-- Raises 2015 revenue and gross margin guidance to reflect recent licensing transaction with Merck --
-- Conference call begins at 4:30 p.m. Eastern time today --
REDWOOD CITY, Calif., Aug. 11, 2015 (GLOBE NEWSWIRE) -- Codexis, Inc. (NASDAQ:CDXS), a leading developer of biocatalysts for the pharmaceutical and fine chemical industries, announces financial results for the three and six months ended June 30, 2015, and raises its revenue and gross margin outlook for 2015.
“Solid year-to-date progress executing our plans encourages us to raise both of our annual financial guidance measures at this stage. Total revenues and gross margin in the second quarter reflected notable strength in biocatalyst research and development revenue which recorded its seventh consecutive quarter of growth,” stated Codexis President and CEO John Nicols. “In addition, year-over-year in the second quarter we delivered gross margin expansion and operating cost reductions, which contributed to a reduction in our loss from operations and brought us closer to profitability.
“We recently entered into two agreements that validate the strength of our business strategy,” he added. “Last week we announced our second non-exclusive CodeEvolver® protein engineering platform technology licensing agreement with a major pharmaceutical company, this time with current customer Merck. This licensing agreement allows Merck to use our CodeEvolver® platform technology to develop novel enzymes for the manufacture of its pharmaceutical products. It is compelling evidence of the value of our CodeEvolver® technology that Codexis and our license partners GSK and Merck are making long-term investments in our platform.
“Also, earlier today we announced a collaborative research and development agreement with a leading global biopharmaceutical company. This is our first agreement in the biopharmaceutical industry and it is exciting to see our CodeEvolver® protein engineering platform applied in the field of biologic drug development for this new customer,” said Mr. Nicols.
Second Quarter Financial Highlights
Total revenues for the quarter ended June 30, 2015 were $6.0 million compared with $6.6 million for the second quarter of 2014. Biocatalyst research and development revenue for the second quarter of 2015 increased 52% to $2.5 million compared with $1.7 million in the same period last year, largely due to higher license fee revenues from GSK. Biocatalyst product sales were $2.0 million compared with $2.8 million for the prior-year period, with the decrease due mainly to the timing of a large shipment to a pharmaceutical customer last year. Revenue from the revenue-sharing arrangement with Exela Pharma Sciences for sales of argatroban injectable drug decreased by $0.7 million as a result of the expiration of the formulation patent for argatroban in June 2014, allowing for generic competition in the subsequent quarters.
Gross margin as a percentage of total revenues for the second quarter of 2015 increased to 79% from 68% for the second quarter of 2014, due primarily to a sales mix favoring higher-margin products.
Research and development (R&D) expenses for the second quarter of 2015 decreased by 33% to $5.2 million from $7.7 million for the second quarter of 2014, largely driven by a non-recurring, non-cash impairment charge related to the writedown of certain assets in the second quarter of last year. Selling, general and administrative (SG&A) expenses for the second quarter of 2015 decreased by 6% to $5.3 million from $5.6 million in the second quarter of 2014, due primarily to lower legal fees.
The net loss for the second quarter of 2015 was $5.4 million, or $0.14 per share, improved from a net loss of $8.5 million, or $0.22 per share, for the second quarter of 2014. The non-GAAP adjusted net loss for the second quarter of 2015 was $2.7 million, or $0.07 per share, compared with a non-GAAP adjusted net loss of $2.6 million, or $0.07 per share, for the second quarter of 2014.
For full article, please click here.
Help employers find you! Check out all the jobs and post your resume.
