Amyris (AMRS) Stock: Massive Upside Potential Ahead

Amyris Inc (NASDAQ: AMRS)

Amyris is having an incredible day in the market today, following up on the gains that we’ve seen on the stock over the past month. If you think you’ve missed the opportunity to capitalize on the trend, think again. The year 2016 has been a great year for the company, and I believe that AMRS is likely to continue upward. Today, we’ll talk about why.

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By March AMRS Sold Out Brotas For More Than 3 Years

For some time, Amyris had been in the development stage. However, the company is now commercializing its products, and it’s doing an incredible job at it. In fact, back in March, the company announced that the Brotas Plant sold out of its Farnesene Volume for the years 2017 through 2020. As a result, the company was forced to expand the plant.

Soon AMRS will be adding dedicated flavors & fragrances manufacturing units to its Brotas industrial fermentation complex in Brazil. This expansion will make it so that the company is able to meet demand for contracted flavor and fragrance molecules for its collaboration partners. In a statement, John Melo, President and CEO at AMRS, had the following to say with regard to the news:

After several years of application and product development activities in collaboration with our strategic partners, we’ve now transitioned to the commercialization phase of many applications… We are very fortunate that many of our partnerships are focused on solving supply chain challenges by replacing our current raw material sources with lower-cost, better-performing, sustainably sourced material. This is enabling us to grow our supply of farnesene into these markets at a faster rate than we expected.

We expect to have five or more high performance fragrance molecules scaled as we complete 2016 and this, combined with strong farnesene demand, has enabled us to initiate a project for a dedicated flavors & fragrances operation at Brotas. We are very excited for our Brazilian operation as this will result in our plant becoming one of the largest providers of flavors and fragrances ingredients to the world as we continue to execute and deliver contracted molecules to our partners.”

This Isn’t The Only Positive News We’ve Seen This Year

Since the announcement of the news above, we’ve seen tons of positive news surrounding Amyris. Some of what I believe are the most important stories as of late include:

  • Illuminator Launch – Recently AMRS announced the launch of The Illuminator. This is a product that the company has worked with Biossance to pioneer. The product is designed to reduce dark circles and puffiness around the eyes as well as rejuvenate the delicate skin in that area. It is expected by investors that this product will see incredible sales.
  • US Department Of Energy Agreement – Another big bit of news that was released recently is that AMRS has signed an agreement with the U.S. Department of Energy. Under the agreement, the company will be working to manufacture cellulose-derived farnesene for biofuels.
  • Biogen – As if the new contracts above weren’t enough, Amyris also recently announced a collaboration agreement with a leading pharmaceutical company, Biogen. Under this collaboration, the companies will be looking into the use of advanced microbe engineering technology to evaluate and develop multiple host microorganisms as alternatives to mammalian cell lines for the production of therapeutic recombinant proteins.
  • Givaudan – Finally, just a couple of months ago, AMRS teamed up with Givaudan, a leading flavors and fragrances company. The two will be working together to develop proprietary fragrance ingredients.

After reading the above, think about the fact that all of this has happened in just the past few months! This is a company that is hitting the ground running as it makes its way into the commercial space. However, they’re not forgetting that further development of new products is important. From these developments, it’s clear that AMRS is doing an incredible job!

Institutional Ownership

It’s clear that your every day investor isn’t the only class of investor interested in AMRS. In fact, institutional demand is running high. According to NASDAQ, institutional ownership on the stock is currently at 35.68%. That’s a massive figure for a stock that is currently considered to be a penny stock!

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The Bottom Line

The bottom line here is that, while Amyris has had a rough time in the past, throughout the year 2016 the company has really turned things around. Pushing to commercial stage development and signing new contracts, AMRS has become a force to be reckoned with yet again. All in all, I’m expecting to see strong gains ahead.

[Image Courtesy of Flickr]

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