{ "docId": "019dd923-622c-750b-8b99-1329de4989df", "docSlug": "da9f1a22e4af", "documentTitle": "Danimer Scientific (DNMR)", "authorId": "54_Spruce_Point_Capital", "authorName": "Spruce Point Capital Management", "documentKindSlug": "activist-deck", "documentKindLabel": "Activist deck", "sourceTypeSlug": "short_seller", "sourceTypeLabel": "Short seller", "presentationDate": "2021-04-22 00:00:00", "orientation": "landscape", "aspectRatio": 1.3333334, "pageNumber": 42, "pageCount": 63, "prevPage": 41, "nextPage": 43, "slideType": "preempt_rebuttal", "function": "preempt_rebuttal", "density": "overcrowded", "nDataPoints": 3, "notes": "The slide uses a 'preempt_rebuttal' strategy by drawing a direct parallel between a failed historical peer (Metabolix) and the current subject (Danimer).", "elementsJson": [ "headline_text", "paragraph", "callout_box", "footnote" ], "metadataConfidence": 0.95, "imagePath": null, "slideHref": "/slides/019dd923-622c-750b-8b99-1329de4989df/42", "deckHref": "/decks/019dd923-622c-750b-8b99-1329de4989df", "deckJsonHref": "/decks/019dd923-622c-750b-8b99-1329de4989df.json", "deckAnchorHref": "/decks/019dd923-622c-750b-8b99-1329de4989df#slide-42", "components": [ { "bbox": null, "kind": "callout", "text": "Current Danimer investors placing hope that a partnership with Pepsi will ensure success should review the Metabolix failure carefully.", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd953-3f41-721f-9e50-6376457d331d", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.15, "w": 0.9, "x": 0.05, "y": 0.12 }, "kind": "paragraph", "text": "PHA is not new and Danimer is not the first to attempt commercial scale production of this technology. Metabolix, which eventually changed its name to Yield10(1), was an overhyped PHA company at the beginning of the last decade and formed a partnership with Archer Daniels Midland (ADM), a blue-chip S&P 500 company. After years of research and burning hundreds of millions of dollars, Metabolix eventually sold its assets for $10 million in 2016. Current Danimer investors placing hope that a partnership with Pepsi will ensure success should review the Metabolix failure carefully.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "f1582b84-5ab2-46b1-871c-2068ff06ae40", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.08, "w": 0.9, "x": 0.05, "y": 0.31 }, "kind": "quote", "text": "Mango is among the dozens of firms attempting to create an industry around polyhydroxyalkanoates (PHAs), a class of biodegradable, biobased polymers. Executives with these firms are well aware of the PHA firm Metabolix, now called Yield10 Bioscience, which burned through hundreds of millions of dollars before it failed in PHAs 3 years ago.", "attrs": null, "subkind": "pull-quote", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "2280af69-0983-4235-9772-58150e3ed5a4", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.15, "w": 0.9, "x": 0.05, "y": 0.41 }, "kind": "quote", "text": "Metabolix made it to this stage a decade ago, and its failure remains a cautionary tale for the rest of the industry. In 2010, the company started up a PHA joint venture with Archer Daniels Midland (ADM) in Clinton, Iowa, that boasted 50,000 t of annual capacity. ADM shuttered the plant 2 years later due to slow adoption of the materials by customers. The plant couldn't even meet a milestone of 500 t per year of sales. ADM had to write off $339 million. Metabolix struck out on its own but had to sell its technology to the South Korean firm CJ CheilJedang for $10 million in 2016.", "attrs": null, "subkind": "pull-quote", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "301a43d0-bdf4-49ad-8c46-de326d740540", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.25, "w": 0.9, "x": 0.05, "y": 0.61 }, "kind": "quote", "text": "Metabolix Inc. (NASDAQ:MBLX), a bioscience company developing and commercializing environmentally sustainable and totally biodegradable Natural Plastic, announced today that the company has named Peter N. Kellogg to its Board of Directors, effective March 30, 2007. Mr. Kellogg is Executive Vice President, Finance and Chief Financial Officer of Biogen Idec Inc., a global leader in the development, manufacturing, and commercialization of novel therapies. Mr. Kellogg was formerly Executive Vice President and CFO of Biogen prior to the merger with Idec. Prior to joining Biogen, Mr. Kellogg held several positions at PepsiCo Inc., including Senior Vice President of PepsiCo E-Commerce, Senior Vice President and Chief Financial Officer, Frito-Lay International as well as a variety of senior financial, international and general management positions at PepsiCo and the Pepsi-Cola International, Pepsi-Cola North America, and Frito-Lay International divisions. In addition, Mr. Kellogg was also a senior consultant with Arthur Andersen & Co. and Booz Allen & Hamilton.", "attrs": null, "subkind": "pull-quote", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "37e8c0b1-7e7b-4da2-8aa0-c1f7f0e172d1", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "quote", "text": "Mango is among the dozens of firms attempting to create an industry around polyhydroxyalkanoates (PHAs), a class of biodegradable, biobased polymers. Executives with these firms are well aware of the PHA firm Metabolix, now called Yield10 Bioscience, which burned through hundreds of millions of dollars before it failed in PHAs 3 years ago. — Chemical & Engineering News", "attrs": null, "subkind": null, "toolName": "Authority citation", "toolSlug": "authority-citation", "confidence": null, "componentId": "019dd953-3f41-721f-9e50-65e34eae5e63", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.02, "w": 0.2, "x": 0.05, "y": 0.57 }, "kind": "source-note", "text": "Source: Chemical & Engineering News", "attrs": null, "subkind": null, "toolName": null, "toolSlug": null, "confidence": null, "componentId": "ce623839-4c7b-4a01-aa24-d18f80891312", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.02, "w": 0.1, "x": 0.05, "y": 0.88 }, "kind": "source-note", "text": "Source: Press release", "attrs": null, "subkind": null, "toolName": null, "toolSlug": null, "confidence": null, "componentId": "df297b09-6983-4135-b7ee-02c251956727", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.05, "w": 0.39, "x": 0.305, "y": 0.025 }, "kind": "title", "text": "Metabolix's PHA Failure", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "8be164bb-19e5-463d-8251-19dd52f5beb0", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [ { "name": "preempt_rebuttal", "slug": null, "matchId": "f5161879-0676-4572-ad75-41dddc278196", "evidence": "Uses historical failure of Metabolix to counter current investor optimism regarding Danimer/Pepsi partnership.", "confidence": 0.9 } ], "arcBeats": [], "loops": [ { "to": 42, "from": 40, "name": "Iceberg", "slug": "10-iceberg", "bestFor": "Consulting, complex problem solving, organizational change", "matchId": "b1f224c8-72ff-4d21-9315-c6ccafe3462e", "evidence": "The document cites precedents and data to question Danimer's project and technology.", "position": 1, "objective": "Revealing potential issues with Danimer's project and technology.", "structure": "The Symptom (Visible) -> The System (Hidden) -> The Root Cause", "confidence": 0.6, "description": "Reveal that the visible problem is merely a symptom of a deeper root cause" } ], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }