Minneapolis, Minnesota - Biopolymer maker BioAmber Inc. has reported a gross profit increase after selling $866,000 (Euro 646,000) of bio-succinic acid in the third quarter of 2013 - an 83% increase on the same period in 2012.
Gross profit was reported as $211,000, compared to a loss of $111,000 over the same quarter in 2012.
The company said it had reduced its monthly cash burn to $1.68 million - 17% lower than the same period in 2012. At $2.8 million, R&D expenses were cut by almost half during this year's third quarter compared to last year. Similarly, general and administrative costs were slashed by more than half - down from $4.7 million in the third quarter of 2012 to $2.3 million in this year's third quarter. Selling and marketing expenses also decreased to $1.1 million - $100,000 lower than in the same period last year.
President and CEO Jean-François Huc said: "Today, more than 75% of our sales are to customers that did not previously purchase petroleum-based succinic acid. These customers value the all-natural aspect of our succinic acid, its renewal content, the functionality it offers or some combination of these unique attributes."
Huc said BioAmber's plans for a global-scale manufacturing facility in Sarnia, Ontario continued to be the company's focus.
The facility, the first facility to be built pursuant to BioAmber's joint venture agreement with Mitsui & Co., will have initial capacity of approximately 30,000 metric tons of bio-based succinic acid and is expected to be mechanically complete in 2014.
BioAmber plans to further expand production by 20,000 metric tons in 2016, bringing total annual capacity to 50,000 metric tons.
Huc added: "We have signed a site plant agreement with the City of Sarnia and we've begun foundation work on the site. We remain on track to be mechanically complete in the fourth quarter of 2014."