In California, the Eco-Emirs of Emeryville, Amyris (AMRS) executed a five year Biofene supply agreement with a global nutraceuticals company.
Upping the ante from January
This new, long-term agreement replaces the parties’ one-year purchase agreement, which was previously announced on January 4, 2016. More on that deal here.
Under the new supply agreement, the mystery 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.
A 2016 Farnesene Fiesta?
For biofene, the Brotas plant in now sold out through 2020. We look at Amyris’ 2016 horizons here.
The Amyris Story
John Melo discusses Amyris’ immediate horizons with The Digest and BioChannel.TV.
Also on BioChannel.TV, Amyris is the first company up in this episode from March Madness, 50 Hot Companies 50 Quick Takes, here.
The Amyris 2016 8-Slide Guide is here.
The Latest on Amyris Biossance is here.
Amyris debuts Pathways Program: access to its synthetic biology technology.
Reaction from Planet Amyris
“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 CEO John Melo.
“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.”
Jim Lane is editor and publisher of Biofuels Digest where this article was originally published. Biofuels Digest is the most widely read Biofuels daily read by 14,000+ organizations. Subscribe here.