Codexis reports solid financial results in Q4 2013

Expects further growth in 2014

Codexis, a developer of biocatalysts for the pharmaceutical and fine chemical industries, reports a 'strong finish in 2013' and delivered a 'solid financial result' in the fourth quarter in its core biocatalysts business.

In the fourth quarter, Codexis also achieved a commercialisation milestone in its pipeline, with the delivery to Novartis of the first major shipments of a chemical intermediate that is manufactured using a proprietary Codexis biocatalyst.

Total revenue for the fourth quarter was US$9.5m, a 20% increase from $7.9m in the fourth quarter of 2012.

Research and development expenses in the fourth quarter were $8.8m, a decrease of 17% from $10.6m for the fourth quarter of 2012. The fall was primarily due to job cuts implemented as part of a company-wide restructuring.

Net loss for the fourth quarter was $9.8m.

Total revenue for the full year was $31.9m, a 64% decrease from $88.3m in 2012.

Collaborative research and development revenue was $6.9m, a fall of 86% from $50.0m in 2012.

Research and development expenses for fiscal 2013 were $31.6m, a decrease of 44% from $56.8m in 2012.

Net loss for fiscal 2013 was $41.3m.

For the full year 2014, Codexis expects total revenue in the range of $33–$35m, or a year-on-year sales growth of 3–10%, and total gross profit of approximately $19–$20m, which would be an increase of 9–15% compared with 2013.

David O'Toole, SVP and Chief Financial Officer of Codexis said: 'Our 2014 revenue guidance demonstrates the solid underlying revenue growth fundamentals of our biocatalyst business, especially when taking into account the expected loss of all our biocatalyst and intermediate sales to customers in the hepatitis C drug marketplace due to a recently approved therapy that is competitive with our customers' products. Hepatitis C-related sales accounted for almost 20% of our revenue in 2013.'