Microbix Biosystems Inc. (
TSX: MBX, OTCQX: MBXBF,
Microbix®), a life sciences innovator, manufacturer, and
exporter, reports results for its second quarter and first half of
fiscal 2024 ended March 31, 2024 (“
Q2” and
“
H1”), with strong growth in sequential and
year-over-year quarterly revenues, reflective of ongoing progress
to increase sales from its diagnostic-test related ingredients and
devices businesses and resulting in net income for Q2 and H1.
Management DiscussionResults
for Q2 show robust growth in sales of Microbix’s test ingredients
(“Antigens”) and test quality assessment products
(“QAPs™”), which were collectively up by 34%
versus prior year. The resulting revenues of over C$ 5.6 million
led to meaningful net earnings and continue to set the stage for a
record full-year fiscal 2024. Microbix believes sales growth will
continue for Antigens and QAPs, alongside satisfactory progress of
Kinlytic toward FDA re-approval and re-launch into the U.S.
market.
Quarter ending March 31, 2024
(“Q2”)Q2 revenue was $5,632,901, a 34% increase from Q2
2023 revenues of $4,218,323. Antigen sales grew by 37% to
$4,111,462 (2023 - $3,004,730), while QAPs grew by 27% to
$1,399,596 (2023 - $1,101,684). Revenue from royalties increased to
$121,843 (2023 - $111,910).
Q2 gross margin was 53%, down from Q2 2023 gross
margins of 60%. Gross margins were primarily impacted by product
mix and and increased weighting of Antigen revenues during the
quarter. Operating and finance expenses in Q2 increased by 4%
relative to Q2 2023 . Q2 costs reflect the ongoing costs of our IT
systems upgrades which began in the latter half of fiscal 2023 and
amortization charges relating to the reversal of the impairment of
the Kinlytic intangible asset which began at the end of fiscal
2023.
Increased sales and higher gross margin dollars
led to an operating income and net income of $377,730 versus a Q2
2023 operating income and net income of $31,616. Cash provided by
operating activities was $839,245, compared to cash used in
operating activities of ($1,055,856) in Q2 2023.
Period ending March 31, 2024
(“H1”)H1 revenue was $14,040,785, a 109% increase from H1
2023 revenues of $6,720,395. Included were antigen revenues of
$6,065,138 (2023 - $4,008,537), up 51% from last year. QAPs
revenues of $3,647,832 were up 51% from H1 2023 (2023 -
$2,435,186), due in large part to the more than doubling of sales
of our branded PROCEEDx® and REDx™ QAPs products. Revenue from
royalties were $241,155 (2023 - $276,672).
H1 revenues were also greatly influenced by the
recognition of $4,086,000 in Kinlytic licensing milestone payments
(2023 – nil). In summary, the H1 2024 sales growth result was
driven by Kinlytic licensing revenues and significant growth in
both our Antigens and QAPs businesses.
H1 gross margin was 65%, up from 55% in H1 2023,
primarily due to the impact of Kinlytic licensing revenues and
stronger QAPs revenues. Operating expenses in H1 increased by 28%
relative to H1 2023, principally due to US$ 500,000 in
investment-banking fees related to our Kinlytic licensing agreement
that were absorbed into G&A in accordance with IFRS accounting
practices. In addition, H1 costs reflect the on going costs of our
IT systems which began in the latter half of fiscal 2023 and
amortization relating to the reversal of the impairment of the
Kinlytic intangible asset, which began at the end of fiscal
2023.
Overall, strong H1 revenues led to an operating
income and net income of $2,833,109 versus a H1 2023 operating loss
and net loss of $1,267,647. Cash provided by operating activities
was $2,178,196, compared to cash used in operating activities of
$1,769,723 in H1 2023, with much of the change coming from
operating income and changes in working capital balances during the
period.
At the end of Q2, Microbix’s current ratio
(current assets divided by current liabilities) was 6.64 and its
debt to equity ratio (total debt over shareholders’ equity) was
0.37, both measures having improved from the prior year second
quarter (Q2 2023) and the preceding fiscal year end (Q4 2023).
FINANCIAL HIGHLIGHTS |
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Three months ended |
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Six months ended |
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For the
three months and six months ended |
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March 31, 2024 |
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March 31, 2023 |
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March 31, 2024 |
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March 31, 2023 |
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Total Revenue |
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$ |
5,632,901 |
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$ |
4,218,323 |
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$ |
14,040,785 |
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$ |
6,720,395 |
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Gross Margin |
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2,970,969 |
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2,527,280 |
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9,193,301 |
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3,713,255 |
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SG&A Expenses |
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2,016,032 |
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1,878,420 |
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5,184,281 |
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3,841,622 |
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R&D Expense |
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495,881 |
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525,925 |
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980,100 |
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950,883 |
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Financial Expenses |
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81,326 |
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91,319 |
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195,811 |
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188,397 |
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Operating
Income (Loss) for the period |
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377,730 |
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733,489 |
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2,833,109 |
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1,614,267 |
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Net Income
(Loss) and Comprehensive Income (Loss) for the period |
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377,730 |
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31,616 |
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2,833,109 |
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(1,267,647 |
) |
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Cash
Provided (Used) by Operating Activities |
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839,245 |
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(1,055,856 |
) |
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2,178,196 |
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(1,769,723 |
) |
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As at |
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March 31, 2024 |
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September 30,
2023 |
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Cash |
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12,873,087 |
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11,606,487 |
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Accounts receivable |
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4,407,630 |
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4,119,771 |
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Total current assets |
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24,683,176 |
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22,302,006 |
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Total assets |
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37,922,214 |
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35,653,024 |
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Total current liabilities |
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3,718,551 |
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4,349,942 |
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Total liabilities |
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10,165,806 |
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11,028,537 |
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Total shareholders' equity |
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27,756,408 |
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24,624,487 |
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Current ratio |
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6.64 |
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5.13 |
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Debt to equity ratio |
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0.37 |
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0.45 |
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Corporate OutlookMicrobix will
continue to drive sales growth across all of its business lines,
and work to keep improving percentage gross margins and driving
bottom-line results. Management currently expects Microbix to
generate meaningful year-over-year growth in revenues and net
earnings across full-year fiscal 2024.
Furthermore, at 10:00 AM ET on Wednesday May
15th, Microbix intends to hold a webinar discussion of Q2 2024
results with its CEO, CFO, and COO.
Investors and shareholders can participate in
the webinar, hosted by Adelaide Capital, by registering at:
https://us02web.zoom.us/webinar/register/WN_imQCaP3DTQC-1oGUSfs85g.
It will also be live-streamed to YouTube at:
https://www.youtube.com/channel/UC7Jpt_DWjF1qSCzfKlpLMWw.
A replay of the webinar will also be made available
on Adelaide Capital’s YouTube channel.
About Microbix Biosystems
Inc.Microbix Biosystems Inc. creates proprietary
biological products for human health, with over 100 skilled
employees and annualized revenues approaching C$ 2.0 million per
month. It enables the worldwide commercialization of diagnostic
assays by making 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 InformationThis
news release includes “forward-looking information,” as such term
is defined in applicable securities laws. Forward-looking
information includes, without limitation, discussion of financial
results or the outlook for the business, risks associated with its
financial results and stability, its current or future products,
development projects such as those referenced herein, 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 many material factors, some
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.
Please visit www.microbix.com or www.sedarplus.ca
for recent Microbix news and filings.
For further information, please contact Microbix
at:
Cameron Groome, CEO(905) 361-8910 |
Jim Currie, CFO(905) 361-8910 |
Deborah Honig, Investor RelationsAdelaide Capital Markets(647)
203-8793 ir@microbix.com |
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Copyright © 2024 Microbix Biosystems Inc.
Microbix®, DxTM™, Kinlytic®, & QAPs™ are trademarks of Microbix
Biosystems Inc.
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