Metabolix Outlines New Strategic Plan in Q3 Investor Call

November 7, 2014

http://biomassmagazine.com/articles/11173/metabolix-outlines-new-strategic-plan-in-q3-

investor-call

By Erin Voegele

Metabolix Inc. has released third quarter financial

results and reported it is implementing a strategic plan

to reshape the company into an operation more

focused on specialty biopolymers.

"We are managing our financial profile, while we

work to build market demand for our PHA

performance additive products. We also are on track

to have manufacturing up and running in late 2015 to

support an intermediate-scale biopolymers business

that will serve as the foundation for our longer-range

plans and the future growth of our business,” said

Joseph Shaulson, president and CEO of Metabolix.

In connection with the shift in focus, Metabolix indicated its board of directors has approved a

plan to discontinue operations of the company’s wholly owned German subsidiary, Metabolix

GmbH. The assets of the subsidiary have been sold to a German company that manufactures

engineering plastic compounds.

In October, the company implemented a restructuring to reflect a narrow strategic focus on PHA

biopolymers as performance additives and to modify staffing to a level necessary to support the

successful implementation of its new business strategy. According to Metabolix, the scope of the

restructuring also reflects a decision to suspend work on the company’s chemicals program.

During an investor call, Shaulson also spoke about the company’s decision to spin out its crops

program. Regarding staff cuts, the company has reduced the number of employees from 100 to

70 since the beginning of the year.

Johan van Walsem, chief operating officer of Metabolix, explained the company is targeting four

key application spaces for its PHA biopolymer, including PVC processing aids, PLA

modification, barrier coatings for paper, and margin degradable micropowders and micobeads.

He also noted the company is on track to have biopolymer production up and running in late

2015. The preliminary engineering study for the retrofit of an existing contract manufacturing

facility is complete, he said, and the company is finalizing construction and commissioning

schedule. We are on track to sign a contract manufacturing agreement during the fourth quarter,

van Walsem added.

Metabolix reported a net loss from continuing operations of $6.7 million, or 12 cents per share,

during the third quarter, compared to a net loss of $6.5 million, or 9 cents per share, during the

same period of last year. The company closed on a $25 million private placement of equity

financing during the quarter. As a result, an additional 50 million shares of common stock were

issues and are included in the weighted average share and loss per share calculations.

Total revenue from continuing operations was $600,000 for the quarter, consistent with the

revenue reported for the same period of last year. According to Metabolix, the revenue consisted

primarily of revenue from product sales and government grants. The company realized $100,000

in product revenue during the quarter, up from $39,000 during the same period of last year.

Research and development expenses for continuing operations were $4.1 million, down from

$4.5 million during the third quarter of 2013.