Biocatalyst firm Codexis posts sales increase
pharmafile | August 16, 2010 | News story | Manufacturing and Production |Â Â Codexis, biocatalystÂ
Codexis has reported a healthy increase in revenues in the second quarter of 2010 which suggests that pharmaceutical companies are continuing to invest in cleaner, greener manufacturing approaches.
Codexis, which specialises in biocatalyst technologies for chemical synthesis, reported revenues of $24.5 million in the quarter, up 28% from a year ago and putting it on track to post an operating profit for the first time this year.
Biocatalysts – generally based on enzymes – have been used on a small scale in the pharmaceutical industry for many years, but it is only in the last few years that they have migrated into the commercial-scale manufacturing environment.
Codexis is one of a handful of companies trying to expand their use even further to provide chemical manufacturing that is more environmentally-friendly and cheaper as it can be carried out at lower temperatures and/or pressures, cutting the cost of goods by up to two-thirds, depending on the reaction.
The bulk of the firm’s revenues still come from collaborative R&D agreements – mainly royalties, license fees and grant money – but the second quarter also saw a doubling in its sales of off-the-shelf catalysts, intermediates and active pharmaceutical ingredients to $8.5 million.
Codexis has a business arrangement with Indian company Arch Pharmalabs in which the latter uses Codexis biocatalysts to manufacture pharmaceutical intermediates and APIs to drugmakers, with the US firm buying the resulting products for sale to companies in the USA, Europe and certain other territories.
New products which have contributed growth include the asthma ingredient montelukast and antidepressant duloxetine which are sold to generic manufacturers in counties where they are not under patent protection.
Meanwhile, the rise in R&D revenues was helped by Codexis’ recently-signed extension to its collaboration with Israeli drugmaker Teva, now covering four generic drugs. The two companies have been working together since 2004.
Codexis completed its initial public offering back in April raising $73 million, and is currently sitting on around $100 million in cash and equivalents.
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