|Metabolix shares tank after ADM calls off joint venture |
Fri Jan 13, 2012 9:38am EST
(Reuters) - Shares of Metabolix Inc ( MBLX.O) more than halved on Friday morning, a day after agricultural processor Archer Daniels Midland Co ( ADM.N) terminated a joint venture with the bio-based plastics maker.
Metabolix shares were down 56 percent to $2.64 in early trade on Friday, making it the top percentage loser on the Nasdaq.
Jefferies downgraded the company -- which makes plastics, chemicals and energy from non-food crops like switchgrass -- to "hold" from "buy," saying the termination illustrates "one of the challenges faced by the capital-intensive renewables sector."
On Thursday, ADM said it will end its relationship with Metabolix as projected financial returns were "too uncertain."