Microbix hits 52-week high on flu vaccine plant

Shares of Microbix Biosystems (TSX:MBX) touched a 52-week high of 66 cents in early Tuesday trading after the company unveiled a joint venture to provide initial financing to build Asia’s largest flu vaccine production plant in China’s Hunan province.

The $200-million plant will have an annual capacity to produce more than 100 million doses of seasonal flu vaccine, and up to 300 million doses of a pandemic vaccine, using Microbix’s Virusmax vaccine technology that has been shown to double vaccine yields.

Toronto-based Microbix said in a statement that construction will begin early in 2010 and the plant will be fully operational by 2013.

Under the accord, Hunan in transferring land to the joint venture and building the facility through the first phase of financing.  As the project progresses, Hunan has agreed to provide additional financing through debt and has guaranteed to purchase of 100 million doses of flu vaccine.  Microbix will receive royalty payments and hold exclusive marketing rights outside of China for the vaccine produced.