Q3 2022 Dyadic International Inc Earnings Call
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Good evening and welcome to Dyadic Internationals third quarter fiscal 'twenty 'twenty financial results Conference call.
Currently all participants are in a listen only mode.
Following management's prepared remarks, there will be a brief question and answer session.
As a reminder, this conference is being recorded today November 10th 2022.
Now I'd like to turn the call over to MS. Ping boyfriend Dyadic Chief Financial Officer. Please go ahead ma'am.
Thank you good evening and welcome everyone to Diotic Internationals third quarter fiscal 2022 conference call.
I Hope you have had the opportunity to review Diotic press release announcing financial results for the quarter ended September 32022, and the recent company highlights.
You may access our press release and Form 10-Q under the investors section of the company's website at <unk> Dot com.
On today's call are president and CEO , Mark <unk>, who will give a review of our third quarter 2020 to business and corporate highlights.
<unk>, a brief summary of our research and business development efforts.
Our Chief business Officer, Joe Hazelton, well, Joe Mark the business update.
I will follow with a review of our financial results in more detail.
We will then hold a brief Q&A session.
At this time I would like to inform you that certain commentary made in this conference call maybe considered forward looking statements, which involve risks and uncertainties and other factors that could cause biotics actual results performance scientific or otherwise or achievements to be materially.
Different from those expressed or implied by these forward looking statements.
<unk> expressly disclaims any duty to provide updates to its forward looking statements whether as a result of new information future events.
Or otherwise.
Participants are directed to the risk factors set forth in Biotics reports filed with the SEC.
It is now my pleasure to pass the call to our CEO Mark EMA Fox.
Mark.
Thank you Ping Hello, everyone and thank you for joining dyadic third quarter update call.
As you will hear on today's call continue.
Continuing to advance our scientific developments and there is much to be excited about at Diana.
In Q2, we discuss the company's focus on our core business and achieving commercial agreements.
If it's three core verticals.
<unk> health and my house and alternative proteins.
Today, I would like to discuss the progress we've made in expanding opportunities in these areas and how we believe that the progress will accelerate the future potential for dyadic.
As I stated in our Q2 call the commitment it takes to build a protein production platforms to support life Sciences manufacturing demands.
Assistance focus and their determination.
See the process through.
It also takes an unwavering belief.
Monetary and societal impact of ways a significant investment.
Just capital an annealing dedication to scientific advancement.
And dyadic our mission is to help make proteins for world Health.
Our foundation continues to be our science, coupled with our highly efficient microbial platforms.
And commitment to the advancement of that science.
<unk> revenue.
And long term shareholder value and at the same time, helping to increase access to biologic vaccines and drugs across the globe.
To help a dyadic achieve this mission I want to thank the many scientists we continue to work with in academia and industry and government our collaborators shareholders and board members for their support during this crucial journey.
As you will hear today, we have achieved some significant milestones.
Second quarter.
There are even closer to several transformational milestones in life Sciences, as we close in on our demonstrating and producing proteins using our <unk> technology are safe for use in humans.
In addition, we continually strive to improve productivity quality and performance of <unk> produced proteins.
These efforts have led to several scientific breakthroughs this quarter.
<unk> increased protein expression levels to the application of our new genetic approaches and engineering's human cells.
And advancements in our science is coming at a time, we're achieving significant development milestone.
Which we expect to lead to our ability to open additional opportunities within our core verticals and capitalize on existing and new revenues for Diana and our collaborators.
First I would like to focus on the significant achievements, we have achieved in human health.
I'm proud to announce and then I think he has received regulatory approval from the South African health products regulatory authority Safra to initiate a phase one clinical trial to demonstrate clinical safety and antiviral response in humans for a D Y a 100 COVID-19 were common in protein.
Our IBD booster vaccine candidate.
This is an important step towards establishing <unk> as a safe and transformative option.
More efficient protein production platform for the development and manufacture of <unk>.
Growing number of biopharmaceutical for infectious and other diseases.
Our Chief business Officer, Joe Hazelton has been overseeing our efforts regarding the submission.
I'll now turn the call over to Joe to discuss the timing and relevant aspects of this important clinical trial application.
Ta for Diana <unk>.
Thank you Mark the primary purpose of phase one study is to evaluate the safety of the new drug candidates before it proceeds to further clinical studies.
You'll see one platform to produce bio pharmaceuticals, we are starting to bio manufacturing process throughput and a growing number of scientists believe is an extremely safe micro organisms. In 2009, <unk> Q1 sales were used to produce an enzyme that received generally recognized as safe or gras status from the U S F.
Which means safe for use as an additive and food and feed for animals and humans. In addition, dyadic has generated significant preclinical safety data across several animal species regarding the <unk> one platform.
Like E coli, Joe Chi, which is Chinese hamster ovary cells.
In fact, our backlog by yourselves. The C. One cells themselves are free of ours as an endotoxin that must be removed during the downstream processing impacted productivity cost of purification and delaying product release.
Data from vaccines produced C. When coatings have repeatedly demonstrated safety and efficacy in the range of infectious diseases in animal trials with cattle lands chicken rabbits hamsters mice.
Again, demonstrating the preliminary safety of proteins produced from the <unk> production system.
Specifically with our <unk> 100 vaccine candidate, we have demonstrated safety multiple mice studies and most importantly successful rabbit toxicology study, which showed safety and persistence of antibodies, which were generated from our San Juan Basin.
100, COVID-19 booster vaccine candidate.
You May have also seen in today's press release, New data presented at the World vaccine Congress in Europe by Dr. Albert those trials.
With the University of veterinary Medicine in Hanover, Germany.
<unk> has been collaborating with addicts over five years, Dr. <unk> presented preclinical safety and efficacy data from animal studies, including hamsters and non human primates, demonstrating seaborne produced introduced in antibodies.
Effective as those produced by common cell lines used for biologic vaccine in drug production platforms like yourselves.
Mark will speak to this in greater detail a bit later, but in summary, the data supporting the overall safety profile of <unk> cells as well as their ability to produce proteins that prevent and treat disease equivalent to if not better than the most commonly used cell lines in production today.
You'll also hear remarks speak about C. One continues to demonstrate higher productivity and efficiency potentially increase in global access and lowering overall manufacturing costs.
Dr. <unk> warehouses video presentation can be found on <unk> website under a media center and the video Gallery.
Which brings me to the regulatory approval of our clinical trial application.
In addition to establishing a track record of safety in humans antigen produced from what she wants cells. The phase one trial will be a randomized double blind placebo controlled trial to evaluate the safety.
Exogenously, which is response to vaccination and Immunogenicity, which is the immune response of the <unk> 100, COVID-19, recumbent protein IBD booster vaccine in 30 healthy adults in South Africa.
Trial preparations are actively underway with site initiation expected later this year the eight scheduled patient visits over a six month period with safety data being collected throughout the trial and Immunogenicity assessments are scheduled on six of the eight visits Xiaomi further results will depend on many factors, including enrollment and we will share additional data.
As it becomes available.
A successful outcome to the phase one trial for <unk> 100 will bring a new weapon against COVID-19 closer to approval and provide additional safety validation for us and our collaborators reducing developmental risk for other vaccines for infectious disease and other diseases. In addition progress continues to be made by epogen biotech one of them.
<unk> non exclusive licensees to advance the development manufacture and conduct phase one and two clinical trials using <unk> one protein production platform for their COVID-19 vaccine candidate produced strips human cells.
C. One protein expression platform as paperboard and paralleled scale and productivity in terms of antigen production and the proteins produced from RCM platform continue to demonstrate comparable safety and efficacy to incidents can restrict traditional cell lines used in animal studies, we expect with the phase one clinical trial in South Africa.
Later phase one trial in India with Epogen will be a pivotal point in the many ongoing discussions, we're having with top tier pharma biotech and government agencies globally.
We have also presented data that demonstrated that our innovative approaches and designs to seed one produced proteins that generated higher neutralizing antibody activity in preclinical animal studies with the potential to improve vaccines for influenza COVID-19, and other diseases.
An example is our successful production of Wuhan and Omicron Ferritin RVB net nanoparticle antigens, which may have application as a next generation and Corona virus vaccine candidates similar.
Similarly last quarter, we discussed how our efforts in expressing the neuraminidase antigen, which has broad potential use in the development of better seasonal and pandemic flu vaccines has historically been difficult to produce reliably at high yields.
Biological activities.
<unk> of neuraminidase standard flu vaccines to enhance the immune response to provide even greater protection to patients. Our current expression level based on 800 milligrams per liter and 168 hours had generated interest with academia government agencies, and large pharmaceutical and biotech companies within the human vaccine industry.
Our high level expression of Barrington <unk>.
Article antigens and <unk> cells for use in developing potentially better performing colon vaccines with potential for neuraminidase in combination with previously expressed hemagglutinin.
Which has the potential to play an important role in providing broader influenza vaccine abuse protection and the safety data, we expect to generate from upcoming BLA with hundred phase. One trial are just a few examples of the many opportunities we believe will accelerate the adoption of the <unk> platform.
Mark will now discuss our progress and lifestyle, it's mark.
Yeah.
Thank you Joe.
As Joe mentioned in today's press release, we highlighted several areas of scientific and regulatory advancement.
When we undertake a project with a specific objective.
Further the scientific advancement or enhance the breadth and scope.
Where are we and our collaborators may be able to apply.
Technologies being developed.
Such as our <unk> protein production plan.
These projects and collaborations helps to validate the application of <unk> is a differentiated biomagnify picturing platform.
The prevention and treatment of infectious and other diseases, such as rabies oncology arthritis and diabetes.
For example data presented recently by Dr. Albert <unk> trials on the University of Veterinary medicine in Hanover.
<unk> produced COVID-19, monoclonal antibody mab in a challenge study with the Sars Cov two delta virus.
Non human primates.
Demonstrated potential high protection and preventative FX.
He also presented preclinical safety and efficacy data from animal studies, including hamsters and nonhuman primates.
Demonstrating <unk> produce antigens and antibodies.
Or is it effective as those produced by reference platforms might chose health.
To further accelerate the adoption of our platform for the prevention and treatment of infectious and other diseases research and development is ongoing with various collaborators in key therapeutic areas.
With the strength of our experience and our technologies coincide.
In addition to the successful high level expressing a farrington <unk> nanoparticle antigens and <unk> cells for use in Pan coronavirus applications.
So we have collaborators conducting animal trials on mono and multifamily <unk> based planet COVID-19 vaccines for potential next generation Pan Coronavirus vaccine candidates and may provide broader protection and longer lasting prevention against a wide variety of <unk>.
<unk> says.
And what is currently available on the market.
Beyond our continuing work in Covid vaccine.
And believe that our neuraminidase and Hemagglutinin influenza antigens, while anchor and further support our business development opportunities and infectious disease.
In collaboration with Oslo University, we have additional animal trials that are ongoing with <unk> produced Hey, Jay and COVID-19 antigens for potential more effective influenza and our combined influence a coronavirus vaccine.
There are other preclinical animal studies are also ongoing including C. One produce antigens being evaluated for intranasal and oral applications now.
Now just a few words on our key life science.
Growth market and therapeutic proteins.
Therapeutic protein drugs as a market was valued at over 280 billion and.
In 2020.
And is estimated to reach over $560 billion by 2030.
These drugs have already shown they have the potential to significantly improve human health.
Used to treat a variety of diseases, such as cancer immunological hormonal genetic.
<unk> diseases and others.
Global demand for therapeutic proteins is growing at unprecedented levels.
A rising prevalence and diagnosis of chronic infectious diseases and that demand has been further accelerated.
COVID-19 pandemic.
And rising concerns for twin or even.
Triple concurrent pandemics, what other infectious diseases, such as influenza.
As we saw with Covid the supply of therapeutic proteins. During heightened demand was hampered due to the high cost and timelines required for developing and manufacturing protein based therapeutics like monoclonal antibodies.
Beyond cost and timing there is also a clear need for a more productive manufacturing platforms.
Are you able to meet this growing demand and a timeframe needed by patients all over the world.
As Joe discussed our progress on vaccines combined the various preclinical animal models test and.
An impending phase one trial, and we expect allow us to demonstrate to big pharma.
So tech company government and academia globally safety profile for a competent and it is produced using our <unk> platform.
The commercial production of our comment on vaccines and antibodies.
We are now generating data to support our science regarding the therapeutic product therapeutic proteins.
While we're excited about the rapid advancements in our technology to improve the productivity for therapeutic proteins. We're equally focused on the quality aspects of our monoclonal antibodies.
In the second quarter, we announced the dosing and completed for our fully funded nonhuman primate study of.
<unk> produced COVID-19 monoclonal antibody.
Monoclonal antibody.
877, which is developed by the EU Zappy scientists.
Already demonstrated broad neutralization of protection.
Yes, Amit on VA, one NBA too.
All other earlier variance are concerned and hamsters and.
In today's release, we highlighted Dr. Ross trials as recent presentation at <unk>.
World Vaccine Congress Europe in Barcelona.
It presented some preliminary results from our nonhuman Primate Challenge study.
The <unk> <unk> Delta virus.
It demonstrated protection equally as important is that the <unk> produced COVID-19 monoclonal antibody.
As effective as a comparator antibody produced in a million cells reference platform.
The importance of this data has ever obtaining safety and efficacy of <unk> produced therapeutic protein and nonhuman Primate study.
Demonstrating <unk> produced proteins.
A safe and just as effective as that was produced in today's commonly used platforms.
This provides further validation of the <unk> platform beyond high productivity and efficiency.
This is a fully funded initiative with one of our third party collaborators and his nonhuman Primate study is anticipated to lead to a funded GOP toxicology study and potentially cgmp manufacturing eye drops of drug substance and our phase one clinical trial.
This time, demonstrating safety and therapeutic protein.
One manufacturing cell.
<unk> safety and efficacy.
These phase one trials for vaccines and potentially monoclonal antibody as a key gating item for big pharma.
<unk> and government agencies, and we expect this to accelerate the use of our CRM platform.
It is safe and effective vaccines and therapeutic proteins.
While we still have work to do the interest we are generating and therapeutic proteins and knowledge, we are gaining as well as our collaborators are gaining such knowledge our rapidly expanding interest not only in <unk>, but also many areas in which our sealing platform may applied for rapid development and production.
Of large quantities of antibody.
Across large and midsize pharmaceutical companies in both human and animal health.
Our collaboration with Janssen to develop <unk> cell lines to produce targeted therapeutic protein candidates demonstrates our ability to attract the attention of large pharmaceutical partners.
Progress is ongoing and on time, and we anticipated it will lead to development milestones and eventually commercial revenues generated from one or more of a chance and targeted proteins.
With regard to animal health and the expanding opportunity for business development that exists within this core vertical.
Leveraging our scientific innovation and new designs in animal health to enhance the potential for monetization with this core vertical.
May have noted in today's press release.
Successfully express if a prominent livestock antigen it tightens up to 10 grams per liter and seven days.
Which is significantly higher.
Has traditionally been produced with a reference platforms.
Joe will provide more color on dynamics efforts in this market.
Thank you Mark.
As you noted we are leveraging our science.
Got it.
There are many similarities in nature, and the human and animal health markets for vaccines and therapeutic protein, which makes the animal health and attractive segment for that at the <unk>.
Global Animal health vaccines market has an estimated 15 billion.
Vaccines.
Over $8 billion.
Yes, just the productivity levels that have the potential to increase production lower costs and a better margin sensitive segment of the animal vaccine market and we are just beginning to penetrate this segment.
These scientific advancements by driving further development of our expanded research projects in animal health for the development of vaccines to strike a new proof of concept projects for top animal health companies for the treatment of the targeted companion animal disease and the initiation of two additional recombinant protein projects to support that.
Research and development.
As in the human health market the increase in the prevalence in diagnosis of chronic infectious disease is significantly driven demand for therapeutic proteins within the animal health sector, specifically companion animals, the global companion animal Pomona antibodies market was over $680 million and growth rate into 2000.
'twenty one and we are currently in discussions with several partners proteins for livestock and companion animals are focused.
Of the one group and flat.
Which we believe can serve as an accelerator to drug and vaccine development and commercialization by shortening the time from preclinical to phase trials, increasing productivity and improving cost efficiencies within animal health.
Back to you.
Thank you Joe.
Alternative proteins.
Our vertical is home to our nutrition and wellness initiatives.
Partnerships.
Driven by our fully funded joint development agreement with a global food ingredients collaborator.
<unk> is dedicating resources and support.
Existing projects within this rapidly growing market.
Diane has launches Tampa bus platform.
<unk> <unk> base microbial gene expression and protein production platform.
Which is further design and customize to enable the rapid development and large scale manufacturer of a low cost enzymes proteins metabolites and other biological products for use in non pharmaceutical applications within our alternative protein core vertical.
Alternative proteins is another core vertical where we are able to leverage the advancement.
Innovation and advantages of the dyadic technologies across a broad and growing market opportunity.
Answered with vaccines and biologics there was a clear market opportunity and need for alternative proteins, and both human and animal health and nutritional segments.
Animal alternative protein market and includes the livestock and companion animal is a $9 billion market and growing.
The human alternative market is a $7 billion market currently driven by plant based proteins and now further being accelerated by the introduction of <unk>.
Cultured or lab grown meat.
It is still a smaller scale and yet over $1 billion was invested in this market in 2021.
It was a common shared need across the diverse alternative protein segment for the rapid production of high quality.
<unk> of over common in protein and enzyme.
To further accelerate our opportunity within this core vertical I'm very excited that we have initiated an animal free recombinant serum albumin and other projects to support the depth of our platform to meet the growing demand and unmet needs of alternative protein in emerging markets such as culture neat.
These projects can also provide us with additional revenue generating opportunity to serum albumin is application in research and product development.
This will be a key area of focus for Diana has we believe our DAP events microbial cell line provides our partners the ability to meet scale and cost demand.
A comment on proteins and enzymes.
Within the respective alternative protein markets and.
In addition, we are actively seeking partnerships and collaborations are non animal food proteins nutraceutical and metabolites.
Hopefully with Joe and I have been able to share with you today is how that is working to expand and accelerate our monetize of all opportunities.
Our core business segments.
Focusing our business development efforts on those business segments that are scientific advancements have the greatest ability to drive results.
We are continuing to leverage the learnings of San Juan and commercial scale industrial manufacturer to.
To accelerate the development process.
In parallel we remain fiscally responsible.
R&D partnerships and collaborations to fund the advancement of our science and critical area.
The result is at San Juan is much further along in its lifecycle development for life Sciences, and the industrial Cho cell line.
And in the same timeframe and a fraction of the cost with an equally high prospects for success.
The result of our focus is being realized.
Diana is gaining industry recognition globally to further develop the platform.
And in animal health organizations.
With that I would like to turn the call over to our CFO Kinross into run through our financials.
Thank you Mark.
This is just the financial results that I'll be discussing now.
Additional information in our Form 10-Q, which we filed earlier today.
Research and development revenue and license revenue for the third quarter of 2020 to increase to approximately $880000 compared to $693000.
Research and development revenue in our license revenue for the nine months ended September 32022 increased to approximately $2.187 million compared to $2.091 million per phone.
Okay.
Cost us in research and development that didn't work for the third quarter increased to approximately $603000 compared to $393000 for same period, a year ago cost.
Cost of research and development revenue for the nine months ended September 32020 to decrease to approximately one $419000 compared to one $613000 for the same period a year ago.
Research and development expenses for the third quarter decreased to approximately $744000 compared to $102000, but I think he ran a year ago.
Research and development expenses for the nine months ended September 32020 to decrease to approximately $3.917 million compared to five now at $900000, but its own P&L.
Okay.
The decrease in research and development expenses was due to the winding down of activities of contract research organization, and the pharmaceutical quality and regulatory consultants to manage and support the preclinical and clinical development as well as a decrease in <unk> manufacturing.
<unk> costs as the company moves toward is anticipated phase one clinical trial of <unk>, one country RPT COVID-19 booster vaccine candidate.
G&A expenses for the third quarter decreased to approximately $1.383 million compared to $1 $693000 principally in periods like that though.
G&A expenses for the nine months ended September 32020 decreased to approximately four level.
Great.
From currency.
<unk> hundred $94000.
A year ago.
Loss for the third quarter with approximately 1 billion $809000 or six cents per share compared to one.
$115000.
But it's up here a year ago.
Net loss for the nine months ended September 32022, with approximately $7 million $589000 or 27 cents per share compared to $8.856 million or 32 cents per share.
Yeah.
Our cash cash equivalents and the carrying value of investment grade securities as of September 32022, including accrued interest were approximately $14 silver.
Comparing to 24 months.
At December 31st 2021.
Based on our current plans the company has cash burn for 2022 will be much lower than ours.
Estimated range of $10 million to $11 million that was announced in March this year.
We reiterate our expectation that our existing cash cash equivalents and investment grade securities will be sufficient to fund our phase one clinical trials of <unk>.
100, and our operating expenses into 2024.
With that I will now ask the operator to begin our Q&A session.
Each caller will be allowed one question and one follow up question to provide all callers an opportunity to participate in.
If time permits the operator will allow additional questions from those who have like I spoke.
Thank you at this time, we will be conducting a question and answer session.
I would like to ask a question. Please press star.
And then one on your telephone keypad.
A confirmation tone will indicate your line is in the Christian here.
You May press Star and then two if you would like to remove your question from the queue.
Cool participants using speaker equipment, it may be necessary for you to pick up your handset before pressing the star keys.
One moment, please while we poll for questions.
The first question comes from John Marsden from Zacks SCR. Please proceed with your question John .
Hello, paying Mark Joe how are you guys doing well, let me start out with a question on <unk>.
The scientific conferences that have recently happened Mark I think you've attended several of those.
When youre going to those what are some of the trends that you've heard in the industry there might be favorable or maybe even unfavorable and then also does it give you a chance when you're there too.
Talk with potential.
Companies or individuals who might be interested in <unk> one.
Yes so.
Second half of your question, which is the easiest one hands. There is obviously I have met with numerous big pharma scientists development people that are key to big pharma and getting doors open to.
To further collaborations and license agreements.
And I would say that the level of interest in <unk>.
<unk> on the recombinant vaccine platform now.
An elevated too I think.
Significant levels in many of the fronts between several of the top 10 pharmaceutical companies, including different divisions and companies that we work with like Janssen.
But we're working with currently the therapeutic side.
So the vaccine.
Extreme interest.
To get into more details for that because of confidentiality, but I can go on and on at least high by the top 10 pharmaceutical companies have had recent discussions at some of those comp visits.
In terms of the trends, it's crystal clear that the world isn't it.
Turmoil in terms of having access and affordability and health equity.
Whether that actually plays out in the real world all the time, but I can tell you that people are starting to recognize and realize that there is a need outside of the west and a more foreign countries.
<unk>, not only vaccines or treatments for COVID-19.
Cancer rheumatoid arthritis for diabetes.
Kinds of other diseases.
So I think quite frankly that these conferences are much more important to us for the long term and developing strategic relationships scientific collaborations and putting us on higher and higher levels.
Within these companies to getting deals done and going to investor conferences.
Right, Okay and that kind of leads me into my next question, which is one of the areas that might be of interest to you guys.
I think the NIH did some work on this monoclonal antibody that would treat malaria fairly successfully I don't know if youre seeing that or not but is that something that you might pursue I'm not sure who owns the mab, but.
I mean, it seems like with your relationships in Africa, and just the prevalence of malaria in Africa that might be something that you'd be interested in does that sound like something something similar to that or that in particular came up with would you jump on that to try to see if you could work something out.
Well, we have a fairly big jump on that question is always going to fund it.
And so the issue here is I've.
<unk> already reached out to that individual scientists.
It was Bob Cedar on that paper you are talking about.
The Aruba consortium is not just interested in COVID-19 in fact their managers and other varieties anti VEGF antibody vaccines for both animals and humans, including HIV and malaria.
Well as others and they're not alone.
Right right.
Alright, well, thank you Mark I appreciate that.
Thank you.
Yeah.
Thank you ladies and gentlemen, just another reminder, if you'd like to ask a question. Please press star and then one if you'd like to ask a question. Please crystal.
And then when we will report to see if there are further questions.
Yeah.
The next question comes from Louise Chen from who is a private investor. Please proceed with your question Louis.
Thank you Hi, Hi, Mark Hi, Congratulations on a number of things number one getting your burn down and getting our revenues up that's absolutely terrific. It gives you a much longer runway congratulations on all the good scientific work Youre doing I have a pretty simple question.
You've talked about Jansen and J&J and what's going on there it's been about a year I think roughly a year since you announced that collaborations can you give us a little.
Little more color on the timing of this stuff. So we can see what we could expect.
Some results that we can look at.
Yes, so I think it's been about nine months since we've started the actual project.
With Janssen and we're talking about Janssen on the therapeutic side.
On which he intimated us something.
We're working on as well so we've improved the yield of all the proteins and its project fairly significantly so from the science perspective, the R&D teams, a chance and Diana are working well together and the progress made so far on these projects is advancing towards reaching the milestone.
Outlined in our agreement with Janssen.
Including the multiple seven figure potential milestone and eventual payments above the nine figures for each product.
<unk> product projections are reached.
It's going very well.
It's very difficult with these big pharmaceutical companies because there's a difference between what's going on with the science and the business development and those timelines sort of have to come together, but its first reaching these scientific milestones and achievements that.
We're hitting it leads to those milestones and the bigger payments and we're all looking for.
So janssen, we have a very strong relationship with them.
Scientific side.
We certainly met with them at BPI East.
<unk> was talking about these conferences.
We met with their business development.
You made the deal with <unk>.
They're all over it.
They are watching and hopefully they're expanding do you actually do more things in different sides of the business.
Surprised all of us at becoming even faster.
Thank you that's very useful I appreciated it.
Within the next 12 months, we'll start seeing them.
Remember correctly they were.
We're going to pay us $5 million for each one there were two things we're working on a regular basis $5 million upfront on each one court would that set.
Well I'm not quite sure what you mean.
Great.
Gateways I was getting at it.
The point I'm getting at is when would we expect to see the $5 million on each of these products.
Yeah, I mean honestly, we can't give you a projected timeline.
Our timeline, but if you remember you know they they gave US 500000 cash upfront to funding up to $1 $6 million in R&D revenue and then let's talk about to your point on exercise of an option we would receive a mid seven figure.
And additional non exclusive target.
And then another mid seven figure or the bringing the technology in our technology.
Technology transfer.
And then single digit.
Seven figures are doing technology transfer Ravi first project going in and then of course up to nine figure nine figure payments overtime on the backend and achieve their productivity.
Activity goals.
And sales on the products produced.
We don't expect.
Technology is going to end with a few different proteins.
Hopefully they'll adopt it and bring it in in addition to the incredible opportunity that we're talking about here.
This can just be leveraged into more and more opportunities within both sides are there.
Thank you.
All the time that kind of a protein time and potentially even on me.
And let's say the recombinant protein vaccine time.
Okay. Thank you very much I appreciate it.
No problem. Thank you.
Okay.
Thank you there are no further questions I'll now turn the call is that she diotic CEO , Mr. <unk> for closing remarks.
Sir.
We are proud of our scientific advancements and achievements in 2022.
Most significantly the dyadic has received regulatory approval to initiate a phase one clinical trial to demonstrate clinical safety and antibody response in humans for the <unk> 100, COVID-19 are common in protein IBD booster vaccine candidate.
We believe this first in human safety data for <unk>, one produced protein on the <unk> platform. In addition to the continued advances in productivity quality and efficiency will help to accelerate the adoption and use of the <unk> protein production platform within the human pharmaceutical.
History to the benefit of patients across the globe.
We're not only focused on improving the value of Diana for the life science industry.
And in turn improve value for shareholders, but will also improve access.
Portable vaccines and therapeutics.
Population in developed and emerging nations.
The reorganization of our infrastructure and focus strategy has prepared dyadic for exploiting existing and new commercialization opportunities to enable us to fulfill our mission as a global biotechnology company in order to improve the way, we feed fuel and heal the world.
Thank you once again for joining us on today's Q3 2022 conference call and we look forward to keeping you updated as we advance our commercial and scientific initiatives across the company and our collaborators programs.
Also look forward to seeing you on the next call and I Hope you keep an eye out for our periodic updates.
Thank you very much for this conference has now concluded. Thank you for attending today's presentation and you may now disconnect your lines at this time.
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Okay.
Okay.
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