Announces Agreement with Antibióticos S.A. for Production of MirelTM
Biopolymer Resin
Reports Successful Laboratory Scale-up of Biobased Acrylic Acid
Recovery using the FAST Process
CAMBRIDGE, Mass.--(BUSINESS WIRE)--
July 26, 2012--Metabolix, Inc. (NASDAQ: MBLX), an innovation-driven
bioscience company delivering sustainable solutions to the plastics,
chemicals and energy industries, today reported financial results for
the three months ended June 30, 2012.
"We made tangible progress toward the commercialization of our
biopolymer and biobased chemicals businesses during the second quarter.
Today, we are pleased to announce that we have signed a letter of intent
with Antibióticos for the production of Mirel biopolymer resin. We also
expect to work closely with Antibióticos to complete the manufacturing,
economic and engineering feasibility studies required to sign a contract
manufacturing agreement. With the implementation of our new supply chain
plan now underway, we expect to have productive discussions with
customers to bridge existing biopolymer inventory to new commercial
supply in 2013 and to continue product development in high value-added
applications," commented Richard P. Eno, President and Chief Executive
Officer of Metabolix.
SECOND QUARTER 2012 AND THE FIRST HALF FINANCIAL OVERVIEW
Metabolix manages its finances with an emphasis on cash flow. The
Company has maintained this focus and ended the second quarter with
$59.9 million in unrestricted cash and investments. The Company's net
cash used for operating activities during the second quarter of 2012 was
$5.9 million, which remains consistent with net cash used of $5.9
million for the comparable quarter in 2011. Metabolix continues to have
no debt.
Metabolix currently expects cash usage from operations for 2012 in the
range of $28 to $30 million, and expects to end 2012 with a cash and
investments balance before any capital expenditures of approximately $48
to $50 million. Anticipated capital expenditures are currently being
evaluated. The Company anticipates ending 2012 with an annual cash usage
from operations run rate of approximately $24 million, excluding any
additional partner funding, grant revenue, other sources of income, or
capital expenditures.
Total revenue in the second quarter of 2012 was $0.9 million, compared
to $0.2 million for the comparable quarter in 2011. The second quarter
revenue consisted primarily of revenue from government grants and
product sales. Grant revenue of $0.5 million increased by $0.4 million
over the same quarter of 2011, primarily as a result of work performed
on the Company's $6.0 million DOE grant. Biopolymer product sales of
$0.4 million were recorded during the Company's second quarter of 2012.
Cost of product revenue was $0.4 million during the quarter ended June
30, 2012 and primarily reflects the cost of product shipped to
customers, warehousing costs to store over five million pounds of
acquired Telles inventory, and freight expenses. Research and
development expenses were $5.0 million for the second quarter of 2012
compared to $6.0 million for the same period in 2011. The decrease of
$1.0 million is primarily due to decreased employee compensation and
benefits resulting from the Company's restructuring efforts in the first
quarter of 2012, reduced research and development support and a decline
in travel expenses. Selling, general and administrative expenses were
$3.4 million for the second quarter of 2012 as compared to $4.2 million
for the comparable quarter in 2011. The decrease of $0.8 million is also
attributable to the Company's restructuring efforts in its first quarter
of 2012, reduced legal expenses and a decline in travel expenses.
The Company reported a net loss of $7.9 million or $0.23 per share for
the second quarter of 2012 as compared to a net loss of $10.0 million or
$0.33 per share for the second quarter of 2011.
Revenue for the six months ended June 30, 2012 was $40.2 million
compared to $0.5 million in the same period of 2011. The year-over-year
increase was primarily related to $38.9 million in deferred revenue
which was recognized as a result of the termination of the Telles joint
venture in February of this year. Increases in grant and product
revenues during the first six months of 2012 compared to the first six
months of 2011 of $0.7 million and $0.4 million, respectively, were
partially offset by a $0.3 million decrease in license and royalty fees
received from Tepha, Inc., a related party.
Cost of product revenues was $0.5 million during the six months ended
June 30, 2012 and primarily reflects the cost of inventory shipped to
customers and warehousing. Research and development expenses were $11.1
million for the first half of 2012 compared to $12.2 million for the
same period in 2011. The six month decrease of $1.1 million is primarily
the result of decreased employee compensation and benefit expenses of
$0.5 million, net of one-time restructuring expenses of $0.5 million,
and a reduction in contract research expenses of $0.6 million, and less
frequent biopolymer product trials and outside testing. Selling, general
and administrative expenses were $7.8 million for the first six months
of 2012 as compared to $8.0 million for the comparable six month period
in 2011. The decrease of $0.2 million is primarily the result of
decreased employee compensation and benefit expenses of $0.3 million,
net of one-time restructuring expenses of $0.4 million.
The Company reported net income of $20.9 million or $0.61 per share for
the first half of 2012 compared to a net loss of $19.6 million or $0.69
per share for the first half of 2011.
The Company's net cash used in operating activities during the first
half of 2012 was $18.1 million, which represents an increase in cash
usage from $15.3 million for the comparable period in 2011. The $2.8
million increase in net cash usage is primarily attributed to the
Company's payment of $3.0 million to Telles in March of this year to
acquire all of the existing inventory from the ended joint venture.
BUSINESS UPDATE
In the first half of 2012, Metabolix engaged in extensive discussions
with prospective manufacturing and commercialization partners for
biopolymers and focused on evaluating certain manufacturing options and
locations worldwide. Today, the Company announced the outcome of this
process with the selection of Antibióticos as its manufacturing partner
and the signing of a letter of intent. Metabolix expects that
Antibióticos will begin producing demonstration quantities of Mirel
biopolymer resin in early 2013. The companies intend to complete a
contract manufacturing agreement that Metabolix expects will lead to
commercial supply later in 2013.
In the second quarter of 2012, Metabolix continued the launch of Mirel
biopolymers with the sales of inventory to existing customers and supply
of product samples to potential customers for new applications. Product
sales to European customers of film grade resin accounted for a majority
of quarterly sales. Europe represents the largest market for bioplastic
materials worldwide. The Company is managing more than 5 million pounds
of existing product inventory and expects to bridge core customers to
new supply when it becomes available.
In its second technology platform, Metabolix is developing four-carbon
(C4) and three-carbon (C3) chemicals from biobased sources using
proprietary, patented fermentation technology and the "FAST"
(fast-acting, selective thermolysis) recovery process. In the second
quarter, Metabolix continued to advance its technology and engaged in
discussions with prospective C4 chemicals customers.
Metabolix has also continued to make technical advancements in its C3
industrial chemicals program focused on biobased acrylic acid. In the
second quarter of 2012, Metabolix successfully scaled-up recovery of
acrylic acid from dried biomass using the "FAST" process in the
Company's Cambridge laboratory. Today, the Company also noted that it
has started shipping sample quantities of dried biomass for conversion
to biobased acrylic acid for customer evaluation.
In the second half of 2012, Metabolix plans to continue fermentation
scale up, engineering of microbial strains, and development and
optimization of its FAST recovery technology to produce biobased
industrial chemicals to meet or exceed chemical industry specifications
for quality and purity. The long term goal of the chemicals program is
to commercialize the Company's technology independently or through
commercial alliances.
In its third technology platform, crop-based businesses, Metabolix has
continued work on developing an innovative biorefinery system which uses
plant crops to co-produce biobased chemicals with bioenergy. In 2012,
Metabolix expects to continue to advance research under a $6 million
grant by the U.S. Department of Energy ("DOE") to produce PHB in
switchgrass to co-produce densified biomass for fuel and to produce
value-added crotonic acid. The Company expects to continue to identify
opportunities for additional grants and collaborations to fund and
advance its crop platform.
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 today at
4:30 p.m. (Eastern) to discuss the results of the second quarter ended
June 30, 2012. The Company will also provide an update on the business
and answer questions from the investment community. A live webcast of
the call with slides can be accessed through the Company's website at www.metabolix.com
in the investor relations section. To participate in the call, dial
toll-free 1-888-523-1227 or 719-325-2348 (international). The pass code
is 6049575. 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
6049575. The replay will be available beginning at 7:30 p.m. (Eastern)
on Thursday, July 26, 2012 and will last through 11:59 PM (Eastern)
August 9, 2012. In addition, the webcast will be archived on the
Company's website in the investor relations section.
About Metabolix
Metabolix, Inc. is an innovation-driven bioscience company delivering
sustainable solutions to the plastics, chemicals and energy industries.
Metabolix is developing and commercializing MirelTM and Mvera,TM
a family of high-performance bioplastics which are biobased and
biodegradable alternatives to many petroleum-based plastics. Metabolix's
biobased chemicals platform utilizes its novel "FAST" recovery process
to enable the production of cost-effective, "drop in" replacements for
petroleum-based industrial chemicals. Metabolix is also developing a
platform for co-producing plastics, chemicals and energy from crops.
Metabolix has established an industry-leading intellectual property
portfolio that, together with its knowledge of advanced industrial
practice, provides a foundation for industry collaborations.
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; plans to manufacture biopolymer resin at
Antibioticos; plans to enter into a definitive contract manufacturing
agreement, the expected timing for production of biopolymer resin at
demonstration scale and at commercial scale; expectations for the
commercialization of Metabolix biopolymers and the Company's industrial
chemicals; plans to secure grant funding and collaborations; 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 risks and uncertainties detailed in
Metabolix's filings with the Securities and Exchange Commission,
including its 10-K for the year ended December 31, 2011 filed on March
12, 2012 and risks related to international business activities,
particularly in Europe. 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
|
|
|
|
Six Months Ended
|
|
|
|
|
|
|
|
|
June 30,
|
|
|
|
June 30,
|
|
|
|
|
|
|
|
|
2012
|
|
|
|
2011
|
|
|
|
2012
|
|
|
|
2011
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue from termination of ADM collaboration
|
|
|
$
|
-
|
|
|
|
$
|
-
|
|
|
|
$
|
38,885
|
|
|
|
$
|
-
|
|
Grant revenue
|
|
|
|
461
|
|
|
|
|
99
|
|
|
|
|
839
|
|
|
|
|
124
|
|
License fee and royalty revenue from related parties
|
|
|
|
89
|
|
|
|
|
92
|
|
|
|
|
134
|
|
|
|
|
393
|
|
Product revenue
|
|
|
|
373
|
|
|
|
|
-
|
|
|
|
|
387
|
|
|
|
|
-
|
|
Total revenue
|
|
|
|
923
|
|
|
|
|
191
|
|
|
|
|
40,245
|
|
|
|
|
517
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of product revenues
|
|
|
|
437
|
|
|
|
|
-
|
|
|
|
|
492
|
|
|
|
|
-
|
|
Research and development
|
|
|
|
5,006
|
|
|
|
|
6,000
|
|
|
|
|
11,051
|
|
|
|
|
12,199
|
|
Selling, general, and administrative
|
|
|
|
3,437
|
|
|
|
|
4,196
|
|
|
|
|
7,836
|
|
|
|
|
7,983
|
|
Total costs and expenses
|
|
|
|
8,880
|
|
|
|
|
10,196
|
|
|
|
|
19,379
|
|
|
|
|
20,182
|
|
Income (loss) from operations
|
|
|
|
(7,957
|
)
|
|
|
|
(10,005
|
)
|
|
|
|
20,866
|
|
|
|
|
(19,665
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income, net
|
|
|
|
9
|
|
|
|
|
23
|
|
|
|
|
26
|
|
|
|
|
43
|
|
Net income (loss)
|
|
|
$
|
(7,948
|
)
|
|
|
$
|
(9,982
|
)
|
|
|
$
|
20,892
|
|
|
|
$
|
(19,622
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
$
|
(0.23
|
)
|
|
|
$
|
(0.33
|
)
|
|
|
$
|
0.61
|
|
|
|
$
|
(0.69
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
|
$
|
(0.23
|
)
|
|
|
$
|
(0.33
|
)
|
|
|
$
|
0.61
|
|
|
|
$
|
(0.69
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of shares used in per share calculations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
34,183,702
|
|
|
|
|
29,824,008
|
|
|
|
|
34,160,018
|
|
|
|
|
28,372,371
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
|
|
34,183,702
|
|
|
|
|
29,824,008
|
|
|
|
|
34,264,428
|
|
|
|
|
28,372,371
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
METABOLIX, INC.
|
CONDENSED CONSOLIDATED BALANCE SHEET
|
UNAUDITED
|
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
|
|
|
|
December 31,
|
|
|
|
|
|
|
|
|
|
2012
|
|
|
|
2011
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash, cash equivalents and short-term investments
|
|
|
$
|
48,161
|
|
|
$
|
76,855
|
|
Inventory
|
|
|
|
|
|
|
2,821
|
|
|
|
-
|
|
Other current assets
|
|
|
|
|
|
1,626
|
|
|
|
1,584
|
|
Restricted cash
|
|
|
|
|
|
622
|
|
|
|
622
|
|
Property and equipment, net
|
|
|
|
|
1,845
|
|
|
|
2,276
|
|
Long-term investments
|
|
|
|
|
|
11,763
|
|
|
|
1,503
|
|
Other assets
|
|
|
|
|
|
|
95
|
|
|
|
72
|
|
Total assets
|
|
|
|
|
$
|
66,933
|
|
|
$
|
82,912
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity
|
|
|
|
|
|
|
|
|
|
|
Accounts payable and accrued liabilities
|
|
|
$
|
3,539
|
|
|
$
|
4,086
|
|
Short-term deferred revenue
|
|
|
|
|
296
|
|
|
|
2,914
|
|
Current portion of deferred rent
|
|
|
|
|
165
|
|
|
|
165
|
|
Long-term deferred revenue
|
|
|
|
|
-
|
|
|
|
35,944
|
|
Other long-term liabilities
|
|
|
|
|
|
262
|
|
|
|
340
|
|
Total liabilities
|
|
|
|
|
|
4,262
|
|
|
|
43,449
|
|
Total stockholders' equity
|
|
|
|
|
62,671
|
|
|
|
39,463
|
|
Total liabilities and stockholders' equity
|
|
|
$
|
66,933
|
|
|
$
|
82,912
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
METABOLIX, INC.
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
UNAUDITED
|
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
|
|
|
|
|
|
|
|
|
|
|
|
2012
|
|
|
|
2011
|
Cash flows from operating activities
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (loss)
|
|
|
|
|
|
|
|
$
|
20,892
|
|
|
|
$
|
(19,622
|
)
|
Adjustments to reconcile net income or loss to cash used in
operating activities:
|
|
|
|
|
|
|
|
|
Depreciation
|
|
|
|
|
|
|
|
|
|
718
|
|
|
|
|
770
|
|
Charge for 401(k) company common stock match
|
|
|
|
|
|
264
|
|
|
|
|
368
|
|
Stock-based compensation
|
|
|
|
|
|
|
|
2,083
|
|
|
|
|
2,442
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Other operating assets and liabilities
|
|
|
|
|
|
|
(717
|
)
|
|
|
|
(188
|
)
|
|
Deferred revenue
|
|
|
|
|
|
|
|
|
(38,562
|
)
|
|
|
|
931
|
|
|
Inventory
|
|
|
|
|
|
|
|
|
|
(2,821
|
)
|
|
|
|
-
|
|
|
Net cash used in operating activities
|
|
|
|
|
|
(18,143
|
)
|
|
|
|
(15,299
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities
|
|
|
|
|
|
|
|
|
|
|
|
Purchase of property and equipment
|
|
|
|
|
|
|
(287
|
)
|
|
|
|
(488
|
)
|
Purchase of investments
|
|
|
|
|
|
|
|
(47,935
|
)
|
|
|
|
(78,968
|
)
|
Proceeds the from sale and maturity of short-term investments
|
|
|
|
57,207
|
|
|
|
|
52,606
|
|
|
Net cash provided (used) by investing activities
|
|
|
|
|
8,985
|
|
|
|
|
(26,850
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from options exercised
|
|
|
|
|
|
|
|
19
|
|
|
|
|
48
|
|
Proceeds from public stock offering, net of offering costs of $2,336 |
|
|
|
-
|
|
|
|
|
49,357
|
|
|
Net cash provided by financing activities
|
|
|
|
|
|
19
|
|
|
|
|
49,405
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash and cash equivalents
|
|
|
|
|
(6
|
)
|
|
|
|
(4
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in cash and cash equivalents
|
|
|
|
|
|
(9,145
|
)
|
|
|
|
7,252
|
|
Cash and cash equivalents at beginning of period
|
|
|
|
|
|
21,277
|
|
|
|
|
12,526
|
|
Cash and cash equivalents at end of period
|
|
|
|
|
|
$
|
12,132
|
|
|
|
$
|
19,778
|
|
General Inquiries:
Metabolix
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