Biocatalyst deal pays off again for Codexis

Codexis has achieved a second technical milestone, earlier than expected, in a collaboration with Pfizer aimed at developing new biocatalysts for the manufacture of the number one drugmaker's products.

Codexis' agreemen with Pfizer, forged last year, remains one of the company's most important partnerships and involves the use of Codexis' DNAShuffling technology - used to generate libraries of novel genes or genomes and recombine the DNA - across Pfizer's process R&D for small molecule drugs.

The objective is to rapidly generate biocatalysts for the manufacture of Pfizer's products, improving Pfizer's R&D productivity while reducing manufacturing costs and the environmental footprint of the eventual production processes.

Biocatalysts are used to simplify and lower the cost of a variety of chemical transformations and are of particular interest in manufacturing chiral or single-enantiomer compounds. Earlier this year, Codexis bolstered its activities in this area through the acquisition of Germany's Juelich Fine Chemicals, which offers a range of off-the-shelf specialty enzymes and chiral intermediates.

This is the second technical milestone achieved in the partnership, and comes just three months after its first milestone triggered a payment from the pharmaceutical company. Another, undisclosed milestone payment is now due, said Codexis.

Alan Shaw, Codexis' president and CEO, said the development 'demonstrates the significant productivity improvements possible with Codexis' proprietary pharmaceutical process re-engineering platform'.

"These improvements translate to potential new revenue and cost-reduction opportunities for our partners -- now numbering more than a dozen leading pharmaceutical and industrial companies worldwide."

The multi-year, non-exclusive agreement with Pfizer includes upfront payments, technology access fees and milestone payments to Codexis, which could total up to $40 million over the first few years of the agreement.