Royal DSM (AEX:DSM.AS), a global science-based company active in
health, nutrition and materials and Amyris, Inc. (Nasdaq:AMRS), the
industrial bioscience company, today announced that they have
enhanced their strategic alliance through the sale of Amyris Brasil
Ltda to DSM and the establishment of a long-term manufacturing
partnership for Amyris’ high-volume products.
Total consideration for Amyris Brasil Ltda (which owns and
operates the Brotas 1 production facility), intellectual property
related to farnesene (a bio-based key intermediate for many
applications) and an additional value share arrangement over a
three-year period amounts to US$ 96 million. In addition to the
consideration upfront there is potential for a future value share
in line with Amyris’ business model.
DSM will continue existing supply-agreements to Amyris and other
parties. DSM will also supply Amyris with specialty compounds until
it realizes its Brotas 2 specialties production facility. Amyris is
accelerating the construction of its second facility dedicated to
specialty products while maintaining the manufacturing process
development and business support capability located in Campinas,
Brazil.
Subject to customary conditions, the transaction is expected to
close in the next few months.
With the acquisition of the Brotas 1 facility, DSM adds a
state-of-the-art biotechnology-based production site in Brazil to
its global network, with abundant availability of sustainable raw
materials (sugar cane), securing production capacity for its rich
pipeline of sustainable and bio-based solutions. Having broad
experience in operating large-scale fermentation plants, DSM will
optimize the operational performance of the site.
The strategic alliance between DSM and Amyris started in May
2017 with an equity investment by DSM in Amyris, and has since been
expanded with several significant product development
collaborations.
The sale of the Brotas 1 facility, which was designed to produce
high volumes of farnesene, together with the creation of a
long-term production relationship for high-volume farnesene-based
intermediates will enable Amyris to focus on its core strength of
developing breakthrough bioscience technologies through a portfolio
approach that continues to target key markets, as well as the
production of specialty products.
“Following our equity investment in Amyris and subsequent
product development cooperations, I am pleased that we can add a
state-of-the-art fermentation-based production facility to our
network. Our know-how in fermentation, downstream process
development and large-scale manufacturing will allow us to further
improve the operational performance of the facility while further
strengthening our strategic alliance with Amyris,” said Chris
Goppelsroeder, President & CEO of DSM Nutritional Products.
“We are very pleased with the continued expansion of our
strategic alliance with DSM,” said John Melo, Amyris President
& CEO. “This manufacturing partnership and the sale of our
Brotas 1 factory allows us to accelerate the development and
manufacturing of specialty, high-performance ingredients. We are
building a specialty plant at Brotas (Brotas 2) and also expect to
complete our São Martinho plant to focus on sweeteners. The
combination of these actions provides us the manufacturing
footprint to meet our current demand through the next 3-5 years and
to manage this within our funding constraints.”
Continued Melo, “This transaction completes a planned shift from
operating a plant originally designed to produce high volumes of
farnesene, to producing an expanding number of high-value,
specialty ingredients. This shift will allow Amyris to improve
returns and cash flows in order to continue to provide sustainable
growth for Amyris and its partners.”
DSM – Bright Science. Brighter Living.™Royal
DSM is a global science-based company active in health, nutrition
and materials. By connecting its unique competences in Life
Sciences and Materials Sciences DSM is driving economic prosperity,
environmental progress and social advances to create sustainable
value for all stakeholders simultaneously. DSM delivers innovative
solutions that nourish, protect and improve performance in global
markets such as food and dietary supplements, personal care, feed,
medical devices, automotive, paints, electrical and electronics,
life protection, alternative energy and bio-based materials. DSM
and its associated companies deliver annual net sales of about
€10 billion with approximately 25,000 employees. The company
is listed on Euronext Amsterdam. More information can be found at
www.dsm.com.
About AmyrisAmyris is the integrated renewable
products company that is enabling the world’s leading brands to
achieve sustainable growth. Amyris applies its innovative
bioscience solutions to convert plant sugars into hydrocarbon
molecules and produce specialty ingredients and consumer products.
The company is delivering its No Compromise® products across a
number of markets, including specialty and performance chemicals,
flavors and fragrances, cosmetics ingredients, pharmaceuticals, and
nutraceuticals. More information about the company is available at
www.amyris.com.
DSM Forward-Looking StatementsThis press
release may contain forward-looking statements with respect to
DSM’s future (financial) performance and position. Such statements
are based on current expectations, estimates and projections of DSM
and information currently available to the company. DSM cautions
readers that such statements involve certain risks and
uncertainties that are difficult to predict and therefore it should
be understood that many factors can cause actual performance and
position to differ materially from these statements. DSM has no
obligation to update the statements contained in this press
release, unless required by law. The English language version of
the press release is leading.
Amyris Forward-Looking StatementsThis release
contains forward-looking statements, and any statements other than
statements of historical fact could be deemed to be forward-looking
statements. These forward-looking statements include, among other
things, statements regarding future events (such as expected
upfront consideration to Amyris in the transaction as well as
future value share payments, the anticipated closing of the
transaction, including the timing thereof, the expected
continuation of existing supply agreements with Amyris and other
parties, the anticipated supply of Amyris’s specialty compounds,
the expected construction of the proposed Brotas 2 facility, the
anticipated development and manufacturing of specialty ingredients,
the expected construction of a proposed plant focused on
sweeteners, anticipated ability to meet current and future demand,
and expected improvements in returns, cash flows and growth), that
involve risks and uncertainties. These statements are based on
management's current expectations and actual results and future
events may differ materially due to risks and uncertainties,
including risks related to Amyris’s liquidity and ability to fund
operating and capital expenses, timing and execution risks
associated with manufacturing, uncertainty regarding consummating
proposed transactions, including the timing thereof, and growth in
sales, potential delays or failures in development, production and
commercialization of products, risks related to Amyris's reliance
on third parties to achieve its goals, and other risks detailed in
the "Risk Factors" section of Amyris's quarterly report on Form
10-Q filed on August 14, 2017. Amyris disclaims any obligation to
update information contained in these forward-looking statements
whether as a result of new information, future events, or
otherwise.
Amyris, the Amyris logo and No Compromise are registered
trademarks of Amyris, Inc. All other trademarks are trademarks of
their respective owners.
For more information:
DSM Corporate CommunicationsHerman Bettentel. +31 (0) 45 578
2017e-mail media.contacts@dsm.com
Amyris, Inc.Peter DeNardotel.: +1 (510) 740-7481e-mail:
investor@amyris.compr@amyris.com
DSM Investor RelationsDave Huizingtel.: +31 (0) 45 578
2864e-mail: dave.huizing@dsm.com
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