Codexis(US:CDXS)2022-05-05 23:44Financial Data and Key Metrics Changes - Total revenue for Q1 2022 was $35.3 million, nearly doubling year-over-year, with product revenues tripling compared to last year and gross margin reaching 72% [4][21] - Product revenues for Q1 2022 were $30.7 million, up from $10.2 million in Q1 2021, driven by $21.3 million in sales of enzymes to Pfizer for Paxlovid [21][22] - R&D revenues decreased to $4.7 million from $7.8 million in the prior year [22] Business Line Data and Key Metrics Changes - Performance Enzymes segment revenue increased 134% to $33.1 million in Q1 2022, while Novel Biotherapeutics generated $2.2 million [21][23] - The operating income for the Performance Enzymes segment was $14.9 million, with an operating profit margin of 45% [23] Market Data and Key Metrics Changes - Codexis is working with 21 of the 25 largest pharmaceutical companies, indicating strong market penetration in the sustainable manufacturing sector [8][9] - The food sector generated nearly $1 million in revenues in Q1 2022, showing solid growth momentum [10][44] Company Strategy and Development Direction - Codexis aims to grow total company revenue by nearly 50% in 2022, focusing on sustainable manufacturing, life science tools, and biotherapeutics [5][24] - The company is expanding its pipeline of high-value assets and partnerships in the Biotherapeutics segment, with key clinical milestones expected in 2022 [26][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the robust progress across all core markets and reiterated guidance for 2022, expecting total revenues between $152 million and $158 million [24][26] - The company highlighted the importance of partnerships to de-risk its pipeline and manage costs effectively in the current capital market environment [48] Other Important Information - Codexis has made significant advancements in enzyme engineering, particularly in the life sciences tools market, with three new products launched in 2021 [11][12] - The company is also focused on leveraging its CodeEvolver platform for biotherapeutics, with multiple programs in the pipeline [17][18] Q&A Session Summary Question: Can you provide insight into Paxlovid revenue cadence for the rest of 2022? - Management indicated that Q2 could be stronger than Q1 for Paxlovid, with expectations for Q3 and Q4 to be more equal [28] Question: Is there any front-loading of enzyme stockpiling by Pfizer? - Management clarified that there is no stockpiling; Pfizer is expanding manufacturing capacity rapidly [30] Question: What is the expected demand from Molecular Assemblies for the Life Science Tools enzyme? - Management expects modest product revenues in 2022, with significant growth anticipated in 2023 as Molecular Assemblies commercializes its business [32] Question: Can you break out the revenue contribution from life sciences in Q1? - Management did not provide a specific breakdown but maintained an outlook for the life sciences sector to generate over $12 million in sales [35] Question: What is the status of the food and nutritional side, particularly with Tate & Lyle? - Management reported solid momentum in the food sector, with Tate & Lyle successfully marketing new products enabled by Codexis enzymes [44]