Industrial bioscience company, Amyris, Inc. (NASDAQ:AMRS) announced on Thursday that it has reached a collaboration agreement with a leading global food ingredients and nutraceuticals partner.
EMERYVILLE, Calif., Oct. 13, 2016 (GLOBE NEWSWIRE) — Amyris, Inc. (AMRS), the industrial bioscience company, today 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.
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.
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 consideration to be received by Amyris in connection with the proposed collaboration, Amyris’s expected annual revenue run rate, Amyris’s anticipated future revenues and growth in 2017 and beyond, the anticipated effect of the proposed collaboration on Amyris’s short-term results, molecule pipeline, future growth and market position, and the expected consummation of the proposed collaboration and the timing thereof) 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, Inc. (NASDAQ:AMRS) shares are trading +5.858% on the news and in the range of $0.790 – 1.030 during the current trading session. When taking a look at which direction the stock might be headed, investors often look to brokerage analysts who cover the stock. Sell-side research firms on Wall Street currently have a consensus one-year price target of $2.680 on the stock. This is according to brokerage analysts polled by Thomson Reuters First Call.
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Sell-side analysts are projecting earnings per share of $-0.020 for the next fiscal quarter. For the current year, analysts are predicting earnings of $-0.200 per share according to First Call.
In looking at where the stock is trading on a technical level, the stock is trading +64.504% away from its 50 day moving average of $0.495. Based on the most recent available data, the equity is -59.852% off of its 52-week high of $2.030 and +160.383% away from its 52-week low which is $0.313.
Today, the stock opened at $0.900 and the last bid at the time of writing stood at $0.815. During the session thus far, the equity dipped down to $0.790 and touched $1.030 as the high point. Amyris, Inc. (NASDAQ:AMRS) has a market cap of $191.54M and has seen an average daily volume of 2769060 over the past three months.
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