TORONTO, Dec. 7 /CNW/ - Microbix Biosystems Inc. (MBX:TSX) today
announced financial results for the year ended September 30, 2005.
Microbix recorded record sales - up 8% on the year - even though the
fourth quarter was down compared to a very strong performance in the same
period a year earlier. Sales growth came from a solid core business,
development contracts, and fees related to the Company's Vaccine Yield
Enhancement Technology. Net profit for fiscal 2005 was $125,526 compared to
$9,146 in fiscal 2004.
The strong financial results allowed the Company to continue its
significant investments in manufacturing infrastructure and research and
development, and to fund the acquisition of Sequent Biotechnologies Inc.
(Sequent), a private company.
<<
Quarter ended Sept. 30 Year Ended Sept. 30
2005 2004 2005 2004
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Revenue $ 964,326 $1,683,143 $4,376,579 $4,067,438
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Net Profit (loss) $ (118,193) $ 490,896 $ 125,526 $ 9,146
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Net Profit (loss)
Per Share $ (0.00) $ 0.01 $ 0.00 $ 0.00
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Cash flow $ (254,195) $ 483,993 $ (17,636) $ 745,758
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Microbix' lead biotherapeutic product Urokinase was licensed to Genpharm
Inc., an affiliate of the Merck Generics Group, in late 2002. Microbix
continues to pursue this product opportunity, including assessing new market
opportunities for the drug, and the two companies continue to dedicate
resources on this product.
Continued strong industry interest resulted in a second agreement to
evaluate the Company's proprietary Vaccine Technology by an international
vaccine company. Despite results pointing to a successful evaluation, Microbix
ceased negotiations on an exclusive license after an extension of the original
agreement. Subsequent to year-end, the Company announced that an independent,
influenza research laboratory would be evaluating the technology to confirm
the stated viral yield enhancement.
Microbix' technology has the potential to significantly increase
production yields of influenza vaccines. This would be an important
breakthrough in combating a possible future flu pandemic since annual vaccine
production capacity is currently only about 300 million doses worldwide. "With
growing concerns about a coming pandemic, a vaccine capacity shortage, and
increased demand funded by governments, our technology would be of huge
benefit if adopted by the flu vaccine industry", said William J. Gastle
President and CEO. Results of the independent evaluation are expected within
six months.
A major development in fiscal 2005 was the completion of the evaluation
of the non-therapeutic Sperm Sexing Technology (SST). The Company bought the
worldwide rights to the technology from the University of Guelph through the
acquisition of Sequent. This technology is another high value proprietary
biological with a substantial market potential for shareholders. With an
existing artificial insemination industry distribution network serving a $3
billion market and no regulatory constraints, this opportunity is seen as a
potential blockbuster.
The core business grew by 47% in 2005, and this positive trend is
expected to continue in fiscal 2006. "We are enjoying the results of continued
investment in product development as the number of our large customers expands
and the volume of product they are using increases year over year," said Mr.
Gastle.
Microbix specializes in developing proprietary biological technologies
and then commercializing those technologies through global partners. Its
products include biotherapeutic drugs, vaccines, and infectious disease
diagnostics. Its objective during the next decade is to develop a pipeline of
products and technologies for what is expected to be a multi-billion dollar
biologics market worldwide. 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. 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.
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