Amyris Expands in Global Nutraceuticals Market with New Collaboration and Partner Funding of $30 Million
September 30 2016 - 8:30AM
Amyris, Inc. (Nasdaq:AMRS), the industrial bioscience company,
today announced that it has expanded its strategic partnership with
a global nutraceuticals market leader. The new agreement represents
a significant expansion in expected revenue compared to the prior
agreement announced on April 27, 2016, and includes the addition of
a new nutraceutical target, a credit line of up to $25 million with
a 5-year maturity, and an option for a $5-million strategic
investment from one of the world’s leading nutraceuticals
manufacturers.
Amyris has already started large shipments of farnesene as part
of its earlier announced supply agreement with this partner, for
which Amyris has become an essential part of its highly disruptive
technology to capture market share. The partner is nearing
completion of a dedicated manufacturing facility to convert
Amyris’s farnesene and expand volume production over time.
This agreement and the related processing technology for the
farnesene building block will enable a significant cost advantage
within a large global market for what will now be two agreed on
global products used daily by many for nutritional benefit. This is
a significant achievement consistent with Amyris’s mission to help
its customers do better while doing better for the planet. Demand
for global nutritional products continues to grow at a much faster
pace than GDP and supplying these products from sustainable sources
at a lower cost than currently possible is critical for the growing
population of the world.
Amyris now expects 2017 revenue for the first targeted product
of around $40 million and anticipated revenues from the expanded
partnership are expected to average over $70 million annually
beyond 2017. This expansion is expected to lead to the second
molecule to be supplied by Amyris in 2019 into a market that is
approximately the same size as the first agreement. These
agreements demonstrate the leadership position of Amyris as the
only company in industrial biotechnology to produce multiple
molecules at a single industrial fermentation facility and with one
of the strongest contracted product pipelines in the sector.
Due to the competitive nature of this market both parties have
agreed to keep the targeted products and the customer’s name
confidential. The expansion of the partnership is subject to
obtaining required approvals.
“We’re very pleased with our achievement to date and the
significant expansion of our partnership. This relationship
continues to be based on our ability to provide our partners with
low-cost, high-performance farnesene that can provide them with a
competitive advantage while enabling them to grow sustainably,”
said John Melo, President & CEO of Amyris. “This expanded
partnership agreement further transitions us to a more broadly
diversified portfolio of high performance, sustainable ingredients
to some of the world’s fastest-growing markets and a global leader
in low cost, high performance ingredients for the nutraceuticals
market.”
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 the expected consummation of an expanded
partnership with a nutraceuticals manufacturer, including the
negotiation and execution of definitive agreements providing for a
new product collaboration, a credit line for Amyris of up to $25
million, and an option for a strategic investment in Amyris by the
customer, and obtaining the required approvals, the expected
completion by the customer of a dedicated manufacturing facility
and related production volume expansion, the expected growth of
demand for global nutritional products, expected revenues for the
targeted products under the expanded partnership, the ability of
farnesene and related processing technology to enable a significant
cost advantage to the customer for the final products, the expected
timing for supplying the second targeted product under the expanded
partnership, the ability of Amyris to provide partners with a
competitive advantage, and Amyris’s transition to a more broadly
diversified portfolio of products and a global leader in low cost,
high performance ingredients for the nutraceuticals market) 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 risks related to manufacturing capacity at Amyris’s
Brotas facility, delays or failures in development, production and
commercialization of products, liquidity and ability to fund
capital expenditures, Amyris’s reliance on third parties to achieve
its goals, and other risks detailed in the “Risk Factors” section
of Amyris’s quarterly report on Form 10-Q filed on August 9, 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 and Biofene are registered trademarks of
Amyris, Inc.
Note to Editors: Please see news release issued April 27, 2016,
entitled “Amyris Signs Five Year Biofene® Supply Agreement with
leading Global Nutraceuticals Company with Over $100 Million of
Expected Value”.
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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