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Post by JHam on May 13, 2019 13:48:21 GMT
Dan from Tailwinds Research, the same group that follows CATS, turned me on to this company. I'm just starting to dig into this one, but so far I really like what I see. I'll do my best to summarize below. Share price: $4.29 Market cap: $117M o/s: 26.7M Cash on hand: $40M *No debt* CEO owns about 30% of the o/s Here is what they do: 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. They recently up-listed to the NASDAQ and the pps has been on a tear, up from $1.40 not too long ago. Normally that would turn me off, but like with CATS, I believe things are only getting started here. CATS was in the $6s when I first started buying it, after it screamed up from the $1/2 dollar range, now it is at $17.40. Of course I can't predict that the same thing will happen with DYAI, but I don't think the train has yet officially left the station. My thesis here is... - They are a partnership machine. Already several partnerships with many more on the way - Have stressed that they plan to use cash from future partnerships to fund R&D/corporate expenses - CEO even said on the call that there is a high potential of future partnerships that will bring in "a ton of cash" - Their revenue stream is increasing - I think they are headed for an eventual buy out. The CEO even said so much on the call. Maybe by Sanofi since they have been acquiring innovative biopharmas focused on gene expression enhancers/vaccines like DYAI (they acquired Protein Sciences for $650M 2 years ago) - Even if they don't get bought out they have a sound strategy for inking licensing agreements allowing them to rake in revenues from royalties - They have more than 100 NDAs Here are a few links: dyadic.comDyadic Reports First Quarter 2019 Financial Results and Recent Developments
1Q Earnings callMilestone for Dyadic International as it begins trading on NasdaqDyadic International posts higher revenue from R&D, new sublicensing collaborations
I opened up a small position today. Would love to bounce back some thoughts with this one and hear any pro/con feedback.
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Post by JHam on May 13, 2019 14:44:50 GMT
That is some earnings call. The recent (last week) deal with Serum Institute in India, while it won't produce any royalty or milestone payments for a while, it has the potential to be big down the road. IN the meantime, the CEO stressed about 15 times on the call how they are in talks with several bio pharmas about deals at the moment. And that they want to ink a deal with a major bio pharma with tons of upfront cash this year. Sounds pumpy, but if you listen you'll understand where he is coming from.
This company is still very much off the radar.
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Post by JHam on May 13, 2019 14:55:50 GMT
Here's a snapshot of their target markets: Global vaccine market : $100B by 2025 Global biological drug market: $278B by 2020 Global insulin market: $42B by 2019 Biosimilar market: $26B by 2020
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Post by selluwud on May 13, 2019 15:12:47 GMT
JHam, Because today the market is down due to the trade issues, it seems a good day to look at some values available from the undue influence of that effect. Without doing an in depth study and using your due diligence (thanks J) I've bought in for what seems to be a good opportunity. We'll see.
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Post by JHam on May 13, 2019 15:20:29 GMT
JHam, Because today the market is down due to the trade issues, it seems a good day to look at some values available from the undue influence of that effect. Without doing an in depth study and using your due diligence (thanks J) I've bought in for what seems to be a good opportunity. We'll see. Just don't blame me when you lose money
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Post by JHam on May 13, 2019 15:26:43 GMT
While I do think they are trying to get a major deal done with a big biopharma in the next 2 years, I am OK with holding onto this one as deals they have already made begin to produce. Which could take some time. If you have time check out that earnings call. They have definitely put their money where their mouth is and even surpassed expectations/guidance since 2017. I'll probably continue adding as long as it remains in the single digits or unless something changes.
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Post by selluwud on May 13, 2019 17:04:59 GMT
JHam, Because today the market is down due to the trade issues, it seems a good day to look at some values available from the undue influence of that effect. Without doing an in depth study and using your due diligence (thanks J) I've bought in for what seems to be a good opportunity. We'll see. Just don't blame me when you lose money I would never do that, nobody to blame but my self as it is all a risk when you dabble in the market.
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Post by magnus123 on May 13, 2019 18:58:58 GMT
I bought some shares here too today. I had it already on my radar, because of Tailwinds coveraging this.
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Post by JHam on May 14, 2019 0:31:22 GMT
Just don't blame me when you lose money I would never do that, nobody to blame but my self as it is all a risk when you dabble in the market. I know you wouldn't, I was totally kidding. I hope this one continues to hover around these levels for a bit so I can continue to accumulate. I'm not sure if that's what is going to happen though. DYAI and CATS (the only two stocks I currently own) are the only two stocks on my watchlist that ended in the green during the bloodbath today.
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Post by JHam on May 14, 2019 0:39:07 GMT
I bought some shares here too today. I had it already on my radar, because of Tailwinds coveraging this. Cool! Welcome to the party. CATS introduced me to Tailwinds, then Tailwinds introduced me to DYAI He covers some interesting companies for sure. I like these two because they are biotech stocks that aren't exposed so much to binary events (i.e., data readouts). With DYAI, they are passed that point. They know the science works very effectively. They don't have to file INDs and go through clinical trials. That's the job of the companies who license DYAI's product for royalties, milestone payments, and upfront cash. Now it is just about DYAI putting together these deals, while we sit back and wait.
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Post by JHam on May 14, 2019 1:00:45 GMT
From the website: www.dyadic.com/c1-uses/DYADIC’S GLOBAL PRESENCEHistory: We have developed an industrially proven expression system based on the fungus Myceliophthora thermophila, nicknamed C1. Based on our academic and commercial collaborations, we believe experts in academia and industry regard Dyadic’s C1 expression system as among the foremost expression systems in the world. Prior to the DuPont Transaction, the C1 technology was previously used commercially by us, and we had successfully licensed our C1 expression system, on a non-exclusive basis, to some of the world’s largest and most renowned industrial biotechnology companies such as Abengoa, BASF, Codexis, among to develop and produce industrial products from DNA such as enzymes for a wide variety of applications and industries. On December 31, 2015 we sold substantially all the assets of our Industrial Technology business to DuPont’s Industrial Biosciences business for $75 million in cash. DuPont has granted back to Dyadic co-exclusive rights to the C1 technology for use in human and animal pharmaceutical applications, with exclusive ability to enter into sub-license agreements in that field. This transaction is an exceptional opportunity to unlock value and provide Dyadic operational flexibility to further develop our pharmaceutical business. We will now focus our C1 technology exclusively on the human and animal pharmaceutical markets where we believe C1 has the potential to help develop and manufacture drugs and vaccines faster and more efficiently than existing production systems. We are optimistic about the impact that the C1 expression system may have on the development and manufacturing of biologic vaccines and drugs and that utilizing the C1 expression system may be the critical differentiator in allowing Dyadic, our collaborators and licensees to compete in these technology-driven markets. Further, we believe biologics developed without the most productive expression system will face reimbursement challenges. Why: The Company has long believed that the pharmaceutical field is one of the most attractive opportunities in which the C1 technology may be applied. We believe the C1 technology platform has potential to be a safe and efficient expression system that may help speed up the development and production of biologics at flexible commercial scales. In particular, as the aging population grows in developed and undeveloped countries, Dyadic believes C1 can potentially help bring biologic drugs to market faster, in greater volumes and at lower cost, and with new properties to drug developers and manufacturers and hopefully, improve access and cost to patients and the healthcare system, but most importantly saving lives. . This can potentially improve access and reduce costs to patients and the healthcare system. DYADIC’S C1 TECHNOLOGY PLATFORMIn addition, we believe the unique attributes of C1 may create attractive research, licensing, collaboration and other opportunities if C1 demonstrates operational efficiencies and reduced capital requirements for biologic drug manufacturers. We believe in the saying that the expression system is not everything, but we believe biologics developed without the most productive expression system will face reimbursement challenges. Based on our academic and commercial collaborations, we believe experts in academia and industry regard Dyadic’s C1 Expression System as among the foremost expression systems in the world. Proprietary & Patented Myceliophthora thermophila, commercially known as our C1 Technology: Dyadic has developed a highly productive recombinant production host that uses modern genetic recombination techniques to develop and manufacture novel enzyme and other protein products. The C1 technology platform enables the targeted discovery, development and industrial scale manufacturing of innovative enzyme and other protein products, thereby providing customers with value-added solutions for their pressing business needs. The use of the C1 technology platform has the potential to remove a critical bottleneck in protein development and manufacturing processes ・Allows for rapid scaling ・Significantly lower CapEx and OpEx ・Potential to improve therapeutic vaccine and drug performance Dyadic is seeking partnerships to sub-license, or partner its C1 platform technology in the vaccine, antibody and biosimilar industries.
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Post by JHam on May 16, 2019 23:48:53 GMT
I averaged down a bit today. Now have a medium position in this one.
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Post by JHam on May 21, 2019 0:28:35 GMT
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Post by JHam on May 23, 2019 0:45:04 GMT
They must have liked what they heard at the B. Riley conference today as the stock jumped 14% on high volume right at the end of the day.
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Post by JHam on May 23, 2019 21:31:14 GMT
As with CATS, Tailwinds also have a synopsis of DYAI’s presentation at B. Riley. Below is a snippet, but join their site (it’s free) to read the whole breakdown. P.S. Tailwinds doesn’t cover this stock, but I think it is on their radar: tailwindsresearch.com/2019/05/b-riley-day-one/The biggest takeaway, besides the pipeline of other opportunities, was the potential from the recent Serum Institute deal they inked. Serum Institute of India is massive and globally one of the leaders in antibodies and vaccines. Their endorsement is exciting and the potential here is enormous. I think Dyadic stock could continue this run for quite a while.
There is still some time before they start bringing in revenue from any future commercialized drug that Serum, or any other of the new JV partners, produce. But I feel comfortable accumulating at this stage because they are not a typical early-stage biotech. They already have FDA approval and are at the licensing stage. It’s up to the companies they do deals with to commercialize their own individual products, which DYAI will then reap in royalties, milestone payments, etc...from. More importantly, they are quite open about the fact that more deals are coming. Soon. Deals that could be potentially front loaded with “a ton of cash”, which hasn’t been the case to date. I also think the chance they get bought out in the next 24 months, is good.
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Post by JHam on May 23, 2019 22:00:11 GMT
For those interested in this company but not quite sure what exactly it is they do, here is a really good short interview with the CEO from January of this year: youtu.be/NuHcKuNcPqc
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Post by JHam on May 31, 2019 1:49:12 GMT
There's a new SA article out (first one in 7 years) that gives a very thorough breakdown of the company. No doubt it is responsible for the jump in share price towards the end of the day: seekingalpha.com/article/4266926-dyadic-international-hidden-biotech-gemHere are some excerpts: Biologics differ from conventional drugs by the fact that they are produced from living organisms instead of being synthesized in chemistry. The global market for biologics was over $200 billion in 2016 and is expected to grow to over $400 billion by 2024. As reported, 6 of the top 8 revenue producing drugs in 2016 were biologics.---The CHO [(Chinese Hamster Overy)] medium is the most commonly understood and employed in biologic production. Revenue derived from CHO produced drugs was expected to reach $165 billion by 2018. It was originally developed by Dr. Theodore Puck in 1957 and was used in research laboratories due to its rapid growth in suspension with rapid protein production. However, the CHO medium is expensive and is much more difficult to scale compared to a fungal medium employed with C1. And further expansion of CHO to levels projected in biologics would require a great deal of infrastructure to expand capacity on the scale needed to accommodate growth. Accordingly, an improved method of development and production will be essential to advance the industry to projected levels and the market for a CHO replacement will likely be huge. The graphic below summarizes the key differences between C1 and CHO.---Significant to the point of view of investors is the fact that the research collaborations in place are fully funded by partners, offering flexibility to partner with multiple large and small pharmaceutical and biotech companies. Accordingly, Dyadic's cash burn is greatly reduced while offering access to a growing number of prospective applications. As the success of the C1 platform becomes more fully understood, it is likely that biotech and pharma players will want to participate. While near-term product revenues may be modest, licensing upfront payments and milestones could be significant. The big payoff will likely accrue as big biotech or pharmaceutical companies become interested in acquiring the C1 platform rights, or the whole company, which appears to be the end goal. During the Q&A of the Q1 earnings conference call a participant posed a question “So, the question I have is what do you think might happen in two and a half years from now?” CEO Mark Emalfarb’s response was “…its possible we won’t be here for two and a half years down the road because somebody could actually buy us.” (source: Q1 Earnings Conference Call).A common thread in the great majority of small biotech investments is that, in the absence of significant revenue, small biotech companies continually need cash and, accordingly, continue to dilute their stock in the issuance of new shares. The opposite is the case with Dyadic. Due to the sale of the industrial division to DuPont for $75 million, the company had excess cash available for investment. As a result, the company repurchased $22 million in outstanding shares, resulting in outstanding shares being reduced from 36.5 million shares in 2016 to 26.7 million shares at the end of Q1 2019. In addition, the company remains debt-free and reported cash and short-term investments of about $41 million at the end of Q1.
There is some really good information in this article, definitely worth the read. I really like the upside here, especially at a $100M market cap. $41M in cash, partners fund R&D, no risk of dilution, just up-listed to the NASDAQ last month and has yet to get institutional exposure, more JV deals to come from top 20 big pharma likely with upfront cash, etc...This is my 2nd biggest holding at the moment and I plan to continue adding for the foreseeable future.
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Post by JHam on May 31, 2019 2:29:48 GMT
By the way, there is a potential imminent major milestone that was not covered in the SA article: (From the CCO's presentation at Biotech and Money back in Nov. 2018) www.dropbox.com/s/m04d0wrj3vi983h/06%20-%201145%20-%20Matthew%20Jones.mov?dl=0&m "We are nearing ever closer to an announcement around our glyco-engineering program. Where we have humanized a strain, so we are, therefore, going to be able to really rival CHO, both from a productivity and a cost of goods play, we do that today already, but to have a humanized strain would be a landmark for the company"He went on to give a 4-5 month timeline for that which would put it around right now.
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Post by JHam on May 31, 2019 17:28:39 GMT
Just added some here.
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Post by JHam on Jun 3, 2019 14:48:29 GMT
DYAI is on the move. Up 8% on almost double the daily average in volume. Hopefully the word is starting to get out on this one.
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