Codexis (CDXS) has disclosed a new risk, in the Corporate Activity and Growth category.
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Codexis, having shifted its strategic focus, confronts a tangible risk that its existing license agreements may yield restricted revenue or no future value. The firm’s pivot away from the biotherapeutics sector, including ceasing investments in treatments for Fabry and Pompe diseases, necessitates the renegotiation of various license agreements. Despite efforts to restructure or terminate agreements to salvage future revenue—such as the amended terms with Nestlé for the enzyme CDX-7108—the outcomes remain uncertain. This process is not only expensive and potentially distracting for management but also poses a risk of negatively affecting Codexis’s business and financial performance.
Overall, Wall Street has a Strong Buy consensus rating on CDXS stock based on 4 Buys and 1 Hold.
To learn more about Codexis’ risk factors, click here.
