Metabolix Announces Termination of Telles Joint Venture
Metabolix to Redefine Strategy for Bioplastics and Renewable
CAMBRIDGE, Mass.--(BUSINESS WIRE)--
January 12, 2012 -- Metabolix,
Inc. (NASDAQ: MBLX), a bioscience company focused on developing
clean, sustainable solutions for plastics, chemicals and energy, today
announced that the Archer Daniels Midland Company (ADM) has given notice
of termination of the Telles, LLC joint venture for PHA bioplastics. The
effective date of the termination will be February 8, 2012. Metabolix
will hold a webcast conference call for investors today at 5:00 pm EST.
Telles was established as a joint venture between Metabolix and ADM in
July 2006. The joint venture sells PHA-based bioplastics, including
Mirel and Mvera, in the US, Europe and other countries.
ADM recently undertook a strategic review of its business investments
and activities and made the decision to focus resources outside of
Telles. As the basis for the decision, ADM indicated that the projected
financial returns from the alliance were too uncertain. After the
termination, ADM will retain its manufacturing plant in Clinton, Iowa
that has been producing Mirel resins for Telles.
All Metabolix technology that was used in the joint venture, including
intellectual property rights, will revert solely to Metabolix. In
addition, Metabolix will have no ongoing obligation under the ledger
account which was funded by ADM to finance the Clinton plant and certain
Telles operating costs.
"Clearly, we are disappointed by ADM's decision to withdraw from Telles.
While this is a setback, we remain committed to successfully
commercializing PHA bioplastics. Over the past few years, we now have
proven the technology at industrial scale and believe that we now have
the opportunity to launch this business with a different business
model," said Richard Eno, Chief Executive Officer of Metabolix. He
continued, "We sincerely thank our customers, distributors, and partners
for their interest in developing PHA-based solutions to address a
growing market need for bioplastics. We will be evaluating alternate
plans for commercialization and clearly wish to supply this growing
market in the future."
Richard Eno added, "Most of all, I would like to express my appreciation
for the efforts put forth by the Telles and ADM Polymer teams, who have
demonstrated the commercialization of PHA bioplastics at world scale."
Metabolix is currently conducting a strategic review of its business
priorities and plans for 2012. The Company plans to continue focus on
development of renewable industrial chemicals and noted that it has
continued to make good forward progress and remains in ongoing
discussions with potential partners. In light of the Telles termination,
Metabolix plans to retain a core team in its bioplastics group to
provide continuity with the technology and market. Due to the
termination of the agreement with ADM, Metabolix is now free to open
discussions with alternative manufacturing and commercialization
partners for PHA bioplastics.
In conjunction with a shift in priorities for 2012, Metabolix will
restructure its bioplastics business and downsize operations with
details being finalized. Metabolix ended 2011 with an unaudited cash and
investment balance in excess of $78 million. In 2012 the Company
currently expects to take restructuring charges of approximately $2 to
$3 million, resulting in estimated cash usage in 2012 between $23 and
$28 million. Metabolix currently expects to end 2012 with cash and
investment balances between $50 and $55 million. Metabolix is committed
to effectively managing its cash resources while creating significant
value from its core technology platforms. The Company will report 2011
year end financial results and will discuss plans for 2012 during its
year end earnings call on March 6, 2012.
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
Thursday, January 12, 2012 at 5:00 p.m. (Eastern) to discuss the content
of this announcement. The Company will also answer questions from the
investment community. To participate, dial toll-free 1-888-500-6974 or
1-719-457-2707 (international). The pass code is 4086939. The conference
call will also be webcast and can be accessed from the Company's website
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
4086939. The replay will be available beginning at 8:00 p.m. (Eastern)
on Thursday, January 12, 2012 and will last through 11:59 p.m. (Eastern)
January 26, 2012. In addition, the webcast will be archived on the
Company's website in the investor relations section.
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.
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
expectations for launching the bioplastics business, accelerating
activities in the Company's renewable industrial chemicals program,
plans for restructuring the Metabolix business, and expected 2012 cash
usage and restructuring charges, 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 without limitation uncertainties related to
the market for Mirel bioplastics, the Company's ability to develop
alternative manufacturing capabilities or new partnerships, the early
stage of the Company's planning for restructuring, and other risks and
uncertainties that are 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.
Metabolix assumes no obligation to update any forward-looking
information contained in this press release or with respect to the
announcements described herein.
Keith Giannini, (781) 684-0770
Palczynski, (203) 682-8229
Source: Metabolix, Inc.
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