Amyris, Inc., a California-based leader in the development and production of sustainable ingredients for the Health & Wellness, Clean Beauty and Flavors & Fragrances markets, signed a binding term sheet for a planned cannabinoid development, licensing and commercialization partnership valued at up to $255 million (not including significant royalties once the products are commercialized) with a confidential partner. The $255 million in payments include an upfront payment and the remainder are linked to milestones that are expected over the next 12-36 months following the signing of a definitive final agreement.
Amyris has a successful track record of leveraging its unique technology platform to scale No Compromise™ sustainable products and successfully bring them to commercialization. In addition to lab-based milestone payments, this agreement also provides for significant milestone payments for commercially scaling each product.
As Amyris’s proprietary technology platform has become more widely known, it has become the recognized leader in bringing products to market faster and more cost effectively compared to any other company. Amyris is the preferred partner for the world’s leading companies for its technology and its success in bringing high performance, No Compromise™ products to market.
Both parties are committed to executing a final definitive agreement by the end of March with development to begin immediately and commercialization of products expected within the next 18-24 months assuming appropriate regulatory approvals.
Amyris is leading the way in sugarcane fermentation among private and publicly-traded companies alike, having brought many products to market with commercial success. These products include a World Health Organization recommended first-line treatment for malaria that has saved thousands of lives and many products in the flavors and fragrances, personal care and health and wellness markets. The company’s most recent successful product developed is its new, zero calorie sweetener with the best taste profile available to enable everyone, including those managing diabetes and obesity, to enjoy the sweetness of sugar without the negative health consequences of artificial sweeteners or the bitterness of stevia-sourced products. This product has quickly become the leader in sales volume for the natural sweeteners category and the fastest growing product in the Amyris portfolio.
“We are pleased to have been recognized by a well-capitalized partner as the company best suited to leverage fermentation-based technology in the production of the best quality and lowest cost and sustainably-produced cannabinoids,” said John Melo, Amyris President & CEO. “The dollar value of this agreement and our roster of partners who are leaders in global markets combines to be a strong endorsement of our technology platform and ability to bring No Compromise™, sustainably-produced products to market. We share the mission of our partners to become the leader in sustainably-sourced CBD products in the near term as we focus on enabling the global beverage and skin care markets, including our own brands, to support the health and wellness of people and our planet.”