The California, US based catalysis technology firm has been working with GSK since 2014 when it licensed the UK drug rights rights to use its Codeevolover platform at its facility in Upper Merion, Pennsylvania.
Since then Codexis has been transferring its technology to the GSK site in a two stage process, that final phase of which was completed this week triggering the milestone payment.
Under the agreement GSK is allowed to use the technology to develop biocatalysts for both new and established pharmaceuticals.
According to Codexis it “has the potential to receive numerous additional contingent milestone payments under the agreement with GSK that range from $5.7m to $38.5m per project based on GSK’s successful application of the licensed technology.
Pharma business
Codexis has been trying to expand its pharma business to compensate for the termination of its biofuel accord with Royal Dutch Shell in 2012.
In addition to GSK, the firm’s roster of pharmaceutical customers includes Pfizer, Exela and Merck & Co.
The Merck deal saw the US drugmaker apply Codexis developed biocatalysts to several products, including: the diabetes treatment Januvia; and various active ingredients for its hepatitis C portfolio.
Previously, Codexis has cited hepatitis C as a key driver both as a result of the Merck deal and its work with Vertex Pharmaceuticals (page 15). However, changing market dynamics mean this is no longer the case according to CEO John Nicols who spoke with us in 2014.
“The hepatitis C world has changed” he said, adding that “Gilead [which makes Sovaldi] has taken the market and customers have told us not to expect more roll out [of Codexis’ biocatalysts at manufacturing sites].”