Amyris Inc (AMRS) Announces Second Product Development and Production Agreement with DSM for Vitamin A
Amyris Inc (NASDAQ:AMRS) announced that it has entered into a product development and production agreement for Vitamin A with Koninklijke DSM N.V. (Royal DSM), the global science-based company active in health, nutrition and materials. This marks the second such agreement between the two parties.
DSM is partnering with Amyris to fund the development of the technology to produce Vitamin A on a cost-advantaged basis utilizing Amyris’s and DSM’s capabilities. Once scaled, DSM will take the product to market utilizing its global channel and market access for animal and human nutrition and health. Amyris will develop, scale and produce a key ingredient for Vitamin A to supply exclusively to DSM.
“We are pleased to announce our second major product development and production agreement with DSM that we expect will end up being one of several going forward. This agreement is consistent with our collaboration business model and includes payment for development and value share on product production and delivery,” said John Melo, Amyris President & CEO. “Our partnership with DSM is a key example of our disruptive business model that leverages Amyris technology to achieve cost-advantaged product innovation with a successful global partner that can rapidly scale sales. The results are expected to drive robust product sales growth for Amyris while continuing to support our partner’s competitive position.”
Shares of Amyris are up nearly 3% to $3.31 in pre-market trading Tuesday. AMRS has a 1-year high of $18.15 and a 1-year low of $1.86. The stock’s 50-day moving average is $2.80 and its 200-day moving average is $1.99.
On the ratings front, AMRS has been the subject of a number of recent research reports. In a report issued on September 18, Cowen analyst Jeff Osborne reiterated a Hold rating on AMRS, with a price target of $3.50, which represents a potential upside of 9% from where the stock is currently trading. On August 11, H.C. Wainwright’s Amit Dayal reiterated a Buy rating on the stock and has a price target of $15.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Jeff Osborne and Amit Dayal have a yearly average return of 1.8% and a loss of -1.9% respectively. Osborne has a success rate of 47% and is ranked #1759 out of 4660 analysts, while Dayal has a success rate of 43% and is ranked #3882.