Codexis, Inc. announced it has entered into a purchase agreement with Nestle Health Science for CDX-7108, an investigational therapy for the potential treatment of exocrine pancreatic insufficiency (EPI). Under the terms of the agreement, Codexis will receive up to $45 million in potential milestone payments, including a $5 million upfront payment, as well as single-digit net-sales-based royalties. Codexis will receive up to an additional $5 million if Nestle Health Science exercises an option to purchase two additional early-stage enzymes being developed for EPI.

Nestle Health Science will be solely responsible for the continued development and commercialization of CDX-7108, including all associated costs. Codexis and Nestlé Health Science completed pre-clinical work for CDX-7108 and a Phase I clinical trial under the terms of a previous agreement. With this asset purchase agreement, Nestlé Health Science may continue advancing the compound through the development process.

About CDX-7108 CDX-7108 is a lipase variant specifically engineered to overcome the limitations of traditional pancreatic enzyme replacement therapy (PERT) deficiencies. PERT is the main treatment for exocrine pancreatic insufficiency (EPI), a debilitating condition of the gastrointestinal tract that is caused by conditions that impair pancreatic function, such as pancreatitis, pancreatic cancer, Cronh?s disease, celiac disease and cystic fibrosis. CDX-7108 was engineered to be highly stable to the acidic conditions of the stomach and resistant to proteases in the upper intestines.

Preliminary data from an interim analysis of the Phase I study proof-of-concept arm supported continued investigation into Phase II clinical studies.