CDXS

As Codexis Inc ($CDXS) Stock Plunges 66%, Major Shareholder Accumulates $6.4 Million in Shares Over Seven Months

04/17/2025 22:14

As biotechnology firm Codexis Inc ($CDXS) has experienced a sharp decline in stock price since early 2025, major shareholder Opaleye Management Inc has been consistently accumulating shares over several months, drawing significant investor attention. $CDXS reached around $5.80 in mid-December 2024 before turning downward, with a precipitous drop beginning in late February 2025. After closing at $3.04 on February 28, the stock continued falling to the $2.70 range in early March and hit a 52-week low of $1.97 on April 8, representing a staggering 66% loss in just six months. It has slightly rebounded to $2.12 as of April 16. Founded in 2002, Codexis specializes in enzyme engineering, leveraging its proprietary CodeEvolver platform to develop enzymatic solutions for RNA interference (RNAi) therapeutic manufacturing. The company has established partnerships with major pharmaceutical companies including Aldevron LLC and Pfizer, focusing on enhancing efficiency and safety in therapeutic manufacturing processes. Amid this sharp stock decline, hedge fund Opaleye Management has steadily purchased $CDXS shares over the past seven months. According to SEC filings, Opaleye has consistently acquired shares nearly every month from September 2024 through April 2025, notably increasing their purchase volume during periods of stock price weakness. Examining their buying pattern reveals significant transactions: on September 20, 2024, Opaleye purchased 1,055,000 shares for approximately $3.18 million in a single transaction. When the stock began its steep decline, Opaleye acquired about 195,000 shares for a total of $574,000 on February 28 and March 3, 2025. Furthermore, as the stock hit its lowest point on April 8, they added another 100,000 shares for approximately $198,000, accelerating their buying activity during the downtrend. In total, from September 2024 through April 2025, Opaleye Management has purchased approximately 2.2 million shares, investing around $6.4 million. This represents a substantial portion of Codexis's current market capitalization of approximately $190 million. This large-scale accumulation comes against a backdrop of Codexis's recent disappointing financial performance. In August 2024, the company reported second-quarter results with a loss of 32 cents per share and a 62.6% year-over-year revenue decline. While the third quarter showed signs of recovery with a 38.3% revenue increase, fourth-quarter results released in February revealed another 19.2% revenue decrease, falling 26.65% below analyst expectations. Financially, Codexis maintains approximately $73.5 million in cash with a current ratio of 4.18, indicating healthy short-term liquidity. However, its debt-to-equity ratio of 89.49% is relatively high, and the profit margin of -109.99% remains a concerning factor. In July 2024, Codexis announced a purchase agreement with Crosswalk Therapeutics for gene therapy assets, stating it would be eligible to receive future development and commercial milestone payments along with low-to-mid single-digit percentage net sales-based royalties. Industry experts suggest that Opaleye Management's continued share purchases may reflect confidence in $CDXS's long-term value. Indeed, the company's proprietary technology platform and strategic partnerships hold future growth potential, with analysts projecting revenues to increase to approximately $65.5 million in 2025 and $80 million in 2026. However, technological uncertainties in the biotechnology field, persistent operating losses, and recent underperformance remain significant challenges. Additionally, the broader weakness in the biotech sector and changing interest rate environment could pose additional risk factors. Key developments to watch for $CDXS include commercial progress of its ECO Synthesis platform and advancements in collaborations with major partners such as Aldevron and Pfizer. The upcoming first-quarter earnings report in May will also be a crucial indicator of the company's financial recovery. An analyst from a Boston-based investment advisory firm noted, "Opaleye Management's persistent buying could signal that the current stock price fails to reflect the company's intrinsic value. However, without supporting improvement in financial performance, further stock recovery may remain limited."