Amyris (AMRS) Stock: Yet Another Reason To Be Bullish!


Amyris Inc (NASDAQ: AMRS)

Amyris investors got more good news today, as the company released information that it has entered into yet another definitive agreement. Today, we’ll talk about the agreement, how the stock reacted to the news, and what we can expect to see from AMRS ahead.

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AMRS Executes Yet Another Definitive Agreement

As mentioned above, Amyris bulls got more good news today. The company announced that it has entered into definitive agreements for its strategic partnership and financing with a global nutraceuticals leader. The agreements surround the expansion of a new neutraceuicals market.

In the announcement, AMRS said that it expects this new market to represent a strong amount of revenue. In fact, the company is expecting that the product will likely represent between $40 million and $50 million annually. Of course, this will come once the product is developed and scaled.

Also, along with the agreements, AMRS has secured more financing. In fact, the agreements include an unsecured credit facility of $25 million. The credit facility will have a five-year maturity. In a statement, John Melo, President and CEO at Amyris, had the following to offer:

We are very pleased with the significant traction we are experience in the first market we launched with this partner earlier this year and the speed by which we’ve been able to execute the expanded agreement into our second nutraceutical market with this parter. We expect the second nutraceuticals product to reach full scale production in 2019 and combined with our first product with this partner we expect will generate approximately $100 million annually… We expect 2017 revenue from the first targeted product of around $40 million…. We are very pleased with how well our partnership business model is delivering and the strategic nature of our partners.”

What We’re Seeing From The Stock

While we did see a pop in value early on in the day, AMRS isn’t having quite the reaction I would expect to see from such positive news. In fact, at the moment, the stock is in the red. Currently (11:23), the stock is trading at $1.06 per share after a loss of $0.01 per share (0.93%) thus far today.

What We Can Expect To See Ahead

The declines that we’re seeing an Amyris today are, in my opinion, an opportunity. What we’ve seen from the company over the past year has been nothing short of amazing. We’ve seen product launches as well as contracts in fragrances, flavors, nutraceuticals, energy, and more. We’ve seen action! At the end of the day, AMRS is working incredibly hard and the company’s stock price is likely to benefit as a result.

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