Newsroom

Microbix Reports Strong Second Quarter Results

Quarterly Revenues Increase 8%; Sales up 31% in Last 6 Months;  Pipeline Products Move Closer to Final Funding Arrangements

TORONTO, May 12, 2012 — Microbix Biosystems Inc. (TSX: MBX), a biotechnology company commercializing virology and novel biotechnologies, today reported strong financial results for the second quarter of fiscal 2012.  For the quarter ended March 31, 2012, Microbix reported revenues of   $1,896,947 an 8% increase from $1,761,905 for the same quarter in 2011. In the first half of the fiscal year, sales were up 31% compared to the same period in 2011, due primarily to growing customer demand.  The improvement in sales for the first half of the fiscal year is particularly noteworthy given the strength of the Canadian dollar measured against the currencies that most of its customers use to conduct trade, namely  the US dollar and the Euro.

Cost of Sales was $933,275 for the quarter compared to $799,463 in 2011 due to higher sales.  Operating Expenses were $1,573,097 compared to $1,591,528 for the same period in 2011.  These results have contributed to a lower operating loss for the quarter of $609,425compared to $629,086 for the same quarter last year. Changes in manufacturing processes implemented during the period are expected to generate significant cost efficiencies in the future.

Pipeline Products Advance

Microbix and Zydus Cadila, a global pharmaceutical company, are now negotiating final terms of the definitive agreement for the re-introduction of Urokinase to the US market under the name Kinlytic.  Pursuant to the agreement, all costs associated with the launch of this important thrombolytic therapy will be funded by Zydus Cadila, with Microbix  receiving milestone payments and royalty payments on all Zydus Cadila sales of Kinlytic. 

 William J. Gastle, Microbix’ Chief Executive Officer, updated investors on the two other pipeline products, which moved closer to final funding agreements. Mr. Gastle said, “We are working with a group of potential investors to raise the funds needed to underwrite the cost of an influenza vaccine facility in a new partner country. The core of this new project will be VIRUSMAX®, Microbix’ technology that dramatically increases vaccine production yields.

 With new funding on the near-term horizon, Microbix has retained its internationally proven management team and the leading engineering and OEM firms to deliver the project.  Microbix will offer a turnkey influenza vaccine business model to the host country that seeks to significantly expand their immunization program. The new partner country will receive a WHO compliant cost-competitive flu vaccine site that is capital efficient.” 

 Gastle added, “I am also pleased to tell you that we are in advanced negotiations to complete financing for the final development of LumiSort, our breakthrough product for artificial livestock insemination. We expect to share positive news in the near future.  Meanwhile, the work continues on expanding LumiSort’s intellectual property.  LumiSort holds significant potential value for the Company and management is working to ensure that we maximize shareholder returns.”

 Please visit www.sedar.com for recent Microbix Biosystems, Inc. filings on its pipeline products and financial information.

 Financial Highlights

About Microbix Biosystems

Microbix Biosystems Inc. specializes in the development of advanced biotechnologies, and markets virology and biological technologies worldwide. The Company has intellectual property for a large market biotherapeutic drug, a vaccine technology and an animal reproduction technology. Microbix supplies customers in the U.S., Europe, and Asia. Established in 1988, Microbix is headquartered in Toronto.

Disclaimer

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 development projects, operations in foreign jurisdictions, risks associated with engineering and construction generally, risks associated with production including control over costs, quality, quantity and timeliness of delivery of products, foreign currency and exchange rate risk, and risks of raising capital on acceptable terms or at all.  These forward-looking statements represent the Companies’ judgment as of the date of this press release. The Company disclaims any intent or obligation to update these forward-looking statements.

 %SEDAR: 00004220E For further information:

Visit www.microbix.com or contact: William J. Gastle, CEO, (416) 234-1624 x 230; or James Long, CFO, (416) 234-1624 x 265.

Sexed Semen Patent Decision Positive For Microbix

Patent On The Freezing Of Sexed Semen Falls

TORONTO, May 4, 2012 – Microbix Biosystems Inc. (TSX:MBX), a biotechnology company developing a pipeline of innovative biological technologies and products including LumiSort® sperm sexing technology, received an announcement yesterday from the European Patent Office that the “Frozen sperm/XY” patent has been revoked by its Technical Board of Appeal.

The patent, EP1257168, was one of a family of closely related patents held in several countries by Inguran LLC (doing business as Sexing Technologies LLC and XY LLC) relating to the use of cryopreservation technology for sperm cells sorted into sex-selected populations. It was challenged in Europe by opponents including Greenpeace e.V. and Member of the European Parliament Mrs. Hiltrud Breyer. Microbix participated in the opposition proceedings through the direct submission of third-party observations regarding the validity of the patent.

William J. Gastle, Chairman and Chief Executive Officer, reflected on the European decision. “Microbix has maintained that the Freezing Patent was not a significant or valid obstacle to the entry of LumiSort sexed semen into the artificial insemination industry,” said Gastle. “Our participation in the European action allowed us to support the determination that the Inguran Freezing Patent is invalid in Europe, and our belief that similar determinations will be made elsewhere. This decision confirms our belief that there are no barriers to marketing sexed semen and will send a strong signal to the industry that LumiSort will come to market.”

Cryopreservation of sperm cells is a technology that has been practiced in the artificial insemination industry for over 50 years. By maintaining the long-term viability and fertility of cells in the frozen state, cryopreservation technology has enabled the growth of a global artificial insemination industry for the dairy and beef sectors in excess of $1.5 billion annually.

Microbix is currently developing LumiSort, a next-generation instrument-based (cytometric) technology, for the preparation of sex-selected sperm cell preparations. LumiSort will provide the artificial insemination industry with a 3-fold increase in sperm cell yield and a 10-fold increase in the speed of production, while increasing the fertility of the sexed sperm cell product. Further information on LumiSort technology is available at http://lumisort.com.

About Microbix Biosystems Inc.

 Microbix Biosystems Inc. specializes in the development of the most advanced vaccine production technology and markets virology and biological products worldwide. The Company has intellectual property in large market biotherapeutic drugs, vaccine technologies and animal reproduction technologies. Microbix supplies customers in the U.S., Europe, and Asia. Established in 1988, Microbix is headquartered in Toronto.

Disclaimer

 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 commercializing the technologies, including sales which 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 the ability to license LumiSort to industry; risks associated with failure to develop and commercialize LumiSort; non-adoption of LumiSort; competition in the animal health and related markets; reliance by Microbix on third parties for the development and manufacture of LumiSort instrument; 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 of operating in foreign jurisdictions, including operating in countries with evolving legal and economic infrastructure; high rates of inflation; changes in taxation policies, 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.

 %SEDAR: 00004220E

For further information:

Visit www.microbix.com or contact: William J. Gastle, CEO, (416) 234-1624 x 230; or James Long, CFO, (416) 234-1624 x 265.

Microbix Closes Private Placement

 Funds For Advancing Pipeline Products; Strong Second Quarter Sales

 TORONTO, March 29, 2012/CNW/ – Microbix Biosystems Inc. (TSX:MBX) (“Microbix” or the “Company”), a company focused on virology and biological technologies, announces the closing of  a private placement financing resulting in the issuance of 2,893,516 Units at a price of $0.27 per Unit for gross proceeds of $781,250. Each Unit consists of one common share of Microbix and one common share purchase warrant. Each whole Warrant entitles the holder to purchase one additional common share at an exercise price of $0.40 for 24 months.

 Four insiders of the Company participated in the financing by purchasing an aggregate of 499,999 Units.  The financing was non-brokered.  An aggregate of 97,125 Finders Warrants were issued. Each Finders Warrant entitles the holder to purchase one Unit at a price of $0.36 per Unit for a period of 24 months. The securities issued in the private placement are subject to a hold period of four months and one day from the date of issue. The private placement remains subject to the final approval of the Toronto Stock Exchange.

 William J. Gastle, Microbix’ Chief Executive Officer offered the following brief update regarding key initiatives within the Company. “ Zydus is continuing its due diligence process in connection with its interest in Urokinase. We are seeing strong market interest in Lumisort and negotiations for financing that project are moving forward. Much to our satisfaction, there are ongoing discussions with a new country to adopt and launch the Influenza Vaccine Joint Venture. Finally, our Virology business is also experiencing growth, with second quarter sales stronger than 2011 levels”

 Mr. Gastle then added “The funds from the current private placement will be used to support the very important long-term opportunities I have mentioned and will help the Company to achieve its goal to be cash-flow positive by the end of this year”.

 The securities described herein have not been and will not be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States or to a U.S. Person absent an exemption from the registration requirements.

 The Toronto Stock Exchange does not accept responsibility for the adequacy or accuracy of this release.

 About Microbix Biosystems Inc.

Microbix Biosystems Inc. specializes in the development of the most advanced vaccine production technology and markets virology and biological products worldwide. In addition, The Company has intellectual property in large market biotherapeutic drugs, vaccine technologies and animal reproduction technologies. Microbix supplies customers in theU.S., Europe, andAsia. Established in 1988, Microbix is headquartered inToronto.

 Disclaimer

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 development projects, operations in Foreign jurisdictions, risks associated with engineering and construction generally, risks associated with production including control over costs, quality, quantity and timeliness of delivery of products, foreign currency and exchange rate risk, and risks of raising capital on acceptable terms or at all.  These forward-looking statements represent the Companies’ judgment as of the date of this press release. The Company disclaims any intent or obligation to update these forward-looking statements

 %SEDAR: 00004220E

 For further information:

Visit www.microbix.com or contact: William J. Gastle, CEO, (416) 234-1624 x 230; or James Long, CFO, (416) 234-1624 x 265.

BioTuesday article discusses Microbix’ potential across all lines of business

Microbix Biosystems (TSX:MBX) is in the process of completing financing and licensing arrangements in its three pipeline businesses, with the goal of putting them on their own financial footing and making Microbix cash flow positive as it exits fiscal 2012 on Sept. 30.

“We are making good progress towards closing partnerships that will offload the costs of our pipeline activities,” Phil Casselli, president of Microbix, says in an interview with BioTuesdays.com, referring to the overhead the company is now carrying for its LumiSort livestock semen sexing technology, its VIRUSMAX influenza vaccine business and its Kinlytic-urokinase thrombolytic agent.

For more, click through to read the full article on BioTuesday.

Sierra Desert Breeders signs with Microbix to market LumiSort

We’re proud to announce that Sierra Desert Breeders, Inc. (SDB) has signed an agreement with Microbix to market LumiSort sexed semen.

Eric Danzeisen, co-owner of SDB, says, “We partnered with Microbix because we are confident that this new technology is going to surpass the outdated sexing techniques currently available and will help our company grow into a global supplier of dairy and beef semen.”

For more on Sierra Desert Breeders, click through to the full press release.

Lumisort Receives Overwhelming Response at World AG Expo 2012

Although the World AG Expo 2012 wrapped up on February 16th, the positive feedback is continuing to land in our mailbox. The latest post related to our product launch comes courtesy of Eric Danzeisen of Sierra Desert Breeders. Full post copied below but we suggest clicking the link to read through the comments for the inspired commentary!

—

Source: Fun With Bulls: Microbix LumiSort Sexed Semen

Introducing Microbix LumiSort Sexed Semen at the World Ag Expo was an amazing experience!

Here are a few quick observations that I noticed:

• The interest that dairymen have in LumiSort is amazing.
• Dairymen all over the world wanting to do trials on LumiSort
• Dairymen are thinking of how to manage LumiSort already
• The encouragement other studs gave me to proceed took me of guard
• We will run out of semen because of demand when LumiSort is released
• Need to take care of current customers FIRST when this technology is in the field

More info to come soon.  Just wanted to get this out while it was fresh on my mind!

Microbix’ LumiSort® Patent Withstands Competitive Challenge

Microbix files second patent for its livestock semen sexing technology and signs new distribution agreements.

Technology on track to enter potential $3 billion market in 2013.

TORONTO, February 15, 2012 – Microbix Biosystems Inc. (TSX:MBX), a biotechnology company developing a pipeline of innovative biological technologies and products, announced today that the U.S. Patent & Trademark Office (USPTO) has denied a request brought by the current market leader for livestock sexed semen to re-examine fundamental claims in Microbix’ patent for LumiSort® technology, Microbix’ revolutionary advance in livestock artificial insemination.

 LumiSort, the next-generation instrument-based (cytometric) technology, expected to enter the $3 billion market for sexed semen in the second half of 2013, will provide livestock producers around the world with a 3-fold increase in yield and a 10-fold increase in speed. More information on LumiSort technology is available on the web at www.lumisort.com.

 Microbix was granted patent protection for LumiSort technology from the USPTO in August of last year. In September, Inguran LLC, the parent of Sexing Technologies, which holds 100% of the market for sexed semen, requested that the USPTO re-examine the LumiSort patent claims. The Patent Office found that there was no basis for the re-examination of broad claims directed to the LumiSort method and system.  As a result, claims in Microbix’ patent embracing aspects of this significant contribution to the field remain enforceable.   

 To further support its dominant patent estate, Microbix today filed a new patent application for second-generation LumiSort technology representing significant advances in ease of use, construction, speed and accuracy of the instrument. Even before market introduction, Microbix has established agreements for licensing its LumiSort technology with more than one-third of the U.S. livestock semen collection centers and also has agreements with collection centers in Canada, Australia, Europe, South America, and China representing more than 40 million straws of the dairy semen sold annually and a market of $ 900 million.

 In January, Microbix signed additional agreements with four new semen collection companies representing an additional six million straws under license that could convert to LumiSort sexed semen.  This could represent additional revenue of $8 million annually within three years of launch.  The companies are located in northern and southern Europe, Southeast Asia and the U.S. giving LumiSort a presence in all corners of the world. All agreements include royalty payments to Microbix of 15% of sales of sexed semen and combined could represent more than $100 million annually in revenues.

 Eric Danzeisen, co-founder of a California artificial insemination organization, Sierra Desert Breeders, said, “We partnered with Microbix because we are confident that this new technology is going to surpass the outdated sexing techniques currently available and will help our company grow into a global supplier.  Because high quality sexed semen is the number one factor in growing our business, we’re enthusiastic in our anticipation of the advances LumiSort will bring to the industry.”

 William J. Gastle, Chief Executive Officer, said “The current generation of instruments subjects delicate livestock sperm cells to rapid pressure changes, electrical charges, and high velocity impacts which ultimately impacts fertility rates. LumiSort overcomes these limitations. For this reason, we anticipate that LumiSort sexed semen will have much higher fertility rates than the currently available products and will become the market leader within three years of launch.”

 Microbix is in advanced discussions with a number of strategic partners to fund the final development and commercialization steps of LumiSort technology, which has no regulatory barriers to market entry.  Microbix has confirmed a market potential for LumiSort that will raise in excess of $3 billion with this effective semen sexing technology. Microbix expects to become market leader by revolutionizing practices in the livestock artificial insemination industry within three years of launch.

 About Microbix Biosystems Inc.

 Microbix Biosystems Inc. specializes in the development of the most advanced vaccine production technology and markets virology and biological products worldwide. The Company has intellectual property in large market biotherapeutic drugs, vaccine technologies and animal reproduction technologies. Microbix supplies customers in the U.S., Europe, and Asia. Established in 1988, Microbix is headquartered in Toronto. LumiSort is a registered Trademark of Microbix Biosystems Inc.

 Disclaimer

 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 commercializing the technologies, including sales which 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 the ability to license LumiSort to industry; risks associated with failure to develop and commercialize LumiSort; non-adoption of LumiSort; competition in the animal health and related markets; reliance by Microbix on third parties for the development and manufacture of LumiSort instrument; 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 of operating in foreign jurisdictions, including operating in countries with evolving legal and economic infrastructure; high rates of inflation; changes in taxation policies, 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.

%SEDAR: 00004220E

 For further information:

 Visit www.microbix.com or contact: William J. Gastle, CEO, (416) 234-1624 x 230; or James Long, CFO, (416) 234-1624 x 265.

Microbix Reports Very Strong First Quarter Results

Company Enters Attractive Long Term Arrangement to Fully Fund Urokinase Return to Market

 TORONTO, February 14, 2012 — Microbix Biosystems Inc. (TSX: MBX), a biotechnology company commercializing virology and novel biotechnologies, today reported robust financial results for the first quarter of fiscal 2012.  For the quarter ended December 31, 2011, Microbix reported revenues of $1,474, 511 an 80% increase from $812,694 for the same quarter in 2011 reflecting a return to normal customer demand compared to the one-time decline in sales for the same period in 2011.

Cost of Sales was $832,723 for the quarter compared to $429,080 in 2011 due to higher sales.  Operating Expenses were $1,159,533 million compared to $1,117,974 million 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 commercialization with its partners. These results have contributed to a lower operating loss for the quarter of $517,745 compared to $734,360 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 conditions. This is a credit to the safety and efficacy of the molecule, and Microbix’ untiring efforts to restore a much valued therapy to the medical community. 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.”

Gastle added, “We continue to strive to build shareholder value across all business units by maximizing manufacturing efficiency and sales growth, strengthening our intellectual property assets, and building pipeline product partnerships to implement those assets.”

Please visit www.sedar.com for recent Microbix Biosystems, Inc. filings on its pipeline products and financial information.

Financial Highlights

 About Microbix Biosystems

Microbix Biosystems Inc. specializes in the development of the most advanced vaccine production technology and markets virology and biological products worldwide. Microbix, in partnership with theHunangovernment inChina, is planning to buildAsia’s largest and most advanced vaccine facility. In addition, The Company has intellectual property in large market biotherapeutic drugs, vaccine technologies and animal reproduction technologies. Microbix supplies customers in theU.S., Europe, andAsia. Established in 1988, Microbix is headquartered inToronto.

Disclaimer

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 development projects, operations in Foreign jurisdictions, risks associated with engineering and construction generally, risks associated with production including control over costs, quality, quantity and timeliness of delivery of products, foreign currency and exchange rate risk, and risks of raising capital on acceptable terms or at all.  These forward-looking statements represent the Companies’ judgment as of the date of this press release. The Company disclaims any intent or obligation to update these forward-looking statements.

%SEDAR: 00004220E

For further information:

Visit www.microbix.com or contact: William J. Gastle, CEO, (416) 234-1624 x 230; or James Long, CFO, (416) 234-1624 x 265.

Microbix and Zydus Cadila Reach Agreement to Market Urokinase, A Critical Care Therapy In North America

TORONTO/AHMEDABAD, Jan. 6, 2012 /CNW/ – Microbix Biosystems Inc. (TSX: MBX), a biotechnology company commercializing novel technologies and Zydus Cadila, a global pharmaceutical company headquartered in India, today reported that they have signed a Letter of Intent to market the Thrombolytic drug, Urokinase in the North American markets. The estimated market size for Urokinase use in the U.S. alone is expected to touch $400 million by 2020 between three indications:  pulmonary embolism, catheter clearance and catheter prophylaxis.  The same active pharmaceutical ingredient can be used in new and even larger indications in oncology and ophthalmology.

Urokinase, a successful thrombolytic drug, was first approved in the U.S. in 1978 for pulmonary embolism (blockage in the arteries supplying blood to the lungs) and coronary occlusion (blockage in the vessels which carry blood to the heart). It was used substantially off label for dissolving large peripheral thrombi (clotting in the arteries which supply blood to the limbs) in arms and legs, and until 1998 it was the standard of care for catheter clearance where it is used to re-establish flow in occluded biomedical catheters. Over 4 million patients have been treated successfully with Urokinase. Many physicians remain loyal to Urokinase due to the drug’s superior and well-documented safety profile as well as cost and efficacy. The drug was withdrawn from the market for 3 years from 1999 to 2002 for reasons unrelated to product performance.  Urokinase was acquired by Microbix in 2008 which has since then stepped up efforts to re-introduce the drug in North America.

William J. Gastle, Chief Executive Officer, Microbix Biosystems said: “Microbix has been the champion of Urokinase and we are committed to returning this life saving therapy to physicians and patients. We have been investing to rebuild this franchise including manufacturing infrastructure, raw materials, and technical expertise, in addition to acquiring the approved NDA’s for bothCanadaand theUSmarkets. With Zydus, we now have a strong commercial partner to help us realize our objective.”

The Ontario-based, Microbix Biosystems Inc., specializes in the development of biological technologies and markets virology and biological products worldwide. The company’s expertise ranges from influenza vaccine manufacturing, an animal reproduction technology for semen sexing, and to a virology products business supplying to diagnostic and pharmaceutical companies worldwide.

Pankaj Patel, Chairman and Managing Director of Zydus Cadila said, “We have been investing in novel technologies, particularly in the area of biotechnology and have also been exploring partnerships to bring critical care therapies to the marketplace. Microbix’ Urokinase strengthens our critical care portfolio and enhances our ability to globalize our capabilities”.

Zydus Pharmaceuticals USA Inc., the group’s subsidiary in the US is ranked 12th amongst the top generic companies in the US. 51 million prescriptions are dispensed with Zydus generics in the US annually. The company is among the top 3 players in the US market for 9 out of the 10 products marketed.

In the last two years Microbix reported that the discussions on Urokinase have been underway with various potential industry partners. The terms of the agreement between both the companies requires Zydus to provide the funding needed to re-launch the drug in theUSandCanada, including an initial commitment, plus milestone based payments.  Microbix will also receive a milestone payment upon reaching a certain sales target and will be guaranteed a margin plus earn a royalty fee based on sales. Zydus will receive an option on the rights to all future indications including in the areas of oncology and ophthalmology.

Gastle added, “The immediate impact will include the financial support and regulatory expertise that Zydus will bring to implementing the business plan for re-launching the drug. Zydus has very experienced regulatory staff that will assist Microbix in guiding the file through the FDA and HealthCanada”. The Companies expect a definitive agreement to be signed early in 2012.  The anticipated timeline for approval is late 2014.

One of the key opinion leaders on Urokinase is Dr. Ken Ouriel former Chairman, Division of Surgery at the Cleveland Clinic and former Senior V-P, International Operations, Presbyterian Hospital, New York, stated, “Urokinase was our workhorse agent for dissolving clots within arteries and veins until it became unavailable.  Physicians felt very comfortable with its margin of safety and would welcome its long-overdue return to the marketplace”.

In October 2011 Microbix received approval for a Base Shelf Prospectus to help fund its product development pipeline including Urokinase. The consummation of this agreement will reduce the need for funds to be raised and, consequently, the Prospectus will be amended to reflect Zydus’ funding for Urokinase.

About Microbix Biosystems

Microbix Biosystems Inc. specializes in the development of biological technologies and markets virology and biological products worldwide. The Company has intellectual property in large market products including an FDA approved biotherapeutic drug, a proprietary vaccine technology and an animal reproduction technology. Microbix supplies customers in the U.S. Europe, andAsia. Established in 1988, Microbix is headquartered inMississauga,Ontario,Canada.

About Zydus Cadila

Zydus Cadila is an innovative global pharmaceutical company that discovers, develops, manufactures and markets a broad range of healthcare products. The group’s operations range from API to formulations, animal health products and cosmeceuticals. Headquartered in the city ofAhmedabadinIndia, the group has global operations in four continents spread acrossUSA,Europe,Japan,Brazil,South Africaand 25 other emerging markets. The group has been one of the fastest growing healthcare companies in recent years and reported 41% growth in profits for 2010-11. Revenues were in excess of US$ 1 billion. In its mission to create healthier communities globally, Zydus Cadila delivers wide ranging healthcare solutions and value to its customers. With over 13,500 employees worldwide, a world-class research and development centre dedicated to discovery research and eight state-of-the-art manufacturing plants, the group is dedicated to improving people’s lives.

Disclaimer

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 development projects, operations in Foreign jurisdictions, risks associated with engineering and construction generally, risks associated with production including control over costs, quality, quantity and timeliness of delivery of products, foreign currency and exchange rate risk, and risks of raising capital on acceptable terms or at all.  These forward-looking statements represent the Companies’ judgment as of the date of this press release. The Company disclaims any intent or obligation to update these forward-looking statements.

For further information:

Visit www.microbix.com or contact: William J. Gastle, CEO, (416) 234-1624 x 230; or James Long, CFO, (416) 234-1624 x 265.

For further information:

Visit http://www.zyduscadila.com/

Microbix Reports 2011 Results

 Microbix Biosystems Inc. Reports Results for Q4 and Fiscal 2011   

TORONTO, Dec. 21, 2011 CNW/ – Microbix Biosystems Inc. (TSX: MBX), a biotechnology company commercializing novel technologies for influenza vaccine manufacturing, the thrombolytic drug Urokinase,  and an animal reproduction technology for semen sexing, in addition to a Virology products business supplying diagnostic, research and pharmaceutical companies worldwide, today reported financial results for fourth quarter and full year 2011. For the fiscal year ended September 30, 2011, Microbix reported revenues of $6,228,292, a 4% decrease compared to 2010. For fourth quarter 2011, revenues were $2,137,782 compared to revenues of $2,220,750 in the same quarter last year.

William J. Gastle, Chief Executive Officer, said: “We are pleased to report continued steady financial performance in the Virology business in spite of a challenging global economy and a strong Canadian dollar. Our Virology business continues to be solidly profitable”.  He added, “Overall results were hampered by the expenses for LumiSort development and by the unplanned ongoing costs for the China vaccine venture; however, we expect both of these projects to be externally funded in the year ahead.” 

 Microbix’ operating losses were attributable to the three key pipeline projects, which continued to be funded through virology business profits and augmented by equity financings during the year. The original successful financing of the Hunan Joint Venture was later reversed after Microbix’ Chinese partner unexpectedly refused to honour key terms of the Joint Venture Agreement, signed in 2008. The expenses associated with China were absorbed by Microbix in 2011. Continued investment in LumiSort by Microbix contributed to operating losses in advance of additional partner financing for this project.  Finally, Urokinase partnering discussions with potential industry investors continued during the year with Microbix absorbing the related operating costs.

Microbix expects all three pipeline projects will be financed in 2012 as it completes additional partnership agreements to help bring these products to market. Notwithstanding the global financial markets, the industries that the Company’s large market pipeline will serve, continue to seek innovative products and technologies that offer commercial advantages, which is Microbix’ strength. 

Other Financial Highlights

For the year ended September 30, 2011, Microbix recorded a net loss of $2,613,740 or 5 cents a share compared to the loss of $2,538,449, or a 5 cent a share loss in fiscal 2010. A loss of $505,142 was recorded in the fourth quarter compared to a profit of $29,716 in 2010. Cash flow for the quarter improved slightly but was still negative; however the burn rate declined $680,619 for the full year primarily due to equity financing.

 About Microbix Biosystems

Microbix Biosystems Inc. specializes in the development of biological technologies and markets virology and biological products worldwide. The Company has intellectual property in large market products including an FDA approved biotherapeutic drug, a proprietary vaccine technology and an animal reproduction technology. Microbix supplies customers in the U.S. Europe, and Asia. Established in 1988, Microbix is headquartered in Mississauga, Ontario, Canada.

Disclaimer

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 development projects, operations in Foreign jurisdictions, risks associated with engineering and construction generally, risks associated with production including control over costs, quality, quantity and timeliness of delivery of products, foreign currency and exchange rate risk, and risks of raising capital on acceptable terms or at all.  These forward-looking statements represent the Companies’ judgment as of the date of this press release. The Company disclaims any intent or obligation to update these forward-looking statements.

%SEDAR: 00004220E

For further information:

Visit www.microbix.com or contact: William J. Gastle, CEO, (416) 234-1624 x 230; or James Long,

CFO, (416) 234-1624 x 265.

 – 30 –