Verenium Corporation ( VRNM) Q3 2010 Earnings Call Transcript November 9, 2010 5:00 pm ET Executives Kelly Lindenboom – VP, Corporate Communications Carlos Riva – President and CEO Janet Roemer – President and COO Jamie Levine – EVP and CFO Analysts Rob Walker – Jefferies Paul Resnick – Olympia Capital Markets Presentation Operator
Such statements are only predictions, and actual events or results may differ materially from those projected in such forward-looking statements. Factors that could cause or contribute to differences include, but are not limited to, risks related to our IP partners, competitors, and regulatory and market forces.Certain of these factors and others are more fully described in our filings with the SEC, including but not limited to our report on Form 10-Q for the quarter ended September 30, 2010, which was filed with the SEC today. These forward-looking statements speak only as of the date hereof and the company expressly disclaims any intent or obligation to update these forward-looking statements. I will now turn the call over to Carlos. Carlos Riva Thanks, Kelly. Good afternoon, everyone, and thank you for joining us on today's call. Since our last quarterly earnings call, we have engineered a major transformation here at Verenium, returning our focus to our core enzyme business. As you are likely aware, in mid-July, we announced the transaction with BP, which subsequently closed in early September for the sale of our cellulosic biofuels business. This is an important strategic win for several reasons. First, the transaction focuses the company’s efforts on the singular goal of discovering, developing, manufacturing and selling industrial enzymes to high-growth industries. In short, this is a return to our roots as an industrial enzyme company. Secondly, we have now sold our capital intensive and higher risk cellulosic ethanol business to BP, thus dramatically reducing our cash needs, as Jamie will explain later in the call. Thirdly, the proceeds from this transaction provide us with a more stable platform for which to grow the business and address our outstanding debt obligations. All of these factors taken together orient the company around two pillars for creating value for shareholders. First, our portfolio of commercial enzymes currently produced and sold to various industries; and second, our best-in-class for search and development capabilities supporting our pipeline of new enzyme products, which will support running future growth.
I’m pleased to report that despite the significant corporate organizational effort required to complete the BP transaction during the third quarter, we have continued to make steady progress in growing our enzymes business over this period. So notable recent highlights include, in September, we announced the launch of Deltazym, a highly active glucoamylase enzyme for the saccharification of liquefied starch in the fuel ethanol production process.In October, we announced that we had licensed to Bunge a new lipase enzyme that creates enhanced health benefits when used in the production of edible oil products. This product is a result of a collaboration with Bunge, an event of the regulatory phase with some commercial development work being done in parallel. We also announced the receipt of regulatory approval for the sale of purifying in China, which we see as a critical market. This now positions Verenium to sell Purifine PLC in all the major oilseed processing areas of the world, which include Argentina, Brazil, the United States, and China. And furthermore, we’ve announced the extension of our joint marketing agreement with Alfa Laval to further speed the adoption of our Purifine enzymatic degumming process. Before I turn the call over to Janet for a more detailed review of the business, I would like to comment on two important strategic aspects of our business going forward, namely, our environmental profile and our biofuels business. With regards to our environmental profile, Verenium’s track record of growth for the last few years is built on our ability to design and then sell our enzyme products based on their high performance value-creating properties. Read the rest of this transcript for free on seekingalpha.com