Amyris Inc. (NASDAQ: AMRS) shares jumped early on Monday on news that the firm had received its first payment from its cannabinoid partner. Specifically, Amyris received $10 million from Lavvan for having successfully delivered on its first major collaboration milestone announced back in March.
With this successful collaboration with Lavvan to commercialize cannabinoid ingredients, Amyris is seeking to prove its ability to disrupt large markets, as well as its cost efficiently and sustainably.
The company expects to bring the first fermentation-derived cannabinoid products to market next year with better purity and at a significantly reduced cost compared to similar products and ingredients.
John Melo, president and CEO of Amyris, commented:
We are very pleased with the continued strong execution of our business strategy and the performance of our technology platform. We are also encouraged by the progress we’ve made thus far working with our valued partner, Lavvan, and our collaborative relationship with them on this project, which will be another cornerstone of our growth. Our brands and supply business are having a great year and our technology pipeline is delivering on our partners’ expectations.
Shares of Amyris closed Friday at $4.24, in a 52-week range of $1.87 to $9.29. The consensus price target is $11.00. Following the announcement, the stock was up about 8.5% at $4.60 in early trading indications Monday.