Codexis Reports Second Quarter 2024 Financial Results
August 08 2024 - 4:05PM
Codexis, Inc. (NASDAQ: CDXS), a leading enzyme engineering company,
today announced financial results for the second quarter ended June
30, 2024, and provided a business update.
“We’re pleased that our second quarter revenues
are exactly in-line with our expectations. As a result, we are
reiterating our 2024 financial guidance and look forward to a
strong second half of the year, including fulfilling the first
order for our double-stranded RNA ligase. We are confident that we
remain on track to deliver double-digit year-over-year revenue
growth,” said Stephen Dilly, MBBS, PhD, Chief Executive Officer at
Codexis. “Additionally, our technical progress has been faster than
expected. Our groundbreaking TIDES USA presentation demonstrating
the enzymatic synthesis of a full-length siRNA oligonucleotide is
unprecedented. Finally, discussions with multiple potential
partners are active and proceeding well and we anticipate entering
our first technical collaboration for the ECO Synthesis™
manufacturing platform before year-end.”
Second Quarter and Recent Business
Highlights
- At the TIDES USA
annual meeting in May 2024, Codexis presented groundbreaking
enzymatic synthesis data from its ECO Synthesis™ technology
platform to support RNA-based therapeutics manufacturing. During a
Spotlight Presentation, the Company announced it had synthesized
the full-length, sense strand oligonucleotide of the siRNA
therapeutic lumasiran via its enzymatic route. In the manufacturing
of this commercially available oligonucleotide—as well as shorter
sense strand fragments of a second siRNA therapeutic asset,
givosiran—Codexis consistently achieved coupling efficiency greater
than 98%, which is equivalent to what is seen with phosphoramidite
chemistry; executed the enzymatic addition of a conjugation moiety
to the lumasiran strand; and confirmed the lack of notable
impurities typically observed in oligonucleotide synthesis via
phosphoramidite chemistry. A recording of the presentation, along
with slides and the data press release, can be found on the Codexis
corporate website.
- Also at the 2024
TIDES USA annual meeting, Codexis launched its double-stranded RNA
(dsRNA) ligase screening and optimization services. The dsRNA
ligase program is designed to augment and improve traditional
phosphoramidite chemistry by stitching together small, manufactured
strands of RNA. In addition to enabling the more efficient use of
existing chemical synthesis with the potential to reduce overall
costs, the dsRNA ligase provides an opportunity to educate
potential customers on the benefits of incorporating enzymatic
solutions as a complement to their current manufacturing processes.
The Company has already received a low-to-mid-single-digit
million-dollar order for its dsRNA ligase from a large
pharmaceutical customer.
- In July 2024,
the Company further strengthened its commercial leadership with the
appointment of Britton Jimenez to Senior Vice President, Commercial
Operations, reporting to Kevin Norrett, Chief Operating Officer.
Mr. Jimenez brings more than 20 years’ experience with Contract
Development and Manufacturing Organizations to Codexis, which will
provide valuable insights as we position Codexis for our next phase
of growth.
- Codexis
announced in July 2024 that the Company had finalized a purchase
agreement with Crosswalk Therapeutics for two gene therapy assets.
Under the terms of the agreement, Crosswalk acquired the Company’s
investigational Fabry and Pompe disease compounds, and Codexis is
eligible to receive future development and commercial milestone
payments in addition to a low-to-mid single-digit percentage net
sales-based royalty. Both programs were previously part of Codexis’
collaboration agreement with Takeda. In April 2023, Takeda
discontinued its efforts in adeno-associated virus (AAV) gene
therapy, which included these development programs.
Upcoming Milestones for Second Half
2024
- Codexis
continues to expect to enter its first technical collaboration with
the ECO Synthesis™ manufacturing platform by the end of 2024.
- The Company
expects to complete the build-out of its ECO Synthesis™ Innovation
Lab around the end of 2024.
2024 Financial Guidance
Reiterated
Codexis reiterated its full-year 2024 financial
guidance originally issued on February 28, 2024, as follows:
- Product revenues
are expected to be in the range of $38 million to $42 million,
excluding revenue related to PAXLOVID™.
- R&D revenues
are expected to be in the range of $18 million to $22 million.
- Gross margin on
product revenue is expected to be in the range of 58% to 63%,
excluding revenue related to PAXLOVID™.
Second Quarter
2024 Financial Highlights
- As of June 30,
2024, the Company had $73.2 million in cash, cash equivalents and
short-term investments, which is expected to fund planned
operations through positive cash flow, anticipated around the end
of 2026.
- Product and
R&D revenues for the second quarter 2024 were in-line with
guidance provided during the Company’s Q1 2024 financial results
call. Total revenues were $8.0 million for second quarter 2024
compared to $21.3 million in second quarter 2023. Product revenues
were $6.3 million for second quarter 2024 compared to $11.0 million
in second quarter 2023, driven by timing of customer orders.
R&D revenues for second quarter 2024 were $1.7 million compared
to $10.3 million in second quarter 2023; the decrease was primarily
due to lower non-recurring items, including for Biotherapeutics
programs that the Company previously discontinued and a one-time,
non-cash license fee.
- Product gross
margin was 45% for second quarter 2024 compared to 71% in second
quarter 2023. The decline in gross margin was largely due to
variability in the product mix.
- R&D expenses
for second quarter 2024 were $11.4 million compared to $17.3
million in second quarter 2023; the decrease was primarily driven
by a decrease in costs associated with lower headcount, lower use
of outside services related to Chemistry, Manufacturing and
Controls and lower regulatory expenses, a decrease in lease and
facilities costs due to the assignment of the Company’s San Carlos
facility lease during the fourth quarter of 2023, and lower
stock-based compensation costs.
- Selling, General
& Administrative expenses for second quarter 2024 were $15.7
million compared to $13.4 million in second quarter 2023; the
increase was primarily due to higher stock-based compensation
expense, including a one-time, non-cash modification expense of $2
million, and an increase in facilities associated costs, partially
offset by a decrease in costs associated with lower headcount.
- The net loss for
second quarter 2024 was $22.8 million, or $0.32 per share, compared
to a net loss of $11.5 million, or $0.17 per share, for second
quarter 2023.
Conference Call and Webcast
Codexis will hold a conference call and webcast
today beginning at 4:30 pm 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 at least 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 its first technical collaboration with
its ECO Synthesis™ manufacturing platform in 2024; whether Codexis
will be able to, and the timing of it substantially completing, the
build-out of its planned ECO Synthesis™ Innovation Lab around the
end of 2024; 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; the potential of such dsRNA ligase to, among other things,
augment and improve traditional phosphoramidite chemistry, enable
more efficient use of existing manufacturing infrastructure and
reduce overall costs; potential receipt by Codexis of certain
milestone and royalty payments pursuant to its recent asset
purchase agreement with Crosswalk Therapeutics; 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 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 ligase; 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 filed
with the Securities and Exchange Commission (SEC) on February 28,
2024 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 June 30, 2024, are not
necessarily indicative of our operating results for any future
periods.
For More InformationInvestor ContactCarrie
McKim(336) 608-9706ir@codexis.com
Media ContactLauren Musto(650) 421-8205media@codexis.com
|
Codexis, Inc.Condensed Consolidated
Statements of
Operations(Unaudited)(In
Thousands, Except Per Share Amounts) |
|
|
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
Revenues: |
|
|
|
|
|
|
|
Product revenue |
$ |
6,259 |
|
|
$ |
11,048 |
|
|
$ |
15,810 |
|
|
$ |
19,412 |
|
Research and development revenue |
|
1,720 |
|
|
|
10,275 |
|
|
|
9,242 |
|
|
|
14,893 |
|
Total revenues |
|
7,979 |
|
|
|
21,323 |
|
|
|
25,052 |
|
|
|
34,305 |
|
Costs and operating
expenses: |
|
|
|
|
|
|
|
Cost of product revenue |
|
3,462 |
|
|
|
3,178 |
|
|
|
8,317 |
|
|
|
7,698 |
|
Research and development |
|
11,413 |
|
|
|
17,334 |
|
|
|
22,659 |
|
|
|
33,988 |
|
Selling, general and administrative |
|
15,671 |
|
|
|
13,365 |
|
|
|
28,531 |
|
|
|
28,765 |
|
Restructuring charges |
|
— |
|
|
|
72 |
|
|
|
— |
|
|
|
145 |
|
Asset impairment and other charges |
|
165 |
|
|
|
— |
|
|
|
165 |
|
|
|
— |
|
Total costs and operating
expenses |
|
30,711 |
|
|
|
33,949 |
|
|
|
59,672 |
|
|
|
70,596 |
|
Loss from operations |
|
(22,732 |
) |
|
|
(12,626 |
) |
|
|
(34,620 |
) |
|
|
(36,291 |
) |
Interest income |
|
972 |
|
|
|
1,121 |
|
|
|
1,881 |
|
|
|
2,209 |
|
Interest and other expense,
net |
|
(985 |
) |
|
|
(9 |
) |
|
|
(1,500 |
) |
|
|
(33 |
) |
Loss before income taxes |
|
(22,745 |
) |
|
|
(11,514 |
) |
|
|
(34,239 |
) |
|
|
(34,115 |
) |
Provision for income
taxes |
|
10 |
|
|
|
9 |
|
|
|
21 |
|
|
|
25 |
|
Net loss |
$ |
(22,755 |
) |
|
$ |
(11,523 |
) |
|
$ |
(34,260 |
) |
|
$ |
(34,140 |
) |
|
|
|
|
|
|
|
|
Net loss per share, basic and
diluted |
$ |
(0.32 |
) |
|
$ |
(0.17 |
) |
|
$ |
(0.49 |
) |
|
$ |
(0.51 |
) |
Weighted average common stock
shares used in computing net loss per share, basic and diluted |
|
70,376 |
|
|
|
67,573 |
|
|
|
70,115 |
|
|
|
66,756 |
|
|
|
|
|
|
|
|
|
|
Codexis, Inc.Condensed Consolidated
Statements of Comprehensive
Loss(Unaudited)(In
Thousands) |
|
|
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
Net loss |
$ |
(22,755 |
) |
|
$ |
(11,523 |
) |
|
$ |
(34,260 |
) |
|
$ |
(34,140 |
) |
Other comprehensive loss: |
|
|
|
|
|
|
|
Unrealized loss on available-for-sale short-term investments, net
of tax |
|
(7 |
) |
|
|
— |
|
|
|
(23 |
) |
|
|
— |
|
Comprehensive loss |
$ |
(22,762 |
) |
|
$ |
(11,523 |
) |
|
$ |
(34,283 |
) |
|
$ |
(34,140 |
) |
|
|
|
|
|
|
|
|
|
Codexis, Inc.Condensed Consolidated
Balance Sheets(Unaudited)(In
Thousands) |
|
|
|
|
|
June 30, 2024 |
|
December 31, 2023 |
Assets |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
18,595 |
|
|
$ |
65,116 |
|
Restricted cash, current |
|
517 |
|
|
|
519 |
|
Short-term investments |
|
54,604 |
|
|
|
— |
|
Financial assets: |
|
|
|
Accounts receivable |
|
4,860 |
|
|
|
10,036 |
|
Contract assets |
|
3,213 |
|
|
|
815 |
|
Unbilled receivables |
|
4,380 |
|
|
|
9,142 |
|
Total financial assets |
|
12,453 |
|
|
|
19,993 |
|
Less: allowances |
|
(65 |
) |
|
|
(65 |
) |
Total financial assets, net |
|
12,388 |
|
|
|
19,928 |
|
Inventories |
|
2,232 |
|
|
|
2,685 |
|
Prepaid expenses and other current assets |
|
3,062 |
|
|
|
5,218 |
|
Total current assets |
|
91,398 |
|
|
|
93,466 |
|
Restricted cash |
|
1,062 |
|
|
|
1,062 |
|
Investment in non-marketable
equity securities |
|
9,700 |
|
|
|
9,700 |
|
Right-of-use assets -
Operating leases, net |
|
11,576 |
|
|
|
13,137 |
|
Property and equipment,
net |
|
13,966 |
|
|
|
15,487 |
|
Goodwill |
|
2,463 |
|
|
|
2,463 |
|
Other non-current assets |
|
1,841 |
|
|
|
1,246 |
|
Total assets |
$ |
132,006 |
|
|
$ |
136,561 |
|
|
|
|
|
Liabilities and
Stockholders' Equity |
|
|
|
Current liabilities: |
|
|
|
Accounts payable |
$ |
3,685 |
|
|
$ |
5,947 |
|
Accrued compensation |
|
7,658 |
|
|
|
11,246 |
|
Other accrued liabilities |
|
5,417 |
|
|
|
4,735 |
|
Current portion of lease obligations - Operating leases |
|
3,979 |
|
|
|
3,781 |
|
Deferred revenue |
|
9,800 |
|
|
|
10,121 |
|
Total current liabilities |
|
30,539 |
|
|
|
35,830 |
|
Deferred revenue, net of
current portion |
|
200 |
|
|
|
640 |
|
Long-term lease obligations -
Operating leases |
|
10,191 |
|
|
|
12,243 |
|
Long-term debt |
|
28,365 |
|
|
|
— |
|
Other long-term
liabilities |
|
1,264 |
|
|
|
1,233 |
|
Total liabilities |
|
70,559 |
|
|
|
49,946 |
|
|
|
|
|
Stockholders' equity: |
|
|
|
Common stock |
|
7 |
|
|
|
7 |
|
Additional paid-in capital |
|
593,253 |
|
|
|
584,138 |
|
Accumulated other comprehensive income |
|
(23 |
) |
|
|
— |
|
Accumulated deficit |
|
(531,790 |
) |
|
|
(497,530 |
) |
Total stockholders' equity |
|
61,447 |
|
|
|
86,615 |
|
Total liabilities and stockholders' equity |
$ |
132,006 |
|
|
$ |
136,561 |
|
|
|
|
|
|
|
|
|
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