CODEXIS, INC. Q4 FY2024 earnings call

• Stephen Dilly highlighted progress in returning the heritage pharma manufacturing business to growth, reducing costs, and defining a path to profitability, with the ECO Synthesis platform set for commercial liftoff in 2025.
• Kevin Norrett discussed commercial traction across Pharma Biocatalysis and ECO Synthesis platforms, revenue drivers, and 2025 milestones, including securing a CDMO scale-up partner and establishing an ECO Innovation Lab.
• Georgia Erbez provided financial results overview, noting revenue, gross margins, operating expenses, and guidance for 2025 revenue range of $64M to $68M, with Q1 2025 revenue expected $8M to $10M.

Total revenue for the fourth quarter ended December 31, 2024 was $21.5 million, including product revenue of $9.8 million and R&D revenue of $11.6 million. For the year ended December 31, 2024, revenue without PAXLOVID was $59.3 million compared to $62 million for the prior year. Product gross margin was 63% in the fourth quarter of 2024. Excluding PAXLOVID, this was down from 71% in Q4 2023. Product gross margin in the year ended December 31, 2024 was 56%, compared to 63% the prior year, excluding PAXLOVID, primarily driven by product mix.

• 2025 total revenue guided in the range of $64 million to $68 million.
• First quarter of 2025 revenue expected to be in the range of $8 million to $10 million, with growth expected in the first half and stronger ramp in the second half as contracts are signed.
• Codexis ended 2024 with $73.5 million in cash, cash equivalents, and short-term investments, expected to fund operations through achieving cash flow positive basis by end of 2026.

Q: Impact of GMP scale-up partner on spending?

A: Not a lot of cost on Codexis' side as assets are developed in ECO Innovation Lab and tech transferred, but it accelerates path to GMP and provides time to set up own facility.

Q: Expansion on GMP scale-up partnership?

A: Involves selecting and finalizing negotiations with players at the table, including feasibility testing, and results in win-win for both parties with no major spend on Codexis' side initially.