Codexis, Inc. · NASDAQ:CDXS
Codexis — Investor Presentation (March 2018)
33 slides from Codexis's investor presentation, Mar 12, 2018
Slide 1: Codexis Corporate Presentation March 2018
March 2018 Codexis Corporate Presentation Nasdaq: CDXS TM
Slide 2: Forward-Looking Statements
Forward-Looking Statements • These slides and the accompanying oral presentation contain forward-looking statements that involve risks and uncertainties. These statements relate to future events or our future financial or operational performance and involve known and unknown risks, uncertainties and
Slide 3: Codexis – Unlocking the Power of Proteins
Employees ~120 (70 in R&D) Company History 16+ Years Cumulative Investments > $500m 2018 Revenues (Forecast) Total = $60-63 million 5Yr CAGR: 13-15% Patents & Applications > 1100 worldwide Codexis – Unlocking the Power of ProteinsTM 3
Slide 4: Proteins – Infinite Source of New Value Creating Materials
4 Proteins – Infinite Source of New Value Creating Materials
Slide 5: Complexity of Protein Structure-Function Relationships
Complexity of Protein Structure - Function Relationships DNA Code Protein Function Protein Structure Codexis Uniquely Mapping This Big Data Landscape 5
Slide 6: CodeEvolver: World-Leading Protein Engineering Platform
CodeEvolver®: World-Leading Protein Engineering Platform Starting protein from Codexis libraries and/or in silico designed Identifying new protein libraries that accelerate toward targeted protein function enrichments Automated gene synthesis, protein production, performance testing and sequencing o
Slide 7: Radical Protein Overhauls Are Required
Radical Protein Overhauls Are Required THIS is what CodeEvolver® Routinely Delivers Extent of Protein Engineering Needed to Displace Incumbent Products 29 sequence changes 103-fold improvement over wild-type acylases 30 sequence changes 105-fold improvement over wild-type transaminases 35 sequence c
Slide 8: With Accelerating Speed & Shrinking R&D Costs
With Accelerating Speed & Shrinking R&D Costs 40 Scientists Years Per Project 10 Scientists Years Per Project 2 Scientists Years Per Project Sources of CodeEvolver®’s Accelerating Speed > Expanding libraries of better performing starter proteins > Proprietary artificial intelligence algorithms machi
Slide 9: Accelerating Protein Targets Leveraging CodeEvolver
9 Accelerating Protein Targets Leveraging CodeEvolver® Novel, High Performing Industrial Enzymes Biotherapeutics Protein Catalysts for Pharma Manufacturing History: First non-pharma project 2014 Status: Food 10+% of 2017 sales Diagnostics … TAM: $4+ bn2 industrial enzymes Comps: Novozymes, Dupon
Slide 10: Protein Catalysts for Pharma Manufacturing
10 Codexis Protein Businesses Leveraging CodeEvolver® Solid, Accelerating Financial Base Protein Catalysts for Pharma Manufacturing
Slide 11: Codexis: A Leader in Pharma Protein Catalysts
Codexis: A Leader in Pharma Protein Catalysts Hazardous Chemicals Waste Protein Catalyst Processes • Lower impurities • Higher yields • Fewer process steps • Less waste • Energy efficient Traditional Chemical Process Hi Pressure Reactors Minimal Waste Codexis Protein Catalyst Process Lo Pressure CST
Slide 12: Protein Catalyst Pharma Penetration Metrics
Protein Catalyst Pharma Penetration Metrics 2016 2017 2018 (forecast) Product Sales ($m/yr) 1 ~ $15 ~ $24m + Gross Margin on Product Sales (%) 2 36% 46% # Pharma Customer’s Products Using > $500k of Product 1 4 12 # API’s Commercially Using Codexis 3 7 7 Pre-commercial (phase 2 or later) Pipeline Pr
Slide 13: Novel, High Performing Industrial Enzymes
13 Codexis Protein Businesses Leveraging CodeEvolver® Novel, High Performing Industrial Enzymes Protein Catalysts for Pharma Manufacturing History: First non-pharma catalyst project 2013 Status: Food 10+% of 2017 sales Diagnostics … TAM: $4+ bn 2 industrial enzymes Comps: Novozymes, Dupont, DSM,
Slide 14: ~$5 Billion Industrial Enzyme Sectors
~ $5 Billion Industrial Enzyme Sectors Chemicals & Energy Animal Feed & Health Flavors and Fragrances Detergents Molecular Diagnostics & Biology Food and Nutrition Bring CodeEvolver® Improved Enzymes To Large Existing Markets 14
Slide 15: Novel Enzymes Enabling Molecular Diagnostics & Biology
Codexis Novel Enzymes Enabling Enhanced Molecular Diagnostics & Biology Fast Enzyme Commercializations in New Industrial Verticals 2016: Identified opportunity to bring CodeEvolver® engineered enzymes for the ~ $100m genomic diagnostic workflow market 2017: First enzyme, a DNA Ligase, engineered and
Slide 16: Proving our Capabilities to Monetize the World's Highest Value Proteins
16 Proving our Capabilities to Monetize the World’s Highest Value Proteins Novel, High Performing Industrial Enzymes Biotherapeutics Protein Catalysts for Pharma Manufacturing Faster Commercializing, Larger Protein Targets Solid, Accelerating Financial Base Codexis Protein Businesses Leveraging Code
Slide 17: The Opportunity for CodeEvolver in Biotherapeutics
The Opportunity for CodeEvolver® in Biotherapeutics Stability Enhanced half-life in plasma and lysosome, stable in GI-tract Safety Reduced immunogenicity Manufacturability Optimized biophysical properties for manufacturing Convenience Reduced dosing frequency, more desirable delivery (ie, oral) Effi
Slide 18: Oral Enzyme For PKU Developed & Partnered with Nestlé
Oral Enzyme For PKU Successfully Developed & Partnered Nestlé & Codexis Therapeutic Development Platform Access Partnership Deal (Oct 2017): Purchased rights to commercialize the oral PKU drug candidate Up to $357 million in upfront + milestones, plus up to low double digit % royalty on sales
Slide 19: Setting Up For More Success From Pipeline
Codexis phase 1 trials in 2018 NHSc option early 2019 Setting Up For More Success From Pipeline CodeEvolver® Generated in vitro Candidate Discovery Preclinical Research IND Enabling Human Trials 19 CDX-6114: Inborn Error of Amino Acid Metabolism Disease, PKU IEAAM - 3 LSD-2 DT4 Discovery Partnership
Slide 20: Codexis in 2017: Building Momentum Again
Codexis in 2017: Building Momentum Again 20 2017 Product Sales +74% vs 2016 $26.7m 2017 Total Revenue Growth Despite $22.5m in Non-recurring 2016 Revenues $50.0m Performance vs Annual Guidance Fourth Consecutive Year 2017 Product Margin Up From 36% in 2016 46% 13 Customer Products Each Use > $500k
Slide 21: Codexis 2018 Financial Outlook
21 Codexis 2018 Financial Outlook $32 $35 $42 $49 $50 $60 $20 $25 $30 $35 $40 $45 $50 $55 $60 $65 $70 2013 2014 2015 2016 2017 2018F Total Revenue ($ million) $63 Total Revenues: $60 - 63m (+20-26% vs 2017) Product Sales: $25 - 28m (2017 = $26.7m) Product Gross Margin: 45 - 48% (2017 = 46%) Revenues
Slide 22: Codexis Strategic Objectives for 2018
22 Codexis Strategic Objectives for 2018 Relentless Focus on CodeEvolver® technology platform, AI-Driven Acceleration of Protein Discoveries Reinforce our powerful, product-commercializing uniqueness in the world’s growing synthetic biology landscape Continue Profitable Penetration of Protein Cata
Slide 23: Unlock the power of proteins
Unlock the power of proteinsTM 23
Slide 24: Contact Us
Contact Us John Nicols President & Chief Executive Officer • john.nicols@codexis.com • (650) 421-2388 Gordon Sangster Senior Vice President & Chief Financial Officer • gordon.sangster@codexis.com • (650) 421-8115 Jody Cain Lippert Heilshorn & Associates • Codexis Investor Relations Partner • jcain@l
Slide 25: Appendix – Most Recent Pipeline Snapshot
Appendix – Most Recent Pipeline Snapshot 25
Slide 26: Codexis Pipeline Snapshot
Codexis Pipeline Snapshot 26 Type of Protein & Target Market Pre-Commercial Commercial Pipeline Total 6/30/17 vs. prior pipeline 6/30/16 Codexis Driven Sustaining Revenues Codexis Self-funded Customer Partnered Product Sales and/or Licensing Protein Catalysts Improving Pharmaceutical Manufacturing:
Slide 27: Appendix – Success Stories & Customer Testimonials
Appendix – Success Stories & Customer Testimonials 27
Slide 28: Capital & Yield Efficiencies Unlocked For Merck's Januvia
Capital & Yield Efficiencies Unlocked For Merck’s Januvia® Capacity constraints in existing sitagliptin (active ingredient in Januvia) supply chain • Protein engineered from zero activity to commercial targets in less than 12 months • 53% higher productivity • 19% reduction in energy usage • Expensi
Slide 29: Major PharmaCo Patented Drug Process Overhaul
Major PharmaCo Patented Drug Process Overhaul Inefficient patented drug manufacturing process affecting Top-10 global pharma company’s profit margins • Prior protein libraries: zero activity • 43 sequence variations required • Engineered protein results in > 3x lower cost than customer’s target • En
Slide 30: CodeEvolver Licensing Creates Value Across GSK's Portfolio
CodeEvolver® Licensing Creates Value Across GSK’s Portfolio “We chose the Codexis platform after a thorough evaluation of the enzyme evolution landscape...” Doug Fuerst, GSK Technology Development Lead, Synthetic Biology CHALLENGE SOLUTION How to effectively leverage protein engineering widely acros
Slide 31: Tate & Lyle's New Food Ingredient Launch Enabled
Healthier food ingredient requires a lower cost process to enable the product launch • Protein catalyst system engineered to meet commercial targets in less than 7 months • 20-fold catalyst stability improvement • 90+% reduction in catalyst system cost • Enabled commercial production of the healthy
Slide 32: Improving Sensitivity and Precision in Molecular Diagnostics
Create more sensitive, fluid-based diagnostic tests: earlier, less invasive cancer detection • Codexis DNA ligase converts more input DNA to double-ligated library fragments than T4 DNA ligase across a range of sample input concentrations • Exceptional conversion of low concentration (10 ng) DNA inp
Slide 33: Therapeutic Enzyme to Treat Phenylketonuria (PKU)
Besides aggressive dietary control, no available drug treatment for > 80% of PKU patients In the USA ~1:15,000 newborns have PKU, causing lifelong neurocognitive symptoms Therapeutic Enzyme to Treat Phenylketonuria (PKU) CHALLENGE SOLUTION “Many individuals with PKU are eagerly awaiting new therapeu