Release Date: October 31, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: What are the key parameters to determine the success of the synthesis process for an undisclosed asset? A: Stefan Lutz, SVP of Research, explained that the two key parameters are the overall yield of the full-length product and the impurity or quality of the material, represented by the impurity profile. Both sets of information will be provided.
Q: Can you provide details on future partnerships or collaborations, such as company names or program specifics? A: Kevin Norrett, COO, stated that while they aim to provide as much detail as possible, the specifics will depend on the partner. The focus is on moving projects from proof of concept to revenue-generating development projects within their ECO Innovation Lab.
Q: Are there any expectations for PAXLOVID sales, given the higher-than-expected sales reported this quarter? A: Stephen Dilly, CEO, mentioned that they are not assuming anything regarding PAXLOVID sales and are not planning for any contributions from it.
Q: What type of clients are showing interest in the ECO Synthesis technology, and how are you prioritizing these projects? A: Kevin Norrett, COO, noted that there is significant interest from large siRNA drug developers. They are prioritizing quality over quantity and focusing on proving their technology to major players, while also working with CDMOs to establish a GMP scale-up partnership.
Q: What are the major hurdles in forming partnerships, and how do they differ between pharma and CDMOs? A: Stephen Dilly, CEO, and Kevin Norrett, COO, explained that for CDMOs, the focus is on identifying a major siRNA-producing partner for GMP scale-up. For large drug innovators, the focus is on traditional ECO-innovation development projects. The key is showing a path to GMP and ensuring raw material supply security.
Q: How will the technical collaboration for ECO Synthesis be structured, and what might the first collaboration look like? A: Kevin Norrett, COO, stated that it depends on the partner. Collaborations could range from straightforward development contracts to joint development collaborations with upfront milestones and royalties. The preference is to fill the ECO Innovation Lab with current development contracts.
Q: What is the expected impact of bringing enzyme production in-house on gross margins and capacity? A: Stephen Dilly, CEO, indicated that bringing enzyme production in-house should improve margins due to higher-margin new enzymes. The current facilities can accommodate this production, and they are considering where to locate a future kilo lab.
Q: Why do customers prefer enzymatic production of RNA building blocks, and what is the potential revenue opportunity? A: Stephen Dilly, CEO, explained that enzymatic production offers better quality and environmental benefits. It also provides leverage in pricing negotiations with chemical producers. Kevin Norrett, COO, added that the opportunity could be significant, especially as mRNA production scales up.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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