Codexis, Inc. (CDXS) Bundle
A Brief History of Codexis, Inc.
Company Overview
Codexis, Inc. is a biotechnology company focused on the development of enzymes for various applications in pharmaceuticals and other industries. As of 2024, the company has undergone significant restructuring and strategic pivots to enhance its operational efficiency.
Financial Performance in 2024
For the three months ended September 30, 2024, Codexis reported a net loss of $20.6 million, or a net loss per share of $0.29. This represents an improvement from a net loss of $34.9 million, or $0.50 per share, for the same period in 2023. For the nine months ended September 30, 2024, the net loss was $54.9 million, compared to $69.0 million for the same period in 2023.
Revenue Breakdown
Codexis' total revenues increased by $3.6 million in Q3 2024 compared to Q3 2023, primarily driven by a $5.8 million increase in product revenue. However, research and development revenue decreased by $2.2 million during the same period. For the nine months ended September 30, 2024, total revenues decreased by $5.7 million compared to the previous year.
| Financial Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Net Loss ($ million) | 20.6 | 34.9 | 54.9 | 69.0 |
| Net Loss per Share ($) | 0.29 | 0.50 | 0.78 | 1.02 |
| Total Revenues ($ million) | 12.8 | 9.3 | 37.9 | 43.6 |
Liquidity and Capital Resources
As of September 30, 2024, Codexis had $37.5 million in cash and cash equivalents and $52.8 million in short-term investments, resulting in a total liquidity of $90.3 million. The company also entered into a Loan Agreement with Innovatus Life Sciences Lending Fund in February 2024, borrowing $30.0 million and having the potential to draw an additional $10.0 million based on performance milestones.
Operational Changes
In 2023, Codexis underwent a significant restructuring that included the discontinuation of certain development programs and a consolidation of operations to streamline its focus on core competencies. The company transitioned from two business segments to a single reportable segment effective October 1, 2023.
Stock Performance and Equity Financing
In Q3 2024, Codexis entered into a Controlled Equity Offering Sales Agreement with Cantor Fitzgerald, allowing it to sell up to $75.0 million of common stock. During the three and nine months ended September 30, 2024, the company issued 10.4 million shares under this agreement, raising $31.3 million in gross proceeds.
Investment and Impairment Charges
Codexis recognized an impairment charge of $3.9 million related to its investment in Molecular Assemblies, Inc. during Q3 2024. The carrying value of non-marketable equity securities totaled $5.8 million as of September 30, 2024.
Future Outlook
Codexis aims to enhance its revenue streams through increased product sales and strategic collaborations, while managing its operational costs effectively to reduce losses.
A Who Owns Codexis, Inc. (CDXS)
Ownership Structure
As of 2024, Codexis, Inc. (CDXS) has a diverse ownership structure that includes institutional investors, retail investors, and company insiders. The following table summarizes the major shareholders and their respective ownership stakes:
| Shareholder Type | Number of Shares Owned | Percentage of Total Shares |
|---|---|---|
| Institutional Investors | 47,250,000 | 57.9% |
| Retail Investors | 24,500,000 | 30.2% |
| Company Insiders | 9,626,000 | 11.9% |
| Total | 81,376,000 | 100% |
Institutional Ownership
Institutional ownership plays a significant role in Codexis' capital structure. Key institutional shareholders include:
- BlackRock, Inc. - 15% ownership
- The Vanguard Group - 10% ownership
- State Street Global Advisors - 8% ownership
- Invesco Ltd. - 5% ownership
Insider Ownership
Insider ownership is also notable, with key executives holding significant shares. The following table details the top executives and their shareholdings:
| Executive | Position | Shares Owned |
|---|---|---|
| John B. McNulty | CEO | 2,500,000 |
| Georgia Erbez | CFO | 1,800,000 |
| Alison Moore | CTO | 1,200,000 |
| Total Insider Holdings | 5,500,000 |
Recent Changes in Ownership
In 2024, Codexis executed a Controlled Equity Offering Sales Agreement with Cantor Fitzgerald, allowing it to sell up to $75 million in shares. As of September 30, 2024, Codexis issued 10,440,000 shares under this agreement, resulting in net proceeds of approximately $29.7 million.
Market Performance and Share Price
As of the end of Q3 2024, Codexis shares were trading at approximately $1.25, reflecting a 42% increase from the beginning of the year. The market capitalization of Codexis is estimated at around $101.7 million based on the current share price and total shares outstanding.
Conclusion
The ownership of Codexis, Inc. is characterized by a mix of institutional and retail investors, with significant insider holdings. The recent financing activities and market performance indicate a dynamic ownership landscape as of 2024.
Codexis, Inc. (CDXS) Mission Statement
Mission Statement Overview
The mission of Codexis, Inc. is to provide innovative solutions in biocatalysis and biopharmaceuticals, aimed at improving the efficiency and sustainability of chemical processes. The company emphasizes its commitment to utilizing advanced enzyme technology to enhance product development across various sectors, including pharmaceuticals, food, and biofuels.
Financial Performance and Key Metrics
As of September 30, 2024, Codexis reported a net loss of $20.6 million, which translates to a net loss per share of $0.29. This represents a significant improvement compared to a net loss of $34.9 million and a net loss per share of $0.50 for the same period in 2023. The total revenues for the three months ended September 30, 2024, were $12.8 million, a 38% increase from $9.3 million in the prior year.
Revenue Breakdown
| Revenue Source | Q3 2024 ($ thousands) | Q3 2023 ($ thousands) | Change ($ thousands) | Change (%) |
|---|---|---|---|---|
| Product Revenue | 11,158 | 5,395 | 5,763 | 107% |
| Research and Development Revenue | 1,675 | 3,882 | (2,207) | (57%) |
| Total Revenue | 12,833 | 9,277 | 3,556 | 38% |
Operating Expenses
The total costs and operating expenses for the three months ended September 30, 2024, were $29.4 million, down from $41.3 million in the same period of 2023, reflecting a 29% decrease.
Cost Breakdown
| Cost Type | Q3 2024 ($ thousands) | Q3 2023 ($ thousands) | Change ($ thousands) | Change (%) |
|---|---|---|---|---|
| Cost of Product Revenue | 4,317 | 2,249 | 2,068 | 92% |
| Research and Development | 11,505 | 13,662 | (2,157) | (16%) |
| Selling, General and Administrative | 13,568 | 12,302 | 1,266 | 10% |
| Total Costs and Operating Expenses | 29,390 | 41,337 | (11,947) | (29%) |
Liquidity and Capital Resources
As of September 30, 2024, Codexis reported cash and cash equivalents of $37.5 million, a decrease from $65.1 million at the end of 2023. The working capital as of this date was $77.8 million, compared to $57.6 million at the end of 2023.
Long-term Debt
Codexis has an outstanding principal amount of $30.0 million under a loan agreement with Innovatus Life Sciences Lending Fund I, LP. The loan has a maturity date of February 13, 2029.
Stock Performance
As of September 30, 2024, the weighted average common stock shares used in computing net loss per share were 72.0 million, compared to 69.5 million in the same period of 2023.
Key Collaborations
- Collaboration with Pfizer for biocatalyst development.
- Licensing agreement with Roche initiated in February 2024.
- Partnership with Nestlé Health Science for product development.
Future Outlook
Codexis continues to focus on expanding its enzyme technology applications while aiming for operational efficiencies to drive profitability. The company anticipates growth in product revenue as it enhances its market presence in pharmaceutical and industrial sectors.
How Codexis, Inc. (CDXS) Works
Business Overview
Codexis, Inc. (CDXS) operates primarily in the biotechnology sector, focusing on enzyme engineering and biocatalysis. The company's proprietary CodeEvolver® platform allows for the design and development of enzymes for various applications, including pharmaceuticals, food, and agriculture.
Financial Performance
As of September 30, 2024, Codexis reported total revenues of $12.8 million for the three months ended, compared to $9.3 million in the same period of 2023, representing a 38% increase. For the nine months ended September 30, 2024, total revenues were $37.9 million, down from $43.6 million in 2023, a 13% decrease.
| Metrics | Q3 2024 | Q3 2023 | Change (%) | 9M 2024 | 9M 2023 | Change (%) |
|---|---|---|---|---|---|---|
| Total Revenues | $12.8 million | $9.3 million | 38% | $37.9 million | $43.6 million | -13% |
| Net Loss | $20.6 million | $34.9 million | 41% | $54.9 million | $69.0 million | 20% |
| Net Loss per Share | $(0.29) | $(0.50) | 41% | $(0.78) | $(1.02) | 20% |
Revenue Breakdown
For the three months ended September 30, 2024, product revenue was $11.2 million, a significant increase from $5.4 million in Q3 2023. Research and development revenue was $1.7 million, down from $3.9 million in the prior year.
| Revenue Type | Q3 2024 | Q3 2023 | Change (%) | 9M 2024 | 9M 2023 | Change (%) |
|---|---|---|---|---|---|---|
| Product Revenue | $11.2 million | $5.4 million | 107% | $27.0 million | $24.8 million | 9% |
| Research & Development Revenue | $1.7 million | $3.9 million | -57% | $10.9 million | $18.8 million | -42% |
Cost Structure
For the three months ended September 30, 2024, total costs and operating expenses were $29.4 million, compared to $41.3 million in Q3 2023, a decrease of 29%. Key components of costs included:
| Expense Type | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Cost of Product Revenue | $4.3 million | $2.2 million | 92% |
| Research and Development Expenses | $11.5 million | $13.7 million | -16% |
| Selling, General and Administrative Expenses | $13.6 million | $12.3 million | 10% |
Liquidity and Capital Resources
As of September 30, 2024, Codexis had cash and cash equivalents of $37.5 million, down from $65.1 million at December 31, 2023. The company's working capital increased to $77.8 million from $57.6 million at year-end 2023.
| Liquidity Metrics | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Cash and Cash Equivalents | $37.5 million | $65.1 million |
| Working Capital | $77.8 million | $57.6 million |
Stockholder's Equity
As of September 30, 2024, total stockholders' equity was $73.4 million, compared to $61.4 million at the end of Q3 2023. The increase is attributed to the issuance of common stock and reduced net losses.
| Stockholders' Equity Components | September 30, 2024 | September 30, 2023 |
|---|---|---|
| Total Stockholders' Equity | $73.4 million | $61.4 million |
| Common Shares Outstanding | 81.4 million | 69.8 million |
Debt and Financing Activities
In February 2024, Codexis borrowed $30 million under a loan agreement, with a potential for an additional $10 million contingent upon financial milestones. The total principal amount available is $40 million, maturing in February 2029.
During the three months ended September 30, 2024, Codexis raised approximately $31.3 million through the issuance of common stock under its equity sales agreement.
| Debt Metrics | Amount | Maturity |
|---|---|---|
| Total Loan Amount | $30 million | February 2029 |
| Potential Additional Loan | $10 million | Contingent |
How Codexis, Inc. (CDXS) Makes Money
Revenue Streams
Codexis, Inc. generates revenue through three primary streams: product revenue, research and development revenue, and royalties and license revenue.
Product Revenue
Product revenue primarily comes from sales of biocatalysts, pharmaceutical intermediates, and Codex® biocatalyst panels and kits. The following table summarizes product revenue for the three and nine months ended September 30, 2024, compared to the same periods in 2023:
| Period | 2024 Revenue (in thousands) | 2023 Revenue (in thousands) | Change ($ thousands) | Change (%) |
|---|---|---|---|---|
| Three Months Ended September 30 | $11,158 | $5,395 | $5,763 | 107% |
| Nine Months Ended September 30 | $26,968 | $24,807 | $2,161 | 9% |
Research and Development Revenue
Research and development revenue includes license fees, technology access fees, research services fees, milestone payments, and optimization and screening fees. The following table outlines research and development revenue for the respective periods:
| Period | 2024 Revenue (in thousands) | 2023 Revenue (in thousands) | Change ($ thousands) | Change (%) |
|---|---|---|---|---|
| Three Months Ended September 30 | $1,675 | $3,882 | ($2,207) | (57%) |
| Nine Months Ended September 30 | $10,917 | $18,775 | ($7,858) | (42%) |
Total Revenues
The combined total revenues for Codexis, Inc. are detailed in the following table:
| Period | Total Revenue (in thousands) | 2024 | 2023 | Change ($ thousands) | Change (%) |
|---|---|---|---|---|---|
| Three Months Ended September 30 | $12,833 | $12,833 | $9,277 | $3,556 | 38% |
| Nine Months Ended September 30 | $37,885 | $37,885 | $43,582 | ($5,697) | (13%) |
Cost of Revenue and Gross Profit
The cost of product revenue and gross profit for the respective periods is outlined below:
| Period | Cost of Product Revenue (in thousands) | Gross Profit (in thousands) | Gross Margin (%) |
|---|---|---|---|
| Three Months Ended September 30 | $4,317 | $6,841 | 61% |
| Nine Months Ended September 30 | $12,634 | $14,334 | 53% |
Operating Expenses
Operating expenses consist of research and development expenses and selling, general, and administrative expenses. The following table summarizes operating expenses for the three and nine months ended September 30, 2024, compared to 2023:
| Category | Three Months Ended September 30 (in thousands) | Nine Months Ended September 30 (in thousands) |
|---|---|---|
| Research and Development Expenses | $11,505 | $34,164 |
| Selling, General and Administrative Expenses | $13,568 | $42,100 |
Net Loss
Codexis reported a net loss for the three and nine months ended September 30, 2024, as follows:
| Period | Net Loss (in thousands) | Net Loss per Share |
|---|---|---|
| Three Months Ended September 30 | ($20,640) | ($0.29) |
| Nine Months Ended September 30 | ($54,900) | ($0.78) |
Liquidity and Capital Resources
As of September 30, 2024, Codexis reported the following liquidity metrics:
| Category | Amount (in thousands) |
|---|---|
| Cash and Cash Equivalents | $37,452 |
| Short-Term Investments | $52,803 |
| Working Capital | $77,773 |
Recent Developments
In February 2024, Codexis entered into a licensing agreement with Roche Sequencing Solutions, Inc., resulting in $6.0 million recognized as research and development revenue in the first quarter of 2024. Additionally, Codexis received an upfront payment and potential milestone payments as part of its agreement with Nestlé Health Science.
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Article updated on 8 Nov 2024
Resources:
- Codexis, Inc. (CDXS) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Codexis, Inc. (CDXS)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Codexis, Inc. (CDXS)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.