Amyris files for bankruptcy

I hate to hear this type of news, but Amyris is one of the few remaining longest-running start-up companies I’ve covered since my ICIS days (around 2005). While artificial intelligence and digitalization have now come a long way, the field of synthetic biology remains difficult to commercialize, more so if a start-up is competing with traditional chemical companies.

While I only focus on the chemical-based R&D/commercialization activities that Amyris once in a while announces, the company has pivoted its isoprenoid molecule to so many applications (pharma, food ingredients, nutraceuticals, chemical, rubber material, biofuel, cosmetics and personal care, cannabinoids..), which probably spread the company’s resources quite thin. Some technical experts (which I am not) also noted that the isoprenoid pathway was really difficult to develop.

According to their press release, Amyris has moved forward with its Chapter 11 filing in the US Bankruptcy Court in Delaware. The filing aims to improve its cost structure, capital structure, and liquidity position while streamlining its portfolio.

Amyris has secured a commitment from an entity affiliated with existing lender Foris Ventures for $190 million of debtor-in-possession (“DIP”) financing to support continued day-to-day operations as Amyris works with its key stakeholders to negotiate a consensual go-forward plan centered on Amyris’ core capabilities.

In tandem, Amyris is planning to sell its consumer brands (e.g. Biossance) with a view to having these brands continue to leverage Amyris’ technology while under new ownership. Amyris will continue to operate these brands, including through retail partners and the brands’ e-commerce platforms, while the sale process progresses.

Amyris’s affiliated entities listed in the bankruptcy filing include AB Technologies LLC, Amyris Clean Beauty, Inc.,  Amyris Fuels LLC, Amyris-Olika, LLC, Aprinnova LLC, Onda Beauty Inc. and Upland LLC. Early this year, Givaudan already acquired Amyris’ cosmetics ingredients portfolio. Personally, I tried their Biossance face moisturizing products, and they are good, but the price point has hindered me from becoming a long-time customer. From what I heard (I’m a fan of the Shark Tank show), the skincare and personal care industries are such cutthroat markets, especially if you don’t have the backing of big brands.

The bankruptcy news came following the departure of long-time Amyris president and CEO John Melo. The company also mentioned during that time that Amyris is looking to restructure and probably file for bankruptcy. Amyris has a long list of partners and collaborators in the chemical industry, and I’m sure its IP portfolio is very good after years of honing its isoprenoid pathway expertise. Hopefully, the company will come out of bankruptcy with a leaner and more-focused area of commercialization and continued R&D.