Shaw leaves as Codexis makes another loss

Growth but still no profit for enzymes maker
 

Dr Alan Shaw resigned as CEO and president of Codexis, which supplies enzymes to the biofuels, bio-based chemicals and pharmaceutical intermediates sectors, shortly after the publication of the firm’s annual results which showed an increase in sales but a hefty and rising net loss. There has been no indication that the two facts are linked.

According to Codexis, Shaw, who had headed the company for many years, left in order to “pursue other interests”. He has also left the board of directors, though he will continue to serve as a special advisor. The board has appointed Peter Strumph as interim CEO and retained Heidrick & Struggles to search for Shaw’s longer-term replacement. They will look at both internal and external candidates.

Strumph is currently senior VP and business head of pharmaceuticals. He came to Codexis least year and oversaw a big year-on-year increase in pharmaceutical product sales. He has been involved at senior manufacturing and operations management level in the biopharmaceuticals industry for 20 years, including ten managing the operational, development and commercial activities of CV. 

In January, Codexis had revealed that CFO Robert Lawson would stand down to accept a position at a private software company and the board is also looking for his replacement. Lawson stayed on to oversee the year-end accounting close and annual audit process and the filing of the annual report.

In the calendar and fiscal year 2011, the company reported revenues up 15.7% to $123.9 million. ‘Product revenue’ was 49.3% up to $49 million, driven by increased sales to both generic and innovator pharmaceuticals customers, while ‘collaborative R&D revenue’ increased only slightly to $71.4 million.

However, adjusted EBITDA was $4.3 million, down from $9.9 million in fiscal 2010. Codexis made a net loss of $16.6 million, compared to $8.5 million. This was partly explained by a $8.6 million rise in R&D costs because of additional headcount and amortisation related to IP purchased from former owner Maxygen, plus a $3.1 million increase in selling, general and administrative expenses caused by higher stock and salary compensation expenses.

During 2011, Codexis launched the CodeXyme cellulase enzymes and CodeXol detergent alcohol product lines. It expects to continue development in both fields this year, according to Shaw. The company forecast revenues “in line with or exceeding 2011 results”, plus positive adjusted EBITDA.