Codexis Partners with Innovatus for a $40 Million Loan to Revolutionize RNAi Therapeutic Production
In a strategic finance maneuver, Codexis, Inc., a leader in enzyme engineering and NASDAQ-listed innovator, has inked a term loan agreement with Innovatus Capital Partners, LLC, securing up to $40 million. This partnership marks a significant milestone, channeling funds into Codexis's ambitious project – the development of their proprietary ECO Synthesis™ platform for RNAi therapeutics.
Strategic Financial Boost
The term loan facility consists of an initial $30 million, supplemented with an extra $10 million contingent on achieving specified revenue milestones. This infusion of capital is not merely a financial investment but a testament to the potential of Codexis's groundbreaking enzyme-catalyzed oligonucleotide synthesis technology. With about $29 million in net proceeds from the initial transaction, Codexis is well-positioned to advance its mission of achieving cash-flow positivity by late 2026.
Revolutionizing RNAi Therapeutic Manufacturing
At the heart of this financial venture is Codexis's ECO Synthesis™ platform, designed to tackle the existing hurdles in large-scale RNAi therapeutic production. Unlike traditional chemical synthesis, this enzymatic route promises substantial benefits in quality, quantity, and cost-efficiency. The demand for RNAi therapeutics is expected to surge towards the decade's end, making this technological advancement timely and critical.
Investing in Innovation
Codexis's CEO, Stephen Dilly, MBBS, PhD, exudes optimism about the collaboration with Innovatus, underscoring the untapped potential within the RNAi therapeutics sector. The establishment of an ECO Synthesis™ Innovation Lab represents a forward leap, enabling technological strides and early-stage customer trials that pave the way towards a GMP facility designed for commercial-scale production.
Claes Ekstrom, Managing Director and Head of Life Sciences at Innovatus, echoes this sentiment, acknowledging Codexis's innovative technology, solid business foundation, and seasoned leadership as the cornerstones of projected growth.
Looking Ahead
With the ECO Synthesis™ platform achieving gram-scale synthesis, Codexis is gearing up for early access customer testing in the second half of 2024. This roadmap not only showcases the potential scalability of RNAi therapeutic manufacturing but also highlights Codexis's commitment to addressing future healthcare needs with innovative solutions.
As the partnership between Codexis and Innovatus flourishes, the financial groundwork laid today promises to catalyze a revolution in RNAi therapeutic manufacturing, marking a new chapter in the field of biotechnology.
Analyst comment
Positive news: Codexis has secured a $40 million loan from Innovatus Capital Partners, LLC to revolutionize RNAi therapeutic production. This financial boost will support the development of Codexis’s ECO Synthesis™ platform, which promises improved quality, quantity, and cost-efficiency in manufacturing. With early access customer testing planned for 2024, Codexis is positioned for growth in the biotechnology market.
