Codexis (CDXS) Stephens 26th Annual Investment Conference | NASH2024 summary

Industry trends and market opportunity

• siRNA therapeutics are experiencing rapid growth, with six approved products and 400 more in development, including 50 in late-stage trials.

• Advances in targeting and durability have expanded siRNA applications beyond the liver to CNS and skeletal muscle.

• Global demand for siRNA drugs is projected to rise from 700–800 kg/year to 30 metric tons by early 2030s.

• Current chemical synthesis methods are resource-intensive and environmentally harmful, producing significant carbon emissions.

• Enzymatic synthesis offers a scalable, purer, and more sustainable alternative for siRNA production.

ECO Synthesis platform and technology

• ECO Synthesis uses enzymes in aqueous media to build siRNA, reducing reliance on toxic solvents and improving scalability.

• The double-stranded RNA ligase enables immediate improvements in yield, purity, and cost for chemical manufacturers.

• Recent demonstrations showed equivalence between fully enzymatic, hybrid, and chemical synthesis methods for siRNA drugs.

• The platform allows stepwise adoption, minimizing supply chain risk for partners.

• ECO Synthesis is expected to launch in 2026, with optimization and development partnerships ongoing through 2025.

Commercial traction and financial outlook

• Initial adoption of the ligase by major pharma customers has led to orders for clinical and anticipated commercial supply.

• Revenue from ligase products is expected to increase in 2024 and more significantly in 2025.

• By end of 2026, profitability is projected based on existing products and customers.

• Full ECO Synthesis platform could generate $50M+ per product annually, targeting a $30–50B total addressable market.

• ECO Innovation Lab will come online soon, enabling GLP-grade siRNA production and supporting preclinical studies.