Sustainable ingredients being developed by Emeryville, Calif.-based biotech Amyris Inc. have piqued the interest of big players in the personal-care and fragrance industries.

Amyris’ technology platform is based on genetically modified yeast microbes that convert sugar into farnesene molecules, or hydrocarbon compounds, which can then be used as renewable chemicals and fuels.

The firm is producing farnesene molecule Biofene at commercial levels, which can be used as a “building block” for emollient squalane, offering manufacturers who use the "high-value ingredient" a sustainable alternative.

According to the Personal Care Products Council’s CosmeticsInfo.org, squalane is made by hydrogenating squalene, which is found in large quantities in shark liver oil and in smaller amounts in olive oil, wheat germ oil, rice bran oil and other foodstuffs.

Amyris Inc.’s Sustainable Technology

Farnesene molecule Biofene is the first product Amyris is producing at commercial levels.
Biofene is a “building block” for Amyris’ squalane, expected to be a “drop-in” replacement for squalane derived from shark or vegetable oil.
Used as an emollient in skin-care products, Amyris squalane will roll out to the market as early as 2011.

The Environmental Working Group’s Skin Deep database recognizes more than 1,200 products – including moisturizers, cleansers, serums, makeup and hair-care items – that incorporate a form of squalane.

Most cosmetics firms have reportedly stopped using shark-derived squalane. Amyris notes that "shark hunting raises environmental and other concerns."

Vegetable oil squalane, on the other hand, is "subject to availability issues and price variability due to its interrelationship with the consumption of the edible oil," according to Amyris. The firm also claims that squalane derived from vegetable oil is a "lower-quality" ingredient with “performance issues."

Amyris holds that because its squalane "is made by our building block, Biofene, we will be able to offer our customers a sustainably produced product that is designed to provide comparable high levels of purity found in shark-oil derived squalane without the performance issues associated with squalane derived from vegetable oils."

Procter & Gamble announced in June a collaboration with Amyris to leverage the firm's genetically engineered yeast to develop personal-care ingredients (Also see "P&G Teams With Firm To Turn Microbes Into Functional Ingredient "Factories"" - HBW Insight, 5 July, 2010.).

During a Nov. 4 conference call with investors, Amyris CEO John Melo said the Cincinnati, Ohio-based consumer goods giant has been testing farnesene as an ingredient in household products and is in the process of consumer testing for use in two other product categories.

P&G also has expressed an interest in buying squalane from Amyris, according to Melo.

Furthermore, Amyris has shipped squalane samples “to one of the largest cosmetic companies in the world, which is now conducting product evaluation," the exec said. He acknowledged the company is based in France, possibly alluding to cosmetics leader L’Oreal.

“We expect [the interested party] to become a good-sized buyer of squalane in 2011,” he said.

Amyris, Soliance Offer No Compromise

Meanwhile, Amyris is “ramping up” commercialization of squalane with French cosmetic ingredient developer Soliance under a partnership announced in June.

Soliance completed the first large-scale production run of Amyris’ squalane at its facilities during the third quarter, according to Melo.

At this point, the exec said, the companies have completed formulation testing and “are making very good progress with customers,” selling the squalane under the No Compromise brand name.

Amyris has two production facilities slated to produce farnesene in 2011 – one in Piracicaba, Brazil, and the other with Tate & Lyle in Decatur, Ill.

The two facilities will produce 5 million to 7 million liters of farnesene in 2011, Amyris says, noting they may bring a third facility on board soon, which could increase capacity to 6 million to 9 million liters.

Flavors & Fragrances

Firmenich is the most recent firm to partner with Amyris. Under the agreement, the Swiss fragrance and flavor producer will fund development of a sustainable, cost-effective and reliable ingredient for the fragrance and flavor market, the parties announced Nov. 10.

Amyris will manufacture and supply the ingredient to Firmenich, which will handle marketing and distribution. Both companies will share in the “economic value” that comes from the partnership, they say.

The first products to emerge from the collaboration “will address high-value fragrance segments, with pricing well over our target average selling price range,” Melo said.

To date Amyris has been focused on Biofene, but the deal with Firmenich expands the firm’s business “and demonstrates the flexibility of Amyris’s platform technology,” according to the firm.

It also adds “higher-value” ingredients to Amyris’ portfolio. The fragrance and flavors sector “offers a significant opportunity for growth in our renewable chemicals business,” the CEO remarked.

Sustainable fragrance ingredients produced via Amyris’ technology platform could also be cost-effective for customers. Many natural fragrance ingredients are expensive “because there is limited supply and the synthetic alternatives require complex chemical conversions,” Amyris says on its website.

Firmenich will have worldwide rights to commercialize the ingredient for the fragrance and flavor markets, and it also retains the option to collaborate again with Amyris in the development of a second ingredient.

“Amyris’s technology platform offers great potential to be a key source for sustainable and high-quality ingredients used in the fragrance and flavor market,” Firmenich CEO Patrick Firmenich states.

Amyris Attracts Investors

Amyris (NASDAQ: AMRS) held an initial public offering Sept. 27, which generated proceeds of $90.7 million for the firm. Shares started at $16 and have since hovered in the mid-$19 range.

Taking the company public “has been well received by both current and prospective customers and partners,” Melo says in a Nov. 4 release.

The firm’s revenue in the third fiscal quarter reached $24.2 million, up from $12.7 million, in the prior quarter due to sales expansion from fuel subsidiary Amyris Fuels LLC.

Amyris posted a loss of $62.1 million during the reporting period based on generally accepted accounting principles, and a loss of $17.9 million on a non-GAAP basis.

The losses were attributed to increased administrative costs and R&D spending, as well as stock conversions.

According to Melo, Amyris is “positioned today to successfully build [its] business” by focusing on six core markets – consumer goods, cosmetics, polymers and plastic additives, lubricants, fuels, and flavors and fragrances.

“We have partnered in each of these verticals with market leaders and have that product and market opportunity to build $1 billion revenue-generating businesses in each of these verticals,” the CEO said.

By Lauren Nardella

Amyris Looks To Personal Care As Growth Engine For Renewable Ingredients

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