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Microbix Biosystms (TSE:MBX)
:MBX
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Microbix Biosystms (MBX) AI Stock Analysis

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TSE:MBX

Microbix Biosystms

(TSX:MBX)

Rating:70Neutral
Price Target:
C$0.50
▲(66.67%Upside)
Microbix Biosystems is demonstrating strong financial performance and positive strategic developments, particularly in expanding its market presence and product offerings. However, technical indicators show weakness, and there are concerns about sustaining revenue growth and managing investment demands. The stock is fairly valued with a P/E ratio in line with industry averages, but lacks a dividend yield.
Positive Factors
Market Expansion
The increased adoption in emerging markets and expansion into recombinant antigens suggest continued robust growth.
Revenue Growth
Antigen revenues increased 118% year over year to $4.3 million, indicating strong product performance.
Trade Benefits
Microbix products are exempt from tariffs under the USMCA trade agreement, enabling cost-effective sales into the U.S.
Negative Factors
Market Demand
The unusually light burden of respiratory infectious diseases in China has decreased the demand for Microbix's antigen shipments.
Revenue Decline
Total revenues declined 28% year over year, presenting a challenging financial performance.
Sales Impact
Sales of antigens for Chinese customers have abruptly stopped, impacting a significant portion of the company's revenue.

Microbix Biosystms (MBX) vs. iShares MSCI Canada ETF (EWC)

Microbix Biosystms Business Overview & Revenue Model

Company DescriptionMicrobix Biosystems Inc., a life science company, develops and commercializes proprietary biological and technological solutions for human health and wellbeing in North America, Europe, and internationally. It manufactures a range of critical biological materials for the diagnostics industry, notably antigens for immunoassays and its laboratory quality assessment and proficiency (QAPs) that support clinical lab proficiency testing, assay development and validation, or clinical lab workflows. The company also applies its biological expertise and infrastructure to develop other proprietary products, primarily viral transport medium (DxTM) to stabilize patient samples for lab-based testing and Kinlytic Urokinase, a biologic thrombolytic drug used to treat blood clots. It sells QAPs to lab accreditation organizations, diagnostics companies, and clinical labs through a network of regional distributors. Microbix Biosystems Inc. was founded in 1988 and is headquartered in Mississauga, Canada.
How the Company Makes MoneyMicrobix Biosystems generates revenue primarily through the sale of its quality assessment products (QAPs), which are used by laboratories to ensure the accuracy and reliability of diagnostic testing. Additionally, the company earns income from the production and sale of viral antigens for use in immunoassays, which are critical for diagnostic and research applications. They also offer viral transport media, which is essential for the safe transport of clinical specimens. Significant partnerships with healthcare and diagnostic companies, as well as global distribution agreements, contribute to the company's earnings by expanding the reach and adoption of its products worldwide.

Microbix Biosystms Earnings Call Summary

Earnings Call Date:May 15, 2025
(Q2-2025)
|
% Change Since: -16.67%|
Next Earnings Date:Aug 13, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong financial performance, increased margins, and successful operational advancements. However, challenges such as anticipated weaker sales in the second half and delays with a QAPs partner were noted. Despite these challenges, the company's strategic initiatives and financial strength position it well for future growth.
Q2-2025 Updates
Positive Updates
Increased Revenue and Strong Margins
Q2 revenue reached $5.3 million with a 60% gross margin, up 7% from the previous year. For the first half, revenue was $11.4 million, with gross margins up by 10% year-over-year.
Operational and Financial Strength
The company exercised $2.7 million in warrants and options, paid down $1.15 million in mortgage, and doubled the credit line from $2 million to $4 million. Current ratio is at 9.36 and debt-to-equity ratio at 0.27.
Advancement in Recombinant Capabilities
Microbix has commissioned recombinant capabilities, opening substantial new markets for test ingredients and broadening the company's service offerings.
Global Leadership in HPV Screening
Progress in the QAPs business with leadership in screening for human papillomavirus and enabling global transition to molecular diagnostics.
Strong Partnerships and Program Milestones
Partnership with Sequel Pharma for the Kinylytic urokinase program and a major milestone achieved on May 5th, indicating the program is progressing well.
Operational Efficiency Gains
Manufacturing process upgrades have improved margins, reduced scrap rates, and enhanced yields, supported by digitization and automation.
Negative Updates
Challenging Outlook for Second Half
Weaker sales of test ingredients forecasted for the second half, particularly due to reduced respiratory antigen sales in China.
Delay in QAPs Partner Development
One major QAPs customer shifted from parallel to serial development, impacting short-term revenue expectations.
Company Guidance
In the recent call discussing Microbix's Q2 2025 results, the company reported solid financial performance with total revenues of $5.3 million for the quarter and $11.4 million for the first half of the fiscal year. Gross margins improved significantly, reaching 60% in Q2, up 7% from the previous year. Net earnings for the first half stood at $900,000. Operationally, Microbix expanded its capabilities with recombinant antigen technology and made strides in the QAPs business, despite anticipating a more challenging second half due to a slowdown in sales to China. The balance sheet was strengthened, with a current ratio of 9.36 and a debt-to-equity ratio of 0.27. Additionally, the company exercised $2.7 million in warrants and options, enhancing its financial position. The company also highlighted progress in its therapeutic drug asset, Kinlytic urokinase, which is advancing well with its partner Sequel Pharma.

Microbix Biosystms Financial Statement Overview

Summary
Microbix Biosystems is showing positive financial trends with improved revenue growth and profitability margins. The balance sheet is stable with decreasing debt levels, and cash flows are increasingly positive. However, potential challenges with maintaining revenue growth and managing investment demands remain.
Income Statement
75
Positive
Microbix Biosystems has shown strong revenue growth from 2020 to 2024, with a significant improvement in net profit margins. The company achieved a positive net income in recent years, contrasting with previous losses. Notably, the TTM (Trailing-Twelve-Months) data indicates a gross profit margin of 56.1% and a net profit margin of 8.3%, pointing to improved profitability. However, the recent decline in total revenue from the annual report suggests potential challenges in maintaining revenue momentum.
Balance Sheet
70
Positive
The company's balance sheet reflects a stable equity base, with a notable decrease in debt levels over the years. The debt-to-equity ratio shows a moderate level of leverage, which is manageable. The equity ratio has been improving, indicating a stronger financial position. However, the biotechnology industry is capital intensive, and continuous investment might affect leverage ratios.
Cash Flow
65
Positive
Microbix Biosystems has demonstrated an improvement in operating cash flow, achieving positive free cash flow in the latest periods. The free cash flow to net income ratio suggests healthy cash generation relative to profits. However, past periods of negative free cash flow highlight potential liquidity risks if revenue declines or investment increases unexpectedly.
BreakdownSep 2024Sep 2023Sep 2022Sep 2021Sep 2020
Income Statement
Total Revenue25.39M16.51M19.08M18.59M10.52M
Gross Profit15.39M7.48M11.12M11.04M4.66M
EBITDA6.21M1.96M3.73M5.66M-2.91M
Net Income3.52M-39.48K1.79M1.63M-6.23M
Balance Sheet
Total Assets38.10M35.65M33.15M28.83M15.60M
Cash, Cash Equivalents and Short-Term Investments12.96M11.61M13.49M9.99M92.66K
Total Debt6.40M6.65M5.82M7.74M6.17M
Total Liabilities9.80M11.03M8.21M10.27M8.98M
Stockholders Equity28.30M24.62M24.94M18.56M6.62M
Cash Flow
Free Cash Flow2.44M-2.11M1.44M804.20K-805.34K
Operating Cash Flow4.35M-1.09M3.47M2.11M8.57K
Investing Cash Flow-1.91M-1.02M-2.03M-622.34K-813.91K
Financing Cash Flow-1.08M229.21K2.06M8.41M802.43K

Microbix Biosystms Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price0.30
Price Trends
50DMA
0.31
Negative
100DMA
0.35
Negative
200DMA
0.37
Negative
Market Momentum
MACD
>-0.01
Negative
RSI
46.89
Neutral
STOCH
66.67
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:MBX, the sentiment is Neutral. The current price of 0.3 is above the 20-day moving average (MA) of 0.30, below the 50-day MA of 0.31, and below the 200-day MA of 0.37, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 46.89 is Neutral, neither overbought nor oversold. The STOCH value of 66.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:MBX.

Microbix Biosystms Peers Comparison

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
C$71.29M18.4814.51%28.97%
70
Neutral
C$41.47M25.435.32%-4.67%-60.94%
60
Neutral
HK$16.84B5.17-7.44%2.89%11.55%-28.15%
43
Neutral
$155.53M-211.24%0.10%
43
Neutral
C$48.84M
-33.66%-48.89%
33
Underperform
C$57.48M248.46%32.71%
33
Underperform
C$77.12M685.26%-50.29%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:MBX
Microbix Biosystms
0.30
-0.02
-6.25%
TSE:ONC
Oncolytics Biotech
1.61
0.20
13.78%
TSE:HBP
Helix BioPharma
1.04
-0.31
-22.96%
TSE:MIR
Medmira
0.07
>-0.01
-12.50%
TSE:COV
Covalon Technologies
2.53
0.45
21.63%
TSE:SVA
Sernova
0.18
-0.09
-33.33%

Microbix Biosystms Corporate Events

Product-Related AnnouncementsBusiness Operations and Strategy
Microbix Partners with Bulgaria’s NCIPD to Enhance Diagnostic Test Accuracy
Positive
Jul 8, 2025

Microbix Biosystems Inc. has entered into a multi-year agreement with Bulgaria’s National Center for Infectious and Parasitic Diseases (NCIPD) to develop new quality assessment products (QAPs) using pathogen seedstocks supplied by NCIPD. This collaboration aims to enhance the accuracy of diagnostic tests for infectious diseases, thereby improving global health outcomes. The agreement will allow Microbix to expand its portfolio of QAPs, leveraging NCIPD’s extensive collection of characterized microorganisms. This strategic partnership is expected to strengthen Microbix’s position in the diagnostics industry by increasing its product offerings and supporting the accuracy of emerging tests for bacterial, parasitic, and viral infections.

The most recent analyst rating on (TSE:MBX) stock is a Buy with a C$0.80 price target. To see the full list of analyst forecasts on Microbix Biosystms stock, see the TSE:MBX Stock Forecast page.

Product-Related AnnouncementsBusiness Operations and Strategy
Microbix Showcases Diagnostic Innovations at Asia Pacific Conference
Positive
Jun 17, 2025

Microbix Biosystems Inc. announced its participation in the Asia Pacific Conference on Point of Care Testing for Infectious Diseases in Bangkok, where it will present its quality assessment products (QAPs) that support point-of-care testing. The company will showcase its innovations that ensure diagnostic test accuracy, particularly for infectious diseases relevant to the Asia Pacific region. The presentation will highlight the robust performance of Microbix’s QAPs, which have been crucial in supporting SARS-CoV-2 tests and contributed to the company’s selection as a key quality control device partner in the EPICC initiative for HPV elimination. This engagement is expected to enhance Microbix’s role in point-of-care testing programs and expand its collaborations with diagnostics manufacturers.

The most recent analyst rating on (TSE:MBX) stock is a Buy with a C$0.80 price target. To see the full list of analyst forecasts on Microbix Biosystms stock, see the TSE:MBX Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
Microbix Biosystems Reports Q2 Fiscal 2025 Results with Improved Margins and Cautious Outlook
Neutral
May 15, 2025

Microbix Biosystems reported its Q2 fiscal 2025 results, showing a revenue of $5.3 million, a slight decrease from the previous year, but with improved gross margins. The company experienced growth in antigen sales, offset by a decline in QAPs due to delays with a major customer. Despite increased operating expenses, Microbix achieved a positive net income and improved financial strength, with strong cash reserves and liquidity. However, the outlook for the second half of fiscal 2025 is cautious due to reduced sales in China, impacting the company’s future growth prospects.

The most recent analyst rating on (TSE:MBX) stock is a Buy with a C$0.80 price target. To see the full list of analyst forecasts on Microbix Biosystms stock, see the TSE:MBX Stock Forecast page.

Product-Related AnnouncementsBusiness Operations and Strategy
Microbix and Aurevia Launch Pilot EQA Program for Bacterial Vaginosis Diagnosis
Positive
May 13, 2025

Microbix Biosystems Inc., in collaboration with Aurevia Oy, has launched a pilot external quality assessment (EQA) program aimed at enhancing the proficiency of clinical laboratories in diagnosing bacterial vaginosis (BV) using molecular diagnostic methods. This initiative, which involves the use of Microbix’s QAPs to simulate clinical specimens, is expected to improve diagnostic accuracy and treatment planning for BV and other vaginal infections. The program’s success could lead to its inclusion in Aurevia’s Labquality EQAS portfolio, thereby strengthening Microbix’s position as a key partner in the diagnostics industry.

The most recent analyst rating on (TSE:MBX) stock is a Buy with a C$0.80 price target. To see the full list of analyst forecasts on Microbix Biosystms stock, see the TSE:MBX Stock Forecast page.

Financial Disclosures
Microbix Biosystems to Release Q2 Fiscal 2025 Results
Neutral
May 8, 2025

Microbix Biosystems Inc. has announced the release of its second quarter fiscal 2025 financial results, scheduled for May 15, 2025. The company will host a webinar to discuss these results, featuring its CEO, CFO, and COO. This event reflects Microbix’s ongoing commitment to transparency and engagement with investors and stakeholders, potentially impacting its market positioning and investor relations.

Product-Related AnnouncementsBusiness Operations and Strategy
Microbix Advances Kinlytic Urokinase Production with New CDMO Agreement
Positive
May 5, 2025

Microbix Biosystems Inc. announced that its partner, Sequel Pharma, has signed an agreement with a contract development and manufacturing organization (CDMO) to produce Kinlytic® urokinase, a drug for dissolving blood clots. This agreement aims to resume production for the U.S. market, initially targeting the catheter clearance segment valued at $400 million. The collaboration is expected to enhance Microbix’s market presence and operational capabilities, with future updates anticipated as the project progresses.

Business Operations and Strategy
Microbix to Present at 2025 Bloom Burton Healthcare Investor Conference
Neutral
May 1, 2025

Microbix Biosystems Inc. announced its participation in the 2025 Bloom Burton & Co. Healthcare Investor Conference, which will be held at the Metro Toronto Convention Centre. This event provides Microbix with a platform to connect with Canadian, U.S., and international investors, potentially enhancing its market presence and stakeholder engagement in the healthcare and life sciences sector.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 09, 2025