TORONTO, May 15 /CNW/ - Microbix Biosystems Inc. (TSX:MBX) today announced its second quarter results for fiscal 2007 and provided an update on the development of its large-market products.
"We made significant progress during the quarter in moving all three of our proprietary biotechnology products closer to commercialization," said William J. Gastle, Chairman and CEO.
"Our continuing investment in this product pipeline is reflected in the financial results. The decision to investment spend ahead of future revenues is a deliberate strategy - one that we believe will create shareholder value as Microbix endeavours to become a major player in large-market biotherapeutic drugs, vaccines, and reproductive technologies."
He noted that the Company's core virology business continues to provide cash flow for product pipeline development as well as the in-house expertise, technology and facilities necessary to help move products to market.
"Microbix is a changed company from what it was only three years ago. Today, we are an innovative enterprise with potential blockbuster products, a solid platform of business, and a state-of-the art manufacturing plant," Gastle reported.
Highlights of the three months ended March 31, 2007, included:
Urokinase
Microbix is making good progress in its discussions with potential investors, and financing is expected to be concluded this year. Interest has been propelled by the clinical proof of concept as Urokinase has been used in patients as a thrombolytic drug. The catheter clearance indication is seen as low risk and will be a very successful business in its own right. The other indications of immediate interest have also shown proof of concept such as oncology therapy where the drug has been shown to work effectively as a combination cancer therapy in limited Phase I trials and compassionate use cases.
Financing should be concluded in 2007, assuming current discussions are successful, followed by acceptance of an Investigative New Drug (IND) application to begin the trials.
Management believes that Urokinase offers other attractive opportunities in the biotherapeutics marketplace which can be pursued using the same product, processes, and manufacturing facilities.
Microbix is now the only source of Urokinase, and this is likely to be the case for the foreseeable future. The technical hurdles for production are significant. The Company has manufactured Urokinase at commercial scale, and through partnerships has created a core technical group to develop the manufacturing process and produce the drug. It now has the manufacturing capability to produce clinical drug substance for trials and market launch.
Semen Sexing Technology
The first year of a three-year development program has now been completed, and the Company is on track with respect to potential commercialization.
There is strong interest in this product - both among investors and customers. Work is going well and the market continues to be large and attractive, in the range of $3 billion without any competitive technology on the horizon.
Vaccine Technology
Patents on the Company's proprietary vaccine technology have been granted in Canada and India, and Microbix is awaiting similar acceptance by the U.S. Patent and Trademark Office. A number of other applications are in late stages of the process. Microbix continues to discuss licensing opportunities with potential partners.
Financing
During the quarter a convertible debenture was issued for $500,000 to continue with the funding needs of the developments. The terms and conditions were consistent with the previously issued debentures.
Subsequent to the quarter, a non-brokered private placement for a total of $1,050,000 was placed with a large financial institution. It consisted of 1.5 million units, representing 1 common share and one-half common share warrant. Each whole warrant will purchase a common share at $0.90 for a period of eighteen months.
Results of Operations
For the second quarter ended March 3l, 2007, the Company recorded a net loss of $475,052 compared to a loss of $578,313 for the same period in fiscal 2006. For the year to date, the current period loss was $957,180 compared to a loss of $684,365 in the previous fiscal year.
Second Quarter Ended March 31 Year to Date
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2007 2006 2007 2006
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Sales 1,077,895 849,605 1,738,330 1,781,024
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Net Profit (loss) (475,052) (578,313) (957,180) (684,365)
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Net Profit (loss)
per share (0.01) (0.02) (0.02) (0.02)
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Cash Flow 7,795 297,251 (293,872) 304,370
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"The losses were anticipated as we continue to pursue our strategy of investing wisely in the future of this Company," said Gastle.
Microbix specializes in developing proprietary biological technologies and commercializing them through global partners. The Company has intellectual property in large market biotherapeutic drugs, vaccine technologies and animal reproduction technologies. 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 including the risks associated with failure to develop and commercialize urokinase, inability to complete financing, non adoption of the catheter clearing product, non adoption of the drug combination, resistance to business model for commercialization and implementation; risks associated with commercializing the technologies; and risks associated with the efficacy of the drug combination in cancer treatment or catheter clearance product; risks associated with the ability to license Vaccine Technology to industry, risks associated with failure to develop and commercialize SST; non adoption of SST. 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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