Metabolix, Inc. (NASDAQ:MBLX) Investor Presentation

Transcription

1 Metabolix, Inc. (NASDAQ:MBLX) Investor Presentation Focused on Yield10 Bioscience as the Core Business Third Quarter Financial Results and Business Update November 9, 2016

2 Safe Harbor Statement* The statements made by Metabolix, Inc. (the Company, we, our or us ) herein regarding the Company and its business may be forwardlooking in nature and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of Forward-looking statements describe the Company s future plans, projections, strategies and expectations, including statements regarding future results of operations and financial position, business strategy, prospective products and technologies, timing and likelihood of success, and objectives of the Company for the future, and are based on certain assumptions and involve a number of risks and uncertainties, many of which are beyond the control of the Company, including, but not limited to, the risks detailed in the Company s Quarterly Report on Form 10-Q for the quarter ended June 30, 2016 and other reports filed by the Company with the Securities and Exchange Commission (the SEC ). Forward-looking statements include all statements which are not historical facts, and can generally be identified by terms such as anticipates, believes, could, estimates, intends, may, plans, projects, should, will, would, or the negative of those terms and similar expressions. Because forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified and may be beyond the Company s control, you should not rely on these statements as predictions of future events. Actual results could differ materially from those projected due to our history of losses, lack of market acceptance of our products and technologies, the complexity of technology development and relevant regulatory processes, market competition, changes in the local and national economies, and various other factors. All forward-looking statements contained herein speak only as of the date hereof, and the Company undertakes no obligation to update any forward-looking statements, whether to reflect new information, events or circumstances after the date hereof or otherwise, except as may be required by law. *Under the Private Securities Litigation Reform Act of

3 Financial Results Balance Sheet $9.8 M in unrestricted cash at end of Q Expect cash on hand together with government grant revenue will support operations into Q Continuing Operations Q net loss of $1.5 M or $0.05 per share Expense profile will continue to improve in Q4 Restructuring Substantially Complete/Discontinued Operations Sold biopolymers assets (IP, equipment, inventory) to CJ CheilJedang for $10 M CJ subleasing 1/3 of Woburn facility; will offset leasing costs Reduced headcount to approx. 29 in Q3; On track to reach approx. 20 employees in Q4 Paid out $0.8 M, issued 275,000 shares and transferred certain biopolymer related equipment in connection with the restructuring in Q3 Estimated $2.5 M in remaining restructuring costs expected to be paid out through May 2018 Estimate that annual net cash usage to operate Yield10 will be approx. $5 to $6 million, excluding restructuring costs 3

4 Company Overview Yield10 Bioscience is working to produce step-change improvements in crop yield to enhance global food security Headquartered in Woburn, MA Oilseeds center of excellence in Saskatoon, Canada Based on 10+ years of Metabolix crop science research Launched as Yield10 Bioscience in September 2015 Planning to rebrand as Yield10 Bioscience Yield10 is bringing the extensive expertise and track record of Metabolix in optimizing the flow of carbon in living systems to the agriculture sector with a focus on increasing yield in key row crops Impressive track record of biotechnology innovation -- more than 350 patents issued on legacy inventions 10 recent patent applications for increased crop yield (IP foundation for Yield10) Initial development targets are canola, soybean and corn Additional market opportunities include licensing or partnering in other crops, such as cotton, alfalfa, sorghum, rice, potato, sugarcane and sugarbeet 4

5 Yield10 The Opportunity A New Crop Science Paradigm to Enhance Global Food Security 9 October 2009 Revised June, 2015 GA/EF/3242 Food Production Must Double by 2050 to Meet Demand from World s Growing Population Y10 is aligned with compelling megatrends Global population growth from 7 billion to 9.6 billion by 2050 Reduction in available land due to infrastructure growth Increased pressure on scarce water and other resources Changing global weather patterns Environmental issues with intensive agriculture Need more than 70% increase in food production over the same period But can the current rates of crop yield increase get us there? Realizing a New Vision for Agriculture: A roadmap for stakeholders Reality traditional breeding and business models cannot solve this problem 5

6 NY Times Article Business Day Uncertain Harvest Doubts About the Promised Bounty of Genetically Modified Crops LONDON The controversy over genetically modified crops has long focused on largely unsubstantiated fears that they are unsafe to eat. But an extensive examination by The New York Times indicates that the debate has missed a more basic problem genetic modification in the United States and Canada has not accelerated increases in crop yields or led to an overall reduction in the use of chemical pesticides. Go to the article by clicking Here. 6

7 Yield10 The Opportunity A New Crop Science Paradigm to Enhance Global Food Security Step change yield impact: 17% yield increase for corn Plus traditional breeding Traditional breeding won t get us there Failure could lead to global catastrophe Has re opened the GMO conversation Technology solutions are needed and can be developed BUT Global dissemination should be maximized New business models will be required 7 Yield Trends Are Insufficient to Double Global Crop Production by 2050 Deepak K. Ray, Nathaniel D. Mueller, Paul C. West, Jonathan A. Foley

8 Yield 10 Approach Fundamentally increasing crop yield is a complex two step carbon optimization problem 1) Increase the rate of carbon fixation in crops having the C3 (e.g. soybean) and C4 (e.g. corn) photosynthesis systems 2) Directing the increased fixed carbon to the harvested part of the plant, mostly seed Robust plants with targeted carbon deposition CO 2 Biomass Fix more carbon per acre or unit input Enhanced Carbon Capture Photosynthesis (Source) Plant Central Metabolism Seed Yield Starch or oil Nutrition Industrial Products Carbon fixed in products (Sink) Enhanced Carbon Capture >>>> Targeted Carbon Deposition 8 The Yield10 technology platform leverages advanced metabolic engineering systems and proprietary transcriptome network analysis to enhance carbon capture and control metabolic pathways driving crop yield

9 Technology Platforms Yield10 applies its Smart Carbon Grid for Crops and T3 Technology Platforms to the complex and challenging goal of producing step change improvements in crop yield Demonstration Of value of lead traits in major food and feed crops including canola, soybean and corn Translation Using the Camelina Fast Field Testing platform to accelerate timelines for validation and optimization of breakthrough yield traits Discovery Smart Carbon Grid for Crops Yield10 leverages microbial diversity to eliminate bottlenecks in plant carbon metabolism using its Smart Carbon Grid for Crops The T3 Platform Yield10 uses its T3 Platform to identify crop global regulator genes achieve step change improvements in crop yield 9

10 Photorespiration: A Well Known Limit to Yield in C3 plants Photorespiration: A side reaction in crops having the C3 photosynthesis system Many key food crops rely on C3 photosynthesis Rice, wheat, soybean, canola, potato, etc. Calvin cycle of photosynthesis, key enzyme RuBisCo fixes carbon dioxide producing sugar for plant growth C3 photosynthesis reactions Photorespiration Calvin Cycle 1 C3 crops have considerable yield loss due to photorespiration, a wasteful cycle of photosynthesis where RuBisCo fixes oxygen produces a toxic compound that must be recycled leads to significant energy loss and net loss of fixed carbon 0.5 loss of fixed carbon toxic molecule recycled through photorespiration sugar Crops with C4 photosynthesis have evolved separately and have 4-5x higher yield than crops with C3 photosynthesis 10

11 Photorespiration: A Well Known Limit to Yield in C3 plants Photorespiration: A side reaction in crops having the C3 Photosynthesis system Recently yield losses in C3 crops due to photorespiration have been quantified (Walker et al., 2016) estimated 36% and 20% yield loss in US soybean and wheat A 5% reduction of photorespiration in soybean and wheat in the US would add ~$500 million/year of value Models suggest that photosynthesis could improve by 12-55% in the absence of photorespiration 11

12 Smart Carbon Grid for Crops Innovative Approach to Increasing Seed Yield in C3 Crops (vast majority of food consumed by humans, e.g., canola, soybean, rice, wheat, potato, cotton, alfalfa) Enhance photosynthesis (carbon capture) CO 2 Shift carbon distribution from biomass to seed ~5-20% potential yield increase C3004 trait Sugar C3003 trait Reduce photorespiration ~35% potential yield increase Seed (Food) + Biomass + CO 2 CO 2 Central metabolism 12

13 2016 Fast Field Testing in Camelina 2016 Multi-Site Fast Field Testing of Novel Traits in Camelina; Harvest Fall 2016 Build robust system for rapid field testing of novel strategies and traits Using camelina platform as a proxy for oilseed and other C3 crops --- rapid genetic transformation, fast growth cycle time, ability to bulk up seeds quickly, agronomic performance suitable for field testing Use results and molecular analysis to guide further development and next round of field tests Trait Technology Target C3003 (In-licensed) Improve carbon capture from C3 photosynthesis C3004 (In-licensed) Partition more carbon from leaf, stem, etc. (biomass) to seed Planted May 2016 C3005 A, B (In-licensed) Recapture carbon lost as C0 2 from cellular metabolism C3006 (In-house) Recapture carbon lost as C0 2 by seed metabolism July 2016 Link to a White House OSTP Fact Sheet here. 13

14 Traits in Development As a result of over 4 years investment in fundamental crop research projects, we have a number of yield traits under development for applications in major food crops; Opportunities exist for licensing and/or partnerships Smart Grid T3 Platform Trait C3003 (1 st Gen) C3004 (2 nd Gen) C3005/6 (1 st Gen) C4001 (1 st Gen) C4002 (1 st Gen) C4003 (1 st Gen) C4004 (2 nd Gen) C4005 (2 nd Gen) C4006 (2 nd Gen) Biological Mechanism Reduce photorespiration Value GMO Editing Status Seed yield Water use + No Greenhouse data, Initial third party field studies Carbon partitioning Seed yield + + Third party data Increased carbon conversion efficiency Global regulator gene Photosynthesis Global regulator gene Photosynthesis Global regulator gene Photosynthesis Current Activity Next Steps Camelina field testing Canola and soybean in development Camelina field testing, editing underway Oil content, Seed yield + No Greenhouse data Camelina field testing All oilseeds Licensing/Partnering Opportunities alfalfa, cotton, potato, rice, wheat, sugarbeet and potentially corn Corn?, cotton, potato, rice, wheat, sugarbeet Yield + + Greenhouse data Corn transformation Forage, all major crops Yield + + Greenhouse data Corn transformation Forage, all major crops Yield + + Greenhouse data Corn transformation Forage, all major crops Regulator gene Yield + + Greenhouse data Corn transformation All major crops Regulator gene Drought + + Greenhouse data Corn transformation All major crops Regulator gene Drought + + Greenhouse data Corn transformation All major crops 22 additional targets for genome editing have been identified and will undergo validation with potential for IP 14

15 Trait Development Process Indicative Development Timeline for C3003 Crop/Trait Year Translation Camelina/Gen 1 C3003 Field test Field test Camelina/Gen 2 C3003 Greenhouse Field test Camelina/Gen 3 C3003 Greenhouse Field test Canola/Gen 1 C3003 Greenhouse Initial Field Test Field trial Field trial Canola/Gen 2 C3003 Greenhouse Initial Field Test Field trial Canola/Gen 3 C3003 Demonstration Soybean/Gen 1 C3003 Greenhouse Initial Field Test Field trial Field trial Soybean/Gen 2 C3003 Greenhouse Initial Field Test Field Trial Field Trial Rice/Gen 1 C3003 Greenhouse 15 Commercial value increases and risk decreases as we progress through field validation, with numerous options for value capture along the way

16 Value Creation Opportunity Yield10 Seeks to Participate in Incremental Value Created by Yield10 Technologies Example of potential value creation opportunity in U.S. soybean Approximately 84 million acres planted in the U.S.* 10 bushel/acre increase in yield Average price approximately $10.00 per bushel Approximately $8.4 billion of potential value creation *Source: USDA Acreage Report 6/30/16 16

17 Upcoming Milestones Yield10 is working to progress its yield enhancement technologies and build collaborations Continue to leverage academic collaborations to access breakthrough crop science Progress Fast Field Testing platform development and trials in Camelina Complete field tests, harvest seed, collect and analyze data and refine testing platform and protocols Continue to deploy technology into camelina, canola, soybean and corn lines Use Fast Field Testing results to guide go/no-go decisions on row crop transformation activities Plan and initiate additional Fast Field Tests for 2017 growing season Leverage Smart Carbon Grid for Crops and T3 Platform technologies to identify additional trait leads Secure Ag industry collaborations and additional grants Publication of technical papers on key technologies Continue to build intellectual property portfolio 17

18 Metabolix, Inc. (NASDAQ:MBLX) 19 Presidential Way Woburn, MA 01801