Codexis’ drug intermediate sales up in Q1; net loss deepens on R&D

Total revenue for the period was $31m (€21.6m), up 21 per cent on the year-earlier quarter, with the contribution from Codexis’ pharmaceutical business increasing 106 per cent to $12.9m.

Spokeswoman Lyn Christenson told in-Pharmatechnologist.com that the key drivers were the intermediate used in Merck & Co’s candidate Hep C drug Victrelis (bocreprevir) and sales to the generics sector.

This was echoed by Codexis’ VP of investor relations Henk Adriaenssens who said that both part of the firm’s pharmaceutical business had “performed better than anticipated.”​

Codexis’ also expanded its pharmaceutical biocatalysis business in the period, expanding​ its agreement with DSM Pharmaceutical products and forming a new partnership with Dainippon Sumitomo Pharma.

These deals expand Codexis’ client-base which already includes Dishman​ and Arch Pharmalabs​, the latter of which also played a part in the firm’s Q1 revenue gains according to Adriaenssens.

“We do not elaborate on our collaborations with Arch, DSM or Dishman, but since Arch is one of our main CMOs, it would be fair to assume this was more than last year.”​

Net loss​

The sales gains were in contrast with Codexis’ earnings for the quarter, or more accurately its lack of them. The firm’s net deficit increased just over $2m to $3.5m.

Adriaenssens attributed the increase to Codexis’ the cost of investment in its businesses and the fact the firm received a major milestone payment in the first quarter of 2010.

“The net loss increase is primarily due to incremental R&D investments to accelerate path to market of a.o. chemicals, Also Shell paid a milestone fee in Q1 2010 for a milestone that was achieved late in 2009.​

This point was reiterated by Christenson, who said that Codex’s prefers to measure performance using EBITDA.

“Adjusted EBITDA for the first quarter was $1.8 million, compared to $2.8 million in the prior year quarter. The decrease was primarily driven by a $1.4 million Shell milestone from 2009 that was recognized in Q1 of 2010​.”