Company Provides Update on Product Pipeline
TORONTO, Feb. 14, 2013 /CNW/ - Microbix Biosystems Inc. (TSX:MBX), a biotechnology company developing innovative biological products and technologies, today reported financial results for the first quarter of fiscal 2013 ending December 31, 2012. Revenue was $904,413 compared to $1,474,511 for the same quarter last year, a shortfall of $570,098. This decrease in quarterly revenue is attributable to two factors: (1) normal fluctuations in demand for viral antigens of $236,251 that are expected to generate sales growth in the remainder of 2013; and (2) decreased water sales of $323,542 that were the result of reduced production capacity. Operating expenses for the quarter were $1,111,272 compared to $1,159,534 for the same period last year, while the operating loss for the quarter was $701,660 compared to $517,746.
Vaughn Embro-Pantalony, President and Chief Executive Officer remarked, "Viral antigen sales typically fluctuate as customers adjust their order patterns for disease incidence and current testing needs. Our antigen sales are projected to return to normal levels in the coming months and ultimately experience growth on a full year basis." He commented further, "Reduced sale of water products was caused by supplier production restrictions. We worked closely with customers to maintain supply until the sale of our water business to Irvine Scientific closed in January." He added, "This divestment will significantly upgrade the gross margin of our business and our use of working capital. Beyond the divestment of our water business, we have also implemented a comprehensive productivity improvement program to reduce cash costs and streamline working capital investment, which we expect will deliver sustainable cash flow from operations by September 30, 2013 the end of our fiscal year."
Mr. Embro-Pantalony also provided an update on the pipeline products, "Early in the first quarter we launched the Kinlytic (urokinase) project with Zydus Cadila, striking a joint project team and completing the project plan to return Kinlytic to the U.S. market. The joint team has held extensive meetings at Zydus' offices in Princeton, N.J. and Ahmedabad, India and is preparing to meet with the FDA in the fall of 2013 to present the plan for returning the drug to the U.S. market. Discussions continue with potential investors interested in locating our VIRUSMAX-based influenza vaccine manufacturing facility in a new country and region of the world where demand is best satisfied through increased domestic capacity. Finally, we continue working hard to partner the next phase of the LumiSort development program by building on the initial funding commitments already secured."
Please visit www.sedar.com for recent Microbix Biosystems, Inc. filings on its pipeline products and financial information.
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About Microbix Biosystems
Microbix Biosystems Inc. specializes in the development of advanced biotechnologies, and markets virology and biological technologies worldwide. The Company owns intellectual property for a approved biopharmaceutical drug, a vaccine technology and an animal reproduction technology. Microbix supplies customers in the U.S., Europe, and Asia. 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 development projects, operations in foreign jurisdictions, risks associated with engineering and construction generally, risks associated with production including control over costs, quality, quantity and timeliness of delivery of products, foreign currency and exchange rate risk, and risks of raising capital on acceptable terms or at all. These forward-looking statements represent the Companies' 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:
Visit www.microbix.com or contact: Vaughn C. Embro-Pantalony, CEO, (416) 234-1624 x 350; or James Long, CFO, (416) 234-1624 x 265.