US Biotech Calyxt Considers Strategic Alternatives
The board of directors at US plant-based synthetic biology company Calyxt is evaluating potential strategic alternatives to maximize shareholder value, the company announced on Sept. 22. Options may include financing alternatives, merger, reverse merger, other business combinations, an asset sale or licensing. A timescale for completing the process has not yet been disclosed.
In October 2021, Calyxt announced it was shifting from a traditional agricultural-focused business model to one that serves an expanded group of end markets and diversified base of customers. It said its proprietary PlantSpring technology platform and BioFactory production system is “distinctively qualified” to meet rising demand for more environmentally friendly plant-based chemistries from cosmeceutical, nutraceutical and pharmaceutical markets, as well as manufacturers of advanced materials and chemicals
Reporting on its second-quarter results on Aug. 4, Calyxt said it had received nine new chemistries for evaluation from potential customers during that quarter, taking the total number of chemistries evaluated for development with its PlantSpring platform to 95.
Of these 95 chemistries, 31 have met Calyxt’s target product profile (TPP) criteria and are being further studied and discussed with potential customers. Management’s goal is to have between two and four “customer-demand driven” compounds for development by year end, using the TPP criteria.
In addition, the Roseville, Minnesota-based company is performing a pilot project on a potential high-value chemistry for a large global consumer packaged goods company. Calyxt expects to deliver an engineered solution in early 2023, which could form the basis for a formal engagement to complete the chemistry’s development and production.
The company also reported that discussions are progressing with multiple potential infrastructure partners that would produce chemistries in various bioreactor sizes, ranging from pilot to commercial scale. “These advancements potentially accelerate Calyxt forward in terms of the speed at which we could bring our chemistries to customers,” said president and CEO Michael Carr.
Author: Elaine Burridge, Freelance Author
