Microbix Biosystems Inc. Lawsuit In Germany Dismissed Without Prejudice

TORONTO, March 26, 2015 - Microbix Biosystems Inc. (TSX: MBX) (“Microbix” or the “Company”), an innovator of biological products and technologies, announced today that the Court of Dusseldorf, Germany has dismissed its VIRUSMAX® patent infringement lawsuit against Novartis Vaccines and Diagnostics (“Novartis”) without prejudice.

Microbix successfully obtained VIRUSMAX patents in 21 countries between 2006 and 2011 claiming methods for the improvement of virus yields in the manufacture of influenza and related vaccines. In 2010 Novartis filed an Opposition at the European Patent Office (EPO) in Munich against Microbix’ European Patent 1 636 352 B1. The EPO rejected the Opposition at its Hearing in January 2014. The EPO has not yet addressed Novartis’ appeal of its decision.

In July 2014, Microbix filed a lawsuit against Novartis for infringement of its patent in Germany, based on evidence published on the internet by students disclosing material authored by Novartis employees in the US and the UK, which Microbix discovered in November 2013. Microbix endeavoured to obtain further evidence of infringement of the Italian portion of the EPO Patent by filing an additional action against Novartis in July 2014 in the Court of Rome, Italy. The Court of Rome subsequently granted Microbix a Seizure Order, which allowed Court officials to seize Novartis’ regulatory, development and manufacturing records at their Italian manufacturing facilities, in July 2014. Meanwhile, Novartis filed an action in Italy seeking nullification of Microbix’ Italian patent, an action to which Microbix is responding.

Novartis filed multiple motions with the Court of Rome demanding additional confidentiality provisions, which delayed the review of documents by Microbix. The Court of Dusseldorf has dismissed the infringement action without prejudice on March 26. This decision is fully appealable. Microbix’ counsel is completing the examination of Novartis’ records and will determine whether to file its infringement complaint based on the outcome of its review.

Vaughn Embro-Pantalony, Chief Executive Officer of Microbix commented, “We are reviewing today’s decision by the German Court. However, we continue to concentrate on completing the review of the documents that are deemed to be relevant under the Order by the Court of Rome. Today’s decision by the German Court does not impact the ongoing deliberations at the European Patent Office, and we remain confident that we will successfully defend our patent and that the EPO will dismiss Novartis’ appeal.”

Microbix is an innovative Canadian life sciences company with 60 employees and a market capitalization of $50 million. Novartis is a multinational life science company with 130,000 employees and a market capitalization of $200 billion.

About VIRUSMAX®

In 2003 Microbix discovered that up to 50% of influenza virus produced in an egg is attached to debris in the allantoic fluid. Prior to this discovery, the fluid debris was discarded from the process along with the virus by the vaccine industry. Microbix developed a method to capture the virus attached to the debris and thereby increase influenza vaccine manufacturing capacity, which became VIRUSMAX. The US patent was granted in 2007 and the European patent was granted in 2011. The Company owns VIRUSMAX patents in 21 countries as part of its worldwide intellectual property portfolio.

About Microbix Biosystems Inc.

Microbix Biosystems specializes in the research and development of biological solutions, including products for human health applications, namely in the vaccine, therapeutic and diagnostic markets, as well as animal reproductive markets worldwide. The Company manufactures and distributes a wide range of infectious disease antigens to a worldwide customer base. Microbix’ pipeline of innovative technologies and products includes LumiSort, a semen sexing technology for the livestock industries; Kinlytic, a thrombolytic drug with several approved and potential applications including the treatment of life-threatening blood clots; and VIRUSMAX, a proprietary technology for increasing virus yields in the manufacture of influenza vaccine. Established in 1988, Microbix is Mississauga, Ontario-based company listed on the Toronto Stock Exchange under the trading symbol ‘MBX’,

Forward-Looking Information

This news release includes “forward-looking information”, as such term is defined in applicable securities laws. Forward-looking information includes, without limitation, 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, and other similar statements concerning anticipated future events, conditions or results that are not historical facts. These statements reflect management’s current estimates, beliefs, intentions and expectations; they are not guarantees of future performance. The Company cautions that all forward looking information is inherently uncertain and that actual performance may be affected by a number of material factors, many of which are beyond the Company’s control. Accordingly, actual future events, conditions and results may differ materially from the estimates, beliefs, intentions and expectations expressed or implied in the forward-looking information. All statements are made as of the date of this news release and represent the Company’s judgement as of the date of this new release, and the Company is under no obligation to update or alter any forward-looking information.

Please visit www.sedar.com for recent Microbix Biosystems Inc. filings.

For further information, please visit www.microbix.com or contact:

Company Contacts:
Vaughn C. Embro-Pantalony
CEO
(905) 361-8910 x 350
vaughn.embro-pantalony@microbix.com
Charles Wallace
CFO
(905) 361-8910 x 255 charles.wallace@microbix.com
Investor Relations: Stephen Kilmer (647) 872-4849 stephen.kilmer@microbix.com

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