Codexis to discontinue developments in Biotherapeutics, reduce headcount by 25%

Codexis announced that the company intends to prioritize the advancement and commercialization of its Enzyme-Catalyzed Oligonucleotide, or ECO, Synthesis platform and its highly complementary Pharmaceutical Manufacturing business. As part of this strategic focus, the company is streamlining operations, including discontinuing investment in certain development programs, primarily in Biotherapeutics, consolidating operations to its headquarters and reducing headcount by approximately 25%. Codexis had $92.1 million in cash and cash equivalents as of June 30, 2023, and with these changes expects that this balance will be sufficient to fund its planned operations to mid-2026, providing the Company the opportunity to deliver on critical milestones related to its ECO Synthesis platform. Codexis is planning to discontinue its 50/50 development support of CDX-7108 and is in active negotiations with its partner, Nestle Health Science S.A., to advance the program. CDX-7108 is being developed for the treatment of exocrine pancreatic insufficiency. The company is actively exploring options to drive value by potentially monetizing other assets within its Biotherapeutics portfolio. To align with the company’s portfolio updates, Codexis is reducing its headcount by approximately 25%. The company expects the majority of these changes will be complete by September 30 and estimates it will begin to realize associated savings in the fourth quarter of this year. Codexis will consolidate operations from its San Carlos, California facility to its headquarters in Redwood City, California. The move is expected to occur during the second half of 2023. As a result of these changes, the company expects to reduce annual expenses by approximately $15M in R&D and $5M in Selling, general and administrative, as well as avoid a significant ramp-up in expenses related to Biotherapeutics.