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The payment reflects the expanded collaboration agreement between RoyalDutch Shell plc and Codexis, announced November 6, 2007, for the developmentof new super enzymes to convert biomass to fuel. The expanded agreement coversfive years of research collaboration. In addition Shell made an equityinvestment in Codexis as part of a larger financing. This financing reducesMaxygen's ownership in Codexis to approximately 25% of Codexis' outstandingshares. Maxygen owns approximately 8.9 million shares of various classes ofCodexis preferred stock convertible into common shares and shares of Codexiscommon stock. The convertible preferred stock of the most recent Codexisfinancing is senior in liquidation preference to Maxygen's shares and was soldat a price of $8.50 per share.
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"We are pleased with the continuing success and increasing value ofCodexis' business," said Russell Howard, chief executive officer of Maxygen."Leveraging Maxygen's MolecularBreeding(TM) technology outside thepharmaceutical industry has provided us with a good source of non-dilutivefinancing to help drive our protein therapeutic business."
Maxygen established Codexis in 2003 as a spin-out company, and granted toCodexis exclusive licenses to use Maxygen's MolecularBreeding(TM) directedevolution platform for certain chemical applications. In December 2006,Maxygen expanded the scope of exclusive licenses previously granted to includecertain applications relating to energy, including biofuels.
About Maxygen
Maxygen is a biopharmaceutical company focused on developing improvedversions of protein drugs. We look for opportunities where our proprietaryprotein modification technologies can address significant therapeutic needs.Our lead program, MAXY-G34, is designed to be an improved version of G-CSF forthe treatment of neutropenia. MAXY-G34 is currently in Phase II clinicaltrials. Our preclinical pipeline includes a novel Factor VIIa for thetreatment of hemophilia. Maxygen's approach to drug discovery and developmentmay allow us to leverage the established development and regulatory paths ofapproved drugs. We believe this advantage translates to a greater chance ofsuccessfully bringing important new drugs to market. http://www.maxygen.com
Forward-Looking Statements
This news release contains forward-looking statements about our researchand business prospects, including whether we will receive any future paymentsfrom Codexis relating to the use of its licensed rights in the energy fieldand whether we will realize any value relating to our ownership of Codexissecurities. Such statements involve risks and uncertainties that may causeresults to differ materially from those set forth in these statements. Amongother things these risks and uncertainties include, but are not limited to,the changing research and business priorities of Codexis and/or Shell, overwhich we have no control; whether Codexis will receive any payments, throughits collaboration agreement with Shell or otherwise, relating to the use ofits licensed rights in the energy field; and the inherent uncertainties indeveloping applications relating to energy, including biofuels. These andother risk factors are more fully discussed in our Form 10-K for the yearended December 31, 2006, including under the caption "Risk Factors", and inour other periodic SEC reports, all of which are available from Maxygen athttp://www.maxygen.com. Maxygen disclaims any obligation to update or reviseany forward-looking statement contained in this release as a result of newinformation or future events or developments.
SOURCE Maxygen, Inc.
