Year-End Results Show 2008 Revenue Growth Of 23%
TORONTO, Dec. 10 /PRNewswire-FirstCall/ - In a news release today, Microbix announced results for the fiscal year ended September 30, 2008. Revenues from its profitable core business are continuing to fund Microbix Biosystems Inc.'s (TSX:MBX) late-stage pipeline opportunities which are expected to build shareholder value in the short and long term, according to William J. Gastle, CEO of the Company.
"We expect cash flow from our base business to strengthen our balance sheet," Mr.Gastle said. "Fiscal 2009 will be a pivotal year as we re-launch Urokinase and seek partnership for our Hunan (China) influenza vaccine business with a pharmaceutical company."
Highlights for fiscal 2008:
Record performance was achieved again for the core business in revenues and volumes shipped, with year-over-year growth of 23 per cent.
"We exceeded our targets in 2008," Mr. Gastle continued "and we are in the final steps towards completing expansion of our manufacturing facility to accommodate increased demand for virology products - the impact of this additional capacity will be realized in fiscal 2009."
The Company is collaborating with two major firms resulting from agreements announced last year. A third collaboration is now under discussion. Activities have accelerated as a result of the Agreement with the Hunan province of the Peoples Republic of China announced in June 2008. Engineering has begun on site in China and financing activities are under way. VIRUSMAX has now been granted patents in the U.S., Canada, India, Australia, and China. Patents are pending in a number of other countries.
Semen Sexing Technology(TM) (SST(TM))
SST will enable commercial breeders to pre-determine the sex of livestock offspring resulting from artificial insemination, a market that is currently valued at over $2.5 billion.
The Company submitted new provisional patents for inventions relating to SST which describe new discoveries that would significantly strengthen its proprietary process for separating X and Y chromosome-containing sperm.
The Company is working to identify all sex specific proteins and characterize them. Microbix took the necessary steps to ensure that it has built a solid patent foundation in 2008.
The Company's $2.5 million acquisition of all Urokinase assets from ImaRx Therapeutics, Inc. of Tucson, Arizona, (Nasdaq: IMRX) resulted in a major transformation for Microbix.
These assets included ImaRx' remaining Urokinase inventory (worth approximately US$40 million in retail value) as well as the regulatory file for the product (formerly known as Abbokinase(R), now rebranded as Kinlytic(R)), key raw materials for Urokinase manufacture, and the corresponding sales and marketing infrastructure).
With this acquisition, Microbix will become a fully integrated biopharmaceutical company with an established revenue base. The acquired inventory has a pending US FDA product inventory release which it expects in the coming weeks, allowing it to begin sales and marketing activities in the second quarter fiscal 2009.
By carefully parceling out the inventory, Microbix expects to have sufficient time to garner approval of its new product manufactured at its Skyway Urokinase manufacturing facility. Profits from Urokinase sales will be used to fund development of the Skyway operation.
Microbix raised $6.825 million in equity through a brokered private placement financing. This placement had significant institutional investor participation. The funds are being used to continue growth of the core business. Specifically, the proceeds are being used to expand the core manufacturing operations and to fund development of SST(TM).
For the year ended September 30, 2008, the Company recorded a net loss of $3,667,910 or 8 cents a share compared to a loss of $2,711,810 or 7 cents a share in fiscal 2007.
The fourth quarter loss was $440,115 or 1 cent a share compared with a loss of $814,001 or 2 cents a share in 2007. Cash flow was positive for both the quarter and full year as in fiscal 2007.
The development of the Hunan Joint Venture and extensive business development activities associated with concluding agreements for the Urokinase acquisition increased the loss this year. Microbix has undergone a corporate restructuring to conserve resources and lower its cash burn rate in order to ensure its pipeline products reach their full potential. Microbix is expected to turn profitable in 2009.
"Given the unusually difficult market conditions, Microbix is ensuring that it is controlling its cash flow prudently," said Mr. James A. Long, CFO. "We remain confident in our ability to operate the business within our existing cash reserves by using forecasted cash inflows from its base business." An anticipated launch of Urokinase in 2009 would be accretive to the Company's projected positive cash flows.
Quarter Ended Sept 30 Year Ended Sept 30 2008 2007 2008 2007 ------------------------------------------------------ Revenue $ 1,259,749 1,171,731 4,993,521 4,048,826 Net Income (Loss) $ (440,115) (814,001) (3,667,910) (2,711,810) Net Income (Loss) per share $ (0.01) (0.02) (0.08) (0.07) Cash Flow $ 17,914 90,215 2,769,660 236,418
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 get authorization to release Kinlytic for distribution in the US; inability to complete financing for the Hunan China project currently the subject of financing; risks associated with commercializing the technologies; risks associated with the ability to license VIRUSMAX 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.
|SOURCE Microbix Biosystems Inc.|
Copyright©2008 PR Newswire.
All rights reserved