Amyris (AMRS) Enters MOU with Food Ingredients and Nutraceuticals Partner; Will Receive Investment
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Amyris, Inc. (Nasdaq: AMRS) announced that it has executed a Memorandum of Understanding for a transformative strategic collaboration with a partner that is a leader in food ingredients and nutraceuticals. Upon required approval and execution of definitive agreements with this new partner, Amyris expects to receive cash representing a short-term collaboration investment of $10 million, an equity investment of up to $20 million at $1.40 per share, $100 million in annual revenue starting in 2017 connected to the production and cost improvement of fermentation molecules, and participation in the partner’s industrial fermentation facilities in Asia.
This relationship follows a series of significant partnerships Amyris has announced in recent months, including a partnership with a separate company in the nutraceuticals space that was announced on September 30, 2016.
“We’re very pleased with the opportunity to partner with one of the leading nutraceutical and food ingredient suppliers in the world. Our current annual revenue run rate of over $100 million combined with the $100 million of annual revenue we expect from this partnership starting in 2017, should help us deliver stronger than expected growth in 2017 and beyond,” said John Melo, Amyris President & CEO.
Continued Melo, “We anticipate that this collaboration will support our short-term results with an expected $10 million in 2016 collaboration funding. The combination of the strong pipeline of products from our new partner, the short-term collaboration payment and anticipated revenue for 2017 and beyond makes this a transformative relationship for our business. We believe the combination of this collaboration and the strong momentum in our underlying business will provide us with what we believe is the largest pipeline of contracted fermentation-based molecules in the world, deliver the highest revenue growth rate in our sector and make us one of the fastest-growing companies in nutraceuticals and food ingredients.”
“We are very pleased with the strong momentum we are realizing from becoming the must-have technology for our partners.”
Both parties have agreed to keep the partner’s name confidential for now. The collaboration is subject to completion of definitive agreements and the obtaining of required approvals. Amyris expects this to be completed by the beginning of December 2016.
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