Production grows at BioAmber’s Sarnia plant

“BioAmber continues to meet ramp-up expectations at its Sarnia plant. We have made excellent progress in the plant’s reliability and performance, while continuing to increase production levels and drive down unit costs,” CEO Jean-Francois Huc said in a news release. “Second quarter sales were on track, generating a 73% increase in sales over Q1, while Q2 operations improved throughout the quarter, culminating in a June uptime rate of over 80%. The team is now entrenching its operating routines as our Sarnia facility moves towards full production levels.”

The company’s revenues for the quarter ended June 30, 2016 were $2.5 million, an increase of 73% over the previous quarter. The increase in revenue was entirely attributed to volume growth, with no material change in the average selling price.

Gross loss for the quarter ended June 30, 2016 was $1 million, compared to $410,000 for the same period last year and $1.6 million for the previous quarter. The decrease in gross loss relative to the previous quarter was due to the greater volume of succinic acid produced and sold, improvements in operational efficiency and a reduction in the quantity of off-spec product produced.

Research and development expenses for the quarter ended June 30, 2016 decreased to $1.5 million from $5.0 million for the same period last year. The higher costs recorded last year were the result of certain commissioning and start-up costs incurred in the quarter and recorded as research and development expenses. There was also a reduction in research costs in Q2 2016 relative to Q2 2015 due to the fact that the technology is now operating in a commercial facility.

Sales and marketing expenses for the quarter ended June 30, 2016 decreased to $584,000 from $1.1 million for the same period last year. This was driven by a decrease in stock-option compensation expenses due to stock-options granted in 2016 with a lower fair value and a decrease in salaries and benefits in the first quarter of 2016.

General and administrative expenses for the quarter ended June 30, 2016 were unchanged at $3.0 million, compared to the same period last year.

Depreciation of property and equipment and amortization of intangible asset expense increased to $1.2 million for the quarter ended June 30, 2016 from $93,000for the same period last year. This increase was due to the depreciation of Sarniafacility assets following the beginning of production.

For the quarter ended June 30, 2016, the Company incurred net financial income of $11.3 million, compared to a charge of $3.8 million for the same period last year. There was a financial charge of $662,000 resulting from interest expense on long-term loans, which was offset by a non-cash gain of $11.9 million related to changes in the fair market value of the warrants issued in connection with the Company’s initial public offering (IPO Warrants) and warrants issued in 2009 and 2011 (Legacy Warrants).

The Company recorded a net income attributable to BioAmber Inc. shareholders of $4.8 million, or an income of $0.17 per share for the quarter ended June 30, 2016, compared to a net loss of $14.0 million, or a loss of $0.58 per share for the same period last year.

The Adjusted Net Loss Attributable to BioAmber Inc. Shareholders for the quarter ended June 30, 2016 was $7.1 million, or a loss of $0.25 per share, compared to an Adjusted Net Loss Attributable to BioAmber Inc. Shareholders of $9.5 million, or a loss of $0.39 per share for the same period last year. Adjusted Net Loss Attributable to BioAmber Inc. Shareholders is a non-GAAP financial metric that excludes, for the quarter ended June 30, 2016, the impact of the change in fair value of the IPO and Legacy Warrants. The Adjusted Net Loss Attributable to BioAmber Inc. Shareholders excludes, for the quarter ended June 30, 2015, the impact of the change in fair value of the IPO and Legacy warrants, the non-cash inventory reserve expense and the intangible asset impairment related to DuPont technology.