Why Codexis Shares Are Slumping Today

Codexis Inc CDXS expects Q2 sales of approximately $38 million and FY22 sales of 135 million to $141 million, below the prior expectation of $152 million - $158 million.
FY22 product revenues are expected to be $112 million - $118 million, consistent with prior guidance. However, product revenues from Pfizer Inc PFE are now expected to be at the low end of previous guidance of $75 million - $80 million, expected to be offset by revenues from other customers.
Gross margin on product revenue is expected to be 65% to 70%, consistent with prior view.
"Our prior total revenue guidance for 2022 anticipated more R&D revenue from these partnerships in 2022 than we believe now possible at this point in the year due to a mix of fewer new deals being signed in 2022 and lower-than-anticipated revenue from existing customers," said CEO John Nicols.
The Q2 earnings release is scheduled for August 4.
Separately, Codexis agreed with Pfizer to supply an enzyme used to manufacture a critical intermediate for nirmatrelvir, an active pharmaceutical ingredient in Paxlovid, Pfizer's flagship antiviral for COVID-19.
Pfizer will pay Codexis a retainer fee of $25.9 million in lieu of existing orders for delivery of the Enzyme in early 2023, which have been canceled.
Price Action: CDXS shares traded lower by 23.86% at $9.19 in premarket on the last check Friday.