Codexis announced a lease for a 34,000‑square‑foot GMP manufacturing facility in Hayward, California, that will enable the company to expand its internal capacity for GMP‑grade production of siRNA and other oligonucleotides using its ECO Synthesis platform.
The new plant is a key step in Codexis’s strategic shift toward RNAi therapeutics. By building a dedicated GMP facility, the company can offer manufacturing services to early‑clinical developers, support the scaling of its proprietary enzymes, and accelerate the commercialization of its enzymatic oligonucleotide technology. The move is underpinned by a recent Merck agreement that provides a non‑dilutive cash infusion and reinforces Codexis’s goal of achieving cash‑flow breakeven by the end of 2026.
In its most recent earnings, Codexis reported Q3 2025 revenue of $8.6 million, a 32.8% decline from $12.83 million in Q3 2024. The shortfall was driven by variability in customers’ manufacturing schedules and the progression of clinical trials, as well as pricing pressure in the small‑molecule biocatalysis business. Despite the revenue drop, the company’s gross margin improved to 64% from 61% year‑over‑year, reflecting a shift toward higher‑margin products within its portfolio.
Management emphasized the strategic importance of the new facility. President and CEO Alison Moore said the plant “marks a fundamental pivot in Codexis’s transformation into a development partner of choice for enzymatic manufacturing of oligonucleotides.” CFO Georgia Erbez noted that Codexis expects to “make or slightly exceed the top end of our guidance range for 2025” and that the company has “reduced sales and marketing efforts in the small‑molecule biocatalysis segment to refocus on the ligase and ECO Synthesis business lines.”
The market reaction to the earnings miss was muted. Investors focused on the revenue shortfall and the EPS miss of $0.22 versus the consensus estimate of $0.15, which underscored concerns about the company’s ability to meet its financial projections while pursuing its strategic transformation.
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