BioAmber increases biosuccinic acid sales

By Erin Voegele | November 08, 2016

BioAmber Inc. recently released third quarter financial results, reporting sales of biosuccinic acid increased 45 percent when compared to the second quarter, reaching $3.7 million. In addition, the unit cost of biosuccinic acid fell 12 percent from the second quarter to the third quarter. The company also reported that operations at its Sarnia, Ontario, plant continued to improve during the quarter, with fermentation yields, plant uptime and percentage of on-spec products all increasing when compared to the previous quarter.

"We have continued to validate our production process at a commercial scale with our biotechnology, as measured by fermentation performance, achieving operating targets since inception,” said Jean-Francois Huc, CEO of BioAmber. “Our purification process has also improved every quarter since we started up Sarnia, while our plant uptime and percentage of on-spec product continue to meet target levels." He added, "We will steadily increase our throughput towards full capacity and focus on further efficiency gains throughout our production process."

During an investor call, Huc noted the Sarnia plant has now been operational for a year. During that time, he said, the fermentation process has consistently met internal targets for yield, productivity and output. Plant uptime has also continued to increase, he said. According to Huc, more than 180 companies have already qualified BioAmber’s biosuccinic acid, with 40 of those companies purchasing the product.

Huc also indicated that BioAmber is increasingly focusing its attention on the development of a second, larger facility, including efforts to secure a location and financing for the project. In September, BioAmber announced it had achieved a milestone with the U.S. Department of Energy for a proposed $360 million loan guarantee. Huc said BioAmber is phase three of the four-phase process. In anticipation of a successful outcome, he said the company has secured a potential site for the project. He also noted that BioAmber is also in discussions with the Canadian government and has secured an option on a site for a second Canadian facility as well. In addition, the company is engaged with industry players and the investment community to help fund the balance of its proposed second plant.

BioAmber reported revenues of $3.7 million for the third quarter, up 45 percent from the second quarter due to increased quantities of biosuccinic acid. The cost of goods sold were $5 million, down 12 percent when compared to the second quarter as a result of higher volumes of succinic acid sold and improved operating performance, including higher yields, higher plant uptime and higher percentage of on-spec product. BioAmber reported a net loss attributable to shareholders of $6.2 million, or a loss of 21 per share, for the third quarter, compared to a net loss of $7 million, or a loss of 27 cents per share, for the same period of last year. The adjusted net loss attributable to BioAmber shareholders was $7.4 million, or a loss of 26 cents per share, compared to an adjusted net loss attributable to shareholders of $9.4 million, or a loss of 36 cents per share, for the same period of 2015.