VRNM Lays Out Framework To Develop Its Core Enzyme Business

Analysts at Jefferies & Co reiterate their "hold" rating on Verenium Corp VRNM, while raising their estimates for the company. The target price for VRNM has been reduced from $3.60 to $2.90. According to Jefferies & Co, “Verenium has laid out a framework for developing its core enzyme business. These include: 1/ Organization (streamlining the business); 2/ Transition out of San Diego facility (and establish a new fermentation lab); 3) Manufacturing improvements (projects to decrease costs of and variability in production, i.e. debottlenecking); 4/ Capacity additions (the company currently has enough scale in its facility to meet market needs for all of its commercial enzymes but may add capacity in the medium-term to meet growing demand; a 1m L greenfield enzyme facility would require ~$100m capital); 5/ Invest in the pipeline (Verenium currently has 15 specific biomolecules that are in various stages of development).” “Verenium has retained its entire regulatory staff which has extensive experience in registering products with the U.S. EPA, FDA, Center for Veterinary Medicine and other global Agencies,” the analysts add. Jefferies has raised its EPS estimate for FY10 from -$3.00 to -$2.26. More Analyst Ratings here