Codexis, Inc. (CDXS): This Biotech Stock Keeps Investors Patiently Waiting

The company’s enzymes could significantly improve biomanufacturing and aid pharma companies through a difficult regulatory process. This could be an exciting opportunity for Codexis, although it is still an early development and likely years away from producing meaningful contributions.

Foolish bottom line
Attracting new partners and commercializing cellulase enzymes and detergent alcohols are absolutely critical developments to keep an eye on. Investors should not grow content with Merck & Co., Inc. (NYSE:MRK)providing the bulk of revenue for 2013: A recent study found significant health risks associated with Januvia/Janumet. Even worse, new classes of drugs are beginning to hit the market, which could cut demand for Merck’s darling franchise. That could knock Codexis to new lows if it cannot create new relationships. Nonetheless, if everything works out in the end, then investors may be able to look back and wonder how the company could have been valued at $70 million. Just remember to give healthy consideration to the risks.

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Fool contributor Maxx Chatsko owns shares of Codexis. Check out his personal portfolio, his CAPS page, or follow him on Twitter @BlacknGoldFool to keep up with his writing on energy, bioprocessing, and emerging technologies.The Motley Fool has no position in any of the stocks mentioned.

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