Microbix Q4 revenue jumps 64% to new record

Sales for Microbix Biosystems (TSX:MBX) in the fourth quarter of fiscal 2016 climbed 64% to $3.5-million, representing the highest quarterly revenue ever achieved by the company, from $2.1-million a year earlier.

Net income for the fourth quarter ended Sept. 30, 2016 was $862,930, an increase of 114% from $403,116 in the fourth quarter of fiscal 2015.

Fourth quarter virology sales increased 110% to $3.3-million from $1.6-million a year ago, driven by expanded antigen sales in Europe and East Asia.

"Our sales performance in the fourth quarter was slightly better than the preliminary results announced in October," Vaughn Embro-Pantalony, president and CEO, said in a statement. "Now, moving forward into fiscal 2017, we anticipate continued solid revenue growth based on current order projections by our customers."

Microbix also reported total revenue of $9.5-million for all of fiscal 2016, an increase of 7% from $8.9-million in fiscal 2015. Fiscal 2016 was the fifth consecutive fiscal year that the company achieved record total revenue.

"Despite a weak first quarter, we were able to deliver very strong full-year financial results, characterized by the highest-ever total revenue, operating cash flow and net income," Mr. Embro-Pantalony added.

Microbix confirmed that its new bioreactor manufacturing process has been commissioned and is producing commercial product. The company continues to work with its customers to confirm the product meets required validation specifications. When that work is complete, Microbix will be in a position to begin shipping commercial quantities and realize the expected improvements in cost efficiency and production capacity.

Microbix also is continuing development of its new molecular controls product line, including upgrading of manufacturing quality systems, to the new standard required for certification. Microbix expects to launch this new product offering later in 2017.

Advanced partnering discussions continued during the fourth quarter with several parties interested in returning Kinlytic, a thrombolytic drug, to the market. These discussions have reached the stage where management is now preparing to meet with the FDA in early 2017 in order to establish a specific clinical and regulatory pathway to reintroduce of the drug to the U.S. market.

"We have received conditional expressions of interest from several parties willing to contribute funds to return this life saving therapeutic to market,” Mr. Embro-Pantalony said. “I am optimistic we will close a partnership in 2017 to re-launch Kinlytic in the U.S., and possibly additional markets."