• The biotechnology platform company engages in the large-scale manufacture of low-cost enzymes and other proteins for markets in the United States and Europe
• It leverages its proprietary C1 expression system — a fungal expression technology for producing enzymes — to help bring biologic vaccines, therapeutic enzymes, proteins, biosimilars and drugs to market faster and at a lower cost
• Dyadic International closed out 2018 with nine funded proof-of-concept research collaborations and two new collaborations this year
What the company does
When Mark A Emalfarb started his company, Dyadic International Inc (OTCMKTS:DYAI), it was cashing in on a 1980s trend — supplying pumice to make stonewashed jeans. Forty years later, it is a trendy biotechnology platform company listed on the tech-laden Nasdaq.
Founded in 1979, the Jupiter, Florida, biotechnology platform company, engages in the large-scale manufacture of low-cost enzymes and other proteins for markets in the United States and Europe.
It leverages its proprietary C1 expression system — a fungal expression technology for producing enzymes — to help bring biologic vaccines, therapeutic enzymes, proteins, biosimilars and drugs to market faster and at a lower cost.
Dyadic started trading on the Nasdaq on April 17, 2019.
"Our listing on the Nasdaq is a major milestone for the company and a true indicator of our growth,” Dyadic International CEO Mark Emalfarb told Proactive Investors. “We believe that listing on the Nasdaq will enhance our visibility in the marketplace, increase the liquidity of our stock, broaden our shareholder base by attracting new investors and ultimately, build long-term shareholder value."
Deal with DuPont
Three years ago, Dyadic sold its industrial technology business to DuPont Inc’s (NYSE:DWDP) industrial biosciences business for $75 million in cash. According to the deal, DuPont granted Dyadic co-exclusive rights to the C1 technology for use in human and animal pharmaceutical applications, with the exclusive ability to enter into sub-license agreements.
DuPont now enjoys rights to utilize the C1 technology for use in pharmaceutical applications for which it will make royalty payments to Dyadic upon commercialization. DuPont cut the deal with Dyadic as it was launching its cellulosic ethanol business and was supplying enzymes to Jilin Province New Tianlong Industry Co.
Dyadic has conducted extensive enzyme research relationships in the biofuels area which support DuPont in the cellulosic space.
"We’ve grown the company through careful deals and through careful cash control," said Matthew Jones, chief commercial officer at Dyadic International. "We’ve also been able to announce previously our deal with DuPont about three years ago that has allowed us to grow the company, invest in R&D programs and collaborate with pharma."
Numerous research pacts
Dyadic International closed out 2018 with nine funded proof-of-concept research collaborations and two new collaborations this year.
“2018 was another year of continued progress with many favorable milestones,” said Emalfarb.
Dyadic has a research collaboration with Mitsubishi Tanabe Pharma Corp to express two therapeutic compounds using its C1 production platform. It also has one with Sanofi-Aventis Deutschland GmbH, to express the potential of its C1 technology to produce various types of therapeutic compounds for manufacturing protein-based vaccine and biologic drugs.
In 2018, the company also inked a proof of concept research collaboration to produce biologic vaccines for human and animal health with the Israel Institute of Biologic Research (IIBR), a top 20 pharmaceutical company and two top tier academic institutions, including the Structural Genomics Consortium, which is part of the University of Oxford and the Fraunhofer USA Center for Molecular Biotechnology.
“In the first quarter of 2019, we signed two new research collaboration agreements both with top 25 pharmaceutical companies,” said Emalfarb. “These programs demonstrate that the market and the industry are taking notice of Dyadic and the perceived capability of our C1 gene expression platform.”
In a what is promising, R&D revenue for the year ended December 31, 2018, increased to $1.29 million compared with $758,000 for the previous year.
“These results demonstrate that our business development efforts are bearing fruit,” said Emalfarb. “We continue to gain momentum and awareness within the biopharmaceutical industry regarding the potential for our C1 gene expression platform to disrupt the status quo in manufacturing biologic vaccines and drugs.”
As of December 31, 2018, Dyadic had cash and cash equivalents of $2.4 million compared with $5.8 million a year ago. Moreover, the value of investment grade securities, including accrued interest as of December 31, 2018 stood at $39.1 million.
Contact Uttara Choudhury at [email protected]