Shares of Amyris (NASDAQ:AMRS) shot up Friday after the maker of face creams, nutraceuticals and fragrances, notched its first payment of $10 million after delivering on its first milestone for its cannabinoid partner LAVVAN.
The Silicon Valley biosciences company is creating synthetic cannabidiol (CBD) molecules for LAVVAN as part of a $300 million collaboration.
Investors were enthusiastic about Amyris’s $10 million win, sending its shares up 10.2% to $2.32 in morning trade Friday.
The agreement between Amyris and LAVVAN aims to bring the first CBD products derived from fermentation to the public.
“We are pleased with meeting our first milestone and confident in the capabilities of our R&D team toward rapidly meeting the objectives of this major agreement,” said John Melo, CEO of Amyris, in a statement. “We can create highly pure CBD molecules and we can bring down the cost significantly to support broad consumer adoption.”
Amyris is an industrial biosciences company which converts plant sugars into hydrocarbon molecules to produce specialty ingredients and products. The offerings it has helped to bring to market include a treatment for malaria as well as a new zero-calorie sweetener.
LAVVAN, meanwhile, is a newly-formed and privately-held startup focused on cannabinoids that is backed by leaders from the pharmaceutical, cannabis, and financial sectors.
Contact Ellen Kelleher at [email protected]