Verenium (NASDAQ:VRNM) Skyrockets on Bunge (NYSE:BG) Licensing Deal

News that Verenium Corporation (NASDAQ:VRNM) has licensed their lipase enzyme to Bunge Ltd. (NYSE:BG) ended with shares soaring on Tuesday, with some analysts giving their input as to how they see it playing out for Verenium.

Cantor Fitzgerald analyst Pamela Bassett said she believes Verenium could begin a move toward breaking even now that their enzyme business will become a growth vehicle.

Bassett added it is "quite possible with the growing specialty enzyme
portfolio, improved economic conditions driving sales and increasing use of Purifine, in our view. Near-term, Verenium's ability to grow its enzyme
business could provide an offset to cash used in its cellulosic ethanol
business. The company is dependent on the acceptance of its enzyme products in the marketplace and could experience delays if these new biotechnology-derived products experience customer resistance."

Cantor Fitzgerald maintains a "Buy" rating on Verenium with a price target of $9 on the company. They closed Tuesday at $3.46, gaining $0.38, or 12.34 percent.

BP (NYSE:BP) Completes Acquisition of Verenium's (Nasdaq:VRNM) Biofuels Business

BP (NYSE:BP) and Verenium Corporation (Nasdaq:VRNM) have completed their transaction, where Verenium sold their cellulosic biofuels business to the oil giant.

BP's Biofuels North America acquired the assets for $98.3 million.

The Verenium press release said:

"In the transaction, BP acquired the Company's facilities in Jennings, LA, including the pilot plant and demonstration-scale facility, the San Diego, CA R&D facilities, as well as cellulosic biofuels and cellulosic enzyme technology and related IP. In addition, BP retained select personnel needed to continue the cellulosic biofuels development program. BP also became the sole owner of Vercipia Biofuels and Galaxy Biofuels, the 50-50 joint ventures created by the Company and BP."

UBS Investment Bank (NYSE:UBS) advised Verenium on the deal.

BP (NYSE:BP) Acquires Biofuels Technology from Verenium for $98 Million

BP (NYSE:BP) has acquired biofuels technology from its American partner Verenium Corp (Nasdaq:VRNM) for $98 million. The deal also includes two facilities.

Philip New, chief executive of BP Biofuels, said this about the deal, "This acquisition demonstrates BP's intent to be a leader in the cellulosic biofuels industry in the U.S. and positions us as one of the few global companies with an integrated end-to-end capability."

"BP Biofuels should be well placed to accelerate the delivery of low cost, low carbon, sustainable biofuels, at scale."

while BP continues to look for deals to shed some of its assets to raise capital, they recently said their biofuels unit wouldn't be one of those assets they'll sell, and this deal confirms their statement.