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Verenium Reports Financial Results for the Third Quarter and Nine Months Ended September 30, 2007
Date:11/6/2007

by Danisco Animal Nutrition, which continues to expand its global phytase market share position in the animal feed industry. Verenium currently manufactures Phyzyme through a third-party manufacturing arrangement and maintains a product profit-sharing agreement with Danisco for all Phyzyme sales. The Company also experienced sales growth for its other enzyme products, including Quantum(TM) Phytase and Fuelzyme(TM)-LF. Total revenues decreased for the 2007 quarter and year-to-date periods, as the increase in product revenues was more than offset by a decrease in collaborative revenues primarily related to the Company's previously-announced restructuring of its collaboration agreement with Syngenta.

Product gross profit (product revenues less cost of product revenues) and product gross margin (product gross profit divided by product revenues) improved in the third quarter and first nine months of 2007 versus comparable periods last year due primarily to growth in Phyzyme sales which resulted, in part, from efforts by Danisco Animal Nutrition to introduce a new thermally- stable formulation of Phyzyme and grow its European Phyzyme business following the recent expanded approval within the European Union. Over time, the Company believes that product volume growth in Phyzyme and other products in the Company's portfolio should result in more stable and sustainable improvement in both product gross profit and product gross margin.

Research and development expenses were higher in the third quarter and year-to-date periods of 2007 versus 2006 primarily related to the incremental operating expenses associated with the Celunol business since the June 2007 merger. Selling, general and administrative expenses for the 2007 periods were higher than 2006 due primarily to the inclusion of incremental Celunol operating expenses since June 2007, as well as one-time expenses related to the merger.

In connection with the merger with Celunol, the Company recorded a pre
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SOURCE Verenium Corporation
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