Codexis Shares Surge on GlaxoSmithKline Licensing Pact -- Update

   By Josh Beckerman 
 

Codexis Inc. (CDXS), which develops bio-catalysts for pharmaceutical and chemical production, has granted GlaxoSmithKline PLC (GSK) a license to use its CodeEvolver protein technology.

Codexis shares were up 84% in after-hours trading at $2.60.

The license lets Glaxo use Codexis' platform technology to develop enzymes for use in pharmaceutical and health-care products.

Codexis said it is eligible to receive up to $25 million over a period of about two years, $6 million of which will be paid upfront and $19 million that is subject to completion of technology transfer milestones.

The company could receive additional milestone payments of $5.75 million to $38.5 million per project, depending on successful application of the technology.

Codexis said in May that first-quarter revenue fell 38% to $7.1 million, reflecting a loss of biocatalyst and intermediate sales in the hepatitis C drug marketplace. The company's net loss narrowed to $6.4 million, or 17 cents a share, from $9.6 million, or 25 cents a share. At the time, Codexis also reaffirmed 2014 revenue guidance of $33 million to $35 million.

On June 30, Codexis announced the resignation of Chief Financial Officer David O'Toole. On July 9, diagnostic devices company Capnia Inc. said it hired Mr. O'Toole as its CFO.

Write to Josh Beckerman at [e-mail]

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