Nuffoods Spectrum India

Amyris announces signing of nutritional product royalty agreement

07 January 2019 | News

This agreement enables Amyris to monetize a portion of the long-term royalty opportunity for this product upfront to better manage volatility in a high-margin revenue stream while maintaining access to future upside in the royalty payment structure

Amyris, a company involved in the development and production of sustainable ingredients for the Health & Wellness, Clean Beauty and Flavors & Fragrances markets has announced a long-term agreement with Xinfu of China for a significant initial payment and a long-term minimum annual share of an existing nutritional product royalty arrangement.

John Melo, Amyris President & CEO said, “We are very pleased with our relationship with Xinfu, which is an extension of existing strong relationships we have built within China over the last year. We now have two programs under development with Xinfu that are performing very well and have now partnered on an additional nutritional product royalty arrangement, resulting in one of the best performing nutritional product portfolios in the industry. This agreement also provides Amyris the opportunity for more rapid value creation in nutritional products and includes a material upfront payment equal to the $50 million expectation set by us during our third quarter earnings call and an additional long-term annual upside based on the market performance of this nutritional product.”

“After extensive discussions regarding the potential structure of this agreement we opted for a royalty rights partnership instead of a license agreement. We believe this structure better protects the future value of our technology for our shareholders and reduces any potential intellectual property associated risks in the future. We are pleased to have this completed and to have closed out a good year for Amyris where we’ve executed well on most of our strategic initiatives. We are very excited about the performance of our product sales and the continued success and market leadership of our product and technology pipeline”, he added.

This agreement enables Amyris to monetize a portion of the long-term royalty opportunity for this product upfront to better manage volatility in a high-margin revenue stream while maintaining access to future upside in the royalty payment structure.

 

 

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