Amyris, Inc. (NASDAQ:AMRS) announced that Sumitomo Rubber Industries has adopted liquid farnesene rubber (LFR) as a performance enhancing additive for use in the production of its latest Dunlop-branded Winter Maxx 02 tires. LFR is a liquid rubber developed by Kuraray using Amyris’s biologically derived Biofene® branded farnesene. The Winter Maxx 02 represents the brand’s best tire to date for on-ice and snow-braking performance and for durability. LFR’s breakthrough performance enhancement will be available across Dunlop’s entire Winter Maxx 02 portfolio of 91 sizes.
“We are excited to join with Kuraray in bringing LFR to the large global tire market and commercializing safer high-performance tires that utilize an additive from a sustainable resource,” said John Melo, President & CEO of Amyris. “This marks the first global tire brand to adopt our disruptive technology to deliver innovation. The better than expected results from this first launch are leading to significantly better early sales of LFR than we expected. We expect this commercial entry is just the start of anticipated adoption by other major brands across the world.”
The unique qualities of farnesene material, which is only available at commercial scale from Amyris, is propelling product innovation and rapidly growing demand from the company’s customers. This has helped support Amyris’s ability to post significant revenue growth for 2016 with expectations that product revenues will continue to significantly expand.
Amyris’s sugar cane-derived Biofene forms the basis for a wide range of products varying from specialty products such as cosmetics, perfumes, detergents and industrial lubricants, to transportation fuels such as diesel and jet fuel. As a tailor made pure hydrocarbon it provides numerous advantages when compared to petroleum-based oils and chemicals and is renewable, contributing to a sustainable future.
- A proprietary liquid rubber using farnesene manufactured from sugar cane using fermentation technology.
- A viscosity that is much lower compared with current liquid isoprene rubber making it easier for rubber product manufacturers to use. In addition, it maintains excellent flexibility, even at low temperatures.
- Its unique chemical structure reacts completely with solid rubber during processing, meaning that, unlike oil additives it stays bonded, keeping tires softer, longer. In tires, its ice grip performance is maintained over many years.
Shares of Amyris are currently trading at $0.471, down $0.001 or -0.19%. AMRS has a 1-year high of $1.43 and a 1-year low of $0.31. The stock’s 50-day moving average is $0.56 and its 200-day moving average is $0.67.
On the ratings front, H.C. Wainwright analyst Amit Dayal reiterated a Buy rating on AMRS, with a price target of $4, in a report issued on January 10. The current price target implies an upside of 751% from current levels. According to TipRanks.com, Dayal has a yearly average loss of 15.7%, a 33% success rate, and is ranked #4333 out of 4513 analysts.
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.