Expansion of Capacity for Manufacturing of QAPs & DxTM

MISSISSAUGA, CANADA, February 15, 2022 – Microbix Biosystems Inc. (TSX: MBX, OTCQX: MBXBF, Microbix®), a life sciences innovator and exporter, announces progress with expanding manufacturing capacity of its portfolio of Quality Assessment Products (“QAPs™”) and its “DxTM™” brand viral transport medium – via renovating and equipping its second and third manufacturing sites in Mississauga, ON.

First, the final laboratory in Microbix’s second production site, at 235 Watline Ave., is now validated to accommodate automated and larger-scale manufacturing of FLOQSwab®-based and liquid-formatted QAPs, as well as ongoing DxTM production. This validation completes the build-out of this site, which now contains two production labs and a QC lab, along with the majority of Microbix’s administrative offices.

Second, renovations have now commenced at Microbix’s third site, at 275 Watline Ave. This site is being re-engineered to accommodate larger-scale production of DxTM and build-out will be largely completed in the current fiscal quarter. Initially, Microbix’s high-throughput, semi-automated production process will be installed in this site, to be quickly followed by more-automated production as soon as the necessary equipment is received and validated for use, expected in the quarter ending June 30, 2022.

The goal of building-out and equipping these two sites is to expand production capacity for both QAPs and DxTM by five to tenfold current levels. For QAPs, production in such larger quantities will better enable the manufacture of FLOQSwab-based QAPs as in-kit controls for leading diagnostic test-makers. For DxTM, greater production will enable Microbix to offer strategic quantities of this viral transport medium to governments and private industry buyers beyond Ontario. These initiatives were aided by funds from the Ontario Together Fund (OTF) of Ontario’s Ministry of Economic Development, Job Creation and Trade (MEDJCT) and the Federal Economic Development Agency for Southern Ontario (FedDev Ontario).

Microbix now occupies approximately 35,000 square feet across its three adjacent sites at 235, 265 and 275 Watline Ave. in Mississauga, Ontario, Canada. The majority of space within its sites is devoted to the manufacture of test kit ingredients (antigens), DxTM, and QAPs. A skilled staff of more than 100 is employed in making Microbix’s products, which are critical for supporting public health in Ontario, across Canada, and around the world. Sales in fiscal 2021 reached C$ 18.6 million and are targeted to grow substantially for fiscal 2022 and beyond.

Dr. Ken Hughes, Microbix’s Chief Operating Officer, commented, “Our manufacturing spaces at 235 Watline have been designed to support our nearer-term scaling objectives for QAPs. We’re entirely committed to enabling Microbix to make QAPs at the volumes needed to support global-scale test-makers. With respect to DxTM, we are commissioning custom-designed production and warehousing spaces at 275 Watline. Dedication of our third site for DxTM production is intended to provide Ontarians and Canadians a secure and strategic-scale supply of this vital patient-sample collection device.”

About Microbix Biosystems

Microbix develops proprietary biological technology solutions for human health and well-being, with about 100 skilled employees and sales nearing C$ 2.0 million per month. It makes a wide range of critical biological materials for the global diagnostics industry, notably antigens for immunoassays and its laboratory quality assessment products (QAPs™) that support clinical lab proficiency testing, enable assay development and validation, or help ensure the quality of clinical diagnostic workflows. Microbix antigens enable the antibody tests of over 100 international diagnostics companies, while its QAPs are sold to clinical laboratory accreditation organizations, diagnostics companies, and clinical laboratories. Microbix QAPs are now available in over 30 countries, distributed by 1WA (Oneworld Accuracy Inc.), Alpha-Tec Systems, Inc., Diagnostic International Distribution SpA., Labquality Oy, The Medical Supply Company of Ireland, R-Biopharm AG, SDT Molecular Pte Ltd,  Seegene Canada Inc., and Thomas Scientific LLC. Microbix is ISO 9001 and 13485 accredited, U.S. FDA registered, Australian TGA registered, Health Canada establishment licensed, and provides CE marked products.

Microbix also applies its biological expertise and infrastructure to develop other proprietary products and technologies, most notably viral transport medium (DxTM™) to stabilize patient samples for lab-based molecular diagnostic testing and Kinlytic® urokinase, a biologic thrombolytic drug used to treat blood clots. Microbix is traded on the TSX and OTCQX, and headquartered in Mississauga, Ontario, Canada.

Forward-Looking Information

This news release includes “forward-looking information,” as such term is defined in applicable securities laws. Forward-looking information includes, without limitation, discussion of production capacity or facilities expansions and their relevance or timing, Microbix’s business and business results, goals or outlook, risks associated with financial results and stability, development projects such as those referenced in its corporate presentation, regulatory compliance and approvals, sales to foreign jurisdictions, engineering and construction, production (including control over costs, quality, quantity and timeliness of delivery), foreign currency and exchange rates, maintaining adequate working capital and raising further capital on acceptable terms or at all, and other similar statements concerning anticipated future events, conditions or results that are not historical facts. These statements reflect management’s current estimates, beliefs, intentions and expectations; they are not guarantees of future performance. The Company cautions that all forward-looking information is inherently uncertain and that actual performance may be affected by a number of material factors, many of which are beyond the Company’s control. Accordingly, actual future events, conditions and results may differ materially from the estimates, beliefs, intentions and expectations expressed or implied in the forward-looking information. All statements are made as of the date of this news release and represent the Company’s judgement as of the date of this new release, and the Company is under no obligation to update or alter any forward-looking information.

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Copyright © 2022 Microbix Biosystems Inc.     

Microbix®, DxTM™, Kinlytic®, and QAPs™ are trademarks of Microbix Biosystems Inc.

FLOQ®, and FLOQSwab® are trademarks of Copan Italia S.p.A.