In a significant development within the biomanufacturing industry, Pictor Biotech has acquired the assets of the bankrupt startup Solar Biotech, a move that signals both a fresh start for the beleaguered company and a strategic expansion for its new owner. Founded in 2019 by Alex Berlin, Solar Biotech specialized in microbial and biomanufacturing technology, aiming to revolutionize the production of bio-based products through clean precision fermentation. However, despite initial profitability, the company encountered cash flow difficulties due to overexpansion, leading to its voluntary Chapter 11 bankruptcy filing in late June.
Pictor Biotech, led by former Novozymes executive Peter Rosholm, emerged as the successful bidder in an auction process, outpacing an initial offer from Ingredion with a bid of $20 million. This acquisition not only secures Solar Biotech’s innovative technologies—which include a diverse portfolio of microbial strains and advanced bioprocess development expertise—but also allows Pictor to retain all U.S.-based employees. Rosholm has committed to invest a “substantial” amount of capital to expand the company’s operational capacity, further solidifying his vision for growth.
The acquisition comes at a time when the biomanufacturing sector is increasingly focused on sustainability and innovation. Solar Biotech’s proprietary technologies enable the production of a wide range of products without the use of pesticides or exposure to diseases, which is particularly appealing in today’s market where consumers are demanding cleaner, more sustainable products. The company has developed capabilities around various microorganisms, including bacteria, fungi, yeasts, and microalgae, which have applications in food, beverages, and cosmetics.
Berlin, who will continue as CEO and CTO, expressed optimism about the future, highlighting the importance of strong financial backing and the retention of a dedicated workforce. He noted that the restructuring process allowed the company to maintain its U.S. staff while centralizing operations in Virginia, where they plan to deploy additional capacity. This move not only ensures business continuity but also positions Solar Biotech to better capitalize on market opportunities, especially as the venture capital climate has become more challenging for startups in recent years.
Ken Yager, president at Newpoint Advisors, emphasized that the successful bid represents the best possible outcome for the debtors’ assets, providing a greater recovery than any other alternatives. The approval of the bid in a Delaware bankruptcy court marks a pivotal moment for both Pictor Biotech and Solar Biotech, as they aim to leverage their combined strengths to enhance their market position.
The implications of this acquisition extend beyond the immediate financial recovery for Solar Biotech. It reflects a growing trend in the agritech sector where established companies are looking to acquire innovative startups to bolster their portfolios. As the demand for sustainable and bio-based products continues to rise, companies like Pictor Biotech are strategically positioning themselves to lead in this evolving landscape.
With the backing of Pictor Biotech, Solar Biotech is poised to resume operations and focus on growth, marking a new chapter for a company that has faced significant challenges. The future looks promising as they aim to leverage their advanced technologies and strong team to meet the increasing demand for sustainable biomanufactured products.