Metabolix, Inc. has executed a sale agreement of its biopolymer intellectual property and certain equipment and inventory at a total cost of $10 million to one of the affiliate of CJ CheilJedang Corporation (“CJ”). According to the agreement, CJ has made an initial payment of $2 million on the signing of letter of intent in August 2016, and the balance $8 million on the closing of the deal. Metabolix also signed a sublease deal with CJ covering approximately one-third of the Company’s Woburn, Massachusetts facility.
Explaining the company’s strategy to take forward the core business, Joseph Shaulson, president and CEO of Metabolix said “Completion of the transaction strengthens our balance sheet and provides resources to take Yield10 Bioscience forward as our core business. Yield10 is developing breakthrough technologies to significantly increase the inherent yield of food and feed crops. As we move forward, the Yield10 team will be focused on advancing our technology platforms, generating proof points on our portfolio of novel yield traits and forming collaborations around key crops.”
Metabolix, Inc., based in Woburn, Mass, is in the process of implementing its strategic plan for winding down its PHA biopolymer business and focusing on Yield10 Bioscience as its core business by developing technologies for the quantum jump in crop yield. Metabolix announced its new strategic direction and plans for restructuring to bring staffing levels to approximately 20 people and annual net cash burn rate in the range of $5 million
Yield10 wants to gain by Metabolix’s extensive track record of innovation through optimization of the flow of carbon intermediates in living systems. Adopting new approaches to improve plant metabolism through enhancing photosynthetic efficiency and carbon utilization, Yield10 is concentrating in crops such as camelina, canola, soybean and corn.