Cibus (CBUS) 7 Nov 24 2024 Q3 Earnings call transcript
Cibus Corporation, a pioneering force in gene editing technology for agriculture, held its third quarter 2024 earnings call, revealing significant milestones and strategic shifts that are shaping its journey from a research and development (R&D) company to the first commercial gene editing company in the industry. Rory Riggs, Co-Founder, Chief Executive Officer and Chairman, led the call, accompanied by Cornelis Broos, Executive Vice President and Chief Financial Officer, and Peter Beetham, Co-Founder, President, and Chief Operating Officer.
A Transformative Period: From R&D to Commercial Success
In the first nine months of 2024, Cibus has marked a transformative period, evolving from an R&D-focused company to the first commercial stage gene editing company. This transition, highlighted by three cornerstones, has streamlined the organization, focusing on product launches and maintaining a strong focus on developing productivity traits for agriculture. These cornerstones include the completion of the trait machine process and industrial technology breeding platform, operationalizing the trait machine platform, and collaboration with major seed company customers.
Completing the Trait Machine Process: A Paradigm Shift in Trait Development
The first cornerstone, the completion of the trait machine process, represents a paradigm shift in the breeding of complex traits. With this breakthrough, Cibus is able to edit and regenerate customers' lead germplasm into a plant within just 12 months, accelerating the timetable to commercialization for each trait once developed. The efficiency and speed of this process have resulted in successful greenhouse data for the HT-2 trait in canola and disease program within 12 months of the edit. This predictable timetable is essential for commercializing customer traits and marks a significant step towards streamlining the trait development process.
Operationalizing the Trait Machine Process: Scaling Up for Multiple Traits and Customers
The second cornerstone, operationalizing the trait machine process, is another paradigm shift in breeding new traits. This industrialization of trait transfer and development showcases the power of the trait machine process to shorten development time lines, commercialization time lines, and the cost of developing new traits. Cibus's ability to develop multiple traits within a compressed time frame is a testament to the efficiency of the trait machine process, with a pipeline of five different traits currently in development. This scale and speed of trait development is a critical factor in Cibus's commercial success.
Strategic Collaborations: Licensing and Commercializing Traits with Major Seed Companies
The third cornerstone, collaboration with major seed company customers, is a validation of Cibus's technology as a commercial platform. These collaborations mark the development of gene editing as an extension of the breeding programs for seed companies, underscoring the commercial potential of gene editing in agriculture. Cibus's goal is to develop, license, and commercialize these traits in their seeds for trade fees or royalties, establishing a strong commercial foundation for the gene editing industry.
Looking Ahead: A Strong Foundation for Future Growth
Cibus's strategic moves towards commercial success are evident in its collaborations with major seed companies in each of its crop platforms. These partnerships, aimed at developing, licensing, and commercializing traits in customer germplasm, demonstrate Cibus's commitment to leveraging its trait machine process as the key engine for commercializing traits across multiple crops and customers. With a focus on efficiency, speed, and predictability, Cibus is well-positioned for future growth, underscoring its role as a pioneer in the gene editing industry for agriculture.