Metabolix to Cease Biopolymer Operations
US-based Metabolix is quitting the biopolymers business and instead turning its focus to develop its Yield10 crop science program that it launched in September 2015. The biopolymer assets are up for sale and around 45 jobs will be lost, roughly half of its current workforce. The company said it may also sell or license all or parts of its biopolymer inventory, equipment and intellectual property.
Once the restructuring is complete, in the coming months, Metabolix will rebrand itself as Yield10 Bioscience. It expects its annual cash burn rate to drop drastically to around $5 million compared to the $25 million seen prior to the restructuring. Additional capital resources are being sought to support the business transition, but if not successful, then Metabolix said it will be forced to close the remaining operations, including the Yield10 program, and liquidate the remaining assets.
Metabolix revealed last May that it was exploring strategic alternatives for its specialty biopolymers business and Yield10. The firm has struggled financially, posting losses of nearly $24 million in 2015, and $29.5 million in 2014.
It is unclear what impact the move will have on the proposed venture with CJ CheilJedang (CJ) announced in March 2016. The two companies signed an agreement that would have seen the South Korean industrial biotechnology firm finance, build and operate a 10,000 t/y polyhydroxyalkanoates plant at its site in Fort Dodge, Iowa.
Joseph Shaulson, president and CEO of Metabolix, said the company is starting a new chapter as it develops and commercializes innovative approaches to step-change yield improvements for important food and feed crops such as canola, soybean and corn. In the near term, the Yield10 team of about 20 people is working independently and also seeking agricultural industry partners to validate and commercialize new traits and identify gene-editing targets in these three crops.
Chief scientific officer, Olly Peoples, said that over the next several quarters, the company expects to complete ongoing field trials in oilseed crop camelina, as well as generating intellectual property and progressing its R&D efforts.
