The Company reported net income of $13.1 million or $0.38 per share for the nine months ended September 30, 2012 compared to a net loss of $29.2 million or $0.96 per share, for the same period in 2011.
The Company’s net cash used in operating activities during the nine months ended September 30, 2012 was $24.4 million, which represents an increase in cash usage from $23.1 million for the comparable period in 2011. The $1.3 million increase in net cash usage is primarily attributed to the Company’s payment of $3.0 million to Telles in March of this year to acquire Telles inventory from the ended joint venture, offset by a decrease of $1.5 million in employee compensation and benefit expenses.
In the third quarter of 2012, Metabolix made progress across each of its business platforms. Key accomplishments included:Biopolymers
- Worked closely with Antibióticos to begin demonstration phase for biopolymer manufacturing. In the third quarter of 2012, Metabolix worked closely with Antibióticos to initiate the demonstration phase of manufacturing. Technology transfer for fermentation and recovery operations is under way, the construction process is ongoing and Metabolix expects that Antibióticos will begin producing demonstration quantities of biopolymer resin in early 2013. The companies intend to complete a contract manufacturing agreement that Metabolix expects will lead to commercial-scale production later in 2013. Metabolix currently anticipates total Antibióticos start-up costs, including facility modifications, to be in the range of $10 million-$13 million.
- Increased quarterly product shipments. Metabolix continues to build a pipeline of customers in anticipation of production in 2013 and showed a marked increase in orders shipped and billed in the third quarter of 2012 as compared to the second quarter 2012. During the quarter, Metabolix sold product inventory to existing customers and provided product samples to potential customers for new applications.
- Planned launch for new compostable film product. In the fourth quarter of 2012, Metabolix plans to launch a next generation certified compostable film product, Mvera TM B5008 biopolymer resin for film and bag applications. Metabolix has been sampling the product to customers over the last several weeks.
- Identified new, high value market opportunity in PVC. Metabolix continues to investigate new, high value applications for the Company’s technology. At a recent industry conference, Metabolix researchers reported data showing that Mirel biopolymers can provide a step change in impact modification, plasticization and process modification when added to PVC, or polyvinyl chloride, a polymer in widespread commercial use. Initial interest from potential customers has been strong.
- Accelerated partnering discussions with prospective partners for C4 and C3 chemicals. In its second technology platform, Metabolix is developing four-carbon (C4) and three-carbon (C3) chemicals from biobased sources using proprietary, patented fermentation technology and the “FAST” (fast-acting, selective thermolysis) recovery process. During the third quarter, Metabolix accelerated discussions with multiple firms evaluating the potential for an exclusive commercialization relationship for the C4 chemicals business. Partnering discussions are also ongoing in the C3 chemicals business.
- Continued to execute on the DOE grant. Metabolix is making good technical progress in research under a $6 million grant by the U.S. Department of Energy (“DOE”) to produce PHB in switchgrass to co-produce densified biomass for fuel and to produce value-added crotonic acid. The Company expects to continue to pursue opportunities for additional grants and collaborations to fund and advance its crop platform.