TORONTO, Aug. 13 /CNW/ - Microbix Biosystems Inc. (TSX:MBX) today announced results for the third quarter ended June 30, 2008, and outlined steps that have been taken in implementing its strategic business plan.
In his remarks reviewing the third quarter, William J. Gastle Microbix CEO stated, "The China project announced in the quarter is the opportunity to install VIRUSMAX(TM) in one of the largest influenza vaccine manufacturing facilities to be built in the world. This project is expected to have a major long term impact on Company revenues and profit beginning in 2009."
Mr. Gastle went on to say, "We are enjoying an increase in sales and have increased manufacturing capacity to complement increasing demands of the commercial activities of the major value drivers in our business."
Operating Highlights
Virology Products
- The base Virology Products business performed well, with sales up
25 percent in the third quarter and up 25 percent in the first nine
months of fiscal 2008 compared to the same periods a year earlier.
VIRUSMAX(TM)
- The major highlight announced in the third quarter is the
unprecedented influenza vaccine agreement signed with the Hunan
Government in China. It is a very large deal for your Company, as it
represents the opportunity to install the use of VIRUSMAX(TM) in one
of the largest influenza vaccine manufacturing facilities to be built
in the world. The joint venture has received a commitment for more
than 100 million doses from the Province of Hunan - a contract worth
in excess of $500 million, representing one of the largest single
commitments for flu vaccine ever made. The economics of this deal are
impressive and are a significant breakout from the confines of the
existing market. Specifically, it ensures a royalty rate that
reflects the value of a large and new market that will all be
exclusive to this facility.
- Additional opportunities are being presented to the Company to
further utilize the Virusmax(TM) Technology. Letters of Intent
previously announced have led to evaluations of the technology that
may lead to definitive agreements. New LOI's are anticipated.
Urokinase
- Negotiations to bring Urokinase back to the medical treatment market
have continued with ImaRx during the quarter. After a significant
long term effort to finance Urokinase, the agreement with ImaRx
announced in April was terminated as a result of uncertainty
surrounding the pronouncement by the FDA that extended dating for the
product is approvable but more analysis was required. ImaRx and
Microbix both agreed to strike a new arrangement that would take into
consideration the issues associated with the product and other assets
of interest to Microbix. These discussions are expected to be
complete in this quarter.
SST(TM)
- Progress is being made on the semen sexing technology development
reflected in new provisional patents submitted in the quarter that
represent a broadening of the intellectual property for this
technology marking an internal milestone for the project. The
milestones in the immediate future are to complete our investigation
of sex specific proteins, file additional patents and complete in
vitro fertilization testing.
Results of Operations
For the three months ended June 30, 2008, the Company recorded a net loss of $945,111 compared to a loss of $940,630 for the same period in fiscal 2007. For the year to date, the current period loss was $3,227,795 compared to a loss of $1,897,809. Cash flow was negative for the quarter, but positive for the year to date, reflecting the equity issue in the first quarter.
Microbix made a significant investment of cash in the first three quarters this year as the Company has endeavoured to commercialize two major technologies in the pipeline - VIRUSMAX and Urokinase. The loss was expected because of these ongoing commercialization activities as well as the research associated with SST(TM). As most of Microbix' upfront investment associated with the VIRUSMAX and Urokinase commercial activities is completed, the ongoing burn rate has been significantly reduced beginning in the fourth quarter.
Third Quarter Ended Nine months ended
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June 30 June 30
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2008 2007 2008 2007
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$ $ $ $
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Sales 1,517,150 1,126,716 3,733,773 2,877,095
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Net Profit (loss) (945,111) (940,630) (3,227,795) (1,897,809)
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Net Profit (loss) per share (0.02) (0.02) (0.06) (0.05)
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Cash Flow (1,079,493) 440,076 2,751,746 146,203
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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, without limitation, the risks associated with: failure of the parties including failure to obtain the funds required under the agreement with the Hunan Government to finance the venture; risks associated with the ability to license Vaccine Technology to industry; failure to develop and commercialize Urokinase on a timely basis or at all; risks associated with failure to develop and commercialize SST; and intellectual property risks such as failure to protect intellectual property rights or infringement of third party intellectual property rights. These forward-looking statements represent the Company's judgment as of the date of this press release. Additional risks and uncertainties related to ImaRx can be found in its filings with the U.S. Securities and Exchange Commission. The Company disclaims any intent or obligation to update these forward-looking statements.