I would like to discuss Microbix on the TSE. As of Dec 12/00, this is a 60c stock. They seem very conservatively managed and have some nice earnings potential.
Let's discuss.....Walt!
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Microbix' Year-End Report of Higher Sales A 'Sound Foundation' For U.S. Market Push
A strong core business shows company poised to re-emerge
TORONTO, Dec. 11 /PRNewswire/ - Microbix Biosystems Inc. (TSE:MBX - news) today reported higher sales and greatly reduced losses for its 2000 year-end, ``showing a sound foundation for building the value that will flow from our push into the generic biopharmaceutical market,'' says William J. Gastle, President and CEO.
In reporting results for the year ended September 30, 2000, ``Microbix is showing the clear picture of a company that we think has what it takes to grow -- beginning with rising sales revenues from our core biologicals business,'' Mr. Gastle explained.
2000 1999
Revenue $ 1,960,231 $ 1,625,211
Net loss $ (450,226) $(4,640,642)
Net Loss/share $ (.01) $ (0.14)
Cash flow $ 329,555 $(1,458,327)
Revenues in 2000 increased by 21% over 1999 as demand for products and services in the core business increased. Revenue growth was from $1.625 million to over $1.960 million and the loss on the year was reduced from $0.14 per share to $0.01 per share.
The operating loss for the year 2000 dropped by 90% (from $4,640,642 in 1999 to $450,226), an improvement attributable to the Company's slowing of funding (started in 1999) of its generic urokinase products pending re- licensing.
``I am delighted with the progress we are able to report so far. Sales growth and fiscal control are fundamental to our plans for the future, and these results clearly show that the management team is succeeding in reaching its objectives,'' said Mr. Gastle.
``Microbix has positioned itself to grow its core business and consequently to refinance its lead biopharmaceutical drug urokinase through a new alliance,'' he said.
Based on the ``resolution of barriers placed in its path by some past illegal actions of Abbott Laboratories, the Company is poised to re-emerge. It can do so in part on the strength of its established core business,'' he added.
``Growth in this core biologicals business unit in upcoming quarters is anticipated and the Company expects to repeat its strong performance in the coming year.''
Sales in the first quarter of fiscal 2001 are well ahead of the same period for 2000.
Microbix reported in 2000 its success in its lawsuit with Abbott Laboratories. The U.S. District Court for the District of Maryland dismissed Abbott's allegations that Microbix had misappropriated trade secrets. Following the Court's decision in March 2000, the Company re-started licensing discussions with potential marketing partners and increased development activities again of its lead biotherapeutic product, urokinase.
``We want to be in a position to hit the ground running once licensing is completed so we re-started some aspects of the urokinase development program mid-year, financing on the strength of the growing core business,'' he continued. After exploring interest in the products with several major companies, Microbix has narrowed the number of licensing candidates to a short list.
The Company has also been developing its own raw material supply for urokinase production and is in negotiations with a third party facility provider for the GMP (good manufacturing practices) facility. Completion of these strategic supply and facility arrangements when combined with the final selection of a marketing partner ``will establish a sound foundation for Microbix' growth strategy led by its urokinase product, the first in a pipeline of generic biopharmaceuticals.''
Once approved by the U.S. Food & Drug Administration (FDA), Microbix will be the only alternative source of urokinase for the United States market of US $300 million. Currently urokinase is not available in the market from Abbott Laboratories following the FDA's finding that the company was not in compliance with GMP.
Microbix expects to capture a 33% market share, possibly a conservative figure in view of Abbott's stated expectation (expressed during litigation) that Microbix will take up to 70% of the market.
Microbix specializes in developing and manufacturing tissue culture- derived biologicals for an emerging world market for biotherapeutic drugs and animal health products. It makes reagents for building diagnostic products and tools used in biotechnology research.
The company has expertise in advanced culture, purification and process validation technologies. Its objective during the next decade is to become a major force in what is expected to be a $3 billion generic biotherapeutics market in North America.
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. 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. |
