TORONTO, April 2, 2015 - Microbix Biosystems Inc. (TSX: MBX) (“Microbix” or the “Company”), an innovator of biological products and technologies, announced today it has signed an exclusive distribution agreement with Kim & Friends, Inc. (“K&F”). With more than 1,500 healthcare customers in South Korea, K&F is recognized for providing strong scientific and technical support. The agreement provides Microbix with improved access to the key South Korean market for its virology products. Phil Casselli, Senior Vice-President, Business Development of Microbix, commented, “Demand for our products from South Korean manufacturers of diagnostic tests has doubled in each of the past two years. However, high shipping costs and lack of local representation prevented us from reaching our full sales growth potential. As a result, we are very pleased to secure this relationship with K&F in South Korea.”
Mr. Casselli added, “We expect to significantly expand our share in the South Korean market this year. For over 30 years K&F has offered its customers products that are complementary to those offered by Microbix.” “The recent Canada - South Korea Free Trade Agreement will remove import duties and tariffs, which had ranged up to 50% for diagnostic and laboratory reagents,” continued Mr. Casselli. Kevin Kim, President of K&F commented, “We are excited Microbix chose our company as its exclusive partner in South Korea. K&F has a long and successful history in the country’s bioscience industry and we are confident we will see strong and sustained growth for Microbix’ products as we introduce them to new customers across South Korea.” Vaughn Embro-Pantalony, CEO of Microbix commented, “Asia is one of the fastest growing markets for diagnostic products globally. Our new relationship with K&F in South Korea, combined with the enhanced trading relations between our two countries, strengthens our position in this market and will enable our Company to continue experiencing strong sales growth in this region of the world.” According to the Bio-Industry Association of South Korea, there are approximately 600 South Korean companies involved in some aspect of biotechnology. South Korea has one of the highest rates of R&D spending in the world, and the government has identified the biomedical sector as one of the key growth areas for the South Korean economy. Currently the South Korean medical device market is the third largest in Asia, estimated at $5 billion and growing at an average annual rate of 8%.
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. The Company’s pipeline of innovative technologies and products also 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 a Mississauga, Ontario-based company listed on the Toronto Stock Exchange under the trading symbol ‘MBX’.
About Kim & Friends, Inc. K&F is a leader in the South Korean life science industry, supplying biotechnology and diagnostic customers with consumable products for research and manufacturing purposes.
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
Stephen Kilmer Investor Relations
(647) 872-4849
stephen.kilmer@microbix.com
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