Amyris reports improved quarterly revenue

By Erin Voegele | November 03, 2016

On Nov. 2, Amyris Inc. released third quarter financial results, reporting it achieved the highest quarterly revenue of the company’s history since its exit from ethanol sales and trading. The company also reported continued strong momentum in new collaborations.

Once such collaboration announced during the quarter was with the U.S. Department of Energy. Under that agreement, Amyris and the DOE aim to further the manufacturing of cellulose-derived farnesene for biofuels. According to Amyris, success in the project could enable farnesene cost below $1 per liter, delivering breakthrough results in a variety of products and unlocking additional markets.

Also during the third quarter and early fourth quarter, Amyris signed its third collaboration agreement with “big pharma,” executed definitive agreements for a strategic partnership with a global nutraceuticals market leader, and entered a memorandum of understanding with a leader in food ingredients and nutraceuticals. In addition, Amyris announced its Biossance skin-care products will be launched in Sephora stores and online beginning next year, signed a letter of intent for distribution of Biossance products through informercial and direct selling channels, signed a term sheet with a cosmetic ingredients supplier to establish a joint venture for its Neossance cosmetic ingredients business, and closed on $16.5 million in financing.

"We're encouraged by the solid momentum in our business, which led to record revenue for the third quarter," said John Melo, president and CEO of Amyris. "We have continued to execute on our business plan to grow our business through collaborations and partnerships, including expansion into the pharmaceutical sector.  Our industry leading platform helped us reach a tipping point in demand from some of the leading companies in our target sectors. The combination of the strong growth for our farnesene building block, the new collaborations we are signing and the record number of products in our portfolio that are reaching commercial scale help underpin a very strong fourth quarter and over $200 million of 2017 revenue that we believe is supported by our current business and the remaining collaborations we expect to close in the fourth quarter."

During an investor call, Melo indicated meeting product demand is a primary risk for the company moving forward. He said the company’s facilities are running at full capacity, with the fermentation plant in Brotas, Brazil, expected to run for 12 months straight next year, avoiding seasonal shutdown for the first time. He also noted the company has added a production partner, CJ Bio, which is expected to provide additional farnesene production capacity by the fourth quarter of 2017. According to Melo, Amyris is also expanding its Brotas facility by designing a flexible multi-product fermentation facility that will allow the company to produce multiple products at one time. That upgrade is not expected to be complete until mid-2018, he said.

For the third quarter, Amyris reported revenues of $26.5 million, up from $8.6 million during the same period of last year. The increase was driven by a 61 percent increase in product sales, primarily in the company’s personal care segment, as well as by significantly higher collaboration revenues. Net loss attributable to Amryis common stockholders was $19.7 million, or 8 cents per basic share and diluted share. Adjusted net loss was $16.5 million, or 7 cents per basic share.