Q1 2022 Codexis Inc Earnings Call
Welcome to the Codexis first quarter 2022 earnings conference call.
If anyone should require operator assistance during the conference. Please press star zero on your telephone keypad.
Please note this event is being recorded.
And now I'll turn the call over to Brendan strong from Argot partners. Please go ahead.
Thank you operator with me today are John Nicols Codexis, as President and Chief Executive Officer, and Ross Taylor, Codexis as Chief Financial Officer.
During this call management will be making a number of forward looking statements within the meaning of the private Securities Litigation Reform Act of 1995, including our guidance for 2022 revenues.
Revenues and gross margin on product revenues prospects for our life sciences tools crude sector, and biotherapeutics product businesses and our expectations regarding the sales of one of our proprietary enzymes to Pfizer for the manufacturer of the COVID-19, antiviral therapeutic pack slogan.
The extent that statements contained in this press release are not descriptions of historical facts regarding codexis. They are forward looking statements, reflecting the beliefs and expectations of management as of.
The state and date May five 2022.
You should not place undue reliance on these forward looking statements because they involve known and unknown risks uncertainties and other factors that are in some cases beyond codexis is control.
And that could materially affect actual results additional.
Information about factors that could materially affect actual results can be found in <unk> annual report on Form 10-K filed with the Securities and Exchange Commission on February 28, 2000 2022 <unk>.
Including under the caption risk factors and in Codexis as other periodic reports filed with the SEC Codexis expressly disclaims any intent or obligation to update these forward looking statements, except as required by law and I'll now turn the call over to John .
Thank you Brendan good afternoon, everyone.
I am pleased to report that Codexis has delivered another very strong quarter of top line growth as we kick off 2022.
Total revenue of $35 $3 million for the first quarter of 2022 nearly doubled year over year.
A tripling of product revenues versus last year led the way and those were delivered at an expanded gross margin reaching 72%.
Our sales continued to be spread across a wide range of customers in the quarter as well with 16, who contributed over $100000 in revenue eight of whom contributed over $1 million.
We will provide an in depth overview of each of our business segments, shortly but I am proud to highlight that we are building on the strength of last year's defining success in the sustainable manufacturing market by consistently showcasing our value to a broadening range of customers through the quick and efficient scale.
<unk> of our product supply capacities.
Notably we continued to steadily execute against the large enzyme orders we received from Pfizer to support <unk>, It's COVID-19 anti viral therapeutic.
In parallel we continue to build momentum in our other exciting target growth areas, including driving our successful step out strategies in the life science tools market by collaborating with innovative early stage companies molecular assemblies and sequels.
And we continue making great strides advancing programs across our biotherapeutics pipeline.
Our first quarter results nicely highlight codexis is ability to continue driving robust progress across all of our core end markets. While also pursuing opportunities to push the application boundaries of our enzymes. We are thrilled to reiterate our 2022 guidance.
To grow our annual total company revenue by nearly 50% for the second year in a row.
Before I hand off to Ross to share details on our first quarter financial results. Let me first provide uptake updates across each of our businesses.
Sustainable manufacturing is where we've established codexis as a preeminent leader in enzyme engineering and this market continues to represent a large majority of the company's revenues.
But <unk> is novel high performance enzymes reliably enable our customers to dramatically reduce the cost and increase the sustainability of their manufacturing of their end products.
And our code of our enzyme engineering platform is constantly accelerating the speed of our ability to discover and commercialize these value creating enzymes.
Small molecule pharmaceutical processes have been and continue to be a core target for growing the sustainable manufacturing market for codexis.
Here, we are doing business with 21 of the 25 largest pharmaceutical companies in the world, helping them adopt and install novel Codexis enzymes for manufacturing there.
Yes.
We continue to deepen our relationships with these great companies as well as extend our technology reach into smaller biotech and generic companies.
After decades pioneering the use of enzymes to improve pharmaceutical manufacturing our.
Our technology is now becoming more mainstream as this market witnesses the substantial inroads, we are making into blockbuster drugs like merck's, januvia diabetes drug and Pfizer's <unk> Covid anti viral.
Codexis is increasingly proving double digit percent cost savings enhance sustainability at full commercial scale and in the case of <unk> in record time.
At least one out of three small molecule drug manufacturing processes can benefit similarly, and we have only just begun to deliver against this long term billion dollars plus addressable market opportunity.
22, additional drugs in phase II or phase III have a codexis proprietary enzyme installed in their processes more than double from just a few years ago, which bodes well for continued medium and long term product revenue growth in this core market segment for Codexis.
Extending these benefits outside pharma manufacturing, we've been growing in other industries and exciting new verticals like food and nutrition as well.
These industries have shorter development timelines and lower regulatory hurdles, then pharma manufacturing, enabling our enzymes to reach the market more quickly.
Our historical food customers Caden, Lyle and calcic continue to grow the downstream customer adoption of their new food ingredient enabled by our proprietary enzymes.
In the first quarter, we booked nearly $1 million in revenues in this category continuing our solid growth momentum in the food sector.
Encouragingly as we've kicked off 2022, we are also building early product development successes across multiple other customers and industrial verticals as well.
Shifting to the life science tools market. It was only a few short years ago that we identified this area as a target market for Codexis and since then this market has taken off as a significant growth opportunity for the company.
Codexis engineered enzymes can enable improvements in next generation sequencing and molecular diagnostics, DNA and RNA synthesis and more.
The market is very attractive given its high growth commercialization cycles and above average margin prospects.
Furthermore, enzymes developed for life science tools applications can often be marketed to multiple customers.
While much of our work in this space still centers around engineering highly specialized enzymes for specific partners. We are also focused on opportunities, where we can open up multiple customer markets for broad penetration of unique codexis engineered enzymes.
In 2021, we launched three such project products Codecs, Hi, Fi DNA polymerase for use in next generation sequencing.
Codex high cap RNA polymerase for use in messenger, RNA manufacturing and codex high temp reverse transcriptase for use in Q PCR viral diagnostics.
Each of these enzymes is engineered to offer differentiated and highly beneficial performance attributes and their respective applications such as enhanced diagnostic fidelity thermal stability robustness cycle time reduce waste generation et cetera.
Ara.
We continued to make strides in our sales ramp for all three products and we look forward to providing further updates on commercial progress here through the rest of 2022.
In addition to our commercial presence in the life science tool space, we are making exciting advancements on the partnership front aimed at leveraging the power of our code evolve our platform to deliver dramatic performance improvements in life Sciences.
In April Codexis, and molecular assemblies announced the successful completion of one of the most intensive enzyme engineering campaigns in Codexis is history.
The resulting highly evolved diversion of T D T polymerase, which had over 90 amino acid modifications affected by Cody Bolivar <unk>.
Delivers unparalleled coupling efficiency and speed at elevated temperatures.
This enzyme both enables and significantly differentiates molecular assemblies fully enzymatic synthesis technology from other emerging players as well as versus today's industry standard non enzymatic DNA synthesis methods.
In parallel molecular assembly is working to scale their manufacturing platform and commercially offer custom long length, oligonucleotides and gene like DNA to customers in 2023 they.
They are kicking off a key customer program later this year targeting select companies in gene editing, including CRISPR technologies next generation sequencing synthetic biology, and other high growth applications.
Our enthusiasm over the recent progress with molecular assemblies is underscored by our position as the second largest shareholder and we remain deeply motivated by the opportunity to realize value from both our enzyme revenues as well as to capture downstream value through our.
Equity investment.
Through this innovative partnership Codexis is poised to access the billion dollars plus in fast growing field of DNA synthesis.
We also recently announced another strategic investment and partnership in the life Science Arena. This time with sequel, a developer of transformative library preparation products for various genomics and Ngls applications.
Like with molecular assemblies, Cody volver enzyme engineering can enhance sequels technology and product offerings.
They are differentiated approach to simplify nextgen sequencing workflows utilizing their plex well technology has been gaining early market adoption since its launch over the last few years.
Plex wells and GFS workflow efficiency is enabled.
By a unique enzyme called a transposase ifs.
Effectively this enzyme enables to traditional ngls workflow steps to be collapsed into one.
Both codexis and seek well see benefits from could evolve or to engineer the transposase to liberate even more ngls workflow efficiencies.
We are thrilled to have led sequels series C financing with a $5 million investment this establishes codexis as the only strategic investor in sequel, and again allows us to enjoy the downstream value creation as an equity holder in this innovative revenue stage.
<unk> private company.
Rounding out the life science tool sector, we continued to experience strong demand for our range of partnered enzyme engineering program.
For life science applications in which a bespoke engineered enzyme product can unlock value.
These programs add low risk sources of potential future commercialization opportunities and we will continue providing timely updates as these engagements mature.
We remain steadfast in our belief that enzymes are core to unlocking exceptional value and opportunity across life science tools.
Due to Cody bolivars unique performance attributes and ability to design highly customized products Codexis is poised to be a critical partner in value creation for a range of customers beaten.
Between penetration potential for our recently launched products, new product launches with broad customer applicability and new high synergy partnerships. We anticipate this sector will continue to be a leading source of future topline growth.
Discovering and developing novel Biotherapeutic drug candidates is another exciting growth strategy at Codexis.
Just a few years ago, we had only two very early stage programs.
<unk>, we have over a dozen programs in the pipeline, including including two assets and clinical stages.
At this point it is clear that our <unk> platform is a differentiated drug discovery engine capable of uniquely addressing a widening range of human health challenges.
Guided by machine learning and our unparalleled enzymology expertise.
The Codexis Biotherapeutic teams, we'll Dakota evolve our platform to efficiently elevate unique increasingly on target large molecule candidates.
Translational teams validate those and relevant preclinical models than development teams tap into our decades of experience in bio processing to scale and manufacture. These candidates to meet the fda's rigorous GMP quality standards to enable clinic.
Trial initiations.
No other synthetic biology company has built such an extensive biotherapeutic discovery and development capability. We are highly confident in the pipelines accelerating value creation.
And so are our lead biotherapeutics partners necessarily health science, and Takeda, who continue to tap into Codexis biotherapeutics programs, helping us de risk learn cover costs and generate revenues.
Like our performance enzymes business unit 2022 is shaping up to be an excellent year for Codexis biotherapeutics.
Later this year, we expect to be able to share data from our phase one trial of <unk> 7108, our oral enzyme therapy co owned with Nestle for the treatment of exocrine pancreatic insufficiency or epi.
<unk> 7108 is orally administered Gi active light pace that was precisely engineered to be highly stable to the aesthetic conditions in the stomach, which is a key challenge for today's industry standard billion dollar plus pancreatic enzyme replacement therapies or <unk>.
Works.
A 10 day course of CTX several ones are eight and then E.
Mini pig model showed equivalent coefficient of fat absorption recovery at a 10 fold lower dose than the current standard of care part.
Additionally, we are on track to advance three development candidates into IND, enabling stage in 2022.
One of those three programs co owned with Nestle Health Science should initiate preclinical development stage activity later in 2022.
Gtx 6512 wholly owned by Codexis is already moving towards the clinic.
It has been granted orphan drug designation and rare pediatric disease designation by the FDA for the treatment of home assistant urea, a rare inborn error of amino acid metabolism disorder estimated to affect one in 150000 people worldwide.
And finally, CTX 6210, our wholly owned candidate for the treatment of Maple syrup urine disease or MSU D is expected to begin IND, enabling work later this year.
Rounding out our positive biotherapeutic pipeline update is our newer equally exciting work to to leverage <unk> to enable safe more effective next generation gene therapy candidates.
Here, we are pleased to report solid progress across each of the four programs in partnership with Takeda.
At this point, we have handed off our lead <unk>, our engineered Trans gene candidates for three of the four programs to Takeda and they are advancing each of those through their gene therapy preclinical evaluations.
We look forward to upcoming presentations in May at the American Society of gene and cell therapy, 25th annual annual meeting where two of Codexis is impressive scientists will present posters highlighting differentiated performance data for all three of these engineered transgene programs.
Building upon all these accelerating and widening validation, we anticipate new biotherapeutic partnering activity to be announced before the end of the year as well.
Let me now hand, the call over to Ross to take you through our financial results in more detail.
Yeah.
Thanks, John and good afternoon, everyone.
We delivered strong first quarter 2022 results.
Total revenues for the first quarter of 2022 were $35 3 million up 96% compared to the prior year period.
On a segment basis $33 $1 million in revenue was from the performance enzymes segment and $2 2 million was from novel Biotherapeutics.
This compares with $14 2 million and $3 $8 million for performance enzymes and novel Biotherapeutics, respectively from the prior year period.
Product revenues for the first quarter of 2022 were 30.
$37 million.
Compared to $10 $2 million in the first quarter of 2021.
The increase was due to additional sales of enzymes to Pfizer for Pax movement.
Which represented $21 $3 million in product revenues in the first quarter of 2022 compared to zero point $4 million in the first quarter of last year.
R&D revenues were $4 7 million compared to $7 $8 million last year.
Kris was driven by lower revenues in both the performance enzyme and bio therapeutics segments.
Product gross margin for the first quarter of 2022 with 72, 2% compared to 58, 8% in the first quarter of 2021.
The increase was driven by increased sales of higher margin products.
Turning to operating expenses, our R&D expenses for the first quarter of 2022 were $19 5 million.
Third to $11 $6 million in the first quarter of 2021 the.
The increase was primarily driven by higher headcount and salaries as well as higher expenses for facilities and lab supplies.
SG&A expenses for the first quarter of 2022 were $15 7 million.
Compared to $11 $4 million in the first quarter of 2021.
The increase was primarily the result of increased expenses for legal fees higher headcount and salaries as well as higher stock compensation expense.
The net loss for the first quarter of 2022 was $8 4 million or <unk> 13 per share compared to a loss of $9 1 million or <unk> 14 per share for the first quarter of 2021.
As of March 31, 2022, the company had $94 million in cash and equivalents.
I would like to spend a moment to break down our financial results by segment.
Revenue in our performance enzymes business increased 134% to $33 $1 million in the first quarter of 2021.
Before the allocation of corporate to corporate overhead expense operating income for this segment was $14 9 million in Q1 were an operating profit margin of 45%.
This is up significantly from last year as a result of the large increase in product sales.
And our novel Biotherapeutic business revenue was $2 $2 million.
And it generated an operating loss of $10 8 million again before the allocation of corporate overhead expenses.
The operating loss of our Biotherapeutics business is typical of most pre pre commercial biotechnology companies and.
And we plan to continue to invest in advancing our biotherapeutic pipeline.
Turning to guidance, we are reiterating our financial guidance for 2022.
Previously issued on February 24, this year.
Total revenues are expected to be in a range of $152 million to $158 million, an increase of nearly 50% at the midpoint compared to 2021.
We anticipate our non Pfizer revenue should grow 10% or more in 2022 compared to 2021.
Product revenues are expected to be in a range of $112 million to $118 million, including approximately $75 million $80 million related to Codexis is proprietary high performance enzyme used by Pfizer to manufacturer <unk>.
Gross margin on product revenue is expected to be in a range of 65% to 70%.
In summary, we are starting off 2022 from a strong position with excellent top line growth remarkable growth in product revenues and strong product gross margins similar to the last two quarters of 2021.
And now I'll turn the call back to John .
Thanks, Ross, let me close out our prepared remarks in the context of our 2022 corporate goals and catalysts.
As we have described Codexis has maintained strong momentum throughout early 2022 in particular in our sustainable manufacturing market, we continue to pursue widened adoption and product commercialization and pharma manufacturing and accelerated uptake in food and industrial verticals.
All while executing on our exceptionally high volume sales to Pfizer for the manufacture of <unk>.
In life Science tools, where we are growing the use of our three recently launched enzymes and driving innovative partnerships with molecular assemblies and sequel, we are energized by unlocking the power of our engineered enzymes when applied to nucleic acid synthesis and next generation sequencing.
As we continue building momentum in this market, we look forward to capitalizing on additional opportunities to expand both our customer and application base going forward.
We also continue to expand and advance our pipeline of high value assets and partnerships in the biotherapeutics segment.
Our key clinical milestone for CTX seven months or eight and the continued focus on advancing IND, enabling work for three additional assets set this segment up for another step out year of value creation.
I am extremely proud of the Codexis team's tremendous accomplishments, we've had a defining start to the year and heading into the rest of 2022, we have clear visibility into the multiple catalysts that will accelerate our growth ambitions.
We remain focused on driving growth across all of Codexis as markets and we look forward to providing further updates in the quarters to come.
Now we'd be happy to take your questions operator.
Thank you.
At this time, we'll be conducting a question and answer session.
If you'd like to ask a question. Please press star one on your telephone keypad.
For me Paul.
Your line is all my questions.
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Our first question comes from the line of Steven Mah with Cowen. Please proceed with your question.
Great. Thanks, operator.
Congrats on the quarter and thanks for taking the questions.
Yeah, Thanks, a lot Steve.
So first one on <unk> can you give us a sense of the <unk> revenue cadence for the rest of 2022, given youre maintaining the <unk> revenue guide.
And I guess, if I'm doing my math right the $21 3 million in Q1.
Suggest potentially.
On a sequential quarterly over quarterly.
Basis.
Revenues should be going down am I thinking about that right.
Okay.
Thanks.
Sorry, its rusty.
Yes, I think.
Don't want to get into too much detail about the cadence of each each quarter.
Do you honestly I think Q2 could prove to be a little bit stronger than Q1 per Pax loaded.
And then it probably evens out over the back half of the year in terms of Q3, Q4 being being more equal, but what I would expect Q2 is a good chance of being a little stronger than Q1 for <unk>.
Okay.
Is there a is there any sort of like element of.
Frontloading here, where.
Risers, maybe like stockpiling the enzyme.
Is that what's causing the.
The SKU forward.
I don't I don't think so I think.
The supply chain buildup that we're observing for Pfizer is exceptional.
And so they've lined up enzyme the enzyme obviously is.
Need it in advance of the manufacturing the key intermediate for <unk> and <unk>.
We are delivering our enzyme to multiple locations for Pfizer. So I don't think there is.
Stockpiling of our product that's happening I think really.
Pfizer seems to be driven too.
The manufacturer to expand the manufacturer of their <unk> that as quickly as possible to be as responsive to the pandemic as possible. So I don't see that happening at all.
Okay, Okay got it.
You know I guess.
I don't know if you can give us any color on to 2023 was tax a little bit but do you expect.
And there too I don't know if you can give us any color on that.
Yes, its super hard.
We're obviously executing a substantially well against 2022 orders and this has been a priority for our company as you can see from the financials.
And in previous earlier in the year, we we shared with the Investor community that we had significant noncancelable pose for 2023 as well.
And that those purchase orders represented a majority of of our 2022 guidance expectations.
Really.
Roughly a majority so the outlook beyond this year is extremely difficult to predict.
So it's good that we have these noncancelable Pos to carry us in but it's really opaque to make any real clear.
<unk> of what to expect in 2023, <unk> and our enzymes to support that.
Okay.
That makes sense, thanks for that thanks for that color.
Last one for me on the life science tools enzyme.
Can you give us any color on the expected demand from molecular assemblies and.
Can you remind us on the margin profiles.
Enzymatic DNA synthesis enzyme is that going to be in line with the other life science tools enzyme margins that you guys have.
Yes, great question. Thanks, as you heard on the prepared remarks, we are super excited about how well our partnership with molecular Assembly is this working out.
Have shifted from <unk>.
Very intensive enzyme engineering chapter, which generates R&D revenues for codexis to starting to supply enzymes.
For for molecular assemblies, and somatic DNA synthesis in 2022, those product revenues will be very modest not very large.
But of course with success, we expect that to ramp.
Next year.
Next year as the prepared remarks shared is when we expect molecular assemblies to commercialize their business.
That's one enzyme needful grow.
Start to grow we will ramp and start to grow.
And on the margin question, yes, very much in line with what.
The standard gross margins for our products that you are youre seeing across our portfolio.
Okay, great. Thank you.
Thank you Steve.
Our next question comes from the line of Brandon Couillard with Jefferies. Please proceed with your question.
Hey, Thanks, good afternoon.
Got it he chance you could break out the revenue contribution from life Sciences in the first quarter and any color on which of the three products you're seeing the most traction of customer interest that would be interesting. Thanks.
We didn't break out the revenues for life Sciences, we certainly uphold our previous outlook for that sector to generate 12 plus million dollars of sales for the company and that's a mix of both product revenues, but frankly, a majority of R&D revenues as we move through this year and where.
Doing well through the first quarter.
On the three launched products.
Of course, we only launched the high temp reverse transcriptase late last year. So so we're encouraged by customer response to that but it's too early to be generating product sales from the high temp.
Reverse transcriptase so on the.
Hi Fi DNA preliminaries for next Gen sequencing.
And the high.
The Hi Fi RNA polymerase for messenger RNA, they're both doing well we continue to get traction.
Honestly the messenger RNA enzyme is doing a little bit better, but they are both doing well for us. So we continue to be quite encouraged by the early days of the launch of all three of these enzymes.
Okay and then just a question on just the R&D revenue line.
Coming under $5 million for the quarter performance about therapeutics were down.
Just help us understand whats driving that and your level of confidence and the implied 40 million guide for the year.
Hey, thanks, Thanks Brandon.
We're off to a good start.
Essentially effectively all of the revenues ex Pfizer the.
We are in a good place.
Delivered against the first quarter largely as expected.
Of course, the highlight for the P&L for this quarter is all of the sales to Pfizer.
We're in a good place on the rest of the ex Pfizer revenue.
We continue to see.
Growth throughout the year from the start for <unk> in R&D revenues.
And just that's pretty typical for us to to have a growing cadence of R&D revenues through the year and we see that happening in 2022, as well, which obviously implies strength in the back half of the year.
We've seen nice nice growth in the food area, we highlighted that some early R&D work in the other industrial verticals is starting to unfold for us a nice early R&D revenue generation, there and we hope to see that continue to grow.
And we also shared that we expect to unfold.
Our new biotherapeutic partnering deal before the end of this year, so that clearly would add to our expectations for being able to deliver the expected R&D revenues for the company over the full year.
Pretty good thanks, Thank you.
Our next question comes from the line of Matt Hewitt with Craig Hallum Capital Group. Please proceed with your question.
Good afternoon, and thank you for taking the questions.
Kind of maybe tackle the cadence a little bit differently I'm, just wondering Russ if you could maybe parse out first half versus second half revenues on the product side or if you want to talk about maybe total revenues again this first half versus second half.
Yes.
Just talking about total revenues I think Matt.
Yeah. My expectation is Q2 revenues probably will grow at a rate.
There are 10% to 20% sequentially from where we were in Q1.
And then obviously the balance will be back in the second half of this year.
Yes, I think that's fair.
Estimate now would be probably equally weighted between Q3 and Q4.
That's really helpful. Thank you and then.
I guess one of the topics, we havent discussed is on the food and nutritional side.
Maybe if there's any type of an update on the patent lie on the progress that they are seeing with the sweeteners.
Yeah, Hey, Thanks, Matt.
We highlighted that we generated roughly $1 million in the quarter and the food sector spread between our two lead customers Tate <unk>, Lyle and Cal Sac and both of them actually are showing downstream success for their new products that they've launched which have been enabled by our enzymes. So so really just nice.
Momentum.
And steady momentum as we move through last year and got off to start in 2022, both for the Tate <unk> Lyle sweeteners, which they continue to encourage us that their marketing of the new products the better tasting stevia their call at <unk> am and there they are bulkier, but.
Similarly, low caloric.
<unk> Prima alula sweetener of both of them are doing well in in new formulation work and promotion to their downstream food and ingredients customers. So it feels really good really solid.
That's great. Thank you.
Thanks, Matt.
As a reminder, if you'd like to ask a question. Please press star one on your telephone keypad.
Our next question comes from the line of Bill Kim with Piper Sandler. Please proceed with your question.
Hello, Good evening gentlemen, this is carrying on for dough well congrats on another solid quarter. So I think quick questions.
Yes, my pleasure.
And about the wholly owned pipeline. If you can provide some more of your broader thoughts around timelines in terms of development. So you talked about how some of those assets are in R&D.
R&D development, how are you thinking about prioritization of some of these programs.
Lastly, some of the inflection points that youre thinking about.
In terms of once a partner them out thank you.
Yes, really really good thank you.
So we're super excited about the continued progress in our biotherapeutics pipeline.
As you know we have two programs that are in clinical stage.
The PKU program has been out license to Nestle now for first for years and they are.
Winding up for multiple ascending dose study and we shared in February that we don't expect that to be completed until next year at this point.
So we are most excited in the clinical stage with the.
The impending readout from the phase one trials for <unk> zero eight lipase that I highlighted on the call for exocrine pancreatic insufficiency. So this is really a critical priority for Codexis and were quite excited to ultimately show the data that continues to reinforce.
First is the continued development of <unk> as a reminder, <unk> is co owned between Codexis and Nestle Health Science.
Behind that we've got three programs that are advancing.
Towards IND, enabling stage.
One of them is <unk> 512 for homeless system urea. This is the one where we have the orphan drug designation and we have the rare pediatric disease designation as well and that one has already moved.
Moving towards through the IND, enabling step we've lined up for GMP manufacturing of CTX 651, too. So we're on track to bring that one towards the clinic as we move to the end of next year, we should be.
Starting to line up our first clinical trials for 6512.
The other two programs arent quite yet.
At the IND, enabling stage theyre being lined up for that one of those is another self wholly owned asset.
<unk> 210 for Maple syrup urine disease, so stay tuned and we'll let you know when we start the IND, enabling work for <unk> 210 for MSU D and the third.
Nearly any asset.
Nearly IND, enabling asset is a partnered program with Nestle.
So this would be the third partnered program with necessarily beyond PKU and Cvs 67108.
On partnering I mean, this is a really important balance we've been very careful as a company not to get too overextended with these significant expenses of developing.
Codexis discovered.
Bob.
Biotherapeutic candidates.
To sell funding.
By partnering is continues to be a very crucial strategy for the company.
Makes sense, thanks for all the color.
Yeah.
I'm showing there are no further questions I would like to turn the call back over to John Nichols for closing remarks.
Okay. Thank you everybody again for joining us as a reminder of we will be presenting two posters at the American Society of gene and cell therapies, 2025th annual meeting on May 16th.
Additionally, we will be attending several investor conferences in May and June this year, and we hope to see you there as well in person for many of those events.
We look forward to continuing to update you on could excesses progress and to all the mothers out there have a great happy mother's day and for all those guys out there don't forget to to to say thanks to your mothers and your your partners who are mothers everyone have a great rest of your afternoon.
This concludes today's conference and you may disconnect your lines at this time.
Thank you for your participation and have a wonderful day.
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