REDWOOD CITY, Calif. - Codexis , Inc. (NASDAQ: NASDAQ:CDXS), a prominent enzyme engineering firm, has secured a term loan facility of up to $40 million with Innovatus Capital Partners, LLC. The agreement includes an immediate $30 million with an additional $10 million available upon reaching certain revenue milestones. This financial maneuver is set to bolster Codexis's cash reserves and extend its operational runway to achieve cash-flow positivity by late 2026, enhancing the development and commercialization of its Enzyme-Catalyzed Oligonucleotide (ECO) Synthesis™ manufacturing platform for RNAi therapeutics.
The ECO Synthesis™ platform aims to overcome current challenges in the large-scale production of RNAi therapeutics, which is anticipated to face a demand surge by the decade's end. Codexis' technology is designed to enable commercial-scale RNAi therapeutic manufacturing through an enzymatic route, which could present significant advantages over traditional chemical synthesis in terms of quality, quantity, and cost-efficiency.
Stephen Dilly, MBBS, PhD, CEO of Codexis, expressed enthusiasm about the partnership with Innovatus, highlighting the opportunity in RNAi therapeutics and the company's intent to invest in an ECO Synthesis™ Innovation Lab. This facility will facilitate technical advancements and early-stage customer testing, potentially leading to the development of a full-scale GMP facility.
Claes Ekstrom, Managing Director and Head of Life Sciences at Innovatus, also commented on the investment's potential, citing Codexis' innovative technology, foundational business, and experienced leadership as key growth drivers.
Codexis retained approximately $29 million in net proceeds from the first tranche of the loan, which carries an interest-only period of 36 months over a total term of 60 months. Further details will be disclosed in an upcoming SEC filing.
The company's ECO Synthesis™ platform has recently achieved gram-scale synthesis, and Codexis is on track to initiate early access customer testing in the second half of 2024.
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