BOSTON—Opaleye Management Inc., a significant shareholder in Codexis Inc. (NASDAQ:CDXS), recently increased its stake in the company. The investment firm purchased 25,000 shares of common stock on October 25, at an average price of $2.9088 per share, totaling approximately $72,720.
Following this transaction, Opaleye Management holds a total of 8,545,000 shares in Codexis. The shares are owned indirectly through Opaleye, L.P., with Opaleye Management serving as the investment manager. The firm disclaims beneficial ownership of the shares except to the extent of its pecuniary interest.
The transaction was disclosed in a filing with the Securities and Exchange Commission, signed by James Silverman, President of Opaleye Management, on October 28.
In other recent news, Codexis, Inc. has seen significant changes within its executive team. Alison Moore, Ph.D., who brings extensive experience in the biotech and pharmaceutical industry, has been appointed as the new Chief Technical Officer. In addition, Georgia Erbez has stepped into the role of Chief Financial Officer. Both have entered into Change of Control and Severance Agreements with Codexis, Inc.
The company has also secured $31 million through its at-the-market offering, extending its cash runway into 2027. In terms of financial performance, Codexis reported Q2 2024 revenues of $8 million and anticipates double-digit product revenue growth for 2024, driven by its pharmaceutical manufacturing business and the ECO Synthesis platform. Analysts from Piper Sandler maintained their Overweight rating for Codexis, reflecting confidence in the company's strategic focus.
In other recent developments, Codexis has inked an enzyme license deal with Alphazyme, underlining the company's commitment to growth and innovation. Meanwhile, Artiva Biotherapeutics, Inc. announced the addition of Dr. Moore to its Board of Directors, aiming to leverage her expertise as it continues to develop its lead program, AlloNK®. These are all recent developments regarding Codexis, Inc. and Artiva Biotherapeutics, Inc.
InvestingPro Insights
Opaleye Management's recent purchase of Codexis Inc. (NASDAQ:CDXS) shares comes at a time when the company's stock has experienced significant volatility. According to InvestingPro data, Codexis has seen a 1-week price total return of -11.55%, indicating a recent downturn. This aligns with an InvestingPro Tip noting that the stock has taken a big hit over the last week.
Despite the short-term decline, Codexis has shown impressive long-term performance, with a 1-year price total return of 87.74%. This substantial gain suggests that Opaleye Management may be capitalizing on a temporary dip in share price.
However, potential investors should be aware of some financial challenges facing Codexis. An InvestingPro Tip highlights that the company is quickly burning through cash and is not profitable over the last twelve months. This is reflected in the company's operating income margin of -87.22% for the last twelve months as of Q2 2024.
On a positive note, Codexis holds more cash than debt on its balance sheet, which could provide some financial flexibility as it navigates its current challenges. This information, along with 7 additional InvestingPro Tips, is available for subscribers looking to gain deeper insights into Codexis's financial health and market position.
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