Codexis (CDXS) Q2 FY26 earnings call: guidance and Q&A

How have customers reacted to the new stereochemistry and starterless synthesis data, has it led to new engagements, and what updates are expected at TIDES Europe?

Customer reaction has been very positive, leading to advanced conversations and new engagements, particularly from past interested customers. TIDES Europe will continue the story, potentially with data on the biological impact of stereo control.

“TO BUILD ON STEPHON'S COMMENTS THERE, FROM A CUSTOMER INTERACTION, ACTUALLY QUITE A BIT OF EXCITEMENT CAME FROM TIDE.GUS AROUND BOTH THE STEREOCHEMISTRY CONTROL AND THE STARTERLESS INITIATOR. with several customers that believe both in the value of stereochemistry control from a better therapeutic perspective, but also from a quality, that better product quality perspective.”

asked by Allison Bratzel · answered by Britton Jimenez

How might stereochemistry advances allow partners to lower dosage, save money, and improve safety?

Stereochemistry can improve therapeutic efficacy and product quality, leading to manufacturing advantages like reduced process complexity and simplified downstream purification. Codexis is also evaluating biological activity improvement.

“So when it comes to stereochemistry, these drugs operate within the cell. The cellular environment is chiral, has stereocontrol, and so these drugs certainly have the potential to also play to that nature. It's also a good indication that in the small molecule dual API field, and the stereochemistry has shown to be an important factor in the therapeutic efficacy of assets.”

asked by Jenny on Kristin Kelska's line · answered by Stefan Lutz

How much will the desire for precise stereochemistry control lead to new partners, what data supports its benefits, and why will it matter as siRNA development becomes more competitive?

Some customers are very interested in stereochemistry for potency opportunities, while others are less concerned. Codexis can engage with both. They are making material with specific stereo configurations and advancing studies on activity opportunities, with other companies also interested.

“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. And we have created an environment. engagement with both kinds of customers and We are happy to deploy the EcoSynthesis technologies whether they're interested in stereochemistry or not.”

asked by Jenny on Kristin Kelska's line · answered by Unknown Speaker

How should investors think about the cadence of the $72M-$76M FY26 revenue, given it's back-half weighted, and how much is from existing contracts?

Revenue comes from diverse sources, including improving base business performance and strong leads in EcoSynthesis. The company expects continued positive trends but did not provide a specific split or detailed cadence.

“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're continuing to see the same kind of trends moving forward, but we also have some strong leads in performance and the ecosynthesis as well.”

asked by Matthew Hewitt · answered by Unknown Speaker

For the four newly approved products, will orders be consistent or lumpy, and how should this be modeled?

Orders can still be lumpy and unpredictable due to varying customer manufacturing plans (e.g., stockpiling). However, overall positive trends are observed from these approvals.

“But so I would say that it's still, as we have experienced in the past, it can still be lumpy and it can still be unpredictable. But overall, we are seeing positive trends these approvals and you know we're pretty excited about that.”

asked by Matthew Hewitt · answered by Unknown Speaker

With 15 programs in Phase 2/3 and 7 readouts in the next two years, is there an opportunity for elevated growth in the biocatalyst business over the next couple of years?

The company is excited about the prospects, noting a maturing pipeline after a period of few approvals. They expect this business to grow in the high single digits for the next five to seven years, spanning niche to large markets.

“Now, we're really excited about the prospects for the base business right now with the approvals coming up. As a reminder, you know, in the last two years, we had hardly any approvals, and now we're starting to see some of our pipeline mature, and that's 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.”

asked by Matt Stanton · answered by Unknown Speaker

Have all three CDMOs completed small-scale tech transfers, are all in advanced negotiations, and what is the line of sight for commercial contracts?

All three CDMOs have completed small-scale tech transfers into their facilities. One is significantly more advanced, having completed its assessment and is now in long-term commercial contract negotiations. The other two are a step behind, still evaluating the technology.

“So, as I had mentioned, with those three CDMO partners, we have completed the first half of the project, which was within Codexys, and now we have tech transferred at a small scale the process into their facilities. Now, understand each of those CDMOs aren't on the exact same timeline. Some are more advanced than others. but each of those CDMOs has our technology in their facilities.”

asked by Matt Stanton · answered by Britton Jimenez

What is a reasonable ballpark for how much siRNA Codexis could supply to the industry in 18-24 months relative to current supply, considering industry demand?

Codexis aims to reach kilo-scale production before GMP operationalization, then step up 10x via partnerships. Industry demand is expected to increase 30-fold by 2035, with a bottleneck anticipated in 3 years, driven by large cardiovascular trials. EcoSynthesis is 70% more capital efficient than current methods.

“Yes, so what we've been communicating is this year is an important year because 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.”

asked by Daniel Arias · answered by Unknown Speaker