8-K
CODEXIS, INC. (CDXS)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_________________________________
FORM 8-K
_________________________________
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported): February 25, 2021
_________________________________
Codexis, Inc.
(Exact name of Registrant as Specified in its Charter)
_________________________________
| Delaware | 001-34705 | 71-0872999 |
|---|---|---|
| (State or other jurisdiction<br><br>of incorporation) | (Commission<br><br>File Number) | (I.R.S. Employer<br><br>Identification No.) |
200 Penobscot Drive
Redwood City, CA 94063
(Address of Principal Executive Offices) (Zip Code)
(650) 421-8100
(Registrant's telephone number, including area code)
_________________________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| ☐ | Written communication pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|---|---|
| ☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
| Title of Each Class | Trading Symbol(s) | Name of Each Exchange on Which Registered |
|---|---|---|
| Common Stock, par value $0.0001 per share | CDXS | The Nasdaq Global Select Market |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
| Item 2.02. | Results of Operations and Financial Condition |
|---|
On February 25, 2021, Codexis, Inc. (the “Company”) announced its financial results for the fourth quarter and year ended December 31, 2020. The full text of the press release issued in connection with the announcement is furnished as Exhibit 99.1 to this Current Report on Form 8-K.
The information in Item 2.02 of this Current Report on Form 8-K (including Exhibit 99.1) shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference under the Securities Act of 1933, as amended, except as expressly set forth by specific reference in such a filing.
| Item 7.01. | Regulation FD Disclosure |
|---|
The Company updated its corporate presentation (the “Corporate Presentation”) in connection with the Company’s quarterly earnings call and webcast to be held at 1:30 p.m. Pacific Time on February 25, 2021. A copy of the Corporate Presentation is furnished as Exhibit 99.2 to this Current Report on Form 8-K, and incorporated by reference herein.
The information in Item 7.01 of this Current Report on Form 8-K (including Exhibit 99.2) shall not be deemed to “filed” under the Securities Exchange Act of 1934, as amended, unless the Company expressly sets forth in such future filing that such information is to be considered “filed” or incorporated by reference therein.
| Item 9.01. | Financial Statement and Exhibits |
|---|
(d) Exhibits
| Exhibit No. | Description |
|---|---|
| 99.1 | Press release dated February 25, 2021relating to the financial results for the fourth quarter and year ended December 31, 2020. |
| 99.2 | Corporate presentation of Codexis, Inc. |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Date: February 25, 2021
| CODEXIS, INC. | |
|---|---|
| By: | /s/ Ross Taylor |
| Name: | Ross Taylor |
| Title: | Senior Vice President and Chief Financial Officer |
Document
Exhibit 99.1
Codexis Reports Fourth Quarter and Fiscal Year 2020 Financial Results
Strong Product Revenue Momentum in Second Half of 2020 Drives Company’s Seventh Consecutive Year of YOY Revenue Growth
Full Year Product Gross Margin Exceeds 50% for the First Time in Company’s History
Company Guides to 2021 Total Revenues of $82-85M, Product Revenues of $36-39M
REDWOOD CITY Calif., February 25, 2021 — Codexis, Inc. (Nasdaq:CDXS), a leading enzyme engineering company, today announced financial results for the fourth quarter and fiscal year ended December 31, 2020 and provided a business update.
“Codexis delivered strong results in 2020, despite the Company’s R&D operations being impacted by the pandemic for more than a quarter of the year. Our momentum in the second half of 2020 sets us up for robust revenue growth and product margins in 2021,” said John Nicols, Codexis President and CEO.
“CodeEvolver®, our enzyme engineering platform, is constantly accelerating in its ability to design and commercialize novel, high performance enzymes that enable the promise of synthetic biology into the real world. As we continue expanding into new markets such as life science tools, biotherapeutics, and food and industrial applications, Codexis is poised for strong growth across multiple dimensions: we are expanding R&D to increase our new product discovery capacity and to pursue more self-funded programs; we are advancing our pipeline of projects, with a growing number of processes designed with Codexis enzymes nearing commercialization; and we are expanding the applications for our enzymes in opportunities that are faster to launch and have higher potential peak revenue. I am excited by the nearly limitless possibilities for enzymes as a product class; we have only scratched the surface of how Codexis enzymes can make a difference for the health of people and the planet.”
Key Performance Indicators
•Full year product gross margin climbed to 54.5% for the fiscal year 2020, the highest in the Company’s history, due to a growing proportion of higher margin products.
•In the Sustainable Manufacturing market, Codexis had 15 customers who contributed a quarterly average of $100,000 or more in revenue in 2020, compared with 13 in 2019, advancing the Company’s strategy to diversify its customer base. Codexis’ pipeline of customer programs continued to progress, with 19 programs in Phase 2 or Phase 3 development, nearly tripled from four years ago.
•In the Life Science Tools market, Codexis advanced three enzymes to commercial-readiness in 2020: EvoT4™ DNA ligase, Codex® HiFi DNA polymerase, and Codex® HiCap RNA polymerase. In 2020, Codexis established several significant strategic collaborations in its Life Science Tools business, including with Alphazyme for the production and co-marketing of enzymes for life
science applications, and with Molecular Assemblies to enable the disruptive commercial potential of enzymatic DNA synthesis.
•In the Biotherapeutics market, the Company’s pipeline expanded to 12 programs in 2020. Pre-clinical development for CDX-7108, partnered with Nestlé Health Sciences for an undisclosed GI disorder, advanced toward its first clinical trial, which we expect to initiate in 2021. Codexis added its second key partnership agreement in its Biotherapeutics business, a multi-program strategic collaboration and license agreement with Takeda Pharmaceutical for the research and development of novel gene therapies for rare genetic disorders.
Recent Corporate Highlights
•Earlier this month, Codexis announced the expansion of its operations into a new 36,000 square foot facility in San Carlos, CA. This facility will provide space for additional research and development laboratories, as well as office space and is expected to be ready for occupancy in the fourth quarter of 2021, accommodating approximately 90 employees.
•In February, Codexis announced the appointment of Esther Martinborough, Ph.D. to its board of directors. Dr. Martinborough brings over two decades of drug discovery, research and development expertise to support the Company’s growth.
•In January, Codexis announced an expansion of its partnership with Tate and Lyle, a leading global provider of food ingredients and solutions, to enhance the production of two of Tate and Lyle’s newest sweeteners, DOLCIA PRIMA® Allulose and TASTEVA® M Stevia Sweetener.
•In December 2020, Codexis completed a public follow-on offering of 4,928,572 shares of its common stock, at a public offering price of $17.50 per share, resulting in aggregate net cash proceeds from the sale of the shares, after deducting underwriting discounts and offering expenses, of $80.8 million.
•In November 2020, Codexis and Casdin Capital announced the launch of SynBio Innovation Accelerator collaboration, which is intended to fund and nurture early-stage synthetic and industrial biotechnology companies. The first investment was in Arzeda Corp., a computational protein design company.
Fiscal Year 2020 Financial Highlights
•Total revenues for fiscal 2020 were $69.1 million, an increase of 1% from $68.5 million in fiscal 2019. Product revenues for fiscal 2020 were $30.2 million compared to $29.5 million in fiscal 2019; the increase was driven by higher sales of branded pharmaceutical products. R&D revenues were $38.8 million in fiscal 2020 compared to $39.0 million in fiscal 2019. Takeda contributed significant R&D revenues during the year; however, this was offset by lower revenues from Novartis, Nestlé Health Science, GlaxoSmithKline, and Merck.
•Product gross margin for fiscal 2020 was 54.5%, compared to 46.9% in fiscal 2019. The increase was driven by an increase of higher margin products in the sales mix.
•R&D expenses for fiscal 2020 were $44.2 million, compared to $33.9 million in fiscal 2019. The increase in R&D expenses was driven by higher preclinical and regulatory costs, compensation, and allocable expenses, partially offset by lower costs for lab supplies and consultants.
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•Selling, General & Administrative expenses for fiscal 2020 were $35.0 million, compared to $31.5 million in fiscal 2019. The increase in SG&A expense was the result of higher expenses for compensation, consultants, facilities, and legal, partially offset by lower costs for allocable expenses and travel.
•The net loss for fiscal 2020 was $24.0 million, or $0.40 per share, compared to $11.9 million, or $0.21 per share, for fiscal 2019. As of December 31, 2020, Codexis had $149.1 million in cash and cash equivalents, the highest cash balance in the Company’s history.
Fourth Quarter 2020 Financial Highlights
•Total revenues for the fourth quarter 2020 were $21.0 million, an increase of 12.8% from $18.7 million in the fourth quarter 2019. Product revenues for the fourth quarter 2020 were $12.2 million compared to $4.9 million in fourth quarter 2019; the increase was the result of higher sales of branded pharmaceutical products. R&D revenues were $8.8 million compared to $13.8 million last year; the decrease was primarily driven by lower revenue from Novartis, partially offset by the contribution from Takeda.
•Product gross margin for the fourth quarter 2020 was 52.0% compared to 30.2% in the fourth quarter 2019. The increase was driven by increased sales of higher margin products.
•R&D expenses for the fourth quarter 2020 were $10.4 million compared to $8.9 million in the fourth quarter 2019. The increase was driven by higher compensation expenses and higher costs for outside services, partially offset by lower preclinical and regulatory expenses.
•Selling, General & Administrative expenses for the fourth quarter 2020 were $8.7 million, compared to $7.3 million in the fourth quarter 2019. The increase was the result of higher expenses for compensation, recruiting, consultants, and facilities, partially offset by lower allocable expenses.
•The net loss for the fourth quarter 2020 was $3.9 million, or $0.06 per share, compared to $0.6 million, or $0.01 per share, for the fourth quarter 2019.
2021 Guidance
Codexis is introducing financial guidance for 2021, as follows:
•Total revenues are expected to be in the range of $82 million to $85 million
•Product revenues are expected to be in the range of $36 million to $39 million
•Gross margin on product revenue is expected to be 54% to 58%.
Conference Call and Webcast
Codexis will hold a conference call and webcast today beginning at 4:30 p.m. ET. A live webcast and slide presentation to accompany the conference call will be available on the Investor section of Company website. The conference call dial-in numbers are 877-705-2976 for domestic callers and 201-689-8798 for international callers, and the passcode is 13716352.
A recording of the call will be available for 48 hours beginning approximately two hours after the completion of the call by dialing 877-660-6853 for domestic callers or 201-612-7415 for international callers. Please use the passcode 13716352 to access the recording. A webcast replay will be available on
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the Investors section of www.codexis.com for 30 days, beginning approximately two hours after the completion of the call.
About Codexis
Codexis is a leading enzyme engineering company that applies its proprietary CodeEvolver® technology to develop proteins for a variety of applications, including as biocatalysts for the commercial manufacture of pharmaceuticals, fine chemicals and industrial enzymes, and enzymes as biotherapeutics and for use in molecular diagnostics. Codexis’ proven technology enables improvements in protein performance, meeting customer needs for rapid, cost-effective and sustainable manufacturing in multiple commercial-scale implementations of biocatalytic processes.
Forward-Looking Statements
To the extent that statements contained in this press release are not descriptions of historical facts regarding Codexis, they are forward-looking statements reflecting the current beliefs and expectations of management made pursuant to the safe harbor of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve substantial risks and uncertainties that could cause Codexis’ future results, performance or achievements to differ significantly from those expressed or implied by the forward-looking statements. Such risks and uncertainties include, among others, its guidance on 2021 total revenue, product revenue and gross margin on product revenue; its expectations regarding strong growth across multiple dimensions, including its ability to increase new product discovery capacity, to pursue more self-funded programs, to advance its pipeline of projects, including processes that are nearing commercialization, and to expand applications for its enzymes in opportunities that are faster to launch and have higher potential peak revenue; and its expectations for the growth of enzymes as a product class. Codexis undertakes no obligation to update or revise any forward-looking statements. For a further description of the risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, as well as risks relating to Codexis’ business in general, please refer to Codexis’ prospectus supplement to be filed with the SEC, including the documents incorporated by reference therein, which include Codexis’ Annual Report on Form 10-K filed with the SEC on February 28, 2020, Codexis’ Quarterly Report on Form 10-Q filed with the SEC on November 6, 2020, and Codexis’ other periodic reports filed with the SEC.
Investor Relations Contact:
Argot Partners
Stephanie Marks/Natallia Clancy
(212) 600-1902
Codexis@argotpartners.com
Financial Tables to Follow
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Codexis, Inc.
Condensed Consolidated Statements of Operations
(unaudited)
(In Thousands, Except Per Share Amounts)
| Three months ended December 31, | Year ended December 31, | |||||||
|---|---|---|---|---|---|---|---|---|
| 2020 | 2019 | 2020 | 2019 | |||||
| Revenues: | ||||||||
| Product revenue | $ | 12,215 | $ | 4,877 | $ | 30,220 | $ | 29,465 |
| Research and development revenue | 8,819 | 13,773 | 38,836 | 38,993 | ||||
| Total revenues | 21,034 | 18,650 | 69,056 | 68,458 | ||||
| Costs and operating expenses: | ||||||||
| Cost of product revenue | 5,860 | 3,402 | 13,742 | 15,632 | ||||
| Research and development | 10,355 | 8,872 | 44,185 | 33,873 | ||||
| Selling, general and administrative | 8,741 | 7,322 | 35,049 | 31,502 | ||||
| Total costs and operating expenses | 24,956 | 19,596 | 92,976 | 81,007 | ||||
| Loss from operations | (3,922) | (946) | (23,920) | (12,549) | ||||
| Interest income | 43 | 356 | 405 | 1,287 | ||||
| Other expenses, net | (33) | (40) | (156) | (656) | ||||
| Loss before income taxes | (3,912) | (630) | (23,671) | (11,918) | ||||
| Provision for income taxes | 8 | 5 | 339 | 17 | ||||
| Net loss | $ | (3,920) | $ | (635) | $ | (24,010) | $ | (11,935) |
| Net loss per share, basic and diluted | $ | (0.06) | $ | (0.01) | $ | (0.40) | $ | (0.21) |
| Weighted average common stock shares used in computing net loss per share, basic and diluted | 60,483 | 58,620 | 59,360 | 56,525 |
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Codexis, Inc.
Condensed Consolidated Balance Sheets
(unaudited)
(In Thousands)
| December 31, | ||||
|---|---|---|---|---|
| 2020 | 2019 | |||
| Assets | ||||
| Current assets: | ||||
| Cash and cash equivalents | $ | 149,117 | $ | 90,498 |
| Restricted cash, current | 638 | 661 | ||
| Investment in non-marketable debt security | 1,000 | — | ||
| Financial assets: | ||||
| Accounts receivable | 13,894 | 9,063 | ||
| Contract assets | 4,526 | 1,027 | ||
| Unbilled receivables | 10,942 | 10,099 | ||
| Total financial assets | 29,362 | 20,189 | ||
| Less: allowances | (74) | (34) | ||
| Total financial assets, net | 29,288 | 20,155 | ||
| Inventories | 964 | 371 | ||
| Prepaid expenses and other current assets | 3,416 | 2,520 | ||
| Total current assets | 184,423 | 114,205 | ||
| Restricted cash | 1,062 | 1,062 | ||
| Investment in non-marketable equity securities | 1,450 | — | ||
| Right-of-use assets - Operating leases, net | 21,382 | 23,837 | ||
| Right-of-use assets - Finance leases, net | 119 | 268 | ||
| Property and equipment, net | 9,675 | 6,282 | ||
| Goodwill | 3,241 | 3,241 | ||
| Other non-current assets | 294 | 178 | ||
| Total assets | $ | 221,646 | $ | 149,073 |
| Liabilities and Stockholders’ Equity | ||||
| Current liabilities: | ||||
| Accounts payable | $ | 2,970 | $ | 2,621 |
| Accrued compensation | 7,288 | 5,003 | ||
| Other accrued liabilities | 10,272 | 6,540 | ||
| Current portion of lease obligations - Operating leases | 2,627 | 1,107 | ||
| Current portion of lease obligations - Finance leases | — | 60 | ||
| Deferred revenue | 1,824 | 57 | ||
| Total current liabilities | 24,981 | 15,388 | ||
| Deferred revenue, net of current portion | 2,967 | 1,987 | ||
| Long-term lease obligations, Operating leases | 22,324 | 24,951 | ||
| Other long-term liabilities | 1,271 | 1,230 | ||
| Total liabilities | 51,543 | 43,556 | ||
| Stockholders’ equity: | ||||
| Common stock | 6 | 6 | ||
| Additional paid-in capital | 536,516 | 447,920 | ||
| Accumulated deficit | (366,419) | (342,409) | ||
| Total stockholders’ equity | 170,103 | 105,517 | ||
| Total liabilities and stockholders’ equity | $ | 221,646 | $ | 149,073 |
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Codexis, Inc.
Segmented Information
(unaudited)
(In Thousands)
| Three months ended December 31, 2020 | Three months ended December 31, 2019 | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Performance Enzymes | Novel Biotherapeutics | Total | Performance Enzymes | Novel Biotherapeutics | Total | |||||||
| Revenues: | ||||||||||||
| Product revenue | $ | 12,215 | $ | — | $ | 12,215 | $ | 4,877 | $ | — | $ | 4,877 |
| Research and development revenue | 4,507 | 4,312 | 8,819 | 12,179 | 1,594 | 13,773 | ||||||
| Total revenues | 16,722 | 4,312 | 21,034 | 17,056 | 1,594 | 18,650 | ||||||
| Costs and operating expenses: | ||||||||||||
| Cost of product revenue | 5,860 | — | 5,860 | 3,402 | — | 3,402 | ||||||
| Research and development(1) | 4,958 | 4,946 | 9,904 | 4,491 | 4,026 | 8,517 | ||||||
| Selling, general and administrative(1) | 2,202 | 626 | 2,828 | 1,963 | 454 | 2,417 | ||||||
| Total segment costs and operating expenses | 13,020 | 5,572 | 18,592 | 9,856 | 4,480 | 14,336 | ||||||
| Income (loss) from operations | $ | 3,702 | $ | (1,260) | 2,442 | $ | 7,200 | $ | (2,886) | 4,314 | ||
| Corporate costs (2) | (5,781) | (4,439) | ||||||||||
| Depreciation and amortization | (573) | (505) | ||||||||||
| Loss before income taxes | $ | (3,912) | $ | (630) |
(1) Research and development expenses and Selling, general and administrative expenses exclude depreciation and amortization of finance leases.
(2) Corporate costs include unallocated selling, general and administrative expense, interest income, and other income and expenses.
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Codexis, Inc.
Segmented Information
(unaudited)
(In Thousands)
| Year ended December 31, 2020 | Year ended December 31, 2019 | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Performance Enzymes | Novel Biotherapeutics | Total | Performance Enzymes | Novel Biotherapeutics | Total | |||||||
| Revenues: | ||||||||||||
| Product revenue | $ | 30,220 | $ | — | $ | 30,220 | $ | 29,465 | $ | — | $ | 29,465 |
| Research and development revenue | 17,886 | 20,950 | 38,836 | 28,691 | 10,302 | 38,993 | ||||||
| Total revenues | 48,106 | 20,950 | 69,056 | 58,156 | 10,302 | 68,458 | ||||||
| Costs and operating expenses: | ||||||||||||
| Cost of product revenue | 13,742 | — | 13,742 | 15,632 | — | 15,632 | ||||||
| Research and development(1) | 20,923 | 21,705 | 42,628 | 19,380 | 13,278 | 32,658 | ||||||
| Selling, general and administrative(1) | 9,597 | 2,355 | 11,952 | 8,462 | 2,222 | 10,684 | ||||||
| Total segment costs and operating expenses | 44,262 | 24,060 | 68,322 | 43,474 | 15,500 | 58,974 | ||||||
| Income (loss) from operations | $ | 3,844 | $ | (3,110) | 734 | $ | 14,682 | $ | (5,198) | 9,484 | ||
| Corporate costs (2) | (22,306) | (19,624) | ||||||||||
| Depreciation and amortization | (2,099) | (1,778) | ||||||||||
| Loss before income taxes | $ | (23,671) | $ | (11,918) |
(1) Research and development expenses and Selling, general and administrative expenses exclude depreciation and amortization of finance leases.
(2) Corporate costs include unallocated selling, general and administrative expense, interest income, and other income and expenses.
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codexisearningsconfcalls
Q4 & FY’2020 Results February 25, 2021 We engineer enzymes to improve health… of people and the planet
• These slides and any accompanying oral presentation contain forward-looking statements that involve risks and uncertainties. These statements relate to future events or our future financial or operational performance and involve known and unknown risks, uncertainties and other factors that could cause our actual results or levels of activity, performance or achievement to differ materially from those expressed or implied by these forward-looking statements. Forward-looking statements include all statements that are not historical facts. In some cases, you can identify forward-looking statements by terms such as “may,” “will,” “should,” “could,” “would,” “expects,” “plans,” “anticipates,” “believes,” “estimates,” “projects,” “predicts,” “potential” or the negative of these terms, and similar expressions and comparable terminology intended to identify forward-looking statements. These forward- looking statements represent our estimates and assumptions only as of the date hereof, and, except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise. • Other factors that could materially affect actual results or levels of activity, performance or achievement can be found in Codexis’ Form 10-K for the period ended December 31, 2019 filed with the SEC on February 28, 2020, Codexis’ Quarterly Report on Form 10-Q filed with the SEC on November 6, 2020, including under the caption “Risk Factors,” and Codexis’ other current and periodic reports filed with the SEC. If any of these risks or uncertainties materialize, or if our underlying assumptions prove to be incorrect, actual results or levels of activity, performance or achievement may vary significantly from what we projected. • Our logo, “Codexis,” “CodeEvolver®,” “X”, and other trademarks or service marks of Codexis, Inc. appearing in this presentation are the property of Codexis, Inc. This presentation contains additional trade names, trademarks and service marks of other companies. We do not intend our use or display of other companies’ trade names, trademarks or service marks to imply relationships with, or endorsement or sponsorship of us by, these other companies. 2 Forward Looking Statements
Strong 2020 Results 3 Positioned for Strong 2021 Top line growth 19-23% Product gross margin expansion Investment in growth opportunities 7th Consecutive Year of YOY Revenue Growth Quarterly Product Revenue (Q4’20) Annual product gross margin Cash balance HIGHEST EVER
Sustainable Manufacturing: Solid, Growing Base 4 Life Sciences Tools 8% Sustainable Manufacturing - Food & Industrial 4% % Total 2020 Performance Enzymes Revenue • 22% product sales 5-year CAGR • Key customers • 21 of top 25 pharma companies • Tate & Lyle, other large industrials emerging • 15 customers > $100K avg quarterly 2020 revenue • Growth drivers • New market extensions – food, industrials • Faster to commercialize products • Larger products • Higher product gross margins • CodeEvolver® licensing 100% margin backends$48 Million Total 2020 Performance Enzymes Revenue
Life Science Tools: High Growth 5 • From $0 revenue in 2018 to $3.6 M in 2020 • Three commercial enzymes • Enzymes marketed to multiple customers: • Primary target: next gen sequencing users • Closer to end market • Select partnerships: Roche, Alphazyme, Molecular Assemblies • Growth Drivers: • Commercial enzymes customer adoption • Additional new product launches • Early-stage, private company partnership investment opportunities Sustainable Manufacturing - Pharma 88% Life Sciences Tools 8% Sustainable Manufacturing - Food & Industrial 4% % Total 2020 Performance Enzymes Revenue $48 Million Total 2020 Performance Enzymes Revenue
Biotherapeutics: Rapid Pipeline Expansion and Validation 6 • Key Partnerships: • Nestlé Health Science • Takeda • Growth Drivers: • Accelerating number of candidates entering clinical trials • Partnered assets generating milestones and royalties • Increasing Codexis ownership of pipeline assets • Holding select assets deeper to clinical PoC in future 1 1 1 4 8 2 1 1 1 Discovery IND EnablingResearch ClinicalPreclinical Phase I 2016 2018 2020 # of Program
Strong 2020 Results 7 $69M FY’20 Total Revenue +1% 54.5% Gross Product Margin vs. 47% in FY’19 $149M Cash Available for Growth. No Debt $30M FY’20 Product Revenue +3% Novel Biotherapeutics Performance Enzymes $21M$48M $44M R&D Expense $35M SG&A Expense $24M Net Loss
2021 Guidance $82-85M Total Revenue 54-58% Product Gross Margin $36-39M Product Revenue
2021 Corporate Goals and Catalysts Life Science Tools 9 CDX-7108 for GI Disorder begins clinical development Preclinical proof-of-concept data generation for our wholly owned pipeline assets Deliver on strategic partnerships with Nestlé Health Science and Takeda Biotherapeutics Sustainable Manufacturing Continue widening pharma adoption, and advancing clients to new CodeEvolver® platform deals Enzymes for Phase 2 / 3 pharma processes commercialize into new recurring product revenues $M+ food enzymes revenues from Tate & Lyle’s recently commercialized sweeteners Broaden into other food and industrial applications $M+ product sales from recently commercialized Codex® DNA and RNA polymerases Launch reverse transcriptase; finish DNA synthesis enzyme engineering to enable 2022 launch Additional new product development & SynBio Innovation Accelerator announcements
Growth Accelerators in Motion, in Parallel 1 Corporate pipeline snapshots , as of June 30, published August every year. As of June 30, 2020, pipeline included 38 customer partnered and 13 Codexis-funded programs. 2 Performance Enzyme, non-pharma programs in respective annual pipeline snapshots 3 Select Performance Enzyme programs in respective annual pipeline snapshots 10 100% Discovery capacity (# of R&D teams)More times at bat 2016 2020 8 16 200% Programs in pre-commercial pipeline1More players on base 2016 2020 17 51 200+% Programs commercializable in <3yrs2More runs per inning 2016 2020 5 16 Programs w/ $10m+ peak revenue potential if commercialized3 More 2B, 3B, HR 2016 2020 1 6 500%
Nasdaq: CDXS www.codexis.com