Amyris (NASDAQ:AMRS) Leveraging Cannabis Industry Market Opportunities Through The Sugarcane Squalane CBD delivery Method

There are several cannabis stocks out there nowadays and each touts to have better quality cannabis products compared to rivals. However, health and wellness biotech company Amyris (NASDAQ:AMRS) appears to be better positioned to leverage opportunities over rivals.

Amyris signed $300 million agreement with Lavvan

This small-cap biotech company began its journey into the cannabis sector in March last year. The company entered an agreement with Lavvan of around $300 million to collaborate and produce cannabinoid products for commercialization. According to the agreement Amyris was to focus on the process of research and development.

Amyris posted revenue of around $18.3 million from the deal last year representing around 12% of its total sales in 2019. The agreement is an incredible growth opportunity for its investors. This is because of the profit-sharing component in the agreement that will see the company collect payments once they commercialize CBD products for close to 20 years.

Amyris’ CBD delivery method more effective

Despite this attractive agreement with Lavvan, the company could also leverage several other market opportunities. In March the company released the data from the study that Cosmos Technical Centre conducted. The results indicated that the company’s CBD delivery method via sugarcane squalane is effective compared to hemp seed oil as well as other delivery methods. For instance, its Neossance Squalane product delivered around 10 times to 40 times more cannabidiol to the skin at a higher level relative to other oils.

This quick and effective way of delivering CBD holds massive potential for the company in the CBD industry. Amyris has made a patent application to protect the CBD delivery methods through squalane. The company is upbeat that it will be the first company to offer and effective CBD delivery tech for commercialization. A patent for this method could help Amyris hit milestones agreed with Lavvan and also unlock more opportunities in the cannabis industry.

About Travis Garlick 1791 Articles
Been writing about and trading stocks since 2013. Manage a group of micro-cap investors on Facebook with over 15,000 members. Turned $8,500 into 185k the first year I started trading stocks and haven't looked back.