Codexis stock drops as forecast comes in below Street estimate

Codexis Inc.
CDXS,
-4.74%
shares fell in the extended session Thursday after the biotech company lowered its revenue forecast for the year and said that sales from Pfizer Inc.
PFE,
-0.77%
would come in at the low end of an expected range. Codexis shares dropped more than 20% after hours, following a 4.7% decline in the regular session to close at $12.07. The company said it now expects full-year revenue of $135 million to $141 million, compared with a previous forecast of $152 million to $158 million, with second-quarter revenue around $38 million, as R&D partnerships are expected to bring in less money than initially thought. Analysts surveyed by FactSet had full-year revenue of $155.4 million, with $40.1 million of that coming from the second quarter. Codexis said that it now expects product revenue of $112 million to $118 million for the year, with product revenue from Pfizer to be at the low end of a previous $75 million to $80 million range. “Our prior total revenue guidance for 2022 anticipated more R&D revenue from these partnerships in 2022 than we believe is now possible at this point in the year, due to a mix of fewer new deals being signed in 2022 and lower-than-anticipated revenue from existing customers,” said John Nicols, Codexis chief executive, in a statement. “As a result, we are reducing our 2022 total revenue guidance to reflect our updated expectations.” The company is scheduled to report quarterly results on Aug. 4.