Amyris targets break-even costs on lowest ASP products by year-end: analysts

In New York, Rob Stone and James Medvedeff of Cowen & Company wrote of Amyris’ Q3 results:

“Q3:13 26¢ cash loss was narrower than St. (30¢) on other income, but revenue was 48% light, GM negative, and Q4 product sales trimmed. Partner funding adds cash in Q4, but only half of 2014 is contracted….Cost of product sales was 2x revenue…In addition to squalane, niche diesel, and farnesene for base oils, shipments may commence for other categories such as flavor and fragrance, and polymers and plastics. However, Brotas is likely to take 2-3 years to fully ramp to 40MM liter annual capacity. AMRS targets $4.00 per liter cash cost by year-end, about breakeven on the lowest ASP products in the portfolio.”

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