Codexis Provides Update on Prioritized Corporate Strategy
November 29 2022 - 4:05PM
Codexis, Inc. (NASDAQ: CDXS), a leading enzyme engineering company,
today announced an update on the Company’s ongoing plan to
prioritize its time and resources on areas where the Company
believes it has the strongest commercial opportunity and greatest
probability of success. As part of this plan, the Company has
decided to discontinue investment in certain internal development
programs, expand investment in high potential development programs
and reduce its workforce by approximately 18%.
“Since joining as CEO three months ago, the
leadership team and I have been carefully assessing our near- and
long-term commercial opportunities with the goal of identifying the
programs where we believe Codexis is best positioned to win. We are
now ready to begin implementing our plan to enhance value and
increase commercial discipline by concentrating our financial
resources and human capital on this focused group of programs,”
said Dr. Stephen Dilly, President and CEO of Codexis. “The changes
we are making preserve our cash runway through the end of 2024 and
enable us to focus on the programs we view as having the greatest
potential for long-term commercial success.”
The Company expects the changes will be largely
complete by December 31, 2022, and estimates its actions will lower
operating expenses by approximately $15 million in 2023. In
addition, the Company is reiterating its financial guidance, as
outlined in the Company’s third quarter earnings release issued on
November 3, 2022, for total revenues, product revenues and gross
margin on product revenues for 2022, excluding the estimated impact
of costs incurred in connection with the payment of post-employment
benefits to impacted employees and other related costs that the
Company expects to recognize in the fourth quarter of 2022. The
Company believes its focused corporate strategy will enhance its
long-term growth and value-creation potential and preserve its
near-term revenue prospects. The Company intends to discuss its
2023 outlook in conjunction with its fourth quarter earnings
results.
About Codexis
Codexis is a leading enzyme engineering company
leveraging its proprietary CodeEvolver® platform to discover
and develop novel, high performance enzymes and biotherapeutics.
Codexis enzymes have applications in the sustainable manufacturing
of pharmaceuticals, food, and industrial products; in the creation
of the next generation of life science tools; and as gene therapy
and oral enzyme therapies. The Company’s unique performance enzymes
drive improvements such as: reduced energy usage, waste generation
and capital requirements; higher yields; higher fidelity
diagnostics; and more efficacious therapeutics. Codexis enzymes
enable the promise of synthetic biology to improve the health of
people and the planet. For more information,
visit www.codexis.com.
Forward-Looking Statements
To the extent that statements contained in this
press release are not descriptions of historical facts regarding
Codexis, they are forward-looking statements reflecting the current
beliefs and expectations of management made pursuant to the safe
harbor provisions of the Private Securities Litigation Reform Act
of 1995. Such forward-looking statements include, but are not
limited to, statements regarding the Company’s potential cash
runway, the reduction in its workforce resulting in lower operating
expenses in 2023, whether the Company’s focused corporate strategy
will enhance its long-term growth and value-creation potential
while preserving its near term revenue prospectus, and the
Company’s financial guidance for 2022. You should not place undue
reliance on these forward-looking statements because they involve
known and unknown risks, uncertainties and other factors that are,
in some cases, beyond Codexis’ control and that could materially
affect actual results. Additional information about factors that
could materially affect actual results can be found in Codexis’
Annual Report on Form 10-K filed with the Securities and Exchange
Commission (“SEC”) on February 28, 2022 and in Codexis’ Quarterly
Report on Form 10-Q filed with the SEC on November 4, 2022,
including under the caption “Risk Factors,” and in Codexis’ other
periodic reports filed with the SEC. Codexis expressly disclaims
any intent or obligation to update these forward-looking
statements, except as required by law.
Investor Relations Contact:
Argot PartnersBrendan Strong/Carrie McKim(212)
600-1902Codexis@argotpartners.com
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