Dyadic issues warning over license agreement

Codexis, a developer of engineered enzymes for biofuel production, has received notice from Dyadic International alleging it is in breach under a license agreement established by the companies in 2008.

Codexis had obtained a non-exclusive license relating to Dyadic's C1-based proprietary fungal expression technology for the production of enzymes to make products in the fields of biofuels, certain pharmaceuticals, chemicals and the conversion of cellulosic biomass into fermentable sugars for use in non-fuel products.

The company agreed to pay Dyadic certain license issuance fees, milestone payments and fees based on volume of enzyme products sold or manufactured using the technology.

According to the notice, Dyadic intends to terminate the agreement if the breach is not reversed. Codexis believes that it is not in breach of the license agreement and that the notice is unjustified. It is considering all available remedies to protect its interests under the Dyadic license agreement.

Codexis currently uses this license solely in connection with its CodeXyme cellulase enzymes. It does not expect any termination of the Dyadic license would have any impact on its current pharmaceutical and CodeXol detergent alcohol businesses.