Dyadic(US:DYAI)2024-08-14 03:05Financial Data and Key Metrics Changes - Revenue for Q2 2024 decreased to approximately $386,000 compared to $837,000 for the same period a year ago, attributed to the winding down of several large research collaborations [19][20] - Research and development expenses for Q2 2024 decreased to approximately $516,000 from $918,000 in the same period last year, reflecting the winding down of activities related to the company's Phase 1 clinical trial of DYAI-100 [20] - General and administrative expenses increased to approximately $1.608 million from $1.403 million year-over-year, driven by increases in share-based compensation, legal expenses, and business development costs [20][21] - Net loss for Q2 2024 was approximately $2.045 million or $0.07 per share, compared to a net loss of $2.153 million or $0.07 per share for the same period last year [21] Business Line Data and Key Metrics Changes - The company is focusing on high-value, high-volume recombinant protein products, with a recent partnership for combat serum albumin unlocking opportunities in the approximately $6 billion serum albumin market [6][7] - The Dapibus protein expression platform is gaining momentum and generating revenue in the alternative protein and bio-industrial sectors [5] - The company has developed DNase-1 and a recombinant transferrin strain, targeting markets valued at over $809 million and $4.73 billion respectively, both projected to grow significantly [10][11] Market Data and Key Metrics Changes - The global animal-free dairy products market was valued at over $26 billion in 2022 and is projected to reach more than $75 billion by 2032 [12] - The recombinant transferrin market is expected to grow, with the average cost of a kilogram of transferrin being approximately $400,000 to $500,000 [28][30] - The alternative protein sector is the primary focus for near-term growth, with significant interest in non-animal dairy products and recombinant proteins [14][19] Company Strategy and Development Direction - The company is strategically positioned to achieve mobile revenue streams through commercialization of products, technology licensing, and advancing its pipeline [4][19] - The focus is on three distinct market sectors: alternative proteins, animal health, and human health, with significant activity reported in each sector [23] - The company aims to leverage its microbial protein production platforms to develop recombinant proteins across various sectors, driving substantial value creation [5][19] Management's Comments on Operating Environment and Future Outlook - Management expressed excitement about the company's strategy centered on licensing and product candidates, aiming to enhance shareholder value [3][4] - The company is committed to driving near-term revenue growth in the alternative protein segment while building long-term value in animal and human health markets [19][23] - There is a focus on evaluating product opportunities with financial rigor to fully capture the value of the company's technology and expertise [19] Other Important Information - The company has initiated over 14 fully funded human health vaccine and antibody projects, showcasing its ability to produce both standard and complex molecules [15] - The successful completion of the first in-human Phase 1 study for a C1 produced protein has generated significant interest from various sectors [15][16] - The company is actively providing samples of its H5 avian influenza vaccine candidate to pharmaceutical companies for evaluation [18] Q&A Session Summary Question: What is the size of the alpha-lactalbumin market and who are the customers? - The alpha-lactalbumin market is approximately $700 million, with the recombinant segment estimated at $30 million to $40 million. Customers include large dairy companies like Danone and Nestlé [25][26] Question: Is there a clear pathway to revenues outlined in the JDA with the dairy company? - Yes, there are milestones and royalty payments associated with the development based on the performance of the strain [27] Question: Can you elaborate on the transferrin opportunity? - The transferrin market is high-growth, with an average cost of $400,000 to $500,000 per kilogram. Recombinant production is increasing due to its high price point and regulatory acceptance [28][30] Question: How has the C1 expression system evolved over the last five years? - The C1 cell line has transitioned from industrial use to biopharmaceuticals, demonstrating the ability to produce stable, high levels of low-cost proteins, which has opened up significant market opportunities [32][34] Question: What is the relative margin on the C1 produced product versus Proliant's current offerings? - Proliant currently works with bovine albumin and does not have a recombinant product. The company aims to provide a cost-effective recombinant human serum albumin for various applications [36][37]