In California, Amyris has signed a long-term agreement with China’s Xinfu for a significant initial payment and a long-term minimum annual share of an existing nutritional product royalty arrangement. This deal enables Amyris to monetize a portion of the long-term royalty opportunity for this product upfront to better manage volatility in a high-margin revenue stream while maintaining access to future upside in the royalty payment structure.
“We now have two programs under development with Xinfu that are performing very well and have now partnered on an additional nutritional product royalty arrangement, resulting in one of the best performing nutritional product portfolios in the industry,” says John Melo, Amyris President and CEO. “This agreement also provides Amyris the opportunity for more rapid value creation in nutritional products and includes a material upfront payment equal to the $50 million expectation set by us during our third quarter earnings call and an additional long-term annual upside based on the market performance of this nutritional product.”