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Codexis Reports Fourth Quarter and Fiscal Year 2023 Financial Results

Anticipate 2024 Product Revenue Growth of at Least 10% vs. 2023 Excluding Enzyme Sales Related to PAXLOVID™

Recently Announced Debt Financing Reinforces Strong Financial Position with Projected Runway Through Expected Positive Cash-flow Around End of 2026

2024 to Focus on Securing Early Access Customers for ECO Synthesis™ Manufacturing Platform, Launch of Double-stranded RNA Ligase and Return to Growth for Pharmaceutical Manufacturing

REDWOOD CITY, Calif., Feb. 28, 2024 (GLOBE NEWSWIRE) — Codexis, Inc. (NASDAQ: CDXS), a leading enzyme engineering company, today announced financial results for the fourth quarter and fiscal year ended December 31, 2023, and provided a business update.

“We are thrilled with how we closed out 2023, and it’s quite clear that the strategic decisions we made last year are translating into real momentum as we kick off 2024. We recently executed asset purchases for our lead biotherapeutics asset, CDX-7108, with Nestlé Health Science, and our newly engineered dsDNA ligase with Roche. We also completed an out-licensing deal with Aldevron for our Codex® HiCap RNA Polymerase to extend our commercial reach into the growing mRNA-based therapeutics market. Finally, we have made impressive technical progress with our ECO Synthesis™ manufacturing platform since unveiling the technology last spring, culminating in the demonstration of gram-scale synthesis in December. In alignment with our prioritized strategy, we’re driving value from non-core assets by putting them in the hands of capable partners while we focus on unlocking the vast potential of the ECO Synthesis™ manufacturing platform and returning our foundational, revenue-generating Pharmaceutical Manufacturing business to double-digit growth this year,” said Stephen Dilly, MBBS, PhD, Chief Executive Officer of Codexis. “Our recently announced non-dilutive financing with Innovatus further strengthens our financial position by both buffering our cash runway and providing capital to fund our planned ECO Synthesis™ Innovation Lab to further test the ECO Synthesis™ manufacturing platform in a non-GMP setting. We look forward to several upcoming milestones, including an important technical update at the TIDES USA annual meeting in May, as well as initiating early access customer testing of the ECO Synthesis™ manufacturing platform and launching our dsRNA ligase program in the second half of this year.”

Fourth Quarter and Recent Business Highlights

Upcoming Milestones

Fiscal Year 2023 Financial Highlights

Fourth Quarter 2023 Financial Highlights

2024 Financial Guidance

Codexis is introducing financial guidance for 2024, as follows:

Conference Call and Webcast

Codexis will hold a conference call and webcast today beginning at 4:30 p.m. ET. A live webcast and slide presentation to accompany the conference call will be available on the Investors section of the Company website at www.codexis.com/investors. The conference call dial-in numbers are 877-705-2976 for domestic callers and 201- 689-8798 for international callers.

A telephone recording of the call will be available for 48 hours beginning approximately two hours after the completion of the call by dialing 877-660-6853 for domestic callers or 201-612-7415 for international callers. Please use the passcode 13726635 to access the recording. A webcast replay will be available on the Investors section of the Company website for 90 days, beginning approximately two hours after the completion of the call.

About Codexis

Codexis is a leading enzyme engineering company leveraging its proprietary CodeEvolver® technology platform to discover, develop and enhance novel, high-performance enzymes and other classes of proteins. Codexis enzymes solve for real-world challenges associated with small molecule pharmaceuticals manufacturing and nucleic acid synthesis. The Company is currently developing its proprietary ECO Synthesis™ manufacturing platform to enable the scaled manufacture of RNAi therapeutics through an enzymatic route. Codexis’ unique enzymes can drive improvements such as higher yields, reduced energy usage and waste generation, improved efficiency in manufacturing and greater sensitivity in genomic and diagnostic applications. For more information, visit https://www.codexis.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In some cases, you can identify forward-looking statements by terminology such as “aim,” “anticipate,” “assume,” “believe,” “contemplate,” “continue,” “could,” “design,” “due,” “estimate,” “expect,” “goal,” “intend,” “may,” “objective,” “plan,” “positioned,” “potential,” “predict,” “seek,” “should,” “suggest,” “target,” “on track,” “will,” “would” and other similar expressions that are predictions of or indicate future events and future trends, or the negative of these terms or other comparable terminology. To the extent that statements contained in this press release are not descriptions of historical facts, they are forward-looking statements reflecting the current beliefs and expectations of management, including but not limited to statements regarding anticipated milestones, including product launches, technical milestones, data releases and public announcements related thereto; whether Codexis will be able to, and the timing of it entering pre-commercial testing of its ECO Synthesis™ manufacturing platform with select customers in 2024, entering into initial commercial licensing opportunities in 2025 and the subsequent expected commercial launch in 2026; Codexis’ expectations regarding 2024 product revenues, R&D revenues and gross margin on product revenue, as well as its ability to fund planned operations through the end of 2026; Codexis’ ability to achieve positive cash flow around the end of 2026; Codexis’ expectation that its newly engineered double-stranded ecoRNA™ ligase program will be widely available for customers in 2024 and the potential of its ecoRNA™ ligase program to, among other things, improve traditional phosphoramidite chemistry and enable more efficient use of existing manufacturing infrastructure; Codexis’ expectation that its Pharmaceutical Manufacturing business will return to growth in 2024; the anticipated use of proceeds under Codexis’ new loan facility with Innovatus, including the planned ECO Synthesis™ Innovation Lab; the potential of the ECO Synthesis™ manufacturing platform, including its ability to be broadly utilized and to enable commercial-scale manufacture of RNAi therapeutics through an enzymatic route; and expectations regarding future demand for siRNA and dsRNA. You should not place undue reliance on these forward-looking statements because they involve known and unknown risks, uncertainties and other factors that are, in some cases, beyond Codexis’ control and that could materially affect actual results. Factors that could materially affect actual results include, among others: Codexis’ dependence on its licensees and collaborators; if any of its collaborators terminate their development programs under their respective license agreements with Codexis; Codexis may need additional capital in the future in order to expand its business; if Codexis is unable to successfully develop new technology such as its ECO Synthesis™ manufacturing platform and dsRNA; Codexis’ dependence on a limited number of products and customers, and potential adverse effects to Codexis’ business if its customers’ products are not received well in the markets; if Codexis is unable to develop and commercialize new products for its target markets; if competitors and potential competitors who have greater resources and experience than Codexis develop products and technologies that make Codexis’ products and technologies obsolete; Codexis’ ability to comply with debt covenants under its loan facility; if Codexis is unable to accurately forecast financial and operational performance; and market and economic conditions may negatively impact Codexis business, financial condition and share price. Additional information about factors that could materially affect actual results can be found in Codexis’ Annual Report on Form 10-K that will be filed with the Securities and Exchange Commission (SEC) on or about the date hereof, including under the caption “Risk Factors,” and in Codexis’ other periodic reports filed with the SEC. Codexis expressly disclaims any intent or obligation to update these forward-looking statements, except as required by law. Codexis’ results for the quarter and year ended December 31, 2023, are not necessarily indicative of our operating results for any future periods.

For More Information
Investor Contact
Carrie McKim
(336) 608-9706
ir@codexis.com

Media Contact
Lauren Musto
(650) 421-8205
media@codexis.com

Codexis, Inc.
Condensed Consolidated Statements of Operations
(unaudited)
(In Thousands, Except Per Share Amounts)

  Three Months Ended December 31,   Year Ended December 31,
    2023       2022       2023       2022  
Revenues:              
Product revenue $ 18,099     $ 23,300     $ 42,906     $ 116,676  
Research and development revenue   8,462       7,075       27,237       21,914  
Total revenues   26,561       30,375       70,143       138,590  
Costs and operating expenses:              
Cost of product revenue   2,861       8,456       12,809       38,033  
Research and development   11,234       19,689       58,885       80,099  
Selling, general and administrative   12,184       12,314       53,250       52,172  
Restructuring charges         3,167       3,284       3,167  
Asset impairment and other charges               9,984        
Total costs and operating expenses   26,279       43,626       138,212       173,471  
Loss from operations   282       (13,251 )     (68,069 )     (34,881 )
Interest income   906       823       4,172       1,441  
Other income (expense), net   (8,345 )     (26 )     (12,274 )     124  
Loss before income taxes   (7,157 )     (12,454 )     (76,171 )     (33,316 )
Provision for income taxes   35       151       69       276  
Net loss $ (7,192 )   $ (12,605 )   $ (76,240 )   $ (33,592 )
               
Net loss per share, basic and diluted $ (0.10 )   $ (0.19 )   $ (1.12 )   $ (0.51 )
Weighted average common stock shares used in computing net loss per share, basic and diluted   69,500       65,558       68,131       65,344  
                               

Codexis, Inc.
Condensed Consolidated Balance Sheets
(unaudited)
(In Thousands)

  December 31,
    2023       2022  
Assets      
Current assets:      
Cash and cash equivalents $ 65,116     $ 113,984  
Restricted cash, current   519       521  
Financial assets:      
Accounts receivable   10,036       31,904  
Contract assets   815       2,116  
Unbilled receivables   9,142       7,016  
Total financial assets   19,993       41,036  
     Less: allowances   (65 )     (163 )
Total financial assets, net   19,928       40,873  
Inventories   2,685       2,029  
Prepaid expenses and other current assets   5,218       5,487  
Total current assets   93,466       162,894  
Restricted cash   1,062       1,521  
Investment in non-marketable equity securities   9,700       20,510  
Right-of-use assets – Operating leases, net   13,137       39,263  
Property and equipment, net   15,487       22,614  
Goodwill   2,463       3,241  
Other non-current assets   1,246       350  
Total assets $ 136,561     $ 250,393  
Liabilities and Stockholders’ Equity      
Current liabilities:      
Accounts payable $ 5,947     $ 3,246  
Accrued compensation   11,246       11,453  
Other accrued liabilities   4,735       15,279  
Current portion of lease obligations – Operating leases   3,781       5,360  
Deferred revenue   10,121       13,728  
Total current liabilities   35,830       49,066  
Deferred revenue, net of current portion   640       16,881  
Long-term lease obligations – Operating leases   12,243       38,278  
Other long-term liabilities   1,233       1,371  
Total liabilities   49,946       105,596  
Stockholders’ equity:      
Common stock   7       6  
Additional paid-in capital   584,138       566,081  
Accumulated deficit   (497,530 )     (421,290 )
Total stockholders’ equity   86,615       144,797  
Total liabilities and stockholders’ equity $ 136,561     $ 250,393  
       

 


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