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1. Company Snapshot

1.a. Company Description

Codexis, Inc.discovers, develops, and sells enzymes and other proteins.It offers biocatalyst products and services; intermediate chemicals products that are used for further chemical processing; and Codex biocatalyst panels and kits that enable customers to perform chemistry screening.


The company also provides biocatalyst screening and protein engineering services.In addition, it offers CodeEvolver protein engineering technology platform, which helps in developing and delivering biocatalysts that perform chemical transformations and enhance the efficiency and productivity of manufacturing processes.The company's platform is also used to discover novel biotherapeutic drug candidates for targeted human diseases, as well as for molecular biology and in vitro diagnostic enzymes.


It sells its products to pharmaceutical manufacturers through its direct sales and business development force in the United States and Europe.The company was incorporated in 2002 and is headquartered in Redwood City, California.

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1.b. Last Insights on CDXS

Here is a 90-word analysis of the negative drivers behind Codexis, Inc.'s recent stock performance: Codexis' recent performance was negatively impacted by its Q4 earnings miss, with a reported loss of $0.13 per share versus the expected loss of $0.02. This compares to earnings of $0.02 per share a year ago. The company's revenue also fell short of estimates. Additionally, the company's recent employment inducement grants, totaling over 240,000 shares and 79,000 restricted stock units, may have diluted shareholder value. The appointment of Christos Richards to the Board of Directors may bring some positivity, but the earnings miss and dilutive equity grants are likely to weigh on the stock.

1.c. Company Highlights

2. Codexis' Q3 2025 Earnings: A Transition Year

Codexis reported total revenues of $8.6 million for Q3 2025, a decline from $12.8 million in Q3 2024, primarily due to variability in customers' manufacturing schedules and clinical trial progression. The actual EPS came out at -$0.22, relative to estimates at -$0.15. Despite the revenue decline, the company has 11 revenue-generating contracts and 40 more in the pipeline. Codexis expects to make or slightly exceed the top end of its guidance range for 2025 revenue. The company's efforts to streamline its organization have reduced its cost base, with an expected reduction in burn by approximately 25%, extending its runway through 2027.

Publication Date: Nov -17

📋 Highlights
  • Leadership Transition:: Stephen Dilly transitions to Executive Chair, with Alison Moore succeeding as CEO.
  • Revenue Decline:: Q3 2025 revenue fell to $8.6M from $12.8M in Q3 2024 due to customer manufacturing and trial delays.
  • Merck Agreement:: Nondilutive cash from Merck’s supply assurance deal supports revenue growth and liquidity.
  • Cost Reduction:: Restructuring cuts burn by 25%, extending financial runway through 2027.
  • ECO Platform Expansion:: 11 revenue contracts, 40 in pipeline, plus new GMP siRNA facility and ECO Synthesis scalability data at TIDES EU.

Operational Highlights

The company is making progress in its oligonucleotide therapeutics business, with a supply assurance agreement with Merck expected to provide a vital infusion of nondilutive cash and contribute to revenue growth. Codexis will present new data at TIDES EU next week, showcasing the scalability of its ECO platform. The company is also reconfiguring its sales force to expand its customer base further into the oligonucleotide therapeutics market.

Growth Prospects

Codexis expects its historical business to grow for the next 5 to 10 years, fueled by 14 drugs using its enzymes in Phase III clinical trials. Analysts estimate next year's revenue growth at 8.0%. The company's ECO Synthesis platform is considered a key growth driver, with the potential to provide customers with a range of services, including scaling ligase at ISO quality standards and making siRNA in its own facility.

Valuation

Codexis' current valuation metrics indicate a mixed picture, with a P/S Ratio of 2.64 and an EV/EBITDA of -3.15. The company's ROE is -121.39%, and its ROIC is 1065.12%. These metrics suggest that the market is pricing in significant growth potential, but also reflects the company's current losses. The upcoming revenue growth and the progress in its oligonucleotide therapeutics business may justify the current valuation, but investors will be watching closely for signs of improvement in the company's financial performance.

3. NewsRoom

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Down 30% in 4 Weeks, Here's Why You Should You Buy the Dip in Codexis (CDXS)

Nov -11

Source: zacks.com

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Codexis Announces Signing of Lease for GMP Manufacturing Facility

Nov -10

Source: globenewswire.com

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Codexis, Inc. (CDXS) Q3 2025 Earnings Call Transcript

Nov -07

Source: seekingalpha.com

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Codexis (CDXS) Reports Q3 Loss, Misses Revenue Estimates

Nov -07

Source: zacks.com

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Codexis and Nitto Denko Avecia Enter Evaluation Agreement to Explore Codexis's ECO Synthesis® Manufacturing Platform for Therapeutic siRNA Manufacturing

Oct -29

Source: prnewswire.com

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Codexis to Report Third Quarter 2025 Financial Results on November 6

Oct -23

Source: globenewswire.com

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Codexis to Participate in Cantor Global Healthcare Conference

Aug -28

Source: globenewswire.com

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Codexis, Inc. (CDXS) Q2 2025 Earnings Call Transcript

Aug -13

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (9.93%)

6. Segments

Biocatalysts, Pharmaceutical Intermediates, and Codex Biocatalyst Panels and Kits

Expected Growth: 9.52%

Codexis' 9.52% growth driven by increasing demand for sustainable biocatalysts in pharmaceuticals, expanding pipeline of novel enzymes, and growing adoption of Codex Biocatalyst Panels and Kits for efficient bioprocessing. Strong partnerships, proprietary technology, and increasing focus on green chemistry also contribute to growth.

Research and Development

Expected Growth: 10.58%

Codexis' 10.58% R&D growth driven by increasing demand for novel enzymes in pharmaceutical and biofuel industries, strategic partnerships, and expansion into new markets. Additionally, investments in digital biology and machine learning capabilities enhance R&D efficiency and accelerate product development.

7. Detailed Products

Codexis Enzymes

Codexis develops and commercializes novel enzymes that can be used in various industries such as pharmaceuticals, food, and biofuels.

Codexis Biocatalysts

Codexis designs and develops biocatalysts that can be used to improve the efficiency and sustainability of various industrial processes.

Codexis Gene Codon Optimization

Codexis offers gene codon optimization services to improve the expression of genes in various host organisms.

Codexis Microbial Strain Development

Codexis develops and optimizes microbial strains for use in various industrial applications.

Codexis Bioprocess Development

Codexis offers bioprocess development services to improve the efficiency and sustainability of various industrial processes.

8. Codexis, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Codexis, Inc. is medium due to the presence of alternative enzymes and biocatalysts in the market.

Bargaining Power Of Customers

The bargaining power of customers for Codexis, Inc. is low due to the company's strong relationships with its customers and the customized nature of its products.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Codexis, Inc. is medium due to the presence of multiple suppliers of raw materials and the company's ability to negotiate prices.

Threat Of New Entrants

The threat of new entrants for Codexis, Inc. is high due to the growing demand for biocatalysts and the relatively low barriers to entry in the industry.

Intensity Of Rivalry

The intensity of rivalry for Codexis, Inc. is high due to the presence of several established players in the biocatalyst market and the company's need to continuously innovate to stay competitive.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 20.52%
Debt Cost 3.95%
Equity Weight 79.48%
Equity Cost 14.18%
WACC 12.08%
Leverage 25.82%

11. Quality Control: Codexis, Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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aTyr Pharma

A-Score: 4.6/10

Value: 7.6

Growth: 6.4

Quality: 6.8

Yield: 0.0

Momentum: 5.0

Volatility: 1.7

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Veracyte

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Recursion Pharmaceuticals

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Growth: 3.9

Quality: 3.4

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Codexis

A-Score: 2.7/10

Value: 7.0

Growth: 0.7

Quality: 3.9

Yield: 0.0

Momentum: 3.0

Volatility: 1.7

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INmune Bio

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Value: 7.2

Growth: 3.2

Quality: 4.5

Yield: 0.0

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Adverum Biotechnologies

A-Score: 2.6/10

Value: 8.0

Growth: 1.9

Quality: 3.6

Yield: 0.0

Momentum: 1.0

Volatility: 1.0

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

1.83$

Current Price

1.83$

Potential

-0.00%

Expected Cash-Flows