In This Article:
Release Date: February 13, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Microbix Biosystems Inc (MBXBF) reported strong revenue growth from recurring sales, reaching over $6 million, compared to $4.3 million in the prior year, excluding non-recurring milestone payments.
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The company achieved significant gross margin expansion to 62% from 49% in the previous year, reflecting improved manufacturing efficiencies.
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Microbix Biosystems Inc (MBXBF) successfully expanded its total addressable markets by entering the genetic testing and oncology sectors, enhancing future growth potential.
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The company has initiated a recombinant antigen program, which is expected to significantly expand its market opportunities and drive future growth.
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Microbix Biosystems Inc (MBXBF) maintained a strong cash position, bolstered by warrant and option exercises, providing financial flexibility for future initiatives.
Negative Points
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The company's revenue was impacted by a transient reduction in activity from a test manufacturer, affecting caps revenue.
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There is uncertainty regarding the timing of new assay launches, which could affect future revenue projections.
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The transition to recombinant antigens may present challenges in maintaining margins comparable to native antigens.
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Operating expenses may experience slight increases due to cost of living adjustments and inflationary pressures.
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Potential tariffs could impact margins by 2-4%, depending on the extent of countervailing tariffs and supply chain adjustments.
Q & A Highlights
Q: What percentage of CAPS revenue relates to assays currently in development versus assays that are commercial? A: The vast majority of CAPS sales in the first quarter were driven by fully commercial programs, with less than 10% of revenue coming from development projects. (Cameron Groom, CEO)
Q: Was the reduced activity from a test manufacturer that impacted your CAPS revenue a transient reduction in activity or likely to continue? A: It was a transient reduction related to the timing of programs. We expect orders of training panels and pre-launch and launch inventories in fiscal Q3 and Q4. (Cameron Groom, CEO)
Q: What gives you confidence to guide for 20% plus growth in CAPS? Are there new projects on the horizon? A: Yes, there are new projects with multiple customers, and we have continuing growth from almost every customer in our CAPS field. The growth is driven by timing and the expansion of our customer base. (Cameron Groom, CEO)