Amyris Inc (NASDAQ:AMRS) has announced the signing of a MoU with a leader in the food ingredients and nutraceuticals industry. The company anticipates that the strategic alliance would lead to definitive agreements in the near future, which includes a short-term collaboration investment, worth $10 million and an equity investment of up to $20 million. Moreover, AMRS expects to generate $100 million, as annual revenue in 2017, for the production and cost improvement of fermentation molecules.
AMRS has been actively pursuing strategic partnerships, as of late, with the most recent one being with another nutraceuticals company, on September 30. John Melo, the CEO of Amyris, expressed his pleasure at the MoU and pointed out that the company had an annual revenue run rate of $100 million, with another $100 million expected from this partnership alone, in 2017. He claimed that this would be crucial in driving stronger than expected growth, in the near future.
Mr. Melo voiced his belief that this agreement and the current momentum of Amyris’s business activities is sure to provide the company with the largest pipeline of fermentation based molecules, while also making AMRS one of the fastest growing companies in its sector. He concluded by stating that they were quickly becoming a must have technology for their partners. Amyris did not disclose the name of its partner, as it would be in violation of the agreement. However, the company did hint that the partner was based in Asia.
It should be noted here that Amyris is not just forming partnerships with the nutraceuticals industry, in fact, the company recently engaged with the Autodesk BioNano Research Group. This partnership was aimed at the development of powerful open source tools, which would be made available to DNA engineers, for genetic design. Through this partnership, the two companies plan to accelerate the advancements being made in biotechnology. The solution was showcased at SynBioBeta SF 2016, in San Francisco.
Amyris Inc (NASDAQ:AMRS) had a trade volume of 27.6 million and gained 5.86% in terms of its share value, during the October 13 trading session, to close at $0.815 per share.