TORONTO, Feb. 20 /PRNewswire-FirstCall/ - Microbix Biosystems Inc. announced that it has raised $500,000 Cdn. in strategic financing to fund the continuing development of its potential blockbuster pipeline projects. Urokinase for cancer therapy and Sperm Sexing reproductive technology both have significant potential markets on an international scale.
Urokinase
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Microbix is collaborating with Angiogen LLC in the development of the cancer therapy that combines urokinase with a second drug. Microbix is the only commercial-scale manufacturer of urokinase, and Angiogen holds U.S. patents for the use of urokinase in oncology.
Microbix and Angiogen are currently seeking financing for formal Phase I and II clinical trials, and several interested parties are now engaged in due diligence. In the interim, the $500,000 announced today will provide sufficient capital to reach this milestone. Phase I trials in the treatment of colorectal cancer should be completed in 2008.
The drug combination has already shown success in patients. Because both of the drugs have been FDA-approved for other indications and are known to be safe, the partners are hopeful that this program will be able to move relatively quickly to market.
Sperm Sexing Technology (SST)
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With strong interest from the artificial insemination (AI) industry, the SST reproductive technology for use in food animal production has successfully completed the first year of a three-year development program. Licensing term sheet agreements have been signed with a number of AI companies for distribution on sexed semen.
Talyor Gilbert, an independent shareholder in Microbix who has also provided debt financing, said he continues to invest in the Company because of the significant commercial opportunities and the fact that management holds significant equity. “As a Chartered Accountant, I watch costs very closely and Microbix runs a lean operation. I’m also impressed with management’s hard-nosed approach. As shareholders, they are focused exclusively on results,” he noted.
The financing announced today is in the form of a 9% convertible debenture in an arms-length transaction with an existing shareholder. The principal amount of the debenture is convertible into common shares at $0.90 per share for a period of 10 years. The Company has existing debentures with the same terms. The transaction is subject to Toronto Stock Exchange approval.
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 including the risks associated with failure to develop and commercialize urokinase, non-adoption non adoption of the drug combination, resistance to business model for commercialization and implementation; risks associated with commercializing the technologies; and risks associated with the efficacy of the drug combination in cancer treatment; risks associated with failure to develop and commercialize SST; non adoption of SST. 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, Chairmanand CEO, (416) 234-1624 x 230