Dyadic International Inc (NASDAQ:DYAI) reported its 2019 full-year results after the bell Monday, revealing that the company saw a jump in research and development revenue and doubled its cash on hand.
R&D revenue came in at nearly $1.7 million, a 29% increase year-over-year from $1.3 million in 2018. Cash on hand, meanwhile, doubled to $4.8 million from $2.4 million, and the carrying value of its investment-grade securities, including interest, dipped to $31.2 million from $39.1 million.
The company's net loss incresased 45% to $8.3 million, $0.31 per share, from $5.7 million, $0.21 per share, a year earlier. The dip was due in large part to increases in its general and administrative expenses by $1 million and R&D expenses by $600,000, in addition to an income tax benefit of $1 million last year.
"I am pleased to report that 2019 was another successful year for Dyadic as we achieved several important scientific and business milestones and expanded our global presence,” CEO Mark Emalfarb said in a statement. “While still early in 2020, we are seeing continued momentum.”
On the scientific front, Dyadic entered into six new proof of concept research collaborations in 2019, utilizing its proprietary C1 gene expression platform to express different types of biologic vaccines and drugs for human and animal health, the company said, in addition to two new research licenses.
The company’s collaborators include the Serum Institute of India, two leading animal health companies, and three top tier human health companies, as well as an expanded collaboration with the Eu-sponsored initiative, ZAPI.
In addition, the company extended its research and development contract through June 2022 with VTT Technical Research Centre of Finland Ltd. The data gathered through this collaboration exceeded initial expectations and produced record levels of productivity for several different types of proteins, the company said.
"Supporting our growth strategy is our robust scientific data, solid financial position with approximately $36 million in cash and investment-grade securities and ongoing R&D collaborations funded by our partners,” Emalfarb said. “Our visibility in the investment community has significantly increased as well. In 2019, our shares were up-listed to the Nasdaq, and we joined the Russell Microcap Index further reinforcing the continued growth of our company.”
That growth has continued in 2020, Emalfarb said.
“Dyadic's pipeline of opportunities is getting larger and more diverse,” Emalfarb said. “Last week, we entered into a nonexclusive research license with WuXi Biologics, a leading global Contract Development Manufacturing Organization (CDMO) and another fully funded feasibility study with a leading animal health company. We are now working with three of the top four animal health companies."
Now, the company has turned its C1 platform toward the coronavirus.
"To assist in the global fight against the COVID-19 pandemic, we are working with the Israel Institute for Biological Research, Ufovax, a spin-off vaccine company of Scripps Research, as well as a group of coronavirus experts from Erasmus Medical Center, Utrecht University, and the University of Veterinary Medicine Hannover, along with a clinical contract research organization, CR20,” Emalfarb said. “We expect to use C1 to express a growing number of potential coronavirus vaccine and antibody candidates for a number of different parties.
"Our involvement in these COVID-19 initiatives further highlights the broad application potential of our C1 technology by helping to immediately address the coronavirus outbreak, be better prepared for future infectious diseases, pandemic and epidemic outbreaks, and advance biopharmaceutical manufacturing to help speed up development, lower the cost and improve the performance of biologic vaccines and drugs to make healthcare more accessible and affordable to patients globally."
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