Microbix Biosystems Inc. Reports Second Quarter Profit
Published: May 14, 2013
TORONTO, May 14, 2013 -- Microbix Biosystems Inc. (TSX: MBX), a biotechnology company developing innovative biological products and technologies, today reported financial results for its second quarter ending March 31, 2013. Revenue was $2,103,426 compared to $1,896,947 for the same quarter last year, an increase of $206,479. This increase is the result of strong antigen sales in the quarter and ongoing consulting services provided to Zydus under terms of the Kinlytic® license agreement. Operating expenses for the quarter were $849,307 compared to $1,573,097 for the same quarter last year, a reduction of $723,790. This improvement is attributable to the following factors: (1) reassignment of Kinlytic® related costs to cost of goods sold to support development work for Zydus, (2) savings realized from the recent business restructuring, (3) upfront payment from the sale of the Water-for-Injection business. These results contributed to an operating profit for the quarter of $169,570 compared to an operating loss of $609,425 for the same quarter last year.
Vaughn Embro-Pantalony, President and Chief Executive Officer remarked, “I am very pleased to report our first profitable quarter in several years. We have worked very hard to achieve this result and it represents a big step towards our ultimate goal of eliminating our cash burn by generating sustainable profitability and cash flow from operations. Antigen sales recovered nicely from the weak first quarter and are projected to grow on a full year basis. Also, during the quarter we expanded our support of Zydus under the Kinlytic® license agreement.” He commented further, “Our restructuring efforts have contributed to the profitable turnaround and we remain focused on delivering 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, “We are making good progress on the Kinlytic® project with Zydus in preparation for a meeting with the FDA in the fall when we will present our plan for returning the drug to the U.S. market. Also, we are in the final stages of securing funding for the biological development phase of the LumiSort® venture, which we expect to close in the near future. Finally, we continue to pursue ways to maximize the value of our Virusmax technology, recognizing the achievement of this goal may be longer term.”
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 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.
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
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