Codexis Shelves Development Of Certain Internal Programs, Cuts Workforce

Codexis Inc CDXS decided to discontinue investment in certain internal development programs, expand investment in high-potential development programs and reduce its workforce by approximately 18%.
"Since joining as CEO three months ago, the leadership team and I have been carefully assessing our near- and long-term commercial opportunities with the goal of identifying the programs where we believe Codexis is best positioned to win. We are now ready to begin implementing our plan to enhance value and increase commercial discipline by concentrating our financial resources and human capital on this focused group of programs," said Dr. Stephen Dilly, President, and CEO of Codexis
The company estimates its actions will lower operating expenses by approximately $15 million in 2023.
In addition, the company reiterated its FY22 financial guidance, as outlined in the Q3 earnings release, with sales of $135-$141 million and a gross margin of 65%-70%.
A cash balance of $108.7 million will be sufficient to fund its planned operations through at least the end of 2024.
Price Action: CDXS shares closed at $5.04 on Tuesday.