eXoZymes (NASDAQ:EXOZ) outlined progress toward commercializing its NCT program, including a reported tenfold increase in process productivity versus its March pilot campaign, while management said it expects to select a manufacturing partner by the end of the third quarter and identify a market launch partner toward the end of the fourth quarter.
The company, which remains pre-revenue, said its targeted timeline is to launch an NCT product in the first half of 2027. Executives also discussed government-supported research programs, an internal pipeline of potential future products and the company’s second-quarter financial position following June financing transactions.
NCT Process Moves From Pilot Scale Toward Commercialization
Since that March pilot run, eXoZymes has focused on improving productivity. Korman said the company now obtains approximately 67% more NCT per liter of reaction volume, while the reaction is completed about five times faster. Combining those gains with other process improvements, the company said its process is now roughly 10 times more productive than it was during the pilot campaign.
“The pilot campaign in March demonstrated the process could work,” Korman said. “This productivity work here is what we believe makes it economically attractive.”
He added that the company has shifted the process to commercially relevant unit operations rather than development-lab procedures. The company cautioned that the timing and outcome of any technology transfer remain subject to factors described in its SEC filings.
Chief Commercial Officer Damien Perriman said partner selection is being evaluated on more than equipment and costs, emphasizing communication, collaboration and problem-solving capabilities during technology transfer. eXoZymes is also qualifying backup manufacturing options to support supply continuity as NCT demand grows.
The company said it has verified multiple suppliers for key production inputs and is pursuing an asset-light production model using external manufacturing partners rather than building its own facilities. Perriman said regulatory activities, including GRAS preparation and supporting human studies, are part of the commercialization foundation.
Management expects a commercial and marketing partner to provide branding, channel development, commercialization expertise and market reach. Perriman said eXoZymes is screening prospective launch partners and expects to share details on that relationship toward the end of the fourth quarter.
Platform Pipeline Includes Cannabinoids and Undisclosed Candidates
Beyond NCT, Korman said eXoZymes is developing rare and novel cannabinoid analogs with support from a $2 million Phase II-B SBIR award from the National Institutes of Health received in June. In July, the Department of Energy selected the company for its Genesis Mission, through which eXoZymes is working with Lawrence Berkeley National Laboratory on AI-enabled digital twins for enzyme-driven biomanufacturing.
The company also said it has advanced milestones through the National Science Foundation-funded CFAR program. Together, management said, its federal support totals approximately $20 million to date in non-dilutive capital. Korman noted that the awards reflect the scientific merit of research proposals and do not represent government endorsement of eXoZymes or its products.
Management described a “new ideas engine,” a stage-gated system for evaluating prospective biosolutions. Candidate molecules are assessed for technical feasibility, market appeal, economic and operational considerations, and strategic differentiation, Korman said.
Five undisclosed molecules are currently in rapid proof-of-concept evaluation. The company did not identify the molecules or assert that any individual candidate will succeed, but said successful programs could address nutraceutical, cosmetic and pharmaceutical opportunities.
Second-Quarter Results and June Financing
VP of Finance Fouad Nawaz said eXoZymes ended June with $5.65 million in cash and cash equivalents, which management said was sufficient to support operations and key initiatives into the end of 2026.
- Second-quarter operating expenses were $2.95 million, up $405,000 from the prior-year quarter.
- Operating expenses for the first six months of 2026 were $5.34 million, an increase of $1 million from the first half of 2025.
- Second-quarter net loss was $2.88 million, while net loss for the six months ended June was $5.25 million.
- The company used $3.6 million of cash in operations during the first half of 2026, according to CEO Michael Heltzen.
Nawaz attributed higher expenses primarily to research and development investment, including personnel additions and internal infrastructure development.
During June, eXoZymes completed two financing events that generated $5.86 million in net proceeds, Nawaz said. Heltzen said the company raised gross proceeds of approximately $6.59 million through an underwritten public offering and a registered direct offering.
The public offering, which closed June 9 and included an underwriter over-allotment exercised June 17, issued 660,000 shares and approximately 330,000 warrants for gross proceeds of about $6 million. A June 30 registered direct offering issued a further 71,000 shares and equivalent warrants for gross proceeds of $640,000. Heltzen said the company had approximately 9.3 million shares outstanding following the transactions.
Strategy Shifts Toward Company-Selected Product Assets
Heltzen said eXoZymes has shifted away from its earlier strategy of pursuing a high volume of early-stage development partnerships across numerous verticals. He said potential partners were interested in the company’s cell-free biomanufacturing technology but were reluctant to be first users of a new platform, lacked budget capacity or sought terms that would leave eXoZymes with limited upside.
Under its revised strategy, which management calls “Focus for nutraceuticals with pharmaceutical potential,” eXoZymes intends to develop selected assets further before entering partnerships. Heltzen said the approach allows the company to de-risk programs before negotiations and retain more value while focusing on molecules that can potentially reach nutraceutical markets, such as supplements or skincare products, before pursuing pharmaceutical applications.
Management said it will continue to seek grants, deal payments, licensing opportunities and other financing options as it advances NCT commercialization and its broader product pipeline.
About eXoZymes (NASDAQ:EXOZ)
eXoZymes, Inc develops, manufactures and supplies a range of enzymes and reagents designed for molecular biology research and diagnostic applications. The company’s enzyme engineering platform underpins a portfolio of products aimed at supporting nucleic acid purification, amplification and analysis workflows.
Key offerings from eXoZymes include magnetic bead–based nucleic acid extraction kits, DNA polymerases, reverse transcriptases, proteases and custom enzyme services. In addition, the company provides molecular diagnostic test kits designed for pathogen detection, leveraging scalable production processes and quality systems aligned with regulatory standards.
eXoZymes serves academic research institutions, biotechnology and pharmaceutical companies, and clinical diagnostic laboratories worldwide.
