Business
Microbix Establishes Key Global Distribution Agreements for its SST(TM) Sperm Sexing Technology for the Dairy, Beef and Swine Industries
Microbix Establishes Key Global Distribution Agreements for its SST(TM) Sperm Sexing Technology for the Dairy, Beef and Swine Industries.
About this update from Microbix Biosystems Inc.
[{"type":"text","content":"\n\n\n\n\nTORONTO, July 11 /CNW/ - Several companies providing artificial\ninsemination to the dairy, beef and swine industries, including some of the\nworld's largest, have signed licensing term sheets with Toronto-based Microbix\nBiosystems Inc. (TSX:MBX) for distribution of its proprietary Sperm Sexing\nTechnology (SST(TM)).\nMicrobix' technology allows breeders to determine the sex of offspring\nprior to the insemination of cattle or swine. \"Upon commercialization, this\nwill be the single-greatest breakthrough since the advent of commercial\nartificial insemination almost 50 years ago and will revolutionize the way\nanimal production takes place,\" said William J. Gastle, President and CEO of\nMicrobix. \"Our market research indicates within three years of launch of this\ntechnology, close to 100 per cent of the dairy semen provided will be sexed\nsemen.\"\nThe technology is important because producers currently spend billions of\ndollars annually on artificial insemination, yet they can end up with animals\nunsuited to their particular industry's needs. In the dairy industry, for\nexample, a certain percentage of female offspring are required annually to\nreplace the milking herd. SST(TM) separates female-producing sperm from\nmale-producing sperm, thus ensuring gender.\nThe companies that have signed account for over 13 per cent of the dairy,\nbeef and swine semen doses marketed annually. The total revenue for premium\npriced sexed semen sold by these companies is expected to exceed $350 million\nby 2010. Microbix will retain a 15 per cent royalty, or minimum unit price\nwhichever is higher, on sales of all semen treated by SST(TM).\nThe signed companies, based in Europe, North America and Australasia,\nrepresent a significant sales presence in all major markets around the world.\nThese companies will have significant advantages enabling them to grow their\nmarket share over competitors.\n\"These agreements not only pave the way for global distribution of the\ntechnology, but validate the market size, royalty rate and revenue potential,\"\nsaid Phil Casselli, General Manager of Microbix.\nMicrobix' SST(TM) has significant advantages over other technologies\ncurrently in use to sex semen, making it faster, cheaper and less detrimental\nto the vitality of the sperm cells. The process has already been patented in\nthe U.S. ...