Solazyme and Roquette to Dissolve Microalgae Joint Venture

25 June 2013 --- Microalgae innovator Solazyme, Inc. has agreed with global starch producer Roquette Frères, S.A. to dissolve their joint venture, Solazyme Roquette Nutritionals, LLC, in accordance with their Joint Venture and Operating Agreement dated November 3, 2010, by and between Roquette and Solazyme. The parties expect the formal dissolution to occur in the coming weeks.

According to a statement, the decision to terminate the joint venture was driven by divergent views on an acceptable commercial strategy and timeline for the manufacturing and marketing of joint venture products. As a result, Solazyme intends to accelerate commercialization of its suite of innovative microalgal food ingredients.

The Joint Venture and Operating Agreement was filed by Solazyme with the Securities and Exchange Commission as Exhibit 10.10 to Amendment No. 2 to its Form S-1 Registration Statement on April 13, 2011. It was hoped that the oil, protein and fiber based products would have a better taste, texture and health profile than products on the market now.

A Roquette statement read: 'Roquette has been a believer in microalgae as a raw material since 2008, and it is well positioned to independently continue with the development of non-genetically modified, innovative microalgae-sourced ingredients for nutritional applications. Roquette has invested significant resources and know-how in the commercialization of the microalgae-based food ingredients and remains committed to meeting market demands, while aligning the timing of its market launch and financial resources with its overall business objectives.'

Solazyme slumped 13 percent to $10.94 at the close in New York, the most since Sept. 22, 2011.

Exiting the venture will accelerate the commercialization of the technology and is in the “best interest” of shareholders, Solazyme Chief Executive Officer Jonathan Wolfson was reported as stating in a conference call. He doesn’t expect the decision to affect revenue this year.

“The decision isn’t related to technology readiness or robustness, product quality, the product value proposition, or market demand,” Wolfson said. “We believe revenue and profit from these products will benefit Solazyme sooner than would have been likely under the joint venture.”

Solazyme Roquette Nutritionals developed a proprietary cultivation and preparation process that harnesses the nutritional and functional power of microalgae for use in a wide range of applications, including baked goods, beverages, frozen desserts, soups, sauces, and dressings.

The company’s Almagine portfolio of natural, whole-food ingredients, is claimed to offer a variety of microalgae-derived lipid, protein, and fiber-based products that deliver significantly improved nutritional profiles along with great taste, texture, and mouthfeel and enhanced functional benefits.

At the recent Vitafoods Europe, ROQUETTE and 3I NATURE pooled their know-how to develop a new concept based on micro-algae and fibers. Named CHLORELLA 2D (which stands for Digestive Health and Detox, it is a food supplement whose synergistic combination of ROQUETTE Chlorella and NUTRIOSE promotes digestive well-being – a beneficial effect supported by an in-vivo study. CHLORELLA 2D is designed for laboratories and food supplement marketers looking for new approaches to digestive comfort. ROQUETTE Chlorella is a freshwater microalga that is rich in nutrients and antioxidants such as carotenoids. ROQUETTE NUTRIOSE is a soluble fiber obtained from maize or wheat. It has a prebiotic effect, in particular by modulating colon microflora in a beneficial way, thereby contributing to intestinal well-being. The synergistic effect of combining the two ingredients has been demonstrated by an in- vivo study, conducted by ROQUETTE, in which increased antioxidant activity was observed in stools. The prebiotic action of the soluble fiber is reported to stimulate enzyme activity in the colon, thereby promoting hydrolysis of the chlorella wall, releasing antioxidant ingredients (vitamins and carotenoids). A patent application has been filed for this specific combination while the concept itself has been fortified with vitamin B2, which makes the claim, that it “contributes to the maintenance of normal mucous membranes.”