|Codexis confirms CodeEvolver Technology Transfer and License Agreement With Merck|
|By William Kent|
|Tuesday, 04 August 2015 17:22|
Leading developer of biocatalysts for pharma as well as chemical industries Codexis, Inc.(NASDAQ:CDXS) confirmed signing a CodeEvolver platform technology license agreement with Merck. Merck is known as MSD outside Canada as well as US.
This transaction would be the second CodeEvolver licensing agreement between Codexis and a big pharmaceutical company. This would take forward the firm’s business model of many revenue sources.
Codexis has given Merck a non-exclusive license for using its proprietary CodeEvolver protein engineering platform technology for development of novel enzymes which would be used in making Merck's pharmaceutical products.
After the finishing of technology transfer, Codexis' CodeEvolver protein engineering platform would be located at Merck research site.
The firm would also be getting about $18 million for next 1.5-2 years, $5 million of it would be given upon signing of the agreement as well as more $13 million which would be depending on satisfactory completion of some technology transfer milestones.
The firm would also be getting payments of about $15 million for every pharmaceutical ingredient through novel enzymes done by Merck using CodeEvolver technology as well as utilized for commercial manufacturing purposes.
John Nicols, President and CEO of Codexis, opined that the licensing transaction makes the firm’s eight-year relationship with Merck as well as further validating ability of CodeEvolver to implement some manufacturing processes in a cost effective manner.
Nicols added that the firm views licensing agreements involves the technology like the one with Merck as alluring component of the business model along with allowing to monetize the core technology
Rich Tillyer, senior vice president, and head of Global Chemistry, Merck Research Laboratories, opined that licensing agreement as well as technology transfer makes long standing collaboration in biocatalysis with Codexis.
Tillyer added that more access to technology positions would enable Merck to potentially expand on use of enzymes in pharmaceutical manufacturing processes.