Toronto Biotech Company Also Expects a 15% Increase in Sales Volume for 2011
TORONTO, Oct. 20 /PRNewswire-FirstCall/ - Microbix Biosystems Inc. (MBX:TSX), a biotechnology company focused on virology and biological technologies, reported strong worldwide sales of $1.9 million for the fourth quarter of 2010 ending September 30th (unaudited) fueled by a 15% increase in virology product volume and a 20% increase in demand for its pharmaceutical-grade water products.
This growth was driven by increased demand for Microbix' products following an increase in new diagnostic kit launches by its customers and Microbix' entry into the market for laboratory proficiency testing for viruses in clinical samples. In the quarter, Microbix also expanded into the pharmaceutical solutions market for formulating drugs, for which the Company expects significant growth.
Based on the strong sales growth at the close of this fiscal year, Microbix projects a 15% increase in worldwide sales for 2011 based on current currency rates.
William J. Gastle, Microbix' Chief Executive Officer, said: "Our strong sales for the quarter and our projected 15% sales increase for next year are based on the Company's decision a few years ago to risk financing and building a new innovative production facility which more than tripled our manufacturing capacity. This new facility has allowed Microbix to produce new products, add new customers and increase product shipments by 40% compared to 2008. It will serve us well as we expect significant growth in the next few years."
To better position its sales force for growth, Microbix has focused its customer outreach on four markets: The United States, Europe, Southeast Asia and China. The Company has brought in experienced representation to grow these markets and the effort has already begun to show results.
With the $2 million investment commitment from a large animal genetics company in the fourth quarter, Microbix livestock semen selection technology stepped closer to its market introduction of LumiSort™. The $ 500,000 upfront payment financed all LumiSort™ activities in fiscal 2010. The Company is in the latter stages of financing of the influenza vaccine production facility in Hunan, China, which will utilize the VIRUSMAX™ technology in its manufacturing process. Discussions with potential partners for the Urokinase thrombolytic drug Kinlytic® are continuing and the Company hopes to be able to announce news in the near future.
Microbix Biosystems Inc. 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 regulatory approval, and release, of Kinlytic for distribution in Canada, the US and other regions of the world;; risks inherent in moving onto new markets or developing and launching new products or engaging new partners; risks associated with commercializing the technologies including sales may not reach sales targets or be made at all, there is no guarantee that the Company will complete development of any technology and if it does that it will perform to commercially exploitable levels, other technologies may emerge before any technology developed by the Company enters the market, royalty rates may not be achievable, markets may not sustain demand for any product should world economies shift significantly, market utilization rates may not be reached, market value of products may vary, product launch dates and market utilization timetables may not be met; risks associated with failure to develop and commercialize LumiSort; non-adoption of LumiSort; competition in Microbix' core business; general economic conditions; intellectual property risks including challenges to protecting the Company's intellectual property rights, patents may not provide adequate protection of the Company's intellectual property, may not be successfully prosecuted and may be subject to challenge and risks of infringement of third party rights; risks associated with financing the China joint venture, that includes obtaining all funds needed to launch or complete the project; risks affecting timely and cost effective construction and operation of the Microbix-Hunan facility; risks associated with operating in foreign jurisdictions, including operating in China with its evolving legal and economic infrastructure and the involvement of the Chinese government departments at national, state and local levels in business and economic matters; creating risks associated with various levels of political and economic conditions and other risks including but not limited to, currency exchange rates and restrictions on foreign exchange; high rates of inflation; renegotiation or nullification of existing licenses, permits and contracts; changes in taxation policies; risks associated with repatriation of profits and changing political conditions and governmental regulations; development of competing technologies in all of its business lines, and Microbix' ability to attract and retain qualified employees and management. 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.