Mr. Cameron Groome reports

MICROBIX REVIEWS NEW U.S. TARIFFS ON CANADA

Microbix Biosystems Inc. is reviewing the effects of recent changes to United States tariffs on Canada being imposed via presidential proclamation using provisions of Section 338 of the Smoot-Hawley Tariff Act of 1930.

The act was intended to protect U.S. industries during the Great Depression and enables the U.S. president to regulate commerce with other countries using the assertion that they discriminate against U.S. trade. On Oct. 23, U.S. tariffs imposed via the act were redirected from plywood, paper, packaged goods, refrigeration equipment and machinery to instead target chemicals, flooring, appliances, valves, electrosurgical instruments, and diagnostic and laboratory reagents. Certain Microbix products, such as QAPs, appear to be included under the product codes related to diagnostic and laboratory reagents.

The newly imposed tariffs are to be applied at a rate of 50 per cent for Canadian products entering the U.S. as of 12:01 a.m. on Oct. 30, 2026. Such tariffs will be collected by the U.S. government from the buyer or importer bringing products into the country, thereby increasing costs for U.S. end-users of those products.

Microbix believes its QAPs products are not readily substituted with U.S. manufactured goods due to their sophisticated nature and requirements for extensive validation into client diagnostic testing workflows. However, should U.S.-imposed tariffs persist over the longer-term, Microbix's U.S.-based customers may ask Microbix to share their impact or evaluate the use of domestic manufacturers.

In accordance with its prior public disclosures, Microbix's sales of QAPs for the nine months ended June 30, 2026, were $4.2-million, of which an estimated $3.4-million were to U.S.-based clients. In turn, total revenues derived from U.S.-based clients were $5.5-million over the same period.

Microbix notes that on Oct. 25, U.S. President Donald Trump expressed his expectation that a revised trade deal would be reached with Canada "pretty soon," an evaluation echoed by Canadian Prime Minister Mark Carney, who stated on Oct. 26 that "To the extent any progress has been made, it's because the U.S. is coming closer to our position."

Microbix will update its forward-looking information once it is able to assess the nearer and longer-term impacts of these new tariffs and, equally, whether they are reduced or eliminated as a result of the continuing trade negotiations between Canada and the United States. In any event, Microbix remains committed to continuing to grow its revenues by expanding the number and scope of its client relationships, whether in the United States, Europe, or other geographic or political regions.

About Microbix Biosystems Inc.

Microbix is a Canadian life sciences company working to advance global health through biological products that support diagnostic testing, laboratory quality assurance, and disease management. With 120 employees and fiscal 2025 revenues of $18.6-million, Microbix helps diagnostics companies, clinical laboratories, and health care providers deliver accurate and reliable test results to improve patient care.

Microbix is an enabling partner to the global diagnostics industry, by providing proprietary antigens used by approximately 100 diagnostics manufacturers, alongside its portfolio of QAPs quality assessment products and QUANTDx reference materials. Its products support assay development and validation, technician training, site onboarding, external quality assessment and quality assurance across entire test workflows. Microbix products are available in more than 30 countries through international distribution partners. The company maintains ISO 9001 and ISO 13485 certifications, U.S. FDA (Food and Drug Administration) and Australian TGA registrations, Health Canada licences, and EU IVDR and CE-mark compliance.

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