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When you look at the industrial enzymes market, it really is in-product that touch the average consumer everyday, whether its E10 or in this case C85, the gasoline going into your car, whether its around animal feed, detergens, backing, sweeteners or even within the oil and gas industry, there are applications for enzymes in our host of different products, typically, there are not the end product, there are part of a process.And for Verenium, our focus is on taping into more and more of the current industrial enzymes market with unique high performance products. And so you can see today its around $4 billion market, but it’s been growing at 6% to 8% per year, depending on the individual segment and there are new opportunities to brings products into new industries that we also think is gong to drive growth, and I’ll talk about our oil and gas product in that regard in a few minutes. When you look at the structure of the industry, this is one of the exciting things for company like Verenium. What our technology has shown with the eight commercial products we sold -- we sell today is that, we can differentiate our products against the competition and in part is because, there isn’t a lot of competition. When you look at the broad based enzyme players, people looking to bring products, a whole series of different industries, we really do focus on Novozymes and the Genencor division of Dupont. When you look at the other players they tend to be focused in areas like animal feed or other sub segments but not necessarily broadly across the market. What we bring is choice. We bring an alternative to the two players that are in the market. And what we focus on our markets where product performance in terms of differentiation is both measured and rewarded, because we are going head to head with a couple of very large players, and for us, it means we need to pick our markets carefully. We need to know that if we bring a higher performing product, it’s going to be rewarded because it’s going to be measured.
So taking a step back in terms of what make us different, I’ll talk about our technology briefly a bit later. But fundamentally it’s about our starting points. It’s about the efforts that happened in the 1995 to 2005 timeframe to look for extreme files in hostel environment, about going to undersea volcanic event, about seeing what’s in a paddle in Sakhalin Island off the East Coast of Russia.Of understanding what’s in Baja, California undersea volcanic event. When you start with genetic materials from really hostel environment, you can find industrial enzymes suited for use in really hostel environment. And that hostel environment can be defined as significant pH fluctuation, they can be defined as high thermostability, when I’m talking about differentiation, it’s really very much about making sure that we created an enzyme that works in somebody’s existing process. As appose to requiring them to change the process, change the temperature, change the pH to satisfy the need of the enzymes operating environment. This is where our products come from. So looking at those products, today we focus on three industries for selling our products. Our lead product Phyzyme phytase is in animal health. We have products for the green processing industry and also for the oil field services industry and I’ll go through those each in turn. I’d like to start with, what is the unmet need? Why do we have a product for animal health and nutrition? And this case it’s because phosphorus is a key nutrient that required for born strength and born growth in animals. And when you look at the poultry market, when you look at swine market is one of the critical nutrients. However, most of the feed that used in these markets like corn and wheat tend to be low in phosphorus content. So when you end up doing is you have a few choices. One, you can add dicalcium phosphate, you can look to boost the amount of phosphorus that is in the food, but then you end up having associated issues like the animal doesn’t observe all of it. It ends up going through, you end up with certain pollution issues, also it can expensive, because you having to mine it, sometimes in North Africa and bring it into the poultry farms that in the U.S. Read the rest of this transcript for free on seekingalpha.com