Microbix Biosystems Inc. Announces Core Product Sales Increase In First Quarter, Development Of New High-Value Business Opportunities
TORONTO, Feb. 15 /PRNewswire-FirstCall/ - Microbix Biosystems Inc. today announced a 37 per cent increase in product sales in the first quarter of fiscal 2006, ended December 31, 2005, as the Company continues to develop new higher-value opportunities.
Overall revenues of $1,136,809 were down 5 per cent from last year, due to decreases in contract development business and technology-licensing fees. Since most product sales are denominated in U.S. dollars, the 5 per cent relative decline in the value of the dollar affected the gross profit margin.
Subsequent to the end of the quarter, the Company completed a Cdn $1-million financing agreement that will be used to take a state-of-the- art urokinase-manufacturing facility in Toronto to production levels.
Quarter Ended Dec.31 2005 2004 ------------------------------------------------------------------------- Revenue $ 1,136,809 $ 1,192,704 ------------------------------------------------------------------------- Net Profit (loss) $ (106,052) $ 42,977 ------------------------------------------------------------------------- Net Profit (loss) Per Share $ (0.00) $ 0.00 ------------------------------------------------------------------------- Cash flow $ 7,119 $ 80,404 -------------------------------------------------------------------------
The Company had a net loss of $106,052 in the quarter, compared to a profit of $42,977 in the same period in fiscal 2005, due to options issued, reduced fees and royalties and higher costs related to business development activities on product programs. Cash flow remained positive in the quarter.
"We have seen good progress in the past three months," said William J. Gastle, President and CEO. "We continue to see gains in our core product sales, while at the same time our high value programs have moved further along and closer to commercialization."
After the quarter, Microbix acquired the assets and use of the GMP manufacturing plant from Genpharm Inc., an affiliate of Merck KgaA, to be used for the production of urokinase. Microbix is negotiating for rights to new patented uses of the drug and plans to supply the product to companies with established franchises in target markets.
The Company is expecting initial results soon from the independent clinical evaluation of Microbix's proprietary technology for boosting influenza vaccine-manufacturing yield. Subject to confirmation of the effectiveness of the technology, the Company will outline plans for expanding influenza vaccine production capacity in the market using Microbix's technology.
In addition, Microbix is in licensing discussions with artificial insemination companies relating to its proprietary sperm-sexing technology (SST). With global industry semen sales at an estimated U.S. $3 billion, Microbix expects to realize revenues from royalties on semen sales as well as from sales of the materials used to sex sperm in semen.
Microbix specializes in developing proprietary 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. 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.
Microbix Biosystems Inc.CONTACT: visit www.microbix.com or contact: William J. Gastle, Presidentand CEO, Microbix Biosystems Inc., (416) 234-1624 x 230