Amyris has executed a five year Biofene supply agreement with a global nutraceuticals company, which replaces an existing one-year purchase agreement, which was previously announced on January 4, 2016.
Under the new supply agreement, the customer has agreed to a larger Biofene purchase in 2016 with an expected revenue contribution of approximately US$9 million and to minimum annual purchase commitments in each of the remaining years of the agreement.
In addition, Amyris is entitled to a quarterly value-share arrangement on the sales of the customer’s product made from the purchased Biofene.
Amyris expects total revenue from the five-year agreement to be more than US$100 million.
The five-year term is projected to generate approximately $40 million of annual revenue, which Amyris expects will be renewed at that level in subsequent years.
