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   Non-TechMetabolix [MBLX] a Full Disclosure Thread


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To: Sam Citron who wrote (7)11/17/2006 10:01:15 AM
From: richardred
   of 78
 
When Warner Lambert was a stand along company. They were one of the first I remember getting into this area. Now, long since sold off units. Some old articles I found.

COMPANY NEWS; CHURCHILL TECHNOLOGY BUYS 2 UNITS OF WARNER LAMBERT



Article Tools Sponsored By
Published: January 24, 1995

Churchill Technology Inc., which developed biodegradable plastic film, said yesterday that it had agreed to acquire Ecostar International and the Novon degradable polymer division of the Warner-Lambert Company. Financial terms were not disclosed. Churchill said it had already completed the acquisition of Novon and would close the acquisition of Ecostar and merge the two companies under the name Novon International. Churchill will move its headquarters from Delray Beach, Fla., to Ecostar's home in Buffalo.

query.nytimes.com

Biodegradable packaging diverts waste to compost pile
Prepared Foods, June, 1993
Find More Results for: "warner lambert biodegradable "
Civco Medical's needle...
Novamont Sues...
Steve Mojo Joins...
Churchill Technology...

Biodegradable, perhaps even edible, packaging could be in your future. It's not as far-fetched as it sounds.

Products that perform like plastic but biodegrade like paper are under development throughout the world. A handful of commercial applications are on the market, and demand is surging.

A recent study by Frost & Sullivan, for example, predicts the European market for inherently degradable packaging will skyrocket from $1.47 million in 1991 to $143.8 million in 1995.

Why? True biodegradable packaging is made from renewable--usually plant-based--resources. Thus, it can be composted, a method of solid-waste management now beginning to be recognized as an essential companion to recycling to minimize the amount of waste land-filled or incinerated.

A 1992 National Audubon Society/Procter & Gamble Co. study of Fairfield and Greenwich, Conn., showed that residents practicing source-separated composting and recycling could divert 70% of their household trash from the landfill.
Advertisement

According to Audubon experts, composting can turn food and yard wastes; disposable diapers; sanitary products; and food-contaminated, wet, waxed, and other currently nonrecyclable waste paper into humus, a rich soil enhancer.

COMPOSTING

Interest in composting is especially strong among organizations that generate a large percentage of organic waste, such as foodservice outlets and supermarkets. For these businesses, biodegradable packaging simplifies the composting process by eliminating the labor needed to separate the food product from the package.

Several grocery store chains already operate composting programs. In addition, a partnership formed by the National Audubon Society, the Food Marketing Institute, and the Grocery Manufacturers of America (GMA) has launched a multi-year program called "Compost...for Earth's Sake."

Its goal is to determine the real costs of composting, the most economical way to add composting to existing recycling programs, how well participants like composting, and what end markets exist for humus, according to Dr. Jan Beyea, chief scientist at Audubon.

During 1993, the program will use Santa Barbara County, Calif., as a test site to evaluate methods to collect compostable waste economically.

"As producers of organic |waste~ material, the grocery industry is strongly committed to maximizing the use of composting," says Elizabeth Seiler, director of environmental affairs at GMA. "Both grocery manufacturers and retailers hope to establish composting as a viable and sustainable component of an integrated waste management system."

BIODEGRADABLE POLYMERS

The major stumbling block to using biodegradable packaging and expanding composting networks is cost.

In some instances, the biodegradable packaging costs ten times or more than its traditional counterpart. However, as demand grows and production facilities scale up, the cost gap is expected to narrow.

The world's largest manufacturing facility for biodegradable polymers is a 100-million-pound-per-year plant in Rockford, Ill. Completed by Novon Products Group of Warner-Lambert Co. in 1992, it uses corn and potato starch to produce film, foam, thermoform, blow-molding, and injection-molding grades.

Since the specialty polymers are made solely from substances acceptable for food contact, food packaging applications are expected, possibly yet this year, according to David S. Brooks, manager, marketing communications at Novon. Potential uses include produce packaging and containers for in-store bakery products.

Although Novon's polymers cost about four times more than commodity thermoplastics, they would add only a couple cents to the cost of a fast-food meal because their biodegradability permits food-contaminated waste to be composted with minimal handling.

In North Dakota, a company called Bio-Sunn Corp. is building a 100-container-per-minute pilot system for Germany's WELA GmbH to make biodegradable packaging from flax straw or sugar cane waste remaining in the fields after harvest.

Normally, this material is burned because it does not decompose readily when plowed under. Since it's considered waste, it's extremely economical--about 28|cents~ a pound.

The process pulps the straw and mixes it with a small amount of water to release a natural glue. This enables the material to be molded into trays, clamshells, or other shapes. A beeswax coating can be added to provide a barrier against grease and moisture.

Process water is recycled and a gooey byproduct can be used as cattle feed or in ethanol production. Used packaging can be repulped to make new containers, composted, or fed to cattle. A full-scale plant in Garrison, N.D., is expected to be operational by 1995.

ACROSS THE ATLANTIC

In Europe, another biodegradable packaging material, this one from Austria's Biologische Verpackungssysteme GmbH, uses starch, typically from potatoes, corn, or wheat.

In a process similar to waffle making, the biopolymer material (tradenamed Biopac) is mixed with cellulose and water and poured into heated molds. After cooling, the molded material is conditioned to a constant moisture content to ensure elasticity and strength.
findarticles.com

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From: richardred11/17/2006 10:20:16 AM
   of 78
 
Metabolix, Inc. Announces Completion of Initial Public Offering and Exercise of Over-Allotment Option
Friday November 17, 8:30 am ET

CAMBRIDGE, Mass.--(BUSINESS WIRE)--Metabolix, Inc. (NASDAQ: MBLX - News), announced today that it has completed its initial public offering of 6,800,000 shares of Common Stock priced at $14.00 per share. The Company also announced that the underwriters have exercised their over-allotment option in full to purchase an additional 1,020,000 shares at the public offering price of $14.00 per share, less underwriting discounts and commissions. The shares trade on the NASDAQ Global Market under the symbol "MBLX."

Net proceeds from the offering are intended to be used to make investments in equipment for pilot manufacturing and commercial formulation of Natural Plastic and to fund working capital needs, including for pre-commercial manufacturing and marketing activities, for switchgrass biorefinery program research and development, for hiring of additional personnel, for other research and development and for general corporate purposes.

Piper Jaffray & Co. served as the book-running manager for the offering. Jefferies & Company, Thomas Weisel Partners LLC and Ardour Capital Investments, LLC served as co-managers.

Copies of the final prospectus relating to the offering may be obtained by contacting Piper Jaffray & Co., Attention: Prospectus Department, 800 Nicollet Mall, Suite 800 Minneapolis, MN 55402-7020 or by telephone at (877) 371-5212.

A registration statement relating to these securities was declared effective by the Securities and Exchange Commission on November 9, 2006. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Metabolix

Founded in 1992, Metabolix, Inc. is developing and commercializing environmentally sustainable and totally biodegradable Natural Plastic as a clean alternative to petroleum-based plastics. The Company is taking a systems approach, from gene to end product, to integrate sophisticated biotechnology with current industrial practice to produce plastics, fuels and chemicals from renewable resources. In addition to its microbial fermentation platform for production of Natural Plastic, Metabolix is also developing a proprietary platform technology for co-producing, in non-food plant crops such as switchgrass, Natural Plastic and biomass for biofuels such as ethanol and for chemical products. For more information, please visit www.metabolix.com.

(MBLX-G)

Contact:

Integrated Corporate Relations
Investor Relations:
Kathleen Heaney, 203-803-3585
Julia Heckman, 203-247-7275
Or
Media:
Jackie Kolek, 203-682-8200
Or
Metabolix, Inc.
James J. Barber, President and CEO
Thomas G. Auchincloss, Chief Financial Officer

Source: Metabolix, Inc.
biz.yahoo.com

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To: Sam Citron who wrote (7)11/17/2006 9:13:44 PM
From: richardred
   of 78
 
Sam: I like Metabolix as a pure play in bio- plastics. I like the fact it has a powerful partner in ADM. As we talked earlier. IMO -It's a story stock right now. I don't think the positive story reached it's full potential in the market yet. However if the market turns negative. I don't think it will treat Metabolix kindly. I will most likely wait before I invest here. I will post it on your board if I do invest it. I'm still thinking, in time, Cargill will bring Natureworks public to help fund it, while keeping a controlling stake. They bought back Dow Chemicals stake awhile back. Bio plastic companies will be under pressure IMO if the price of corn keeps rising..

>Do you know of any better ethanol plays around that we can invest in. Keep an eye on the companies Vinod is invested in, possibly coming public, in the near future.

My personal ethanol preferences are ADM, AVR, PEIX, and VSE. I sold all my AVR yesterday as posted in my thread. I now own no pure plays in ethanol. That could change at any time with me.

Rick

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From: richardred11/18/2006 12:04:31 AM
   of 78
 
Metabolix, Inc. Announces Completion of Initial Public Offering and Exercise of Over-Allotment Option
Friday November 17, 8:30 am ET

CAMBRIDGE, Mass.--(BUSINESS WIRE)--Metabolix, Inc. (NASDAQ: MBLX - News), announced today that it has completed its initial public offering of 6,800,000 shares of Common Stock priced at $14.00 per share. The Company also announced that the underwriters have exercised their over-allotment option in full to purchase an additional 1,020,000 shares at the public offering price of $14.00 per share, less underwriting discounts and commissions. The shares trade on the NASDAQ Global Market under the symbol "MBLX."

Net proceeds from the offering are intended to be used to make investments in equipment for pilot manufacturing and commercial formulation of Natural Plastic and to fund working capital needs, including for pre-commercial manufacturing and marketing activities, for switchgrass biorefinery program research and development, for hiring of additional personnel, for other research and development and for general corporate purposes.

Piper Jaffray & Co. served as the book-running manager for the offering. Jefferies & Company, Thomas Weisel Partners LLC and Ardour Capital Investments, LLC served as co-managers.

Copies of the final prospectus relating to the offering may be obtained by contacting Piper Jaffray & Co., Attention: Prospectus Department, 800 Nicollet Mall, Suite 800 Minneapolis, MN 55402-7020 or by telephone at (877) 371-5212.

A registration statement relating to these securities was declared effective by the Securities and Exchange Commission on November 9, 2006. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Metabolix

Founded in 1992, Metabolix, Inc. is developing and commercializing environmentally sustainable and totally biodegradable Natural Plastic as a clean alternative to petroleum-based plastics. The Company is taking a systems approach, from gene to end product, to integrate sophisticated biotechnology with current industrial practice to produce plastics, fuels and chemicals from renewable resources. In addition to its microbial fermentation platform for production of Natural Plastic, Metabolix is also developing a proprietary platform technology for co-producing, in non-food plant crops such as switchgrass, Natural Plastic and biomass for biofuels such as ethanol and for chemical products. For more information, please visit www.metabolix.com.

(MBLX-G)

Contact:

Integrated Corporate Relations
Investor Relations:
Kathleen Heaney, 203-803-3585
Julia Heckman, 203-247-7275
Or
Media:
Jackie Kolek, 203-682-8200
Or
Metabolix, Inc.
James J. Barber, President and CEO
Thomas G. Auchincloss, Chief Financial Officer

Source: Metabolix, Inc.
biz.yahoo.com

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To: richardred who wrote (10)11/18/2006 10:29:37 AM
From: richardred
   of 78
 
Message 23023968
Message 22338539

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To: richardred who wrote (10)11/18/2006 1:35:38 PM
From: Sam Citron
   of 78
 
I'm still thinking, in time, Cargill will bring Natureworks public to help fund it

I don't agree. Cargill generates googles of dollars from mature commodity markets -- more than enough to fund this rising star.

They would much rather keep it private and opaque.

Bio plastic companies will be under pressure IMO if the price of corn keeps rising.

It just hastens the trajectory to switchgrass and other crops, which will greatly benefit MBLX.

I think the risk is in not owning MBLX, Rick. I don't uinderstand why you are not onboard.

Why do you like the ethanol refiners so much? These are the ones most vulnerable to higher corn and lower petroleum prices. They could get caught in a rather nasty squeeze unless they are carefully hedged.

Are they?

Sam

FD: 800
(+ 100 MOS)

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To: Sam Citron who wrote (13)11/19/2006 12:44:42 PM
From: richardred
   of 78
 
Sam: This is why I mainly think that. Also because of MBLX successfully going public. MOS is working on debt improvement right now. Just an opinion and not my major consideration in not buying MBLX at this time. We could debate the point if you like, but I don't see the point of it currently.

Cargill outlook downgraded to negative

By Anthony Fletcher

24/04/2006 - Cargill's Rating Outlook has been revised to Negative from Stable, reflecting concern that higher capital expenditure will slow debt reduction.

The latest report from credit rating agency Fitch points out that Cargill's consolidated debt on 28 February 2006 was $14.8 billion, including $2.6 billion of non-recourse debt of The Mosaic Company (Mosaic) and $1.5 billion of non-recourse VIE debt.

The company, which had revenues last year of $71bn, has been increasingly moving into higher margin businesses such as developing ingredients for food groups, and away from core commodities.

This of course has involved a great deal of capital expenditure.

"While capital expenditures may be somewhat flexible, committed capital expenditures continue to increase," said Fitch. "Fitch anticipates Cargill will maintain its higher rate of capital expenditures to reach its goal of transforming itself from a pure commodity producer to a provider of customer solutions."

Fitch argues for example that the recent Degussa Food Ingredients acquisition (for $553 million plus $132 million in assumed debt) and higher capital expenditures will likely slow debt reduction in the near term.

Degussa initially agreed to sell its food ingredients business for € 540 million back in October 2005. But clearance of the acquisition only came last month after a detailed Commission inquiry, which was set up following concerns over horizontal overlaps of the parties' activities within the lecithin sector.

The addition will confirm Cargill as a major supplier of starches, hydrocolloids, soy proteins, emulsifiers, dairy and meat cultures, and give it a significant position in ingredients systems and blends and health promoting ingredients.

But such acquisitions are costly. Fitch said that the expansion in capital expenditures from $731m in 2002 to almost $1.8bn for the latest 12 months has reduced free cashflow to below $300m.

In addition, Cargill's high geographic and product-line diversification at times tempers operating earnings and cash flow volatility associated with the agricultural sector.

Cargill's long-term financial situation appears secure however. The credit rating agency's revision will not affect the company's long term rating, which was left unchanged at A+.

And in addition, the Outlook may be revised back to Stable if Cargill can "return credit metrics to more appropriate levels in 12 months".

Cargill is the largest agricultural firm and one of the largest private companies in the world. Its major agricultural operations include oilseed processing, primarily soybeans, corn milling, meat processing and animal nutrition.
meatprocess.com

MOS
biz.yahoo.com

>I think the risk is in not owning MBLX, Rick. I don't understand why you are not onboard.

Sam that is a very good point. I do make mistakes and this could be one. Even though I might be late to the party it will still be there later,hit or miss. I'm trying to buy value right now and rid myself of earlier mistakes.

>Bio plastic companies will be under pressure IMO if the price of corn keeps rising.

It just hastens the trajectory to switchgrass and other crops, which will greatly benefit MBLX.

Yes, but IMO that will take time. The market for Bio-plastic applications still has a though nut to crack in attracting major customers. Consumers are one thing, customers are another. I would ask why did Dow sell back it stake to Cargill? The obvious would be direction and control differences.

>Why do you like the ethanol refiners so much? These are the ones most vulnerable to higher corn and lower petroleum prices. They could get caught in a rather nasty squeeze unless they are carefully hedged.

Because most I mentioned are making money right now. They have scale and very liquid to trade. I haven't looked into hedging techniques, but suspect most are. I also see some possible ventures with big oil or petroleum refiners to lessen this risk.

Rick

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To: richardred who wrote (14)11/20/2006 12:35:56 AM
From: Sam Citron
   of 78
 
The market for Bio-plastic applications still has a though nut to crack in attracting major customers.

That is certainly true for now, but should change in the years ahead as more jurisdictions begin to ban nonbiodegradable plastics,, beginning with disposables, as biodegradable plastics become more readily available.

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To: Sam Citron who wrote (15)11/20/2006 6:46:28 AM
From: richardred
   of 78
 
I agree and activist consumers can help push the matter. McDonalds switched over to paper from styrofoam, for many products, many years ago. In a customer preferential switch to using recycled paperboard in packaging. I saw that trend develop myself, many years ago. I can also say the packaging company I work for has already received customer inquiries about using bio-plastic materials. So, it's coming.

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To: richardred who wrote (16)11/22/2006 3:23:15 PM
From: Sam Citron
   of 78
 
Why it's not easy being green
Recyclers go after 'natural' firm, NatureWorks. Fortune's Marc Gunther reports.
FORTUNE Magazine
By Marc Gunther, Fortune senior writer
November 2 2006: 11:13 AM EST

NEW YORK (Fortune) -- As Kermit the Frog likes to say, "It's Not Easy Bein' Green."

Not even if you have the best of intentions

Just ask NatureWorks, a unit of agribusiness giant Cargill that sells a renewable and compostable plastic packaging material that is made from corn. Environmentalists like the product, which is known as PLA, because it is a substitute for petroleum-based plastics. Wal-Mart (Charts), Wild Oats Markets (Charts), Del Monte (Charts) and Newman's Own are among the big brands that have embraced PLA.

A bottled water company called Biota, which uses PLA bottles, boasts that its spring water "is the World's First bottled water/beverage packaged in a Planet Friendly bottle."

Not so fast, say critics.

While bottles made from PLA sound good, they don't work well with today's recycling systems, which are geared up to recycle bottles made of an oil-based plastic called PET. So a coalition of recycling groups has called on NatureWorks to stop selling PLA for bottles until the bio-resin's recyclability has been demonstrated.

"We told them, don't go down the road with bottles," says Eric Lombardi, the executive director of Eco-cycle, a nonprofit recycler in Boulder, CO., and president of the Grassroots Recycling Network.

If NatureWorks does not cooperate with recyclers, Lombardi warns, "We will educate the public to avoid products bottled in PLA."

Yes, it's not easy being green - or even agreeing what is green.

For some uses, PLA is clearly superior to oil-based plastics. You can serve a meal on plates and cups made with PLA, eat it with plastic silverware made with PLA, and throw all the food and waste into a compost pile, where it will decompose.

PLA made by NatureWorks, which is based in Minnetonka, MN, winds up in the packages used to hold fruits and vegetables at Wal-Mart, tubs of lettuce for Newman's Own Organics, and in Del Monte fresh-cut produce. Mrs. Fields stores put smoothies in PLA cups. PLA also finds its way into bedding, clothing and furniture, and it is selling in Europe and Asia as well as in North America.

NatureWorks' sales have grown at an average annual rate of 45 percent over the past four years, according to Mary Rosenthal, global communications leader for the firm.

"Once oil got over $40 a barrel, we became price competitive with petroleum based resins," she says. "Oil is a finite resource. This, we can keep growing every year."
Good for the earth, bad for recyclers

But bottles made of PLA cause problems for recyclers for a couple of reasons. First, they can't be easily separated from bottles made of oil-based PET, the most commonly used material in clear, plastic bottles. (Costly infrared sorting equipment will separate the two, but many small-scale recyclers separate different plastics by mechanical methods or even by hand.) Too many PLA bottles will contaminate the PET waste.

Second, PET is a valuable commodity - it can be sold for 15 or 20 cents a pound, and makes up 10 percent of the revenues of some recycling centers. The sale of recycled commodities helps finance the curbside pickup of bottles, cans and paper.

"We've worked hard for many years to make the economics work," explains Tim Brownell, chief operating officer of Eureka Recycling, a nonprofit that manages the recycling program in St. Paul, MN.

The recycling activists can't be easily dismissed. They have a presence in thousands of communities, and joined with environmental groups and social investors to convince Coca-Cola (Charts) to use recycled content in its PET bottles.

The big beverage companies also have a stake in PET. Scott Vitters, director of sustainable packaging for Coca-Cola, says of PET, "It's a very good environmental package...We have invested a significant amount of money in recycled content PET technology development and commercialization." But, he admits, PET is not sustainable in the truest sense because it's made from petroleum.

For its part, NatureWorks says it will continue talking with recyclers. "We intend to be very careful about putting this new material into the recycling stream," says Rosenthal.

But, as environmentalists scrutinized PLA, the company will have to prepare itself for other questions, too. Should PLA be made from corn, which requires lots of energy to grow and is frequently genetically modified, or could it be made from discarded agricultural or forestry feedstock? Can PLA be better labeled so that it is composted rather than thrown away? Can NatureWorks do more to promote local composting sites that would keep food waste and PLA out of landfills?

Gary Liss, a recycling industry consultant and an advocate of "Zero Waste" - meaning that everything we throw away gets recycled or reused - warns that PLA, especially in bottles, could end up creating as many problems as it solves.

"Don't introduce these into the system," Liss says "until you can figure out a way to identify them and keep them out of a whole elaborate system that has been developed."

Such questions reflect a fuller understanding of sustainability, which encompasses how products are made and consumed and where they end up.

As Kermit says, it's not easy being green.

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