Solazyme expands Bunge JV, terminates ADM deal, closes up 8.6% post-earnings

[USA] Along with its Q3 results, Solazyme (NASDAQ:SZYM) has announced it’s expanding its oil JV with Bunge (NYSE:BG) to develop “a range of breakthrough oils for food and products for animal nutrition.”

Solazyme: “The expanded joint venture will build on Solazyme’s ground-breaking microalgae innovation platform, and on Bunge’s global leadership in food and ingredients, including vegetable oils. As part of the JV expansion, the partners also entered into an agreement to expand their co-funded research programs to include new unique products in nutrition and specialty fats .

AlgaWise Ultra Omega-9 Algae Oil, AlgaWise High Stability Algae Oil, and AlgaWise” Algae Butter structuring fats will be marketed by Bunge’s established global food oil sales and applications team.” Manufacturing will occur at a Brazilian Bunge plant.

Concurrently, Solazyme states it’s terminating a partnership with Archer-Daniels-Midland (NYSE:ADM) for producing triglyceride oil products at an Iowa ADM facility. The deal will officially end 120 days after a termination notice date of Oct. 29.

Solazyme closed sharply higher today after posting a Q3 miss and announcing the Bunge deal expansion. Product revenue fell 21% Y/Y to $9.1M, and R&D program revenue fell 62% to $2.3M. GAAP costs/expenses fell 30% to $37.4M.

 

View original article at: Solazyme expands Bunge JV, terminates ADM deal, closes up 8.6% post-earnings

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