We have developed a magnetic biosensor based on a lab-on-a-chip integrated microfluidic cell for detection and sorting of magnetic microbeads in solution comprising magnetoresistive sensors and tapered current carrying striplines integrated with a microfluidic channel. The suspended beads are moved along a microfluidic channel patterned in SU8 over 10 μm diameter ring shaped sensors arranged in Wheatstone bridge. The device reads the real-time voltage signal as a bead perturbs an in-plane applied field in the vicinity of the active bridge elements. Beads of different magnetic moments can be detected and sorted through a magnetostatic sorting gate into different branches of the microchannel. The cell is unique because its design facilitates the integration of magnetic sensors with microfluidics and because it has individually addressable sorting striplines that divert magnetic beads in flow by applying currents locally as opposed to globally applied fields that are used to divert beads in non-flowing mode.