DSM expands alliance with Amyris

HEERLEN, Netherlands—Royal DSM, a science-based company active in health, nutrition and materials, and Amyris Inc., an industrial bioscience company, enhanced their alliance through the sale of Amyris Brasil Ltda. to DSM and the establishment of a long-term manufacturing partnership for Amyris' high-volume products.

The consideration for Amyris Brasil, which owns and operates the Brotas 1 production facility, and the intellectual property related to farnesene is $58 million, plus an additional value share arrangement over a three-year period amounting to $37.5 million, an aggregate upfront consideration of $96 million, according to a DSM release.

In addition to the consideration upfront, there is potential for a future value share in line with Amyris' business model.

DSM will continue existing supply agreements to Amyris and other parties, and will also supply Amyris with specialty compounds until it realizes its Brotas 2 specialties production facility. Amyris is accelerating the construction of its second facility dedicated to specialty products while maintaining the manufacturing process development and business support capability located in Campinas, Brazil.

The transaction is expected to close in the coming months.

With the acquisition of the Brotas 1 facility, DSM adds a biotechnology-based production site in Brazil to its global network, with availability of raw materials including sugar cane, securing production capacity for its pipeline of sustainable and bio-based solutions.

The sale of the Brotas 1 facility, which was designed to produce high volumes of farnesene, together with the creation of a long-term production relationship for high-volume farnesene-based intermediates will enable Amyris to focus on developing bioscience technologies through a portfolio approach, as well as the production of specialty products.

In addition to building the specialty Brotas 2 plant, Amyris expects to complete its Sao Martinho plant to focus on sweeteners, John Melo, Amyris president and CEO, said in a statement. The combined actions will provide the manufacturing footprint to meet current demand through the next 3-5 years and manage within funding constraints.

The alliance between DSM and Amyris began in May 2017 with an equity investment by DSM in Amyris, and has since been expanded with several significant product development collaborations.