Amyris Inc (AMRSQ)

[timmuggs]

New info on Amyris:

This Seeking Alpha article basically just links to a Youtube interview with Randy Baron, an analyst in the biotech field. It's really good. He talks a lot about AMRS, their product segments, their strategy, and their CEO. Well worth a listen. AMRS is generating revenue from cosmetics, sugar substitutes, and cannabinoids, raw materials are all made in house via biotech.

https://seekingalpha.com/article/4436940-amyris-how-lead-in-synthetic-biology-could-brew-up-big-profits


This 2nd piece talks about an acquisition (Olika) that will add value to another recent acquisition, Pippette, which specializes in baby care skin products.
https://seekingalpha.com/news/3706424-amyris-expands-with-acquisition-of-olika-consumer-brand

What's the business rationale for AMRS to acquire these small brands? I'm guessing there are two/three:

- They can use their own squalane products in them, which makes them richer while reducing costs, as AMRS makes the squalene.

- Like other companies in consumer goods space, sales costs are reduced the more similar products you have to put on the shelf, or in the website.

- When these products grow, a company like P&G starts looking at acquiring. AMRS is structure so they could spin off products & cash in. I'm thinking Biossance, Pippette, Olika, in skin care, and Purecane as a sugar substitute perhaps attractive to companies in that sector. Not to mention their essences and flavors.

As an example, Biossance, a business unit of AMRS, is growing very rapidly in high end skincare based on their squalene. They can afford to use a much richer dose than the high end brands, because they source it from an acre of sugar cane they grow in Brazil, rather than killing 2 million sharks a year, the estimated supply chain for high end cosmetics.
Have a look: https://biossance.com

BTW, AMRS is listed on IHub as in the biofuels segment. That's very old news. Fracking killed that market opportunity, which forced AMRS to focus on their skills in identifying specific molecules and then finding ways to grow them in commercial quantities. They have since expanded into CBD/CBG, squalene (a chemical derived from shark liver that they can make without killing sharks - used extensively in very high end cosmetics), identifying molecules that give specific tastes, flavors & aromas. AMRS is busy expanding businesses that take advantage of their basic skills from their roots as a biotech innovator.

I hope others on iHub will have a look at the new directions in AMRS.