Amyris Inc (NASDAQ:AMRS) announced agreements for $50 million in equity financing as part of the second tranche of its previously announced financing. The second tranche of $50 million in a private placement, which is expected to close within the next couple of days is being led by a $25-million investment from Koninklijke DSM N.V. with the remaining $25 million contributed by Vivo Capital, a healthcare investment firm focused on investing in and building high quality companies in the U.S. and China.
Amyris shares reacted to the news, rising nearly 7% to $4.19 in Thursday’s trading session.
“We are pleased with the progress we’ve made thus far in working closely with Amyris to plan how best to leverage each other’s strengths to create value and foster growth,” said Chris Goppelsroeder, President & CEO of DSM Nutritional Products. “This has already led to the designation of several product targets that should prove to be key growth drivers within animal- and human health markets.”
“Amyris fits well with our strategy of focusing on growth companies with leading underlying technology, a strong intellectual property portfolio and market potential,” said Frank Kung, Managing Partner and Founding Member of Vivo Capital. “We are excited to support funding the next stage of the company’s expanding growth in key markets, including China, where Amyris is poised to take advantage of a significant market opportunity for health, nutritional and personal care products that support better health for a growing population.”
“We are thankful for the support of these and other key investors that have enabled Amyris to become the fastest growing Industrial Biotechnology company with a product sales growth rate that continues to double year over year,” said John Melo, Amyris President & CEO. “With the completion of this second tranche, we anticipate that we are now fully capitalized to continue our product sales growth rate while at the same time we remain focused on improving our margins for the long term sustainability of our company.”
Following the close of this tranche, Vivo Capital will be granted an Amyris board seat and DSM gains an additional board seat. Terms of the private placement and related agreements are more fully disclosed in the Form 8-K filed today with the Securities and Exchange Commission, available free of charge at sec.gov.
On the ratings front, Amyris has been the subject of a number of recent research reports. In a report issued on June 7, H.C. Wainwright analyst Amit Dayal reiterated a Buy rating on AMRS, with a price target of $15.00, which implies an upside of 282% from current levels. On May 8, Cowen’s Jeff Osborne reiterated a Hold rating on the stock and has a price target of $1.00.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Amit Dayal and Jeff Osborne have a yearly average loss of 12.0% and 2.5% respectively. Dayal has a success rate of 29% and is ranked #4489 out of 4625 analysts, while Osborne has a success rate of 48% and is ranked #4128.
Amyris, Inc. engages in the research, development, manufacture, and sale of fuels and farnesene-derived products. Its products include cosmetics, flavors and fragrances, performance materials, diesel, jet fuel, and lubricants. It operates through the following geographical segments: United States, Brazil, Europe, and Asia.