Microbix in Canada… Winning on Flu Venture in China
We don’t normally cover Canadian small cap biotechs or drug stocks up north, but sometimes money is money. Microbix Biosystems Inc. (MBX - TO) shares we up about 8% to C$0.87 on last look (2:40 PM EST). The company announced that it would be jointly developing an influenza vaccine production facility in the Hunan province in China.
The company said it is expected to be the largest production facility for flu vaccines in the country. The project is listed as a 400,000 square foot facility. The target date is quite a ways off as the company said it could be completed as early as 2012.
The factory will employ several hundred people and expected to cost C$200 million (Canadian). Half of the costs are said to be covered by the Hunan local regional government.
The facility is to utilize Microbix’s proprietary method called VIRUSMAX, which is said to double yields of the flu vaccine they manufacture. After the factory is built it is expected to make some 100 million doses a year.
This is being represented as a joint venture between the company and the regional Hunan government, and is currently a 50-50 joint venture. Microbix said it is seeking partners within the pharma sector industry to lend vaccine research, production and marketing knowledge to the operation.
Jon Ogg
June 23, 2008