NEW YORK, NY -- (Marketwired) -- 10/08/13 --
LifeSci Advisors, LLC, a leading provider of investment research and investor relations services in the life sciences sector, today announced that it has initiated coverage of BioAmber Inc. (NYSE: BIOA), an industrial biotechnology company that combines advanced fermentation technology and conventional chemistry to manufacture bio-based chemicals. BioAmber is currently building manufacturing capacity for the production of bio-based succinic acid, a building block chemical. The Company has a technology platform that combines industrial biotechnology with chemical catalysis for the conversion of renewable feedstocks into sustainable chemicals. The goal is to replace petroleum-based chemicals with renewable equivalents in a cost-competitive manner.
"BioAmber has all of the pieces in place needed to become a successful commercial scale chemical manufacturer and leader in the green chemical industry," said Andrew I. McDonald, Ph.D., Founding Partner at LifeSci Advisors. "They have already demonstrated large scale production of succinic acid at their demonstration plant, and the fully funded plant they are building in Sarnia, Ontario will be mechanically operational by the end of 2014."
BioAmber has a plan in place to produce world-scale quantities of bio-based succinic acid, including collaborations with key industry partners, an experienced management team, and the necessary capital to execute the plan. Experience gained at BioAmber's demonstration plant, believed to be one of the largest bio-based chemical production facilities, is being used to inform the ongoing construction of a new facility in Sarnia, Ontario. The new plant that will be able to produce 30,000 metric tons of bio-SA per year, with potential to increase capacity to 50,000 metric tons. This new facility is fully funded from a combination of sources including BioAmber's partner Mitsui & Co., confirmed government grants and loans, an established loan, and proceeds of the recent IPO. BioAmber already has contracts in place to sell the final product and is also working with partners to find further uses for bio-SA.
In a 50 page Initiation Report by LifeSci Advisors, we explain BioAmber's technology and business plan, including details of the ongoing construction of the commercial scale manufacturing plant in Sarnia, Ontario, the Company's yeast fermentation technology, and efforts to develop new products and markets for succinic acid and its derivatives. We also explore the industry landscape for industrial biotechnology and explain how BioAmber's peers, by failing to perform to expectations, have made investment in the sector difficult. This has, in turn, created a potential opportunity in BioAmber.