Q2 2024 Codexis Inc Earnings Call Transcript
Key Points
- Codexis Inc (CDXS) is on track to achieve double-digit product revenue growth for 2024, with a strong second half expected.
- The company has a deep pipeline of pharmaceutical manufacturing opportunities, which are advancing into late-stage clinical trials and commercialization.
- Codexis Inc (CDXS) has strengthened its commercial organization by adding a new Senior Vice President of Commercial Operations, Britton Jimenez, who brings over 20 years of experience in the CDMO space.
- The ECO synthesis platform is ahead of schedule, accelerating commercial momentum and engaging major players in the siRNA manufacturing space.
- The company is focused on becoming a direct producer of GMP-grade siRNA, which could significantly enhance revenue opportunities and margins.
- Q2 2024 revenues were down compared to Q2 2023, with total revenues at $8 million, reflecting a decrease in both product and R&D revenues.
- Product gross margin decreased to 45% this quarter, largely driven by product mix.
- R&D expenses, although reduced year-over-year, are expected to ramp up in the second half of the year due to investments in the ECO synthesis Innovation Lab.
- The company faces challenges in transitioning to a direct producer of GMP-grade siRNA, which involves significant investment and development of a new GMP facility.
- Codexis Inc (CDXS) acknowledges the lumpiness in revenue distribution throughout the year, which can lead to uneven financial performance across quarters.
Welcome to the Codexis second-quarter 2024 earnings conference call. (Operator Instructions) Please note this event is being recorded.
And now I'll turn the call over to Kerry McGinn, Director of Investor Relations. Please go ahead.
Thank you, operator. With me today are Dr. Stephen Dilly, Codexis' President and Chief Executive Officer; Kevin Norrett, Chief Operating Officer; Sri Ryali, Chief Financial Officer. Dr. Stefan Lutz, our SVP of Research, is also here and will be available for any questions during the Q&A.
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 2024 revenue, product revenues and gross margin on product revenues, anticipated milestones, including product launches, technical milestones and public announcements related thereto, as well as our strategies and prospects for revenue growth and successful execution of current and future programs
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