Segetis out?

So has Segetis officially folded? I heard from a very good “DSM Source” that Italian levulinic acid producer, GFBiochemicals, has acquired Segetis’ IP and assets. By the way, DSM is one of Segetis’ investors, and double by the way, GFBiochemicals executives are mostly ex-DSM.

It is expected that GFBiochemicals will officially release a statement tomorrow. I also looked at some of the management of Segetis on LinkedIn, and yes, our good friend Cora Leibig (Chief Operating Officer), is not anymore with Segetis since October 2015 as well as Chief Scientific Officer, Brian Mullen, also since October 2015.

It makes sense for GFBiochemicals to acquire Segetis’ assets as it could shorten the company’s R&D timeline for levulinic acid applications. Segetis has a 80 tpa pilot plant in Golden Valley, Minnesota, that can produce levulinic acid derivatives (e.g. levulinic ketals that is being marketed under the brand JAVELIN). It is believed that Segetis has been sourcing its levulinic acid from China.

Segetis also had a toll manufacturing demo plant in the Upper Midwest, which was capable of producing 3m lb/year of levulinic ketals-based solvents and plasticizer products.  The company has been planning to build a commercial-scale plant in Hoyt Lakes Minnesota, that would produce levulinic acid and convert a portion of that output into plasticizers.  The initial facility is expected to have an annual levulinic acid capacity of 22 million lbs, with approximately 35 million lbs of plasticizer production capacity.

Segetis’ portfolio of partners include Arkema, PolyOne, Georgia Gulf in bio-based plasticizers, while DSM, Sabic, Malaysian Life Sciences Capital Fund, Khosla Ventures, and PNB Equity Resources Corporation Sdn Berhad are its investors.

More about GFBiochemicals recent activities in this previous post. I am currently getting more information from both ex-Segetis and GFBiochemicals about this latest news.