BioSpace.com

Biotech and Pharmaceutical
News & Jobs
Search the Site
 
   
Biotechnology and Pharmaceutical Channel Medical Device and Diagnostics Channel Clinical Research Channel BioSpace Collaborative    Job Seekers:  Register | Login          Employers:  Register | Login  

NEWSLETTERS
Free Newsletters
Archive
My Subscriptions

NEWS
News by Subject
News by Disease
News by Date
PLoS
Search News
Post Your News
JoVE

CAREER NETWORK
Job Seeker Login
Most Recent Jobs
Browse Biotech Jobs
Search Jobs
Post Resume
Career Fairs
Career Resources
For Employers

HOTBEDS
Regional News
US & Canada
  Biotech Bay
  Biotech Beach
  Genetown
  Pharm Country
  BioCapital
  BioMidwest
  Bio NC
  BioForest
  Southern Pharm
  BioCanada East
  US Device
Europe
Asia

DIVERSITY

INVESTOR
Market Summary
News
IPOs

PROFILES
Company Profiles

START UPS
Companies
Events

INTELLIGENCE
Research Store

INDUSTRY EVENTS
Biotech Events
Post an Event
RESOURCES
Real Estate
Business Opportunities

 News | News By Subject | News by Disease News By Date | Search News
eNewsletter Signup
Miles
Km80.5

   

Verenium Corporation (VRNM) Nets $37 Million From Asset Sale to Royal DSM


3/26/2012 8:50:10 AM

SAN DIEGO, March 26, 2012 /PRNewswire/ -- Verenium Corporation (Nasdaq: VRNM), a leading industrial biotechnology company focused on the development and commercialization of high-performance enzymes, today announced it has closed a transaction with DSM Food Specialties B.V., a business group of Royal DSM, in which Verenium has sold to DSM its Oilseed Processing business, licensed certain enzymes for use in the food and beverage markets, and will provide access to new gene libraries to be developed by Verenium. Verenium will receive $37 million in total consideration, including transaction and related expenses, on Monday, March 26, 2012.

"This agreement is a further example of the substantial value industry-leading companies place on our unique products and capabilities," said James Levine, President and Chief Executive Officer at Verenium. "Moving forward, Verenium remains committed to realizing the growth potential from our commercial and pipeline products, and using our proprietary technology to create new and valuable products."

Following the transaction, Verenium's business remains focused on providing novel enzymes in the areas of animal health and nutrition, grain processing and oilfield services. In addition, Verenium's robust pipeline of novel product candidates provides an important basis for future growth.

Transaction Terms

Key terms of the agreement between the companies include:

  • DSM has acquired Verenium's oilseed processing enzymes, including Purifine® PLC, product candidates, and the intellectual property covering these products and product candidates for use in the oilseed processing market. In addition, DSM has assumed Verenium's existing oilseed processing customers and the Company's partnership agreements with Bunge, Alfa Laval and Desmet Ballestra.
  • Verenium has granted DSM exclusive licenses to its alpha-amylase and xylanase enzyme products for use in the food and beverage markets. Verenium retains certain rights to these products in markets outside of the food and beverage markets.
  • Verenium and DSM have entered into a supply agreement for Verenium to manufacture the Purifine® PLC, alpha-amylase and xylanase products for DSM.
  • Verenium will develop new gene libraries for use by DSM. Both companies will have full access to the libraries for the purpose of identifying new product opportunities. This transaction does not impact Verenium's existing gene libraries.
  • The products acquired by DSM represented approximately $7.5 million in revenue to Verenium in 2011.

"We are pleased to have secured this capital without issuing new shares, and believe we have positioned ourselves to create value for shareholders. As a result of this transaction, we are able to retire our remaining debt and create a capital structure appropriate for our business," said Jeff Black, Chief Financial Officer at Verenium. "We are now better positioned to invest in our current commercial products and pipeline and focus on driving long term value."

Conference Call

The Company will provide additional information regarding this transaction during its conference call on Monday, March 26, 2012 at 4:30 p.m. EDT. This call may be accessed by dialing 877-755-7422 (domestic) or 678-894-3067 (international) and providing the passcode 66160583. A link to the live webcast may be accessed by visiting the "Investors" section of the Company's website at http://www.verenium.com. A replay of the event will be available on the Company's website approximately two hours after the call and will be archived for 30 days.

UBS served as exclusive advisor to Verenium on this transaction. Stifel Nicolaus Weisel also served as a financial advisor to the Company.

About Verenium

Verenium, an industrial biotechnology company, is a global leader in developing high-performance enzymes. Verenium's tailored enzymes are environmentally friendly, making products and processes greener and more cost-effective for industries, including the global food and fuel markets. Read more at www.verenium.com.

DSM Bright Science. Brighter Living.

Royal DSM is a global science-based company active in health, nutrition and materials. By connecting its unique competences in Life Sciences and Materials Sciences DSM is driving economic prosperity, environmental progress and social advances to create sustainable value for all stakeholders. DSM delivers innovative solutions that nourish, protect and improve performance in global markets such as food and dietary supplements, personal care, feed, pharmaceuticals, medical devices, automotive, paints, electrical and electronics, life protection, alternative energy and bio-based materials. DSM's 22,000 employees deliver annual net sales of around euro 9 billion. The company is listed on NYSE Euronext. More information can be found at www.dsm.com.

Forward-Looking Statements

Statements in this press release that are not strictly historical are "forward-looking" and involve a high degree of risk and uncertainty. These include, but are not limited to, statements related to Verenium's technology, products and product candidates, lines of business, operations, capabilities, commercialization activities, corporate partnerships, target markets, future financial performance, and near-term and longer-term growth and prospects. 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 the differences include, but are not limited to, risks associated with Verenium's strategic focus, technologies, products and product candidates, dependence on patents and proprietary rights, protection and enforcement of its patents and proprietary rights, the commercial prospects of the industries in which Verenium operates and sells products, Verenium's dependence on manufacturing and/or license agreements, its ability to achieve milestones under existing and future collaboration agreements, the ability of Verenium and its partners to commercialize its technologies and products (including by obtaining any required regulatory approvals) using Verenium's technologies, the timing for launching any commercial products and projects, the ability of Verenium and its collaborators to market and sell any products that it or they commercialize, the development or availability of competitive products or technologies, the future ability of Verenium to enter into and/or maintain collaboration and joint venture agreements and licenses, and risks and other uncertainties more fully described in Verenium's filings with the Securities and Exchange Commission, including, but not limited to, Verenium's annual report on Form 10-K for the year ended December 31, 2011. These forward-looking statements speak only as of the date hereof, and Verenium expressly disclaims any intent or obligation to update these forward-looking statements.

Contacts:

For Verenium

Kelly Lindenboom

858-431-8580

kelly.lindenboom@verenium.com

Sarah Carmody

858-431-8581

sarah.carmody@verenium.com

For DSM

DSM Corporate Communications

DSM Investor Relations

Herman Betten

Hans Vossen

tel. +31 (0) 45 5782017

tel. +31 (0) 45 5782864

e-mail media.relations@dsm.com

e-mail investor.relations@dsm.com

SOURCE Verenium Corporation



Read at BioSpace.com
Read at News Release
Read at 24/7 Wall St.

   

ADD TO DEL.ICIO.US    ADD TO DIGG    ADD TO FURL    ADD TO STUMBLEUPON    ADD TO TECHNORATI FAVORITES