Amyris Inc (NASDAQ: AMRS) is off to an incredibly strong start to the trading session this morning, and for good reason. The company announced that it has entered into a product development and production agreement. Of course, this is leading to excitement among investors, causing gains and prompting our friends at Trade Ideas to alert us to the movement. At the moment (10:15), AMRS is trading at $3.64 per share after a gain of $0.25 per share (7.37%) thus far today.
AMRS Enters Product Development And Production Agreement
As mentioned above, Amyris is having a strong day in the market today after announcing that it has entered into its first product development and production agreement with Koninklijke DSM N.V. The company is a global science-based company active in the health, nutrition, and materials sector. The goal of the partnership is to develop a food and nutrition molecule for which DSM is a major market provider.
This comes shortly following a previously announced equity investment that DSM is making into AMRS. Part of this investment is that the companies have agreed to work together on several short- to medium-term product development and production opportunities and the vitamins and other nutritional ingredients industries. As such, the development and production agreement that was announced today is expected to be the first of several agreements to come.
Under this particular agreement, DSM has agreed to fund the development of the technology AMRS needs in order to produce the specific molecule. The molecule will be supplied long term through AMRS in order to provide improved performance. In a statement, John Melo, President and CEO at AMRS, had the following to offer:
“We are very excited to partner with DSM on our first product development and production agreement… This is the first of what are expected to be several highly disruptive products addressing major markets where, together, we can leverage Amyris’s technology platform to reduce cost for products DSM then takes to market in a cost-advantaged position.”
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will be keeping a close eye on AMRS. In particular, we’ll be watching the productivity surrounding the agreement that was announced today and we’re excited to learn of the new agreements that will be coming down the line relatively soon. We’ll continue to follow the story closely and bring the news to you as it breaks!
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