Codexis Clinches Deal With Nestlé Health Science, Eyes Up To $45M Milestone In EPI Treatment Breakthrough
Portfolio Pulse from Akanksha Bakshi
Codexis, Inc. (CDXS) has entered into a purchase agreement with Nestlé Health Science, a division of Nestlé S.A. (NSRGY), for the enzyme CDX-7108, a potential treatment for exocrine pancreatic insufficiency (EPI). The deal could be worth up to $45 million in milestone payments for Codexis, including a $5 million upfront payment and additional sales-based royalties. Codexis may receive another $5 million if Nestlé exercises an option for two more early-stage enzymes. Nestlé Health Science will take over the development and marketing of CDX-7108. Following the news, CDXS shares rose by 4.52% to $3.47.
December 27, 2023 | 3:28 pm
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POSITIVE IMPACT
Codexis has secured a lucrative deal with Nestlé Health Science for its EPI treatment, CDX-7108, with potential milestone payments totaling up to $45 million, plus royalties. The company's stock has already reacted positively, with a 4.52% increase.
The agreement with Nestlé Health Science is a significant financial and strategic development for Codexis. The upfront payment, potential milestones, and royalties represent a substantial revenue opportunity. The positive stock movement reflects investor optimism about the deal's financial impact and the potential of CDX-7108.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100
NEUTRAL IMPACT
Nestlé S.A., through its Nestlé Health Science division, has entered into an agreement with Codexis for the enzyme CDX-7108, which could enhance its portfolio in the treatment of EPI. Nestlé will handle further development and marketing.
While the deal is likely to have a positive impact on Nestlé's health science division by expanding its treatment offerings, the financial scale of the agreement relative to Nestlé's overall business is smaller. Therefore, the short-term impact on Nestlé's stock may be neutral.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70