Codexis Enters Exclusive Licensing Agreement for Newly Engineered Double-Stranded DNA Ligase with Roche

Rhea-AI Summary

Codexis, Inc. (NASDAQ: CDXS) partners with Roche for an exclusive global license for its newly engineered dsDNA ligase for NGS library preparation, replacing the prior license on EvoT4™ DNA ligase. The agreement includes upfront and milestone payments, showcasing Codexis' focus on core business areas. The engineered dsDNA ligase, developed using CodeEvolver® technology, offers improved ligation efficiency, higher library yields, and complexity with minimal bias, benefiting NGS workflows.

Biotechnology Analyst

The licensing agreement between Codexis and Roche represents a strategic move within the biotechnology and pharmaceutical industry, particularly in the realm of next-generation sequencing (NGS). The focus of the deal on a newly engineered double-stranded DNA (dsDNA) ligase is a testament to the growing importance of NGS technologies in research and clinical diagnostics. NGS is a method used to sequence DNA and RNA much more rapidly and cheaply than the more traditional methods and it has revolutionized genomics and molecular biology.

The upfront and technical milestone payments mentioned suggest a performance-based contract structure, which is common in biotech licensing deals. This structure allows the licensor, Codexis, to benefit financially from the immediate upfront payment, as well as future milestones that are tied to the development progress or commercial success of the product. For Roche, acquiring the exclusive global license means they can integrate this technology into their NGS kits, potentially improving performance and gaining a competitive edge in the market.

The use of Codexis’ proprietary CodeEvolver® technology in developing the dsDNA ligase indicates the significance of proprietary platforms in the biotech industry. This technology allows for the rapid development and optimization of enzymes, which are crucial in various biological applications. The improved ligation efficiency and minimal substrate sequence bias of the engineered dsDNA ligase could lead to more accurate and efficient NGS library preparations, which is critical for high-sensitivity applications, such as detecting rare genetic mutations.

Financial Analyst

The announcement by Codexis of its licensing agreement with Roche has several financial implications. First, the deal structure, which includes upfront and milestone payments, provides Codexis with a diversified revenue stream. This can be attractive to investors as it indicates potential for recurring income contingent on the achievement of certain development and commercial milestones. Moreover, the exclusivity of the license suggests a high level of confidence in the technology's commercial viability.

For Roche, this deal is an investment into enhancing their NGS offerings, which could lead to increased market share and sales in the long run. However, it is important to note that the financial terms were not disclosed, leaving some uncertainty regarding the deal's size and significance relative to Codexis' overall financials. Investors should monitor future disclosures for impact assessment.

Additionally, Codexis' strategy of monetizing non-core assets aligns with a focus on financial efficiency and could signal a strategic refocusing on core competencies. This could be viewed favorably by the market, as it suggests management is actively working to optimize the company's asset portfolio and concentrate on the most promising opportunities.

Market Research Analyst

The partnership between Codexis and Roche is indicative of the dynamic nature of the biotech sector, where collaborations are often essential for technological advancements and market penetration. The NGS market is rapidly expanding, with a compound annual growth rate (CAGR) projected to be significant in the coming years. NGS has applications across various fields, including oncology, genetic disease testing and agricultural biology, which means the potential market for improved NGS library preparation technologies is vast.

The deal reflects Codexis' strategic intent to leverage its proprietary technology to tap into this growing market through partnerships with established industry players like Roche. Roche's global presence and technical capabilities could enhance the adoption of the new dsDNA ligase, potentially leading to a broader market reach and increased sales. The collaboration could also serve as a catalyst for further innovation in the NGS space, as improved library preparation technologies can directly translate to more efficient and accurate sequencing results, which are critical for the advancement of personalized medicine and other genomics-driven fields.

REDWOOD CITY, Calif., Feb. 26, 2024 (GLOBE NEWSWIRE) -- Codexis, Inc. (NASDAQ: CDXS), a leading enzyme engineering company, today announced it has entered into an agreement with Roche for an exclusive, global license for the Company’s newly engineered double-stranded DNA (dsDNA) ligase for next-generation sequencing (NGS) library preparation and the Company’s EvoT4™ DNA ligase. Under the terms of the deal, Codexis will receive upfront and technical milestone payments. This deal supersedes the prior exclusive license on the EvoT4™ DNA ligase.

“This transaction is the latest example of our ongoing commitment to focusing on the core areas of our business where we have the biggest opportunity to create impact in the market,” said Kevin Norrett, MBA, Chief Operating Officer of Codexis. “Since announcing our prioritized strategy last July, we’ve executed multiple deals to monetize our non-core assets with market-leading companies. We are excited to collaborate again with Roche on this novel, dsDNA ligase. As a leader in NGS technologies, Roche continues to bring important kits to market that provide the sensitivity and specificity required for the next wave of innovative NGS applications. With Roche’s technical ability and commercial reach, we now have the ability to maximize the potential of our dsDNA ligase.”

Engineered using Codexis’ proprietary CodeEvolver® technology, this newly engineered dsDNA ligase improves the ligation efficiency of DNA fragments and adapters, without bias, during NGS library preparation. This is especially beneficial for NGS workflows requiring the highest sensitivity, even when the amount of starting material is constrained. Compared to wild-type enzyme, the newly engineered dsDNA ligase is developed to higher ligation efficiency in shorter reaction times and higher library yields and complexity, with minimal substrate sequence bias.

About Codexis
Codexis is a leading enzyme engineering company leveraging its proprietary CodeEvolver® technology platform to discover, develop and enhance novel, high-performance enzymes and other classes of proteins. Codexis enzymes solve for real-world challenges associated with small molecule pharmaceuticals manufacturing and nucleic acid synthesis. The Company is currently developing its proprietary ECO Synthesis™ platform to enable the scaled manufacture of RNAi therapeutics through an enzymatic route. Codexis’ unique enzymes can drive improvements such as higher yields, reduced energy usage and waste generation, improved efficiency in manufacturing and greater sensitivity in genomic and diagnostic applications. For more information, visit www.codexis.com.

Forward-Looking Statements
This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In some cases, you can identify forward-looking statements by terminology such as “aim,” “anticipate,” “assume,” “believe,” “contemplate,” “continue,” “could,” “design,” “due,” “estimate,” “expect,” “goal,” “intend,” “may,” “objective,” “plan,” “positioned,” “potential,” “predict,” “seek,” “should,” “suggest,” “target,” “on track,” “will,” “would” and other similar expressions that are predictions of or indicate future events and future trends, or the negative of these terms or other comparable terminology. To the extent that statements contained in this press release are not descriptions of historical facts, they are forward-looking statements reflecting the current beliefs and expectations of management, including but not limited to the potential benefits of the parties’ collaboration, including the anticipated impacts thereof on Codexis’ financial success, and the potential commercial success of the Codexis-engineered dsDNA ligases. You should not place undue reliance on these forward-looking statements because they involve known and unknown risks, uncertainties and other factors that are, in some cases, beyond Codexis’ control and that could materially affect actual results. Factors that could materially affect actual results include, among others: Codexis’ dependence on its licensees and collaborators; if any of its collaborators terminate their development programs under their respective license agreements with Codexis; Codexis may need additional capital in the future in order to expand its business; if Codexis is unable to successfully develop new technology such as its ECO Synthesis™ platform and dsRNA; Codexis' dependence on a limited number of products and customers, and potential adverse effects to Codexis’ business if its customers’ products are not received well in the markets; if Codexis is unable to develop and commercialize new products for its target markets; if competitors and potential competitors who have greater resources and experience than Codexis develop products and technologies that make Codexis’ products and technologies obsolete; if Codexis is unable to accurately forecast financial and operational performance; and market and economic conditions may negatively impact Codexis' business, financial condition and share price. Additional information about factors that could materially affect actual results can be found in Codexis’ Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on February 27, 2023 and in Codexis’ Quarterly Report on Form 10-Q filed with the SEC on November 3, 2023, including under the caption “Risk Factors,” and in Codexis’ other periodic reports filed with the SEC. Codexis expressly disclaims any intent or obligation to update these forward-looking statements, except as required by law.

For More Information

Investor Contact
Carrie McKim
(336) 608-9706
ir@codexis.com

Media Contact
Lauren Musto
(650) 412-8205
media@codexis.com

What is the ticker symbol for Codexis, Inc.?

The ticker symbol for Codexis, Inc. is CDXS.

What type of agreement did Codexis, Inc. enter into with Roche?

Codexis, Inc. entered into an exclusive global license agreement with Roche for its newly engineered dsDNA ligase for NGS library preparation.

How is the newly engineered dsDNA ligase beneficial for NGS workflows?

The newly engineered dsDNA ligase offers improved ligation efficiency of DNA fragments and adapters, higher library yields, and complexity with minimal bias, especially beneficial for NGS workflows requiring high sensitivity.

What technology was used to develop the newly engineered dsDNA ligase?

The newly engineered dsDNA ligase was developed using Codexis' proprietary CodeEvolver® technology.

What are the key highlights of the agreement between Codexis and Roche?

The agreement includes upfront and technical milestone payments, replacing the prior exclusive license on EvoT4™ DNA ligase, demonstrating Codexis' commitment to focusing on core business areas.