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Codex DNA Q3 Revenues Grow 75 Percent, Company Acquires Eton Bioscience

NEW YORK – Codex DNA said Tuesday after the close of the market that its Q3 revenues increased 75 percent year over year to $2.8 million from $1.6 million. The total fell short of the consensus Wall Street estimate of $2.9 million.

San Diego-based Codex also announced Tuesday that it has acquired Eton Bioscience, a startup that offers synthetic biology products and services, including DNA sequencing and oligo synthesis, for $13 million in cash.

Q3 was the first full quarter for San Diego-based Codex as a public company. The firm completed a $122.7 million initial public offering in June.

Revenues for the quarter ended Sept. 30 consisted of $2.2 million in product sales, up 69 percent from $1.3 million in the same period in 2020, and $606,000 in royalties and other revenue, a 73 percent gain from $350,000 last year.

The benchtop synthetic biology systems maker's net loss totaled $9.8 million, or $.34 per share, compared to a net loss of $4.5 million, or $.89 per share, in Q3 of 2020. Analysts had expected net loss per share of $.54. Codex DNA computed its Q3 2021 net loss per share based on about 29.3 million weighted average common shares, compared to about 5 million shares for the year-earlier period.

R&D expenses rose 57 percent to $3.6 million during the quarter from $2.3 million a year ago, in part due to higher raw material, facility, and insurance costs.

SG&A expenses climbed to $7.1 million, more than double the $2.9 million last year, driven by a headcount expansion primarily in European commercial operations, as the firm is increasing its sales and marketing efforts and investing in R&D.

Codex DNA had $109.8 million in cash and equivalents on Sept. 30.

With the acquisition of San Diego-based Eton Bioscience, Codex expects to accelerate growth of its BioXp synthetic biology benchtop system in the systems biology market.

"This acquisition will allow our combined company to increase its commercial reach, deliver more robust services with broader customer applications, improve the quality and cost of certain raw materials, and support our highly strategic enzymatic DNA synthesis product development program," Codex CEO Todd Nelson said in a statement.

Eton Bioscience, which was founded in 2003 and is privately held, generated $5.1 million in revenues for the nine months ended Sept. 30. 

Codex DNA shares tumbled 7 percent in Nasdaq trading Wednesday to close at $8.59.