Amyris (AMRS) reported that it has signed a final definitive agreement for cannabinoid development, licensing and commercialization containing $300 million of R&D and milestone payments plus long-term royalties. Amyris stock jumped about 25% during the extended trading hours. However, after the company announced Q4 loss, the stock pared the early gains and traded in the negative territory.
Amyris posted a loss of $56.1 million, or $0.76 per basic share for Q4 2018 compared to a net income of $36.2 million or $0.76 per basic share for Q4 2017. Revenue was $19.4 million, compared with $80.6 million in the prior year quarter. The prior year quarter revenue reflected the recognition of $57.3 million of revenue from the multi-element license and value share (royalty) agreement with DSM during the fourth quarter of 2017.
GAAP net loss attributable to Amyris common stockholders for the recently ended quarter was $53.2 million, or $1.03 per diluted share, compared with a GAAP net loss attributable to Amyris common stockholders of $2.9 million, or $0.06 diluted share in the comparable period a year ago.
The agreement between Amyris and LAVVAN, Inc., a newly-formed company backed by leaders across the pharmaceutical, cannabis, and financial sectors, intends to bring the first fermentation-derived cannabinoid products to market.
“Our results for the quarter and year are below expectations,” said CEO John Melo. “The negative results for the quarter and full year reflect the inability to recognize revenue for a $50 million multi-party Vitamin E deal in China during the fourth quarter. Our financial results for the fourth quarter were also impacted by a 30-day delay to our manufacturing scale-up and production of our natural sweetener product,” he added.
The company said that the sweetener issues were quickly resolved in the first quarter of 2019. Melo added that Amyris has undertaken a thorough review of its business plan for 2019 and will take a more conservative approach in assessing likely revenue opportunities.
Amyris stock ended today’s trading session at $3.81, down 3.05%.