William J. Gastle, Chief Executive Officer, said: "We are pleased to report continued steady financial performance in the Virology business in spite of a challenging global economy and a strong Canadian dollar. Our Virology business continues to be solidly profitable”. He added, "Overall results were hampered by the expenses for LumiSort development and by the unplanned ongoing costs for the China vaccine venture; however, we expect both of these projects to be externally funded in the year ahead.”
Microbix’ operating losses were attributable to the three key pipeline projects, which continued to be funded through virology business profits and augmented by equity financings during the year. The original successful financing of the Hunan Joint Venture was later reversed after Microbix’ Chinese partner unexpectedly refused to honour key terms of the Joint Venture Agreement, signed in 2008. The expenses associated with China were absorbed by Microbix in 2011. Continued investment in LumiSort by Microbix contributed to operating losses in advance of additional partner financing for this project. Finally, Urokinase partnering discussions with potential industry investors continued during the year with Microbix absorbing the related operating costs.
Microbix expects all three pipeline projects will be financed in 2012 as it completes additional partnership agreements to help bring these products to market. Notwithstanding the global financial markets, the industries that the Company’s large market pipeline will serve, continue to seek innovative products and technologies that offer commercial advantages, which is Microbix’ strength.
Other Financial Highlights
For the year ended September 30, 2011, Microbix recorded a net loss of $2,613,740 or 5 cents a share compared to the loss of $2,538,449, or a 5 cent a share loss in fiscal 2010. A loss of $505,142 was recorded in the fourth quarter compared to a profit of $29,716 in 2010. Cash flow for the quarter improved slightly but was still negative; however the burn rate declined $680,619 for the full year primarily due to equity financing.
About Microbix Biosystems
Microbix Biosystems Inc. specializes in the development of biological technologies and markets virology and biological products worldwide. The Company has intellectual property in large market products including an FDA approved biotherapeutic drug, a proprietary vaccine technology and an animal reproduction technology. Microbix supplies customers in the U.S. Europe, and Asia. Established in 1988, Microbix is headquartered in Mississauga, Ontario, Canada.
Disclaimer
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. – 30 –
