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)