“Dyadic continues to follow its business model by establishing research collaboration with large pharmaceuticals, institutions and biotechnology firms to validate C1 [gene expression] technology in biologics for human and animal health, in addition to the company's own in-house efforts,” Noble said in an analyste note published Friday.
The firm added: “Management continues to maintain costs in check with low cash-burn, while increasing the probability of success of C1 technology's potential in biologics market. The company recently added animal health segment via partnerships to its current portfolio of human biotherapeutics including vaccines, biosimilars, metabolites, and viral vectors.”
On Wednesday, the company reported R&D revenue of $454,507, R&D expenses of $102,000, general and administrative expenses of nearly $1.1 million and a net loss of $0.06 per share, figures Noble said “are in-line with our estimates.”
Going forward, the company is maintaining its revenue and earnings per share forecasts of $1.5 million with a $0.31 per share loss in 2019, $1.6 million with a $0.37 per share loss in 2020 and $1.7 million with a $0.39 loss in 2021.
“We continue to believe in C1 technology's potential, especially given the multiple projects underway in major segments of biologics market,” Noble said. “The stock has risen 206% [year to date} driven by recent positive developments. We think various partnerships and collaborations, in addition to in-house efforts, will generate data proving C1 expression system's value in biologics market, which is expected to grow to $1.2 billion in sales in 2022.”
The firm concluded: “In our opinion, the current stock price, despite recent gains, does not reflect the value of DYAI's portfolio. We are reiterating our Outperform rating and $9.00 price target.”
Dyadic, based in Jupiter, Florida, leverages its proprietary C1 technology — an industrially proven fungal gene expression technology — to help bring biologic vaccines, enzymes, proteins, biosimilars, and drugs to market faster and at a lower cost.
Contact Andrew Kessel at [email protected]
Follow him on Twitter @andrew_kessel