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Codexis to wind down CodeXyme business, guidance lowered

Codexis (CDXS) falls 27% premarket on the heels of its Q3 business update.

Revenues for the period fell 44% sequentially. Product revenues for Q3 dove 78% — the company blames "continued weakness in [the] atorvastatin enzyme business and delayed ramp up of sales to Merck of enzymes for the manufacturing process of Januvia."

Product gross margins doubled Q/Q to 54%, while R&D expense fell 21% from Q2.

The company said it is "immediately" winding down its cellulase enzyme program. CDXS cited "the market's undervaluation of the prospects and continued slow build out of cellulosic ethanol facilities" for its inability to "secure a suitable partnership or transaction for [the] CodeXyme business."

FY13 outlook: Revenue of $30-32M (versus previous guidance of $35-40M) and cash burn of $23M (versus previous guidance of $16-19M). (PR)

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Comments (1)
  • T. A. "Ike" Kiefer
    , contributor
    Comments (133) | Send Message
    Codexis "winding down its cellulase enzyme program" translates as "giving up hope for cellulosic biofuels." Former CEO Alan Shaw finally figured out the hopelessness of the basic chemistry of cellulosic biofuels after spending 5 years and $375 million of Shell money at Codexis. Last October he abruptly left to work on non-renewable NGTL at Calysta. Cultivated liquid biofuels in general and cellulosic biofuels in particular are really non-renewable NGTL processes as well. They just hide it better by turning the natural gas into ammonia fertilizer first and distracting people with plants as a middleman. But converting fossil fuel hydrocarbons into plant carbohydrates and then back into fuel hydrocarbons is the most inefficient way to turn fossil feedstock into fuel. We are much better off in terms of both energy efficiency and GHG emissions per unit of energy delivered to burn natural gas hydrocarbons directly as fuel or to refine crude oil hydrocarbons directly into gasoline and diesel, than to use either of them running farms or bioreactors cultivating crops or microbes.


    Commerical-scale liquid biofuels are forehead-slapping stupid by any energy analysis. The number of mercenary PhD's out there willing to lie about the viability of biofuels in exchange for big checks, and the number of naive investors out there willing to write the big checks without having done their scientific due diligence are both declining rapidly. If there is an anti-Vinod Khosla index fund out there that shorts all his biofuel bets, it would be a good time to jump onboard.
    13 Nov 2013, 12:01 PM Reply Like
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