Dyadic Worldwide , Inc. (NASDAQ:) reported on its Q2 2024 earnings name that regardless of a lower in income in comparison with the identical interval final 12 months, the corporate is actively pursuing development by the commercialization of its merchandise and expertise. Dyadic’s C1 expertise and Dapibus protein expression platform are on the forefront of this development, with purposes starting from different proteins to bio-industrial enzymes and prescription drugs.
The corporate has initiated over 14 absolutely funded initiatives within the human well being sector and has accomplished a Part 1 examine for a C1-produced protein. Dyadic can also be making strides within the animal well being sector, specializing in recombinant protein vaccines for pandemic response.
Key Takeaways
- Dyadic Worldwide reported a Q2 2024 income lower however is optimistic about future income streams from its C1 expertise and Dapibus protein expression platform.
- The corporate has fashioned partnerships for product growth and is searching for international market enlargement in enzymes and non-animal dairy merchandise.
- Dyadic has accomplished a Part 1 human examine and is creating vaccine candidates, together with one for H5 fowl flu.
- Financials present a lower in income to $386,000 but in addition a lowered loss from operations, with money and investments at $10.1 million as of June 30, 2024.
Firm Outlook
- Dyadic plans to attain vital milestones and a number of income streams within the subsequent 24 months.
- The corporate is specializing in the commercialization of merchandise, expertise licensing, collaborations, and pipeline development.
- Dyadic is exploring alternatives within the non-animal dairy merchandise market.
Bearish Highlights
- Income for Q2 2024 has decreased in comparison with the earlier 12 months, primarily as a result of winding down of analysis collaborations from 2023.
Bullish Highlights
- Dyadic’s C1 expertise and Dapibus protein expression platform are gaining recognition in a number of sectors.
- The corporate has initiated over 14 absolutely funded initiatives within the human well being pharmaceutical section.
- Dyadic has efficiently accomplished its first in-human Part 1 examine for a C1-produced protein.
Misses
- The corporate’s income for Q2 2024 was decrease than the identical interval final 12 months, at roughly $386,000.
Q&A Highlights
- Dyadic mentioned the potential of manufacturing recombinant transferrin and human serum albumin, aiming to supply cost-effective merchandise to the market.
- The corporate sees the recombinant C1 produced merchandise as a brand new market alternative for Proliant, which presently produces bovine albumin.
In abstract, Dyadic Worldwide is strategically positioning itself to leverage its C1 expertise and Dapibus protein expression platform throughout numerous sectors. Whereas the corporate confronted a income dip in Q2 2024, its various pipeline and ongoing initiatives recommend a possible for development within the close to future. With a give attention to innovation and commercialization, Dyadic is poised to capitalize on present and rising alternatives within the different protein, animal well being, and human well being sectors.
InvestingPro Insights
As Dyadic Worldwide, Inc. (DYAI) navigates by a difficult monetary panorama with a decline in income, the corporate’s strategic strikes in the direction of commercialization and expertise licensing are essential. InvestingPro information and ideas present further context to the monetary well being and potential of the corporate as of Q1 2024.
InvestingPro Knowledge highlights a market capitalization of $39.47 million, underscoring the small-cap nature of the corporate. The Worth / E-book ratio stands at 8.68, which can recommend a premium valuation in comparison with the corporate’s e book worth. That is significantly notable provided that the corporate shouldn’t be worthwhile during the last twelve months, with a detrimental P/E ratio of -4.85. Regardless of the income lower of 30.82% during the last twelve months, Dyadic’s gross revenue margin stays comparatively sturdy at 38.24%, indicating a level of value effectivity within the firm’s manufacturing processes.
From the attitude of InvestingPro Suggestions, two key factors emerge. Firstly, the corporate holds extra cash than debt on its stability sheet, which supplies a degree of monetary stability and suppleness. That is bolstered by the truth that Dyadic’s liquid property exceed short-term obligations, suggesting that the corporate is in a great place to handle its short-term liabilities. Nonetheless, it is necessary for buyers to notice that Dyadic doesn’t pay a dividend, which can affect funding choices for these searching for income-generating shares.
For these concerned about a deeper dive, there are further InvestingPro Suggestions accessible on https://www.investing.com/professional/DYAI, which might additional inform funding methods. The guidelines embrace insights on the corporate’s buying and selling at a excessive Worth / E-book a number of and its income development trajectory, amongst others.
In abstract, whereas Dyadic Worldwide faces challenges with profitability and income development, its sturdy stability sheet and value administration could present a basis for future development because it continues to leverage its C1 expertise and Dapibus protein expression platform.
Full transcript – Dyadic Worldwide Inc (DYAI) Q2 2024:
Operator: Good night and welcome to the Dyadic Worldwide’s Q2 2024 Convention Name. Presently, all members are in a listen-only mode. Following the administration’s ready remarks, there will probably be a quick question-and-answer session. As a reminder, this convention name is being recorded at the moment, August thirteenth, 2024. I’d now like to show the decision over to Ms. Ping Rawson, Dyadic’s Chief Monetary Officer. Please go forward.
Ping Rawson: Thanks. Good night and welcome everybody to Dyadic Worldwide’s Q2 2024 convention name. I hope you’ve gotten had the chance to assessment Dyadic’s press releases asserting monetary outcomes for the quarter ended June 30, 2024. You might entry our launch and Kind 10-Q beneath the Traders’ part of the corporate’s web site at dyadic.com. On at the moment’s name, our President and CEO, Mark Emalfarb and our Chief Working Officer, Joe Hazelton will give a assessment of our second quarter 2024 enterprise and company highlights, together with a quick abstract of our latest analysis and enterprise growth efforts. I’ll observe with a assessment of our monetary ends in extra element. And our Chairman, Patrick Lucy will present a commentary on the strategic route of the enterprise on the finish of the decision. We’ll then maintain a quick question-and-answer session. Right now, I want to inform you that sure commentary made on this convention name perhaps take into account forward-looking statements, which contain dangers and uncertainties and different elements that might trigger Dyadic’s precise outcomes, efficiency, scientific or in any other case, or achievements to be materially totally different from these expressed or implied by these forward-looking statements. Dyadic expressly disclaims any obligation to supply updates to its forward-looking statements, whether or not due to new data, future occasions or in any other case. Members are directed to the danger elements set forth in Dyadic’s report filed with the SEC. It’s now my pleasure to go the decision to our CEO, Mark Emalfarb. Mark?
Mark Emalfarb: Thanks, Ping. Welcome everybody and thanks for becoming a member of Dyadic’s Q2 2024 convention name. We’re excited to debate our enterprise technique centered on near-term licensing and product candidates has strategically positioned Dyadic to swiftly reap the benefits of present and upcoming alternatives. Over the following 24 months, we’re specializing in attaining a number of income streams and vital milestones by the commercialization of merchandise, expertise licensing, absolutely funded collaborations and advancing our pipeline, all geared toward enhancing shareholder worth. Our C1 expertise continues to garner widespread recognition of its outstanding velocity and productiveness, incomes accolades not solely throughout the nation, however world wide. Esteem voices from academia and business, corresponding to world-renowned vaccinology pioneer, Dr. Rino Rappuoli, authorities businesses just like the U.S. FDA, BARDA, the NAH and Nimble, non-profit organizations and two prime 10 pharmaceutical collaborators are recognizing C1’s groundbreaking potential. In the meantime, our Dapibus protein expression platform is already gaining vital momentum and most significantly, producing income and the speedy evolving different protein and bio-industrial sectors. We’re dedicated to leveraging our microbial protein manufacturing platforms C1 and Dapibus to develop recombinant proteins, enzymes, antigens, and antibodies throughout our core sectors; different proteins and on human well being. These efforts are anticipated to open up new income streams, driving substantial worth creation for Dyadic and our companions in each the pharmaceutical and non-pharmaceutical markets. I’ll now flip the decision over to our Chief Working Officer, Joe Hazelton, to supply an replace on our enterprise outcomes for the second quarter. Joe?
Joseph Hazelton: Thanks, Mark. Within the second quarter, our enterprise growth efforts within the different protein sector are persevering with to bear fruit, showcasing the potential of our microbial platforms. As a part of our technique to drive near-term income we now have focused on figuring out and producing high-value, high-volume recombinant protein merchandise that may shortly and effectively be commercialized. Our not too long ago introduced partnership for widespread serum albumin is a chief instance unlocking quite a few alternatives inside the roughly $6 billion serum albumin market. This single product provides various commercialization prospects throughout numerous segments. For example, pharmaceutical grade serum albumin has potential as a illness therapy, performs an important position in vaccine growth, serves as a provider protein for therapeutics, and is an ordinary reagent in analysis and growth. Moreover, recombinant albumin is efficacious in diagnostics, cell and gene processing, and cell tradition media, significantly for rising animal muscle cells for lab grown meat. The latest completion of Certificates of Evaluation for a recombinant human and bovine albumin confirms the analytical equivalents to presently commercialize research-grade merchandise, making them doubtlessly viable for commercialization in R&D. Now we have additionally accomplished third-party of recombinant bovine albumin produced by our microbial platforms as a element of cell tradition media. The outcomes demonstrated its comparable effectiveness to animal-derived rovobinalbumin [ph] in rising muscle cells for the classy meat business, additional validating its potential on this quickly increasing market. To unlock the potential of our recombinant albumin merchandise, we now have executed a strategic growth and commercialization partnership with Proliant Well being & Biologics, a number one provider of purified proteins of the diagnostic, vitamin, and cell tradition markets with a worldwide buyer base. This collaboration will initially give attention to bringing recombinant human serum albumin to market with the primary product launch anticipated within the first half of 2025. Below the phrases of the settlement, Dyadic will obtain a complete cost of $1.5 million and we anticipate to start out receiving recurring income in 2025 from our share of the income generated by Proliant from the sale of animal-free recombinant albumin merchandise made utilizing Dyadic filamentous fungal microbial platforms. A portion of the upfront cost will assist the expertise switch and commercialization efforts following profitable scale-up validation. We have already acquired a $500,000 cost and we anticipate a second $500,000 milestone cost within the late third or early fourth quarter following product testing, and anticipate the ultimate milestone cost upon scale-up validation projected for the fourth quarter of this 12 months. We’re actively working to speed up and broaden the scope of commercialization alternatives inside the different protein sector, significantly for non-food purposes. Just lately, we accomplished the event of DNase-1 and the issuance of its Certificates of Evaluation confirms its analytical comparability to current business merchandise. We have begun sampling this product and are aggressively searching for companions and clients within the international marketplace for DNases, ligases, and all RNA polymerases, a market that is valued at over $809 million in 2023, projected to develop at a CAGR of 10.63% from 2024 to 2030. As well as, we have developed a recombinant transferrin pressure at considerably excessive productiveness, sparking curiosity from international cell tradition media — the worldwide cell tradition media market, which was valued at $4.73 billion in 2023 and is anticipated to develop at a compound annual development price of 12.54% from 2024 to 2030. Transferrin is a key element of serum-free cell tradition media with recombinant proteins and development elements comprising nearly all of the prices, over 95% of that are pushed by albumin and transferrin. Notably, greater than 70% of the transferrin utilized in cell tradition media at the moment is produced recombinantly, making it a very engaging product for Dyadic. Our objective is to expedite the analytical and software testing within the third quarter and to start sampling as quickly as attainable. In different efforts to increase our presence in cell tradition media, we have additionally begun sampling our companion Biftek’s patent-pending cost-reducing animal-free development medium for which we’ll earn a share of their web gross sales. Outdoors recombinant cell tradition merchandise, we consider recombinant non-animal dairy merchandise supply Dyadic the potential for speedy commercialization alternatives. The worldwide animal-free dairy merchandise market was valued at over $26 billion in 2022 and is projected to succeed in greater than $75 billion by 2032. Right this moment’s animal-free dairy merchandise are produced by way of precision microbial fermentation expertise, a market pushed by evolving client preferences and issues over well being points related to conventional cow milk, corresponding to lactose intolerance and allergy symptoms. Regardless of the present excessive value of animal-free dairy, this impediment aligns with our experience in producing massive portions of cost-effective recombinant proteins utilizing our microbial expression platforms. We’re making regular progress with our partnership to develop non-animal dairy enzymes, which was established lower than a 12 months in the past. Whereas we encountered a delay in incomes the success charge resulting from a longer-than-expected validation, we consider we now have now met our targets for this venture and anticipate to obtain successful charge of $500,000 within the fourth quarter of this 12 months. Within the second quarter, curiosity in our non-animal alpha-lactalbumin product has resulted in a nonexclusive joint growth settlement with a prime 10 international dairy firm to create a food-grade alpha-lactalbumin product. We’re additionally in lively discussions with three different different dairy protein firms concerned about commercializing this product. To additional increase our non-animal dairy pipeline, we’re — we plan to start sampling within the aggressive beta-lactoglobulin and lactoferrin markets. We’re in ongoing discussions to develop a recombinant lactoferrin meals grade product with the objective of finalizing a growth and commercialization settlement within the third quarter. Over the past 12 months, we now have been actively creating a number of bio-industrial grade enzymes with purposes throughout a number of industries, together with vitamin, biofuels, and biorefining. In a partnership with Fermbox, we now have efficiently developed a cellulosic enzyme for the biofuel business, which is now present process testing by potential clients. Moreover, Dyadic has created enzymes initially focused on the pulp and paper business with promising potential to be used within the biogas and biofuel sectors as effectively. Our objective is to be in commercializing these merchandise inside the subsequent 12 months, which we consider will drive income development sooner or later. Whereas the choice protein section is our main focus for near-term development and income, we stay deeply dedicated to the long-term potential of animal and human well being pharmaceutical segments. The profitable completion of our first in-human Part 1 examine for a C1 produced protein has generated vital curiosity from academia, authorities, business, and non-profit organizations. For the reason that starting of the 12 months, we have initiated over 14 absolutely funded human well being vaccine and antibody initiatives, together with two with prime 10 pharmaceutical firms. These third-party funded applications cowl a variety of illness areas and additional showcase Dyadic’s capacity to provide each commonplace and sophisticated molecules. Our C1 platform has efficiently expressed a number of potential infectious illness vaccine antigens, together with these for HPV, HIV, a number of RSV antigens, and Plasmodium parasitic ailments. Moreover, within the second quarter, Dyadic delivered three efficiently expressed monoclonal antibodies, or mAbs, for analysis as neutralizing brokers for infectious illness with two extra mAbs in growth, considered one of which is for our prime 10 pharmaceutical firm. Because the H5 fowl flu continues to unfold globally, affecting wild birds, poultry, and even U.S. dairy cows, there was a rising curiosity from human and animal pharmaceutical firms, particularly with the latest human circumstances reported amongst U.S. dairy and poultry employees. In response, Dyadic commissioned an unbiased vaccine skilled to evaluate its adjuvanted H5 Clade 2.3.3.4.b A/Astrakhan avian influenza or fowl flu, ferritin nanoparticle human vaccine candidate, developed in collaboration with ViroVax LLC. The skilled evaluation supplied a constructive outlook on the preliminary animal research, highlighting each the energy of the C1 vaccine manufacturing platform and the H5 avian influenza or fowl flu ferritin nanoparticle vaccine candidate’s potential to generate sturdy neutralizing antibodies to be used in people in addition to probably in poultry, cattle, and different animals. Earlier within the second quarter, Dyadic and ViroVax introduced preclinical animal testing for our H5 avian influenza or fowl flu ferritin nanoparticle vaccine candidate, which demonstrated a strong immune response in rabbits. The potential H5 fowl flu recombinant protein human vaccine candidate combines Dyadic’s C1 single-step ferritin nanoparticle antigen manufacturing with ViroVax’ novel antigen and adjuvant. This promising candidate has been introduced to a number of authorities businesses, together with BARDA TechWatch, NIH, and the White Home Workplace of Pandemic Preparedness and Response Coverage. Two further U.S. authorities displays are presently scheduled for subsequent week. Moreover, the preliminary preclinical animal research point out that the C1 produced H5 avian influenza or fowl flu, ferritin nanoparticle vaccine candidate generates excessive ranges of neutralizing antibodies in opposition to the three main circulating fowl flu viruses. This has elevated the potential curiosity within the animal well being sector, significantly to be used as a vaccine in poultry and cattle to fight the continuing avian influenza outbreak. We’re actively offering samples of the C1-produced fowl flu recombinant ferritin nanoparticle vaccine antigen to numerous human and animal pharmaceutical firms for additional analysis. Alongside the continued progress and enlargement of our partnership with Phibro Animal Well being (NASDAQ:), we’re capitalizing on the heightened consciousness introduced by the fowl flu outbreak within the animal well being section by intensifying our enterprise growth efforts in animal well being, initially specializing in recombinant protein vaccines for a pandemic response and preparedness. We stay laser-focused on evaluating product alternatives with monetary rigor, making certain we absolutely seize the worth of Dyadic’s expertise and experience. We’re dedicated to driving near-term income development within the different protein section whereas concurrently constructing mid to long-term worth within the animal and human well being markets. With that, I will flip the decision over to our CFO, Ping Rawson, to cowl our financials. Ping?
Ping Rawson: Thanks, Joe. Thanks, everybody, for becoming a member of our name at the moment. I’ll now go over our key monetary outcomes for the quarter ended June 30, 2024 in additional element. You’ll find further data in our earnings press launch and Kind 10-Q, which we filed earlier at the moment. Income for the quarter ended June 30, 2024, decreased to roughly $386,000 in comparison with $837,000 for a similar interval a 12 months in the past. The lower in income was as a result of winding down of a number of massive analysis collaborations carried out in 2023. Price of analysis and growth income for the quarter ended June 30, 2024 decreased to roughly $302,000 in comparison with $793,000 for a similar interval a 12 months in the past. The lower adopted the winding down of a number of massive analysis collaborations. Analysis and growth bills for the quarter ended June 30, 2024 decreased to roughly $516,000 on in comparison with $918,000 for a similar interval a 12 months in the past. The lower primarily mirrored the winding down of actions associated to the corporate’s Part 1 scientific trial of DYAI-100 and several other inside analysis initiatives. G&A bills for the second quarter of 2024 elevated to roughly $1.608 million in comparison with $1.403 million for a similar interval a 12 months in the past. The rise was resulting from will increase in share-based compensation bills of $84,000, authorized bills of $81,000, enterprise growth and Investor Relations bills of $60,000, and different will increase, partially offset by decreases in administration incentives of $36,000 and insurance coverage bills. Loss from operations for the quarter ended June 30, 2024 decreased to $2.043 million in comparison with $2.290 million for a similar interval a 12 months in the past. Internet loss for the quarter ended June 30, 2024, was roughly $2.045 million or $0.07 per share in comparison with a web lack of $2.153 million or $0.07 per share for a similar interval a 12 months in the past. On March 8, 2024, the corporate issued an mixture principal quantity of 6 million of 8% senior tier convertible promissory notes due March 8, 2027 in a personal placement. The convertible notes have a conversion worth of $1.79 with no warrants. Through the second quarter, $200,000 of the notes had been transformed into the corporate’s widespread shares. As of June 30, 2024, we now have money and investment-grade securities, together with accrued curiosity of $10.1 million in comparison with $7.3 million as of December thirty first, 2023. In July, the corporate acquired an preliminary cost of $500,000 pursuant to our license and growth settlement with Proliant. We anticipate our money burn for the second half of 2024 will probably be roughly $3 million. I’ll now flip the decision over to Dyadic’s Chairman, Patrick Lucy, for closing remarks. Patrick?
Patrick Lucy: Thanks, Ping. First, I want to thanks all for becoming a member of the decision at the moment and your continued assist of Dyadic. A number of months in the past, we redefined the Dyadic company technique to give attention to alternatives to deploy the Dyadic C1 and Dapibus platform protein manufacturing applied sciences to generate vital near-term income and near-term recurring income, whereas additionally advancing our efforts in mid to long-term worth creation. This technique is targeted on three distinct market sectors, together with different proteins, animal well being, and human well being. In at the moment’s name, you have heard that technique enjoying out with executed agreements and vital exercise in every of the sectors, with a specific emphasis on the choice protein sector. The transaction with Proliant is a good instance of that focus. We consider the avian influenza vaccine candidate presents Dyadic with a major alternative and we’re presently searching for pathways to advance the candidate by non-dilutive approaches. We’ll proceed to replace buyers on progress within the coming months. I am extraordinarily happy with our administration group and our Board for his or her focus and dedication to our firm’s technique and look ahead to asserting further transactions sooner or later. With that, I’ll ask the operator to start our Q&A session. Our CEO, Mark Emalfarb, and our administration group will reply to your questions. Every caller will probably be allowed one query and one follow-up query to supply all callers a chance to take part. If time permits, the operator will permit further questions from these of you — from those that have already spoken. Operator?
Operator: Thanks. We’ll now conduct a question-and-answer session. [Operator Instructions] The primary query comes from John Vandermosten with Zacks. Please proceed.
John Vandermosten: Thanks. Congratulations on the brand new alpha-lactalbumin deal. I had a few questions on that. I assume, to start with, what is the dimension of that market? And who’re the purchasers for the product?
Mark Emalfarb: Joe, do you need to reply that?
Joseph Hazelton: Certain. And John, thanks for the query. The market — the alpha-lactalbumin market is roughly a $700 million market. Now, that features milk-derived merchandise. The recombinant section is smaller. I haven’t got an ideal quantity for that for you, however I’d say it is most likely in that $30 million to $40 million vary presently. It is clearly increasing as persons are wanting into producing this recombinantly, just like what they’ve carried out for HMOs and different merchandise on this house. So, with that being stated, that is the important market potential. The purchasers are every thing from the big dairy firms just like the Danones, Nestlé to only about — effectively, and likewise lots of the newer firms in precision fermentation. So, we now have, clearly, a number of alternatives, however it’s primarily the food-grade dairy firms that we’re .
John Vandermosten: Okay. And I assume that may be Dapibus, proper? That is the Dapibus–?
Joseph Hazelton: Sure. You are appropriate.
John Vandermosten: Okay. After which simply one other query on that theme. Is there a transparent pathway right here to revenues outlined within the JDA with the dairy firm sort of as you’ve gotten with the albumin take care of Proliant?
Joseph Hazelton: Sure. Based mostly, clearly, on the efficiency of the pressure and hitting sure business targets, there are milestones and royalty funds related to the event.
John Vandermosten: Okay. Thanks Joe.
Mark Emalfarb: Joe, I believe perhaps you may increase on the transferrin alternative as effectively as a result of I believe that is an enormous alternative for us and I believe explaining that a bit bit could be useful.
Joseph Hazelton: Certain Mark. The transferrin alternative is just like that of alpha-lactalbumin in that it is a very high-growth marketplace for recombinant merchandise, provided that it is a very excessive worth level. So, the typical value of a kilogram of transferrin is roughly $400,000 to $500,000 and that’s clearly, animal-derived. Recombinant manufacturing is rising, however it’s a difficult element to provide. So, having the ability to produce it on the titers that we’re at the moment, we consider that we will considerably cut back that value. And as I discussed within the portion of the decision, nearly all of cell tradition media prices, and that is the media that you just develop not simply animal muscle cells, however it’s additionally used to develop CHO cells for manufacturing of different monoclonal antibodies and different pharmaceutical brokers, with any cell tradition media element can develop mainly a mammalian cells. So, it has a number of makes use of, a number of offtakes throughout the segments. The variations is that albumin and transferrin make up 95% of the price of cell tradition media. So, should you have a look at, let’s simply say, a liter of media that you just’d use to develop both animal muscle cells for lab-grown meats otherwise you’d use it to develop CHO cells for making a monoclonal, 95% of these prices are from albumin and transferrin and the rest is from development elements and another high-value targets in there as effectively, which had been we’re , however that is the actual alternative with transferrin. And given in that house, 70% of the utilization at the moment is already recombinant and it is trying to improve as a result of, once more, it is a type of markets the place it is an especially costly product to derive naturally as a result of there’s not lots of it in mainly mammalian blood. So, it is a lot simpler to provide recombinantly and doubtlessly extra regulatorily acceptable as effectively. So, I do consider that is a major alternative that is already producing curiosity. And clearly, we now have continued growth we have to do.
John Vandermosten: Nice. Thanks for the additional coloration.
Operator: Thanks. [Operator Instructions]
Mark Emalfarb: Pat, is there something you need to add whereas we’re ready to see if anybody else is asking in?
Patrick Lucy: No, I believe I’ve coated it within the remarks.
Operator: We do have a follow-up from John Vandermosten with Zacks. Please proceed.
John Vandermosten: Thanks. Sort of an even bigger image query for you on C1. As we have a look at sort of how the expression system has developed over time, how has it modified during the last 5 years?
Mark Emalfarb: That is a great query. It is modified from I assume, from darkness to gentle or night time to day. And what I imply by that’s, once we transitioned the C1 cell line from the commercial sector into biopharmaceuticals, there was lots of work we needed to do to make it in order that it not solely produced lots of one thing, however producing it in a steady kind. And as you recognize, we have knocked out a complete now of 14 or 15 totally different genes with proteases along with different background proteins in order that we will produce excessive ranges of low-cost proteins which can be steady. After which most significantly, though we had sure animal information previous to doing all of that, we have expanded the animal information from rats to lambs to chickens to all types of different issues, hamsters. However most significantly, with the DYAI-100 SARS-CoV-2 RBD Booster, Part 1 trial, we have now demonstrated for the primary time ever a protein produced from our C1 cell line and for that matter, filamentous fungal cells can be utilized safely and induce an immune response. And we did that each on the excessive and low dose, and we bought good neutralizing antibodies and mobile immunity. So, that has opened up the doorways very broad and it appears to be rising even wider as we develop increasingly antigens for the vaccine. So, from a recombinant protein vaccine platform, we consider that we now have essentially the most environment friendly, quickest strategy to make the biggest amount of lowest value antigens for vaccines that may be launched sooner. As a result of ultimately, we do not have viruses to take away like T cells, antiviral clearance or the bocavirus cells. So, it is not solely quicker, faster, and cheaper, however you may launch it sooner. We consider we will rework our recombinant protein manufacturing of antigens for human and animal well being. So, hopefully, that provides you an concept of the great progress we now have made. And now the validation, as we have talked about, from academia, business, authorities, nonprofits, you title it and nearly on each continent on this planet. We’re beginning to get recognition. We’re getting increasingly credibility. The expertise is getting extra broadly relevant. And as Joe identified, we have produced issues like HPV, which as you recognize, is a large market alternative and gross sales at the moment within the billions and billions of {dollars}. We have additionally produced a number of variations of an RSV antigen and quite a lot of others as effectively.
John Vandermosten: Nice. Thanks for that. Do you’ve gotten time for yet another from me? I do not need to dissipate all my questions.
Mark Emalfarb: Sure. No, we’re pleased to reply the questions and supply data that is useful.
John Vandermosten: Sure. So, only one different factor on Proliant, and Joe and I had an opportunity to speak about this earlier than, however I do not know if I requested this query about simply the relative margin on the C1 produced product versus what the — what Proliant is already doing proper now with the animal-based albumin. Do you get a way of what the relative attractiveness is of the recombinant C1 versus their product proper now when it comes to margins?
Mark Emalfarb: Properly, earlier than Joe solutions that, simply to make clear, they’re making bovine albumin, not human albumin proper now. So, this can be a complete new market alternative — on the human aspect. However Joe, you may go ahead.
Joseph Hazelton: No, truly, that is precisely what I used to be going to say. It is an increasing buyer marketplace for them as a result of they do not have a — effectively, they do not have a recombinant product at the moment. and so they haven’t got human serum albumin, they solely work within the bovine protein house on the present time. So, this can be a good enlargement. The use case, although, for human serum albumin and bovine albumin in sure cases, is identical for issues like cell tradition or medical system coding. These are issues that you possibly can doubtlessly use different product relying on what the necessity of the applying is. There would be sure the reason why you’d need to use human versus bovine and vice versa, lots of it’s pushed by value. However so far as the margin attainment, I actually do not need to converse for them, however clearly, we need to look to have the ability to present an economical product to the market when it comes to a recombinant human serum albumin for any software. And clearly, there’s room for enchancment within the worth factors in that house. However I do not need to predict clearly what the potential margins for them might doubtlessly be or what they’re taking pictures at, on the present time.
Mark Emalfarb: And simply so as to add, John, to that, take into accout, with the energy of our upstream processing, Proliant additionally brings within the energy of downstream processing when it comes to scale in and value. And naturally, they’ve entry to the market as a result of they have been promoting on this marketplace for years. So, we now have fast market entry by them.
John Vandermosten: Nice. Thanks.
Operator: [Operator Instructions] There aren’t any additional questions in queue at the moment. I want to flip the decision again over to Dyadic’s CEO, Mr. Mark Emalfarb. Please proceed.
Mark Emalfarb: Thanks. As Pat and Joe have indicated, Dyadic is absolutely dedicated to driving near-term income and development by pushing the boundaries of innovation and accelerating commercialization. We’re increasing the usage of our C1 and Dapibus microbial protein manufacturing platforms throughout our three core sectors; different proteins and animal, and human well being. That is an extremely thrilling time in Dyadic’s historical past, and I consider we’re uniquely positioned to swiftly capitalize on each present and rising alternatives. I need to thanks for becoming a member of us at the moment’s second quarter 2024 convention name. We look ahead to updating you on our continued business and scientific progress throughout our subsequent name. Keep tuned for extra thrilling developments from Dyadic.
Operator: The convention has now concluded. Thanks for attending at the moment’s presentation. You might now disconnect your strains at the moment.
This text was generated with the assist of AI and reviewed by an editor. For extra data see our T&C.
