UC Berkeley-spawned Amyris shares collapse


The decline and fall of Amyris share prices, via NASDAQ.

The decline and fall of Amyris share prices, via NASDAQ.

Amyris Inc. [previously], the company started by UC Berkeley “bioengineer” Jay Keasling to create affordable fuels from using technology created to genetically engineer yeast to produce the most widely used antimalarial drug, hit an all-time low of forty-one cents per share today, down from the post-IPO high of $33.85.

Part of the reason is contained in a 20 June filing lodged by the company with the Security and Exchange Commission:

On June 14, 2016, Amyris, Inc. (the “Company”) received a letter from The NASDAQ Stock Market LLC (“NASDAQ”) notifying the Company that it is not in compliance with the requirement of NASDAQ Listing Rule 5450(a)(1) for continued listing on the NASDAQ Global Select Market as a result of the closing bid price of the Company’s common stock being below $1.00 for 30 consecutive business days. This notification has no effect on the listing of the Company’s common stock at this time.

In accordance with NASDAQ Listing Rule 5810(c)(3)(A), the Company has 180 calendar days, or until December 12, 2016, to regain compliance with NASDAQ Listing Rule 5450(a)(1). To regain compliance, the closing bid price of the Company’s common stock must be at least $1.00 for a minimum of 10 consecutive business. If the Company does not regain compliance during such period, it may be eligible for an additional compliance period of 180 calendar days, provided that the Company meets NASDAQ’s continued listing requirement for market value of publicly held shares and all other initial listing standards for the NASDAQ Capital Market, other than the minimum bid price requirement, and provides written notice to NASDAQ of its intention to cure the deficiency during the second compliance period. If the Company does not regain compliance during the initial compliance period and is not eligible for an additional compliance period, NASDAQ will provide notice that the Company’s common stock will be subject to delisting from the NASDAQ Capital Market. In that event, the Company may appeal such determination to a hearings panel.

The Company is currently evaluating its available options to resolve the deficiency and regain compliance with NASDAQ Listing Rule 5450(a)(1).

In other words, Amyris is now officially what’s called a “penny stock,” and stock valued at under a buck and restricted to trade on minor markets.

And while Amyris has promised and failed to deliver on its cheap fuel promises and shifted its development aims to tweaking its yeast to produce genetically engineered cosmetic chemicals, Bill Gates, an original investor from the company’s earliest days, gave Amyris $5 million in April to help cut costs on production of the drug for which he originally bankrolled Keasling and his students.

The drug is produced in Europe and Amyris realizes no profits from its sale.

But now comes more bad news and a possible reason for the continuing decline of the price of Amyris shares.

From the University of British Columbia:

The rapid decline in effectiveness of a widely used anti-malaria drug treatment on the Thailand-Myanmar border is linked to the increasing prevalence of specific mutations in the malaria parasite itself, according to a paper published in The Clinical infectious Disease Journal.

The mutations in specific regions of the parasite’s kelch gene – which are genetic markers of artemisinin resistance – were the decisive factor, the authors say, in the selection of parasites that are also resistant to mefloquine. This resulted in growing failure of the widely-used anti-malaria drug combination of mefloquine and artesunate, the first artemisinin combination therapy (ACT) on the Thai-Myanmar border.

Led by Dr. Aung Pyae Phyo of SMRU, the study used data from a 10-year study of 1,005 patients with uncomplicated P. falciparum malaria at Shoklo Malaria Research Unit (SMRU) clinics on the Thai-Myanmar border in northwest Thailand.

“This study demonstrates for the first time that artemisinin resistance leads to failure of the artemisinin partner drug, in this case, mefloquine. This means that the first line artemisinin combination therapy (ACT) introduced here in 1994 has finally fallen to resistance,” says François Nosten, Director of SMRU.

Resistance to artemisinin combination therapy drugs (ACTs) – the frontline treatments against malaria infection – poses a serious threat to the global control and eradication of malaria. If drug resistance spreads from Asia to the African sub-continent, or emerges in Africa independently, as has happened several times before, millions of lives, most of them children under the age of 5 in Africa, will be at risk.

The study shows that, contrary to the view sometimes expressed that resistance to artemisinin is not a direct threat, it is in fact responsible for the rapid demise of the partner drug and the failure of the drug combination, resulting in patients not being cured and further transmission of the malaria parasite.

“The evidence is clear: Artemisinin resistance leads to partner drug resistance and thereby the failure of artemisinin combination treatments,” said Oxford Professor Nicholas White, Chairman of the Mahidol Oxford Tropical Medicine Research Unit (MORU) and chair of the Worldwide Antimalarial Resistance Network (WWARN).

From the paper, a graph describes the rise of artemisinin-resistant genetic variants.

From the paper, a graph describes the rise of artemisinin-resistant genetic variants.

Given the very limited number of effective drugs, it is urgent to eliminate P. falciparum from the areas where it has developed resistance to the artemisinins, said Prof. White: “The spread of artemisinin resistant Plasmodium falciparum is perhaps the greatest threat to our current hopes of eliminating malaria from the world.”

A unit of the Bangkok-based MORU, SMRU is based in the refugee camps and migrant communities along the Thai-Myanmar border. Led by researchers based at SMRU (Thailand), the study was funded with the support of the Wellcome Trust (UK).

Reference:

Pyae Phyo A et al, Declining efficacy of artemisinin combination therapy against P. falciparum malaria on the Thai-Myanmar border (2003-2013): the role of parasite genetic factors [open access], Clinical Infectious Diseases, published online 16 June 2016.

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