Amyris has signed a long-term agreement with Xinfu of China for a significant initial payment and a long-term minimum annual share of an existing nutritional product royalty arrangement. This agreement is said to enable 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 are very pleased with our relationship with Xinfu, which is an extension of existing strong relationships we have built within China over the last year,” said John Melo, Amyris President and CEO. “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. 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.”

After extensive discussions regarding the potential structure of this agreement we opted for a royalty rights partnership instead of a license agreement. We believe this structure better protects the future value of our technology for our shareholders and reduces any potential intellectual property associated risks in the future. We are pleased to have this completed and to have closed out a good year for Amyris wher we’ve executed well on most of our strategic initiatives. We are very excited about the performance of our product sales and the continued success and market leadership of our product and technology pipeline.”