Exiting Vitamin E Simplifies Amyris and Improves Predictability
EMERYVILLE, Calif., April 18, 2019 (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 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.
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.
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 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.
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