Forward Looking Statements

Transcription

1 Corporate p Overview John Nicols, President and CEO February 2014

2 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 other factors that could cause our actual results, levels of activity, performance or achievement to differ materially from those expressed or implied by these forward looking statements. Forward looking statements include all statements that are not historical facts. In some cases, you can identify forward looking statements by terms such as may, will, should, could, would, expects, plans, anticipates, believes, estimates, projects, predicts, potential, or the negative of these terms, and similar expressions and comparable terminology intended to identify forward looking statements. These forward looking statements represent our estimates and assumptions only as of the date hereof, and, except as required by law, we undertake no obligation to update or revise publicly any forward looking statements, whether as a result of new information, future events or otherwise. Other factors that could materially affect actual results, levels of activity, performance or achievements can be found in Codexis Quarterly Report on Form 10 Q for the period ended September 30, 2013 filed with the SEC on November 12, 2013, including under the caption Risk Factors. If any of these risks or uncertainties materialize, or if our underlying assumptions prove to be incorrect, actual results, levels of activity, performance or achievement may vary significantly from what we projected. Our logo, Codexis Codexis, We are Biocatalysis and other trademarks or service marks of Codexis, Inc. appearing in this presentation are the property of Codexis, Inc. This presentation contains additional trade names, trademarks and service marks of other companies. We do not intend our use or display of other companies trade names, trademarks or service marks to imply relationships with, or endorsement or sponsorship of us by, these other companies. 2

3 Who We Are Codexis is the global leader in biocatalysis Delivers most advanced and customized solutions lti for pharmaceutical and complex chemistry industries Proven technology enables rapid, cost effective and sustainable process development from research to manufacturing 90 employees; 45 in R&D NASDAQ listed: CDXS Headquartered in Redwood City, CA 3

4 Investment Highlights A leading edge biotechnology toolkit Disruptive value creation built on unrivaled technological prowess A profitable,,growing gplatform business Growing portfolio of products serving an expanding customer list Robust development pipeline set to feed future sales growth Accelerating penetration ti in large, underserved dmarkets kt Process development in pharma and other complex chemistry markets Long term opportunities in development of new improved drugs Focused on future profit growth and cash flow generation Gross profit CAGR of 50% over last 5 years Expect year on year gross profit growth of 15 20% in cash burn expected to be less than $8M 4

5 Biocatalysis Technology Platform

6 Technology Platform to Engineer Biocatalysts Enable novel manufacturing processes Deliver better economics than traditional chemistries Work in wide industrial conditions Timelines that fit drug development cycle demands Unrivaled capability as the industry pioneer 210 worldwide patents granted Reduced proof of concept screen time from 8 to 2 weeks over the past 3 years Investing (sophisticated marriage of biology & computation) to stay ahead Optimized Biocatalyst Beginning Biocatalyst Proprietary Engineering 6

7 Codexis is the Biocatalysis Partner of Choice New Biocatalyst Evolution objective ance perform Codexis Competitors Full Commercialization Capability time Best Performing Biocatalysts 7

8 Delivering Value for Pharma Customers Upgrade the Chemical Process Benefits of Biocatalysis i Conventional Process Hazardous Chemicals Codexis Green Process Evolved Biocatalyst Waste Minimal Waste The conventional process produces toxic waste and requires purification Higher quality and yield Minimized waste generation Less energy intensive Improved operator safety Run in multi purpose assets Shrink # of unit operations Lower capex ambient operating design 8

9 Product Portfolio

10 Early Adoption in Pharma Development Pipeline BENCH CHEMIST AWARENESS/ ACCESS KITS: Sets of readily available biocatalysts for given chemistry Off the shelf or from a catalog kit sales: +151% FOLLOW ONS ONS TO VALIDATE $10 $50k Orders (Proof of Concept): sales: +100% Up to $100k Orders (RFP Optimization): sales: +100% LOCKED IN BY PHASE III Customer buy in Inclusion in DMF/NDA Patents filed Supply chain Drug Patent : Filings Referencing Biocatalysis: +100% 10

11 Growing Portfolio of Profitable Products PRECLINICAL PHASE 1 PHASE 2 PHASE 3 LAUNCHED AstraZeneca BMS BMS Glycom/Nestle Krka Merck Merck Merck Merck Merck Merck Merck Merck Novartis Novartis Lilly Pfizer Roche Teva Teva Teva

12 Commercial Products & Customers Top revenue sources in 2013 (>$1mm each) Expanding portfolio of commercial revenue with leading biopharma companies Over 50 pharma companies use CDXS (Merck) products or technology Top revenue sources in 2010 (>$1mm each) Atorvastatin (Arch Pharma) Boceprevir (Merck) Patented Drug (Pfizer) Service Rev. (Teva) Atorvastatin (Arch Pharma) Boceprevir Sitagliptin (Merck) Service Rev. (Merck) Simvastatin (Undisclosed) Argatroban (Exela) Rivastigmine (Novartis) Crizotinib (Pfizer) Patented Drug (Undisclosed) 12

13 Transforming Blockbuster Drug Manufacturing Developed new commercial production route for Januvia Merck announced process saved potentially ti $100M in manufacturing capacity expansion Improved productivity by 56%, increased yield by 7 10% and reduced waste by 19% Merck received FDA approval for new CDXS 1 step process CDXS received EPA Presidential Green Chemistry Award in 2010 Merck and CDXS signed 3 year extension of collaboration PRIOR CHEMICAL PROCESS BIOCATALYTIC PROCESS 13

14 Growth Strategy

15 Growth Strategy Overview Replicate deep partnering success with Merck at other major pharma Building out our commercial team and sales force Increase early adoption and access to biocatalysis technology Expand late stage project flow through CMO partnerships p Continue expanding reach of our leading technology platform in pharma and complex chemistry markets kt 15

16 Substantial, Underserved Market Opportunity Significant untapped global market for biocatalyst platform Small Molecule Pharma Value of API: Addressable with Biocatalysis: Biocatalyst Cost in Use: Biocatalysis Market Potential: $60bn 30% 5 10% $1 2bn 16

17 Replicating Merck Partnership Pursuing development agreements with large biotech and pharma companies From development services, to customized biocatlayst engineering gand technology license to CDXS platform CDXS receives future commercial royalties, milestone payments, technology fees and FTE funding Target Markets Big pharma Major biotech Small biotech, CMOs, industrial biotech 17

18 Beyond Pharma: Expanding Biocatalysis in Complex Chemistry Markets Superior enzymes for cost advantaged process solutions Pharmaceuticals and Intermediates Improved process performance Efficiency & simplicity Faster development Sustainability Robust supply chain Personal Care Food and Nutrition Ntiti Agricultural Chemicals Animal Health Flavors and Fragrances 18

19 Corporate Summary

20 Financial Summary Driving top line revenue Expect $8M to 9M in Q year end revenue guidance of $30 $32M Projecting 5 10% in total revenue growth in 2014 Accelerating Biocatalysis profit growth in 2014 Maintain greater than 50% gross margin; 10 15% gross margin increase year over year Operating discipline Implementing needed cost efficiencies Preserve solid balance bl sheet $31M cash (9/30/13), 2013 cash burn of approximately $23M. End of year cash projected to be at approximately $26M 2014 cash burn guidance of less than $8M No debt 20

21 Accelerating Long Term Profit Growth $20 $15 $10 $5 $0 Total Biocatalysis Gross Profit ($ in millions, USD) (Est.) 2013 Product Gross Profit Collaborative R&D Gross Profit Revenue make up Product revenues: sales of biocatalysts or chemical intermediates (using biocatalysts) Collaborative R&D: FTE service revenues, royalties, milestone payments, & licensing fees Profit growth results 51% profit CAGR from F 2013 total gross margins: ~ 50% Up from 18% in product gross margins of 30+% 21

22 Investment Highlights A leading edge biotechnology toolkit Disruptive value creation built on unrivaled technological prowess A profitable,,growing gplatform business Growing portfolio of products serving an expanding customer list Robust development pipeline set to feed future sales growth Accelerating penetration ti in large, underserved dmarkets kt Process development in pharma and other complex chemistry markets Long term opportunities in development of new improved drugs Focused on future profit growth and cash flow generation Gross profit CAGR of 50% over last 5 years Expect year on year gross profit growth of 15 20% in cash burn expected to be less than $8M 22

23 C Corporate t O Overview i February 2014