Codexis moves into direct sales of intermediates
US biotechnology company Codexis has made the transition from a technology platform to a product company by commencing direct sales of generic intermediates. It has already received multiple orders for ATS-8, the key chemical intermediate in atorvastatin, the active ingredient in the world's largest selling statin.
US biotechnology company Codexis has made the transition from a technology platform to a product company by commencing direct sales of generic intermediates. It has already received multiple orders for ATS-8, the key chemical intermediate in atorvastatin, the active ingredient in the world's largest selling statin.
ATS-8 will be manufactured in multi-ton quantities through an existing partnership with leading Indian chemicals manufacturer Arch Pharmalabs using Codexis' proprietary gene-shuffling technology. Sales will be handled by the company's Indian subsidiary, Codexis Laboratories Pte Ltd.
Codexis is already selling atorvastatin intermediate into unregulated markets as a pilot trial in preparation for the drug coming off patent in regulated markets.
'These initial commercial orders further Codexis' strategy of developing our own products for direct sale to the $50bn generics market,' said president and ceo Dr Alan Shaw. 'ATS-8 heads a deep pipeline of pharmaceutical generics in high growth markets with significant growth margins. Our generics portfolio will include intermediates and APIs for infectious disease, cardiovascular and CNS indications with expansion planned to a number of other therapeutic categories.'
The company expects that generic products will account for up to 80% of its sales value going forward. It is currently working on 20 out of the top 40 drugs in the world scheduled to come off patent in the next 5-10 years. These drugs, which include esomeprazole, rosuvastatin and capecitabine, are all small molecules with at least one chiral centre.
'We are restoring biocatalysis to its rightful place at the forefront of the toolbox,' said Shaw. 'By evolving from a technology platform into a product company we are no longer giving all the value away. Instead we are using our own technology to maximise value.'
Codexis is currently constructing an r&d centre in Singapore, scheduled to open in the third quarter of 2007. The 26,000ft2 facility will have 80 staff and will be the company's second site outside the US. Singapore was chosen, Shaw said, because of its proximity to Codexis' Indian manufacturing partners, the high respect for IP in Singapore and the high skill base in the country.
Codexis' proprietary technology can reduce the cost of goods by up to 50%, offers better product characteristics, is environmentally friendly, has mild reaction conditions and uses standard construction materials. The company recently raised $40m in a private funding round, which will be spent on developing its IP.
'Technology gives the competitive edge in the generics market,' Shaw stressed. 'Assets do not generate differentiation - technology does. The winner will be the company that has the best technology.'
