Significant Initial Payment with Long-Term Royalty Payments
EMERYVILLE, Calif., Dec. 31, 2018 (GLOBE NEWSWIRE) — Amyris, Inc. (Nasdaq:AMRS), a leader in the development and production of sustainable ingredients for the Health & Wellness, Clean Beauty and Flavors & Fragrances markets, today announced that it has signed a long-term agreement with Xinfu of China for a significant initial payment and a long-term minimum annual share of an existing nutritional product royalty arrangement. This agreement enables Amyris to monetize a portion of the long-term royalty opportunity for this product upfront to better manage volatility in a high-margin revenue stream while maintaining access to future upside in the royalty payment structure.
“We are very pleased with our relationship with Xinfu, which is an extension of existing strong relationships we have built within China over the last year,” said John Melo, Amyris President & CEO. “We now have two programs under development with Xinfu that are performing very well and have now partnered on an additional nutritional product royalty arrangement, resulting in one of the best performing nutritional product portfolios in the industry. This agreement also provides Amyris the opportunity for more rapid value creation in nutritional products and includes a material upfront payment equal to the $50 million expectation set by us during our third quarter earnings call and an additional long-term annual upside based on the market performance of this nutritional product.”
Continued Melo, “After extensive discussions regarding the potential structure of this agreement we opted for a royalty rights partnership instead of a license agreement. We believe this structure better protects the future value of our technology for our shareholders and reduces any potential intellectual property associated risks in the future. We are pleased to have this completed and to have closed out a good year for Amyris where we’ve executed well on most of our strategic initiatives. We are very excited about the performance of our product sales and the continued success and market leadership of our product and technology pipeline.”
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 and produce specialty ingredients and consumer products. The company is delivering its No Compromise™ products and services across a number of markets, including specialty and performance chemicals, flavors and fragrances, cosmetics ingredients, pharmaceuticals, and nutraceuticals. 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 fact could be deemed to be forward-looking statements. These forward-looking statements include, among other things, statements regarding future events, such as the expected monetization of an existing nutritional product royalty arrangement, including an upfront payment and potential future payments, the anticipated performance of Amyris’s nutritional product portfolio, including future value creation, expected shareholder value and reduced intellectual property risk resulting from the agreement, and the anticipated performance of Amyris’s business, product sales and product and technology pipeline. 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 Amyris’s liquidity and ability to fund operating and capital expenses, potential delays or failures in development, production and commercialization of products, risks related to Amyris’s reliance on third parties, and other risks detailed from time to time in filings Amyris makes with the Securities and Exchange Commission, including Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. 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 No Compromise are trademarks or registered trademarks of Amyris, Inc. in the U.S. and/or other countries.
Contact:
Peter DeNardo
Director, Investor Relations and Corporate Communications
Amyris, Inc.
+1 (510) 740-7481
[email protected]
