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Issue dated - 20th October 2005

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Codexis and Arch Pharmalabs strike manufacturing and supply deal

Redwood City

Codexis, a privately-held biotechnology company, announced the signing of a manufacturing and supply agreement with Arch Pharmalabs, a leading Indian generics pharmaceutical company, for a generic pharmaceutical intermediate. Arch will use a novel, cost-effective process developed using Codexis’ biocatalytic technology platform to manufacture an undisclosed pharmaceutical compound.

The process uses Codexis’ proprietary Molecular Breeding™ molecular evolution platform to produce pharmaceutical intermediates and active pharmaceutical ingredients at significantly lower cost and with fewer by-products and impurities than conventional methods. The process involves a biocatalytic system that is specifically developed to function optimally for the synthesis of the pharmaceutical intermediate.

Under terms of the agreement, Codexis has granted to Arch a non-exclusive license to the Codexis proprietary biocatalytic system and will transfer the process to Arch in exchange for upfront and milestone payments. Codexis will supply Arch with the ThorougBred catalyst and Arch will manufacture the pharmaceutical intermediate.

The partnership draws on Codexis’ expertise and track record, in applying its proprietary technology to high-value pharmaceutical products. Codexis has over a dozen partnerships with leading worldwide proprietary and generic pharmaceutical manufacturers.

Alan Shaw, Ph.D., President and Chief Executive Officer of Codexis said, “We are pleased to add Arch to our network of manufacturing partners, allowing Codexis to continue to focus on developing proprietary processes for high value products and develop critical customer relationships. We look forward to working with Arch, adding value to their manufacturing processes with proven, cost-effective technology.”

Ajit Kamath, Chairman and Managing Director of Arch added, “This relationship will help Arch gravitate towards manufacturing generic drugs using biocatalysts, which will lead to cost competence and cleaner processes. In addition, the partnership will help expand Arch’s position in the US market.”

Arch Pharmalabs is a Mumbai headquartered, multilocational company, which specializes in the manufacture of intermediates and active pharmaceuticals for the domestic pharmaceutical industry.

Codexis is a privately held biosciences company applying proprietary protein and strain engineering technologies to create novel process development solutions for efficient, cost-effective and environmentally friendly pharmaceutical manufacturing. Application of the Codexis technology can also generate new intellectual property opportunities for pharmaceutical manufacturers, which may extend a product lifecycle.

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