08:42 AM EDT, 04/08/2025 (MT Newswires) -- Microbix Biosystems ( MBXBF ) on Tuesday said it currently believes that no tariffs will apply to any products that it is selling into the U.S., as they remain exempt under the USMCA trade agreement.

However, the possibility of reciprocal tariffs by Canada on life sciences equipment and consumables made in the U.S. remains a concern as Microbix purchases $1.5 million of equipment and over $4 million of consumables each year. It is working to determine what proportion of such purchases are U.S.-made.

The outlook for sales of quality assessment products remains "positive" and sales growth continues to be expected over the balance of fiscal 2025 and beyond, the company said.

The outlook for sales of test-ingredients (antigens) however, has become less favourable, as sales into China have abruptly halted. Microbix believes the main reason was an unusually light burden of respiratory infectious diseases over the Chinese New Year holidays, requiring fewer tests sales. Tariff geopolitics and revisions to local testing guidelines may also be contributing. Antigens sales growth is no longer expected over the balance of 2025.

At the end of March, Microbix retained cash and equivalents of over $14 million. It expects to report its second-quarter results in mid-May.