REDWOOD CITY, Calif. (AP) — Industrial enzyme developer Codexis Inc. said Tuesday that the Food and Drug Administration has approved the company’s process for manufacturing the active pharmaceutical ingredient in Merck’s diabetes drug Januvia.

The news sent shares of Codexis up more than 19 percent in afterhours trading.

Codexis co-developed a way of making sitagliptin that makes the process more environmentally friendly and efficient.

The process also indicates the potential for improving the increase in yield of the component, while lowering the amount of waste products.

Codexis shares rose 72 cents, or 19.2 percent, to $4.48 in extended trading on Tuesday. The stock ended regular trading up 3 cents at $3.76.