Business
Microbix Sales Grow Over 30% In The Second Quarter; Up 43% In The First Half '09
New manufacturing facility opens with substantially increased capacity for continued growth TORON...
About this update from Microbix Biosystems Inc.
[{"type":"text","content":"\n\n\n\nNew manufacturing facility opens with substantially increased capacity\nfor continued growth\n\n\nTORONTO, May 14 /CNW/ - Microbix Biosystems Inc. (TSX:MBX) announced\ntoday robust double digit growth in sales, improved cash flow, and reduced\noperating losses for the second quarter ended March 31, 2009.\n\n\nIn a news release today, William J. Gastle, CEO of Microbix said "Our 43%\ngrowth in the first half of 2009 coupled with the strong growth over the past\nthree years indicates the potential for our base business. The new\nmanufacturing facility is now fully operational, cash flow is increasing and\nthe shareholder value creation opportunity is still available in all three\npipeline products albeit somewhat delayed."\n\n\nFirst Quarter Highlights\n\n\nCore Business\n\n\nIn the second quarter, sales improved over 30% per cent compared to the\nsame quarter last year. "We exceeded our sales target again in the second\nquarter," Mr. Gastle continued "and we are on a path to meet or exceed\nprojections for this fiscal year. Subsequent to the second quarter, the new\ncore business manufacturing facility opened with significantly improved\ncapacity. Microbix fortunately operates in a major market with an ongoing\nstrong demand for virology products."\n\n\nInfluenza Vaccine Business\n\n\nThe Hunan China manufacturing joint venture continues making progress as\ninternal milestones are met by both partners. Microbix and Hunan are\ncompleting the pre-conditions that have been set for financing. Both levels of\ngovernment in China are involved in the project. Recent events resulting from\nthe emergence of the H1N1 virus strain that spread globally in April has\nincreased the level of urgency of this project in China. The Feasibility Study\nhas determined the capital required for this project. The Hunan Liuyang\nBiomedical Park under the supervision of Microbix financed the Study. A\npotential investor has agreed in principle to lead the fundraising efforts\nsubject to finalization of the deal structure.\n\n\nSemen Sexing Technology (SST)\n\n\nIn the SST program, Microbix focused on strengthening its intellectual\nproperty position. "We concluded the research phase of the program in the\nsecond quarter," said Mr. Gastle. "The results led to a conclusion which\nbrings the market opportu...