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Amyris shares rocket in response to lucrative collaboration with undisclosed partner

The industrial biosciences company will receive as much as $255 million thanks to the new deal
sugar cubes
Amyris is an industrial biosciences company which converts plant sugars into hydrocarbon molecules

Shares of Amyris Inc (NASDAQ:AMRS) are soaring Tuesday in response to its new collaboration agreement with an undisclosed partner that aims to commercialize and develop cannabinoid products.

Under the terms of the deal, which is set to close next month, the Emeryville, California-based company will receive $255 million, which includes an upfront payment as well as milestone and royalty payments.

Investors applauded the news, sending Amyris shares up 37.6% to $4.35 in morning trade on Tuesday.

READ: Amyris shares slump following 3Q earnings loss and weaker revenue

“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’s CEO, in a statement.

Development will begin immediately and work on the launch of products is expected within the next 18 months to two years. All research and development work will be conducted by Amyris.

Amyris is an industrial biosciences company which converts plant sugars into hydrocarbon molecules and produce specialty ingredients and consumer products. The products it has helped to bring to market include a treatment for malaria as well as a new zero-calorie sweetener.

Contact Ellen Kelleher at [email protected]

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