On Monday, Dyadic International (NASDAQ:DYAI) maintained its Buy rating and $6.00 stock price target from H.C. Wainwright, following the announcement of a strategic development and commercialization partnership with Proliant Health and Biologicals (PHB). The collaboration, unveiled on June 28, focuses on the production of animal-free recombinant albumin products using Dyadic's proprietary Dapibus technology.
The partnership enables PHB to utilize Dyadic’s Dapibus filamentous fungal microbial technology, initially targeting the production of recombinant human serum albumin products. Dapibus is engineered for the rapid development and large-scale manufacturing of cost-effective proteins and biologics for non-pharmaceutical sectors, including food, nutrition, and wellness.
PHB, recognized for its leadership in bovine serum albumin production, aims to meet the growing demand in the diagnostics and life sciences industries for alternative protein sources. The use of Dyadic’s technology positions PHB to compete by offering recombinant protein products that rival traditional sources in both value and quality.
Under the terms of the agreement, Dyadic is set to receive an upfront milestone payment of $1.5 million and will also share in the profits from the sale of the animal-free recombinant albumin products manufactured using the Dapibus technology. This partnership marks Dyadic's second strategic alliance for the use of Dapibus.
The first product launch from this collaboration is anticipated in the first half of 2025, with Dyadic expecting to begin generating revenue streams from the partnership in the second half of 2025. Projections suggest that Dyadic could sign additional partnerships for both Dapibus and its C1 technology platforms, potentially resulting in annual revenues of $20 million to $25 million by the year 2028.
H.C. Wainwright's positive outlook on Dyadic International is based on the versatility of the company’s protein production technologies, which are deemed to have significant potential in creating near-term revenue streams, a value proposition that is currently believed to be underrecognized in the market.
In other recent news, Dyadic International has entered into a partnership with Proliant Health and Biologicals (PHB) to develop and commercialize animal-free recombinant albumin products, a significant development in the $6 billion serum albumin market.
The partnership will leverage Dyadic's innovative microbial protein production platforms and PHB's market presence, aiming to cater to the growing demand for alternative protein sources in the diagnostic and life sciences industries. The first product launch is anticipated in the first half of 2025.
In addition, Dyadic's shareholders have demonstrated confidence in the company's strategic direction by approving board nominees Jack L. Kaye and Patrick Lucy, and the company's independent auditor, Crowe LLP, at the 2024 Annual Meeting. The company has also reported promising Phase 1 trial results for its COVID-19 vaccine candidate and a bird flu vaccine candidate in collaboration with ViroVax.
Furthermore, despite a decrease in research and development revenue and a slight increase in net loss, Dyadic secured a $6 million convertible note financing, positioning it for potential near-term revenue growth. The company's C1 technology is gaining global recognition, and its collaborations with top pharmaceutical companies are noteworthy. These are among the recent developments in the company.
InvestingPro Insights
As Dyadic International (NASDAQ:DYAI) secures a promising partnership with Proliant Health and Biologicals, investors are closely monitoring the company's financial health and market performance. According to InvestingPro data, Dyadic holds a market capitalization of approximately $42.48 million USD.
Despite facing revenue declines in the last twelve months as of Q1 2024, with a -30.82% change, the company's gross profit margin remains relatively strong at 38.24%. Notably, Dyadic's cash position is robust, with liquid assets that surpass short-term obligations, a reassuring sign for stakeholders considering the company's strategic investments and partnerships.
InvestingPro Tips highlight that while the stock has seen a downturn over the last month, with a -28.71% one-month price total return, Dyadic's balance sheet strength is evident as it holds more cash than debt. This could provide the company with the flexibility to navigate market fluctuations and invest in its proprietary Dapibus technology.
Moreover, it is worth noting that the company does not pay dividends, which may be a factor for income-focused investors to consider. For those interested in exploring further insights, InvestingPro offers a range of additional tips for Dyadic International, which can be accessed with a special offer using the coupon code PRONEWS24 for up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.