Verenium Corp. (NASDAQ: VRNM) Sees Solid Second Quarter from Animal Feed Enzyme Product, Signs Biofuel Development and Commercialization Deal with BP

For any company struggling to make that proverbial jump to a going concern, the arrival of a white knight to provide needed capital is a godsend. Often, the company has a solid product but not the needed capital to bring it to market in a way that would yield its full potential. If an investor can find a company with a solid product base and a source of capital to exploit it, profit will surely follow.

Verenium Corp., a biofuel /enzyme developer and manufacturer, works to develop, manufacture and market non-food, cellulose-based biofuels and various enzymes globally. Although used in a variety of products, the company’s primary product base is directed toward non-food cellulose biofuels and animal feed stock enzymes.

In recent days, the company has signed a “transformational” agreement with BP (a global oil and gas exploration and development company) for advanced work and commercialization of its cellulose biofuels research. The agreement is directed at finalizing research and movement of that research into a production phase. Although it does not appear that the company’s research is quite to the point of large volumes of biofuels, the general agreement does seem to indicate that it is a bit closer to viable financial production then most might think. Generally speaking, the two companies will share patents and intellectual property rights, while BP will provide significant financing to move the company’s commercialization process forward.

As exciting as the company’s agreement with BP is, it is Verenium’s work with animal feed enzymes that shows the most immediate and profitable revenue results. In the second quarter of 2008, the company realized increased revenues of almost $18 million in revenue globally for its Phyzyme Phytase animal feed enzyme. Discounting an expected and announce decline in collaborative revenues, the second quarter saw an increase of 112%, mostly attributable to the Phyzyme product. In most respects, the first half of 2008 was a turning point for the company. It now has a “deep pocketed” partner on board and a product base ready to move with a market ready to accept coming changes. If change could be a word used for the future of energy and food markets, Verenium Corporation is ready and on the front lines of solid profit.

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