Codexis, Inc. (NASDAQ: CDXS), a developer of world-leading enzymes and processes for the production of pharmaceuticals, biofuels and bio-based chemicals, today announced financial results for the third quarter ended September 30, 2012.
“As promised, Codexis went about the hard, but crucial work this quarter of strategically realigning the company for its forward growth strategy following the loss of Shell funding,” said John Nicols, President and CEO of Codexis. “In parallel, we are encouraged by solid developments in our pharma business having recently finalized a new, more profitable business arrangement with our manufacturing partner, Arch Pharmalabs. We are also developing early prospects for commercialization partners for our CodeXyme™ cellulase enzymes, which produce cellulosic sugars,” Nicols added.
Third Quarter Financial Highlights:
Revenues for the third quarter of 2012 were $26.3 million, a 21% decrease from $33.3 million in the third quarter of 2011. Product revenue in the third quarter of 2012 was $7.1 million, a 41% decrease from $12.2 million in the prior year quarter and a 5% sequential increase from $6.8 million in the second quarter of 2012. Product gross margin in the third quarter was 10%, compared to 18% in the prior year quarter due to a higher percentage of generic products sales and lower on patent sales in the third quarter of 2012. Collaborative research and development revenue of $18.6 million decreased 3% from $19.2 million in the third quarter of 2011.
Research and development expenses in the third quarter of 2012 were $14.2 million, a decrease of 15% from $16.8 million for the third quarter of 2011. The decrease was primarily due to headcount reductions for the development of CodeXol™ detergent alcohol.
Selling, general and administrative expenses in the third quarter of 2012 were $7.9 million, a decrease of 11% compared to $8.9 million in the same period of 2011. The decrease was primarily due to reductions in headcount and other discretionary expenses during the third quarter of 2012.