JUPITER, Fla. - Biotechnology company Dyadic International , Inc. (NASDAQ:DYAI) has entered into a partnership with Proliant Health and Biologicals (PHB) to develop and commercialize animal-free recombinant albumin products. The collaboration, announced today, will focus on the production of recombinant human serum albumin, a product in high demand within the $6 billion serum albumin market.
Under the terms of the agreement, Dyadic will receive an upfront milestone payment of $1.5 million and a share of the profits from the sale of the products developed using its proprietary microbial platforms. The first product launch is anticipated in the first half of 2025.
The partnership aims to combine Dyadic's innovative microbial protein production platforms with PHB's market presence in the production of bovine serum albumin and other cell culture products. This strategic collaboration is expected to cater to the growing demand for alternative protein sources in the diagnostic and life sciences industries.
Joe Hazelton, Chief Operating Officer of Dyadic, stated that the agreement marks a significant step in executing their strategy to commercialize alternative protein products and generate revenue. Hazelton emphasized the potential of the partnership to develop cost-effective and high-quality products for various applications, including cell culture, vaccine development, medical devices, and diagnostics.
Chris Detzel, Chief Executive Officer of PHB, expressed enthusiasm about entering the animal-free protein space and providing recombinant protein products that can compete with traditional proteins in terms of value and quality.
Dyadic's protein production platforms, C1 and Dapibus™, utilize the fungus Thermothelomyces heterothallica to produce proteins sustainably and at a lower cost. The company is leveraging these platforms across multiple sectors, including industrial, life sciences, and next-generation foods.
Proliant Health & Biologicals, headquartered in Ankeny, Iowa, is a leading supplier of purified proteins, focusing on diagnostics, nutritional supplements, and therapeutics. The partnership with Dyadic is expected to enhance PHB's product offerings and meet customer needs for alternative protein sources.
This partnership announcement is based on a press release statement.
In other recent news, Dyadic International's shareholders have shown confidence in the company's strategic direction by approving board nominees and the company's independent auditor, Crowe LLP, at the 2024 Annual Meeting. The shareholders elected Jack L. Kaye and Patrick Lucy as Class II Directors.
The company has also made significant progress in the health sector, with promising Phase 1 trial results for its COVID-19 vaccine candidate and a bird flu vaccine candidate in collaboration with ViroVax.
In the alternative protein sector, Dyadic is exploring new frontiers. Despite a decrease in research and development revenue and a slight increase in net loss, the company secured a $6 million convertible note financing, positioning it for potential near-term revenue growth through various strategic partnerships and licensing agreements. Dyadic's C1 technology is gaining global recognition and the company's collaborations with top pharmaceutical companies are noteworthy.
Recent developments include the availability of Dyadic's C1 Host Cell Protein (HCP) ELISA Kits for purchase and the company entering into a term sheet with a global albumin manufacturer and distributor, targeting market entry within 12 months.
InvestingPro Insights
As Dyadic International, Inc. (NASDAQ:DYAI) forges a significant partnership with Proliant Health and Biologicals to develop animal-free recombinant albumin products, the company's financial health and market performance provide additional context for investors. According to InvestingPro data, Dyadic's market capitalization currently stands at approximately $46.19 million, with a Price / Book ratio for the last twelve months as of Q1 2024 at a relatively high 10.23. This suggests that the market values the company's assets quite optimistically relative to its book value.
The company's revenue for the same period was reported at $2.26 million, although it experienced a notable decline in revenue growth of -30.82%. This could be an area of concern for investors looking for growth potential. Additionally, the company's operating income margin was significantly negative at -366.79%, indicating challenges in profitability. An InvestingPro Tip highlights that Dyadic is not profitable over the last twelve months, which is consistent with the reported financial metrics.
Despite recent performance challenges, with the stock having taken a significant hit over the last week with a -10.23% price total return and a -19.39% return over the past month, the balance sheet strength is underscored by an InvestingPro Tip indicating that Dyadic holds more cash than debt. This could provide some financial flexibility as the company works towards its first product launch with PHB in the first half of 2025.
Investors interested in a deeper analysis of Dyadic International, Inc. might consider the additional 6 InvestingPro Tips available on the platform, which could offer further insights into the company's financial health and market position. For those looking to access these insights, remember to use the coupon code PRONEWS24 for an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro.
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