SCYNEXIS, Inc. (SCYX): PESTLE Analysis [Nov-2025 Updated]

You need to know that SCYNEXIS, Inc. isn't the company it was a year ago. The 2024 deal with GlaxoSmithKline (GSK) wasn't just a licensing agreement; it was a fundamental pivot, turning SCYX from a cash-burning commercial biotech into a focused R&D and royalty play. This shift means their 2025 risk profile is now less about sales execution and more about hitting regulatory milestones that unlock up to $503 million in future payments, plus the near-term security of the $90 million upfront cash. Honestly, the operating environment is defintely different now. So, how does this new, leaner model stand up to the macro forces of politics, economics, and technology?

SCYNEXIS, Inc. (SCYX) - PESTLE Analysis: Political factors

US Inflation Reduction Act (IRA) drug price negotiation risk is low for Ibrexafungerp due to its new drug status.

The political risk from the US Inflation Reduction Act (IRA) drug price negotiation program is defintely low for SCYNEXIS's anchor product, Ibrexafungerp (commercial name, BREXAFEMME). The IRA targets older, high-cost drugs that have been on the market for a long time without generic competition.

Ibrexafungerp, a small molecule drug, was first approved by the US Food and Drug Administration (FDA) in June 2021 for vulvovaginal candidiasis (VVC), with a second indication following in November 2022. The IRA's negotiation provisions for small-molecule drugs only begin after at least nine years on the market. This means Ibrexafungerp will not be eligible for negotiation until at least 2030, giving SCYNEXIS and its partner, GSK, a significant window of pricing stability for the commercial product.

This long runway is a clear, positive political buffer.

Stable US Food and Drug Administration (FDA) regulatory pathways for novel anti-infectives remain a high priority.

The US government, through the FDA, continues to prioritize and create flexible regulatory pathways for novel anti-infectives (antibacterials and antifungals) to combat the growing threat of antimicrobial resistance (AMR). This is a direct political tailwind for SCYNEXIS's entire fungerp pipeline.

In June 2025, the FDA finalized guidance on developing new antibacterial therapies, signaling a willingness to be flexible for drugs targeting serious, life-threatening infections with unmet medical needs. This includes the use of the Limited Population Pathway for Antibacterial and Antifungal Drugs (LPAD), which allows for approval based on smaller, shorter, or fewer clinical trials for treatments intended for small, seriously ill patient populations. This pathway is especially relevant for SCYNEXIS's second-generation candidate, SCY-247, which is currently in Phase 1 development and targets multidrug-resistant fungal pathogens.

The political will to fight AMR translates directly to faster, less expensive regulatory processes for small biotech firms.

Global government funding for anti-fungal resistance research provides a positive tailwind.

The escalating global health crisis of anti-fungal resistance (AFR) has spurred significant government and public-private funding, creating a strong financial incentive for SCYNEXIS's research and development (R&D) efforts.

SCYNEXIS has directly benefited from this political priority in 2025. For instance, the company secured a five-year federal grant from the National Institutes of Health's National Institute of Allergy and Infectious Diseases (NIAID) to support its research into next-generation antifungal compounds. This grant is expected to provide approximately $7 million annually to advance the fungerp platform.

Other major global initiatives also underline this trend:

• The UK's FAILSAFE project directed over £2.8 million (approximately $3.4 million) in one year to support 135 researchers worldwide by October 2025, specifically for antifungal resistance solutions.
• An international collaboration received €1 million in January 2025 from the Joint Programming Initiative on Antimicrobial Resistance (JPIAMR) to tackle AFR.
• GSK, SCYNEXIS's partner, pledged £45 million to the Fleming Initiative, with a key focus on accelerating the discovery of new drugs to combat fungal infections.

Political pressure on drug supply chains increases scrutiny on manufacturing partners.

The rising political focus on supply chain security and 'reshoring' of pharmaceutical manufacturing poses a near-term risk, particularly for small biotechs dependent on international contract manufacturing organizations (CMOs).

The US government is using tariffs and proposed legislation to force diversification away from major foreign suppliers, especially in China and India. In 2025, new US tariffs of at least 25% were announced on pharmaceutical imports, with tariffs on Active Pharmaceutical Ingredients (APIs) from China and India reaching up to 25% and 20%, respectively. This directly increases input costs and complexity.

This scrutiny is not theoretical; a key risk factor is the regulatory fallout from manufacturing issues at third-party sites. For example, a Complete Response Letter (CRL) was issued to another company in June 2024 due to concerns discovered during an inspection of a third-party manufacturing facility, which highlights the FDA's heightened focus on supply chain quality and compliance. SCYNEXIS must ensure its manufacturing partners, particularly for the active pharmaceutical ingredient (API) for Ibrexafungerp, are politically and regulatorily compliant to avoid costly disruptions. The political environment demands a robust 'China+1' strategy.

SCYNEXIS, Inc. (SCYX) - PESTLE Analysis: Economic factors

You have a clear picture of SCYNEXIS's economic pivot: it's a structural shift from a commercial-stage biotech with high burn to a royalty-driven research and development (R&D) company. This move, solidified by the GSK partnership, drastically changes the risk and liquidity profile, but it also ties the company's long-term value to the success of its partner and the broader economic climate for future financing.

The company's near-term liquidity is defintely secured, but the cost of capital remains a real headwind for its core R&D work on the second-generation antifungal, SCY-247. Here's the quick math on the economic factors shaping the business in late 2025.

SCYNEXIS received an upfront payment of $90 million from GSK, securing near-term 2025 liquidity.

The original license agreement with GlaxoSmithKline (GSK) in 2023 provided a foundational liquidity boost with an upfront payment of $90.0 million. This was a major, non-dilutive capital event. In the 2025 fiscal year, SCYNEXIS received a further significant one-time payment of $24.8 million from GSK in the fourth quarter, which resolved a disagreement over the Phase 3 MARIO study termination.

This Q4 2025 cash influx, combined with the elimination of future trial expenditures, is crucial. It extends the company's projected cash runway to greater than two years (past Q4 2027), providing the necessary bridge funding to advance its new lead asset, SCY-247.

Future revenue is tied to up to $503 million in potential regulatory and sales milestone payments from GSK.

SCYNEXIS's future revenue is almost entirely milestone- and royalty-based, tied to the commercial success of ibrexafungerp (Brexafemme) under GSK's management. The total potential value of the original license agreement's future performance-based milestone payments remains up to $503 million.

This milestone structure is now supplemented by a new, more specific potential revenue stream following the anticipated relaunch of Brexafemme. SCYNEXIS is eligible to receive up to approximately $146 million in annual net sales milestones from GSK, plus tiered royalties.

The company's 2025 operating expenses are defintely reduced by shifting commercialization costs to GSK.

The strategic move to license ibrexafungerp to GSK fundamentally changed the company's cost structure by offloading all commercial and most late-stage development expenses. This shift is clearly visible in the Q3 2025 financials.

For the three months ended September 30, 2025, Research and Development (R&D) expenses dropped to $5.5 million, a significant decrease of 33% compared to $8.1 million in the same period in 2024. Total operating expenses for Q3 2025 were $8.7 million, down from $11.0 million in Q3 2024.

This is a major win for cash management. The company now focuses its spending on the preclinical and Phase 1/2 development of SCY-247, a much lower-cost, earlier-stage program.

High inflation and interest rates continue to pressure the cost of capital for future R&D financing.

While SCYNEXIS has a two-year cash runway, the broader macroeconomic environment still pressures the cost of any future R&D financing, especially for a small-cap biotech. In late 2025, the U.S. Federal Reserve's target range for the Federal Funds Rate remains elevated at 3.75%-4.00% following the October 2025 cut, keeping the Bank Prime Loan rate at 7.00%.

Annual Consumer Price Index (CPI) inflation was 3.0% in September 2025. This persistent inflation, even if easing, keeps the cost of goods and services high, including the specialized labor and materials needed for clinical trials. This means any new debt or equity financing will be more expensive and dilutive than in a low-rate environment. You can't ignore the cost of money.

The company is now a royalty play, reducing direct exposure to US payer pricing pressures.

The deal with GSK effectively transforms SCYNEXIS into a 'royalty play' (a company whose primary revenue comes from royalties on a partner's sales), which is a huge de-risking move from a commercial standpoint. SCYNEXIS no longer bears the direct financial risk of commercial launch, sales force management, or, critically, the complex and contentious negotiations with US payers (insurance companies and government programs) over drug pricing.

The company's revenue from Brexafemme is now a percentage of net sales-specifically, royalties in the low to mid single digit range-meaning GSK absorbs the direct commercial and pricing risk. This structure allows SCYNEXIS to focus its limited capital and expertise entirely on its R&D pipeline, particularly the development of SCY-247 for invasive candidiasis.

• Eliminates US commercial spend.
• Transfers pricing risk to GSK.
• Focuses capital on SCY-247 development.
• Secures a multi-year cash runway.

The next concrete step for you is to model the sensitivity of SCYNEXIS's valuation to a 20% delay in the Brexafemme relaunch by GSK, and how that impacts the timing of the $146 million annual sales milestones. Owner: Portfolio Manager.

SCYNEXIS, Inc. (SCYX) - PESTLE Analysis: Social factors

You're looking at SCYNEXIS, Inc. (SCYX) and its drug Brexafemme, and the social landscape is a double-edged sword: massive, growing patient need on one side, and a critical reliance on a major partner's commercial muscle on the other. The core takeaway is that the public health crisis of fungal resistance creates a clear social mandate for novel drugs, but the immediate commercial success hinges entirely on GSK's ability to execute a successful relaunch in 2026 following the NDA transfer in late 2025.

Growing public health crisis of multi-drug resistant fungal infections drives demand for new treatments

Honestly, the rise of multi-drug resistant (MDR) fungal infections isn't just a medical problem; it's a looming public health crisis that directly fuels demand for SCYNEXIS's novel fungerps. Invasive candidiasis (IC), a severe manifestation, is shockingly common and deadly. Globally, candidemia, the most frequent form of IC, accounts for approximately 700,000 cases annually. Worse, mortality rates for IC remain persistently high, ranging from 40% to 55%.

The social pressure on healthcare systems to find alternatives to older azoles and echinocandins is immense, especially as non-albicans Candida species (NAC), like C. glabrata, become more prevalent and resistant. For example, a recent study showed that infections caused by C. glabrata had a significantly higher 30-day all-cause mortality rate of 30.6% compared to 14.6% for C. albicans. This escalating resistance profile makes Brexafemme, a first-in-class triterpenoid antifungal, a socially necessary product.

• IC mortality is up to 55%.
• C. glabrata mortality is 30.6%.
• New oral antifungals are a public health priority.

High patient need for convenient, oral treatments for recurrent vulvovaginal candidiasis (VVC)

The patient experience with recurrent vulvovaginal candidiasis (RVVC) is a significant social driver. VVC is incredibly common, and for the subset of women with RVVC (four or more episodes per year), the condition severely impacts quality of life. The traditional oral treatment, Fluconazole, often fails to prevent recurrence long-term, with relapse frequently occurring after maintenance therapy is stopped.

Brexafemme offers a non-azole, oral treatment option for VVC and for reducing the incidence of recurrent VVC, directly addressing this unmet need for a convenient, resistance-resilient therapy. The convenience of an oral pill, compared to prolonged topical treatments or an intravenous (IV) regimen, is a huge social advantage that drives patient preference and adherence. Simply put, people want a pill, not a cream or an IV drip.

Increased awareness of invasive candidiasis mortality rates supports premium pricing for effective drugs

The stark reality of high mortality rates for invasive fungal infections creates a willingness among payers and healthcare providers to accept premium pricing for truly effective, novel treatments. When a disease kills between 40% and 55% of those infected, the cost of an effective drug is weighed against the cost of a death-plus the extensive, expensive hospital stay that precedes it.

This social factor of high mortality justifies the development and eventual premium pricing of new antifungal classes like the fungerps. While Brexafemme's development focus has shifted away from IC (with the termination of the MARIO study), the underlying social awareness of the crisis validates the entire fungerp platform and SCYNEXIS's pipeline, including the second-generation candidate, SCY-247, which aims for IC treatment. Here's the quick math on the IC burden:

Adoption of Brexafemme (Ibrexafungerp) is now dependent on GSK's extensive global sales force and marketing

For a small biotech like SCYNEXIS, transitioning the commercialization of Brexafemme to a global pharmaceutical giant like GSK is the most critical social factor for adoption. SCYNEXIS completed the transfer of the New Drug Application (NDA) to GSK in November 2025. This immediately shifts the burden and opportunity for market penetration to GSK's extensive global sales force and marketing machine.

Adoption is now tied to GSK's ability to successfully relaunch the product in the U.S. market, which they anticipate discussing with the FDA in 2026. SCYNEXIS's financial future for this asset is now a royalty stream, with the company standing to receive up to approximately $146 million in annual net sales milestones, plus royalties in the low-to-mid single-digit range. This is a massive opportunity, but it's defintely out of SCYNEXIS's direct control. The social reach of Brexafemme-how many women actually get access to it-is now a function of GSK's commercial strategy.

SCYNEXIS, Inc. (SCYX) - PESTLE Analysis: Technological factors

Ibrexafungerp is a first-in-class triterpenoid, offering a novel mechanism of action against fungal resistance.

The core technological advantage for SCYNEXIS lies in its proprietary class of triterpenoid antifungals, known as fungerps, with Ibrexafungerp being the first approved agent. This drug is a first-in-class compound that inhibits the biosynthesis of $\beta$-(1,3)-D-glucan, a critical component of the fungal cell wall. This mechanism is similar to the established echinocandins, but the key technological differentiator is its distinct binding site on the glucan synthase enzyme. This difference is defintely important because it translates into very limited cross-resistance, meaning Ibrexafungerp remains potent against strains that have developed resistance to existing echinocandins and azoles.

This novel mechanism addresses a major unmet need highlighted by the World Health Organization (WHO), which has called for new antifungal solutions against the rising threat of drug-resistant infections.

The drug's broad-spectrum activity against Candida and Aspergillus provides a significant market advantage.

Ibrexafungerp's broad-spectrum activity is a substantial technological edge, positioning it for use in both community and hospital settings for a range of difficult-to-treat infections. The drug has demonstrated potent in vitro and in vivo activity against the two most clinically relevant fungal genera: Candida and Aspergillus species. This includes notorious multidrug-resistant pathogens like Candida auris and azole- and echinocandin-resistant strains.

The ability to target such a wide array of resistant fungi with a single agent simplifies treatment protocols and offers a critical option where standard therapies have failed. For instance, data from the Phase 3 CARES study showed positive clinical outcomes in 89% of patients with Candida auris infections.

Continued investment in new formulation technologies could expand Ibrexafungerp's use cases beyond oral and IV.

The fungerp class inherently offers the flexibility of both oral and intravenous (IV) formulations, which is a major technological leap over many current hospital-based antifungals that are IV-only. This dual formulation supports a crucial 'step-down' strategy, allowing patients with serious invasive fungal infections to transition from IV treatment in the hospital to oral therapy at home, leveraging the drug's oral bioavailability and high tissue distribution.

The most significant technological investment is now focused on the next-generation fungerp candidate, SCY-247. This second-generation compound, also being developed with both oral and IV formulations, is aimed at treating and preventing invasive fungal infections, including Candida auris. The company reported positive Phase 1 Single Ascending Dose/Multiple Ascending Dose (SAD/MAD) data for the oral formulation of SCY-247 in Q3 2025, with plans to commence a Phase 2 study in invasive candidiasis soon after.

Clinical trial data generation for invasive fungal infections is key to unlocking the largest milestone payments.

The financial realization of this technology is tied directly to clinical development milestones, which saw a major pivot in the 2025 fiscal year. The Phase 3 MARIO study for invasive candidiasis was a primary driver for substantial payments from the licensing agreement with GlaxoSmithKline (GSK).

However, in a key strategic shift, SCYNEXIS announced on October 15, 2025, that it had resolved a disagreement with GSK related to the MARIO study. This resolution resulted in a one-time payment of $24.8 million from GSK to SCYNEXIS, which the company will receive in Q4 2025. This payment effectively replaces the previous disputed milestones for the MARIO study, which were up to $30 million for resumption/continuation and an additional $7.35 million for completion.

Here's the quick math on the 2025 financial impact of this technological/clinical pivot:

The company is now terminating the MARIO study and focusing its development efforts on the next-generation candidate, SCY-247, which has a projected cash runway into Q4 2026, supported by the $24.8 million payment.

• Pivot to SCY-247: Focus on the second-generation fungerp.
• Clinical Data: Phase 1 SAD/MAD data for SCY-247 reported in Q3 2025.
• Cash Position: Resolution payment boosts cash runway into Q4 2026.

SCYNEXIS, Inc. (SCYX) - PESTLE Analysis: Legal factors

Ibrexafungerp has strong patent protection extending until at least 2036, securing long-term exclusivity.

The core of SCYNEXIS's value proposition, the antifungal compound Ibrexafungerp, is protected by a multi-layered intellectual property (IP) portfolio. This patent protection is a critical legal barrier against generic competition, which is essential for maximizing long-term commercial returns. The composition of matter patent (U.S. Patent No. 8,188,085) for Ibrexafungerp is currently set to expire in 2030, but the company anticipates an extension under the Drug Price Competition and Patent Term Restoration Act of 1984 (Hatch-Waxman Act) into 2035.

Beyond the primary patent, additional patents covering the citrate salt formulation, which is used in the approved product BREXAFEMME, expire in 2035. Furthermore, patents covering specific uses of Ibrexafungerp in the treatment or prevention of fungal infections extend the protection out to 2038. This layered approach is a standard, defintely necessary strategy in biopharma to ensure a long market runway.

• Composition of Matter Patent (U.S. Patent No. 8,188,085) Expiry: Projected into 2035 (with Hatch-Waxman extension).
• Citrate Salt Formulation Patents Expiry: 2035.
• Method of Use Patents Expiry: 2038.

The licensing agreement with GSK transfers legal and commercial liability for the US and global markets.

The exclusive license agreement with GSK, signed in March 2023 and amended in October 2025, fundamentally shifts the legal and commercial burden for Ibrexafungerp (including BREXAFEMME) to GSK across the US and the majority of global markets (the GSK Territory). SCYNEXIS retains rights in the Greater China region and a few other countries. This transfer means GSK now assumes the primary legal risk and cost associated with commercialization, including product liability and regulatory compliance in those territories, which is a major de-risking event for SCYNEXIS.

The transfer of the BREXAFEMME New Drug Application (NDA) to GSK is progressing and is expected to be complete by the end of 2025. This physical transfer of the regulatory dossier is the final step in handing over legal responsibility for the product's market status. A recent legal resolution in October 2025 regarding the Phase 3 MARIO study disagreement resulted in SCYNEXIS receiving a one-time payment of $22 million from GSK, plus an additional $2.3 million for study wind-down activities, formalizing the end of SCYNEXIS's financial and legal obligations for that specific trial.

Compliance with global Good Manufacturing Practices (GMP) is crucial for all third-party manufacturing partners.

As a non-commercial-stage company in the US (post-GSK deal), SCYNEXIS relies heavily on third-party contract manufacturing organizations (CMOs). The legal requirement for compliance with current Good Manufacturing Practices (cGMP) remains paramount, even with third parties. A past product recall of BREXAFEMME due to potential cross-contamination with a beta-lactam substance at a CMO facility underscores the tangible legal and regulatory risk associated with manufacturing oversight.

While GSK now handles the commercial manufacturing and supply chain in the licensed territory, SCYNEXIS still bears the ultimate responsibility for cGMP adherence for its other compounds, like SCY-247, and for the supply agreements related to Ibrexafungerp in its non-licensed territories. For the three months ended March 31, 2025, the company's research and development expense saw a decrease of $1.6 million in chemistry, manufacturing, and controls (CMC) expense compared to the same period in 2024, reflecting a shift in manufacturing-related costs following the GSK agreement.

Ongoing monitoring of intellectual property (IP) challenges from generic manufacturers is a constant risk.

Despite the strong patent life extending to 2038, the legal threat from generic manufacturers is an ongoing reality. The Hatch-Waxman Act provides a mechanism for generic companies to challenge patents before expiration, typically by filing an Abbreviated New Drug Application (ANDA) with a Paragraph IV certification. Ibrexafungerp's patents are open to such challenges starting from June 1, 2030.

The company must budget for and actively defend its IP globally. For instance, several oppositions have already been filed against BREXAFEMME's European patents, which, if successful, could shorten the market exclusivity period and accelerate generic entry. This constant legal defense work is costly and time-consuming, diverting resources that could otherwise be used for drug development. Here's the quick math: defending a single patent infringement case can easily cost millions of dollars, so this is defintely a material risk. The estimated generic launch date, based on current IP, is June 10, 2039.

SCYNEXIS, Inc. (SCYX) - PESTLE Analysis: Environmental factors

Adherence to stringent Environmental, Social, and Governance (ESG) standards is increasingly required by institutional investors like BlackRock.

As a smaller reporting company, SCYNEXIS faces intense, though often indirect, pressure from major institutional investors like BlackRock to demonstrate a clear strategy for managing environmental risks. While BlackRock's updated 2025 proxy voting guidelines emphasize the need for climate-related disclosures consistent with frameworks like TCFD (Task Force on Climate-related Financial Disclosures) or ISSB (International Sustainability Standards Board) standards, their voting behavior is a reality check. BlackRock's support for environmental and social shareholder proposals globally dipped to less than 2% in the 2025 proxy season, down from a high of over 40% in 2021.

This means your focus shouldn't be on broad, abstract commitments but on material, financially relevant risks. BlackRock defines material risks as those drivers in your business model that have an environmental dependency or impact. For SCYNEXIS, which is focused on R&D and relies on third-party manufacturing, this translates directly to the environmental performance of your Contract Manufacturing Organizations (CMOs) and the secure handling of chemical waste from your research. You must show how you're managing the environmental risk of your supply chain, not just your small corporate footprint. Honesty, the market is tired of greenwashing; they want to see concrete risk mitigation.

Waste disposal regulations for pharmaceutical manufacturing and R&D activities must be strictly followed.

The regulatory landscape for pharmaceutical waste in the US is getting defintely tighter, and compliance costs are rising. The US Environmental Protection Agency (EPA) is pushing for full state-level adoption and enforcement of the Hazardous Waste Pharmaceutical Rule (40 CFR Part 266 Subpart P) in 2025. This rule creates a nationwide ban on the sewering (flushing down the drain) of all hazardous waste pharmaceuticals, regardless of generator size.

For a biotech company like SCYNEXIS, which generates R&D waste and manages small batches of final product, this means ensuring your third-party labs and CMOs are fully aligned with Subpart P. As of August 2025, 14 states had not yet adopted Subpart P, which creates a complex, state-by-state compliance patchwork that your waste management partners must navigate. This is a major operational risk if your waste vendors are not up to date, potentially leading to significant EPA fines under the Resource Conservation and Recovery Act (RCRA).

Here's the quick math on the regulatory environment:

Supply chain vulnerability to climate events or geopolitical instability affects the sourcing of raw materials.

Your reliance on a global, outsourced supply chain for Active Pharmaceutical Ingredients (APIs) and raw materials is your biggest environmental and operational risk. Geopolitical tensions and climate-related factory shutdowns are directly contributing to drug shortages. As of early 2025, the American Society of Health-System Pharmacists reported more than 323 active shortages, the highest in a decade, affecting critical drug classes.

The core vulnerability is geographic concentration:

• Nearly 65% to 70% of APIs used globally are sourced from China and India as of 2025.
• Climate events like floods and extreme heat can shut down manufacturing sites, as seen when Hurricane Maria affected over 500 medical product facilities in Puerto Rico.
• Disruptions can affect your cash flow; tying up capital in excess inventory to mitigate risk is difficult when you had only $37.9 million in cash, cash equivalents and investments as of September 30, 2025.

You need to map your API and key raw material suppliers to specific climate risk zones and geopolitical instability hot spots. A single severe weather event in Asia could halt production of a critical component for your SCY-247 compound, creating a costly delay in your Phase 1/Phase 2 clinical timeline.

Energy consumption and carbon footprint of third-party contract manufacturing organizations (CMOs) are under review.

For a company that relies on CMOs, your environmental footprint is primarily Scope 3 emissions-the indirect emissions from your value chain. In the life sciences industry, the majority of emissions are Scope 3. The pharmaceutical sector's global emissions are estimated at about 52 megatonne CO2 equivalent per year, excluding these indirect energy-related emissions.

The trend is clear: leading life sciences companies are now considering the emission footprint of suppliers in their selection criteria, and some are requiring their suppliers to set Science Based Targets for decarbonization by 2025. Your CMOs are a liability if they are not actively decarbonizing.

This is a financial issue, not just an ethical one. Your previous manufacturing issues, like the beta-lactam cross-contamination risk that led to a clinical hold on ibrexafungerp in 2024, show that vendor oversight is already a critical factor. Now, that oversight must extend to environmental performance. You need to ask your CMOs for their carbon intensity scores and their plans for adopting green chemistry or renewable energy, which some CMOs are already targeting, like one aiming for 70% renewable energy use by 2027. Poor environmental performance at a CMO signals weak operational controls, and that's a risk investors won't forgive.