February 15, 2012

Microbix reports strong first-quarter results

Microbix Biosystems Inc., a Toronto, Canada-based biotechnology company commercialising virology and novel biotechnologies, on Tuesday (Feb 14) reported robust financial results for the first quarter of fiscal 2012.

For the quarter ended December 31, 2011, Microbix reported revenues of CAD1,474, 511 (US$1,1474,364), an 80% increase from CAD812,694 (US$812,613) for the same quarter in 2011. This reflected a return to normal customer demand compared to the one-time decline in sales for the same period in 2011.

Cost of sales was CAD832,723 (US$832,640) for the quarter compared to CAD429,080 (US$429,037) in 2011 due to higher sales. Operating expenses were CAD1,159,533 (US$1,159,417) compared to CAD1,117,974 (US$1,117,862) for the same period in 2011, or a 3.7% increase due to increased financing costs.

Expenses for pipeline development continued to decline as the company advances these assets towards commercialisation with its partners. These results have contributed to a lower operating loss for the quarter of CAD517,745 (US$517,693) compared to CAD734,360 (US$734,287) for the same quarter last year.

Subsequent to the first quarter, a letter of intent was signed with Zydus Cadila, an innovative global pharmaceutical company that discovers, develops, manufactures and markets a broad range of healthcare products, to collaborate on the return of Urokinase to the market.

Under terms of the arrangement, all costs associated with the re-launch of Urokinase will be covered by Zydus. After product launch, Microbix will also receive a guaranteed margin on all product shipped to Zydus, plus a royalty on all sales made by Zydus.

William J. Gastle, Chief Executive Officer, said: "I am very pleased that Urokinase will be re-established as an option for clinicians for treatment of blood clots and related condition. For Microbix and Zydus, significant financial benefits will accrue in a much shorter time frame than typically the case with the launch of completely new drugs or new biologics."

Meanwhile, Microbix, in partnership with the Hunan government in China, is planning to build Asia's largest and most advanced vaccine facility.

The company, which supplies customers in the US, Europe and Asia, has intellectual property in large market biotherapeutic drugs, vaccine technologies and animal reproduction technologies.