Codexis NASDAQ: CDXS reported first-quarter 2026 revenue of $15.2 million, up from $7.5 million a year earlier, as the company highlighted continued progress commercializing its ECO Synthesis enzymatic manufacturing platform for RNA medicines and reiterated full-year revenue guidance of $72 million to $76 million.
On the company’s Q1 earnings call, President and CEO Dr. Alison Moore said Codexis is preparing to present “important new data” on ECO Synthesis at the TIDES USA conference in Boston next week, emphasizing the platform’s potential to address what management sees as an industry-wide manufacturing bottleneck for small interfering RNA (siRNA) as pipelines expand beyond rare diseases into large-population indications.
ECO Synthesis positioned as enzymatic alternative for scaling siRNA production
Codexis develops biocatalytic enzymes used in pharmaceutical manufacturing. Moore said the company has spent the last three years developing ECO Synthesis as an enzymatic manufacturing platform for siRNA, contrasting it with traditional solid-phase oligonucleotide synthesis, which she described as “complex, solvent-intensive, and challenging to scale.”
Senior Vice President of Sales and Marketing Britton Jimenez framed the opportunity as demand-driven, citing growth in RNA medicines development and the limitations of current manufacturing capacity. Jimenez said the number of RNA medicines in development is increasing at “at least 10% per year,” with “over 100 candidates in clinical trials and more than 400 in pre-clinical development.” He also pointed to late-stage cardiovascular programs as examples of potential demand expansion, arguing that even limited market penetration could require significant additional oligonucleotide manufacturing capacity.
Jimenez said the market for expanded capacity and new production technologies is “currently estimated to be at $2 billion.” He added that Codexis has “over 50 opportunities” in its ECO Synthesis sales pipeline, with “40 individual companies demonstrating strong continued interest.” According to Jimenez, evaluation work with contract development and manufacturing organization (CDMO) partners is progressing, and long-term commercial discussions are moving forward.
New stereochemistry capability highlighted ahead of TIDES presentation
A key theme of the call was Codexis’ push to differentiate ECO Synthesis by enabling stereochemical control in siRNA manufacturing. Moore said stereoisomers exist at both ends of most siRNA molecules and that developers currently have “little influence over stereochemistry” because chemical methods produce “random mixtures” that can vary in potency and purity. She said Codexis’ engineered enzymes can deliver specific stereoisomer configurations and that “stereopure molecules confer overall improved product quality and have the potential to deliver improved potency.”
In the Q&A session, Moore provided a preview of what the company plans to show at TIDES, telling analysts the presentation will demonstrate “stereo control at both the three prime and the five prime end of the siRNA molecule,” which she said “has not been shown before.” She said the company will also present data describing how Codexis achieves the control and the resulting product quality.
On timing for evidence that stereochemical control improves efficacy, Moore said Codexis is “currently working on generating data” tied to improved activity and has “some data already,” with more expected soon. She also cited published literature suggesting stereocontrol can improve stability related to intracellular nuclease activity and noted a mechanistic hypothesis for improved potency, adding that Codexis will share its own data “when we have them.”
Scaling targets and FDA engagement
Moore said Codexis is continuing to scale ECO Synthesis and is targeting “half kilogram scale by the end of this year.” Responding to a question about scaling from 100 grams to 500 grams, Moore said the company has built an experienced process development team over the last three years, including experts in traditional oligonucleotide synthesis, enzymology, and process development. She characterized scale-up issues as “normal process development challenges” involving process control factors such as temperature and flow rates and said Codexis is “learning a lot about how to scale the process.”
Moore also discussed the company’s ongoing interactions with the U.S. Food and Drug Administration around ECO Synthesis. She said Codexis was accepted into the FDA’s Emerging Technologies Program in 2024 and has been engaged with the agency in “various conversations since then.” Moore said Codexis is preparing a briefing for the next interaction, which is planned “in approximately a quarter.” In addition, she said the company is compiling foundational information for an Advanced Manufacturing Technologies designation (AMT), noting that if Codexis receives the designation, it “does enable faster timing on review times and the potential for accelerated approval.”
Small molecule biocatalysis portfolio and Merck-related revenue
While ECO Synthesis is the company’s growth focus, management emphasized that Codexis’ small molecule biocatalysis business remains a significant contributor. Moore said Codexis supplies enzymes for 13 branded commercial pharmaceutical products, and she highlighted the recent approval of islatravir as part of a new HIV combination treatment. Moore said Codexis partnered with Merck on the manufacturing approach and is supplying enzymes for the commercial product, describing Merck’s work as substituting a “16-step chemical synthesis with a biocatalytic cascade” that received a Green Chemistry Challenge Award in 2025.
Jimenez said the small molecule business remains “stable and profitable” and added that over the last six months the company has seen data readouts from three studies, with “2 of which were positive and 1 of which received FDA approval last month.” He said Codexis is helping customers prepare for commercial launches for both programs, and he cited “11 programs still in phase III clinical development,” with data readouts expected from four trials in the next 12 months.
Asked about the revenue ramp related to the newly approved Merck-associated product, management said it is working with Merck on supply chain and demand planning and indicated it would provide more detail on future calls.
Financial results, guidance, and GMP facility plans
Chief Financial Officer and Chief Business Officer Georgia Erbez reported total revenue of $15.2 million for Q1 2026, compared with $7.5 million in Q1 2025. She attributed the increase primarily to revenue from a Merck Technology Transfer Agreement executed in the fourth quarter of 2025, which she said “has now been fully recognized.”
Product gross margin was 71% in the first quarter, compared with 55% a year earlier. Erbez said the increase was primarily due to product mix and lower sales of “several low margin products” that were replaced with more profitable sales. She added that Codexis expects 2026 annual gross margins to be comparable to the annual levels reported in 2025.
Operating expenses declined year over year. Research and development expense was $11.4 million, down from $12.9 million, driven by lower allocable costs partially offset by higher employee-related costs and greater use of outside services. Selling, general, and administrative expense was $9.8 million, down from $12.4 million, primarily due to lower employee-related costs from lower headcount, lower stock-based compensation, and reduced consultant and outside service fees.
Net loss narrowed to $8.7 million in Q1 2026 from $20.7 million in Q1 2025.
Erbez also provided an update on Codexis’ planned GMP facility in Hayward, California, which was leased in 2025. She said the company is in the detailed design phase and preparing to apply for a building permit in the second quarter. Construction is planned to begin in the second half of 2026, and the facility is expected to be “fully operational by the end of 2027.”
The company reiterated full-year 2026 revenue guidance of $72 million to $76 million, and Erbez said the revenue mix is expected to be weighted more heavily toward the second half of the year. Codexis ended the quarter with $65.1 million in cash, cash equivalents, and short-term investments, down from $78.2 million at the end of 2025. Erbez said the company expects its current cash to be sufficient to fund planned operations and capital expenditures through the end of 2027, including the GMP facility buildout.
In closing remarks, Moore said Codexis is focused on deploying ECO Synthesis into customer pipelines in 2026 and demonstrating progress through “broader and higher value types of contracts” as well as “innovative licensing deals,” while also aiming to meet revenue targets and manage expenses.
About Codexis NASDAQ: CDXS
Codexis, Inc, headquartered in Redwood City, California, is a leading protein engineering company focused on the development of innovative enzyme solutions for pharmaceutical, food and beverage, and specialty chemical applications. The company’s proprietary directed evolution platform, CodeEvolver®, enables the rapid identification and optimization of enzymes with enhanced activity, selectivity and stability. By leveraging this technology, Codexis provides custom biocatalysts designed to improve manufacturing efficiency and reduce environmental impact.
Since its founding in 2002, Codexis has expanded its capabilities from early-stage research to commercial-scale production.
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