Amyris Completes Sale of Vitamin E Royalty to DSM
18 Aprile 2019 - 02:30PM
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 the sale of its Vitamin E royalty agreement to
Koninklijke DSM N.V. (Royal DSM) (AEX:DSM.AS). This agreement
assigns Amyris’s rights to Vitamin E royalties to DSM in exchange
for total consideration of approximately $57 million. In addition,
DSM and Amyris have agreed to a further manufacturing cooperation
for Amyris products at DSM’s Brotas facility that provides
additional capacity and lower cost of goods sold with an expected
approximate aggregate benefit of $30–$40 million over the next
three years. The expected economic benefit of both agreements to
Amyris is approximately $90 million.
As a result of this agreement, Amyris has now fully exited the
Vitamin E business and is focused on driving commercial growth in
the major markets it is already successfully disrupting: flavor and
fragrance ingredients, skincare, sweetener, and most recently,
entry into the cannabinoids market. These are markets where Amyris
is demonstrating market leadership with its products, brands and
resulting underlying growth and margin.
“We are pleased to have executed this agreement in the timeframe
expected and to have secured lower-cost manufacturing while we seek
to bring our own production facility online in 2020,” said John
Melo, President and CEO of Amyris. “As we said, the economics of
this agreement are superior to those offered under the deal we
elected to forego, and ensure our ability to deliver continuous
supply to our customers at a competitive cost.”
Terms of the agreement with DSM will be more fully disclosed in
a Form 8-K to be filed later this week with the Securities and
Exchange Commission, available free of charge at sec.gov.
About AmyrisAmyris 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 StatementsThis 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
benefits of a manufacturing cooperation between Amyris and DSM, the
anticipated aggregate economic value of the manufacturing
cooperation and the sale of Amyris’s Vitamin E royalty agreement to
DSM, Amyris’s expected market leadership, business growth and
product margin, the anticipated timeline for completing a new
manufacturing facility, and Amyris’s expected ability to deliver
continuous product supply to its customers at a competitive cost.
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, risks related
to 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. All other trademarks are the property of their
respective owners.
Contact:
Peter DeNardoDirector, Investor Relations and Corporate
CommunicationsAmyris, Inc. +1 (510)
740-7481investor@amyris.com