Codexis reports 2015 fourth quarter and full year financial results

Financial outlook for 2016 is for another year of growth with revenues in the range of US$46–49m

Codexis, a protein engineering company, announces financial results for the three and 12 months ended 31 December 2015, providing an update on the company's business progress and introduces 2016 financial guidance.

‘The fourth quarter marks the highest quarterly product revenues from our core biocatalysis business in 2015 and closes out a highly productive year for Codexis,’ said Codexis President and CEO, John Nicols. ‘Among our most important 2015 accomplishments, we entered into our second CodeEvolver technology transfer and licensing agreement, and recognised license agreement milestone payments from both GlaxoSmithKline (GSK) and Merck.’

‘In our first agreement with a biopharmaceutical company, we successfully completed the proof-of-concept stage and started the enzyme evolution stage. We were also able to increase our product revenues with our largest shipment so far to our first food ingredient customer. Additionally, we met our 2015 financial guidance with revenues increasing 18% to US$41.8m and gross margin on total revenues improving to 84%,’ he added.

Fourth quarter financial highlights:

Total revenues for the fourth quarter of 2015 of US$11.6m compare with $14.2m for the fourth quarter of 2014, which included a $5m payment for the completion of the first milestone under the CodeEvolver platform license agreement with GSK. Biocatalyst research and development revenues for the fourth quarter of 2015 were $6.4m.

Gross profit as a percentage of total revenues for the fourth quarter of 2015 increased to 78% from 75% for the fourth quarter of 2014, primarily because of lower product costs attributable to sales mix and the inclusion of the settlement for past-due and future royalties.

Full-year 2015 financial highlights:

Total revenues for the year ended 31 December 2015 increased 18% to $41.8m from $35.3m for 2014. Total revenues for 2015 included $25.6m in biocatalyst research and development revenue, $11.4m in biocatalyst product sales and $4.8m from the revenue-sharing arrangement with Exela. Gross profit as a percentage of total revenues for 2015 increased to 84% from 72% for 2014.

‘Our financial outlook for 2016 is for another year of growth with revenues in the range of $46–$49m based on strong contributions from our core business and the expected recognition of CodeEvolver technology transfer milestone payments totalling $15.5m. We expect gross margin for 2016 to be 80–85% of total revenues,’ said Nicols.

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