Amyris and DSM close US$50M strategic transaction on farnesene supply
The deal licenses DSM rights to assume the supply of farnesene to Givaudan
23 Dec 2020 --- US-based synthetic biotechnology company Amyris has closed a strategic transaction with DSM Nutritional Products. Under the terms of the agreement, Amyris is licensing DSM rights to assume the supply of farnesene – a bio-based compound – to Givaudan for the production and sale of a single specialty ingredient.
Amyris is active in the clean health and beauty markets through its consumer brands, and a major supplier of sustainable and natural ingredients.
“Our portfolio strategy is to simplify and focus our activity. This agreement with DSM aligns with our strategy and demonstrates that we are executing on our plan. It also demonstrates the significant, current demand and interest for clean and sustainably produced chemistry – the power of synthetic biology,” Amyris President and CEO John Melo tells NutritionInsight.
This is the first of three anticipated transactions management described during its recent virtual investor mini-series event, held on December 15, 2020.
The transaction is valued at US$50 million, with US$30 million payable by December 30, 2020. US$10 million will be paid in the first quarter of 2021 and the remainder in milestone payments thereafter.
According to DSM, its strategic alliance with Amyris started in May 2017 with an equity investment.
The relationship has since been expanded with several significant product development collaborations.
In November 2017, DSM acquired Amyris’ Brazilian fermentation-based production facility, Brotas 1, which was designed to produce high volumes of farnesene.
The abundant availability of sustainable raw materials in Brazil, such as sugar cane, supported a pipeline of bio-based solutions.
"The manufacturing partnership and the sale of our Brotas 1 factory allows us to accelerate the development and manufacturing of specialty, high-performance ingredients," explained Amyris president and CEO John Melo, commenting on the 2017 deal.
Amyris’ business strategy
Amyris’ ingredients are included in over 3,000 products from brands worldwide, reaching more than 200 million consumers.
The company owns three consumer brands built around its “No Compromise” promise of clean ingredients: Biossance clean beauty skincare, Pipette clean baby skincare and Purecane, a zero-calorie sweetener naturally derived from sugarcane.
In September, the company successfully scaled up the commercial production of cannabigerol (CBG), a fermentation-based alternative to cannabidiol (CBD) after having scored US$300 million to development a new cannabinoid in 2019.
In business developments earlier this year, Amyris entered into definitive securities purchase agreements in a US$112 million recapitalization anchored by Foris Ventures. In expansion moves toward the Chinese market, it signed a long-term agreement with Xinfu of China for a long-term minimum annual share of an existing nutritional product royalty arrangement.
By Missy Green
To contact our editorial team please email us at editorial@cnsmedia.com
Subscribe now to receive the latest news directly into your inbox.