Microbix Biosystems Inc. (OTCQX:MBXBF) is a company that quietly toils in the background of the diagnostics industry. They don't grab headlines with flashy new tests or blockbuster drugs. Instead, they focus on the less glamorous but absolutely crucial aspect of making sure diagnostic tests are reliable, consistent, and accurate. They are the quality control experts, the silent partners ensuring millions of tests worldwide deliver the right results. And this silent partner might just be on the verge of a very loud breakout.

A deep dive into Microbix’s recent earnings call transcripts ( Q1 2024, Q2 2024 ) reveals an intriguing trend, one that seems to have flown under the radar of most analysts. While the focus has been on the company's strong performance and the potential windfall from the Kinlytic licensing deal, there's a hidden story playing out in their core business: a surge in demand for their QAPs, or quality assessment products, specifically from the point-of-care (POC) testing sector.

POC testing, often referred to as "bedside" testing, is a rapidly growing segment of the diagnostics market. Think of a quick strep test at your doctor's office or a rapid flu test at a clinic. This sector prizes speed and convenience, allowing healthcare providers to make faster diagnoses and treatment decisions without sending samples to a centralized lab. And as POC testing explodes in popularity, so too does the demand for Microbix's QAPs.

Why? Because accurate POC testing relies on stringent quality control. Imagine the chaos if that quick strep test gives a false negative, sending a contagious patient back into the world. Microbix provides the specialized controls necessary to validate and monitor the accuracy of these rapid tests, ensuring they deliver reliable results.

Now, here's where things get really interesting. While Microbix doesn't explicitly disclose revenue figures for specific product lines, the CEO, Cameron Groome, offered a telling glimpse into the QAPs performance during the Q1 2024 Earnings Call Q&A session. He mentioned that in the current quarter, they had close to 20 active QAPs customers. Furthermore, he highlighted the fact that Microbix had previously announced two separate million-dollar orders for QAPs, one from a proficiency testing customer and the other from a point-of-care customer.

These statements, coupled with the company's record QAPs sales of $2.25 million in Q1, hint at a significant surge in demand emanating from the POC testing market. Microbix's leadership in developing specialized controls for complex multiplex assays – tests that simultaneously detect multiple pathogens – positions them perfectly to capitalize on this burgeoning sector.

Projected QAPs Revenue Growth

The following chart presents a hypothetical projection of Microbix's QAPs revenue based on available data, highlighting the potential impact of the POC testing market.

This figure, although speculative, represents a potential 40% increase in QAPs sales compared to fiscal year 2023. It underscores the quiet revolution brewing at Microbix, with POC testing driving significant demand for their quality control expertise.

While the Kinlytic licensing deal holds the promise of a future financial windfall, the real story at Microbix might be the steady, organic growth fueled by their position as the "go-to" provider of quality control solutions for the rapidly expanding POC testing market. This sleeping giant may be on the verge of a powerful awakening, driven by a fundamental shift in the way diagnostic testing is delivered.

"Fun Fact: Microbix's CEO, Cameron Groome, is a champion of transparency and shareholder alignment. He has consistently advocated for clear communication and regularly discloses his own personal investment in the company, demonstrating a strong commitment to shared success. This dedication to open dialogue and aligned interests further strengthens the case for Microbix as a company poised for significant growth and value creation."