Release Date: February 27, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: What do you think will drive the value proposition in rare disease markets for Codexis? A: Stephen Dilly, President and CEO, explained that it is a combination of having a validated platform with regulatory precedent and engaging with small companies. Codexis can offer enzymatic solutions that are difficult or impossible to achieve chemically, which can capture significant value from these assets.
Q: How will Codexis communicate progress on agreements with partners to the market? A: Stephen Dilly emphasized the need for discretion due to the competitive advantage partners gain from working with Codexis. While they aim to communicate progress, they prioritize confidentiality and partner relationships, which may limit the details they can share publicly.
Q: Can you provide more details on the seven-plus customers in the pipeline and how they relate to revenue conversion? A: Kevin Norrett, COO, noted that the relationships are multifaceted and evolve over time. Conversations may start with ligation and expand to include ECO Synthesis. The focus is on traction rather than categorization, and revenue growth is expected in the second half of the year as contracts signed in the first half are executed.
Q: What are the expectations for gross margins in 2025, and how is Codexis addressing lower-margin products? A: Georgia Erbez, CFO, stated that they expect gross margins to improve in 2025 by retiring or divesting lower-margin products. The focus is on enhancing the product mix to achieve better margins throughout the year.
Q: How does Codexis plan to achieve cash flow positivity by the end of 2026, and what role does the ECO platform play? A: Georgia Erbez explained that the path to cash flow positivity involves growing the revenue base and decreasing net loss as contracts are signed. The ECO platform is expected to contribute significantly to revenue growth, particularly in the latter half of the year.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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