Dyadic(US:DYAI)2025-11-12 23:00Financial Data and Key Metrics Changes - Total revenues for Q3 2025 decreased to $1,165,000 from $1,958,000 in the same period a year ago, primarily due to declines in research and development revenue and license and milestone revenue [23][24] - Research and development expenses increased to $572,000 from $460,000 year-over-year, driven by a rise in active internal research initiatives [24] - Net loss for Q3 2025 increased to $1,976,000 or $0.06 per share compared to a loss of $203,000 or $0.01 per share in the same period last year [25] Business Line Data and Key Metrics Changes - The Life Sciences segment is now operating as a product company, manufacturing and supplying lab-grade materials for multiple recombinant proteins [5][6] - The recombinant human albumin program is advancing towards a commercial launch in early 2026, with significant milestone payments received from ProLiant [6][7] - The first bulk purchase order for a Dyadic produced protein was achieved in October, validating the market readiness of the technology [8] Market Data and Key Metrics Changes - The cell culture media market is identified as a dynamic growth area, requiring consistent animal-free proteins for scalability and regulatory confidence [6] - The market for DNase one is approximately $250 million for recombinant products, with a broader market of $1.5 billion for all production methods [32] - The animal-free dairy protein market is expected to exceed $20 billion by 2035, driven by demand for sustainable protein production [13] Company Strategy and Development Direction - The company is transitioning from a platform-centric R&D organization to a commercially focused biotechnology company with a growing portfolio of high-value products [4][5] - Dyadic has rebranded as Dyadic Applied Biosolutions and is enhancing its technology foundation with CRISPR Cas9 gene editing capabilities [4][5] - The strategy includes expanding customer engagement in key global markets, particularly in Asia, Europe, and North America [76] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's transformation and execution, highlighting the first commercial bulk sale as a pivotal moment [4][5] - The focus remains on accelerating product sales across life sciences and molecular biology reagent portfolios, with early commercial traction already underway [76] - The company anticipates growth in product revenue in life sciences and food and nutrition markets while maintaining operating expenses in line with the previous year [26] Other Important Information - The company received a total of $1,500,000 in milestone payments from ProLiant, with expectations to share in profits as albumin products enter the market [7] - Dyadic's collaboration with Intralink aims to accelerate market penetration in Japan and South Korea, leveraging local expertise for effective market reach [11][12] Q&A Session Summary Question: What does the new relationship with ERS Genomics bring to the portfolio? - The CRISPR license enhances the genetic toolbox, accelerating product development and improving optimization yields, providing a competitive advantage in various markets [29][30] Question: How should the DNase one opportunity be viewed for growth in 2026 and beyond? - The DNase one market is substantial, and the focus is on securing OEM agreements for bulk sales, with expectations for steady growth as higher margin segments are targeted [32][34] Question: What characteristics of customers are expected in the Asian markets for DNase one and transferrin? - The target customers include cell and gene therapy manufacturers and suppliers, focusing on bulk purchase orders rather than individual institutions [36][37] Question: Can you elaborate on the CRISPR ERS agreement structure? - The agreement involves improving fungal cell lines for efficiency and quality, with confidentiality around financial specifics, but it is not comparable to CRISPR applications in pharmaceuticals [45][46] Question: How is the infant nutrition product being marketed? - The goal is to mimic human breast milk and bovine milk, with a focus on regulatory hurdles and consumer acceptance, presenting a significant opportunity in the market [51][53]