TORONTO, May 15 /CNW/ - Microbix Biosystems Inc. (MBX:TSX) today
announced a 40% increase in sales by its core business, Microbix Virology,
during the second quarter of fiscal 2006 compared to the same year-earlier
period.
Overall revenue declined 18% in the latest quarter as a result of lower
contract development and technology-licensing fees. The relative weakness of
the U.S. dollar also had a negative impact since most of the Company's revenue
is denominated in U.S. currency.
A net loss of $276,901 was recorded in the quarter, compared to a profit
of $132,230 last year. Much of the loss was attributed to increased costs
associated with the start-up of operations at Microbix' new urokinase
facility, accelerated development of its Sperm Separation Technology (SST),
and a non-cash charge related to the issuance of stock options during the
period.
<<
Quarter Ended Mar. 31 Year To Date
2006 2005 2006 2005
-------------------------------------------------------------------------
Revenue $ 853,345 $ 1,036,961 $ 1,990,154 $ 2,229,665
-------------------------------------------------------------------------
Net Profit
(loss) $ (276,901) $ 132,230 $ (382,953) $ 177,152
-------------------------------------------------------------------------
Net Profit
(loss)
Per Share $ (0.01) $ 0.00 $ (0.01) $ 0.00
-------------------------------------------------------------------------
Cash flow $ 297,251 $ 224,680 $ 304,370 $ 305,084
Microbix moved into its state-of-the-art urokinase facility in Toronto on
January 31 this year, and during the quarter was successful in concluding an
agreement with Angiogen LLC whereby the two companies will collaborate in
licensing urokinase used in chemical drug combinations (drug cocktails) for
specific cancer treatments.
"Having control of this facility is a significant step forward for
Microbix," said President and CEO William J. Gastle. "The plant moves us up
the 'food chain' and allows us to deliver added value to our partners." Also
during the quarter, Microbix secured a $1-million financing agreement to
operate the plant.
Another key development during the three months ended March 31, 2006, was
the announcement of interim results from an independent study confirming that
the Company's proprietary Influenza Vaccine Technology delivers a significant
increase in the yield of human influenza virus used in the manufacture of flu
vaccine. Final results are expected in the near future, and the Company has
also begun work on evaluating the application of this technology to avian flu
virus.
Microbix' SST Technology is moving forward, and it is currently in
licensing discussions with artificial insemination companies. Semen sales in
the swine, dairy and beef cattle industries are an estimated U.S. $3 billion a
year. Microbix expects to realize revenues from royalties on these sales, as
well as from sales of the genetic and other materials related to sex-
determination of semen.
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 risk associated with SST such as failure to develop and commercialize,
non-adoption in the artificial insemination industry, resistance to the
royalty business model for commercialization and implementation; risks
associated with operation and maintenance of the urokinase facility; risks
associated with commercializing the Vaccine Technology; and risks associated
with margins due to appreciation of the Canadian dollar, among others. 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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