Dyadic International, Inc. (“Dyadic”, “we”, “us”, “our”, or the
“Company”) (NASDAQ: DYAI), a global biotechnology company focused
on building innovative microbial platforms to address the growing
demand for global protein production and unmet clinical needs for
effective and affordable biopharmaceutical products for human and
animal health, today announced its financial results for the third
quarter of 2022, and highlighted recent company developments.
“The approval of our first-in-human clinical
trial application with the South African Health Products Regulatory
Authority (SAHPRA) to initiate a Phase 1 clinical trial is a
significant milestone for Dyadic which further supports the C1-cell
protein production platform as a potentially transformational
technology for use in developing and manufacturing
biopharmaceuticals,” said Mark Emalfarb, President and Chief
Executive Officer of Dyadic. “In addition to establishing a safety
record with regulatory agencies for proteins produced from C1-cells
we continually strive to improve productivity and quality and, in
some cases efficacy, of those proteins. These efforts led to
several scientific breakthroughs this quarter, including increased
protein expression levels through the application of our new
genetic approaches in engineering C1- cells.
“In our Alternative Proteins vertical, our
Dapibus™ microbial cell line continues to gain traction in several
areas, including the cultured meat industry where we have initiated
efforts in the production of media components to support scale up
and commercialization in this rapidly growing market. We signed new
and expanded animal health collaborations this quarter with top
animal health companies. We are accelerating our efforts in the
Animal Health vertical based upon recent positive data we received
with a livestock antigen in the vaccine market as well as our
success in demonstrating the ability for C1-cells to express
ferritin nanoparticle antigens. In the Human Health vertical, we
are focusing on the initiation of the Phase 1 clinical trial for
DYAI-100 and continued progress on programs with our pharmaceutical
partners,” Mr. Emalfarb concluded.
Recent Company
Developments
- DYAI-100, C1-SARS-CoV-2 RBD (Receptor Binding Domain) Booster
Vaccine Candidate
- On October 27, 2022, the Company announced receipt of
regulatory approval of its Clinical Trial Application (CTA) from
the South African Health Products Regulatory Authority (SAHPRA) to
initiate a Phase 1 clinical trial of the DYAI-100 COVID-19 Receptor
Binding Domain (RBD) booster vaccine.
- The Phase 1 randomized, double blind, placebo-controlled trial
is designed to demonstrate clinical safety and preliminary efficacy
of the DYAI-100, COVID- 19 recombinant protein RBD booster vaccine
candidate. Preparations are now underway to initiate the Phase 1
clinical trial to evaluate the safety and immunogenicity of the
vaccine, with a plan to commence enrollment of subjects later this
year in South Africa.
- Multiple Ongoing Research Projects:
- Third Party C1 Produced COVID-19 Antibody – A
non-human primate challenge study completed dosing of a C1 produced
COVID-19 monoclonal antibody (mAb) that had previously demonstrated
broad neutralization and protection against Omicron (BA.1 and BA.2)
and the other earlier variants of concern in hamsters.
- Preliminary results obtained from a challenge study with the
SARS-CoV-2 Delta virus on non-human primates demonstrated potential
high protection.
- No SARS-CoV-2 RNA in throat and nasal swab samples were
obtained in animals pre-treated with the C1 produced neutralizing
monoclonal antibody (mAb), demonstrating potential for preventative
effects.
- Pre-clinical safety and efficacy data from animal studies,
including hamsters and non-human primates, demonstrates C1 produced
antigens and antibodies are as effective as those produced by
reference platforms.
- At the World Vaccine Congress Europe, Dr. Albert Osterhaus
(University of Veterinary Medicine Hannover Germany), who has been
collaborating with Dyadic for over 5 years, presented pre-clinical
safety and efficacy data from animal studies, including hamsters
and non- human primates, demonstrating C1 produced antigens and
antibodies are as effective as those produced by reference
platforms. Dr. Osterhaus’s video presentation can be found on
Dyadic’s website under Media Center, Video Gallery.
- CEO Mark Emalfarb presented data that demonstrated, in addition
to C1-cells producing even higher levels of productivity to date
across different classes and types of proteins for both animal and
human health, innovative approaches and designs to C1 produced
proteins which generated higher neutralizing antibody activity in
pre-clinical animal studies with the potential to improve vaccines
for influenza, COVID-19 and other disease areas.
- Influenza and COVID-19 Vaccines – Additional
preclinical studies are ongoing with C1 produced antigens for
potential seasonal and/or pandemic influenza and/or an influenza /
SARS-CoV-2 combined vaccine.
- Mono and
Multi-Valent RBD-based
Blended Vaccine – Based on the
RBD antigen cell lines that we have constructed to express Wuhan,
Alpha, Beta, Gamma, Delta, and Omicron BA.1 and BA.5 CoV-2
variants, additional animal data is being generated through several
preclinical trials using mono and multi-valent blends of C1
produced SARS-CoV-2 RBD variants of concern. Research is ongoing
with various collaborators who are conducting animal trials on mono
and multi-valent RBD-based blended COVID-19 vaccines for potential
next generation pan-coronavirus vaccine candidates that may provide
broader protection and longer lasting prevention against a wide
variety of corona viruses than what is presently available in the
market.
- Influenza Neuraminidase
(NA) Protein – Dyadic developed a
C1-cell line capable of achieving high titers of neuraminidase
(“NA”). NA in combination with Hemagglutinin (“HA”) is expected to
play an important role in providing broader influenza
vaccine-induced protection. Mice trials conducted by Oslo
university for NA, like the previously reported HA produced from
C1-cells, generated high neutralizing antibody levels. Additional
animal trials are ongoing.
- Scientific Updates
- Dyadic recently developed innovative cell engineering
approaches which have resulted in the achievement of higher titers
across different classes and types of proteins.
- We have successfully expressed the following variants: Alpha,
Beta, Gamma, Delta, and Omicron B.1.1.529 and BA.5 at 0.5-2.5 g/L
levels, in addition to DYAI-100.
- A nine-fold (9x) improvement in the expression yield for
Nivolumab, a potential monoclonal antibody for oncology expressed
from a C1-cell at 22.3 g/l in a seven-day fermentation.
- A biologically active neuraminidase (NA) has been expressed at
0.8 g/L in 7 days for potential use in combination with
Hemagglutinin (HA) to play an important role in providing broader
influenza vaccine-induced protection. Mice trials conducted by Oslo
University for NA, like the previously reported HA produced from
C1-cells, generate high neutralizing antibody levels.
- A non-human primate study completed dosing of a C1 produced
COVID-19 monoclonal antibody (mAb) that has demonstrated broad
neutralization and protection against Omicron (BA.1 & BA.2) and
other earlier variants of concern in hamsters. Full data readout is
anticipated later this year.
- Potential next generation pan coronavirus vaccine candidates:
- Successful production of Wuhan and Omicron Ferritin gRBD
nanoparticle antigens.
- The Wuhan S gRBD nanoparticle has been expressed at greater
than 3 g/L in five days.
- The new data presented by Dr. Albert Osterhaus came from three
pre-clinical studies which demonstrated the potential positive
preventative effects of two C1-cell produced proteins being as
effective as those produced by reference platforms, including CHO
(Chinese Hamster Ovary) cells.
- Third Party
Collaborations – Several on-going fully funded
research collaborations are on track as we continue to optimize our
C1-cell protein production platform and increase productivity,
including collaborations with Janssen, NIIMBL, Jiangsu Hengrui,
Epygen Biotech, and other partners.
- Animal Health
- The Company has successfully expressed a recombinant livestock
antigen at titers up to 10 g/L in 7 days.
- The Company expanded its research projects in animal health for
the development of animal vaccines for livestock.
- In October, the Company commenced a new proof of concept
project with a top animal health company for the treatment of a
targeted disease.
- The Company has initiated two (2) additional recombinant
protein projects to support vaccine research and development.
- Alternative Proteins
- Dyadic has launched its Dapibus™ platform, a filamentous fungal
based microbial gene expression and protein production platform,
which is further designed and customized to enable the rapid
development and large-scale manufacture of low-cost enzymes,
proteins, metabolites, and other biologic products for use in
non-pharmaceutical applications such as food, nutrition, and
wellness.
- The Company initiated an animal free recombinant serum albumin
and other projects related to cell culture media to support the
Dapibus™ platform, which is being developed, among other
applications, to meet the growing demand and unmet needs of
alternative proteins in emerging market such as cultured meat.
Third Quarter
2022 Financial
Results
Cash Position: As of September
30, 2022, cash, cash equivalents, and the carrying value of
investment grade securities, including accrued interest were
approximately $14.2 million compared to $20.4 million as of
December 31, 2021. Based on current plans, the Company expects that
its existing cash, cash equivalents, and investment securities will
be sufficient to enable it to fund Phase 1 clinical trials of
DYAI-100 and its operating expenses into 2024.
Revenue: Research and
development revenue and license revenue for the quarter ended
September 30, 2022, increased to approximately $880,000 compared to
$693,000 for the same period a year ago. Research and development
revenue and license revenue for the nine months ended September 30,
2022, increased to approximately $2,187,000 compared to $2,091,000
for the same period a year ago.
Cost of
Revenue: Cost of research and development revenue
for the quarter ended September 30, 2022, increased to
approximately $603,000 compared to $393,000 for the same period a
year ago. Cost of research and development revenue for the nine
months ended September 30, 2022, decreased to approximately
$1,419,000 compared to $1,613,000 for the same period a year
ago.
R&D
Expenses: Research and development expenses for
the quarter ended September 30, 2022, decreased to approximately
$744,000 compared to $1,902,000 for the same period a year ago.
Research and development expenses for the nine months ended
September 30, 2022, decreased to approximately $3,917,000 compared
to $5,919,000 for the same period a year ago.
The decrease in research and development
expenses was due to the winding down of activities of contract
research organization and pharmaceutical quality and regulatory
consultants to manage and support the pre-clinical and clinical
development as well as a decrease in cGMP manufacturing costs as
the Company moves towards its anticipated Phase 1 clinical trial of
its DYAI-100 RBD COVID-19 booster vaccine candidate.
G&A
Expenses: General and administrative expenses for
the quarter ended September 30, 2022, decreased to approximately
$1,383,000 compared to $1,693,000 for the same period a year ago.
General and administrative expenses for the nine months ended
September 30, 2022, decreased to approximately $4,753,000 compared
to $4,994,000 for the same period a year ago.
Net Loss: Net
loss for the quarter ended September 30, 2022, was approximately
$1,809,000 or $(0.06) per share compared to $1,715,000 or $(0.06)
per share for the same period a year ago. Net loss for the nine
months ended September 30, 2022, was approximately $7,589,000 or
$(0.27) per share compared to $8,856,000 or $(0.32) per share for
the same period a year ago.
Conference Call
Information
Date: Thursday, November 10, 2022Time: 5:00 p.m. Eastern
TimeDial-in numbers: Toll Free 1-877-407-0784 International
1-202-689-8560Conference ID: 13731917Webcast Link:
https://viavid.webcasts.com/starthere.jsp?ei=1561607&tp_key=84d3d19ead
An archive of the webcast will be available within 24 hours
after completion of the live event and will be accessible on the
Investor Relations section of the Company’s website at
www.dyadic.com. To access the replay of the webcast, please follow
the webcast link above.
About
DYAI-100
DYAI-100, also known as C1-SARS-CoV-2 RBD
vaccine, is a novel receptor-binding domain (RBD) recombinant
booster vaccine candidate, highly expressed in Dyadic’s proprietary
C1-cell protein production platform for the prevention of COVID-19.
The C1-SARS-CoV-2 RBD vaccine drug product consists of the
SARS-CoV-2 RBD-C-tag adjuvanted with alum Alhydrogel 85® 2%.
DYAI-100 is expected to start a Phase 1 clinical trial in South
Africa in late 2022 to assess the safety, reactogenicity, and
immunogenicity of the C1-SARS-CoV-2 RBD vaccine, administered as a
booster, in healthy volunteers.
About C1-cell
Protein Production
Platform
C1-cell protein production platform is Dyadic’s
platform technology, which is based on an industrially proven
microorganism (named C1). The C1-cell protein production platform
is a robust and versatile thermophilic filamentous fungal
expression system for the development and production of biologic
products, including enzymes, antigens, antibodies, and other
therapeutic proteins. The C1 technology is currently used to speed
development, lower production costs, and improve performance of
biologic vaccines and drugs at flexible commercial scales for the
human and animal health markets.
About Dapibus™
Protein Production
Platform
Dapibus™ is Dyadic’s newly developed filamentous
fungal based microbial gene expression and protein production
platform, which is being further designed and customized to enable
the rapid development and large-scale manufacture of low-cost
enzymes, proteins, metabolites, and other biologic products for use
in non- pharmaceutical applications, such as food, nutrition, and
wellness.
About Dyadic International,
Inc.
Dyadic International, Inc. is a global
biotechnology company committed to building disruptive microbial
platforms to address the growing demand for global protein
bioproduction and unmet clinical needs for effective, affordable,
and accessible biopharmaceutical products for human and animal
health.
Dyadic’s lead technology, its C1-cell gene
expression and protein production platform, C1 gene expression and
protein production platform is based on the highly productive and
scalable industrially proven fungus Thermothelomyces heterothallica
(formerly Myceliophthora thermophila). is currently used to speed
development, lower production costs, and improve performance of
biologic vaccines and drugs at flexible commercial scales for the
human and animal health markets.
Dyadic is also developing the Dapibus™
filamentous fungal based microbial protein production platform to
enable the rapid development and large-scale manufacture of
low-cost proteins, metabolites, and other biologic products for use
in non-pharmaceutical applications, such as food, nutrition, and
wellness.
With a passion to enable our partners and
collaborators to develop effective preventative and therapeutic
treatments in both developed and emerging countries, Dyadic is
building an active pipeline by advancing its proprietary microbial
platform technologies, including our lead product DYAI-100 COVID-19
vaccine candidate, as well as other biologic vaccines, antibodies,
and other biological products.
To learn more about Dyadic and our commitment to
helping bring vaccines and other biologic products to market
faster, in greater volumes and at lower cost, please visit
www.dyadic.com.
Safe Harbor
Regarding Forward-Looking
Statements
This press release contains forward-looking
statements within the meaning of Section 27A of the Securities Act
of 1933 and Section 21E of the Securities Exchange Act of 1934,
including those regarding Dyadic International’s expectations,
intentions, strategies, and beliefs pertaining to future events or
future financial performance, such as the success of our clinical
trial our research projects and third-party collaborations, as well
as the availability of necessary funding. Actual events or results
may differ materially from those in the forward-looking statements
because of various important factors, including those described in
the Company’s most recent filings with the SEC. Dyadic assumes no
obligation to update publicly any such forward-looking statements,
whether because of new information, future events or otherwise. For
a more complete description of the risks that could cause our
actual results to differ from our current expectations, please see
the section entitled “Risk Factors” in Dyadic’s annual reports on
Form 10-K and quarterly reports on Form 10-Q filed with the SEC, as
such factors may be updated from time to time in Dyadic’s periodic
filings with the SEC, which are accessible on the SEC’s website and
at www.dyadic.com.
Contact:
Dyadic International, Inc.Ping W. RawsonChief Financial
Officer561-743-8333Email: ir@dyadic.com
DYADIC
INTERNATIONAL, INC.
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS
OF OPERATIONS
|
Three Months Ended September 30, |
Nine Months Ended September 30, |
|
2022 |
2021 |
2022 |
2021 |
Revenues: |
|
|
|
|
Research and development revenue |
$ |
835,480 |
|
$ |
692,929 |
|
$ |
1,983,636 |
|
$ |
2,090,541 |
|
License revenue |
|
44,117 |
|
|
— |
|
|
202,941 |
|
|
— |
|
Total revenue |
|
879,597 |
|
|
692,929 |
|
|
2,186,577 |
|
|
2,090,541 |
|
|
|
|
|
|
Costs and expenses: |
|
|
|
|
Costs of research and development
revenue |
|
602,847 |
|
|
392,544 |
|
|
1,418,702 |
|
|
1,612,810 |
|
Research and development |
|
743,585 |
|
|
1,901,548 |
|
|
3,917,245 |
|
|
5,918,888 |
|
General and administrative |
|
1,383,433 |
|
|
1,692,837 |
|
|
4,753,162 |
|
|
4,994,458 |
|
Foreign currency exchange loss,
net |
|
13,205 |
|
|
30,002 |
|
|
23,578 |
|
|
76,080 |
|
Total costs and expenses |
|
2,743,070 |
|
|
4,016,931 |
|
|
10,112,687 |
|
|
12,602,236 |
|
|
|
|
|
|
Loss
from operations |
|
(1,863,473 |
) |
|
(3,324,002 |
) |
|
(7,926,110 |
) |
|
(10,511,695 |
) |
|
|
|
|
|
Other income: |
|
|
|
|
Interest income |
|
54,300 |
|
|
3,202 |
|
|
87,277 |
|
|
49,772 |
|
Other income |
|
— |
|
|
1,605,532 |
|
|
250,000 |
|
|
1,605,532 |
|
Total
other income |
|
54,300 |
|
|
1,608,734 |
|
|
337,277 |
|
|
1,655,304 |
|
|
|
|
|
|
Net loss |
$ |
(1,809,173 |
) |
$ |
(1,715,268 |
) |
$ |
(7,588,833 |
) |
$ |
(8,856,391 |
) |
|
|
|
|
|
Basic and diluted net loss per
common share |
$ |
(0.06 |
) |
$ |
(0.06 |
) |
$ |
(0.27 |
) |
$ |
(0.32 |
) |
|
|
|
|
|
Basic and diluted
weighted-average common shares outstanding |
|
28,391,894 |
|
|
28,079,157 |
|
|
28,302,332 |
|
|
27,754,597 |
|
See Notes to Consolidated Financial Statements in
Item 1 of Dyadic’s Quarterly Report on Form 10-Q filed with the
Securities and Exchange Commission on November 10, 2022.
DYADIC
INTERNATIONAL, INC.
AND
SUBSIDIARIESCONSOLIDATED
BALANCE SHEETS
|
September 30,
2022 |
|
December 31,
2021 |
|
(Unaudited) |
|
(Audited) |
Assets |
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
Cash and cash equivalents |
$ |
6,739,117 |
|
|
$ |
15,748,480 |
|
Short-term investment
securities |
|
7,461,884 |
|
|
|
4,511,780 |
|
Interest receivable |
|
43,873 |
|
|
|
94,375 |
|
Accounts receivable |
|
235,368 |
|
|
|
277,831 |
|
Prepaid expenses and other
current assets |
|
448,208 |
|
|
|
375,830 |
|
Total current assets |
|
14,928,450 |
|
|
|
21,008,296 |
|
|
|
|
|
|
|
|
|
Non-current assets: |
|
|
|
|
|
|
|
Investment in Alphazyme |
|
284,709 |
|
|
|
284,709 |
|
Other assets |
|
6,003 |
|
|
|
6,117 |
|
Total
assets |
$ |
15,219,162 |
|
|
$ |
21,299,122 |
|
|
|
|
|
|
|
|
|
Liabilities
and stockholders’
equity |
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
Accounts payable |
$ |
777,238 |
|
|
$ |
1,547,953 |
|
Accrued expenses |
|
987,891 |
|
|
|
709,560 |
|
Deferred research and development
obligations |
|
445,044 |
|
|
|
151,147 |
|
Deferred license revenue, current
portion |
|
176,471 |
|
|
|
147,059 |
|
Total current liabilities |
|
2,386,644 |
|
|
|
2,555,719 |
|
|
|
|
|
|
|
|
|
Deferred license revenue, net of
current portion |
|
220,588 |
|
|
|
352,941 |
|
Total liabilities |
|
2,607,232 |
|
|
|
2,908,660 |
|
|
|
|
|
|
|
|
|
Commitments and contingencies
(Note 4) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders’ equity: |
|
|
|
|
|
|
|
Preferred stock, $.0001 par value: |
|
|
|
|
|
|
|
Authorized shares - 5,000,000; none issued and outstanding |
|
— |
|
|
|
— |
|
Common stock, $.001 par value: |
|
|
|
|
|
|
|
Authorized shares -
100,000,000; issued shares - 40,716,602 and 40,482,659, outstanding
shares - 28,463,100 and 28,229,157 as of September 30, 2022, and
December 31, 2021, respectively |
|
40,717 |
|
|
|
40,483 |
|
Additional paid-in
capital |
|
102,836,563 |
|
|
|
101,026,496 |
|
Treasury stock,
shares held at cost - 12,253,502 |
|
(18,929,915 |
) |
|
|
(18,929,915 |
) |
Accumulated
deficit |
|
(71,335,435 |
) |
|
|
(63,746,602 |
) |
Total stockholders’
equity |
|
12,611,930 |
|
|
|
18,390,462 |
|
Total liabilities
and stockholders’
equity |
$ |
15,219,162 |
|
|
$ |
21,299,122 |
|
See Notes to Consolidated Financial Statements in
Item 1 of Dyadic’s Quarterly Report on Form 10-Q filed with the
Securities and Exchange Commission on November 10, 2022.
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