On November 2, 2023, Codexis Inc (CDXS, Financial), a leading enzyme engineering company, announced its financial results for the third quarter ended September 30, 2023. The company reported a net loss of $34.9 million, a significant increase from the $9.9 million loss reported in the same quarter of the previous year. Despite the increased loss, the company remains in a strong financial position, with a cash and cash equivalents balance of $74.6 million.
Financial Highlights
The company's total revenues for the quarter were $9.3 million, a significant decrease from the $34.5 million reported in Q3 2022. This decrease was primarily due to a drop in product revenue, which stood at $5.4 million, down from $28 million in the same period last year. Research and development revenue also decreased to $3.9 million from $6.4 million in Q3 2022.
Operating expenses for the quarter were $41.3 million, down from $45.1 million in Q3 2022. The decrease in operating expenses was primarily due to a decrease in research and development costs, which stood at $13.7 million, down from $21.8 million in the same period last year.
Company's Outlook
Stephen Dilly, MBBS, PhD, President and Chief Executive Officer of Codexis, stated,
Over the past quarter, we have continued to deliver on our plan to reduce our cash burn and put ourselves in an enviable position of financial strength. With our current balance sheet, we now expect to fund our planned operations to positive cash flow, which is anticipated around the end of 2026."
The company also reiterated its 2023 financial guidance ranges originally issued on July 20, 2023, and reiterated on August 3, 2023.
Key Business Highlights
Codexis Inc (CDXS, Financial) remains on track to demonstrate gram-scale synthesis with its ECO Synthesis™ platform for RNAi Therapeutics Production by the end of the year. The company also announced the formation of a Strategic Advisory Board (SAB) and a Key Opinion Leader (KOL) Event scheduled for December 8, 2023.
Conclusion
Despite the increased net loss, Codexis Inc (CDXS, Financial) maintains a strong financial position and is on track to reach its key milestones. The company's focus on reducing cash burn and its anticipation of positive cash flow by the end of 2026 indicate a promising future for the company and its investors.
Explore the complete 8-K earnings release (here) from Codexis Inc for further details.
