Specialized drug molecules can pay off big, yet I’ve seen some specialty drug companies crash and burn (it wasn’t pretty). IMHO, Metabolix has a lot of irons in the fire and they seem to be going in the right direction for long term sustainability. The following is from their second quarter conference call: “We continue to broaden our development work outside this initial opportunity as we flush out our industrial chemicals platform to include C3 and C5 alternatives to other chemical families”.
They already have biodegradable plastics, early next year they expect to ship samples of their C4 alternative, and they currently have “numerous options to produce low-cost chemicals, plastic and fuels in a very sustainable manner”.
The toughest thing to do when you find a company like this is to hold on for the long term. Short term the market will rip them a new one every time they release a soft earnings report, but long term the customer base is growing, their production facilities are improving and their products should deliver excellent potential.