Codexis grants equity to new hires under inducement plan

Published 07/03/2025, 22:14
Codexis grants equity to new hires under inducement plan

REDWOOD CITY, Calif. - Codexis, Inc. (NASDAQ: CDXS), a prominent enzymatic solutions provider for therapeutics manufacturing with a market capitalization of $233.6 million, disclosed today the approval of equity grants for two newly hired employees. The announcement comes as the company’s stock, currently trading at $2.82, has experienced a challenging year, down nearly 43% year-to-date according to InvestingPro data. The inducement awards, sanctioned by the Compensation Committee of Codexis’ Board of Directors, are part of the company’s 2024 Inducement Plan, aimed at attracting new talent.

The equity grants include options to purchase 10,000 shares of Codexis common stock and 5,000 restricted stock units (RSUs) for each of the two new employees. The stock options have an exercise price that matches the closing price of Codexis’ common stock on the grant date according to Nasdaq listings. These options are set to vest over a four-year period, with a quarter of the shares vesting on the first anniversary of the vesting commencement date. The remaining shares will vest monthly, provided the employees remain with the company through those dates.

Similarly, the RSUs are scheduled to vest in equal annual installments over three years, contingent upon the employees’ ongoing service with Codexis. This structured vesting is designed to incentivize the new hires to contribute to the company over an extended period.

The announcement is in line with Nasdaq Listing Rule 5635(c)(4), which mandates public disclosure of equity grants as inducement for new employees to join a company.

Codexis specializes in the development and enhancement of high-performance enzymes through its proprietary CodeEvolver® technology platform. These enzymes are critical in manufacturing processes for small molecule and nucleic acid therapeutics, offering potential benefits such as increased yields, energy savings, and waste reduction. The company is also developing its ECO Synthesis™ manufacturing platform for RNAi therapeutics. While InvestingPro analysis indicates the company maintains strong liquidity with a current ratio of 4.18, it faces challenges with cash burn and profitability. For deeper insights into Codexis’s financial health and growth prospects, investors can access comprehensive analysis through InvestingPro’s detailed research reports, available for over 1,400 US stocks.

The information regarding the equity grants is based on a press release statement from Codexis, Inc. No further details on the identity of the new employees or their roles within the company were provided in the statement. InvestingPro analysis suggests the stock is currently in oversold territory, with 11 additional key insights available to subscribers, helping investors make more informed decisions about the company’s future prospects.

In other recent news, Codexis Inc. reported its fourth-quarter 2024 earnings, revealing a larger-than-expected loss per share and lower-than-anticipated revenue. The company posted an EPS of -$0.13, missing the forecast of -$0.04, and recorded revenue of $21.5 million, falling short of the expected $28.2 million. For the full year, Codexis reported revenue of $59.3 million, a decrease from $62 million in 2023, and a net loss of $65.3 million, an improvement from the $84.4 million loss in the previous year. Looking ahead, Codexis has provided revenue guidance for 2025 in the range of $64-68 million, anticipating double-digit growth. The company is also planning to secure a CDMO scale-up partner and is exploring the construction of a kilogram-scale GMP facility to enhance its production capabilities. Additionally, Codexis is focusing on expanding its enzymatic synthesis technology for siRNA production. Despite the financial setbacks, the company continues to emphasize its strategic initiatives, which it believes will drive future growth.

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