Wednesday, April 1, 2020

Dyadic International Inc. (DYAI)

Q4 2019: Constructive 2019 Leading to a Promising Year Ahead

Dyadic International Inc. is a biotechnology company developing a proprietary C1 expression platform to express and manufacture biologic products. The C1 technology is part of a fungi expression system, which utilizes inexpensive substrates yielding a high level of production. Dyadic is currently improving and optimizing the production of biological products in a C1 expression system. The company’s partnership portfolio with pharmaceutical and institutions includes Zapi Project, Israel Institute for Biological Research, Mitsubishi Tanabe Pharma, Sanofi-Aventis covering the production of a diverse range of biologics, such as monoclonal antibodies, bispecific and Fc-fusion proteins. Dyadic also established a sub-licensing agreement with an Australian based drug development and contract manufacturing firm, Luina Bio, to utilize C1 platform for the development and commercialization of biological products to prevent and treat animal diseases. Company’s C1 bioenergy business was sold to Dupond Industrial Biosciences (DuPont) for $75 mm in 2015 granting the company the rights to use C1 platform in biopharma applications.

Ahu Demir, Senior Research Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

2019 financial results were in line with expectations. Dyadic International Inc. (DYAI) released the full year of 2019 financial and operational results. The company reported $10.1 million in total expenses. The net loss was $8.3 million or $0.31 per share compared to a net loss of $5.7 million or $0.21 per share in 2018. Our F2019 estimates were for a net loss of $8.8 million and EPS of ($0.31). For F2020 and F2021, we forecast revenue of $1.8 mm, and $1.9 mm, and EPS of ($0.32) and ($0.34), respectively.

Not a month passes without adding another partnership to the pipeline. Dyadic’s business development flow continues by establishing research collaboration with large pharmaceuticals, institutions and biotechnology firms to validate C1 technology in biologics for human and animal health. The company has maintained a low cash-burn while increasing the probability of success of C1 technology’s potential in...

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report.  NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision.