Metabolix Acquires Mirel Inventory Providing a Foundation for
Launching the PHA Biopolymers Business under a New Commercial Model
CAMBRIDGE, Mass.--(BUSINESS WIRE)--
March 6, 2012--Metabolix, Inc. (NASDAQ: MBLX), a bioscience company
focused on bringing sustainable solutions to the plastics, chemicals and
energy industries, today reported financial results for the three months
and full year ended December 31, 2011.
FOURTH QUARTER AND FULL YEAR 2011 FINANCIAL OVERVIEW
Total revenue in the fourth quarter of 2011 was $0.4 million, compared
to $0.1 million for the comparable quarter in 2010. Research and
development expenses were $6.1 million for the fourth quarter of 2011
compared to $5.8 million for the same period in 2010. Selling, general
and administrative expenses were $4.0 million for the fourth quarter of
2011 as compared to $3.8 million for the comparable quarter in 2010. The
Company reported a net loss of $9.6 million or $0.28 per share for the
fourth quarter of 2011 compared to a net loss of $9.5 million or $0.35
per share for the fourth quarter of 2010.
The Company's net cash used for operating activities during the fourth
quarter of 2011 was $8.6 million, which compares to net cash used of
$8.1 million for the comparable quarter in 2010.
Total revenue for the full year 2011 was $ 1.4 million, compared to $
0.4 million, for the comparable quarter in 2010. The year-over-year
increase was primarily due to an increase in 2011 in government research
grant revenue, and an increase in license fee and royalty revenue as
compared to 2010.
For the full year 2011, research and development expenses were $24.4
million compared to $23.7 million for 2010. The increase was primarily
due to an increase in contracted research related to Mirel product
development and the Company's biobased industrial chemicals program,
employee compensation and related benefit expenses partially offset by a
decrease in material production costs. For the full year 2011, selling,
general and administrative expenses were $15.8 million as compared to
$15.7 million in 2010.
For the full year, the Company reported a net loss of $38.8 million or
$1.24 per share as compared to a net loss of $38.8 million or $1.45 per
share for 2010.
Metabolix manages its finances with an emphasis on cash flow. Net cash
used in operating activities for the full year was $31.7 million
compared to $32.0 million used in 2010. Unrestricted cash and
investments at December 31, 2011 totaled $78.4 million. In 2011, the
Company raised $49.3 million net proceeds in an offering of common stock
and continues to have no debt.
TERMINATION OF TELLES JOINT VENTURE AND FINANCIAL OUTLOOK 2012
Metabolix announced today that it has agreed with Archer Daniel Midland
Company (ADM) on the terms of the wind down of the Telles joint venture
effective March 6. Metabolix also disclosed that the Company is paying
approximately $3.0 million in a transfer of rights and assets including
all product inventory and compounding raw materials, all product
certifications, approvals and trademarks, and pilot plant equipment
located outside of the Clinton plant. As such, more than 5 million
pounds of PHA biopolymer inventory is being transferred to Metabolix.
Metabolix also retains exclusive rights to all Metabolix PHA technology
and associated intellectual property. ADM retains its manufacturing
plant in Clinton, Iowa. Metabolix also released ADM from any future
obligations to provide fermentation services.
In first quarter 2012, Metabolix restructured its business and expects
to take a restructuring charge of approximately $1.0 million. Metabolix
also expects to recognize approximately $38.9 million in deferred
revenue in first quarter 2012 in connection with the termination.
Metabolix currently expects cash usage for 2012 in the range of $28 to
$30 million, and to end 2012 with cash and investments balances of
approximately $48 to $50 million. The Company anticipates ending 2012
with an annual cash usage run rate of approximately $24 million,
excluding any additional partner funding, grant revenue or other sources
of income.
BUSINESS UPDATE
Metabolix plans to launch its business in PHA biopolymers under a new
commercial model. Since January, Metabolix has opened constructive
discussions with a number of potential alternative manufacturing and
commercialization partners for PHA biopolymers.
Metabolix has retained a core team in biopolymers to provide continuity
with the technology, manufacturing process and markets during this
period of transition. In addition, the Company is working closely with
customers to understand their product needs. With more than 5 million
pounds of product inventory available, Metabolix expects it will have
adequate product inventory to supply core customers with PHA biopolymer
until new inventory becomes available and to continue product
development in high value-added applications.
"We remain enthusiastic and committed to successfully commercializing
the Mirel family of PHA biopolymers which offer the marketplace a truly
differentiated biodegradability profile," commented Richard P. Eno,
President and Chief Executive Officer of Metabolix. "We see a robust and
growing global market for bioplastics and remain confident that we are
well positioned to serve customers and develop high value applications
for our PHA biopolymers. We are taking decisive steps to establish our
manufacturing strategy and supply under a new commercial model."
Mr. Eno continued, "The production of renewable chemicals is a further
attractive opportunity for our technology. In 2011, we made important
progress demonstrating production of C4 and C3 chemicals and accessed a
grant to advance co-production of biobased chemicals in switchgrass."
In its second technology platform, Metabolix is developing C4 and C3
chemicals from biobased sources. In 2011, Metabolix announced a joint
development agreement with CJ CheilJedang ("CJ") to continue to advance
and refine Metabolix production technology and assess investment options
for the commercialization of biobased C4 chemicals through fermentation.
In 2011, the Company produced gamma-Butyrolactone ("GBL") at semi-works
scale and demonstrated a chemical profile consistent with accepted
industry specifications. In conjunction with technical progress,
Metabolix expects to continue discussions with CJ and other industry
leaders with the goal of forming the industry alliances necessary to
successfully bring the Company's biobased C4 industrial chemicals into
commercial production.
Developing and commercializing biobased C3 chemicals represents another
attractive market for Metabolix technology. In 2012, Metabolix plans to
optimize microbial strains to produce biobased C3 chemicals and to
continue scale up of fermentation operations. The Company also plans to
continue development and optimization of its FAST recovery technology to
produce renewable acrylic acid to match the chemical specifications of
conventional chemical counterparts.
In its third technology platform, crop-based businesses, Metabolix is
developing an innovative biorefinery system which uses plant crops to
co-produce biobased chemicals with bioenergy. In 2011, Metabolix was
awarded a $6 million grant by the U.S. Department of Energy ("DOE") to
produce PHB, a sub-class of PHA, in switchgrass and to develop methods
to thermally convert the PHB-containing biomass to crotonic acid and to
densified biomass for fuel. In 2012, Metabolix expects to continue to
advance research under the DOE grant.
Conference Call Information
Richard Eno, the Company's President and CEO, Joseph Hill, CFO, and
Oliver Peoples, Co-founder and CSO, will host a conference call on the
same day at 4:30 p.m. (Eastern) to discuss the results of the fourth
quarter and fiscal year ended December 31, 2011. The Company will also
provide an update on the business and answer questions from the
investment community. To participate, dial toll-free 1-888-500-6970 or
1-719-325-2419 (international). The pass code is 2602945. The conference
call will also be webcast and can be accessed from the Company's website
at www.metabolix.com
in the investor relations section.
To listen to a telephonic replay of the conference call, dial toll-free
1-877-870-5176 or 1-858-384-5517 (international) and enter pass code
2602945. The replay will be available beginning at 7:30 p.m. (Eastern)
on Tuesday, March 6, 2012 and will last through 11:59 PM (Eastern) March
20, 2012. In addition, the webcast will be archived on the Company's
website at www.metabolix.com
in the investor relations section.
About Metabolix
Founded in 1992, Metabolix, Inc. is an innovation-driven bioscience
company focused on providing sustainable solutions for the world's needs
for plastics, chemicals and energy. The Company is taking a systems
approach, from gene to end product, integrating sophisticated
biotechnology with advanced industrial practice. Metabolix is developing
biosourced industrial chemicals and plastics, as well as a proprietary
platform technology for co-producing plastics, chemicals and energy,
from crops such as switchgrass, oilseeds and sugarcane.
For more information, please visit www.metabolix.com.
(MBLX-E)
Safe Harbor for Forward-Looking Statements
This press release contains forward-looking statements which are made
pursuant to the safe harbor provisions of Section 27A of the Securities
Act of 1933, as amended, and Section 21E of the Securities Exchange Act
of 1934, as amended. The forward-looking statements in this release do
not constitute guarantees of future performance. Investors are cautioned
that statements in this press release which are not strictly historical
statements, including, without limitation, statements regarding expected
future financial results and cash usage; plans for launch of the
Metabolix biopolymers business; expectations for the commercialization
of Metabolix biopolymers, commercialization of the Company's industrial
chemicals and projected advances in crop yields; and future research and
development, constitute forward-looking statements. Such forward-looking
statements are subject to a number of risks and uncertainties that could
cause actual results to differ materially from those anticipated,
including the following: increased risks and uncertainties relating to
commercialization of our first and only product, Mirel, due to the
termination of the ADM commercial alliance--we relied heavily on ADM for
the successful implementation of our biopolymer commercialization;
uncertainties relating to our ability to obtain sufficient biopolymer
manufacturing and compounding capacity and to obtain raw materials in
sufficient quantities or in a timely manner; uncertainties relating to
the price of petroleum relative to the biobased feedstocks used to make
Mirel and our other products; and other risks and uncertainties detailed
in Metabolix's filings with the Securities and Exchange Commission,
including its quarterly form 10-Qs filed during 2011 and its 10-K for
the year ended December 31, 2010 filed on March 10, 2011. Metabolix
assumes no obligation to update any forward-looking information
contained in this press release or with respect to the announcements
described herein.
|
METABOLIX, INC.
|
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
|
UNAUDITED
|
(in thousands, except share and per share data)
|
|
|
|
|
Three Months Ended
|
|
|
Twelve Months Ended
|
|
|
|
December 31,
|
|
|
December 31,
|
|
|
|
2011
|
|
|
2010
|
|
|
2011
|
|
|
2010
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
Grant revenue
|
|
$
|
351
|
|
|
$
|
38
|
|
|
$
|
918
|
|
|
$
|
64
|
|
License fee and royalty revenue from related parties
|
|
|
28
|
|
|
|
25
|
|
|
|
447
|
|
|
|
122
|
|
License fee and royalty revenue
|
|
|
60
|
|
|
|
50
|
|
|
|
60
|
|
|
|
50
|
|
Research and development revenue
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
212
|
|
Total revenue
|
|
|
439
|
|
|
|
113
|
|
|
|
1,425
|
|
|
|
448
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development expenses, including cost of revenue
|
|
|
6,093
|
|
|
|
5,761
|
|
|
|
24,445
|
|
|
|
23,673
|
|
Selling, general, and administrative expenses
|
|
|
3,963
|
|
|
|
3,836
|
|
|
|
15,841
|
|
|
|
15,714
|
|
Total operating expenses
|
|
|
10,056
|
|
|
|
9,597
|
|
|
|
40,286
|
|
|
|
39,387
|
|
Loss from operations
|
|
|
(9,617
|
)
|
|
|
(9,484
|
)
|
|
|
(38,861
|
)
|
|
|
(38,939
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income, net
|
|
|
14
|
|
|
|
17
|
|
|
|
76
|
|
|
|
136
|
|
Net loss
|
|
$
|
(9,603
|
)
|
|
$
|
(9,467
|
)
|
|
$
|
(38,785
|
)
|
|
$
|
(38,803
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and Diluted
|
|
$
|
(0.28
|
)
|
|
$
|
(0.35
|
)
|
|
$
|
(1.24
|
)
|
|
$
|
(1.45
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of shares used in per share calculations:
|
|
|
34,110,508
|
|
|
|
26,891,816
|
|
|
|
31,257,376
|
|
|
|
26,773,755
|
|
|
|
METABOLIX, INC.
|
CONDENSED CONSOLIDATED BALANCE SHEET
|
UNAUDITED
|
(in thousands)
|
|
|
|
|
December 31,
|
|
|
December 31,
|
|
|
|
2011
|
|
|
2010
|
Assets
|
|
|
|
|
|
|
Cash, cash equivalents and short-term investments
|
|
$
|
76,855
|
|
$
|
61,574
|
Other current assets
|
|
|
1,584
|
|
|
1,682
|
Restricted cash
|
|
|
622
|
|
|
622
|
Property and equipment, net
|
|
|
2,276
|
|
|
2,776
|
Long-term investments
|
|
|
1,503
|
|
|
-
|
Other assets
|
|
|
72
|
|
|
117
|
Total assets
|
|
$
|
82,912
|
|
$
|
66,771
|
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity
|
|
|
|
|
|
|
Accounts payable and accrued liabilities
|
|
$
|
4,086
|
|
$
|
4,324
|
Short-term deferred revenue
|
|
|
2,914
|
|
|
1,906
|
Current portion of deferred rent
|
|
|
165
|
|
|
165
|
Long-term deferred revenue
|
|
|
35,944
|
|
|
36,207
|
Other long-term liabilities
|
|
|
340
|
|
|
493
|
Total liabilities
|
|
|
43,449
|
|
|
43,095
|
Total stockholders' equity
|
|
|
39,463
|
|
|
23,676
|
Total liabilities and stockholders' equity
|
|
$
|
82,912
|
|
$
|
66,771
|
|
|
|
|
|
Year Ended December 31,
|
|
|
|
2011
|
|
|
2010
|
|
|
2009
|
Cash flows from operating activities
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
(38,785
|
)
|
|
$
|
(38,803
|
)
|
|
$
|
(37,957
|
)
|
Adjustments to reconcile net loss to cash used in operating
activities:
|
|
|
|
|
|
|
|
|
|
Depreciation
|
|
|
1,507
|
|
|
|
1,647
|
|
|
|
2,734
|
|
Charge for 401(k) company common stock match
|
|
|
529
|
|
|
|
443
|
|
|
|
428
|
|
Stock-based compensation
|
|
|
4,633
|
|
|
|
4,696
|
|
|
|
4,653
|
|
Gain on sale of equipment
|
|
|
-
|
|
|
|
-
|
|
|
|
(70
|
)
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
|
|
|
Accounts receivable
|
|
|
(146
|
)
|
|
|
19
|
|
|
|
140
|
|
Unbilled receivable
|
|
|
(296
|
)
|
|
|
(5
|
)
|
|
|
53
|
|
Due from related parties
|
|
|
(71
|
)
|
|
|
(15
|
)
|
|
|
-
|
|
Prepaid expenses and other assets
|
|
|
68
|
|
|
|
(104
|
)
|
|
|
(205
|
)
|
Accounts payable
|
|
|
273
|
|
|
|
(387
|
)
|
|
|
(232
|
)
|
Accrued expenses
|
|
|
(623
|
)
|
|
|
329
|
|
|
|
334
|
|
Deferred rent and other long-term liabilities
|
|
|
(153
|
)
|
|
|
(156
|
)
|
|
|
(156
|
)
|
Deferred revenue
|
|
|
1,333
|
|
|
|
341
|
|
|
|
4,519
|
|
Net cash used in operating activities
|
|
|
(31,731
|
)
|
|
|
(31,995
|
)
|
|
|
(25,759
|
)
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities
|
|
|
|
|
|
|
|
|
|
Purchase of property and equipment
|
|
|
(895
|
)
|
|
|
(906
|
)
|
|
|
(2,017
|
)
|
Proceeds from sale of equipment
|
|
|
-
|
|
|
|
-
|
|
|
|
70
|
|
Change in restricted cash
|
|
|
-
|
|
|
|
(29
|
)
|
|
|
-
|
|
Purchase of investments
|
|
|
(107,477
|
)
|
|
|
(83,814
|
)
|
|
|
(119,956
|
)
|
Proceeds from sale and maturity of short-term investments
|
|
|
99,464
|
|
|
|
116,126
|
|
|
|
103,048
|
|
Net cash provided by (used in) investing activities
|
|
|
(8,908
|
)
|
|
|
31,377
|
|
|
|
(18,855
|
)
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities
|
|
|
|
|
|
|
|
|
|
Proceeds from options exercised
|
|
|
74
|
|
|
|
2,339
|
|
|
|
116
|
|
Proceeds from public stock offering, net of issuance costs
|
|
|
49,333
|
|
|
|
-
|
|
|
|
29,118
|
|
Net cash provided by financing activities
|
|
|
49,407
|
|
|
|
2,339
|
|
|
|
29,234
|
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash and cash equivalents
|
|
|
(17
|
)
|
|
|
(9
|
)
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in cash and cash equivalents
|
|
|
8,751
|
|
|
|
1,712
|
|
|
|
(15,380
|
)
|
Cash and cash equivalents at beginning of period
|
|
|
12,526
|
|
|
|
10,814
|
|
|
|
26,194
|
|
Cash and cash equivalents at end of period
|
|
$
|
21,277
|
|
|
$
|
12,526
|
|
|
$
|
10,814
|
|
Metabolix General Inquiries:
Lynne H. Brum, 617-682-4693
LBrum@metabolix.com
or
Investor
Relations:
ICR
James R. Palczynski, 203-682-8229
james.palczynski@icrinc.com
Source: Metabolix, Inc.
News Provided by Acquire Media