EMERYVILLE, Calif., April 27, 2016 (GLOBE NEWSWIRE) -- 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.”
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 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”.