Codexis(US:CDXS)2020-11-18 14:58Codexis Investment Thesis - Codexis' CodeEvolver® platform drives differentiated enzyme products in high-growth markets, supported by strong financials[6] - The company's enzyme engineering platform addresses the "Enzyme Big Data" challenge by generating and analyzing massive amounts of structure and performance data[9] - Codexis has established a solid foundation in sustainable manufacturing, pharmaceuticals, food & nutrition, and industrial applications, addressing a multi-billion dollar market[19, 20] Sustainable Manufacturing - Codexis is focused on biocatalysis as a key process technology in pharma manufacturing, with multiple CodeEvolver® platform license deals and commercial installations[26] - The company's sustainable manufacturing pipeline includes multiple commercial APIs, Phase II/III APIs, and research & early clinical programs[25] - Codexis' enzyme cascade technology offers higher yields, purity, and less waste compared to traditional chemistries, simplifying capital needs[23] Life Sciences - Codexis is differentiating itself in the Life Sciences market by developing high-performance enzymes for next-generation sequencing (NGS) and diagnostic workflows[30, 31] - The company's Life Sciences pipeline includes products for sequencing & detection, DNA/RNA synthesis, and health monitoring[32] - Codexis' engineered DNA Ligase for NGS improves ligation efficiency, leading to more sequenceable DNA and better disease detection, and has been licensed by Roche Sequencing Solutions[35, 36] Biotherapeutics - Codexis is focused on improving patient lives with differentiated protein and gene therapy candidates, addressing a $14 billion market[21, 37] - The company's biotherapeutics pipeline includes non-invasive protein therapies and gene therapies for various disorders, with partnerships with Nestlé Health Science and Takeda[38, 39] - CDX-6114 for Phenylketonuria (PKU) has shown safety and tolerability in clinical trials and has been licensed by Nestlé Health Science, with potential milestones up to $335 million[41, 42] Financial Performance - Codexis has demonstrated excellent revenue growth trends and a strong balance sheet with $71.5 million in cash as of September 30, 2020[55] - The company anticipates both total revenues and product revenues in 2020 to be broadly in line with 2019[55] - The Performance Enzyme segment has positive income and cash flow[55]