunan facility; intellectual property risks including challenges to protecting the Company's intellectual property rights, patents may not provide adequate protection of the Company's intellectual property, may not be successfully prosecuted and may be subject to challenge and risks of infringement of third party rights; risks of operating in foreign jurisdictions, including operating in China with its evolving legal and economic infrastructure and the involvement of the Chinese government departments at national, state and local levels in business and economic matters; creating risks associated with various levels of political and economic conditions and other risks including but not limited to, currency exchange rates and restrictions on foreign exchange; high rates of inflation; renegotiation or nullification of existing licenses, permits and contracts; changes in taxation policies; risks associated with repatriation of profits and changing political conditions and governmental regulations; development of competing technologies in all of its business lines, and Microbix' ability to attract and retain qualified employees and management. 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.
SOURCE Microbix Biosystems Inc.
For further information: For further information: Visit www.microbix.com or contact: William J. Gastle, CEO, (416) 234-1624 x 230; James Long, CFO, (416) 234-1624 x 265