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Codexis, Inc. (NASDAQ: CDXS), a developer of engineered enzymes for pharmaceutical, biofuel and chemical production, today announced financial results for the fourth quarter and year ended December 31, 2012.
“After a period of transition in 2012, we are very encouraged by the company’s progress and our better than projected cash balance at the end of the year,” said John Nicols, President and CEO of Codexis. “While making necessary strategic reductions of our operational expenses and cash burn associated with the ongoing repositioning of CodeXyme® cellulase enzymes and CodeXol™ detergent alcohols following the loss of Shell funding, we have continued to build the long-term strength of our pharmaceutical business. Specifically, in addition to finalizing the previously announced agreement with Arch Pharmalabs Ltd, we have also added new collaboration with Albany Molecular Research, Inc. and Strem Chemicals, Inc. designed to help our core biocatalysis enzyme business more widely penetrate the world’s complex chemistry markets,” Nicols added.
Fourth Quarter Financial Highlights:
Revenues for the fourth quarter of 2012 were $7.9 million, a 76% decrease from $33.5 million in the fourth quarter of 2011. The revenue decrease was primarily due to the termination of Codexis’ Collaborative Research Agreement with Shell as of August 31, 2012. Product revenue in the fourth quarter of 2012 was $6.8 million, a 56% decrease from $15.5 million in the prior year quarter, primarily due to the timing of generic and innovator pharmaceutical product orders. Product gross margin in the fourth quarter was 15%, a decrease compared to 16% in the prior year quarter and an increase compared to 10% in the third quarter of 2012. Collaborative research and development revenue of $1.1 million decreased 94% from $17.3 million in the fourth quarter of 2011 due to the termination of Codexis’ Collaborative Research Agreement with Shell.
Research and development expenses in the fourth quarter of 2012 were $10.6 million, a decrease of 32% from $15.5 million for the fourth quarter of 2011. The decrease was primarily due to headcount reductions implemented as part of a company-wide restructuring undertaken by Codexis after the termination of its Collaborative Research Agreement with Shell.