Codexis signs major technology license with GlaxoSmithKline; could earn up to $25M in 2 yrs, more later

From California, we hear that Codexis has announced the signing of a platform technology license agreement with GlaxoSmithKline (GSK). The company’s stock rose 43% on the news.

The agreement in detail

Here’s the skinny: Under the terms of the agreement, Codexis granted GSK a license to use Codexis’ proprietary CodeEvolver protein engineering platform technology in the field of human healthcare. The license allows GSK to use Codexis’ platform technology to develop novel enzymes for use in the manufacture of GSK’s pharmaceutical and health care products. GSK may also use the licensed technology to develop new therapeutic, diagnostic and prophylactic products in the human health field. Upon completion of technology transfer, GSK will have Codexis’ state-of-the-art CodeEvolver protein engineering platform installed at its Upper Merion, Pennsylvania research and development site.

Codexis is eligible to receive up to $25 million over approximately the next two years, $6 million of which will be paid upfront shortly after signing and an additional $19 million subject to satisfactory completion of technology transfer milestones. Codexis also has the potential to receive numerous additional milestone payments that range from $5.75 million to $38.5 million per project based on GSK’s successful application of the licensed technology. In addition, Codexis will be eligible to receive royalties based on net sales, if any, of a limited set of products developed by GSK using Codexis’ CodeEvolver protein engineering platform technology.

First protein engineering license in healthcare

The agreement marks the first time that Codexis has licensed its protein engineering platform technology to any party in the healthcare field, and reinforces both companies’ belief that biocatalysts, engineered by Codexis’ CodeEvolver technology, may increasingly be deployed to reduce the cost and increase the efficiency of pharmaceutical manufacturing. The use of biocatalysts to manufacture pharmaceuticals has the potential to reduce the number of manufacturing steps, reduce the use of hazardous chemicals and the production of toxic waste, and reduce the energy intensity of the process.

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