EverSweet is due to be launched in 2018 following the recent, much-awaited collaboration agreement with Cargill. Evolva Holding SA (SIX:EVE) is due to participate in the JV at the 30% level, and will also benefit from a new state-of-the-art bioprocessing facility for its other products. Our fair value is CHF0.81 per share and we believe the current share price offers a good entry point.
Spotlight on stevia
Now that a commercial agreement has been reached, the retrofit of the existing Cargill facility in Blair, Nebraska, can go ahead. The relatively small retrofit should ensure that EverSweet retains its first-mover advantage ahead of DSM’s launch of a fermentation-based stevia sweetener in late 2018.
While the risk of no agreement being reached between Cargill and Evolva has now disappeared, execution risks remain in terms of the retrofit and the new facility, both in financial (cost overruns) and operational terms (ramp-up may take longer than expected).
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