Best stock to invest in – Amryris: Zombie With Attitude | Alternative Energy Stocks

Best stock to invest in

Jim Lane

Zombies with attitude. New partnerships for making magic
molecules and exploitin’ the heck out of ’em.

These days, nothing in Hollywood beats a great zombie movie, more
than 50 have been released in recent years. Zombies rise from the
dead, and change everything around them. It’s not always pretty,
or predictable, but they’re a disruptive force.

Well, Amyris (AMRS)
is proving to be a zombie story these days — starting with being
labeled a “zombie company” by The Motley Fool. TMF


Amyris was a pioneering industrial
biotech that went from darling of the field to a company now
trading well below $1 per share thanks to a lack of market
focus, a suffocating debt load, and management hubris. It’s
likely on its way to bankruptcy or a much worse fate: becoming a
zombie company that’s impossible to resurrect yet refuses to
die. It also serves as a textbook case of the first-mover

Like a clip out of Thriller or Abraham Lincoln vs
, the zombies appear to be awakening. In the past 24
hours, two signature announces put Amyris well outside of what
would normally be considered the industrial biotech Zombieland.

The Givaudan deal

First, Amyris announced a collaboration with Givaudan (SIX:GIVN),
a leading global flavors and fragrances company. The two companies
have been engaged in the research and development of proprietary
fragrance ingredients for several years, and the significantly
expanded partnership reinforces the diversity and value of
Amyris’s R&D platform and manufacturing capabilities to
customers demanding high performance, cultured ingredients.

During the multiyear collaboration, Amyris will use its strain
engineering platform to design cosmetic active targets, and scale
them up for global commercialization at Amyris’s manufacturing
facility in Brotas, Brazil. The companies anticipate the launch of
the target products in the coming years will demonstrate
significant performance, cost and sustainability advantages over
existing ingredients.

More about Givaudan

The “global leader in flavors and fragrances”, its cosmetic
portfolio comes under the Fragrances Division and earlier this
spring was re-branded as Active Beauty. That’s where the
Amyris-Givaudan partnership is focused.

The company explained it this way recently:

“Following the acquisition of
French bio-sourced active cosmetic ingredients company Soliance
in 2014 and science-based cosmetic ingredients firm Induchem in
2015, Givaudan now offers customers and consumers around the
world a range of innovative products and technology under one
single identity, Active Beauty. Establishing one unified
identity is a key step towards our 2020 ambition to make
Givaudan a significant player in the fast-growing active
cosmetics business. Our customers remain at the heart of what we
do and the new identity will enhance the proximity of our
business relationship with customers and consumers alike.”

Key to all this? Well, it’s cosmetics, so there’s marketing to be
done. But Maurizio Volpi, President of Givaudan’s Fragrance
Division pointed to a “a strong R&D…platform to drive future
development and innovation in the active cosmetics space.”

That’s where Amyris check in. Already Givaudan has a string of
antioxidants, moisturizers, cooling agents, wrinkle reducers and
skin firmers.

The Gingko Partnership

Ginkgo Bioworks, the organism company, announced
a new partnership with Amyris, the industrial bioscience company.
The partnership will enable the companies to develop products more
efficiently, achieve scale, and accelerate time to market.

As part of the deal, Ginkgo Bioworks will expand Amyris’ strain
engineering capability via access to its world-class foundry;
Amyris will be responsible for bringing products to scale.
Together, the two companies have a portfolio of more than 70
products under contract for delivery to the world’s leading brands
across industrial, health and personal care markets.

Amyris has the leading track record in the industry of scaling
engineered organisms and delivering breakthrough products to its
customers. The company’s fermentation facility in Brazil is highly
advantageous for the production of cultured ingredients such as
flavors, fragrances, nutritional ingredients and sweeteners.
Together, the two companies expect to deliver more than 20 new
products over the next three years.

Ginkgo is currently building Bioworks2, a next-generation
automated foundry where Ginkgo’s organism engineers can develop
new designs at massive scale. The 25,000 square-foot automated
facility is used to build and test prototypes of engineered
microbes. It is the company’s second, representing a technology
leap from Bioworks1, which opened in early 2015.

The bottom line

Zombie company? As The Zombies themselves put it in their
anthemic 1964 hit, “Please don’t bother trying to find her, She’s
not there.” Amyris struggled, but look at the deal flow. And the
company continues to guide that it will reach revenues of $90
million -$105 million in 2016. And, a planned sale of “ non-core
assets expected to generate approximately $40 million-$60 million
in net proceeds.” We’ll have to see what those non-core assets
exactly are.

$100M in revenues — that would be a milestone indeed. As The

Zombies put it in 1968, “Now we’re there and we’ve
only just begun /This will be our year / took a long time to

Reaction from the stakeholders

And, there are some ‘pleased and delighteds’ to share from the

“We are very pleased with our ongoing partnership with Amyris. As
our company continues to look for innovative and sustainable
solutions to availability and cost challenges, we are expanding
the relationship to apply Amyris’s technology to a whole new
field,” said Maurizio Volpi, President of Givaudan’s Fragrance

“Ginkgo and Amyris working together sets the gold standard for
the industrial biotechnology industry,” said Jason Kelly, CEO of
Ginkgo Bioworks. “Each company was seeing more customer demand for
partnerships than we could handle individually. By sharing our
assets and experience we can offer more customers access to the
industry-leading technology platform.”

“We are excited to be working with Givaudan to solve supply
challenges and deliver sustainable innovation in cosmetic actives.
We are very pleased with the Givaudan commitment to innovation and
its leadership in delivering breakthrough advancements in Active
Cosmetics,” said John Melo, Amyris President & Chief Executive
Officer. ” He added with respect to Ginkgo, ““Our combined
companies have the leading product and customer portfolio and we
realized a need to find a faster and more predictable approach to
deliver products to these customers and markets,” said John Melo,
CEO of Amyris. “Amyris has successfully commercialized five
products from highly engineered molecules, disrupting markets from
skin care, fragrances, to industrial lubricants, tires and jet
fuel. The flood of new products in the coming years will prove
that industrial biotechnology’s time has arrived.”

Jim Lane is editor and publisher  of Biofuels Digest where 
this article was originally published
. Biofuels Digest is the most widely
read  Biofuels daily read by 14,000+ organizations.

Subscribe here

– Best stock to invest in

Start trading now on the best platform on the market.

Source link