Codexis, Inc. Q3 FY2025 earnings call

• Signed supply assurance agreement with Merck, which provided nondilutive cash to execute business plans and build GMP facility.
• Expect to sign lease for new facility in next week or 2, enabling GMP-grade siRNA manufacturing.
• ECO platform has 11 revenue-bearing contracts with 40 more in pipeline.
• Technical team made progress on perfecting and scaling ECO platform, with new data to be presented at TIDES EU.
• Restructured organization to transition from enzyme supplier to full-service manufacturing innovator in oligonucleotide manufacturing.
• Stephen Dilly to step down as CEO, Alison Moore to succeed him as CEO, Stephen to remain as Executive Chair; Britton Jimenez takes over commercial reins.
• Heritage small molecule biocatalysis business remains crucial, with focus on ECO Synthesis for manufacturing and production technologies.

Total revenues for the third quarter of 2025 were $8.6 million, down from $12.8 million in the third quarter of 2024, primarily due to variability in customers' manufacturing schedules and clinical trial progression. Product gross margin was 64% in Q3 2025, up from 61% in Q3 2024, driven by a shift to more profitable products. Research and development expenses were $13.9 million in Q3 2025, up from $11.5 million in Q3 2024, due to higher headcount and lab supply costs. Selling, general and administrative expenses were $11.2 million in Q3 2025, down from $13.6 million in Q3 2024, due to lower employee-related costs and legal expenses. Net loss was $19.6 million in Q3 2025, compared to $20.6 million in Q3 2024. The company ended Q3 with $58.7 million in cash, cash equivalents, and investments.

• Merck agreement revenue to be recognized in Q4 2025 and Q1 2026, helping make or slightly exceed top end of 2025 revenue guidance.
• Restructuring expected to reduce burn by approximately 25%.
• Cash from Merck agreement and restructuring will extend runway through end of 2027.
• Further guidance on 2026 financials to be provided after first of the year.

Forward-looking statements involve known and unknown risks, uncertainties, and factors beyond Codexis' control that could materially affect actual results. Additional information about such factors can be found in Codexis' SEC filings.

Q: Wish everyone on the management team well during transition and ask about impact on partnership strategy and GMP scale-up partner.

A: Transition doesn't change plans; continuing to land early phase contracts, ligase used in 3-kilogram siRNA batch, and well-positioned with options to provide to customers.

Q: Describe unique capabilities Nitto brings to evaluation agreement vs Proton.

A: Nitto is a market leader in CDMO marketplace, helps scale technology into larger batch sizes needed for Phase II, III, and commercial production.

Q: Speak about contribution of siRNA revenue to product segment and offsetting legacy small molecule biocatalyst sales decline.

A: Current contracts are in service area, not product area; service revenue expected to be relatively consistent, shifting from legacy to new areas.

Q: Talk about TIDES EU presentation and impact on commercial progress.

A: Excited about TIDES EU presentation, will show data on technology scaling and in-process analytics using ECO Synthesis platform, which are first-in-class for siRNA therapeutic developers.