As part of the agreement Amyris will use its strain engineering technology to develop a microorganism that can produce a target molecule that's identified by BASF. After the initial development program, assuming it's a success, the companies expect to collaborate more on a strain development program. Amyris and BASF may also consider other joint research agreements.
"Through this new collaboration, Amyris will seek to develop strains capable of producing a relevant target molecule for BASF, which could help performance and competitiveness with the traditional sources for that molecule," Amyris president and CEO John Melo said in a press release. "Amyris's synthetic biology and strain engineering technology platform and BASF's capabilities and superior market leadership in the chemicals industry are complementary, and, I believe, our two companies can build on this initial effort to lead the way to innovative renewable chemicals produced through industrial biotechnology."
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TheStreet Ratings team rates AMYRIS INC as a Sell with a ratings score of D-. TheStreet Ratings Team has this to say about their recommendation:
"We rate AMYRIS INC (AMRS) a SELL. This is driven by a number of negative factors, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. Among the areas we feel are negative, one of the most important has been generally deteriorating net income."