Codexis (CDXS) 23 Feb 232022 Q4 Earnings call transcript

Welcome to the Codexis Fourth Quarter and Full Year 2022 Earnings Conference Call. A question-and-answer session will follow the formal presentation. [Operator Instructions]. And now I'll turn the call over to Brendan Strong from Argo Partners. Please go ahead. operator. you, Thank are today With Dr. me Stephen Dilly, Norrett, Executive Kevin and Operating President Officer; Officer. Chief Chief Financial and Officer; Chief Codexis Sri Ryali,

of forward-looking and revenues Act as prospects of and management a and including as our current of call, well be XXXX XXXX, successful margin Private statements revenue, for partnerships. on for of revenues product the Reform this and meaning gross programs within revenue our Litigation During Securities execution strategies guidance growth the and will future number making product

To the expectations contained forward-looking in Codexis, are XXXX. of call statements historical this date, management are of of facts extent that statement they and statements not XX, the descriptions beliefs as reflecting the February regarding

forward-looking unknown in could known they You should statements control beyond results. not because risks, that are, and place and other some factors cases, affect actual and Codexis' these involve materially undue uncertainties on reliance

materially filings Exchange be factors except can over affect Stephen. as forward-looking that results information statements, expressly Codexis required to Commission. the Additional with or update disclaims any these law. the now could call about turn obligation actual to I'll intent Codexis' Securities by in found and

thanks, Thank everyone, Brendan, joining. and you, for

this in through quarter with of delivered fourth were and focus bench. less and headcount we laid out reducing target the in has quarter we ways has organization. happening team leadership giving XXXX that Board our working. the early momentum. that second in The during of us been been of and year, advantage, November. demonstrate with recent to XXXX million in $XXX XXXX results the prioritizing half cash, the across with visible This we of is throughout of We've time us end financial ended our exactly activity new and on while providing and executive to the we continue competitive focus our and the As adding runway overall to programs strength clear achieved last fourth has on a our XXXX significant leadership plenty Codexis since A where we're strategy pleased

We strong General fall. his assessment added To Sri further outlined also and and commercial us and leading strengthened team's has within breadth our companies joined quickly recap Norrett, Counsel, a our FP&A, in us of Slide background organizations Officer Meg changes and expertise Officer capabilities Chief team. biopharmaceutical recently, Officer; has both of as Chief Fitzgerald, Sri Legal experience. Ryali the in commercial collective last Kevin translational in in Operating Financial financial We've More Chief January. joined the X. new

happening success of Importantly, and therapy the Board recent this in bringing Singhvi Stewart is Rahul both additions and demonstrated also Parker, companies. leading of with track pharmaceutical on our genomic records

use markets enzymes across unique for strength central our core business. of remains range engineering target of Our to purpose-built a

also This of end, in potential However, to outlined million annual single successful engineered platform been call, for To in we've enzyme. what a is view as business revenue relatively take $X provide given enzyme pharmaceutical with creation. CodeEvolver, about investments deliberate here X. we process bespoke down made specific the averaging last specific $X that about value manufacturing, limited, but most we've with the for Slide per in structure million often to our and the promising line a to strategy potential break deploying our avenues we quarter's see we where I deal In moment characteristics during per the a inexpensive selectively want most outlined customer. we the is highlight the

to lot it few opportunity $X hundred of to these imagine, awful revenue may million. you a billion As or get takes an even

providing profitable, that ensuring to before, high-priority we'll and said to us in with invest invest it capital modestly in business, we've this grows continue focus remains As our steadily areas.

of fruitful Codexis. space those we for which as sciences, a is areas life view high-priority One

our enzymes on and job we enzyme key making we enzyme use customer we to slot Codexis performance and serve enzyme easily If enzymes our believe customers we we side, enzymes with well, for higher notice. eye is the genomics multiple the for can into it closer the On revenue million customers. This taking sensitivity But and better it optimize existing be $XX than an straightforward players to industry in $XX potential can the right, when labor-intensive. opportunity and do time-consuming to workflows. because with specificity are for our one make process million get existing

manufacturing see, basically selling of offering. even a we for markup. enzymes engineer to product larger focused our to revenues about therapeutics. few or can are is value where the in capture still development We in opportunities next worth our well us you the As opportunity Xx excited we're there than believe it, us pharmaceutical for in that extra We're pursue nucleic genomics X specific over and brings Kevin area on will can RNA acid-based this me a examples some driving allow pharmaceutical better to of synthesis better face this and DNA let's We're than much true economics the enzymes few provide a are years. moments. effort. support but That to the the of manufacturing, more and

be of applications, that of this of orders offerings. in diverse of dollars with other can in strategy than the can be Because a enzymes greater capabilities to like across millions enzymes particularly group suite same suites utility unique many our revenue returns together broad potential believe hundreds of put our opportunity. have RNA, customers. this magnitude used worth repeatedly goal, same of creates Our the across where is enzymes combination We

our is business tremendous Finally, create our promise to where really has biotherapeutics technology the value.

as today, are Health many on oral of collaboration on we have Most shots Slide successful, goal As which Takeda. and on hear And these billion-dollar gene enzymes related address our Sciences shown to in therapies, today, programs. they're are market nicely. we're quite with to pipeline X, along a you'll of advancing of multiple near-term working we we opportunities. moving Nestle are If and milestones

lipase drug debilitating CDX-XXXX, for conditions the patients candidate of a insufficiency, pancreatic is exocrine The pancreatic deficiency EPI, of with by condition caused treatment impaired of tract first the function. a GI or in

small conditions, or duct. the enzymes, a pancreas secreted enzyme either the PERT replacement so Under biology is The the based important the pain protein or which abdominal wide paradigm, are on. damaged duct are insufficient duodenum discuss itself enzymes is weight digestion briefly. into pancreatic occurs normal is pancreatic fatigue, established pancreatic treatment directly oral This sugar therapy on insufficiency of in Let's pancreatic porcine-derived of and loss, pancreatic to intestine. anemia, and reached through fat, blocked including the leads problems, the when administration of range -- pancreatic enzymes. exocrine currently and

There are main issues X this approach. with

Firstly, the practicalities of harvesting sufficient market daunting. to address porcine is the enzymes

are various they through before pass the had small is environment the the absorbed. reaching orally, enzymes so the to in Secondly, CITIC stomach given intestine wheat

current regimen all sales market to as requiring combined tends meal of Finally, therapy per today lipase with to the shown than onerous address doses X to on levels leading challenges, on CDX-XXXX adequate the annual has multiple have patients X. of $X.X of PERT billion. [indiscernible]. products greater the achieve be these Slide the these limitations dosing of potential X Despite

coli, production Firstly, so is easily CDX-XXXX scalable. is in a produced e recombinant protein

transit the even stable without activity. been to has in through be that engineered civic various CDX-XXXX stomach conditions losing Secondly, can

exciting is potential. translate CDX-XXXX potentially a Thirdly, treatment single commercial into potency capture manufacturability, as very this meal. sufficiently a per of to IPACE a trifecta can with support believe potent and We durability

from Moving XX Slide were patients to excited X. review why with volunteers clinical normal and X recently That's with EPI to treated first we data CDX-XXXX. so our

and labeled Importantly, In CDX-XXXX patients, over in measured using the of exhaled and the or design XX adverse XX placebo absorption in absorption II test. following XXXX. to as increased INBRACE, Phase we've duration initiate to were and and significant we Nestle move no fat X profile hours. hoped, patients we trial a crossover The carbon forward fatty a results Beside we the are label attributed potency action. with by to either safety of with a the measure expeditiously CXX fat reassuring was decided treatment. the breath to [indiscernible] we that we'd then colleagues in CDX-XXXX quite say, at carbon our encouraged what expect showing next very early arm a very with exactly and the fat XX above encouraging the seen meal in events

Slide towards the outlined Similarly, continuing with outlined are on a we X, ago. with few goals as our track collaboration months about therapy our gene Takeda to we programs excited

rare genetic CodeEvolver with therapeutic options expression targeting improve may as body benefit gene treatment therapies, engineer the Here, using compared and we're range when proteins within a across of that current administered potentially offering improved to transgenes as disorders. and

the may Takeda highlighted from Fabry presenting transgene lysosomal a in antidrug short Fabry that and soon will disease replacement which you storage smaller vivo efficiently Symposium. development break the rare data half-life disease World for yesterday, by the their currently down cannot antibodies. seen in enzyme components therapies As the disorder we into and at have are be is program lipid treatment body compromised the of XXth Annual available preclinical

enhanced we stability Takeda, to variant limitations. with reduced these protein try a to with overcome work engineered and our of potentially part As immunogenicity

therapy platform isolation, While of also power this in more the partnership demonstrate engineering of this in our enzyme update to context encouraging us broadly. allowed strategic gene has is CodeEvolver the

desirable need characteristics program preparation the swing, an to the more full Our leverage year. patients makes transgene where within remains to IND therapeutic this enzymes And for that around efficacious work capabilities turn indicative engineering We leads ability new and unmet options diseases this which understand the incredibly our us how is with precise collaborator. of and we potentially entry can tailor the into logically powerful rare high. of introduce to

To strong period months Codexis. the critical rich a team place upcoming a sum and of a will in it with next catalysts, set for be up, XX

the and I've by programs about all demonstrated steady on most clear our execution, As that strategy the create focusing value. prioritization is can updates potential shared,

our market... Now across call I'd further commercial the to each like dive over to strategy into Kevin hand to

Stephen. you, Thank

X. Moving to Slide

build which focus in of the We ensure should Phase part modestly the continued latter clinical have to a II continued growth of invest area pharmaceutical pipeline programs, our earlier into and manufacturing decade. to

across of are market. customers, Slide at life challenges our area, sciences taking X-plus look on multiple pipeline XX. to outlined with When developed address a to However, years these focus we have we opportunities many one-on-one customized projects enzymes some

We barcode have workflows. on into NGS. critical XX% XX% more approximately barcode to of ligation enzymes to sample of engineered newly therefore, on A is sensitive, are signal. not XX%, DNA easily to our next-generation for example Natural the ligate ligases robust detect. our any designed to sequencer, be that DNA good DNA sample pieces more efficiency optimized of and or a enzymes more so sequencing to goes in used drop XX% existing a detecting a them be they meaning and can to read making a about is or sequenced have Ligase

ligase a solution to ligase had more and month, this comparison, quarter. interest over and or across from in using Not was In in efficiency. achieves this ligation this discuss customers large a for it but to Advances and when There the in only is improvement Technology DNA lot paper the multiple second a in tissue customers and plan data needle DNA significant you opportunity white players, for workflows. enzyme XX% This our common small engineered is I a buffers, but testing potential is from ligase NGS Conference, version our are to our we Genome multiple across it test of at searching research-grade with Biology an was AGBT. the deliver developed drop-in the many sets. Earlier haystack sensitive customer efficient, newly kits easy preliminary

We also later year. supply will have commercial this available

licensed Finally, XXXX ligase on this of from newly first a Roche, right who engineered exercised previously different in us DNA version. their negotiation just

terms this, the we of them days. potential over part negotiating XX next As with will begin

development In of If tab more about interested corporate synthesis learning like, available and therapeutics. under nucleic you Resources white of DNA on a website. RNA space, the we are the new in engineered enable acid-based our the and DNA can the our copy paper is

multiple was entry enzyme support and of is we enzyme to byproduct This first capping are increases XX we For in CAF We manufacturers. into efficiency this example, mRNA support double-stranded late of customers. our on manufacturing, with point gain enzyme a RNA XX, continue unwanted the suite launched polymerase enzymes XXXX RNA. significantly Slide developing and high decreases traction now synthesis. engineered This customer enzyme to our mRNA to these and RNA the

can enzymes greater mentioned allowing strategy launch group even returns Looking previously for that drive other we least enzyme that ahead, orders used the of are other of than the arena end our to expect diverse of in at magnitude applications, be one potential same to the our across this before repeatedly offerings.

in is oligonucleotide XX, Slide senses, perfect engineered polymerase TDT On a example. our

sequence enzyme assemblies of this molecular TDT a adds DNA our customized the end efficient partner, any We more polymerase X have is The of synthesis. sequences X built prior and that DNA growing onto a added. developed for stops and to program the unit step of regardless the chain of enable in next DNA-based be and then units occurs fashion. base to controlled the to next enables before order This chain

Slide to Moving XX.

approach to synthesis. RNA We are now the applying same

help commercial one Over manufacture supply RNA in focused short or XXX are any and manufacturing. suite want siRNA of level been these to on RNA enzymes currently their development, year, have support be interference the of we companies therapies a of therapeutics. last we developing positioned Over to RNAi to

use is expensive This of creates lot chemistry Today, chemical biopharmaceutical small develop process a ways. companies siRNA. to and of phosphoramidite quantities

differentiated approval their to and efficiently up share Wrapping customers. these up we companies solutions Ties multiple at develop therapies, enzymatic more Life Sciences, manufacturing lower solution our are they problems the enzymes scale complex for can an and to plan is need we technology Assuming that receive We FDA time, on for platform believe close new same large will goal solve costs media. qualities. that information the to to to

in to therapeutics. a enzymes genomics methods development second solutions of suite nucleic in plug-and-play the NGS with First, acid-based and and with DNA of RNA synthesis support and

to commercial we enhanced focus moment revisit XX. outlined last our Finally, the to a call, on Slide discussed take I'd on like

pipeline, Codexis-driven support development were prioritizing a to promising Biotherapeutics have told our our for that assets clinical understanding partnering of of quarter that we Last investment you we candidates. we most clear needed or the

our that, how strong great and doing markets. collaboration rapidly example and partners programs are leverage Nestle of our derisk with can is We effectively just we penetrate a to

program and strengths are billion. limitations of For Meanwhile, insufficiency. as is standard will By our commercial of Sri to deliver call CodeEvolver Nestle results differentiated targeting we the to the the instance, infrastructure pancreatic respective in platform our existing brings heard you existing an market creation. quarter. over presence care that, to CDX-XXXX, in exocrine engineer now a I just address the combining treatment to each discuss partner, $X.X for Stephen, used long-term with financial space to from this life We've the space. poised the options potential With robust value organization, turn the of

Kevin, Thank you, and good afternoon, everyone.

year, driven for total Slovin, related XX% were as year. an lower the R&D the year. tax XXXX enzyme from Slide revenues of $XX.X by $XX.X for million sales, these fiscal from and Let year $XXX.X $XXX.X tax payments to for fiscal R&D me and product Total -- an of million loaded, excluding by which starting increase from were Product agreements. XXXX, year $XX.X were XXXX for fees million decrease to revenues million and from million, full decrease milestone increase year. year. million respectively. prior year revenues compared sales XXXX our the from decreased including enzyme prior in from sales million XX% Total as million, existing the revenues $XX.X year prior related XX% were of million, XXXX million $XX.X XXXX XX. XX% $XXX.X to license for were $XX.X a for XXXX dive the of primarily were in was year with an into of results, collaboration prior $XX.X for XXXX the lower fiscal well The million revenue increase in highlights driven $XX.X revenues fiscal fees financial prior million, $XX.X

XXXX prior costs. in was fiscal year and sales the for year. by changes XX% primarily decrease margin compared shipping The to XX% was gross in driven Product mix higher

compared to Turning in XXXX $XX.X Selling, fiscal $XX.X million prior to to million year. and to expenses increased the compared for fiscal $XX.X were R&D prior expenses expenses. year. year $XX.X million operating year in million administrative general XXXX the for

$X.X year charges XXXX. $XX.X per compared fiscal last for the recognized restructuring The of fiscal per plan reduction or year for in was year. related loss XXXX fourth to the million also or we million $X.XX $XX.X announced million to quarter share net $X.XX We in workforce share

December had XXXX, cash million of and equivalents. As XX, we cash in $XXX

operating on funds in our In not May in addition, million increased we Enzymes moment our business place breaking XXXX. operating XXXX have facility was corporate outlined a in we XX%. was biotherapeutics loss million like of Performance In in again, revenue by -- I generated Slide Revenue put million in drawn I'd allocation from corporate financial as $XX profit for of margin allocation million, this overhead any business, ATM XX% our down and of $XX.X segment for $XX income an million, to $XXX.X here the to before segment, the we operating results expenses. XX. of spend overhead expense, of our $XX.X XXXX. before an

operating Our CDX-XXXX in this we year-over-year as advance as our as business well in self-funded losses programs. increased grew

on to outlined to line is and Slide of as This XXXX guidance, XXXX million excludes in to to million. $XX expect $XX revenues enzyme XX, with range revenue login from range we in Turning in sales total Pac related revenue. the be

XXXX. we the a included supply fee that Pfizer when $XX.X July, million this over you to amount of the XXXX. as course with last XXXX and may revenue retainer As We'll amendment paid was it noncash be agreement us our in of recognizing recall, announced

our XXXX, or we you've do in actual we it As may excluded that timing from revenue amount not know record the guidance.

I your you do encourage include If quarter. that to so model, fourth the in to would you choose in

revenues million expect $XX range in be product the to $XX million. to We of

Science Life the our to from the business pharma growth expect we Kevin, and variability in Stephen in business. year-over-year from heard offset manufacturing you XXXX As

million. Gross is to of revenues the $XX the R&D revenue million expected range be of to on $XX be product margin in XX%, XX%. expect in to range We

As and be revenues, noted, management cash to I'll combined operations revenues expect call will equivalents, our turn our existing product with we back planned expense future through that sufficient end XXXX. Stephen for cash the of now our Stephen. the and R&D to expectations fund

we've Sri. delivered cash QX closing, and quarter In of exactly position Thank you, promised we what runway. revenues, cash last in terms

paid next decisions for opening ourselves to few potential about we going the up journey. development generation team last revenue I continue forward. equip strategic off have excited be the of for the months difficult a the avenues many XXXX Our as towards of leg of in

happy Operator? we'd take Now to your questions. be

Instructions]. [Operator

of Mah Cowen with the is Our first question Steven from Company. line

Shri. therapeutics hear Thank you. on the Congrats NO progress, and welcome guys you Can me... problem.

So, provide a question XXXX? on of why initiation on Is it some Can color you early the reason Phase there XXXX. II a earlier? study can't start the in

line time Phase to CMC confident that The that program. for into in considerations. we driven actively get now. early formulation is place II can everything in final we're very have principally the the want by go by we the XXXX. definitive working And time We on we're And right place

We beat can. will try obviously we and that if

going Okay. rare that for I will Is Phase quickly And there enroll be take II expected getting able the the achieve what a study that you is, release, at No, understood. sense press timing? in said months. XX a Phase disease, number fairly the that the saw trial then patients are it's that separate is to II about be I'm trial? And to given to to that in of

Phase therefore, sites single how Phase expect Ib, study, The we'd and XX that II sort me relatively pencil there's and little next was in in given nature using going a We're countries to XX to the a quicker. centers the the number we in that size sort the in unpack patients. going the right enroll, multiple XX sharpening be see the the to which the slow II. exactly let that site, say that many go of to somewhere we'll a for of But on multiple Phase patients, one lot was XX be -- now. XX of we're to which XX to or yes, should, do of of terms protocol, range So bit essentially trial initiating, a

Okay. for Understood. additional the color. --

Science Life So tools ligase DNA specifically enzymes, Indice maybe just on the pivoting for prep. second-generation over to

first with to days. come deal On Does XX mentioned of with the days then counterparties? available they mean had Roche right have up with transact XX a that's you really to and negotiation, they other you that guys that

this with discussion past negotiations. time. we good Sure. pace Essentially, to but If players with Stepen, can discussion XX open that other we continue Kevin. at of is that have can want open obviously certainly we we that, them days longer, the

And with they kit? Perfect. ligase the license a can the you right. there of status us that that is on on status All already Okay. then share first-generation have

Sure.

opposed thing, generation. as to First second newly engineered a like is just clarify, to a this DNA

Roche to it point. they engineered quarter a the communicating at backbone this have on So, and that us then point. from of DNA XXXX ligase first what the different sales we've was launch licensed this just are over off EVOTX secondly, in commercial expecting clarify exactly And that with don't our clarity been but year,

you, Okay. and is Kevin, I Understood. for last well. And this sneak then if as question one can in,

you'd give increasing said modestly to sales completed model manufacturers. an you -- completion drug us on tweaking the that target of is Could be and footprint some on us give or You update timing that? midsized the sales

Sure.

or diagnosing to commercial sales on in the is sort facing how in a of what's standpoint. last that, the sales. little segment, more been trying too. been enzyme people pull-through X X front-end So Then the of surprising to has of we terms we've terms of And bit from grow as months focused a me just been color approach little

on resourcing we of the at now in and products there to Now that looking only that. but market, only it, actually increase modestly progress have we're doing we've not still looked X

probably in increasing. of existing terms done I our that's quarter. and And the to start we'll where think be to of some lift this see that sales product expect I by yet. complete not it's So, products end increased

Brandon Our line from of Couillard next coming question the with Jefferies. is

maybe portfolio expecting in revenue terms Life [Indiscernible] in parameters base 'XX it 'XX.. you're of growth has the some and what for to in share enzymes that be of for in post kind willing goal Science to

Sciences So, lot information Life as relatively of it's disclosed we haven't around in its a infancy. still

mentioned, of plan. sales I still we're sort As building the Stephen,

we've the And and my has of in a planning. little actual couple last been where we're account that of agreements over engineering assessment focused and focused that's on sort -- focused less very on things One of been customized years I enzyme now. pull-through customer just engagement in the

we expect But this that. information more of the at So, we in we anything definitely point, year. to provide plans we're haven't bring the towards that end but want getting to the as of put forward place, on more color

Think I add that... would to

growth terms variability some expecting In year-over-year Life of we're our guidance. to manufacturing. in that the revenue we're pharma that The Sciences, expecting of offset in

that So you low and year. end XXXX the the we we'll growth in the with more our line Life when side, revenue throughout primarily be guidance Sciences have details and on that look as on expect that is would to at -- indicated, it Kevin of this

as any life X with Then IP least for concerned? Are is that of the at Any commercialized of And X in those all commercial the sciences as Okay. partner there the far yesterday, Alphazyme with them? do relationship? you own enzymes. that who Maraba you acquisition enzymes on implications Codexis you've deal announced changes

So is first, Kevin. this

going in for said, look deliver of are good shape. have business and them was regards us with I back is We at AGBT out yes, to coming of execute been the supply. sources second obviously from all relationship really got First for IP able enzymes met with They've downstream. to terms the that of enzymes. relationship been conference folks to those own I is being partners just those some there time, where And news as of and our good answer the in some we with recently aware being business is, But the solid. we

Great. to last this as far year? CFO but to phasing? share then far kind your Sri. of one prior just for color revenue I XX-XX framework, Any as have know as pacing color any for willing like you're And the as

just quarterly talking You're in terms of phasing? about the

Yes.

of? do half, aware to be half, first Our second it you

Yes.

guidance. haven't we quarterly revenue So, provided

and the that the that of the think quarter-to-quarter, one I I've year-to-year. job inherently predict observed are on manufacturing it's to here in things the month alone those hard lumpy revenues let pharma is

we're as So, far comfortable quarter-over-quarter haven't the revenue, year range of with gone to for on revenue. $XX million we yet very total to the $XX guidance full million provide

is from of the Our next question line [indiscernible].

This is Skyler Do. on for

the is with commercialize the synthesis XXXX? you And partnership term update any launch in for comment MAI, the have have that? And you going DNA how how expectations the do can plan near to platform? that is you soft an For on for on

look of and really, as we capability the partnership that technical So enzyme of at a enzyme. the TDT validation the MAI

do like is terms a when they his making oligos. said think to comments, We in ability great traction terms in lot just get you platform. tweak the the Kevin then As it technical in launch. of that they are strides commercial of around RNA of part producing are to really of that we're see be MAI longer But waiting to

planning Kevin? really, now. So much on right not we're

optimistic terms set of their to really technical achieved associated bit We they've of being nice we their more success would No. like downstream. and Again, We're think cautiously here. as in a a see commercial little pacing uptake. with front-end pull-through

waiting we're you are. seeing as and So,

line Hewitt question from next Matt the Our of coming Craig-Hallum. with

contribution. some first, on clarification Maybe the

be year, heard recording going I I and correctly, still if it. we're you in million still there's likely still So, -- include it Will revenues of put next $XX.X hits? if you appreciate in quarter all to it as this fourth will when that QX that. year, it the if be

revenue. be but that as noncash record would it we would Yes, revenue,

that it. guidance then it. so backing Got Okay. off, your doesn't include And

a appear with color product your the revenues portfolio bit. little rest little If look of to core as it there. the happening are going what's to you Maybe revenues on guidance, at in fiscal though 'XX your decline a bit does of the compared

XXXX, of flat in million the $XX of tax to our low achieved revenue So, end excluding what we range is loaded.

came this what up of that. to sort $XX toward growth are think discussed the Life is year-to-year, and range. and we ebbs a refocus That's We've talked we pharma that in about we've in for expecting year. million I how to $XX variability flows Sciences how make million that manufacturing,

where year are up life for us a growth set definitely will the that focusing down for So road. sciences we

then that And on to should it. potential Got milestone your agreements contracts? commercial they it hit sales end royalty could be the those product structure maybe different got the to trying groups you've impacting How Is think at up how I moment. you're opportunities? X of about working financials. with think Are going thinking simply these be line? Just about the we

clarify that talking in about lines, So, product with X pharma regards different context, my is you're assumption manufacturing sciences -- to life to the versus

Yes, go okay. be deals where you'd product will said be sales? those ahead. how how hopes what they just structured? structured sales enzyme I going Good, your there? those going mean recognizing Or X be correct. Or are No, agreements are to I -- are

Yes. and because that going I of in fees back to terms forward. those comments that think with structuring farm revenue Stephen's some to and associated to as royalties. really hence, manufacturing with it there a we regards the straight some that's type the enzyme the enhances supply we're And of lumpiness earlier that. I selling enzyme, goes where mean of this sciences product can of well some you you're the biocatalysis larger larger downstream that how workflow, of harder licensing and to you opportunity pharmaceutical adding gets up process, looking with royalties, move little see and provide intermediary which it's downstream is an of really these negotiate range from some bit When as of contracts associated particularly can there, differentiated back over with manufacturers. of a the we're milestones but be When sales, complex life at but could value some to also definitely challenges

helpful... really That's

is question you. next Johnsons of from the with Stevens. Thank Jacob line The

Mac is for This on Jacob.

for couple it ones. to outlook we and R&D talk your Maybe balancing Just investment priorities investments should this the cash year? of about into a Can Sri. for you managing about And as quick relates how think burn?

in year think forward burn opportunities, what more high-potential that to line the of provides were portfolio plan, thinking the programs on years quarter XXXX focused in Sure, us. we moving we loss, therapy the initiated about the funds programs development important that the we as that's RNA and in we're the terms our broadly runway how fourth well strong had high-value when XXXX DNA with the gene restructuring with and disciplined position about much call where today, programs and cash approach a Cash X we commercial approached that we've beyond announced a was on and I very million starting Certainly, $XXX as including of in those talked synthesis. investments. to is

to programs are item to in will be the much that opposed company the line one We in again, looking the on And then back going say, any expenses, that ensuring of that your overall on approach burn terms my cash the we provided will guidance. with just are contributing specifically the R&D and on to guidance. line So, we as the level provided the portfolio. direction very what expense previous haven't question at value P&L. But I refocusing

programs. new these will effort We a expect redeployed development investments to of the be savings as result that generated high in potential that

So bit. that helps hopefully, little a

for the Thank you color.

At we've the our this reached you. session. Thank end time, question-and-answer of

Executive for to Dilly, Now Chief I'll floor remarks. the closing Officer turn Stephen back

everyone, for in today. Well, tuning thanks,

make you we XXXX and As tell, the results to with and can continuing that 'XX excited for focus we're areas. these in pleased super progress very on delivered

have So, afternoon. a great thanks again, and

will today's This conclude conference.

at disconnect Thank You participation. you this your may time. your lines for