Codexis, Inc.

What they do

Codexis uses its proprietary CodeEvolver directed evolution platform to engineer enzymes for two businesses: a small molecule pharma biocatalysis business that sells optimized enzymes to large pharmaceutical companies, and an ECO Synthesis manufacturing platform that develops enzymatic tools and processes for large-scale manufacturing of RNAi (siRNA) therapeutics. The ECO Synthesis platform is at an early commercial stage, with an Innovation Lab producing non-GMP siRNA for customers under development services contracts and partnerships with three CDMOs for eventual GMP production.

Revenue drivers

• Small molecule pharma biocatalysis — Sells engineered enzymes to large pharma companies; product revenue grew in Q2 2026 driven by customer product launches, with product gross margin of 73%.
• Research and development revenue — Revenue from development services and collaborations, primarily under customer contracts for the ECO Synthesis platform and enzyme engineering; declined in Q2 2026.
• ECO Synthesis development services — Early-stage revenue from Innovation Lab contracts for non-GMP siRNA drug substance and process development; currently small but expected to grow as partnerships advance.

Recent performance

For Q2 2026, total revenues were $14.9 million, down from $15.3 million in Q2 2025, driven by lower R&D revenue partially offset by higher product revenue. Net loss was $12.0 million, or $0.13 per share, in Q2 2026. Full-year 2025 revenues were $70.4 million with a net loss of $44.0 million, improving from a $65.3 million loss in 2024. As of June 30, 2026, cash was $27.2 million, but a July equity raise added about $25 million net, with proforma cash of approximately $80 million. Total assets were $120.1 million, and shareholder equity was $33.0 million.

Strategy

Management is focused on industrializing the ECO Synthesis Manufacturing Platform, with plans to build an ECO GMP Manufacturing Center for preclinical and Phase 1 siRNA material, targeting full production by end of 2027. They are expanding relationships with CDMO partners, aiming for an additional strategic partnership by end of 2026, and advancing partnerships with drug innovators toward clinical-stage manufacturing agreements. In the biocatalysis business, they continue to sell enzymes and benefit from customer product launches. The company raised ~$25 million in July 2026 to strengthen the balance sheet and fund these initiatives.

Risks

• History of net losses — Codexis has never been profitable, with accumulated deficit of $606.8 million as of end of 2025, and may not achieve profitability.
• Unproven ECO Synthesis platform — The enzymatic RNA synthesis technology is novel and largely unproven at commercial scale, and failure to validate performance could impede customer adoption.
• Customer concentration — The company depends on a limited number of customers, and supply agreements generally do not require minimum purchase quantities.
• Regulatory uncertainty — Products are believed exempt from FDA requirements, but regulators could disagree and impose costly regulations.

Outlook

Management reiterated full-year financial guidance and expects to advance at least one CDMO partnership to technology transfer in 2026. They plan to submit a building permit application for the ECO GMP Manufacturing Center in the second half of 2026 and continue engagement with FDA's Emerging Technologies team, with a meeting expected in Q4 2026. The company also aims to commence an additional strategic CDMO partnership by end of 2026.