TORONTO, May 14, 2012 /CNW/ - Microbix Biosystems Inc. (TSX: MBX), a biotechnology company commercializing virology and novel biotechnologies, today reported strong financial results for the second quarter of fiscal 2012. For the quarter ended March 31, 2012, Microbix reported revenues of $1,896,947 an 8% increase from $1,761,905 for the same quarter in 2011. In the first half of the fiscal year, sales were up 31% compared to the same period in 2011, due primarily to growing customer demand. The improvement in sales for the first half of the fiscal year is particularly noteworthy given the strength of the Canadian dollar measured against the currencies that most of its customers use to conduct trade, namely the US dollar and the Euro.
Cost of Sales was $933,275 for the quarter compared to $799,463 in 2011 due to higher sales. Operating Expenses were $1,573,097 compared to $1,591,528 for the same period in 2011. These results have contributed to a lower operating loss for the quarter of $609,425compared to $629,086 for the same quarter last year. Changes in manufacturing processes implemented during the period are expected to generate significant cost efficiencies in the future.
Pipeline Products Advance
Microbix and Zydus Cadila, a global pharmaceutical company, are now negotiating final terms of the definitive agreement for the re-introduction of Urokinase to the US market under the name Kinlytic. Pursuant to the agreement, all costs associated with the launch of this important thrombolytic therapy will be funded by Zydus Cadila, with Microbix receiving milestone payments and royalty payments on all Zydus Cadila sales of Kinlytic.
William J. Gastle, Microbix' Chief Executive Officer, updated investors on the two other pipeline products, which moved closer to final funding agreements. Mr. Gastle said, "We are working with a group of potential investors to raise the funds needed to underwrite the cost of an influenza vaccine facility in a new partner country. The core of this new project will be VIRUSMAX®, Microbix' technology that dramatically increases vaccine production yields. With new funding on the near-term horizon, Microbix has retained its internationally proven management team and the leading engineering and OEM firms to deliver the project. Microbix will offer a turnkey influenza vaccine business model to the host country that seeks to significantly expand their immunization program. The new partner country will receive a WHO compliant cost-competitive flu vaccine site that is capital efficient."
Gastle added, "I am also pleased to tell you that we are in advanced negotiations to complete financing for the final development of LumiSort, our breakthrough product for artificial livestock insemination. We expect to share positive news in the near future. Meanwhile, the work continues on expanding LumiSort's intellectual property. LumiSort holds significant potential value for the Company and management is working to ensure that we maximize shareholder returns."
Please visit www.sedar.com for recent Microbix Biosystems, Inc. filings on its pipeline products and financial information.
About Microbix Biosystems
Microbix Biosystems Inc. specializes in the development of advanced biotechnologies, and markets virology and biological technologies worldwide. The Company has intellectual property for a large market biotherapeutic 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.
For further information:
Visit www.microbix.com or contact: William J. Gastle, CEO, (416) 234-1624 x 230; or James Long, CFO, (416) 234-1624 x 265.