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Amyris Inc. (NASDAQ: AMRS) shares jumped on Tuesday after the firm announced a new development, licensing and commercialization agreement with a confidential partner. Overall, this partnership is valued at up to $255 million (not including significant royalties once the products are commercialized).

Under the terms of the agreement, the $255 million in payments include an upfront payment and the remainder are linked to milestones that are expected over the next 12 to 36 months following the signing of a definitive final agreement.

In addition to lab-based milestone payments, this agreement also provides for significant milestone payments for commercially scaling each product.

A final definitive agreement is expected by the end of March, with development to begin immediately and commercialization of products expected within the next 18 to 24 months assuming appropriate regulatory approvals.

John Melo, Amyris president and CEO, commented:

We are pleased to have been recognized by a well-capitalized partner as the company best suited to leverage fermentation-based technology in the production of the best quality and lowest cost and sustainably-produced cannabinoids. The dollar value of this agreement and our roster of partners who are leaders in global markets combines to be a strong endorsement of our technology platform and ability to bring No Compromise, sustainably-produced products to market. We share the mission of our partners to become the leader in sustainably-sourced CBD products in the near term as we focus on enabling the global beverage and skin care markets, including our own brands, to support the health and wellness of people and our planet.

Shares of Amyris were last seen up about 34% at $4.25, with a 52-week range of $2.64 to $9.29. The stock has a consensus analyst price target of $9.50.

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