Codexis reports strong finish to 2014

Receives first milestone payment of US$5m under non-exclusive licensing agreement with GSK

Codexis, a developer of biocatalysts for the pharmaceutical and fine chemical industries, reported a strong finish to 2014 and received its first milestone payment of US$5m under a non-exclusive licensing agreement with GSK.

John Nicols, President and Chief Executive of Codexis, said the technology transfer process is progressing well and the company expects to receive an additional milestone payment and to initiate new projects in 2015.

The company increased revenue to more than US$35m in 2014 and improved gross margin to 72% from 54% in the prior year.

According to Nicols, Codexis also continued to build momentum in the business by closing out the year with another quarter of significant R&D revenue growth, introducing its novel enzyme therapeutic candidate for PKU, and expanding its customer base in the pharmaceuticals and food industries.

'We believe we are well positioned for another year of growth in 2015 and continued movement toward profitability,' he added.

Total revenues for the year ended 31 December 2014 increased 11% from 2013 to $35.3m, and included $13.1m in biocatalyst product sales, $14.9m in biocatalyst research and development revenue and $7.3m from a revenue-sharing agreement with Exela.

The net loss for 2014 of $19.1m compared favourably with a net loss of $41.3m for 2013.

Going forward, Codexis expects total revenues of $39m to $42m in 2015, representing a 1019% increase over 2014. This revenue guidance includes a $6.5m milestone payment related to the company's agreement with GSK, which is expected towards the end of 2015.

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