Sequel Pharma Executes Agreement with CDMO for Drug Substance Production

MISSISSAUGA, CANADA, March 14, 2024 – Microbix Biosystems Inc. (TSX: MBX, OTCQX: MBXBF, Microbix®), a life sciences innovator, manufacturer, and exporter, announces that its funding and commercialization partner, Sequel Pharma, LLC (“Sequel”), has executed, with support from Microbix, an agreement with a leading international contract development and manufacturing organization (“CDMO”) for production of the active ingredient (i.e., “Drug Substance”) of Kinlytic® urokinase (“Kinlytic”), a biologic drug for dissolving blood clots.

Sequel is a U.S. based specialty pharma company with expertise in developing and commercializing niche drugs. It has committed to provide all funding needed to return Kinlytic to global markets, initially for the US$ 350 million U.S. market for dissolving clots in indwelling venous catheters (“Catheter Clearance”).

Kinlytic is an enzyme derived from human cell cultures that dissolves the material of a blood clot. Kinlytic is already approved for clinical use in the U.S. and the parties’ work is to validate new manufacturing for the drug and to re-enter the market by way of a supplemental biologics licensing application (“sBLA”).

The referenced CDMO agreement is for all actions necessary to resume production of Kinlytic Drug Substance at a scale sufficient for the Catheter Clearance market. The CDMO has undertaken to complete this work over a timeframe specified by Sequel and in line with Microbix’s disclosed project objectives. The work of the CDMO will be overseen by Sequel, with scientific and technical assistance from Microbix.

It is Microbix’s intention to update its shareholders on further Kinlytic-related achievements as they become meaningful. Anticipated future disclosures related to Kinlytic may include, among other matters, successful production of Drug Substance, contracting for manufacture of clinically-formulated drug (“Drug Product”), first production of Drug Product, and clinical, regulatory, or commercial milestones. It is anticipated that Microbix will make two to three Kinlytic-related news release disclosures each year between now and the filing of a sBLA for the project, which may occur in calendar 2026 or 2027.

Cameron Groome, CEO and President of Microbix, commented, “We’re very pleased that a detailed agreement has been executed with a very well-qualified CDMO for the production of new Kinlytic Drug Substance. All parties will now move ahead at full speed to revalidate and restart manufacturing using state-of-the-art methods and best practices.”

Dr. Ken Hughes, COO of Microbix, also commented, “It is a pleasure to be working with Sequel, in this instance to identify and brief well-qualified CDMOs about Kinlytic, and to solicit and receive well-reasoned proposals from several such parties. We thank each of the CDMOs that participated in this Drug Substance contracting process and hope to have the opportunity to work with them on other aspects of this program, or in our future endeavors.”

About Microbix Biosystems Inc.

Microbix Biosystems Inc. creates proprietary biological products for human health, with over 100 skilled employees and annualized sales now targeting C$ 2.0 million per month. It makes a wide range of critical ingredients and devices 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. Its antigens drive the antibody tests of approximately 100 diagnostics makers, while QAPs are sold to clinical lab accreditation organizations, diagnostics companies, and clinical labs. Microbix QAPs are now available in over 30 countries, supported by a network of international distributors. Microbix is ISO 9001 & 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 Kinlytic® urokinase, a biologic thrombolytic drug used to treat blood clots, and reagents or media to support molecular diagnostic testing (e.g., its DxTM™ for patient-sample collection). 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 Sequel, the Agreement, Kinlytic® or its relevance, Microbix’s products or services, business and business results, goals or outlook, risks associated with financial results and stability, development projects such as those referenced in its presentations, regulatory compliance and approvals, sales to foreign jurisdictions, engineering and construction, production (including control over costs, quality, quantity or timeliness of delivery), currency exchange rates, maintaining adequate working capital or raising new capital on acceptable terms or at all, and other similar statements about 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. Microbix cautions that all forward-looking information is inherently uncertain and actual performance may be affected by many material factors, some of which are beyond its 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 Microbix’s judgement as of the date of this new release, and it is under no obligation to update or alter any forward-looking information.

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For further information, please contact Microbix at:

Cameron Groome, CEO
(905) 361-8910
Jim Currie, CFO
(905) 361-8910
Deborah Honig, Investor Relations
Adelaide Capital Markets
(647) 203-8793

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