Business
Microbix arranges $500,000 in additional financing for its potential blockbuster biological products
Microbix arranges $500,000 in additional financing for its potential blockbuster biological products.
About this update from Microbix Biosystems Inc.
[{"type":"text","content":"\n\n\n\nTORONTO, Feb. 20 /CNW/ - Microbix Biosystems Inc. (TSX:MBX) announced\nthat it has raised $500,000 Cdn. in strategic financing to fund the continuing\ndevelopment of its potential blockbuster pipeline projects. Urokinase for\ncancer therapy and Sperm Sexing reproductive technology both have significant\npotential markets on an international scale.\n\n\nUrokinase\n\n\n---------\n\n\nMicrobix is collaborating with Angiogen LLC in the development of the\ncancer therapy that combines urokinase with a second drug. Microbix is the\nonly commercial-scale manufacturer of urokinase, and Angiogen holds U.S.\npatents for the use of urokinase in oncology.\n\n\nMicrobix and Angiogen are currently seeking financing for formal Phase I\nand II clinical trials, and several interested parties are now engaged in due\ndiligence. In the interim, the $500,000 announced today will provide\nsufficient capital to reach this milestone. Phase I trials in the treatment of\ncolorectal cancer should be completed in 2008.\n\n\nThe drug combination has already shown success in patients. Because both\nof the drugs have been FDA-approved for other indications and are known to be\nsafe, the partners are hopeful that this program will be able to move\nrelatively quickly to market.\n\n\nSperm Sexing Technology (SST)\n\n\n-----------------------------\n\n\nWith strong interest from the artificial insemination (AI) industry, the\nSST reproductive technology for use in food animal production has successfully\ncompleted the first year of a three-year development program. Licensing term\nsheet agreements have been signed with a number of AI companies for\ndistribution on sexed semen.\n\n\nTalyor Gilbert, an independent shareholder in Microbix who has also\nprovided debt financing, said he continues to invest in the Company because of\nthe significant commercial opportunities and the fact that management holds\nsignificant equity. \"As a Chartered Accountant, I watch costs very closely and\nMicrobix runs a lean operation. I'm also impressed with management's\nhard-nosed approach. As shareholders, they are focused exclusively on\nresults,\" he noted.\n\n\nThe financing announced today is in the form of a 9% convertible\ndebenture in an arms-length transaction with an existing shareholder. The\nprincipal amount of the debenture is convertible into common shares at ...