REDWOOD CITY, CA – Codexis , Inc. (NASDAQ:CDXS), a leading provider in the field of industrial organic chemicals with a market capitalization of $404 million, announced the appointment of Christos Richards as a new independent member of its Board of Directors, effective January 14, 2025.
According to InvestingPro data, the company maintains strong liquidity with a current ratio of 3.21, though it faces profitability challenges in the current market environment. The addition of Richards, a seasoned executive with extensive experience in healthcare and life sciences, is expected to provide valuable insights and guidance to the company.
Richards, 67, has a notable background in executive search within the healthcare sector, most recently serving as a Partner and Global Head of Healthcare and Life Sciences at Calibre One, Inc. His previous roles include Consultant with Spencer Stuart's global life sciences team and CEO of Levin & Company, Inc. Richards' experience also extends to board service, having been a director for Coherus BioSciences, Inc. from 2014 to 2020.
In line with Codexis' non-employee director compensation policy, Richards will receive an annual cash retainer of $50,000 for his board service and additional annual retainers of $10,000 each for his participation on the Nominating and Corporate Governance Committee and Strategy Committee. Furthermore, he was granted restricted stock units valued at $200,000 based on the closing price of Codexis' common stock on his appointment date. These units will vest over three years, contingent upon his continued service.
Richards' appointment is part of Codexis' ongoing efforts to strengthen its board with independent voices and industry expertise. The company also plans to enter into a standard indemnification agreement with Richards, a common practice to protect directors in their decision-making roles. The appointment comes as the company's stock has shown strong momentum, with InvestingPro data revealing an impressive 80% return over the past year and a 31% gain in the last six months.
In other recent news, Codexis, Inc. reported a significant increase in its third-quarter revenues for 2024, rising to $12.8 million from $9.3 million in the previous year. This growth was primarily driven by customer order timing, resulting in product revenue climbing to $11.2 million. The company has also made strategic changes, including the divestment of its genomics enzyme portfolio to focus on its core business, with an aim to reach profitability by the end of 2026.
Codexis plans to enhance enzyme production and establish a kilogram-scale ECO Synthesis manufacturing facility. A robust cash position of $90 million is expected to fund operations through 2027. However, R&D revenue decreased to $1.7 million due to lower non-recurring items, and SG&A expenses rose to $13.6 million, primarily due to higher consulting costs.
In addition to these developments, Codexis has expanded its board with new directors Christos Richards and Raymond (NS:RYMD) De Vré, both bringing extensive experience in the biopharmaceutical sector. The company also reported amendments to its bylaws, aligning with recent Delaware law developments.
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