Q1 2024 Results
May 2, 2024
We engineer enzymes
Forward Looking Statements
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Actual results could differ materially from Codexis' current expectations for a variety of reasons, including due to the factors set forth in Codexis' most recently filed periodic report, including under the caption "Risk Factors," and Codexis' other current and periodic reports filed with the SEC. If any of these risks or uncertainties materialize, or if Codexis' underlying assumptions prove to be incorrect, actual results or levels of activity, performance or achievement, or any of the foregoing forward-looking statements, may vary significantly from what Codexis projected.
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1
Strong Fundamentals Enable Consistent Execution
01 Strong Q1 2024 Financial Results
02 Historic Technical Milestone Expected
03 Commercial Traction in Ligation Market
04 | ECO Synthesis Innovation Lab |
Build-Out Remains on Track | |
Remain on track for 10%+ YoY growth in product revenue
On track to achieve enzymatic synthesis of full-length oligonucleotides by TIDES USA
Secured first order of engineered double-stranded RNA ligase with a large pharma company
Venue to define and optimize manufacturing process for each customer before scale-up
05
Expanding Impact of Enzymes Across Full Manufacturing Lifecycle
Continued progress toward enzymatic synthesis of input materials and seamless incorporation of targeting moieties
2
ECO Synthesis Manufacturing Platform: Planned Presentation at Upcoming TIDES USA
Major milestone: very close to enzymatically synthesizing full-length oligonucleotide; expect to complete by TIDES USA
Share performance improvements across the ECO Synthesis manufacturing platform
Demonstrate successful incorporation of all modified RNA building blocks targeted for initial version of ECO Synthesis technology
Validates viability of the ECO Synthesis manufacturing platform
Shows customers we are well within range of synthesizing their siRNA therapeutics
3
ECO Synthesis
Technology: Modularity to Maximize Versatility
Core Technology
Sequential Enzymatic
Synthesis of Oligos
Composed of Modified
Building Blocks
Enzymatic
Attachment of
Targeting Moieties
Enzymatic
Synthesis of NQPs
& Starter Oligo
Ligation Approach
(dsRNA Ligase Program)
4
dsRNA Ligase Program: Multi-Pronged Commercial Strategy
Variety of Approaches to Meet Customers Where They Are
Ongoing
Customized dsRNA ligase programs
- Current programs in partnership with large pharma evaluating as a platform for all assets
- First commercial order from large pharma customer in Q1 2024
- Partners assessing ligation in parallel with PAC1 for late-stage assets
Launching at 2024 TIDES USA
dsRNA ligase screening service
- Leverages deep catalog of existing ligase variants
- Drives additional customized dsRNA ligase programs
- Enables scaling of promising assets already in clinical development
Expected to Launch in
2H 2024
ecoRNA ligase kit
- Puts ligase variants in customer hands for testing
In-house ligation capabilities
- First step toward becoming full- service provider of RNA oligonucleotides
Offerings Designed to Encourage Rapid, Seamless Customer Uptake
5
1Phosphoramidite chemistry
ECO Synthesis Innovation Lab: First Step to Becoming a Full-Service Provider
Establishing a Center of Excellence for Enzymatic RNA Synthesis
Offers Customers | Enables Process | Supports GMP |
Path to GLP- | Development & | |
Scale Up | ||
Grade Material | Optimization | |
- "Show and tell" bridges gap between | - Informs different process | - Enables creation of full CMC |
concept and implementation to | conditions required for each | roadmap from pre-clinical |
encourage adoption | customer's molecule | development through approval |
- Enables production of GLP-grade | - Assists with development of tech | - Facilitates transition to scale-up |
material via ligation and semi- | transfer protocol | with GMP capable CDMO partners |
enzymatic methods, leading to a | or our own facility | |
complete enzymatic process |
Continued Strong Engagement with Customers and Inbound Interest from Potential Partners
6
Strong Q1; On Track for FY Double Digit Product Revenue Growth
Fill pipeline with new programs
Early Development-Stage
R&D - Preclinical, Phase 1
R&D Revenue
Later Development-Stage
Phase 2/3 Clinical Trials
Product Revenue
Commercial
-Stage
Product Revenue
Continued progress filling | Encouraging engagement | |
pipeline with programs to | with new, mid-sized pharma | |
sustain future growth | and large biotech customers | |
Ongoing discussions for 2024 R&D services expected to translate into R&D revenues in 2H24
7
Q1 2024 Financial Results
$M, Except Per Share Amounts | Q1 2023 | Q1 2024 | |||
Product Revenue | $8.4 | $9.6 | |||
R&D Revenue | $4.6 | $7.5 | |||
Total Revenue | $13.0 | $17.1 | |||
Cost of Product Revenue | $4.5 | $4.9 | |||
Product Gross Margin | 46% | 49% | |||
R&D Expenses | $16.7 | $11.2 | |||
SG&A Expenses | $15.4 | $12.9 | |||
One-Time Restructuring Charge | $0.07 | -- | |||
Total Costs and Operating Expenses | $36.6 | $29.0 | |||
Loss from Operations | ($23.7) | ($11.9) | |||
Interest Income | $1.1 | $0.9 | |||
Other Income (Expense), Net | ($.03) | ($0.5) | |||
Loss Before Income Taxes | ($22.6) | ($11.5) | |||
Net Loss | ($22.6) | ($11.5) | |||
Net Loss Per Share, Basic and Diluted | ($0.34) | ($0.16) | |||
8
YoY Expense Trends ($M)
25
Down | ||||||||||||||||
20 | 32% | Down | ||||||||||||||
16% | ||||||||||||||||
16.7 | ||||||||||||||||
15 | 15.4 | |||||||||||||||
12.9 | ||||||||||||||||
12.2 | ||||||||||||||||
11.2 11.2
10
5
0
R&DSG&A
Q1 2023 | Q4 2023 | Q1 2024 | ||
$10
$9
$8
$7
$6
$5
$4
$3
$2
$1
$0
9
Q1 2024 Product Revenue
YoY Product Revenue ($M)
$9.6M | ||||
5% | ||||
$8.4M | 1% | |||
Life Sciences & other portfolio | ||||
11% | ||||
34% | programs | |||
7% | ||||
9% | Enzymes supplying clinical trials | |||
19% | Enzymes supplying generic products | |||
5% | ||||
72% | Enzymes supplying other | |||
commercially approved products | ||||
37% | ||||
Big 3 commercial pharma | ||||
manufacturing products | ||||
Q1 2023 | Q1 2024 |
Reiterating 2024 Product Revenue Guidance
- Q1 2024 product revenue up 14% YoY
- Q2 2024 expected to be lowest product revenue quarter of the year and down vs. Q2 2023
- Expect Q2 2024 to be roughly 60-70% of Q1 2024 product revenue
- Expect to recognize large, customized dsRNA ligase pharma order by EOY
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Codexis Inc. published this content on 02 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 02 May 2024 20:59:16 UTC.