CDXS

Image source: The Motley Fool. Tuesday, Aug. 11, 2026 at 4:30 p.m. ET President and Chief Executive Officer - Alison Moore Chief Financial Officer and Chief Business Officer - Georgia L. Erbez Chief Scientific Officer - Stefan Lutz Senior Vice President, Sales and Marketing - Britton Jimenez Operator: Greetings and welcome to the Codexis Second Quarter 2026 Financial Results Conference At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. As a reminder, this conference is being recorded. Is now my pleasure to introduce Georgia L. Erbez, Chief Financial Officer and Chief Business Officer. Georgia L. Erbez: Thank you. Operator: You may begin. Georgia L. Erbez: Thank you, operator. With me today are Alison Moore, President and Chief Executive Officer Stefan Lutz, Chief Scientific Officer and Britton Jimenez, Senior Vice President, Sales and Marketing. During this call, management will be making a number of forward looking statements within the meaning of the Private Securities Litigation Reform Act of 2000, including our guidance for 2026 revenue, anticipated milestones and product launches, facility expansions technical milestones, and public announcements related thereto as well as our strategies and prospects for revenue growth path to profitability and successful execution of current and future programs and partnerships. To the extent that statements contained in this call are not descriptions of historical facts regarding Codexis, They are forward looking statements reflecting the beliefs and expectations of management as of the statement date 08/11/2026. You should not place undue reliance on these forward looking statements because they involve known and unknown risks, uncertainties, and other factors that are, in some cases, beyond Codexis' control and that could materially affect actual results. Additional information about factors that could materially affect actual results can be found in Codex's filings with the Securities and Exchange Commission. Codexis expressly disclaims any intent or obligation to update these forward looking statements except as required by law. And now I will turn the call over to Alison. Alison Moore: Thank you, Georgia, and thanks, everyone, for joining. Codexis generates manufacturing solutions using high performance engineered enzymes The investment of over 20 years of our expertise is playing out in our pharma biocatalysis pipeline which supports 14 commercial products and a pipeline of programs in Phase II and III clinical developments. This expertise has also enabled the creation of the ECOsynthesis manufacturing platform a scalable aqueous process for the production of oligonucleotides I am pleased to share our progress through the first half of 2026, and I am excited for the rest of the year and beyond. Today, we reported solid financial results for the second quarter of 2026, with revenue of $14.9 million Our recent successful financing, which closed 2 weeks ago, resulted in a capital raise of $25 million of net proceeds, This provides us with greater stability and flexibility as we pursue our strategic goals. Georgia will give us more details on our financial achievements later in the call. An important highlight of the quarter was the TIDES U.S. Conference in May, where we shared important new data on our ECOsynthesis technology. Codexis presented data demonstrating full length siRNA synthesis with precise control of phosphorothioate chemistry using our technology platform. Stereochemistry plays an important role in how oligonucleotides perform. Stefan Lutz, our Chief Scientific Officer, will provide additional details on the growing capabilities of our platform later in the call. I am also pleased to report that the construction of our GMP manufacturing facility is proceeding according to plan. This facility is a core component of our strategy to enable the adoption of ECOsynthesis into the pipelines and supply chains of our customers. This facility will deliver GMP material to support IND filings and supply clinical trials. And deepen Codexis production scale platform expertise. Our building permit application will be submitted momentarily and our manufacturing equipment has been ordered. We will begin construction following approval of the permit. The cost of the construction for this project approximately $25 million This investment underscores our long term commitment to supporting product development, scale up and manufacturing for our customers. Years ago, the pioneering science of Codexis transformed the opportunities available to process chemists, enabling the manufacture of complex small molecules chemistries. This innovation has now become standard practice in the production of small molecule medicines. Today, we believe that the ECOsynthesis platform will similarly revolutionize the ability to generate large scale quantities of siRNA medicines making this advanced modality accessible to patients across all therapeutic areas. ECOsynthesis, leverages enzymatic solutions, offers a scalable alternative to the current solid phase organic synthesis technology. The latter is not sufficiently scalable and requires enormous amounts of solvent, posing significant challenges. As demand for siRNA is expected to increase 30-fold by 2035. This manufacturing bottleneck is anticipated to emerge within the next 3 years. Particularly as large phase 3 cardiovascular trials reach their conclusions. As communicated at TIDES, the industry recognizes the limitations of current production methods. And acknowledges the need for radical new technologies. The impact of the ECOsynthesis platform is becoming increasingly clear as more organizations embrace enzymatic approaches. Codexis is in the leading position to industrialize this important new method. I will now turn the call over to Stefan for more details on our TIDES data. Stefan Lutz: Thank you, Alison. TIDES U.S. in May we presented new data demonstrating on how our ECOsynthesis manufacturing technology is not only advancing existing, but also unlocking new capabilities for production of siRNA therapeutics Drug developers currently have limited control over phosphorothioate stereochemistry as existing chemical manufacturing methods produce complex mixtures that vary in therapeutic potency and require time and labor intensive downstream processing. In contrast, the engineered enzymes that power ECOsynthesis deliver products with defined stereochemical configurations offering users unprecedented control within a scalable oligonucleotide manufacturing process. These stereo pure molecules can confer overall improved product quality enhanced therapeutic potency and streamline manufacturing by reducing process complexity. We continue to explore the biological impact of stereo control and believe that this capability promises a significant advantage for customers seeking to optimize for performance manufacturability and differentiation of their siRNA assets. In addition, we introduced Starterless ECOsynthesis, a novel capability to launch RNA synthesis from a single nucleotide rather than a chemically synthesized starter oligonucleotide. Although still in the R&D stage, the starterless approach is a technically simpler solution initiating oligonucleotide synthesis and lowers cost for siRNA manufacturing. This innovation is particularly relevant as the industry increasingly explores fragment based assembly strategies in which shorter oligonucleotides are ligated to produce full length siRNA therapeutics. In this context, eliminating the need for starter oligonucleotides offers even greater economic and operational advantages. Feedback from business and CMC representatives at the conference has reinforced our view that Starterless ECOsynthesis marks a material advancement in enzymatic siRNA manufacturing. We will provide updates on this technology as additional data become available. More broadly, our innovations presented at TIDES have generated significant interest across the industry and have resulted in additional engagement with prospective customers and strategic partners. But I will let Britton speak to that in a minute. 1 message that came through clearly at this year's Tides Conference, as companies envision the future of RNA medicines, they recognize the need for manufacturing technologies that can overcome the limitations of traditional solid phase synthesis. Enzymatic approaches including ligation and sequential synthesis are integral to these future strategies. Our focus remains on executing against our development objectives and demonstrating that ECOsynthesis can be industrialized at the scale required to support broader adoption of siRNA therapeutics across larger patient populations. We believe our unique combination of product quality, stereochemical precision and scalable enzymatic production represents a compelling competitive advantage in the emerging oligonucleotide manufacturing landscape. Our customers are an invaluable source for new ideas and we listen to what matters to them. I will now turn the call over to Britton for an update on our commercial activities. Britton Jimenez: Thanks, Stefan. The number of RNA medicines in development is expanding at an estimated rate of at least 10% per year with over 100 product candidates in clinical trials and more than 400 in preclinical development. It is broadly recognized that current production technologies will not be able to keep up with future demand. The rapidly changing landscape for siRNA is felt most keenly by CDMOs who supply the vast majority of oligonucleotide medicines today using solid phase organic chemistry. The ability to scale production is complicated by technical challenges associated with solid phase synthesis and further burdened by the capital cost of building new facilities. It should be no surprise that some of our most motivated customers are CDMOs. For each of the 3 CDMOs we have contracts with, we have completed small scale technology transfers into their facilities so that they can assess ECOsynthesis in house. The most advanced of those assessments has been completed and we are in negotiations for a long term commercial contract. We are very excited about this prospect as these relationships will be revenue generating and will create additional channels for adoption and scaling of the ECO synthesis technology. Our engagement with biopharmaceutical companies continues to flourish. Our specific objectives are to promote adoption of our technology into therapeutic asset pipelines, in which we supply preclinical and clinical material and support IND filings. In addition, our technology can be integrated into an innovator's company's production environment. In the last quarter, we have been engaged with the pioneer siRNA companies in addition to other large biopharma companies to progress partnerships with these objectives. Our small molecule biocatalysis business remains stable and profitable and it benefits from some recent new product approvals that have higher margins than the old legacy products. We continue to support 14 commercially approved products that are dependent on our enzymes, including 4 products that receive regulatory approval in 2026. Another product received a label expansion significantly increasing the market potential of that drug. After years without a new product approval, this activity has resulted in a renewed growth trend. The product pipeline also remains robust with 15 programs in Phase II or III clinical development and data readouts expected on 7 clinical trials in the next 2 years. We are excited for our prospects to demonstrate sustained steady growth in this side of the business. With that, I will now turn the call over to Georgia for a discussion of our financial results for the second quarter. Georgia L. Erbez: Thanks, Britton. Good afternoon, everyone. Today, I will provide a brief overview of our financial results here on the call and invite you to review our 10 Q filed today for a more detailed discussion. Total revenues were 14.9 million for the second quarter of 2026 compared to $15.3 million in the second quarter of 2025. We are particularly pleased with the revenue performance in this year's second quarter as we experienced significant improvement in our biocatalytic enzyme business. Which we see as a return to growth. Product gross margin was 73% for the second quarter of 2026, was an improvement over the gross margin in the first quarter of 26, and over the gross margin for the entire year for 2025. The strong result for the second quarter was primarily driven by higher sales of more profitable products. Due to this sustained improvement in the first half, we now expect gross margins to improve into the high 60s for the full year 2026. Research and development expenses for the second quarter of 2026 were $11.7 million compared to $13.8 million in the second quarter of 2025. The decline was largely driven by lower employee related costs and reduced spending on outside services and lab supplies. Selling, general and administrative expenses were $10.9 million for the second quarter of 2026, compared to $12.3 million in the prior year period. The decline was primarily due to lower employee related costs associated with reduced headcount, lower stock based compensation expenses, and lower allocable costs. Controlling expenses remains a focus of ours, to ensure we are using our capital efficiently and in functions that bring the highest and largest positive impact to the success of our business. Net loss for the second quarter of 2026 was $12 million compared to a loss of $13.3 million for the second quarter of 2025. We continue to expect 2026 revenue in the range of $70 million to $76 million Similar to the quarterly trends we saw last year, we expect 2026 revenue to be more heavily weighted towards the second half of 2026 versus the first half. Codexis ended the second quarter of 2026 with $54.9 million in cash, cash equivalents and short term investments, which compares to 78.2 million at the end of 2025. Subsequent to the closing of the second quarter, we successfully completed an equity financing that raised a total of $25 million net of expenses. Resulting in a pro forma cash balance of approximately $79.8 million We expect that our current cash will be sufficient to fund our planned operations capital expenditures through 2028 extending our previous cash runway guidance. As a reminder, our financial guidance and cash runway projection includes the expenses associated with the build out of our GMP facility. With that, I will now turn the call back over to Alison. Alison Moore: Thank you, Georgia, Stefan, and Britton. Codexis ECOsynthesis technology is already demonstrating its potential to alter the landscape of oligonucleotide manufacturing and enable siRNA to reach indications with large patient populations. Our next steps are to advance the industrialization that will support deployment of our technologies into customers' pipelines. For investors, we want to show proof of success. We are working hard to sign higher value contracts as well as innovative licensing deals. We will also be focused on financial performance by striving to meet our revenue targets while being mindful of our expenses. We will continue to use our many years of experience in engineered enzymes to sustain and drive innovation in the field of RNA medicine. We are committed to achieving our goals and milestones for 2026. This includes beginning construction on our GMP production facility progressing toward 500-gram pilot scale production of siRNA in the Eco Innovation Lab, expanding a CDMO scale up partnership for ECOsynthesis, securing the ECOsynthesis raw materials supply chain, and maintaining the pharma biocatalysis business at healthy gross margins. I believe 2026 will be the year that ECOsynthesis achieves the scale and performance metrics that prove it to be the technology of choice for our customers' siRNA medicine. We are excited by our prospects and proud of the dedication and achievements of the entire Codexis team who have been instrumental in making the ECOsynthesis technology a reality. We would be happy to take your questions. Operator. Thank you. Operator: And ladies and gentlemen, at this time, we will conduct the question-and-answer session. And your first question comes from Allison Bratzel with Piper Sandler. Please state your question. Allison Bratzel: Hey, guys. Good afternoon and thank you for taking the question. Just following up on the stereochemistry data and the single nucleotide initiation capabilities, you guys showed at TIDES U.S. Could you just talk more to what has customer reaction actually looked like since then? Has that translated into new engagements? And then separately, could you talk to what kind of updates you would expect to be able to show at TIDES Europe later this year? And just what kind of customer conversations that could foster? Thank you. Alison Moore: Thank you very much, Ellie, for the question. I am going to have Stefan say a little bit more about the technology and what to expect next, and then we will have Britton speak to what is happening commercially as a result. Stefan Lutz: Yes. Hi, Alison. On TIDES Europe, I think we really see an opportunity to continue the story from TIDES U.S. talking about the capabilities of the ECOsynthesis platform. But also maybe address some of the data on the biological impact of stereo control Yeah. Britton Jimenez: And to build on Stefan's comments there, from a customer interaction, actually quite a bit of excitement came from TIDES U.S. Around both the stereochemistry control and the starterless initiator. From the stereochemistry control perspective, that is really allowed for us to engage with several customers that believe both in the value of stereochemistry control from a better therapy perspective, but also from a quality and a better product. Quality perspective. So those conversations just have advanced We are in several conversations with customers around that and how they want to deploy this type of technology within to their pipelines. So those conversations have been really, really positive. From a starter list perspective, because this was a brand new technology and enhancement to our platform. A lot of those-- the conversations we are having have just started, but they are all significantly positive. We have actually had several past customers that were interested in our technology have now really changed their position where they want to advance and test our technology because of this new Starterless tech capability that we have. So overall, extremely positive. And it is really allowed us to advance our conversations further with these customers. Alison Moore: Thank you. Operator: And your next question comes from Kristen Kluska with Cantor Fitzgerald. Please state your question. Kristen Kluska, your line is open. Please state your question and unmute yourself. Jenny: Hi, sorry. This is Jenny on for Kristen's line. Thank you so much for taking my question. So my first question is sort of how might the advances in stereochemistry allow partners to lower dosage, maybe save money, and potentially improve upon safety measures. Alison Moore: Thank you for the question, Jenny. I think maybe Stefan could at least at a high level, describe some of our own work that we are doing there. And then maybe just recap what the field understands about the potential. Stefan Lutz: Yep. So when it comes to stereochemistry, you know, these drugs operate within the cell. The cellular environment is chiral, has stereo control. And so these drugs certainly have the potential to also play to that to that nature. it is also a good indication that it is small molecule API field, enanti cell or the stereo chemistry has shown to be an important factor in the therapeutic efficacy of assets. As far as playing to other strength of offering stereo control, I think it is important to highlight the manufacturing advantages that such a capability brings. The reduction in process complexity as the products resulting from the synthesis are much more narrowly defined and therefore simplify downstream processing, which today involves a very elaborate purification chromatography process Those aspects certainly factor into advantages that we see of controlling stereochemistry. As well. And then, we have also ongoing work here at Codexis where we are evaluating ourselves in biological assays. The opportunity that is related specifically to activity. Or the potential of activity improvement? Jenny: Great. Thank you so much. And I was wondering if you could maybe talk a little bit about how much you do you believe the desire to use precise control with stereochemistry is going to lead you to find potential partners, what are the key data or analysis that truly suggest its added benefits, and then why will this matter as siRNA therapeutic development becomes more competitive in the upcoming years? Alison Moore: I think that what we know with our current customers is that some of them feel quite strongly about the opportunity of stereo control. And some of them, are less concerned about stereo control. Yeah. And we have we have created engagements with both kinds of customers, and we are happy to deploy the ecosystem technologies whether they are interested in stereochemistry or not. But that is not that is not it is not that we can only take 1 route there. However, we have 1 particular customer that is very interested in eking a any potential potency opportunity that we might have for their asset. As a result of stereochemical control. And Stefan and his team generated some very beautiful material and beautiful analytical data that we did share at Tides that Stefan spoke to. And you asked, you know, what happens next? So we are making material with particular stereo configuration We are advancing studies to understand the activity opportunities of different configurations. And we also have other companies that we are currently in negotiations with who are interested in doing the same. Alright. Thank you very much. Operator: Your next question comes from Matthew Hewitt with Craig Hallum. Please state your question. Matthew Hewitt: Good afternoon. Thanks for taking the questions. Maybe first up, Georgia, regarding the guidance of 72 million to $76 million in revenues this year. Obviously back half weighted, but that still implies a pretty significant step up here in the second half. How should we be thinking about cadence and how much of that step up here in second half of the year are is from contracts that you already have in hand, whether it is for individual enzymes or some of the work that you are doing, with the ECOsynthesis and the newer products? Georgia L. Erbez: Well, we are it comes from a variety of different sources as you know, our revenue base is quite diverse. The performance that we have in the base business has been improving. As you saw this quarter, we are continuing to see the same kind of trends moving forward, but we also have some strong leads and performance in the ecosystem as well. So, stay tuned. And we will hopefully have another good quarter in Q3 and we can show you a little bit more about how the split works out. Matthew Hewitt: Understood. And then we are regarding the 4 approvals that your partners have already received this year, What does what do those orders look like? Are they fairly consistent? Like, are you anticipating And I am just going to throw out random numbers here. But do you expect, like, $5 million a quarter from customer a or b and it will just kinda ramp over time? Or will it be more lumpy, meaning you get an order in Q1, then you might not see that customer come back until the third quarter. I am just trying to think about how to model that out. Thank you. Georgia L. Erbez: Well, I am happy to spend time with you offline and work through some of this. But, you know, it is as you know, every customer is different. In how they, prepare for commercial launch. Some stockpile drugs, some do not, some are a little bit more steady in their manufacturing plans. But so I would say that it is you know, still as we have experienced in the past, it can still be lumpy, it can still be unpredictable. But overall, we are seeing positive trends from these approvals, and we are pretty excited about that. Understood. Operator: Thank you. Your next question comes from Matthew Stanton with Jefferies. Please state your question. Matthew Stanton: Hey, thanks. Maybe sticking with the biocatalysis business, Understanding the business can be lumpy. Just talk about the pipeline. I think you said 15 programs in Phase 2 and 3. 7 of those read out over the next 2 years. Is there an opportunity for this business to see a bit more of an elevated growth rate as we look out over the next couple of years as those read out and the 14 approved products continue to progress as well? Thanks. Georgia L. Erbez: No, we are really excited about the prospects for the base business right now. With the approvals coming up. As a reminder, in the last 2 years, we had hardly any approvals and now we are starting to see some of our pipeline mature and that is very exciting. I will remind you that the products that we have and the drugs that are in clinical development really span quite a wide range of markets Some are very niche, some are orphan and some are pretty large. So we do we have always said that we expect over the long term that this business, once we start seeing these approvals could really grow in the kind of high single digits for the next 5 to 7 years. Okay, great. Matthew Stanton: Thanks. And then maybe on the 3 CDMO contracts, did you say that all of them had completed small scale tech transfers? And then, I guess, does that mean all of them are in kind of these more advanced negotiations? Or is there more kind of work to do across the 3? I guess my question is more, you talked about progressing towards longer term commercial contracts. Is that 1 of the 3 or are kind of all 3 in flight? And then any more color just in terms of line of sight visibility to hopefully getting 1 or several of those to the line here. Thank you. Britton Jimenez: Yes, absolutely. So as I had mentioned, with those 3 CDMO partners, we have completed the first half of the project with within Codexis. and now we have tech-transferred at small scale the process into their facilities. Now understand each of those CDMOs are not on the exact same timeline. there is some are more advanced than others. But each of those CDMOs has our technology in their facilities 1 has pretty much completed their entire assessment. And that is by far the most advanced CDMO that we have, which were in long-term commercial partnership negotiations currently. Now, the other 2 CDMOs are just a step behind that lead as they are in the process of doing the evaluation of our technology. So we do see this kind of phased out over the time, but we are very excited about it. And we do think that lead contract negotiation, we are hoping to get that wrapped up here fairly quickly. Operator: Your next question comes from Dan Arias with Stifel. Please state your question. Dan Arias: Hi, guys. Thanks for the questions. First 1 is just a bigger picture question. It sounds like industry activity continues to head in a good direction here in your own sales funnel is growing. You mentioned that this is the year from a scale perspective. So if things were to go well, what would be a reasonable ballpark? I am just how much siRNA could you be supplying to the industry in 18, 24 months? Relative to what you supply today? What could be the scale factor on your own supply overall in aggregate? Alison Moore: Yes. So what we have been communicating is, this year is an important year we are, currently producing at hundreds of grams scale. When we ligate fragments together by the end of the year. We can be operating at about a half-kilo scale And then just before we operationalize our GMP facility, we aim to be at kilo scale production. So you will have heard us say a lot that our focus is really adoption. So we intend to have customers who would purchase their own preclinical and clinical material from us. We already do supply preclinical material. And as Britton has just said, we are excited about the possibility of working with some of our CDMO partners, but that also creates an adopt channel and a scaling opportunity. So our focus is to we sometimes use the word industrialize the technology. That just means operating at a scale where our customers whether they are CDMOs or biopharmaceutical companies, can say, yes, that is at a scale that I can understand can start to generate material that can support my pipeline. So we think that we can go from 1 kilo and then step up, you know, 10x probably, via our partnership. Okay. Dan Arias: I mean, I certainly understand you are talking about when you when you talk about your own capabilities. I think I am just trying to figure out the best way to understand what the industry might need 12 to 24 months down the line because naturally, there is a focus on what you guys can bring to the table, but the demand how that is going to change over time, I think, is maybe just a piece that is a little bit less understood. Alison Moore: Yeah. So, well, I think it is a really important dynamic to be watching over the next 3 years. So there are 4 very large cardiovascular trials ongoing, If only 1 of them achieved the kind of addressable patient population, that they are interested in, it is going to cause a real constraint in the current installed capacity. And that is why, you know, the CDMO space is spending money on you know, stainless facilities. And, you know, it is about it is approximately a billion dollars of stainless steel to generate 1 metric ton additional annually. So that is an expensive route if we really think that demand is going to increase 30 or 30 plus fold in the next 10 years. And it takes, you know, a couple of years minimum to build 1 of those facilities. So I think where Codexis technology is important is really thinking beyond this constriction point. And it is about the adoption of this new technology that does not have the scale barriers nor the some of the economic considerations and solvent considerations associated with current state technology. And I think what we will see is the deployment of novel or what we are seeing is the deployment of novel technology synthesis alongside the existing solid phase organic. We have previously communicated that we think the ECOsynthesis platform will be approximately 70% more capital efficient. So as the whole industry grows, to support the opportunity of siRNA medicines, these over these next few years, the introduction of these novel disruptive technologies will really pave the way to that production of the future. Okay. Thank you very much for that. Operator: Your next question comes from Brendan Smith with TD Cowen. Please state your question. Chad Wiatrowski: Hey, everyone. it is Chad Wiatrowski on for Brendan Smith. I guess, what were some of the technical risks or hurdles that you overcame as you have innovated this technology up to hundreds of grams And what do you see going forward as you scale to that kilogram as the main technical hurdles to overcome? Alison Moore: Yeah. Thank you for that question. I think I would like Stefan just to say a few words about the uniqueness of our enzymes first in terms of technical barriers that need to be overcome and then I will speak a little bit more to the scale question. Stefan Lutz: In order to really address the market needs for the composition of these siRNA assets. The enzymes do not simply need to be improved in 1 or the other capability. They need to be high performance engineered enzymes. Across a wide range of parameters They need to tolerate the different building blocks. They have to have the robustness to operate over the length of the operation time. They need to recognize stereochemistry. So all these aspects, to build this into the enzyme has been a formidable challenge that Codexis has mastered to a good degree relying on the 2 decades of experience that we bring to enzyme engineering. I think that is quite a unique capability and it is the foundation really for process development to then achieve the scale and the quality manufacturing that Alison can comment on. Alison Moore: Yeah. So the kind of convergent disciplines that we have at work here at Codexis are the real strengths and expertise in enzymology and then the application of that enzymology into this production process. And so even enzyme behavior as it is immobilized, for example. We have spent a lot of time optimizing that. In terms of scaling, so scale factors, you know, we have actually a very simple process flow, which is our nucleotides are in solution an essential tank, and then those nucleotides flow over an immobilized enzyme which polymerizes it, polymerizes the nucleotides, and then a phosphatase that stops the reaction. So it is a rather simple process flow. But the scale parameters that we are optimizing are kind of what I would call classic scale parameters. So ensuring that the flow rates are correct, ensuring that the configuration of the immobilized enzymes is optimal, ensuring that temperature is well controlled, which sounds like a simple thing, but as you scale a process like this, there is a lot of nuance there. Also, as Stefan mentioned, these enzymes have been very uniquely engineered. And every addition of a synthetic nucleotide has its own character, And so as we scale, we need to make sure that we have robust design space so that any sequence for any customer can be created at scale and that we generate high quality product at the end of the day. So that is what we are busy working on. And like I said, already at 100 grams end of the year, half a kilo is in sight. Thank you. Operator: Ladies and gentlemen, there are no further questions at this time. So I will hand the floor back to Alison Moore for closing remarks. Alison Moore: Well, thank you, for joining us today. We are looking forward to seeing you at the upcoming investor conferences that we have in the second half of the year. If at any time you have additional questions, please feel free to contact us and have a good evening. Thank you. Operator: This concludes today's teleconference. You may disconnect your lines at this time. Thank you all for your participation. Before you buy stock in Codexis, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Codexis wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $409,970!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,381,040!* That performance is why people listen. 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Codexis (CDXS) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

This article first appeared on GuruFocus. Total Revenue: $14.9 million for Q2 2026, compared to $15.3 million in Q2 2025. Product Gross Margin: 73% for Q2 2026, an improvement over Q1 2026 and full-year 2025; full-year 2026 gross margins expected to improve into the high 60% range. R&D Expenses: $11.7 million in Q2 2026, down from $13.8 million in Q2 2025. SG&A Expenses: $10.9 million in Q2 2026, down from $12.3 million in the prior-year period. Net Loss: $12 million in Q2 2026, compared to a loss of $13.3 million in Q2 2025. Cash Position: $54.9 million in cash equivalents and short-term investments at end of Q2 2026, down from $78.2 million at end of 2025; pro forma cash balance of approximately $79.8 million after a $25 million equity financing. 2026 Revenue Guidance: Expected in the range of $72 million to $76 million, weighted toward the second half of the year. Warning! GuruFocus has detected 6 Warning Signs with CDXS. Is CDXS fairly valued? Test your thesis with our free DCF calculator. Release Date: August 11, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Codexis Inc (NASDAQ:CDXS) reported solid Q2 2026 revenue of $14.9 million, with a significant improvement in its biocatalytic enzyme business, signaling a return to growth. Product gross margin improved to 73% in Q2 2026, driven by higher sales of more profitable products, and the company now expects full-year gross margins to improve to the high 60s%. The ECO Synthesis platform demonstrated new capabilities at TIDES-US, including precise control of phosphorothioate stereochemistry and starterless synthesis, which have generated significant customer interest and advanced commercial discussions. The company successfully raised approximately $25 million in net proceeds from an equity financing, extending its cash runway through 2028 and providing greater financial stability. The pharma biocatalysis business remains stable and profitable, with 14 commercial products supported, including four new product approvals in 2026, and a robust pipeline of 15 programs in Phase 2/3 clinical development. Construction of the GMP manufacturing facility is on track, with equipment ordered and a building permit application imminent, positioning the company to support customer IND filings and clinical trials. Total revenues for Q2 2026 were $14.9 million, a slight decrease from $15.3 million in the same period last year, indicating a modest year-over-year decline. The company continues to incur net losses, reporting a net loss of $12 million in Q2 2026, though this is an improvement from the $13.3 million loss in Q2 2025. Cash and short-term investments decreased to $54.9 million at the end of Q2 2026 from $78.2 million at the end of 2025, reflecting significant cash burn. The revenue guidance for 2026 remains unchanged at $72 million to $76 million, with a heavy weighting toward the second half, implying a significant step-up in revenue that may be challenging to achieve. The biocatalysis business is subject to lumpy and unpredictable order patterns from customers, which can create volatility in quarterly revenue performance. The ECO Synthesis technology is still in the R&D stage for some capabilities, such as starterless synthesis, and the company faces technical hurdles in scaling up to kilogram-scale production, which may delay commercialization. Q: What has customer reaction been to the stereochemistry data and single nucleotide initiation capabilities shown at TIDES USA, and what updates can be expected at TIDES Europe? A: Britton Jimenez (SVP, Sales and Marketing) noted significant excitement from TIDES US, which has advanced conversations with several customers interested in stereochemistry control for therapeutic and quality benefits. The new starterless capability has also changed the position of past customers, prompting them to advance and test the technology. Stefan Lutz (Chief Scientific Officer) indicated that TIDES Europe will continue the story, potentially addressing data on the biological impact of stereo control. Q: How might advances in stereochemistry allow partners to lower dosage, save money, and improve safety measures? A: Stefan Lutz (Chief Scientific Officer) explained that the cellular environment is chiral, so stereochemistry can play to that nature, similar to small molecule APIs where it impacts therapeutic efficacy. He highlighted manufacturing advantages, including reduced process complexity and simplified downstream processing, which today involves elaborate purification chromatography. Alison Moore (CEO) added that Codexis is conducting ongoing work evaluating activity improvement opportunities in biological assays. Q: How much will the desire for precise stereochemistry control drive potential partnerships, and what key data suggests its added benefits? A: Alison Moore (CEO) stated that some current customers feel strongly about stereo control while others are less concerned, and Codexis can deploy ECO Synthesis technologies for both. One particular customer is very interested in eking out potency opportunities from stereochemical control. Codexis is making material with specific stereo configurations and advancing studies to understand activity opportunities, with other companies in negotiations for similar work. Q: Regarding the $72 million to $76 million revenue guidance, how should we think about the cadence of the significant step-up in the second half, and how much is from contracts already in hand? A: Georgia Erbez (CFO and CBO) explained that revenue comes from a diverse variety of sources. The base business performance has been improving, as seen in Q2, with the same trends continuing. There are also strong leads in ECO Synthesis performance, and the company hopes to show more about the split in Q3. Q: What do orders look like for the four product approvals received this year, and should we expect consistent or lumpy revenue? A: Georgia Erbez (CFO and CBO) noted that every customer is different in how they prepare for commercial launchsome stockpile drug, some don't, and some are steadier in manufacturing plans. While it can still be lumpy and unpredictable, overall positive trends are emerging from these approvals. Q: With 15 programs in Phase 2 and 3 and seven readouts over the next few years, is there an opportunity for elevated growth in the biocatalyst business? A: Georgia Erbez (CFO and CBO) expressed excitement about the prospects for the base business with upcoming approvals, noting that after two years with hardly any approvals, the pipeline is maturing. The products span a wide range of markets, from niche to large. The company expects the business could grow in the high single-digits for the next five to seven years once approvals start. Q: Have all three CDMO contracts completed small-scale tech transfers, and are all in advanced negotiations for long-term commercial contracts? A: Britton Jimenez (SVP, Sales and Marketing) confirmed that all three CDMOs have received the technology at small scale in their facilities, but they are on different timelines. One has completed its entire assessment and is in long-term commercial partnership negotiations, which the company hopes to wrap up fairly quickly. The other two are a step behind, still in the evaluation process. Q: What would be a reasonable ballpark of how much siRNA Codexis could supply to the industry in 18-24 months relative to today? A: Alison Moore (CEO) stated that the company is currently producing at hundreds of gram scale, aiming for half kilo scale by year-end and kilo scale before operationalizing the GMP facility. The focus is on adoption, supplying preclinical and clinical material to customers. The company can step up 10x from one kilo, likely via partnerships, and the technology is approximately 70% more capital efficient than current methods. Q: What were some technical risks or hurdles overcome in innovating the technology to hundreds of grams, and what are the main hurdles to scaling to kilogram? A: Stefan Lutz (Chief Scientific Officer) explained that enzymes need to be high-performance across a wide range of parameterstolerating different building blocks, operating over long durations, and recognizing stereochemistrywhich Codexis has mastered through two decades of enzyme engineering experience. Alison Moore (CEO) added that the process flow is simplenucleotides flow over immobilized enzymesbut scale parameters like flow rates, enzyme configuration, and temperature control are being optimized. The enzymes are uniquely engineered, and every synthetic nucleotide addition has its own character, requiring a robust design space for any customer sequence. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management attributes the return to growth in the pharma biocatalysis business to a renewed trend of product approvals, including four new commercial products in 2026 and one significant label expansion. The ECOsynthesis platform is being positioned as a disruptive solution to a projected 30-fold increase in siRNA demand by 2035, which management expects will create a manufacturing bottleneck within three years. Strategic focus has shifted toward industrializing ECOsynthesis, moving from R&D milestones to demonstrating the scale and performance metrics required for broad customer adoption. The company successfully raised $25 million in net proceeds through equity financing, which management states provides the stability needed to execute long-term strategic goals. Operational efficiency improved through controlled spending, resulting in lower R&D and SG&A expenses primarily driven by reduced headcount and lower employee-related costs. Management highlighted the competitive advantage of their engineered enzymes, which offer unprecedented stereochemical control that traditional solid-phase organic synthesis methods cannot easily replicate. Revenue guidance for 2026 remains at $70 million to $76 million, with management assuming a heavy weighting toward the second half of the year based on historical quarterly trends. Cash runway is now projected to fund operations and capital expenditures through 2028, including the full build-out costs for the new GMP manufacturing facility. The company expects to reach a 500-gram pilot scale for siRNA production by the end of 2026, with a subsequent goal of achieving kilogram-scale production before the GMP facility becomes operational. Gross margins for the full year 2026 are now expected to reach the high 60s, driven by a shift in product mix toward more profitable, recently approved enzymes. Management anticipates that the biocatalysis business could sustain high single-digit growth over the next 5 to 7 years as the current pipeline of 15 Phase II/III programs matures. Construction of a $25 million GMP manufacturing facility is planned to begin following the approval of the building permit application., which is strategically intended to provide clinical trial material and support customer IND filings. Management introduced 'Starterless ECOsynthesis,' a novel R&D-stage capability that could further reduce manufacturing costs by initiating synthesis from a single nucleotide. A potential manufacturing bottleneck is flagged for the industry as large Phase 3 cardiovascular trials conclude, which management believes will force a shift toward more capital-efficient technologies like ECOsynthesis. The company is currently in negotiations for a long-term commercial contract with a lead CDMO partner following a successful small-scale technology transfer and assessment. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management reported significant excitement from customers regarding stereochemical control, leading to new engagements with partners focused on both therapeutic potency and product quality. The new starterless capability has re-engaged past customers who are now interested in testing the technology due to its potential for lower costs and simpler operations. The projected second-half revenue step-up is supported by a diverse base of business, improving trends in the core biocatalysis segment, and strong leads in the ECOsynthesis pipeline. Management noted that while commercial launch orders can be lumpy and unpredictable due to varying customer stockpiling strategies, the overall trend remains positive. Codexis aims to scale from hundreds of grams to kilogram levels, with the potential to step up 10x further through strategic partnerships. Management estimates the ECOsynthesis platform is approximately 70% more capital efficient than traditional 'stainless steel' facilities, which cost roughly $1 billion per metric ton of annual capacity. Key challenges include optimizing 'classic' scale parameters such as flow rates, temperature control, and the configuration of immobilized enzymes within a simple process flow. The enzymes must be engineered to be robust enough to tolerate different synthetic building blocks and maintain high performance over extended operation times.

Interested in Codexis, Inc.? Here are five stocks we like better. Codexis reported Q2 revenue of $14.9 million, down slightly from $15.3 million a year earlier, while net loss narrowed to $12 million. The company reaffirmed its 2026 revenue guidance of $72 million to $76 million and expects full-year gross margins in the high-60% range. The company is advancing its ECO Synthesis platform for siRNA manufacturing, highlighting stereochemical control and a new “starterless” process that could reduce purification complexity and costs. Codexis targets approximately 500 grams of production by year-end 2026 and plans to build a roughly $25 million GMP facility. Codexis strengthened its financial position with a post-quarter equity financing that raised about $25 million, bringing pro forma cash to roughly $79.8 million and extending funding for operations and capital expenditures through 2028. Its biocatalysis business also showed renewed momentum, supported by recent product approvals and a pipeline of 15 Phase II or III programs. Codexis (NASDAQ:CDXS) reported second-quarter 2026 revenue of $14.9 million, compared with $15.3 million in the prior-year period, as the company highlighted improved performance in its biocatalytic enzyme business and continued development of its ECO Synthesis platform for siRNA manufacturing. Net loss narrowed to $12 million from $13.3 million a year earlier. Product gross margin was 73% during the quarter, which Chief Financial Officer and Chief Business Officer Georgia Erbez said reflected higher sales of more profitable products. The company now expects full-year gross margins in the high 60% range and reaffirmed its 2026 revenue outlook of $72 million to $76 million. → SoundHound AI Sends a Loud Signal After Its Q2 Earnings Beat President and Chief Executive Officer Alison Moore said Codexis is positioning its enzymatic ECO Synthesis platform as a scalable aqueous alternative to conventional solid-phase organic synthesis for oligonucleotides. The company said conventional production methods require substantial solvent use and could face capacity limitations as demand for siRNA medicines grows. At the TIDES US conference in May, Codexis presented data showing full-length siRNA synthesis with control over phosphorothioate stereochemistry. Chief Scientific Officer Stefan Lutz said traditional chemical manufacturing produces complex mixtures that can require extensive downstream processing, while the company’s engineered enzymes can produce molecules with defined stereochemical configurations. → 3 Dividend Champion Utilities for a Market That Can't Sit Still Lutz said stereochemical control could improve product quality, potentially enhance therapeutic potency and simplify manufacturing by reducing purification complexity. The company is continuing biological studies of different stereochemical configurations and said it plans to discuss data related to the biological impact of stereochemical control at TIDES Europe later this year. Codexis also introduced “starterless” ECO Synthesis, an early-stage capability that initiates RNA synthesis from a single nucleotide rather than a chemically synthesized starter oligonucleotide. Lutz said the approach could lower costs and simplify manufacturing, particularly for fragment-based assembly methods used to produce full-length siRNA therapies. → Is Wingstop's Growth Story Losing Steam? According to Senior Vice President of Sales and Marketing Britton Jimenez, the stereochemistry and starterless capabilities have generated positive customer interest. He said several companies have advanced discussions regarding potential use of stereochemical control in their therapeutic pipelines, while some past customers have become more interested in evaluating the company’s technology following the introduction of starterless synthesis. Jimenez said Codexis has contracts with three contract development and manufacturing organizations, or CDMOs, and has completed small-scale technology transfers into each partner’s facilities. One CDMO has completed its assessment and is now in negotiations with Codexis for a long-term commercial agreement. The other two partners are conducting evaluations and are at earlier stages. Moore said the company’s focus is on industrializing ECO Synthesis and supporting customer adoption. Codexis currently produces material at the hundreds-of-grams scale and expects to reach approximately 500 grams of siRNA production through fragment ligation by the end of 2026. Before its GMP facility becomes operational, the company aims to reach kilogram-scale production. The company is proceeding with plans to construct a GMP manufacturing facility that it expects will provide material for investigational new drug filings and clinical trials. Codexis said it plans to submit its building permit application shortly and has ordered manufacturing equipment. Construction is expected to begin after permit approval, with the project estimated to cost about $25 million. Moore said Codexis believes its technology can ultimately be scaled further through partnerships. She cited the possibility that large cardiovascular siRNA trials could create constraints in current industry manufacturing capacity over the next several years, though the timing and extent of that demand depend on clinical trial outcomes. Codexis said its small-molecule biocatalysis business remains stable and profitable. The company supports 14 commercially approved products dependent on its enzymes, including four products that received regulatory approvals in 2026. Another product received a label expansion that significantly increased its market potential, Jimenez said. The company also reported 15 biocatalysis programs in Phase II or Phase III clinical development, with data readouts anticipated from seven clinical trials during the next two years. Erbez said the business had seen few approvals over the prior two years but is now beginning to benefit from maturation of its pipeline. While noting that customer purchasing patterns can be uneven because some customers stockpile products and others use steadier manufacturing schedules, Erbez said Codexis is seeing positive trends. She said the company has historically expected the business to grow at a high-single-digit rate over five to seven years as additional programs receive approval. Research and development expense declined to $11.7 million from $13.8 million in the prior-year quarter, while selling, general and administrative expense fell to $10.9 million from $12.3 million. Erbez attributed the decreases primarily to lower employee-related costs, reduced spending on outside services and lab supplies, lower stock-based compensation, and reduced headcount. Codexis ended the second quarter with $54.9 million in cash equivalents and short-term investments, down from $78.2 million at the end of 2025. Following the quarter’s close, the company completed an equity financing that generated approximately $25 million in net proceeds, producing a pro forma cash balance of roughly $79.8 million. Erbez said current cash is expected to fund planned operations and capital expenditures through 2028, including expenses associated with building the GMP facility. Moore said the company’s remaining 2026 priorities include beginning facility construction, advancing toward 500-gram pilot-scale production, expanding a CDMO scale-up partnership, securing an ECO Synthesis raw-material supply chain, and meeting its revenue and margin objectives. Codexis, Inc, headquartered in Redwood City, California, is a leading protein engineering company focused on the development of innovative enzyme solutions for pharmaceutical, food and beverage, and specialty chemical applications. The company’s proprietary directed evolution platform, CodeEvolver®, enables the rapid identification and optimization of enzymes with enhanced activity, selectivity and stability. By leveraging this technology, Codexis provides custom biocatalysts designed to improve manufacturing efficiency and reduce environmental impact. Since its founding in 2002, Codexis has expanded its capabilities from early-stage research to commercial-scale production. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Codexis Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Reports revenue of $14.9 million for the second quarter of 2026, company reiterates full-year financial guidance Shared new advances in RNA therapeutic manufacturing at TIDES US showing that its ECO Synthesis® Manufacturing Platform exerts enzyme-driven stereoisomer control of siRNA Completed successful equity capital raise of approximately $25 million in net proceeds REDWOOD CITY, Calif., Aug. 11, 2026 (GLOBE NEWSWIRE) -- Codexis, Inc. (NASDAQ: CDXS), a leading provider of enzymatic solutions for efficient and scalable manufacturing of complex therapeutics, today announced financial results for the second quarter ended June 30, 2026, and provided a business update. “I am pleased with the strong financial results reported today for the second quarter of 2026,” stated Alison Moore, PhD, President and Chief Executive Officer of Codexis. “In May, we presented new data at the TIDES US annual meeting demonstrating how the ECO Synthesis® Manufacturing Platform enables control over stereochemistry in the manufacture of siRNA compounds which may enhance their potency and product quality. We also demonstrated our technology has the ability to initiate enzymatic RNA synthesis starting from a single nucleotide. In addition, our balance sheet was significantly strengthened by a capital raise of approximately $25 million in net proceeds, completed in July. We have made significant progress in the first half of 2026 in industrializing our ECO Synthesis Manufacturing Platform, and look forward to continued demonstration of the value of our technology to our customers in the second half.” Second Quarter and Recent Business Highlights Codexis hosted three key presentations at the 2026 TIDES US annual meeting that took place in May. These presentations demonstrated enzyme-driven stereoisomer control of siRNA using ECO Synthesis technology, the superior performance of Codexis ligase in siRNA ligation reactions, and the metrics of improved sustainability of the ECO Synthesis manufacturing platform compared to Solid-Phase Oligonucleotide Synthesis, the current industry manufacturing standard. These presentations have generated strong interest in both startup and established participants in the siRNA field. The Company successfully completed an equity financing in July that raised a total of approximately $25 million in net proceeds, resulting in proforma cash of approximately $80 million. Upcoming Milestones The Company will be submitting its application for a building permit for its ECO GMP Manufacturing Center in preparation to commence retrofit construction during the second half of 2026. Full production capability is planned by the end of 2027. The purpose of this facility is to provide siRNA material for preclinical investigations and Phase 1 clinical trials. Expand relationships with our CDMO partners with a goal of commencing an additional strategic partnership by the end of 2026. Advance our partnerships with drug innovators toward clinical stage manufacturing agreements. Continue our engagement with the FDA Emerging Technologies team to discuss ECO Synthesis-derived siRNA product quality, stereoisomer control, and product comparability in anticipation of a meeting with the Agency in the fourth quarter of 2026. Second Quarter 2026 Financial Highlights Total revenues were $14.9 million for the second quarter of 2026 compared to $15.3 million in the second quarter of 2025. The decrease was primarily due to lower research and development revenue. This was mostly offset by higher product revenue, driven by the approval and launch of new products by our customers with higher margins compared to more established products. Product gross margin was 73% for the second quarter of 2026, compared to 72% in the second quarter of 2025. The increase in gross margin was largely due to a shift in sales toward more profitable products, and declines in less profitable, established products. Research and Development expenses for the second quarter of 2026 were $11.7 million compared to $13.8 million in the second quarter of 2025. The decrease was primarily due to lower employee-related costs, reduced spending on outside services and lower lab supplies, partially offset by higher allocable costs. Selling, General & Administrative expenses for the second quarter of 2026 were $10.9 million compared to $12.3 million in the second quarter of 2025. The decrease was primarily due to lower employee-related costs associated with reduced headcount, lower stock-based compensation expenses, and lower allocable costs, partially offset by higher facility-related expenses. The net loss for the second quarter of 2026 was $12.0 million, or $0.13 per share, compared to a net loss of $13.3 million, or $0.16 per share, for the second quarter of 2025. As of June 30, 2026, Codexis had $54.9 million in cash, cash equivalents, and short-term investments. After the close of the second quarter, Codexis successfully completed an equity financing that raised a total of approximately $25 million in net proceeds, resulting in proforma cash of approximately $80 million. 2026 Financial Guidance Reiterated Codexis reiterated its full-year 2026 financial guidance as follows: Total revenues are expected to be in the range of $72 million to $76 million. Gross margin for the year 2026 is expected to be in the high 60% range. Codexis expects that its existing cash, cash equivalents, and short-term investments will be sufficient to fund its planned operations through the end of 2028. The financial guidance and cash runway projections include the expenses associated with the build out of the GMP production facility. Conference Call and Webcast Codexis will hold a conference call and webcast today beginning at 4:30 pm ET. A live webcast will be available on the Investors section of the Company website at ir.codexis.com. The conference call dial-in numbers are 877-705-2976 for domestic callers and 201-689-8798 for international callers. A telephone recording of the call will be available for 48 hours beginning approximately two hours after the completion of the call by dialing 877-660-6853 for domestic callers or 201-612-7415 for international callers. Please use the passcode 13726635 to access the recording. A webcast replay will be available on the Investors section of the Company website, beginning approximately two hours after the completion of the call. About Codexis Codexis® is a leading provider of enzymatic solutions for efficient and scalable therapeutics manufacturing, leveraging its proprietary CodeEvolver® technology to discover, develop and enhance novel, high-performance enzymes. Codexis enzymes solve for real-world challenges associated with small molecule pharmaceuticals manufacturing and nucleic acid synthesis. The Company is currently developing its proprietary ECO Synthesis® Manufacturing Platform to enable the scaled manufacture of RNAi therapeutics through an enzymatic route. Codexis’ unique enzymes can drive improvements such as higher yields, reduced energy usage and waste generation, improved efficiency in manufacturing, and greater sensitivity in genomic and diagnostic applications. For more information, visit  https://www.codexis.com. Forward-Looking Statements This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In some cases, you can identify forward-looking statements by terminology such as “aim,” “anticipate,” “assume,” “believe,” “contemplate,” “continue,” “could,” “design,” “due,” “estimate,” “expect,” “goal,” “intend,” “may,” “objective,” “plan,” “positioned,” “potential,” “predict,” “forecast,” “guidance,” “look forward to,” “milestone,” “on track,” “outlook,” “project,” “runway,” “seek,” “should,” “suggest,” “target,” “will,” “would” and other similar expressions that are predictions of or indicate future events and future trends, or the negative of these terms or other comparable terminology. To the extent that statements contained in this press release are not descriptions of historical facts, they are forward-looking statements reflecting the current beliefs and expectations of management. These forward-looking statements include, but are not limited to, statements regarding anticipated milestones, including anticipated product launches by Codexis’ customers, technical milestones, data releases and public announcements related thereto; Codexis’ expectation that its existing cash, cash equivalents and short-term investments will be sufficient to fund its planned operations through the end of 2028, including the expenses associated with the build out of its GMP production facility; Codexis’ 2026 financial guidance, including its revenue and gross margin guidance; the anticipated submission of Codexis’ application for a building permit for its ECO GMP Manufacturing Center and the timing thereof; the receipt of required permits and approvals for, and the timing, cost and completion of, the retrofit construction of Codexis’ ECO GMP Manufacturing Center, the anticipated commencement of retrofit construction in the second half of 2026 and the achievement of full production capability by the end of 2027, and the intended use of the facility to supply siRNA material for preclinical investigations and Phase 1 clinical trials; Codexis’ ability to advance partnerships with drug innovators toward clinical stage manufacturing agreements; Codexis’ ability to expand relationships with CDMO partners and to commence an additional strategic partnership by the end of 2026; Codexis’ continued engagement with the FDA’s Emerging Technologies team and the anticipated timing of a meeting with the Agency in the fourth quarter of 2026; and the anticipated benefits, performance, sustainability and commercial potential of Codexis’ ECO Synthesis® Manufacturing Platform and dsRNA ligase, including the potential effect of enzyme-driven stereoisomer control on the potency and product quality of siRNA compounds and the anticipated level of customer interest in and adoption of Codexis’ technology. The forward-looking statements in this press release are subject to the safe harbor created by these sections, speak only as of the date of this press release, and are qualified by the cautionary statements set forth below. You should not place undue reliance on these forward-looking statements because they involve known and unknown risks, uncertainties and other factors that are, in some cases, beyond Codexis’ control and that could materially affect actual results. Factors that could materially affect actual results include, among others: Codexis’ dependence on its licensees and collaborators and the risk that collaborators may terminate their development programs under their respective license agreements with Codexis; Codexis’ dependence on a limited number of products and customers, and potential adverse effects to Codexis’ business if its customers’ products are not received well in the markets; Codexis’ ability to successfully develop and commercialize new technology and products for its target markets, including its ECO Synthesis® manufacturing platform and dsRNA ligase; the risk that competitors and potential competitors who have greater resources and experience than Codexis may develop products and technologies that make Codexis’ products and technologies obsolete; Codexis’ ability to advance partnerships with drug innovators toward clinical stage manufacturing agreements and to establish strategic partnerships with CDMOs; the timing, cost and successful completion of the retrofit construction of Codexis’ GMP facility and the risk that the facility may not achieve operational readiness on the anticipated timeline; the risk that the FDA or other regulatory authorities may not accept enzymatically synthesized oligonucleotides or that the regulatory pathway for ECO Synthesis-derived products may be longer or more uncertain than anticipated; risks relating to Codexis’ dependence on its GMP facility, and the risk of delays or cost overruns in obtaining permits and approvals, procuring equipment with long lead times, or completing construction; the concentration of Codexis’ revenue in a limited number of contracts and milestones; Codexis’ potential need for additional capital in the future in order to expand its business, the risk that additional capital may not be available on acceptable terms or at all; Codexis’ ability to comply with debt covenants under its loan facility and to satisfy scheduled principal and interest payment obligations, and the effect of the terms of that facility on Codexis’ liquidity and operating flexibility; risks relating to Codexis’ ability to obtain, maintain, defend and enforce patents, trade secrets and other intellectual property rights covering its technologies, and the risk of intellectual property infringement claims by third parties; Codexis’ dependence on key personnel and its ability to attract and retain qualified employees; Codexis’ reliance on third-party suppliers of nucleotides, reagents and other materials; risks relating to cybersecurity incidents and data integrity; volatility in the market price of Codexis’ common stock and its ability to maintain compliance with Nasdaq listing requirements; Codexis’ ability to accurately forecast financial and operational performance; the impact of market, political and economic conditions on Codexis’ business, financial condition and share price; and the impact of international trade policies, including tariffs, sanctions and trade barriers, on Codexis’ business. Additional information about factors that could materially affect actual results can be found in Codexis’ Annual Report on Form 10-K filed with the Securities and Exchange Commission (SEC) on March 11, 2026, and in Codexis’ Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2026, to be filed with the SEC, in each case including under the caption “Risk Factors,” and in Codexis’ other filings with the SEC. Codexis expressly disclaims any intent or obligation to update these forward-looking statements, except as required by law. Codexis’ results presented in this press release are not necessarily indicative of Codexis’ operating results for any future periods. For More InformationInvestor ContactGeorgia Erbez(650) [email protected]

ANI Pharmaceuticals (ANIP) came out with quarterly earnings of $2.21 per share, beating the Zacks Consensus Estimate of $2.01 per share. This compares to earnings of $1.8 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +9.95%. A quarter ago, it was expected that this drugmaker would post earnings of $1.28 per share when it actually produced earnings of $2.05, delivering a surprise of +60.16%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. ANI, which belongs to the Zacks Medical - Biomedical and Genetics industry, posted revenues of $266.04 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 1.26%. This compares to year-ago revenues of $211.37 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. ANI shares have added about 4.7% since the beginning of the year versus the S&P 500's gain of 12.6%. While ANI has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for ANI was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $2.41 on $293.28 million in revenues for the coming quarter and $9.40 on $1.11 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Medical - Biomedical and Genetics is currently in the top 45% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Codexis (CDXS), another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on August 11. This producer of custom industrial enzymes is expected to post quarterly loss of $0.17 per share in its upcoming report, which represents a year-over-year change of -6.3%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Codexis' revenues are expected to be $12.73 million, down 17% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report ANI Pharmaceuticals, Inc. (ANIP) : Free Stock Analysis Report Codexis, Inc. (CDXS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

AC Immune (ACIU) came out with quarterly earnings of $0.03 per share, beating the Zacks Consensus Estimate of a loss of $0.22 per share. This compares to a loss of $0.25 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +113.64%. A quarter ago, it was expected that this biopharmaceutical company would post a loss of $0.2 per share when it actually produced a loss of $0.19, delivering a surprise of +5%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. AC Immune, which belongs to the Zacks Medical - Biomedical and Genetics industry, posted revenues of $19.12 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 1,812.10%. This compares to year-ago revenues of $1.58 million. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. AC Immune shares have lost about 27.7% since the beginning of the year versus the S&P 500's gain of 13%. While AC Immune has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for AC Immune was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is -$0.22 on $1 million in revenues for the coming quarter and -$0.84 on $4.4 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Medical - Biomedical and Genetics is currently in the top 44% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Codexis (CDXS), has yet to report results for the quarter ended June 2026. The results are expected to be released on August 11. This producer of custom industrial enzymes is expected to post quarterly loss of $0.17 per share in its upcoming report, which represents a year-over-year change of -6.3%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Codexis' revenues are expected to be $12.73 million, down 17% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report AC Immune (ACIU) : Free Stock Analysis Report Codexis, Inc. (CDXS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

A week ago, Codexis, Inc. (NASDAQ:CDXS) came out with a strong set of first-quarter numbers that could potentially lead to a re-rate of the stock. Revenues and losses per share were both better than expected, with revenues of US$15m leading estimates by 5.0%. Statutory losses were smaller than the analystsexpected, coming in at US$0.10 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Codexis after the latest results. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. After the latest results, the consensus from Codexis' seven analysts is for revenues of US$74.2m in 2026, which would reflect a noticeable 5.0% decline in revenue compared to the last year of performance. Losses are expected to increase substantially, hitting US$0.41 per share. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$74.2m and losses of US$0.44 per share in 2026. It looks like there's been a modest increase in sentiment in the recent updates, with the analysts becoming a bit more optimistic in their predictions for losses per share, even though the revenue numbers were unchanged. View our latest analysis for Codexis The consensus price target fell 7.1% to US$6.58despite the forecast for smaller losses next year. It looks like the ongoing lack of profitability is starting to weigh on valuations. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Codexis analyst has a price target of US$11.00 per share, while the most pessimistic values it at US$3.50. As you can see the range of estimates is wide, with the lowest valuation coming in at less than half the most bullish estimate, suggesting there are some strongly diverging views on how analysts think this business will perform. As a result it might not be a great idea to make decisions based on the consensus price target, which is after all just an average of this wide range of estimates. Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would also point out that the forecast 6.6% annualised revenue decline to the end of 2026 is better than the historical trend, which saw revenues shrink 13% annually over the past five years Compare this against analyst estimates for companies in the broader industry, which suggest that revenues (in aggregate) are expected to grow 6.5% annually. So while a broad number of companies are forecast to grow, unfortunately Codexis is expected to see its revenue affected worse than other companies in the industry. The most obvious conclusion is that the analysts made no changes to their forecasts for a loss next year. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Codexis' revenue is expected to perform worse than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business. With that in mind, we wouldn't be too quick to come to a conclusion on Codexis. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Codexis going out to 2028, and you can see them free on our platform here.. You should always think about risks though. Case in point, we've spotted 2 warning signs for Codexis you should be aware of. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Image source: The Motley Fool. Thursday, May 7, 2026 at 4:30 p.m. ET Chief Executive Officer — Alison Moore Chief Financial Officer — Georgia Erbez Chief Commercial Officer — Britton Jimenez Need a quote from a Motley Fool analyst? Email [email protected] Alison Moore: Thank you, Georgia, and thanks, everyone, for joining. While it's been a short 8 weeks since our last call, we've accomplished a lot at Codexis. We are pleased to report another strong quarter and are busy preparing for the TIDES Conference next week, where we will present important new data on our ECO Synthesis technology. Codexis generates manufacturing solutions using biocatalytic enzymes. Over the last 3 years, we have developed the ECO Synthesis manufacturing platform for the production of RNA medicine, specifically siRNA, and we are now focused on bringing this to the market. The standard approach of using solid phase organic synthesis for siRNA manufacturing is complex, solvent-intensive and challenging to scale. Currently, siRNA pipelines are expanding from rare diseases to large population indications, which will create a significant manufacturing bottleneck in the next 3 years. ECO Synthesis has the potential to alleviate production constraints by delivering greater scalability and higher product quality with the added benefit of dramatically improving environmental impact. Last year, we achieved a number of important milestones in platform performance and industry engagement, which generated tangible interest from our customers. In 2026, the potential impact of our platform is well understood. Across the industry, we are seeing increased interest in enzymatic production solutions. Our goal is to position Codexis as the leading manufacturing technology innovator. We are operationalizing our platform through scaling, improving process control and by our platform's unique capability of delivering superior siRNA product. A new feature of our ECO Synthesis platform is the ability to generate siRNA with specific stereochemical control. Stereoisomers exist at both ends of most siRNA molecules and are made of the same atoms but are arranged differently in 3-dimensional space. As a reminder, drug developers have little influence over stereochemistry today as existing chemical manufacturing methods produce random mixtures that can vary in terms of therapeutic potency and purity. Our engineered enzymes used in ECO Synthesis can deliver product with specific stereoisomer configurations. These stereopure molecules confer overall improved product quality and have the potential to deliver improved potency. We continue to explore the biological impact of this control and believe it could be a tremendous asset to those customers who seek ways to improve their products. Our small molecule biocatalysis business remains an important part of Codexis and provides support for the investments we are making in ECO Synthesis. We supply uniquely designed enzymes for 13 branded commercial pharmaceutical products. This portfolio continues to grow with the recent approval of islatravir, a part of an important new combination treatment for HIV. Codexis partnered with Merck, who carried out groundbreaking process chemistry, substituting a 16-step chemical synthesis with a biocatalytic cascade. This achieved a Green Chemistry Award in 2025. We are supplying enzymes for this commercial product and are proud to participate in the supply chain for HIV patients. We are making remarkable progress at Codexis and momentum is increasing in 2026. We are proud of the advances we are making to further enhance the utility of the ECO Synthesis platform. We look forward to showing our customers and investors additional tangible proof of value of the technology. Now to update you on our commercial activities and progress, let me turn it over to Britton. Britton Jimenez: Thanks, Alison. Our ECO Synthesis manufacturing platform continues to mature into a thriving and successful business. Most importantly, it is a platform capable of broadly supporting product development for the most important growing modality in the genomic medicine space. The number of RNA medicines in development is growing at an estimated rate of at least 10% per year with over 100 candidates in clinical trials and more than 400 in preclinical development. Current production technologies will not be able to keep up with future demand. For example, there are 4 drugs in late-stage clinical development for cardiovascular indications. A 2% to 3% market penetration of one of these therapeutics into a 25 million addressable patient population will require more oligonucleotide production than the entire rare disease portfolio combined. The impact of these powerful new therapies may not reach their full potential if they cannot be produced reliably, efficiently and scale and at scale. As innovators and CDMOs search for ways to expand capacity, the importance of new production technologies is rapidly accelerating, and this market is currently estimated to be at $2 billion. For our ECO Synthesis platform, we have over 50 opportunities in our sales pipeline with 40 individual companies demonstrating strong continued interest in our technology. The valuation work with our CDMO partners is progressing and long-term commercial discussions are also moving forward. The industry knows there needs to be a change, and we intend to be the best option for both drug innovators and CDMOs. In connection with what Alison mentioned before, our customers are interested in exploring how stereoisomer control can be incorporated into their products. We believe this new capability can improve product purity and potency for therapeutics. We are excited to add this approach to our ECO Synthesis portfolio. In advance of the TIDES USA meeting, we completed exciting new data on stereochemistry. This groundbreaking presentation will underscore the breadth of our leadership in enzymatic technology. During TIDES, we will host a roundtable discussion with industry experts focused on stereochemistry and the value it can bring to next-generation RNA medicines. We will have additional presentations on environmental sustainability and the performance of highly engineered ligases. Turning to our small molecule biocatalysis business. It remains stable and profitable. We continue to support 13 commercially approved products that are dependent on our enzymes. As we mentioned on a previous update call, we have a number of projects in clinical development. In the last 6 months, we have had data readouts on 3 studies, 2 of which were positive and one of which received FDA approval last month. We are assisting our customers with preparation for commercial launch for both programs. Our pipeline remains robust with 11 programs still in Phase III clinical development and data readouts expected on 4 clinical trials in the next 12 months. We are excited for our prospects in 2026 and beyond. The next 3 years represent a critical window to increase global oligonucleotide production capacity. The industry must confront the challenge of scaling from manufacturing less than 1 metric ton of oligonucleotide therapeutics annually to 10x to 50x that in the next decade. There isn't a more important time for enzymatic production approaches to be deployed in global production infrastructure, and we are driving the ECO Synthesis platform toward this opportunity. With that, I will now turn the call over to Georgia for a discussion of our financial results for the first quarter. Georgia Erbez: Thanks, Britton. Good afternoon, everyone. Today, I will provide a brief overview of our financial results here on the call and invite you to review our 10-Q filed today for a more detailed discussion. Total revenues were $15.2 million for the first quarter of 2026 compared to $7.5 million in the first quarter of 2025. The increase was primarily due to revenue from the Merck technology transfer agreement executed in the fourth quarter of 2025, which has now been fully recognized. Product gross margin was 71% for the first quarter of 2026, which compares to 55% for the first quarter of 2025. For the first quarter of 2026, the increase was primarily driven by product mix and sales declines in several low-margin products that were replaced with more profitable product sales. We continue to expect 2026 annual gross margins to be comparable to the annual levels we reported in 2025. Research and development expenses for the first quarter of 2026 were $11.4 million compared to $12.9 million in the first quarter of 2025, largely driven by lower allocable costs that were partially offset by higher employee-related costs and higher use of outside services. Selling, general and administrative expenses were $9.8 million in the first quarter of 2026 compared to $12.4 million in the prior year period. The decrease was primarily due to lower employee-related costs due to lower headcount, lower stock-based compensation expenses and lower consultant fees and outside services. Net loss for the first quarter of 2026 was $8.7 million compared to the loss of $20.7 million for the first quarter of 2025. We are fully engaged in our project to retrofit our new GMP plant and located in Hayward, California that was leased in 2025. We are currently in the detailed design phase and are preparing to apply for a building permit in the second quarter. Construction is planned to get underway in the second half of the year, and we expect to be fully operational by the end of 2027. Together with our Redwood City headquarters, this marks a continued step forward in how we support development, scale-up and manufacturing our customers' products. We reiterate our revenue guidance and expect 2026 revenue in the range of $72 million to $76 million. Like the quarterly trends we saw last year, we expect 2026 revenue to be more heavily weighted towards the second half of 2026 versus the first half. Codexis ended the first quarter with $65.1 million in cash, cash equivalents and short-term investments, which compares to $78.2 million at the end of 2025. We expect our current cash will be sufficient to fund our planned operations and capital expenditures through the end of 2027. As a reminder, our financial guidance and cash runway include the expenses associated with the build-out of our GMP facility. With that, I will now turn the call back over to Alison. Alison Moore: Thank you, Georgia, and thank you, Britton. Our proprietary ECO Synthesis platform technology has the potential to radically alter the landscape of oligonucleotide manufacturing. The next step for Codexis is to deploy the technology into our customers' pipelines. We are working hard to achieve this goal in 2026. For investors, we want to show proof of success. We can do this by signing broader and higher value types of contracts as well as innovative licensing deals. We will also be focused on financial performance by meeting our revenue targets while being mindful of our expenses. We will continue to innovate in the field of RNA medicines using our skills and experience in biocatalytic enzymes. Our presentations at the TIDES USA meeting next week in Boston will showcase our newest innovation. We are continuing to scale up our ECO Synthesis manufacturing platform, and we are making progress towards achieving 0.5 kilogram scale by the end of this year. I believe 2026 could be the year when ECO Synthesis is no longer viewed as just an alternative production technology, but the technology of choice for our customers' RNA medicines. We are excited by our prospects and proud of the dedication and achievements of our employees who have been instrumental in making the ECO Synthesis technology a reality. Now we'd be happy to take your questions. Operator? Operator: [Operator Instructions]. The first question comes from Allison Bratzel with Piper Sandler. Peter Spanogiannopoulos: This is Peter Spanogiannopoulos on for Allison. I was wondering if you can give us a preview of what to expect from the upcoming stereochemistry data that will be presented at TIDES. Then as a follow-up, I'm wondering when we can expect to see some data demonstrating that this stereo control translates to improved efficacy. Alison Moore: Thanks for the question, Peter. Yes, we're very excited to show our data next week. What we are going to show for the first time demonstrates stereo control at both the 3 prime and the 5 prime end of the siRNA molecule. This has not been shown before, and we will show data describing how we achieve that and the product quality of the product. We are currently working on generating data associated with the potential for improved activity. We have some data already and shortly, we are going to have more. I would also point out that there is some extremely nice published literature that has already demonstrated the opportunity of stereo control in siRNA medicine. That stereo control confers improved stability related to intracellular nuclease activity. Even mechanistically, there's a hypothesis about why there ought to be the opportunity of improved potency. As I said, we have those data in the works, and we will definitely be sharing those when we have them also. Operator: The next question comes from Kristen Kluska with Cantor Fitzgerald. Unknown Analyst: This is Ian on the line for Kristin. Could you speak at a high level about the risks that are involved in scaling the platform from 100-gram scale to like 500 gram by year-end? Now that you're operating at 100 gram, what aspects of the scale-up process do you believe have been derisked versus what remains to be proven? Alison Moore: Thank you for the question. We have a very skilled and experienced process development team here at Codexis that we have built over the last 3 years that have expertise both in traditional oligonucleotide synthesis who -- some of whom are enzymeologists and some of whom are what I would call more classic process development individuals. Together, they're working really well on stepping through the scale changes, which are often 5x to 10x scale changes every time we scale the process. I think you may be aware, we started with a very lab scale process. Now we are at a scale where we can certainly deliver material for preclinical development and very shortly approaching the ability to deliver kilo scale. I mentioned that our goal is to achieve half kilo scale by the end of the year. Twofold from there will be much more straightforward. The kinds of challenges that we're meeting during scale-up are what, I would call, normal process development challenges. Those are often the challenges of control of temperature, flow rates, etc., as we start to use larger and larger equipment. We are learning a lot about how to scale the process. I think that is part of the secret sauce that manufacturing technology companies start to accumulate. We continue to deliver products of higher and higher quality actually, and that's what matters at the end of the day. Operator: The next question comes from Matt Hewitt with Craig-Hallum. Matthew Hewitt: Congratulations on the strong start to the year. Maybe first up, regarding the Merck enzyme, I'm just curious, historically, those have been talked or discussed as being kind of $5 million to $10 million in annual revenues. I'm just curious where this one kind of fits into that and how we should be thinking about the ramp of that specific product this year? Georgia Erbez: It's a brand-new approval for us, and we are very excited by this. We are working with Merck right now as we work through their demand for the product moving forward. We hope to have more information for you in future calls. Right now, we're working with them on their supply chain and their demand on manufacturing moving forward. Stay tuned, and we'll hopefully have some more information for you in future calls. Matthew Hewitt: Then maybe separately, the ongoing engagement that you have with the FDA regarding the ECO Synthesis platform, maybe an update on how those conversations are progressing? What will be the ultimate outcome from those discussions? Does it allow for faster approval with potential partnerships down the line? Or just explain what this will ultimately lead to? Alison Moore: Thanks, Matt. That's a great question. We're actually right now working on a briefing for our next interaction with the agency, which we are planning for in approximately a quarter. Codexis was accepted into the emerging technologies program in 2024. We have been engaged with the agency around the ECO Synthesis manufacturing platform in various conversations since then. The upcoming conversation that we will be having is an ongoing part of that program. In addition to the emerging technologies program, we are working to put together the foundational information that is required to make a submission towards an Advanced Manufacturing Technologies designation. It's called the AMT designation. If and when we achieve that designation, that does enable faster timing on review times and the potential for accelerated approval. Operator: The next question comes from Matt Stanton with Jefferies. Matthew Stanton: Maybe one on the CDMO partnership side. It sounds like the goal is to commence another strategic partnership by the end of '26, which is good to see. Would love to just get an update on the 3 existing CDMO partnerships you have now that it's been a few quarters, any proof points, learnings, next steps? How do you think about some of those original partnerships being able to engage more meaningfully towards contracts, revenue, things like that over time? Britton Jimenez: Yes. Absolutely. The partnerships we have with the CDMOs that we've announced are going fantastic. The engagement with the different CDMOs around our technology, then getting a better understanding of our technology, how it works, how it scales, like I said, have just been fantastic. Everyone's been extremely pleased with the results of that. Because of the great work of the teams on both here within Codexis and within those partnerships, that has allowed for us to advance our commercial discussions. We're in progress of those discussions. Everything is looking very, very positively. We're looking forward to what lies ahead of us because we do believe there's a great path in front of us. As for other potential CDMO partners, absolutely, we're always evaluating the marketplace because we want to ensure that the availability of our technology is out there for our customers, the drug innovators to be able to get access to the technology. It's an exciting time. These partners are critical to our strategy. It opens the doors and allows for bigger and better opportunities for us because it's another pathway for us. Great things going there. Matthew Stanton: Then maybe just on the broader pipeline. It sounds like a lot of progress. You talked about a licensing deal with a major pharma company, hopefully in the back half of '26 year. Just any more flavor you can provide? Is that kind of one that you're working on, you think hits? Do you have a couple of opportunities and you're assuming one of them comes through? Would love just a little more color on that. Then anything you can provide in terms of the scope or shape of what that could look like? Is it early-stage work? Is there any chance that you could be looking at running in parallel on clinical pipeline programs? Just any more flavor in terms of the pipeline there and what that could look like over time? Britton Jimenez: Yes. There's definitely a lot of conversations happening around that. There's multiple opportunities that sit in front of us with bigger and broader partnerships. Those discussions have very different flavors to them because each of those organizations are looking at our technology in different ways. I'd say the discussions are ongoing. They're looking positive. I can't get into a lot of details around this right now just because of the types of conversations we're having. No, we're very optimistic about this. The excitement around this technology and the data that we're presenting just further enhances the value out there in the marketplace. I'd say great conversations, but still more to come here in the future. Operator: [Operator Instructions]. The next question comes from Brendan Smith with Cowen and Company. Brendan Smith: I just wanted to ask in terms of the sales funnel. Obviously, a lot of breadth here, but could you give a little more color on breakdown of out of those 40 companies, what's the mix between like large pharma, larger biotech and emerging biotech? Then maybe in terms of the 55 programs, could you just speak to which are maybe further along than others relative to each other? Britton Jimenez: Yes. No problem. Regarding the organizations, the funnel is very, very healthy. Why I say that is our conversations cover across that entire spectrum that you mentioned. We're talking to some of the largest drug innovators in the RNAi space. We're talking down to some cell companies. The size and shape is very different, which is fantastic because it gives us diversification within the platform, the technologies. We're derisking the conversations. We're not in one just specific market segment, which is great. Now of course, in those conversations, like I mentioned, those organizations have different ideas on how they want to engage with us using our ECO Synthesis platform. Each of those conversations are unique and a little different on what we're trying to accomplish. In regards to the programs, again, there is no one size fit all. People are talking to us about everything from very early-stage assets to clinical assets to commercial assets and everything in between. I can't sit here and say we only talk about one thing because there is a very good diversification within our conversations, which is really exciting. Brendan Smith: I guess a large part of the thesis, obviously, has been the broader demand outstripping existing supply. Maybe with this technical differentiation, are you viewing even some smaller indications and maybe more niche programs as potential opportunities from an asset differentiation standpoint? Are there any other ways that you view are technically feasible beyond just this upcoming TIDES presentation, which we're looking forward to? Alison Moore: Yes. As Britton just stated, at the moment -- so just to be clear, we have existing work and existing contracts with some very large pharmaceutical companies and with innovator and stealth companies for the ECO Synthesis manufacturing platform. We are very open to what folks might like to use the platform for at the moment. Since we're really just starting to show the data and show real evidence of the product quality associated with the opportunity of stereo control, I expect that we probably will get some more inbound interest there. We certainly will be interested to work with a variety of customers there. We don't have unlimited bandwidth. Actually, just right at the moment, we are working on improving productivity and throughput so that we can make sure that we have the right kind of velocity and capacity to meet those customers' demands. I suppose, maybe, Brandon, your question is, at the end of the day, if there would be a high-volume client or a client with high volume potential, we would prioritize that client. Operator: Thank you. At this time, I would like to turn it back to Alison Moore for closing remarks. Alison Moore: Thank you, everyone, for joining us today, and we will certainly be looking forward to seeing some of you at upcoming investor conferences. If at any time you have additional questions, please feel free to contact us. I hope you have a good afternoon and evening. Thank you. Operator: Thank you. This does conclude today's teleconference. You may disconnect your lines at this time, and thank you for your participation, and have a great day. 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While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Codexis (CDXS) Q1 2026 Earnings Transcript was originally published by The Motley Fool