The deal grants GlaxoSmithKline a license to use Codexis' CodeEvolver protein engineering platform technology to develop enzymes to help manufacture its pharmaceutical and health care products. GSK can also use it to create new therapeutic, diagnostic and prophylactic products.
Codexis can receive up to $25 million in approximately the next two years, $6 million up front and the other $19 million "subject to satisfactory completion of technology transfer milestones," according to the agreement. Codexis can also receive additional milestone payments of $5.75 million to $38.5 million per project "based on GSK's successful application of the licensed technology." Finally, Codexis is eligible for royalties from net sales of some GSK products developed with CodeEvolver.
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The stock was up 43.26% to $2.02 at 2:07 p.m. More than 4.4 million shares changed hands, which dwarfed the average volume of 30,194.CDXS Price data by YCharts