REDWOOD CITY, Calif., Nov. 02, 2023 (GLOBE NEWSWIRE) -- Codexis, Inc. (NASDAQ: CDXS), a leading enzyme engineering company, today announced financial results for the third quarter ended September 30, 2023, and provided a business update.
“Over the past quarter, we have continued to deliver on our plan to reduce our cash burn and put ourselves in an enviable position of financial strength. Our core Pharmaceutical Manufacturing business generates cash, we have a potentially game-changing technology in the ECO Synthesis™ platform, and, importantly, we have the financial resources to execute on our plans,” said Stephen Dilly, MBBS, PhD, President and Chief Executive Officer of Codexis. “With our current balance sheet, we now expect to fund our planned operations to positive cash flow, which is anticipated around the end of 2026. We look forward to continuing to execute on our key milestones, including the demonstration of gram-scale synthesis with our ECO Synthesis™ platform by the end of this year.”
Third Quarter and Recent Business Highlights
Formation of Strategic Advisory Board (SAB) and Key Opinion Leader (KOL) Event on December 8, 2023
Key Upcoming Milestones
Third Quarter 2023 Financial Highlights
2023 Financial Guidance
Codexis reiterated its 2023 financial guidance ranges originally issued on July 20, 2023, and reiterated on August 3, 2023, 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™ 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 whether Codexis will be able to, and the timing of it demonstrating gram-scale synthesis with its ECO Synthesis™ technology by the end of 2023, entering pre-commercial testing with select customers in 2024, entering into initial commercial licensing opportunities in 2025 and the subsequent expected commercial launch in 2026; Codexis’ expectations regarding 2023 total revenues, R&D revenues and gross margin on product revenue, as well as its ability to fund planned operations to the end of 2026; Codexis’ ability to achieve positive cash flow around the end of 2026; anticipated cumulative cash savings as a result of consolidating operations; the potential of the ECO Synthesis™ platform, including its ability to be broadly utilized, and it providing an opportunity for Codexis to efficiently capture meaningful market share; 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™ 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; 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 filed with the Securities and Exchange Commission (“SEC”) on February 27, 2023 and in Codexis’ Quarterly Report on Form 10-Q filed with the 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 ended September 30, 2023, are not necessarily indicative of our operating results for any future periods.
For More Information
Investor Contact
Carrie McKim
(336) 608-9706
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Media Contact
Lauren Musto
(781) 572-1147
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| Codexis, Inc. Condensed Consolidated Statements of Operations (Unaudited) (In Thousands, Except Per Share Amounts) | |||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||||||
| Revenues: | |||||||||||||||
| Product revenue | $ | 5,395 | $ | 28,042 | $ | 24,807 | $ | 93,376 | |||||||
| Research and development revenue | 3,882 | 6,428 | 18,775 | 14,839 | |||||||||||
| Total revenues | 9,277 | 34,470 | 43,582 | 108,215 | |||||||||||
| Costs and operating expenses: | |||||||||||||||
| Cost of product revenue | 2,249 | 9,786 | 9,947 | 29,577 | |||||||||||
| Research and development | 13,662 | 21,821 | 47,651 | 60,410 | |||||||||||
| Selling, general and administrative | 12,302 | 13,499 | 41,066 | 39,859 | |||||||||||
| Restructuring charges | 3,140 | — | 3,284 | — | |||||||||||
| Asset impairment and other charges | 9,984 | — | 9,984 | — | |||||||||||
| Total costs and operating expenses | 41,337 | 45,106 | 111,932 | 129,846 | |||||||||||
| Loss from operations | (32,060 | ) | (10,636 | ) | (68,350 | ) | (21,631 | ) | |||||||
| Interest income | 1,056 | 436 | 3,266 | 618 | |||||||||||
| Other income (expense), net | (3,895 | ) | 216 | (3,930 | ) | 150 | |||||||||
| Loss before income taxes | (34,899 | ) | (9,984 | ) | (69,014 | ) | (20,863 | ) | |||||||
| Provision for income taxes | 9 | 8 | 34 | 125 | |||||||||||
| Net loss | $ | (34,908 | ) | $ | (9,992 | ) | $ | (69,048 | ) | $ | (20,988 | ) | |||
| Net loss per share, basic and diluted | $ | (0.50 | ) | $ | (0.15 | ) | $ | (1.02 | ) | $ | (0.32 | ) | |||
| Weighted average common stock shares used in computing net loss per share, basic and diluted | 69,466 | 65,426 | 67,670 | 65,271 | |||||||||||
| Codexis, Inc. Condensed Consolidated Balance Sheets (Unaudited) (In Thousands) | |||||||
| September 30, 2023 | December 31, 2022 | ||||||
| Assets | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 74,577 | $ | 113,984 | |||
| Restricted cash, current | 991 | 521 | |||||
| Financial assets: | |||||||
| Accounts receivable | 11,629 | 31,904 | |||||
| Contract assets | 1,936 | 2,116 | |||||
| Unbilled receivables | 5,661 | 7,016 | |||||
| Total financial assets | 19,226 | 41,036 | |||||
| Less: allowances | (133 | ) | (163 | ) | |||
| Total financial assets, net | 19,093 | 40,873 | |||||
| Inventories | 2,305 | 2,029 | |||||
| Prepaid expenses and other current assets | 5,402 | 5,487 | |||||
| Assets held for sale | 646 | — | |||||
| Total current assets | 103,014 | 162,894 | |||||
| Restricted cash | 1,062 | 1,521 | |||||
| Investment in non-marketable equity securities | 18,013 | 20,510 | |||||
| Right-of-use assets - Operating leases, net | 13,895 | 39,263 | |||||
| Property and equipment, net | 15,282 | 22,614 | |||||
| Goodwill | 2,463 | 3,241 | |||||
| Other non-current assets | 726 | 350 | |||||
| Total assets | $ | 154,455 | $ | 250,393 | |||
| Liabilities and Stockholders' Equity | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 3,098 | $ | 3,246 | |||
| Accrued compensation | 10,521 | 11,453 | |||||
| Other accrued liabilities | 8,796 | 15,279 | |||||
| Current portion of lease obligations - Operating leases | 6,764 | 5,360 | |||||
| Deferred revenue | 9,236 | 13,728 | |||||
| Total current liabilities | 38,415 | 49,066 | |||||
| Deferred revenue, net of current portion | 10,100 | 16,881 | |||||
| Long-term lease obligations - Operating leases | 13,215 | 38,278 | |||||
| Other long-term liabilities | 1,219 | 1,371 | |||||
| Total liabilities | 62,949 | 105,596 | |||||
| Stockholders' equity: | |||||||
| Common stock | 6 | 6 | |||||
| Additional paid-in capital | 581,838 | 566,081 | |||||
| Accumulated deficit | (490,338 | ) | (421,290 | ) | |||
| Total stockholders' equity | 91,506 | 144,797 | |||||
| Total liabilities and stockholders' equity | $ | 154,455 | $ | 250,393 | |||
| Codexis, Inc. Segmented Information (Unaudited) (In Thousands) | ||||||||||||||||||||||
| Three Months Ended September 30, 2023 | Three Months Ended September 30, 2022 | |||||||||||||||||||||
| Performance Enzymes | Novel Biotherapeutics | Total | Performance Enzymes | Novel Biotherapeutics | Total | |||||||||||||||||
| Revenues: | ||||||||||||||||||||||
| Product revenue | $ | 5,395 | $ | — | $ | 5,395 | $ | 28,042 | $ | — | $ | 28,042 | ||||||||||
| Research and development revenue | 3,315 | 567 | 3,882 | 3,104 | 3,324 | 6,428 | ||||||||||||||||
| Total revenues | 8,710 | 567 | 9,277 | 31,146 | 3,324 | 34,470 | ||||||||||||||||
| Costs and operating expenses: | ||||||||||||||||||||||
| Cost of product revenue | 2,249 | — | 2,249 | 9,786 | — | 9,786 | ||||||||||||||||
| Research and development(1) | 8,146 | 4,377 | 12,523 | 6,782 | 13,855 | 20,637 | ||||||||||||||||
| Selling, general and administrative(1) | 1,748 | 386 | 2,134 | 3,791 | 888 | 4,679 | ||||||||||||||||
| Restructuring charges | 1,182 | 1,217 | 2,399 | — | — | — | ||||||||||||||||
| Asset impairment and other charges(2) | — | 778 | 778 | — | — | — | ||||||||||||||||
| Total segment costs and operating expenses | 13,325 | 6,758 | 20,083 | 20,359 | 14,743 | 35,102 | ||||||||||||||||
| Income (loss) from operations | $ | (4,615 | ) | $ | (6,191 | ) | (10,806 | ) | $ | 10,787 | $ | (11,419 | ) | (632 | ) | |||||||
| Corporate costs(2) | (22,736 | ) | (7,947 | ) | ||||||||||||||||||
| Unallocated depreciation and amortization | (1,357 | ) | (1,405 | ) | ||||||||||||||||||
| Loss before income taxes | $ | (34,899 | ) | $ | (9,984 | ) | ||||||||||||||||
| Nine Months Ended September 30, 2023 | Nine Months Ended September 30, 2022 | |||||||||||||||||||||
| Performance Enzymes | Novel Biotherapeutics | Total | Performance Enzymes | Novel Biotherapeutics | Total | |||||||||||||||||
| Revenues: | ||||||||||||||||||||||
| Product revenue | $ | 24,807 | $ | — | $ | 24,807 | $ | 93,376 | $ | — | $ | 93,376 | ||||||||||
| Research and development revenue | 12,696 | 6,079 | 18,775 | 7,398 | 7,441 | 14,839 | ||||||||||||||||
| Total revenues | 37,503 | 6,079 | 43,582 | 100,774 | 7,441 | 108,215 | ||||||||||||||||
| Costs and operating expenses: | ||||||||||||||||||||||
| Cost of product revenue | 9,947 | — | 9,947 | 29,577 | — | 29,577 | ||||||||||||||||
| Research and development(1) | 24,100 | 19,929 | 44,029 | 19,833 | 37,279 | 57,112 | ||||||||||||||||
| Selling, general and administrative(1) | 6,578 | 1,528 | 8,106 | 11,208 | 2,288 | 13,496 | ||||||||||||||||
| Restructuring charges | 1,182 | 1,362 | 2,544 | — | — | — | ||||||||||||||||
| Asset impairment and other charges(2) | — | 778 | 778 | — | — | — | ||||||||||||||||
| Total segment costs and operating expenses | 41,807 | 23,597 | 65,404 | 60,618 | 39,567 | 100,185 | ||||||||||||||||
| Income (loss) from operations | $ | (4,304 | ) | $ | (17,518 | ) | (21,822 | ) | $ | 40,156 | $ | (32,126 | ) | 8,030 | ||||||||
| Corporate costs(3) | (42,890 | ) | (24,940 | ) | ||||||||||||||||||
| Unallocated depreciation and amortization | (4,302 | ) | (3,953 | ) | ||||||||||||||||||
| Loss before income taxes | $ | (69,014 | ) | $ | (20,863 | ) | ||||||||||||||||
(1) Research and development expenses and selling, general and administrative expenses exclude depreciation and amortization of finance leases.
(2) Impairment charge of $0.8 million is related to the goodwill allocated to the Novel Biotherapeutics segment.
(3) Corporate costs include unallocated selling, general and administrative expenses, unallocated asset impairment and restructuring charges, interest income, and other income (expense), net.
| Last Trade: | US$3.88 |
| Daily Change: | 0.14 3.74 |
| Daily Volume: | 1,097,182 |
| Market Cap: | US$275.210M |
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