Synthetic biotechnology company Amyris, Inc. (NASDAQ: AMRS) recently revealed that it has entered into an agreement to acquire menopause symptoms treatment company, MenoLabs, LLC. The financial terms of the deal have been kept under wraps.
Following the news, shares of the company jumped 10.1% on Monday. The stock, however, pared its gains slightly to close at $4.58 in the extended trading session.
With menopause symptoms affecting almost 25 million women each year, the market is a growing one and is expected to reach roughly $23 billion by 2028.
Taking this into account, Amyris’ impending acquisition of MenoLabs is line with the company’s strategy to strengthen its position in this space.
MenoLabs operates as a subscription-based service via its website. It also offers Subscribe & Save option through Amazon. Further, the company has plans to enhance its omnichannel presence by opening retail channels.
The CEO of Amyris, John Melo, said, “Our acquisition of the products and app that the MenoLabs team has built accelerates Amyris’ entry into the menopause market. We expect the combination of MenoLabs and the previously announced menopause brand with Naomi Watts to have the potential to deliver an estimated $30 million in revenue in their first year and expect significant growth potential in the years ahead. We continue to execute on our growth strategy diversifying our consumer offering in Clean Beauty, Health and Wellness end-markets, continuing the strong growth momentum from 2021 into the current quarter.”
The Wall Street community is cautiously optimistic about the stock with a Moderate Buy consensus rating based on 2 unanimous Buys. The average Amyris stock price target of $22.50 implies that the stock has upside potential of 390.20% from current levels. Shares have declined about 51.6% over the past year.
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