This year was a pivotal for Verenium in many ways both operational and financial as announced by the company today. In particular, on the financial side, the company raised $98.3 million and reduced operating losses through the sale of assets to BP; repurchased $21 million of convertible notes, extinguishing all remaining 8% notes; and are on track to achieve revenue and gross margin targets for 2010.
- • Launched Xylathin™, a highly active enzyme designed to significantly improve the economics of fuel ethanol production from cereal grains such as wheat.
- • Obtained regulatory approval to sell Purifine® PLC in China, which together with existing approvals to sell the enzyme in Argentina, Brazil and the US, covers all major oilseed processing markets.
- • Extended a successful marketing partnership with Alfa Laval and entered into a new marketing partnership with Desmet Ballestra, both of which leverage global sales forces to market Purifine PLC enzyme for degumming edible oils.
- • Licensed an enzyme from the Company’s product pipeline to Bunge targeted at creating healthier, higher value edible oil.
“2010 has been a significant year of transition for Verenium as we moved from being biofuels oriented to being focused on building the next leading industrial enzymes company,” said Carlos Riva, Chief Executive Officer at Verenium. “We believe we are now well positioned — both operationally and financially — to execute on our business plan and to achieve our goals.”
In addition, Verenium has also set its financial guidance and corporate goals for 2011 that include achieving revenues between $55-60 million with a product gross margin of $21-24 million. In addition, they have set their R&D budget for $14-14 million and their SG&A between $19-21 million. Other budget items of note including the allocation of $10 million to build a new facility in San Diego, CA during the next two years.
“The guidance we are providing today lays out the solid growth in both revenue and gross margin that we believe we can generate from our commercial portfolio now that we have the ability to make the investments required for its development. Further, we are managing both R&D and SG&A expenses to a level that we believe is more sustainable for the Company moving forward,” said James Levine, Chief Financial Officer at Verenium. “Importantly, taken together, we believe these steps demonstrate our focus on advancing our pipeline products to commercial status and achieving profitability.”