Is Codexis (CDXS) Halal to invest in?

October 27, 2021

Table of Contents

How much of Codexis’ revenue comes from haram?

Codexis uses computational technologies to develop enzymes and other proteins for pharmaceutical, food, and medical applications.

Codexis earns its revenue primarily from the following revenue sources:

Product Revenue:

Includes revenue generated from selling biocatalysts, pharmaceutical intermediates, and Codex® biocatalysts panels and kits.

Research and Development Revenue:

Includes revenue generated from exclusivity fees, research service fees, milestone payments, royalties, and optimization and screening fees for providing licenses and access to its technologies to other companies.

The contributions from each of Codexis’ revenue segments in their Q2 2021 report were as follows:

Practical Islamic Finance concludes:

None of Codexis’ revenue comes from anything inherently haram.

Does Codexis rely on interest to operate?

	Year-to-Date for period ended 6/30/2021	Fiscal year ended 12/31/2020	Fiscal year ended 12/31/2019
Interest Income	$382	$405	$1,287
Total Revenue	$43,485	$69,056	$68,458
Interest Expense	$63	$156	$656
Total Expenses	$57,126	$92,976	$81,007
Interest Income / Revenue	0.88%	0.59%	1.88%
Interest Expense / Total Expense	0.11%	0.17%	0.81%

*Numbers in thousands, U.S. dollars
*Interest expense is included with other expense, net in income statement

Practical Islamic Finance concludes:

Riba is used but not relied upon in Codexis’ operations.

What is Codexis’ Environmental, Social, and Governance (ESG) Impact?

Environment

No notable environmental highlights.

Social

Codexis has a Glassdoor rating of 3.4 out of 5 from over 60 current and previous employees compared to a 3.3 average for all other Glassdoor rated companies.

Governance

No notable governance highlights.

Practical Islamic Finance concludes:

Codexis has a net positive ESG impact.