Aaron L Schacht

[Aaron L Schacht @AaronLSchacht]

The next frontier in medicine may not be a pill or an injection — it may be a programmable living cell.

Engineered bacterial therapeutics have rapidly evolved from scientific curiosity to a legitimate therapeutic platform. Advances in synthetic biology, CRISPR engineering, genetic circuits, and microbiome science are enabling bacteria to:

• Deliver therapeutic molecules locally or systemically
• Modulate immune responses
• Compete with pathogens selectively
• Reprogram metabolism in real time
• Sense disease states

What makes this especially compelling is the potential for precision + persistence: living medicines that can reside at or near the site of target biology and continuously produce therapeutic effect rather than relying on repeated systemic dosing.

Early clinical and preclinical programs are already targeting:
• Inflammatory diseases
• Metabolic disorders
• Obesity
• Cancer
• Infectious disease
• Rare genetic disorders
• Antimicrobial resistance

The field still faces meaningful hurdles — regulatory frameworks, biosafety, manufacturability, colonization consistency, and long-term control of engineered systems. But the trajectory is increasingly clear:

We are moving from “microbiome modulation” toward true programmable biological therapeutics.

What is especially compelling is the ability to begin with clinically validated targets and proteinogenic molecules, rapidly design and optimize novel molecular payloads using AI, engineer stable high-secreting bacterial strains, and move quickly into in vivo studies. This Design-Build-Test-Learn exemplifies best-in-class synthetic biology.

Over the next decade, engineered bacteria may become an entirely new class of medicine — somewhere between biologics, cell therapy, and software.

At BiomEdit, Inc., we are excited to contribute to the growing momentum in this space. Our lead product is advancing toward conditional licensure, while our broader pipeline continues to expand across species (🐔 🐖 🐄 🐈 🐕) and payload classes including nanobodies, peptides, and enzymes.

[Aaron L Schacht @AaronLSchacht]

@grok @grok can you determine the patent life for the patents indicated in the press release?

[Aaron L Schacht @AaronLSchacht]

https://t.co/bW2ZMF0dUP

[Aaron L Schacht @AaronLSchacht]

@grok what's the significance of this?

[Aaron L Schacht @AaronLSchacht]

@grok @grok Given the precedent by BE-101 and the patents referenced, where else might BiomEdit apply their approach in either animal health or human health?

[Aaron L Schacht @AaronLSchacht]

https://t.co/BduCLppxTK

[Aaron L Schacht @AaronLSchacht]

@grok @grok what's the TAM for BE-101?

[Cell Host & Microbe @cellhostmicrobe]

Featured Article: Probiotics eradicate glioblastoma

E. coli Nissle produces bispecific engagers to recruit & instruct in situ-edited CAR macrophages. Microbe-guided CAR macrophages overcome glioblastoma antigenic heterogeneity & establish antitumor memory
https://t.co/ZPLpyuPk3E

[Aaron L Schacht @AaronLSchacht]

@j00ny369T Doesn’t it stand to reason that the one that is still around after 65 years might just be the best one made in that era and that there were plenty of weak ones that aren’t around to test?

[Aaron L Schacht @AaronLSchacht]

@hhlee @Michelle_Rozo @CultivariumFRX Henry, have you done anything to bring down the cost of plasmid DNA?

[Aaron L Schacht @AaronLSchacht]

Happy for the team at @Elanco !

[Finsee @Finsee_main]

$ELAN Q3 2025 earnings: Innovation engine firing on all cylinders, driving another significant guidance raise.

Elanco delivered a very strong third quarter, beating its own guidance across the board. Growth is accelerating, driven by the massive success of its new product launches. The company is generating strong cash flow, allowing it to pay down debt much faster than planned. This strong performance led management to raise its full-year financial targets for revenue, profit, and earnings per share for the second consecutive quarter.

🐂 𝗕𝘂𝗹𝗹 𝗰𝗮𝘀𝗲
The innovation portfolio is a resounding success, with revenue targets raised by $100 million. Products like Credelio Quattro are hitting blockbuster status in record time. Organic growth accelerated to an impressive 9%. Deleveraging is well ahead of schedule, with the net leverage ratio already at 3.7x, a level they didn't expect to reach until later. The company raised all key full-year guidance metrics.

🐻 𝗕𝗲𝗮𝗿 𝗰𝗮𝘀𝗲
While overall performance was strong, the Pet Health division saw a negative price impact of -1%, which needs monitoring. Operating expenses are also rising faster than previously guided as the company invests heavily in its new launches, which tempers some of the profit upside. The underlying "base" business appears to be flat to slightly down, meaning the company is highly dependent on new products for growth.

⚖️ 𝗩𝗲𝗿𝗱𝗶𝗰𝘁
The bull case is significantly more compelling. Elanco is demonstrating excellent execution on its core strategy. The outperformance of new products is more than offsetting any minor softness elsewhere, and the rapid improvement of the balance sheet de-risks the story considerably. This was a high-quality beat and raise.

***

𝟮. 𝗧𝗵𝗲𝗺𝗲𝘀, 𝗱𝗿𝗶𝘃𝗲𝗿𝘀, 𝗮𝗻𝗱 𝗰𝗼𝗻𝗰𝗲𝗿𝗻𝘀

🟢 𝗜𝗻𝗻𝗼𝘃𝗮𝘁𝗶𝗼𝗻 𝗢𝘂𝘁𝗽𝗲𝗿𝗳𝗼𝗿𝗺𝗮𝗻𝗰𝗲: This remains the central story and it has intensified. The full-year innovation revenue target was raised by another $100M at the midpoint. Key products are performing exceptionally well: Credelio Quattro reached $100M in sales in under 8 months, and Zenrelia sales nearly doubled from Q2.

🟢 𝗥𝗮𝗽𝗶𝗱 𝗗𝗲𝗹𝗲𝘃𝗲𝗿𝗮𝗴𝗶𝗻𝗴: This theme also accelerated. Net leverage fell sharply from 4.0x last quarter to 3.7x. The year-end target has been significantly improved, showing strong cash generation and disciplined capital management.

🟢 𝗚𝗿𝗼𝘀𝘀 𝗠𝗮𝗿𝗴𝗶𝗻 𝗥𝗲𝗰𝗼𝘃𝗲𝗿𝘆: A prior concern has flipped to a positive. After declining last quarter, adjusted gross margin *𝗶𝗻𝗰𝗿𝗲𝗮𝘀𝗲𝗱* by 90 basis points year-over-year. This was driven by higher sales volumes, showing good operating leverage.

🟢 𝗭𝗲𝗻𝗿𝗲𝗹𝗶𝗮 𝗟𝗮𝗯𝗲𝗹 𝗨𝗽𝗱𝗮𝘁𝗲: A key de-risking event from last quarter has materialized. The company confirmed the U.S. label was updated as hoped, which should increase veterinarian confidence and adoption.

🟡 𝗜𝗻𝗰𝗿𝗲𝗮𝘀𝗲𝗱 𝗢𝗽𝗲𝗿𝗮𝘁𝗶𝗻𝗴 𝗘𝘅𝗽𝗲𝗻𝘀𝗲𝘀: This concern remains. Management is spending more to support its successful product launches. They raised the full-year guidance for operating expense growth from 7% to 8%. While likely a good investment, it remains a headwind to near-term profit margins.

🟡 𝗕𝗮𝘀𝗲 𝗕𝘂𝘀𝗶𝗻𝗲𝘀𝘀 𝗦𝘁𝗮𝗯𝗶𝗹𝗶𝘁𝘆: This is an ongoing question. The CEO's comment about innovation outperformance on a "stabilizing base business" suggests the core portfolio is not growing. The company's overall health depends on new products continuing to more than offset this.

⚪ 𝗘𝗹𝗮𝗻𝗰𝗼 𝗔𝘀𝗰𝗲𝗻𝗱: This new productivity program for 2026 and beyond was mentioned again. More details are expected at the December Investor Day, making it a key future catalyst.

***

𝟯. 𝗠𝗮𝗶𝗻 𝗙𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹𝘀

Elanco beat the high end of its Q3 guidance on all key metrics.

* 𝗥𝗲𝘃𝗲𝗻𝘂𝗲: 💲𝟭,𝟭𝟯𝟳𝗠 vs. guidance of $1,080M-$1,110M.
* This represents 𝟵% organic constant currency growth, a strong acceleration.
* Pet Health grew 𝟴% organic.
* Farm Animal grew 𝟭𝟬% organic.

* 𝗔𝗱𝗷𝘂𝘀𝘁𝗲𝗱 𝗘𝗕𝗜𝗧𝗗𝗔: 💲𝟭𝟵𝟴𝗠 vs. guidance of $160M-$180M.

* 𝗔𝗱𝗷𝘂𝘀𝘁𝗲𝗱 𝗘𝗣𝗦: 💲𝟬.𝟭𝟵 vs. guidance of $0.12-$0.16.

* 𝗔𝗱𝗷𝘂𝘀𝘁𝗲𝗱 𝗚𝗿𝗼𝘀𝘀 𝗠𝗮𝗿𝗴𝗶𝗻: 𝟱𝟯.𝟭%, an improvement of 90 basis points from last year.

* 𝗡𝗲𝘁 𝗟𝗲𝘃𝗲𝗿𝗮𝗴𝗲: Dropped to 𝟯.𝟳𝘅 from 4.0x at the end of Q2.

***

𝟰. 𝗚𝘂𝗶𝗱𝗮𝗻𝗰𝗲

Management raised its full-year 2025 guidance across the board and introduced guidance for Q4. The full-year raise implies accelerating growth expectations.

🟢 𝗙𝘂𝗹𝗹-𝗬𝗲𝗮𝗿 𝟮𝟬𝟮𝟱 𝗥𝗲𝘃𝗲𝗻𝘂𝗲: Raised to 💲𝟰,𝟲𝟰𝟱𝗠 - 💲𝟰,𝟲𝟳𝟬𝗠.
* *Previously: $4,570M - $4,620M.*
* Implies organic growth of 𝟲.𝟬% - 𝟲.𝟱%, an acceleration from the prior 5%-6%.

🟢 𝗙𝘂𝗹𝗹-𝗬𝗲𝗮𝗿 𝟮𝟬𝟮𝟱 𝗔𝗱𝗷𝘂𝘀𝘁𝗲𝗱 𝗘𝗕𝗜𝗧𝗗𝗔: Raised to 💲𝟴𝟴𝟬𝗠 - 💲𝟵𝟬𝟬𝗠.
* *Previously: $850M - $890M.*

🟢 𝗙𝘂𝗹𝗹-𝗬𝗲𝗮𝗿 𝟮𝟬𝟮𝟱 𝗔𝗱𝗷𝘂𝘀𝘁𝗲𝗱 𝗘𝗣𝗦: Raised to 💲𝟬.𝟵𝟭 - 💲𝟬.𝟵𝟰.
* *Previously: $0.85 - $0.91.*

🟢 𝗬𝗲𝗮𝗿-𝗘𝗻𝗱 𝗡𝗲𝘁 𝗟𝗲𝘃𝗲𝗿𝗮𝗴𝗲 𝗧𝗮𝗿𝗴𝗲𝘁: Improved to 𝟯.𝟳𝘅 - 𝟯.𝟴𝘅.
* *Previously: 3.8x - 4.1x.*

⚪ 𝗤𝟰 𝟮𝟬𝟮𝟱 𝗚𝘂𝗶𝗱𝗮𝗻𝗰𝗲:
* 𝗥𝗲𝘃𝗲𝗻𝘂𝗲: $1,085M - $1,110M (implies 4-6% organic growth).
* 𝗔𝗱𝗷𝘂𝘀𝘁𝗲𝗱 𝗘𝗕𝗜𝗧𝗗𝗔: $168M - $188M.
* 𝗔𝗱𝗷𝘂𝘀𝘁𝗲𝗱 𝗘𝗣𝗦: $0.09 - $0.12.

***

𝟱. 𝗠𝗮𝗶𝗻 𝗾𝘂𝗲𝘀𝘁𝗶𝗼𝗻𝘀 𝗳𝗼𝗿 𝘁𝗵𝗲 𝗲𝗮𝗿𝗻𝗶𝗻𝗴𝘀 𝗰𝗮𝗹𝗹

𝟭. 𝗕𝗮𝘀𝗲 𝗕𝘂𝘀𝗶𝗻𝗲𝘀𝘀: Can you quantify the performance of the base portfolio excluding the new innovation products? What is your expectation for the base business heading into 2026?

𝟮. 𝗣𝗲𝘁 𝗛𝗲𝗮𝗹𝘁𝗵 𝗣𝗿𝗶𝗰𝗶𝗻𝗴: The Pet Health segment saw a -1% price contribution. Could you provide more detail on the specific mix shifts that caused this, and should we expect this dynamic to continue?

𝟯. 𝗢𝗽𝗘𝘅 𝗜𝗻𝘃𝗲𝘀𝘁𝗺𝗲𝗻𝘁𝘀: With the guide for operating expense growth now higher, what specific ROI are you seeing from these incremental investments, and how should we think about the balance between reinvesting for growth versus expanding margins in 2026?

𝟰. 𝗚𝗿𝗼𝘀𝘀 𝗠𝗮𝗿𝗴𝗶𝗻: How sustainable is the gross margin improvement seen this quarter, and how much was driven by volume leverage versus underlying productivity gains?

[Traded: Venture Capital @TradedVC]

BiomEdit, an animal health biotechnology company based in Greenfield, Indiana, raised $18.4M in Series B funding led by Anterra Capital, with backing from Nutreco, AgriZeroNZ, Elevate Ventures, and Betagro Ventures. Founded and led by CEO Aaron Schacht, the company focuses o...

[Aaron L Schacht @AaronLSchacht]

@SurgeBiswas Want to collaborate?

[Sahil Bloom @SahilBloom]

Remember that.

[Aaron L Schacht @AaronLSchacht]

Shane Steichen is a genius play caller with situational ethics. His choice to take the HC job at Colts was his best play call for himself, but he knew that no one becomes a HOF head coach in their first stint, and the lackluster Colts under Ballard/Irsay was a “no way to go but up” situation for him. Win and he’s the savior, lose and it’s their fault. He did just enough to preserve his next opportunity.

[Aaron L Schacht @AaronLSchacht]

@elonmuskADO Yes. You didnt ask for the solution.

[Aaron L Schacht @AaronLSchacht]

Can’t renew season tickets given the make up of the Colts top to bottom at this point. Not paying to watch them give the QB reps. #Colts

[Aaron L Schacht @AaronLSchacht]

Shane Steichen + Anthony Richardson is an experiment with no hypothesis to test. #Colts

[Aaron L Schacht @AaronLSchacht]

@ltbob77 @fulknA They are the same. Shank Reichen