Amyris Is Spending $1.29 to Generate Every $1 in Product Revenue
The field of synthetic biology keeps talking about changing the world, but the most valuable product created to date has been hype. Most companies in the broadening space are losing money. A worrisome number of those don't have a sustainable business model. While privately held start-ups can mask that with ever-larger venture capital rounds (for now), that advantage is not extended to Amyris (NASDAQ: AMRS).
The industrial biotech company reported 80% growth in product revenue during the third quarter of 2019 compared to the year-ago period, but the business is losing money on each dollar of product revenue hauled in. When coupled with a sharp increase in operating expenses and a cash balance of just $476,000, there's no question that Amyris exited September in a precarious position.
Here's what investors need to know about the latest operating results.
Source Fool.com
