Codexis, Inc. 2026 Q2 Earnings Call

Thank you, operator. With me today are Alison Moore, President and Chief Executive Officer, Stefan Lutz, Chief Scientific Officer, and Britton Jimenez, Senior Vice President, Sales and Marketing. During this call, management will be making a number of forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including our guidance for 2026 revenue, anticipated milestones and product launches, facility expansions, technical milestones, and public announcements related thereto, as well as our strategies and prospects for revenue growth, path to profitability, and successful execution of current and future programs and partnerships. To the extent that statements contained in this call are not descriptions of historical facts regarding Codexis, they are forward-looking statements reflecting the beliefs and expectations of management as of this statement date, August 11, 2026.

You should not place undue reliance on these forward-looking statements because they involve known and unknown risks, uncertainties, and other factors that are, in some cases, beyond Codexis' control and that could materially affect actual results. Additional information about factors that could materially affect actual results can be found in Codexis filings with the Securities and Exchange Commission. Codexis expressly disclaims any intent or obligation to update these forward-looking statements, except as required by law. I'll turn the call over to Alison.

Thank you, Georgia, and thanks everyone for joining. Codexis generates manufacturing solutions using high-performance engineered enzymes. The investment of over 20 years of our expertise is playing out in our pharma biocatalysis pipeline, which supports 14 commercial products and a pipeline of 15 in phase II and III clinical development. This expertise has also enabled the creation of the ECO Synthesis manufacturing platform, a scalable aqueous process for the production of oligonucleotides. I'm pleased to share our progress through the first half of 2026, and I'm excited for the rest of the year and beyond. Today, we reported solid financial results for the second quarter of 2026 with revenue of $14.9 million. Our recent successful financing, which closed two weeks ago, resulted in a capital raise of $25 million of net proceeds. This provides us with greater stability and flexibility as we pursue our strategic goals.

Georgia will give us more details on our financial achievements later in the call. An important highlight of the quarter was the TIDES US conference in May, where we shared important new data on our ECO Synthesis technology. Codexis presented data demonstrating full-length siRNA synthesis with precise control of phosphorothioate chemistry using our technology platform. Stereochemistry plays an important role in how oligonucleotides perform. Stefan Lutz, our Chief Scientific Officer, will provide additional details on the growing capabilities of our platform later in the call. I am also pleased to report that the construction of our GMP manufacturing facility is proceeding according to plan. This facility is a core component of our strategy to enable the adoption of ECO Synthesis into the pipelines and supply chains of our customers. This facility will deliver GMP material to support IND filings and supply clinical trials and deepen Codexis production scale platform expertise.

Our building permit application will be submitted momentarily, and our manufacturing equipment has been ordered. We will begin construction following approval of the permit. The cost of the construction for this project is approximately $25 million. This investment underscores our long-term commitment to supporting product development, scale-up, and manufacturing for our customers. Years ago, the pioneering science of Codexis transformed the opportunities available to process chemists, enabling the manufacture of complex small molecule chemistries. This innovation has now become standard practice in the production of small molecule medicines. Today, we believe that the ECO Synthesis platform will similarly revolutionize the ability to generate large-scale quantities of siRNA medicines, making this advanced modality accessible to patients across all therapeutic areas. ECO Synthesis, which leverages enzymatic production solutions, offers a scalable alternative to the current solid-phase organic synthesis technology.

The latter is not sufficiently scalable and requires enormous quantities of solvent, posing significant challenges as demand for siRNA is expected to increase 30-fold by 2035. This manufacturing bottleneck is anticipated to emerge within the next three years, particularly as large phase III cardiovascular trials reach their conclusions. As communicated at TIDES, the industry recognizes the limitations of current production methods and acknowledges the need for radical new technologies. The impact of the ECO Synthesis platform is becoming increasingly clear as more organizations embrace enzymatic approaches. Codexis is in the leading position to industrialize this important new method. I will now turn the call over to Stefan for more details on our TIDES data.

Thank you, Allyson. At TIDES US in May, we presented new data demonstrating on how our ECO Synthesis manufacturing technology is not only advancing existing, but also unlocking new capabilities for production of siRNA therapeutics. Drug developers currently have limited control over phosphorothioate stereochemistry, as existing chemical manufacturing methods produce complex mixtures that vary in therapeutic potency and require time and labor-intensive downstream processing. In contrast, the engineered enzymes that power ECO Synthesis deliver products with defined stereochemical configurations, offering users unprecedented control within a scalable oligonucleotide manufacturing process. These stereopure molecules can confer overall improved product quality, enhance therapeutic potency, and streamline manufacturing by reducing process complexity. We continue to explore the biological impact of stereo control and believe that this capability promises a significant advantage for customers seeking to optimize for performance, manufacturability, and differentiation of their siRNA assets.

In addition, we introduced starterless ECO Synthesis, a novel capability to launch RNA synthesis from a single nucleotide rather than a chemically synthesized starter oligonucleotide. Although still in the R&D stage, the starterless approach is a technically simpler solution for initiating oligonucleotide synthesis and lowers cost for siRNA manufacturing. This innovation is particularly relevant as the industry increasingly explores fragment-based assembly strategies in which shorter oligonucleotides are ligated to produce full-length siRNA therapeutics. In this context, eliminating the need for starter oligonucleotides offers even greater economic and operational advantages. Feedback from business and CMC representatives at the conference has reinforced our view that starterless synthesis marks a material advancement in enzymatic siRNA manufacturing. We will provide updates on this technology as additional data become available.

More broadly, our innovations presented at TIDES USA have generated significant interest across the industry and have resulted in additional engagement with prospective customers and strategic partners. I will let Britton speak to that in a minute. One message that came through clearly at this year's TIDES conference, as companies envision the future of RNA medicines, they recognize the need for manufacturing technologies that can overcome the limitations of traditional solid-phase synthesis. Enzymatic approaches, including ligation and sequential synthesis, are integral to these future strategies. Our focus remains on executing against our development objectives and demonstrating that ECO Synthesis can be industrialized at the scale required to support broader adoption of siRNA therapeutics across larger patient populations. We believe our unique combination of product quality, stereochemical precision, and scalable enzymatic production represents a compelling competitive advantage in the emerging oligonucleotide manufacturing landscape.

Our customers are an invaluable source for new ideas, and we listen to what matters to them. I will now turn the call over to Britton for an update on our commercial activities.

Thanks, Stefan. The number of RNA medicines in development is expanding at an estimated rate of at least 10% per year, with over 100 product candidates in clinical trials and more than 400 in pre-clinical development. It is broadly recognized that current production technologies will not be able to keep up with future demand. The rapidly changing landscape for siRNA is felt most keenly by CDMOs who supply the vast majority of oligonucleotide medicines today using solid-phase organic chemistry. The ability to scale production is complicated by technical challenges associated with solid-phase synthesis and further burdened by the capital cost of building new facilities. It should be no surprise that some of our most motivated customers are CDMOs. For each of the three CDMOs we have contracts with, we have completed small-scale technology transfers into their facilities so that they can assess ECO Synthesis in-house.

The most advanced of those assessments has been completed, and we are in negotiations for a long-term commercial contract. We are very excited about this prospect, as these relationships will be revenue generating and will create additional channels for adoption and scaling of the ECO Synthesis technology. Our engagement with biopharmaceutical companies continues to flourish. Our specific objectives are to promote adoption of our technology into therapeutic asset pipelines, in which we supply preclinical and clinical material and support IND filings. In addition, our technology can be integrated into an innovator's company's production environment. In the last quarter, we have been engaged with the pioneer siRNA companies, in addition to other large biopharma companies, to progress partnerships with these objectives. Our small molecule biocatalysis business remains stable and profitable, and it benefits from some recent new product approvals that have higher margins than the old legacy products.

We continue to support 14 commercially approved products that are dependent on our enzymes, including four products that received regulatory approval in 2026. Another product received a label expansion, significantly increasing the market potential of that drug. After years without a new product approval, this activity has resulted in a renewed growth trend. The product pipeline also remains robust with 15 programs in phase II or III clinical development and data readouts expected on seven clinical trials in the next two years. We are excited for our prospects to demonstrate sustained, steady growth in this side of the business. With that, I will now turn the call over to Georgia for a discussion of our financial results for the second quarter.