Dyadic International Inc (NASDAQ:DYAI) reported second-quarter results after the bell Thursday that revealed growing R&D revenue as well as cash on hand, thanks to a series of new research collaborations.
Research and development revenue was roughly $524,000 in the three months ended June 30, 2020, compared to $391,000 in the same period of 2019. Dyadic currently has nine ongoing research collaborations, up from four last year, hence the increase.
The company’s cash position is also stronger now, with cash and equivalents increasing to $11.8 million from $4.8 million at the end of 2019. It's net loss shrunk to $2.65 million from $2.7 million over the same period.
"We have made terrific progress on multiple fronts in the second quarter — further advancing and strengthening our diverse and growing portfolio of opportunities by adding new top tier collaborations in both the animal and human health fields,” Dyadic CEO Mark Emalfarb said in the results statement.
“We are expanding our commercial reach in large and growing addressable markets while continuing to report exciting and new scientific data and progress. These developments reinforce the broad application potential of our C1 technology as well as some of its key attributes including high productivity and low cost of goods."
Lately, Dyadic has turned its C1 gene technology toward addressing the coronavirus (COVID-19) pandemic.
The company was selected by the Frederick National Laboratory to engineer its proprietary C1 cell lines to produce COVID-19 vaccine candidates, which will be utilized by the Vaccine Research Center (VRC) of the National Institute of Allergy and Infectious Diseases (NIAID), at the National Institutes of Health.
Additionally, the Israel Institute for Biologic Research (IIBR) is exploring the potential of Dyadic's C1 gene expression platform to express a recombinant SARS-CoV-2 vaccine candidate based on the receptor-binding domain of the virus’ spike protein. SARS-CoV-2 is the virus that causes the disease COVID-19.
The interim results of the mice trials using the C1 SARS-CoV-2 RBD vaccine candidate, as reported to Dyadic by IIBR, generated high levels of neutralizing antibodies. The company now expects IIBR to start hamster studies earlier than originally forecasted.
"In response to COVID-19, we have taken the necessary health and safety measures to protect our employees, lab teams and partners around the world who, for the most part, have been working remotely,” Emalfarb noted.
“We are fortunate that beyond those changes in the way we conduct our daily work, COVID-19 has had a minimal impact on the Company's ability to continue our progress,” he said,
To close out the quarter — on June 29, to be exact — Dyadic was added to the Russell 2000 and Russell 3000 indices, which the company said will provide added exposure to a wider investor base.
"The continued growth of our company has added to our visibility in the investment community with our recent inclusion in the Russell 2000 and 3000 indices providing us the opportunity to further broaden our shareholder base,” Dyadic chairman Michael Tarnok commented.
“Our management team remains highly energized by the significant number of opportunities available to us, supported by best-in-class scientific partners, our ongoing R&D collaborations funded partially or fully by our partners, and our active and diverse pipeline of potentially high return projects."
Dyadic also announced that it is filing a shelf registration statement with the Securities and Exchange Comission for future offerings of up to $50 million of Dyadic common stock.
Contact Andrew Kessel at [email protected]
Follow him on Twitter @andrew_kessel