Codexis, Inc., a privately-held biotechnology company, today announced it has received the first milestone payment from Pfizer (NYSE:PFE) under a research collaboration established in July 2004 focused on applying Codexis' proprietary process research and development platform to some of Pfizer's small molecule therapeutics. The objective of the collaboration is to rapidly generate novel biocatalysts for use in manufacturing of Pfizer's products, improving Pfizer's R&D productivity while reducing the environmental footprint and manufacturing costs of the ultimate production processes. Financial terms were not disclosed.

"Our collaboration with Pfizer is exceeding expectations," said Alan Shaw, Ph.D., Codexis President and Chief Executive Officer. "Our proven pharmaceutical process re-engineering platform, based on proprietary DNA-shuffling technology, has the potential to transform small molecule process development and manufacturing. This milestone was achieved ahead of schedule, and further confirms the performance and utility of the Codexis patented technology to develop best-in-class pharmaceutical processes for our partners. This achievement, along with last week's announcement of a new collaboration with Bristol-Myers Squibb, continues to demonstrate the contribution of Codexis technology to major worldwide pharmaceutical companies."

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 collaboration may involve 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. In addition, processes using Codexis' technology have the potential to dramatically improve environmental impact and enhance product quality by reducing impurities, unwanted by-products and hazardous wastes.

About Codexis, Inc.

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 10 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