Draths Corporation

About Draths Corporation

Draths Corporation was a biotechnology firm established in 2005 as a spin-off from Michigan State University. The company focused on manufacturing primary chemical ingredients for the chemical, pharmaceutical, and food industries by developing proprietary technologies that merged metabolic engineering and synthetic biology with chemical synthesis. Its core business model involved using fermentable sugars as a renewable alternative to petroleum-derived materials for producing chemicals. This process utilized proprietary microorganisms to convert sugars into valuable chemical intermediates.

The company's product portfolio included a range of bio-based chemicals such as shikimic acid, caprolactam, and various acids used in manufacturing. Draths developed fermentation methods aimed at commercializing caprolactam and Purified Terephthalic Acid (PTA) as its initial target products. The firm held numerous patents related to producing synthetic materials through a combination of biotechnology and chemistry. It attracted significant investment from venture capital firms, including Khosla Ventures, Presidio Partners, and TPG, raising over $27 million.

In January 2011, the company consolidated its operations into a new 30,000-square-foot facility in Lansing, Michigan, moving from a pilot phase toward demonstration and commercial stages. However, by November 2011, Draths Corporation was acquired by Amyris, a renewable fuels and chemicals company, for approximately $7 million in stock. The acquisition was primarily driven by Amyris's interest in Drath's extensive intellectual property portfolio. Ahead of the sale, Draths laid off the majority of its roughly 40 employees. The technology and intellectual property from Draths, particularly concerning the engineering of metabolic pathways, were subsequently integrated into Amyris's research and development, including advancements using CRISPR technology.