Codexis, Pfizer Collaboration Advances Ahead of Schedule

Codexis, Inc., a privately-held biotechnology company developing cost-effective manufacturing processes for the pharmaceutical industry, today announced it achieved the second technical milestone in just over three months in its therapeutics research collaboration with Pfizer (NYSE:PFE). This achievement triggered the second milestone payment from Pfizer since June. Both milestones, based on pre-defined success criteria, were met ahead of schedule.

The collaboration, established in July 2004, applies Codexis’ proprietary process research and development platform to some of Pfizer’s small molecule therapeutics. The objective is to rapidly generate novel biocatalysts for the manufacture of Pfizer’s products, improving Pfizer’s R&D productivity while reducing manufacturing costs and the environmental footprint of the ultimate production processes. The first milestone payment was announced June 1, 2005. Further financial terms were not disclosed.

“This is the second milestone achieved ahead of schedule in as many attempts,” said Alan Shaw, Ph.D., Codexis President and Chief Executive Officer. “We are delighted at the rapid progress in this partnership. It further demonstrates the significant productivity improvements possible with Codexis proprietary pharmaceutical process re-engineering platform. These improvements translate to potential new revenue and cost-reduction opportunities for our partners – now numbering more than a dozen leading pharmaceutical and industrial companies worldwide.”

The multi-year, non-exclusive agreement includes upfront payments, technology access fees and milestone payments to Codexis, which could total up to $40 million over the first few years of the agreement. The current collaboration involves multiple projects per year, with each product generating milestone payments, as well as ongoing commercial payments on sales. If successful, the collaboration could generate additional milestones and commercial payments. Under the agreement announced last year, Pfizer also made a strategic investment of $10 million in Codexis.

Pfizer is incorporating Codexis’ proprietary technologies into the process development and manufacturing of its human therapeutics. The Codexis technology can significantly lower pharmaceutical manufacturing costs, increase process development productivity and create novel intellectual property opportunities for Pfizer products.

Codexis is a privately held biosciences company applying proprietary protein and strain engineering technologies to create novel process development solutions for efficient, cost-effective and environmentally friendly pharmaceutical manufacturing. Application of the Codexis technology can also generate new intellectual property opportunities for pharmaceutical manufacturers, which may extend a product lifecycle. The company has more than 12 strategic alliances, including the agreement with Pfizer, and more than 15 products and processes in development internally and at leading worldwide life sciences companies. Codexis, Inc. began operations as an independent company in 2002.

Codexis is a trademark of Codexis, Inc.

Contact:
Codexis, Inc.
Tassos Gianakakos
Sr. Vice President, Business Development
T. +1-650-298-5423
F. +1-650-298-5449
tassos.gianakakos@codexis.com