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AMRS big announcement today
Amyris (NASDAQ: AMRS) 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.”
source-streetinsider
Broad street alerts has not been compensated for the mention of any publicly traded companies in this article nor do we own positions in any of the companies in this article.
Broad Street Alerts was previously compensated eighteen thousand five hundred dollars by star media llc for the mention of FNJN however, that contract has expired.
