TORONTO, Dec. 21 /CNW/ - Microbix Biosystems Inc. (TSX:MBX) today announced results for the fiscal year ended September 30, 2007.
"Consistent with our long-term strategic plan, we continued to make significant investments in our three major products, and I'm pleased to report that progress was achieved on all fronts," said William J. Gastle, CEO of Microbix. "Any one of these projects, if successfully commercialized, would provide shareholders with a substantial return on their investment as each has the potential for annual sales in the hundreds of millions of dollars."
Microbix' strategy over the past five years has been to use cash from its core virology business to help fund the development of this product pipeline. As well, the Company focuses on new products that allow it to leverage its existing skills and expertise, facilities, and technology platforms. As Mr. Gastle states, "The next key hurdle for Microbix is to fund Urokinase, and once that milestone has been achieved, the company can return to profitability immediately."
Highlights for fiscal 2007 included:
Core Business
Record sales were achieved for the core virology business, with year-over-year growth of 14 per cent. Solid base business performance is expected to continue, with 20 per cent growth anticipated in fiscal 2008.
Microbix is now planning to expand the manufacturing facility in order to accommodate increased demand for virology products, water-based products and viral vaccine contract manufacturing.
VIRUSMAX(TM)
The Company recently signed two Letters Of Intent with companies outside North America which are interested in licensing its influenza vaccine yield enhancement technology on a non-exclusive basis. The first definitive agreement is now being negotiated, and Microbix anticipates agreements will be established early in 2008.
VIRUSMAX(TM) has now been granted patents in the U.S., Canada, India and Australia, and patents are pending in a number of other countries. During the year, the international, peer-reviewed scientific journal Vaccine reported on VIRUSMAX(TM), and the technology also attracted a great deal of interest at a conference in Toronto attended by delegates from all over the world.
Semen Sexing Technology(TM) (SST(TM))
The first milestone, reported last year, was the signing of agreements with a number of artificial insemination companies based in Europe, North America and Australasia. This year, the Company announced a second major milestone when it discovered the specific proteins that allow female-producing and male-producing sperm cells to be separated. Microbix is currently filing patent applications in all major markets.
Also during fiscal 2007, Microbix announced that it had entered into an agreement to license SST(TM) to a major commercial breeder in China. The Chinese company - the Animal Fine Breeding Station of Hebei Province - is one of the leading suppliers to the livestock industry and will become the exclusive distributor of SST(TM) in that country.
Urokinase
Microbix continues to make progress towards financing Urokinase. Concurrently with the closing of this financing, the Urokinase assets will be rolled into a newly created private corporation. The funds being raised for Urokinase would be used to conduct the clinical trials and proceed to commercialization. Upon completion of this financing, Microbix would immediately return to profitability.
Other Highlights
Microbix raised $6.825 million in equity through a brokered private placement financing. This private placement had significant institutional investor participation. The funds will be utilized to continue the growth of the core business. Specifically, the proceeds will be used for the expansion of the core manufacturing operations and to fund the development of SST(TM).
Financial Results
For the year ended September 30, 2007, the Company recorded a net loss of $2,711,810 or 7 cents a share compared to a loss of $2,092,022 or 6 cents a share in fiscal 2006. The $400,000 licensing fee obtained from the Chinese commercial breeder was recorded as deferred revenue until all deliverables in the agreement are complete. The fourth quarter loss was $814,001 or 2 cents a share compared with a loss of $699,975 or 2 cents a share in 2006. Cash flow was positive for both the quarter and full year compared to 2006.
Quarter Ended Sept 30 Year Ended Sept 30
2007 2006 2007 2006
Revenue $1,171,731 675,407 4,048,826 3,644,143
Net Income (Loss) $ (814,001) (699,975) (2,711,810) (2,092,022)
Net Income (Loss)
per share $ (0.02) (0.02) (0.07) (0.06)
Cash Flow $ 90,215 (664,453) 236,418 (853,288)
Microbix specializes in the development of 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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