Amyris Inc (NASDAQ: AMRS) is having an incredibly strong start to the trading session this mroning, and for good reason. The company announced that it has entered into an extensive collaboration agreement with a leading Chinese pharmaceutical company. Of course, the news excited investors who are sending the stock toward the top. Today, we’ll talk about:
- The collaboration agreement;
- what we’re seeing from AMRS as a result; and
- what we’ll be watching with regard to the stock ahead.
AMRS Announces Collaboration Agreement
As mentioned above, Amyris is having a great start to the trading session this morning after annouuncing a collaboration agreement. In a press release issued early this morning, the company said that it has entered into a multi-year, multi-million dollar agreement with a subsidiary of Yifan Pharmaceutical Co., a leading pharmaceutical company in China.
In the release, AMRS said that it is expecting for the collaboration to be the beginning of a long-term relationship with Yifan. The agreement will start with a first target in nutrition for a key molecule to be developed, scaled and manufactured by the company. It is expected that the resulting product will be commercialized in the Chinese market and globally by 2021 with revenue being achieved in the first year. If all goes well with the first target, the companies expect to bring between 3 and 5 additional products to market in the coming years. In a statement, John Melo, Presidnt and CEO at AMRS, had the following to offer:
Upon successful commercialization, Amyris expects to develop this line of business into $100 million or more of expected annual revenue… We expect this to be the first of several multi-million-dollar collaborations in China that build on the leadership of our technology platform for the Chinese market and our ability to develop sustainable products faster, better and at lower cost than anyone else in the world. We are continuing to execute on our plan for the year and we are excited by the potential of this agreement and share a common vision with Yifan to transform the traditional chemistry in China to clean chemistry. We think this transition is a multi-billion-dollar opportunity in the Chinese market and Amyris is the best positioned to provide a clean and healthier solution for the people of China.
The above statement was followed up by a representative of Yifan with the following:
Innovation, integration and globalization are central to Yifan’s long-term development plan, and we have been striving to strengthen our leading position within the vitamin market through breakthrough technology and innovation… We believe the collaboration between Yifan and Amyris is a start of integrating the strengths and complementing the resources of the two companies. We expect this collaboration to benefit both parties as well as help move the global vitamin market to a more benign and healthier direction.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to dig into the market is that the news leads to moves. In the case of Amyris, the news proved to be overwhelmingly positive. Not only has the company entered into a new agreement, this agreement could become a pretty extensive one, bringing a large number of products to market. So, it comes as no surprise that excited investors are sending the stock toward the top in the market this morning. Of course, our partners at Trade Ideas were the first to alert us to the gains. Currently (8:37), AMRS is trading at $8.44 per share after a gain of $0.62 per share or 7.93% thus far today.
Stop wasting your time! Start finding winning trades in minutes with Trade Ideas!
What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on AMRS. In particular, we’re interested in following the story surrounding the company’s relationship with Yifan and excited to see the results of the collaboration. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
Never Miss The News Again
Do you want real-time, actionable news delivered to your inbox? Join the CNA Finance mailing list below!