Amyris Signs Five Year Biofene® Supply Agreement with leading Global Nutraceuticals Company with Over $100 Million of Expect...
April 28 2016 - 11:46AM
Amyris, Inc. (Nasdaq:AMRS), the industrial bioscience company,
today announced that it has executed a five year Biofene® supply
agreement with a global nutraceuticals company. This new, long-term
agreement replaces the parties’ one-year purchase agreement, which
was previously announced on January 4, 2016. Under the new supply
agreement, the customer has agreed to a larger Biofene purchase in
2016 with an expected revenue contribution of approximately $9
million and to minimum annual purchase commitments in each of the
remaining years of the agreement. In addition, under the new
agreement, Amyris is entitled to a quarterly value-share
arrangement on the sales of the customer’s product made from the
purchased Biofene. Amyris expects total revenue from the five-year
agreement to be more than $100 million. In year-five of the supply
agreement term, the agreement is projected to generate
approximately $40 million of annual revenue, which Amyris expects
will be renewed at that level in subsequent years.
Due to the competitive nature of this market, both
parties have agreed to keep the targeted product and the customer’s
name confidential.
“This agreement represents a new highly disruptive
partner application for our flexible Biofene ingredient ─ which
supports multiple broad-based market applications and further
solidifies Amyris’s track record of helping solve partners’ supply
and product margin needs by supplying cost-advantaged renewable
ingredients that perform better than current supply sources,” said
John Melo, President & CEO of Amyris. “We are experiencing
significant growth in demand for our Biofene and Biofene-derivative
applications from large markets such as tires, industrial
lubricants, solvents, and nutraceuticals. This demand growth is
accelerating our mission to make renewable products mainstream
while making our company sustainable.”
About Amyris
Amyris is the integrated renewable products company
that is enabling the world’s leading brands to achieve sustainable
growth. Amyris applies its innovative bioscience solutions to
convert plant sugars into hydrocarbon molecules, specialty
ingredients and consumer products. The company is delivering its No
Compromise® products in focused markets, including specialty and
performance chemicals, fragrance ingredients, and cosmetic
emollients. More information about the company is available at
www.amyris.com.
Forward-Looking Statements
This release contains forward-looking statements,
and any statements other than statements of historical facts could
be deemed to be forward-looking statements. These forward-looking
statements include, among other things, statements regarding future
events (such as expected sales of Biofene and revenue projections
under a supply agreement, renewal of commitments after the initial
term of the agreement, minimum purchases by the customer through
the term of the supply agreement, the benefits of Amyris products
for its customers) that involve risks and uncertainties. These
statements are based on management's current expectations and
actual results and future events may differ materially due to risks
and uncertainties, including the company's liquidity and ability to
fund operating and capital expenses, Amyris's reliance on a third
party to comply with contractual terms and dependence on
third-party success in commercializing products made from Biofene,
timing and execution risks associated with development and
manufacturing, potential delays or failures in development,
production and commercialization of products, and other risks
detailed in the “Risk Factors” section of Amyris’s annual report on
Form 10-K filed on March 30, 2016. Amyris disclaims any obligation
to update information contained in these forward-looking statements
whether as a result of new information, future events, or
otherwise.
Amyris, the Amyris logo, Biofene, and No Compromise
are registered trademarks of Amyris, Inc.
Note to Editors: Please see news release
issued January 4, 2016, entitled, “Amyris Signs First
Multi-Million-Dollar Biofene® Ingredient Supply Agreement For
Global Nutraceuticals and Vitamins Market”.
Contact:
Peter DeNardo
Director, Investor Relations and Corporate Communications
Amyris, Inc.
+1 (510) 740-7481
investor@amyris.com
pr@amyris.com
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