The company is discontinuing investment in certain development programs, primarily in Biotherapeutics, consolidating operations to its headquarters and reducing headcount by approximately 25%. 

Codexis had $92.1 million in cash and cash equivalents as of June 30, 2023, and with these changes, it expects that this balance will be sufficient to fund its planned operations to mid-2026.

Also Read: Codexis Shelves Development Of Certain Internal Programs, Cuts Workforce.

Codexis will prioritize its resources to complete the development and commercialization of its proprietary ECO Synthesis platform. It offers a suite of enzymes and a process designed to enable scalable RNA interference (RNAi) therapeutics production. 

Codexis anticipates demonstrating the gram-scale synthesis of the platform by the end of 2023, providing a key point of technical validation to enable select pre-commercial customer testing of the platform to begin in 2024.

The company will discontinue all pre-clinical discovery work in Biotherapeutics, including inborn errors of metabolism and gene therapy. 

Codexis plans to discontinue its 50/50 development support of CDX-7108 for exocrine pancreatic insufficiency and is actively negotiating with its partner, Nestlé Health Science S.A., to advance the program. 

Codexis expects Q2 FY23 sales of $21 million-$22 million compared to the consensus of $18.09 million.

Codexis is reiterating its 2023 product revenue and gross margin guidance of $30 million-$35 million and 55%-65%, respectively. Both metrics exclude enzyme sales related to Pfizer's covid-19 oral pill Paxlovid.

Price Action: CDXS shares are up 7.78% at $3.74 on the last check Friday.