Codexis is an US enzyme engineering company that develops high-performance enzymes and proteins for applications in pharmaceuticals, biotherapeutics, and molecular diagnostics.
There are a number of new developments for Codexis. Let's begin with your new partnership with Alphazyme. What is its significance?
My role as CEO is to keep the company focused on the main value drivers. Codexis has done extensive work in enzyme engineering, creating a portfolio of enzymes that hold strong potential but need a partner to bring them to market effectively. That is where Alphazyme comes in. As part of Maravai LifeSciences, they have the commercial resources to give our enzymes the attention they deserve, allowing Codexis to focus on our core priorities.
Partnering with Alphazyme has freed my team from managing these enzymes, enabling them to direct their efforts toward the ECO Synthesis platform and RNA therapeutics. This move aligns with our strategy of honing in on what drives the most value for us, allowing us to concentrate on biocatalysis for the next wave of medicines.
Does that mean your primary focus now is the ECO Synthesis platform?
Yes, our primary focus is biocatalysis for medicine development. We have built a base business in biocatalysis for small molecules over the past decade and have seen notable successes, such as contributions to the synthesis of Paxlovid and Januvia. Moving forward, we are leveraging this expertise to advance RNA therapeutics, specifically through the ECO platform, which enables enzymatic synthesis of RNA-based medicines.
Our approach involves innovative solutions like our ligation strategy, which stitches together RNA strands to create complete molecules. We collaborate closely with companies and CDMOs to provide enzymatic pathways tailored to the therapeutic needs of our partners. Our organization is now focused and committed to making these advancements in RNA therapeutics a reality.
Do you plan to license out or sell other assets within Codexis as you continue focusing on the ECO platform?
Yes, as part of our focus strategy, we are evaluating every enzyme we support to ensure it meets our ROI expectations. For heritage enzymes that may be important to our partners but less critical for Codexis, we are open to licensing them out. This approach lets us streamline our focus, supporting only the most valuable assets that align with our long-term goals.
This out-licensing strategy is not limited to non-core assets. Even within our core areas, we assess whether resources could be better used elsewhere, reinforcing our commitment to prioritize key areas like Eco and RNA therapeutics.
Are you planning to roll out the ECO Synthesis platform in 2025?
Some aspects of it, yes. We are on schedule, and we already have commercial partnerships around our ligase technology. Our focus for 2024-2025 is on proving the concept with select partners for the full ECO platform, with commercial traction expected in 2026.
We also have upcoming announcements that we will share at industry gatherings like the TIDES meetings. These presentations will highlight our progress with partners like Bachem, where we will showcase our ligase technology and our ability to optimize ligases for specific molecules. This progress is a key step toward our full commercial launch.
Your platform focuses on efficiency improvements for RNA therapeutics. Is the main benefit for partners in improved efficiency rather than making something entirely new?
Initially, yes, it is about making existing RNA products more efficiently. However, there are some aspects we can achieve enzymatically that cannot be done chemically, like controlling the chirality of thiophosphate groups. For companies developing specific entities, our enzymatic approach provides unique opportunities that might not be possible through traditional chemical synthesis.
By demonstrating multiple methods to produce the same molecule, we are showing partners that a transition from chemical to enzymatic synthesis is feasible. This versatility is attractive for companies looking to reduce costs and carbon footprint while retaining product quality.
Have you considered expanding Codexis's capabilities to turn the company into a CDMO?
Yes, but we are approaching this cautiously due to the high costs involved. Our immediate goal is to partner with established CDMOs for GMP material. However, we are close to completing an innovation lab that can produce GLP-grade material for preclinical studies, with plans to eventually scale up to a kilogram-scale GMP facility.
In five to ten years, our vision is to become a direct supplier of GMP material and a CDMO ourselves. Until then, we rely heavily on partnerships, collaborating with CDMOs that can integrate the Eco platform into their existing infrastructure for large-scale production.
What types of companies currently express interest in the ECO platform?
It is mostly the big players in the RNA space. We are engaged with all major companies in this area, discussing everything from full platform support to improving productivity for existing molecules. On the CDMO side, it is typically the more innovative organizations that are looking to expand their RNA capabilities.
For smaller biotechs, ECO might be early for adoption, given their single-asset focus. We are working on establishing a clear GMP path to assure them that our platform can meet their regulatory and scalability needs. This year, we are focused on proving this path to encourage broader adoption.
How do you view the current investment climate for the life sciences industry?
Recovery has been uneven, with some companies thriving and others struggling. Codexis is in a strong financial position; we have recently extended our runway to 2027 and anticipate profitability in 2026. In the last few months, we raised over $30 million due to existing investors wanting to increase their stake, and this has positively impacted our stock performance.
My goal is to position Codexis as an investable “have” when the market recovers fully. With our financial stability and solid performance in recent quarters, I am optimistic about our trajectory and our ability to deliver on our promises.
When we meet again next year, what do you hope to report on Codexis’s progress?
Next year, I expect to share specifics on our partnerships and give a firsthand look at our ECO innovation labs. We will be operational, producing GLP material in impressive quantities and demonstrating how we guide partners through every stage, from preclinical to commercial-scale production.
By then, the Eco platform will be more tangible and proven, giving us confidence to showcase its impact. I look forward to inviting you back and illustrating Codexis’s progress firsthand.
