Protein engineering company Codexis announced results for the fourth quarter and full year ended December 31, 2015.
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Q4 total revenues of $11.6 million compare with $14.2 million for Q$ 2014, which included a $5 million milestone payment for the completion of the first milestone under the CodeEvolver platform license agreement with GSK.
Biocatalyst research and development revenues for the fourth quarter of 2015 were $6.4 million and included service and milestone fees from our biopharmaceutical collaboration, successful execution of a new R&D project aimed at transforming the manufacture of an already marketed drug, and a $3.1 million settlement relating to past-due payments and settlement of future payments associated with a royalty business with a non-core legacy customer.
This compares with biocatalyst research and development revenues for the fourth quarter of 2014 of $7.8 million, which included the $5 million milestone payment from GSK.
Biocatalyst product sales for the quarter were $4.5 million, compared with $4.7 million for the fourth quarter of 2014, with the decrease reflecting the timing of customer orders and product shipments.
Revenue from the company’s revenue-sharing arrangement with Exela PharmSci for sales of argatroban injectable drug was $0.8 million.
Gross profit as a percentage of total revenues for the fourth quarter of 2015 increased to 78% from 75% for the fourth quarter of 2014, primarily due to lower product costs attributable to sales mix and the inclusion of the settlement for past-due and future royalties mentioned above.
Research and development (R&D) expenses for the fourth quarter of 2015 of $5.2 million compare with $5.0 million in the prior-year period, reflecting higher employee-related and outside services expenses.
Selling, general and administrative (SG&A) expenses for the fourth quarter of 2015 were $6.0 million, compared with $5.1 million in the fourth quarter of 2014, primarily due to an increase in employee-related and legal expenses.
The net loss for the fourth quarter of 2015 of $2.1 million, or $0.05 per share, compares with net income of $345,000, or $0.01 per diluted share, for the fourth quarter of 2014.
Non-GAAP adjusted net income for the fourth quarter of 2015 of $622,000, or $0.02 per diluted share, compares with a non-GAAP adjusted net income of $2.8 million, or $0.07 per diluted share, for the fourth quarter of 2014.
Full year 2015
Total revenues for the year ended December 31, 2015 increased 18% to $41.8 million from $35.3 million for 2014.
Total revenues for 2015 included $25.6 million in biocatalyst research and development revenue, $11.4 million in biocatalyst product sales and $4.8 million from the revenue-sharing arrangement with Exela.
Gross profit as a percentage of total revenues for 2015 increased to 84% from 72% for 2014.
R&D expenses consist of costs incurred for internal projects, partner-funded collaborative R&D activities and costs incurred to achieve milestones under various collaboration and platform technology transfer agreements.
R&D expenses for 2015 decreased to $20.7 million from $22.8 million for the prior year, resulting primarily from the non-recurring, non-cash impairment charges related to the writedown of certain assets in 2014 as well as lower equipment depreciation expense in 2015.
SG&A expenses for 2015 were $22.3 million compared with $21.9 million from the prior year, with the slight increase mainly due to higher employee-related expenses.
The net loss for 2015 of $7.6 million, or $0.19 per share, compares favorably with the net loss of $19.1 million, or $0.50 per share, for 2014. Non-GAAP adjusted net income for 2015 was $3.0 million, or $0.07 per diluted share, compared with non-GAAP adjusted net loss of $5.8 million, or $0.15 per share, for 2014.
Cash and cash equivalents as at December 31, 2015 were $23.3 million, compared with $26.5 million as of December 31, 2014. ■