Tristan R. Brown
Alternative energy, long/short equity, commodities, energy

Amyris Has Potential But Is Still Reliant On Outside Cash

Executive summary:

Renewable farnesene producer Amyris is on the verge of completing its shift to a diversified product portfolio following a major fall in its market capitalization. This shift has forced the company to rely less on the high-volume, low-value biofuel market for revenue growth and more on both niche specialty chemical markets and collaboration funding. While specialty chemical production represents an attractive future revenue source, the company will be forced to rely on continued collaborative funding to cover the majority of its operating expenses until its first commercial-scale farnesene facility completes its scale-up process. This unique form of revenue has a number of unique advantages and disadvantages that investors should be aware of.

Background

Amyris (NASDAQ:AMRS) is...

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