TORONTO, Aug. 14 /PRNewswire-FirstCall/ - Microbix Biosystems Inc. today announced a a net loss of $233,477 or $0.01 a share for the third quarter of fiscal 2006, compared to a net profit of $66,567 for the same year-earlier period.
“This year - a transition year - we are making the largest investment ever in our products under development, and this is reflected in our bottom line,” said William J. Gastle, President and CEO of the company. “We will continue to be prudent in terms of how we fund these new technologies, but this is an aggressive program. It is a program to which we are entirely dedicated because it is the major driver of shareholder value.”
During the most recent quarter, the company continued to invest in its new urokinase manufacturing facility in Toronto as well as in the development of its Sperm Separation Technology (SST), Vaccine Enhancement Technology, and a cancer drug combination that destroys solid tumors in humans.
Revenues during the third quarter declined 17% compared to a year ago, primarily as a result of reduced contract development and technology licensing fees and the continued weakness of the U.S. dollar. The company’s core business, Microbix Virology, showed continued strength with sales increasing by 19%.
Quarter Ended June 30 Year To Date 2006 2005 2006 2005 ------------------------------------------------------------------------- Revenue $ 978,582 $ 1,182,588 $ 2,968,737 $ 3,412,253 ------------------------------------------------------------------------- Net Profit (loss) $ (233,477) $ 66,567 $ (616,430) $ 243,719 ------------------------------------------------------------------------- Net Profit (loss) Per Share $ (0.01) $ 0.00 $ (0.02) $ 0.00 ------------------------------------------------------------------------- Cash flow $ (493,205) $ (68,525) $ (188,835) $ 236,559 SST(TM) animal reproduction technology
During the quarter, Microbix announced that it has signed term sheets with several companies, including some of the world’s largest, which provide artificial insemination to the dairy, beef and swine industries. The company will be working with these selected companies in conducting field trials and adapting the technology to large-scale semen production.
The signed term sheets will be the basis for negotiating the definitive agreements. Under these terms, which the company expects to be standard across the industry, Microbix will retain a 15 per cent royalty or minimum unit price, whichever is higher, on sales of all semen treated by SST(TM).
Microbix and the other companies believe that upwards of 80 per cent of all artificial inseminations done in the dairy, swine and beef industries will be with semen sexed with the SST(TM) technology relatively soon after the full-market launch of this technology.
Vaccine Enhancement Technology
Microbix is currently in discussions with animal flu vaccine producers who are interested in licensing this technology. The company’s intention is to work with these partners to demonstrate the performance of this technology in large-scale, commercial manufacturing and then to direct its efforts at the human flu vaccine sector.
It is estimated that worldwide sales of human flu vaccine will be in excess of $2 billion over the next year.
Cancer Drug Combination
Collaborating in the development of a cancer drug that has had encouraging early results, Microbix and Angiogen LLC are now in discussions with potential marketing partners to finance further Phase I and II clinical trials. The drug ‘cocktail’ is composed of urokinase and another drug, both of which are already FDA-approved for other indications. Because of this established safety profile, the clinical risk in this program is significantly reduced. Therefore, we are hopeful that this program will be able to move relatively quickly to market.
The solid tumor treatment market in the U.S. is more than $34 billion annually. More than $3.5 billion a year is now spent on colorectal cancer therapy alone, with some $5.4 billion being directed annually into prostate cancer.
About Microbix
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 risk associated with SST such as failure to develop and commercialize, non-adoption in the artificial insemination industry, resistance to the royalty business model for commercialization and implementation; risks associated with operation and maintenance of the urokinase facility; risks associated with commercializing the Vaccine Technology; and risks associated with margins due to appreciation of the Canadian dollar, among others. 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
