Metabolix considering sale of specialty PHA biopolymers business and Yield10 bioscience program

In the face of continuing and significant challenges and uncertainties, Metabolix, Inc has announced that it is exploring ‘strategic alternatives’ for its specialty biopolymers business and for its Yield10 crop science program. The company cited outside strategic interest in its biopolymers business as well as a challenging financing environment as key considerations leading to this development.

According to the statement released by the Metabolix, strategic alternatives may include selling the company’s specialty biopolymers business to a third party with strategic interest in acquiring the business, and either refocusing the Company’s resources on development and commercialization of its Yield10 Bioscience program, a program targeted at breakthrough technology for improved crop yield, or simply jettisoning the Yield10 business as well.

Metabolix is currently engaged in discussions with interested parties regarding the potential sale of the specialty biopolymers business as an operating business and may engage in discussions with additional parties as it progresses through its strategic review. In addition, the company has been working on the potential “spin out” of Yield10 Bioscience for the past several months and is currently gauging interest among agriculture industry players and venture investors for the potential sale of Yield10 as an alternative to continuing to develop the crop science business internally. There are numerous risks and uncertainties associated with the company’s exploration of strategic alternatives and there can be no assurance that these efforts will be successful, stated the company.

The company is trying to secure additional capital before the end of the month. As of March 31, 2016, the company had unrestricted cash and cash equivalents of approximately $5.3 million. The company is seeking additional funding to complete its review of strategic alternatives and is currently exploring various avenues, next to traditional equity financing and its equity facility with Aspire Capital.

If Metabolix is unsuccessful in securing additional funding or otherwise funding its strategic review process and operations, it will be forced to wind down some or all of its operations and pursue options for liquidating the company’s assets, including inventory, equipment and intellectual property.

In light of these developments, Metabolix will not be hosting a conference call to review its first quarter 2016 financial results. Details concerning first quarter 2016 performance will be provided in the Company’s Form 10-Q for the quarter ended March 31, 2016. The Company is also advising stockholders that there will be no company presentation or question and answer session at its upcoming Annual Meeting of Stockholders on May 19, 2016. Business at the Annual Meeting will be limited to voting on the matters described in the Company’s Proxy Statement dated April 19, 2016.