TORONTO, May 14 /CNW/ - Microbix Biosystems Inc. (TSX:MBX) today announced results for the second quarter ended March 31, 2008, and outlined steps that have been taken in implementing its strategic business plan.
"We have made significant progress in moving VIRUSMA(TM) and Urokinase into the market since the first quarter, and we expect to reach important milestones with SST(TM)in the coming months. Our base Virology business continues to support our pipeline development activities with strong cash flows from this division," said Microbix CEO William J. Gastle.
Operating Highlights Virology Products - The base virology business performed well, with sales up 9 per cent in the second quarter and up 27 per cent in the first six months of fiscal 2008 compared to the same periods a year earlier. - Subsequent to the end of the second quarter, Microbix announced the purchase of a new plant in the Toronto area that will triple its manufacturing capacity, allow the Company to meet the steadily growing demand for its virology products, and facilitate further diversification into pharmaceutical grade water-based products and viral vaccine contract manufacturing. VIRUSMA(TM) - To date, Microbix has signed two letters of intent, is negotiating a definitive agreement with one, and is in discussions with two new companies regarding the licensing of its proprietary influenza vaccine yield enhancement technology. - Further opportunities are anticipated in 2008 as countries around the world, most lacking the manufacturing capacity to meet domestic needs, become increasingly concerned about the risks of a pandemic. VIRUSMAX(TM) can enable manufacturers to at least double the amount of influenza vaccine they produce, reducing dependence on imported supplies. Urokinase - Subsequent to the quarter's end, Microbix announced that it intends to transfer its Urokinase assets - including the manufacturing facilities and equipment, worldwide commercial rights to all Urokinase therapeutic indications, and the associated staff and management - to a new private company named Klarogen Biotherapeutics Inc. Microbix would retain a significant equity stake in the newly created company. - Under the terms of a newly arranged letter of intent, Klarogen would purchase the Urokinase assets of ImaRx Therapeutics, Inc. of Tuscon, Arizona, (Nasdaq: IMRX). These assets would include ImaRx' remaining Urokinase inventory, the NDA (formerly known as Abbokinase(R), now known as Kinlytic(TM)) and the sales and marketing infrastructure. The Boards of Directors of both companies have approved a letter of intent to this effect. - The Company is in the late stages of financing discussions and due diligence with its lead investor. - The benefits of acquiring the Urokinase assets from ImaRx would include: Klarogen would become the sole commercial-scale manufacturer and supplier of Urokinase; it would be able to sell existing product, manufacture and ultimately substitute current inventory with its own product; it would be able to market directly to customers, which is far more profitable than through a partner; and working with an already FDA-approved product would accelerate the timeline to commercial scale production. SST(TM) - The development of the Semen Sexing Technolog(TM) (SS(TM)) is moving forward as Microbix continues to expand the intellectual property in specific proteins that are determinative for X and Y chromosome- bearing sperm. The Company has now fully deployed its In Vitro Fertilization (IVF) capability, giving it the capacity to demonstrate sexed semen and evaluate performance. As well, new enabling technologies now installed are expected to accelerate the work that Microbix anticipates will lead to full characterization of all sex- specific proteins.
Results of Operations
For the three months ended March 31, 2008, the Company recorded a net loss of $1,330,058 compared to a loss of $475,683 for the same period in fiscal 2007. For the year to date, the current period loss was $2,342,788 compared to a loss of $957,179. Cash flow was negative for the quarter, but positive for the year to date, reflecting the equity issue in the first quarter.
The expanded investment being made in SST development, licensing activities associated with Virusmax, and financing activities of the base business and Urokinase led to an expected loss in the second quarter and the first half of 2008.
Second
Quarter Ended 6 months ended
March 31 March 31
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2008 2007 2008 2007
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$ $ $ $
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Sales 1,179,771 1,077,895 2,216,622 1,750,379
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Net Profit (loss) (1,330,058) (475,052) (2,342,788) (957,179)
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Net Profit (loss)
per share (0.02) (0.01) (0.05) (0.02)
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Cash Flow (1,771,934) 7,795 3,831,239 (293,827)
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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 Klarogen and ImaRx to enter into a definitive agreement, failure of Klarogen to finance the acquisition from ImaRx, failure to develop and commercialize Urokinase on a timely basis or at all, failure to complete due diligence to the satisfaction of either or both parties; risks associated with the ability to license Vaccine Technology to industry; 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.
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