eXoZymes Inc (NASDAQ:EXOZ) saw its shares rise 3.9% in after‑hours trading on Wednesday following the announcement of a $2,028,518 Phase IIB Small Business Innovation Research (SBIR) grant from the National Institutes of Health (NIH). The award, issued by the National Institute of General Medical Sciences, allocates $1,034,289 for the initial budget period and $994,229 for the second year, contingent on continued progress and funding availability. With this grant, eXoZymes’ cumulative non‑dilutive funding reaches $19.7 million.
The NIH‑funded program is scheduled to commence on July 1 2026 and will support three primary objectives: (1) advanced development of expression systems for cannabinoid cyclase enzymes, (2) strategic expansion of the range of cannabinoid analogs the company can produce, and (3) pre‑clinical evaluation of eXoZymes’ existing cannabinoid library using receptor‑binding assays. The work represents the second biosolution in the company’s pipeline after the NCT project, which is moving toward partnership and commercialization. eXoZymes employs a cell‑free platform designed to produce rare cannabinoids outside living cells at high purity.
The U.S. minor cannabinoids market is forecasted to increase from approximately $11.5 billion in 2023 to $33.3 billion by 2030, implying a compound annual growth rate of about 15%. Dr. Tyler Korman, co‑founder and Chief Scientific Officer of eXoZymes, will serve as the Principal Investigator on the grant, and the program includes a sub‑award to the laboratory of Dr. Vikram Shende at Occidental College.