My special report this month on Tecnon OrbiChem’s Biomaterials newsletter is about the huge potential market for biotechnology-based cannabinoids (CBDs) not only for medical use but also in food and beverages, cosmetics and personal care, and even animal healthcare. The growing legislation of recreational cannabis in North America is spurring development collaboration announcements within the synthetic biotechnology community ranging from genetic engineering of cannabis’ active chemical ingredients to application and manufacture of these higher-value, small-volume ingredients.

Amyris announced this month that it has signed a final definitive agreement for cannabinoid development, licensing and commercialization with LAVVAN Inc., a newly-formed company reportedly by a group of industry leaders across the pharmaceutical, cannabis and financial sectors. The companies intend to bring the first fermentation-derived cannabinoid products to market. Amyris expects the deal to bring in around $300 million of R&D and milestone payments plus long-term royalties. Cannabinoids are said to be closely related to terpenes, where Amyris has substantial expertise. Amyris reportedly has already completed a significant portion of the development steps toward the cannabinoid pathways.

Amyris believes it can earn a significant portion of these milestone payments by the end of 2020, with $20-30 million anticipated in 2019 including a $10 million milestone payment that is expected to be recognized later this month.

LAVVAN will be responsible for the global manufacture and commercialization of the cannabinoids. Amyris’s fermentation-based cannabinoid products are expected to have benefits including consistent purity and dosage, improve the yield of economically difficult-to-source “rare” cannabinoids, 100% free from pesticides, non-GMO as well as sustainably-sourced products from natural raw materials that will use less water and land usage compared to growing cannabis plants.