Codexis (CDXS) investor relations material

Industry context and demand trends

• siRNA therapeutics are gaining momentum, with projected demand rising from 100 kg in 2023 to potentially 50 metric tons or more by decade's end, driven by new entrants and expanding indications.

• Current chemical synthesis methods for siRNA are inefficient, costly, and limited in scalability, creating a supply bottleneck for future high-volume needs.

• Enzymatic synthesis is positioned as the only viable solution for meeting large-scale siRNA demand, with industry leaders and new players recognizing this shift.

• Conferences like Tides have become key venues for showcasing technological advances and generating significant customer interest and leads.

• The field is transitioning from chemical to chemoenzymatic and fully enzymatic manufacturing, with enzymatic methods enabling new product possibilities.

Technology and platform offerings

• The company offers a flexible toolbox: ligation (chemoenzymatic), end-to-end enzymatic synthesis, and hybrid approaches tailored to customer needs.

• Demonstrated ability to synthesize complex drugs like Inclisiran using multiple methods, including full enzymatic and hybrid processes.

• Recent technical milestones include controlling molecular chirality and scaling up to 10 g, with plans to demonstrate 100 g at upcoming conferences.

• Internal GMP facility commissioning is a near-term milestone, supporting clinical trial supply and customer confidence.

• Enzymatic processes offer advantages in purity, scalability, and infrastructure simplicity, reducing costs and setup times compared to chemical methods.

Customer engagement and business model

• Customer engagement spans from simple supply agreements for ligases to long-term development partnerships for the ECO Synthesis platform.

• Contract structures vary: large pharma prefers cost-per-run models, while early-stage companies may involve royalties and shared upside.

• The company is selective, targeting early-phase assets with high potential and credible management, aiming to lock in future revenue streams.

• Customer conversion rates are high, with a growing pipeline and a focus on building long-term relationships.

• The business model shifts from modest early-stage economics to significant revenue as drugs advance through clinical development and scale.