Full Year 2024 Dyadic International Inc Earnings Call
Uh huh.
[music].
No.
[music].
Good evening.
Speaker Change: And welcome to the dyadic internationals at year end 'twenty 'twenty four conference call. Currently all participants are in a listen only mode. Following management's prepared remarks there'll be a brief question and answer session.
A reminder, this conference call is being recorded.
Speaker Change: March 26, 2025, I would now like to turn the call over to Mr. Ping Rawson Biotics Chief Financial Officer. Please go ahead.
Speaker Change: Thank you good evening and welcome everyone to Diavik International full year 'twenty 'twenty four conference call I Hope you have had a chance to review that express releases announcing financial results for fiscal year ended December 31st 2024, you.
Speaker Change: You may access our press release on Form 10-K, and or the investors section of the company's web site at Diotic Dotcom.
Mark: On today's call are president and CEO, Mark <unk>, and our Chief operating Officer, Joe Hazelton will give a review of our 2020 for business and corporate highlights and provide a commentary on the strategic direction of the business.
Speaker Change: I will follow with a review of our financial results in more detail. We will then hold a brief question and answer session.
Speaker Change: At this time I would like to inform you that certain commentary made in this conference call. Maybe considered forward looking statements pushing involved risks and uncertainties and other factors that could cause biotics actual results performance scientific or otherwise or achievements to be materially different from those.
Speaker Change: Breast or implied by these forward looking statements.
Speaker Change: <unk> expressly disclaims any duty to provide updates to its forward looking statements, whether because of new information future events or otherwise.
Speaker Change: Participants are directed to the risk factors set forth in Biotics reports filed with the as you see.
Speaker Change: It is now my pleasure to pass the call to our CEO Mark in Fox.
Speaker Change: <unk>.
Mark Fox: Thank you Peter welcome everyone and thank you for joining Guyana full year 2024 conference call.
Mark Fox: We're excited to share how our strategic focus on near term product commercialization and technology licensing.
Mark Fox: His position Diana to capitalize on the current and emerging opportunities.
Mark Fox: In 2024, we delivered strong revenue performance.
Mark Fox: Clothing, $1 9 million in milestone and license payments driven by our emphasis on products that do not require human or animal clinical trials for commercialization.
Mark Fox: These results reflect our commitment to unlocking the full potential of her.
Mark Fox: Terry Tijuana damper this microbial protein production platforms.
Mark Fox: These platforms are enabling us to generate immediate revenue to high value alternative protein applications, including recombinant human albumin transferring teenage one alpha lactalbumin.
Mark Fox: At the same time, we're advancing mid and long term opportunities.
Mark Fox: Human and animal health by applying our platform to develop anti <unk> antibodies enzymes and other proteins to address critical needs in life Sciences, food and nutrition and bio industrial markets.
Mark Fox: Our dual track strategy commercializing near term non pharmaceutical products are building a robust biopharmaceutical pipeline continues to drive value.
Mark Fox: We are strengthening our global impact through partnerships with academia industry government, and leading nonprofit and public health organizations.
Mark Fox: We're proud to be working with the coalition for epidemic preparedness initiative Seppi Foundation biotech topology, Sienna and the Gates Foundation and a growing number of other collaborators to accelerate the development and adoption of our <unk> platform for vaccines and treatments supporting global health.
Mark Fox: <unk> preparedness and access to affordable biologics.
Mark Fox: As we move forward to act remains deeply committed to delivering sustainable value to our shareholders and partners.
Mark Fox: With a growing pipeline a strong network of collaborators and platforms built for efficiency and scalability, we are well positioned to lead in the global production of enzymes alternative proteins and biopharmaceutical meeting the demands of today and shaping the solutions of tomorrow.
Speaker Change: I would now like to turn the call over to our Chief operating Officer, Joe Hazelton, but nothing.
Speaker Change: Did you build the 'twenty 'twenty four.
Yeah.
Mark Fox: Thank you Mark 2024 was a transformative year for <unk> International as we advanced our mission to improve global access to affordable high quality proteins through our <unk>, one and that provision microbial protein production platforms.
Mark Fox: Dyadic remains committed to human and animal health platform and product opportunities for mid to long term growth today I want to emphasize our progress and near term revenue potential and a non pharmaceutical and reagent product markets, which continued to show robust momentum in commercial readiness across our three areas of focus in alternate.
Mark Fox: Proteins life science, food and nutrition and bio industrials.
Mark Fox: We're making strong strides toward commercializing several cell culture media components, each addressing growing industry demand for animal free cost effective and high performing alternatives in the life science segment of alternative proteins.
Mark Fox: Covenant human serum albumin or HSA being developed through our partnership with <unk> health and biologics is on track for commercial launch in 2025.
Mark Fox: Our HSA as a foundational product for diagnostics bio production and vaccine formulation are.
Mark Fox: Our recombinant transferring products is also progressing well with active partner engagement and sample distribution underway.
Mark Fox: An initial cell proliferation studies that extra recombinant transform protein demonstrated comparable performance to recombinant referenced standard highlighting its potential as a high quality cost effective non animal alternatives for research and commercial bio processing applications and we are currently exploring opportunities for scale up.
Mark Fox: Licensing.
Mark Fox: Furthermore, dyadic has advanced into development of recombinant fibroblast growth factor FGF products for cell culture media and biopharmaceutical applications as a critical driver of <unk> growth and proliferation, where common FTF plays a central role in bio manufacturing regenerative medicine and cell based therapies.
Mark Fox: Particularly in serum free and Kevin will be defined cell culture media.
Mark Fox: Initially cell proliferation initial cell proliferation studies have demonstrated that that extra comment FGF products exhibit comparable performance to reference standard recombinant fts.
Mark Fox: In addition to further characterization validation efforts sampling initiatives are expected to begin in Q2, 2025, B cell culture media could collins' position diotic to capitalize on growing bio production needs with high quality non animal cost advantaged solutions.
Mark Fox: The alternative protein food and nutrition space.
Mark Fox: And it gives a marquee new opportunities across non animal dairy nutritional science and research applications. We are actively developing high value covenant way and the other proteins, including Alpha Lactalbumin casings and human Lactoferrin, all of which are in high demand for use in infant nutrition functional foods.
Mark Fox: Wellness products and pharmaceutical applications sampling and optimization efforts are ongoing with increased interest from potential collaborators across the R&D non animal dairy sectors.
Mark Fox: These proteins offer a sustainable animal free alternative to traditional dairy based ingredients addressing a growing consumer and industry shift towards ethically sourced and health promoting proteins.
Mark Fox: In parallel our dairy enzyme portfolio is progressing rapidly through our partnership with an EU based commercialization partner in.
Mark Fox: In 2024, we achieved our productivity milestone of $425000 for one of our recombinant Gary enzymes with the commercial launch anticipated in late 2025.
Mark Fox: Additional enzymes are in development under our licensing agreement signed in 2023, expanding our reach into dairy processing functional ingredient applications.
Mark Fox: Gather these programs provide dynamics with a strong foothold in the expanding animal free dairy, especially nutrition markets, where the demand for scalable functional and animal free protein solutions continues to accelerate.
Mark Fox: Diana is also making significant progress in the life Sciences segment of alternative proteins business with the development of a suite of DNA and <unk>.
Mark Fox: RNA related reagents enzymes, which are natural and strategic fit for our proprietary platforms. One of the leading candidates in this vertical is our RNA ish free dnas, one enzyme which is now in the final stages of process validation.
Mark Fox: We're actively partnering with a European contract development and manufacturing organization, where C. D M O to initiate research grade production.
Mark Fox: Enzyme serves a broad range of applications, including molecular diagnostics gene therapy, and biologics manufacturing, where high purity and consistency are essential.
Mark Fox: In addition to DNA Swat static is expanding its enzyme portfolio with a development or additional reagents, including Rnase inhibitors and T. Seven RNA polymerase. These are foundational tools DNA and RNA manipulation in vitro transcription and next generation sequencing workflows, which are.
Mark Fox: Key technologies that support genomic research therapeutic development and synthetic biology.
Mark Fox: Early development and optimization efforts are progressing with initial data and validation results expected by the end of 2025.
Mark Fox: This reagent enzyme market offers by adding a scalable recurring revenue opportunity with relatively low regulatory hurdles and a shorter path to market compared to traditional biopharmaceutical products, enabling faster commercialization and greater near term impact across our life Sciences sector.
Mark Fox: Diana is also advancing its presence in the bio industrial sector alternative protein segment, where our gap of this protein production platform is being leveraged to support sustainable large scale enzyme solutions across multiple industries.
Mark Fox: In 2023, we entered into a development and commercialization agreement with firm box Smile, a synthetic biology research that manufacturing company.
Mark Fox: This collaboration led to a significant milestone in may of 2024 with the launch of Ns reside and enzyme cocktail produced using Diavik staff with this platform entries, specifically designed to enhance the efficiency and cost effectiveness of converting pretreated agricultural residues into for vegetable cellulosic.
Mark Fox: <unk>, which is a key part of the critical processes in the production of renewable chemicals, Biofuels and other bio based products.
Mark Fox: This partnership I think has continued to develop a broader portfolio of enzymes with potential applications across a wide range of industrial markets, including nutrition biogas production Biofuels and bio refining.
Mark Fox: These enzymes are currently being sampled and evaluated by interested commercial partners as we work to identify optimal fits for industry specific use cases. This segment represents a promising area of growth, where we believe our platforms can contribute to reducing reliance on fossil fuels and improving the economics of sustainable industrial.
Mark Fox: Processing.
Mark Fox: While the alternative protein segment drives near term focus and revenue our longer term value in human and animal health is supported by our ability to partner with leading global institutions.
Mark Fox: As part of our ongoing strategy to expand the reach and impact of that platforms. We continue to strengthen our position through strategic kras and non dilutive funding partnerships that support long term innovation.
Mark Fox: Last week, we announced a significant milestone with the receipt of a four and a half million dollars grant from the coalition for epidemic preparedness innovations or seppi awarded to Raytheon biotech with Poland, Sienna or Sps to accelerate the development and manufacturing of recombinant proteins vaccines using that exceed one platform.
Mark Fox: With the projects already underway. This funding will support key steps, including antigen design cell line development process optimization product characterization and scale cgmp manufacturing.
Mark Fox: As a subcontractor on this initiative is expected to receive $2 $4 million of the total grants them out.
Mark Fox: In November of 2020 for Diavik was awarded a $3 million grant from the Gates Foundation to support selling development for monoclonal antibodies.
Mark Fox: Respiratory syncytial virus or RSV and malaria.
Mark Fox: These programs powered by our <unk> protein production platform are focused on delivering affordable scalable solutions for treating infectious diseases.
Mark Fox: Served populations further aligning our work with global health priorities.
Mark Fox: In collaboration with SBS and other partners Diavik has also submitted multiple new grant applications aimed at expanding the development and adoption of the <unk> platform across additional vaccine in antibody programs.
Mark Fox: A recent example on March 23rd Cepheid announced the award of a $2 $6 million Grant to you back style. This funding will support the development of our Mers vaccine in research to assess the capability of the <unk> platform to speed vaccine production and lower manufacturing costs, improving access to vaccine doses.
Mark Fox: In the future.
Mark Fox: These ongoing efforts not only bring in meaningful financial resources to advance research and development, but also enhance our global visibility and validate the competitive advantages of our platform and addressing urgent health challenges worldwide.
Mark Fox: Diana continues to advance its pipeline of innovations in both animal and human health, demonstrating the versatility and rapid development capabilities of seawater.
Mark Fox: And collaborations gear box, we're developing <unk> produced self assembling fair to nanoparticle antigen targeting H, five avian influenza or bird flu.
Mark Fox: Essentially use of diagnostics and vaccines across poultry cattle humans in companion animals.
Mark Fox: With the ongoing virtual outbreak poses significant risk to both agriculture and public health. We are actively conducting pre commercial research and validation to support potential strategic partnerships and licensing opportunities.
Mark Fox: R M pox vaccine or monkey pox vaccine.
Mark Fox: Canada also developed in partnership with <unk> is an early stage preclinical development.
Mark Fox: This project not only expands our infectious disease portfolio, but also provides further validation of the <unk> platform's ability to rapidly produce cost effective non mrna vaccine candidates.
Mark Fox: In diagnostics and vaccine research or <unk> produced adjuvant at fair to nanoparticle H five to $3 4.4 be a astrakhan vaccine has shown cross protection against multiple H five buyers strengths in early studies.
Mark Fox: Poultry early trials demonstrate the generation of neutralizing antibodies supporting the potential for commercial viability and both vaccine and diagnostic applications and cattle preliminary diagnostic and vaccine data have shown similar cross protective potential opening the door to a broader addressable market livestock health segment, where.
Mark Fox: Also we have also expanded our collaboration with phibro animal health or a big biological laboratories to develop vaccines for diseases affecting livestock animals. This partnership strengthens our strategic position in animal health and further supports the application of <unk> as a cost effective and scalable solution.
Mark Fox: These programs static is also successfully express high yield high purity RSV F farmer antigen, along with several other agencies of monoclonal antibodies. These developments further validates the flexibility and efficiency of the <unk> platform and address a wide range of human and animal health challenges, while continuing to support our long.
Mark Fox: Returned biopharmaceutical pipeline.
Peng: With that I will turn the call over to our CFO <unk> to cover our financials Peng.
Peng: Thank you Joe. Thank you everyone for joining our call today I will now go over our key financial results for the year ended December 31, 2024 in more detail you can find additional information in our earnings press release and Form 10-K, which we filed earlier today.
Peng: As of December 31st 2024, we had cash cash equivalents and investment grade securities of approximately $93 million compared to $7 $3 million as of December 31, 2023.
Peng: Revenue for the year ended December 31, 2024 increased to approximately 3 million and $495000 compared to $2 million $899000 for the year before.
Peng: The increase is driven by the license revenue of 1 million from per line and approximately $890000 from enzymes, including success fees in 2024.
Peng: Most of our research and development revenue for the year ended December 30, 31, 2024 decreased to approximately $1.195 million compared to $1.976 million for the year before.
Peng: The decrease in cost of revenue was due to higher individual contract amounts of certain research funding and related work performed during 2023.
Peng: R&D expenses for the year ended December 31, 2024 decreased to approximately $2.044 million compared to $3 million $297000, but a year before.
Peng: The decrease was due to the completion of the company's phase one clinical trial of <unk> hundred COVID-19 vaccine candidates.
Peng: G&A expenses for the year ended December 31, 2024 increased to approximately $6.135 million compared to $5.817 million, but a year before.
Peng: The increase reflected increases in business development and Investor relations expenses of approximately $294000 share based compensation expenses.
Peng: $109000 professional service expenses of $82000 and other increases.
Peng: Partially offset by decreases in management incentive expenses of $124000 legal expenses and insurance expenses.
Peng: Loss from operations for the year ended December 31, 2024 was approximately $5.901 million compared to $8 million $230000 before.
Peng: Before net loss for the year ended December 31st 2024 was approximately $5.809 million or <unk> 20 per share compared to a net loss of $6 million $795000 or 24 cents per share for the year before.
Peng: As previously disclosed the company was awarded a 3 million grant from the Gates Foundation in November 2024. Additionally, in March 2025 partners received the two otherwise from staffing to support key one antigen development and accelerate advancement.
Peng: The C. One platform from which we expect it to receive additional funding.
Peng: These initiatives are expected to create additional revenue growth opportunity in 2025.
Speaker Change: Now I will ask the operator to begin our Q&A session after which mark will.
Peng: We will provide closing remarks.
Peng: Later.
Speaker Change: Thank you we will now be conducting a question and answer session. If you'd like to ask a question. Please press star one on your telephone keypad, a confirmation tone will indicate your line is in the question queue. You May press star two to remove yourself from the queue for participants using speaker equipment may be necessary to pick up the handset before pressing the star keys, one moment, while we poll.
Peng: Questions.
Speaker Change: Okay. It looks like our first question comes from John Benda, Molson with Zacks small capital Research. Please proceed with your question.
John Benda: Great. Thank you and how are you doing mark pinion Joe.
Speaker Change: Alright. Thank you start out with a question on the Gates Foundation and Seppi grants it seems like Theres a lot of interest in the menu.
John Benda: I heard you mentioned that there were some other.
Speaker Change: There are grant applications that you had made.
Maybe you can reconcile a I guess, how the gates foundation fits in and some of those grants are in that area and also the.
Speaker Change: Their their interest in C. One because it seems like they've done a number of things that recognize its value.
John Benda: Thanks, John.
Speaker Change: So to address your first question, yes, we have a number of additional grants.
John Benda: Andrew our collaborators black.
Speaker Change: Your line is embedding program.
Speaker Change: Both <unk> and <unk> as well as other nonprofit organizations government grants in different countries.
Speaker Change: So.
Speaker Change: You can tell by the gates, giving us the $3 million grant and a significant interest we've been having a.
Speaker Change: Calls with them already I think.
Speaker Change: Okay.
Speaker Change: And the work we're doing competitive hotels have traditionally used to seeing with the monoclonal antibody.
Speaker Change: Dave You mentioned, how surprised they were all cash we were ready.
Speaker Change: Performance.
Speaker Change: And Stephanie we're just getting started but I think the key here.
Stephanie: Thank you pointed out.
Stephanie: These are two of the largest nonprofit funding organization on the planet.
Stephanie: To think he's an antibody.
Stephanie: Global Health.
Stephanie: Thanks.
Stephanie: Money that we're getting directly and prudently.
Stephanie: Foundation by quality.
Stephanie: Yes.
Stephanie: Thank you grant announced yesterday by Stephanie.
Stephanie: That file.
Stephanie: These are driving forward the innovation.
Stephanie: And the advancement of our platform not only to make it quicker faster better cheaper.
Stephanie: Quite frankly, it's already producing at <unk>.
Stephanie: Market or a level of SaaS.
Stephanie: Yes.
Stephanie: Bringing adoption and use.
Stephanie: Pension products.
Stephanie: What is the human beings at some point.
Stephanie: Relatively we hope will turn into lifesaving medicines that we can make.
Speaker Change: <unk> shareholders.
Stephanie: Shareholders and bring global health.
Speaker Change: And then on the animal health side.
Speaker Change: Temporarily as Joe mentioned is advancing towards commercialization.
Speaker Change: One or two of the animal health vaccines and as you know with the <unk>.
Speaker Change: USAA, just announced recently the $1 billion and funding for potential <unk>.
Speaker Change: Women health or animal health and $100 million of that is partly going to be assigned potentially for vaccines and we actually got notice yesterday from them.
Speaker Change: A potential opportunity to fight for that brand, which we intend on evaluating and potentially doing at our own NRI in collaboration with academic and industry and nonprofit organizations. So hopefully that gives you a flavor for the Faq and quite frankly, we're seeing more interest in our platforms our techs.
Speaker Change: <unk> and the products, we're producing and we've ever seen.
Speaker Change: Okay, and we're also excited about the albumin sales and Joe I think last time, we spoke a couple of months ago, you were walking through some of the steps that you needed to complete before getting that first product revenue dollars to the door can we revisit kind of how you've come along since then and it seems like you know maybe in the next weeks or months or so yeah that that.
Speaker Change: That that milestone may happen to getting that dollar through the door.
Speaker Change: Can you update us.
Speaker Change: Yeah, absolutely John first of all thanks again for the questions always appreciate your perspective on these things and when you look at the albumin market. Obviously, we're excited to enter into commercialization.
Speaker Change: I think the key for US is continuing to rapidly accelerate scale up and we're doing that in conjunction with Hawaiian biologics. We have made progress and obviously, we have to do it right. It would have to make sure. The products validated QC testing is done and it's produced according to the right specifications in order to have a successful launch.
Speaker Change: Starting to sample that still going to be the first year, which we do hoping it will be happening very soon.
Speaker Change: Again, we remain committed to pushing on and hopefully commercializing and Earl.
Speaker Change: 2025, so we're we're still pushing it it's all about scale up and making sure that product is qualified and that just takes time, there's really no shortcuts you can take it it's kind of like let's say developing a drug but in some instances you do have to make sure you meet the right product specifications, especially if you want your customers to be switching to a <unk>.
Speaker Change: <unk> products versus let's say, an animal derived do you want to make sure everything is.
Speaker Change: Basically all set in all systems point to go before you put the product on the market.
Speaker Change: That's something that's something is wrong. So we're just making extra sure.
Speaker Change: Doing all of the cost qualifications and QC to make sure that these products are high quality high purity and it doesn't meet our customers' needs and again, hopefully we still continue to push it commercialized as quickly as possible.
Speaker Change: Okay, great. Thanks, I'll hop back in line.
Speaker Change: Thank you.
Speaker Change: Alright.
Speaker Change: Yeah.
Speaker Change: Our next question does come from Vernon Bernardino with H C. Wainwright. Please proceed with your question.
Vernon Bernardino: Hi, everyone. Thanks for taking my question and congratulations on a great quarter and.
Speaker Change: Getting this stuff.
Speaker Change: Okay.
Speaker Change: I was just wondering if you.
Speaker Change: Can help us a little bit with.
Speaker Change: Determining the cost of research and development revenue just wondering if you could.
Speaker Change: Talk a little bit about the components.
Speaker Change: Help us how to figure that out.
Speaker Change: Well I think the important part is 80% of the research and development.
Speaker Change: These are covered by somebody else with some profit margin built in for us.
Speaker Change: So it's equity grants that are $4 5 million of which we're going to get to more directly.
Joe Hazelton: <unk> 5 million is all going towards developing <unk> as Joe pointed out.
Joe Hazelton: Phase one launching capabilities.
Joe Hazelton: Increasing the speed to keep up with mrna proteins and vaccines, we believe actually that we can.
We can do that and we've demonstrated that we can create stable cell lines already within 21 days and.
Joe Hazelton: Very fast in a very productive and then mass producible at very low cost without the need for cold extreme cold chain storage.
Joe Hazelton: But I think the point here is all of that money is advancing this platform in innovation and driving it to the point, where adoption and use in big pharma and governmental agencies academia and I'll start by putting the gene into a cell line and la <unk> bio.
Joe Hazelton: Sheppy Grant that was announced yesterday, where theyre getting $2 6 million.
Joe Hazelton: And Stephanie to advance the <unk> program, we're going to produce the antigen that goes in there that's going to be ultimately a vaccine.
Active component that a vaccine setting.
Speaker Change: More of these opportunities we get more demonstration of safety efficacy speed yield Cos and momentum is building and it's accelerating and as we mentioned in the past Reno wrap Uli is one of the godfathers it a vaccine space. He's the head of the foundation of biotech apology Sienna.
Speaker Change: Us longer than we expected to get embedded there, but he is now promoting our technology for over a year and a half to a variety of different government organizations pharmaceutical companies.
Speaker Change: EMEA et cetera, and we expect more things to come from that collaboration and the not too distant future.
Speaker Change: Great as a follow up on the.
Speaker Change: Grant.
Speaker Change: The grant is.
Speaker Change: <unk>.
Speaker Change: Right.
Speaker Change: Yeah.
Speaker Change: The press release said that.
Speaker Change: Yes, a few on produce protein engines can be compared to traditional mammalian approaches.
Speaker Change: Just wondering.
Speaker Change: What is FBS has experienced with that and when can we see.
Speaker Change: From their work.
Speaker Change: Well SaaS experience is probably 30 years with <unk> is a former GSK chief.
Speaker Change: Chief Scientific officer, and Novartis before that if chiron before that as I mentioned he is like one of the others.
Speaker Change: Vaccinology, he's probably taking 10 or 12 drugs.
Speaker Change: <unk> into commercialization over time.
Speaker Change: So the good news is that we've seen already in an another funded program.
Speaker Change: We've actually worked with UC Davis, and we're working on a publication Mtc when produced full spike protein actually performed virtually identical to the XL protein.
Speaker Change: So we're expecting very good results.
Speaker Change: That program very soon.
Speaker Change: So the comparison be in vitro.
Speaker Change: Hum.
Speaker Change: Number.
Speaker Change: No it would be in animal models, which is what we've already done.
Speaker Change: So you'll see when the publication comes out and we can virtually make same thing same quality same efficacy to SaaS or quicker and cheaper without the need to do viral clearance. So in the downstream we can speed it up with less cost in the upstream we could blow it away in terms of speeding cost and we've already seen it.
Speaker Change: And the mice trials.
Speaker Change: Have been compared head to head at least for the micro needle approach and we were equal to the XL, which is actually human zelle, which is actually better than the chosen.
Speaker Change: Great. Thanks for taking my question and congrats again.
Speaker Change: I'll get back in the queue.
Speaker Change: Thank you.
Speaker Change: As a reminder, if you'd like to ask a question. Please press star one on your telephone keypad that is star one.
Speaker Change: And our next question comes from John vendor Molson with Zacks small capital Research. Please proceed with your question.
Speaker Change: Great. Thank you.
Speaker Change: So you had mentioned that by year end that you may begin commercialization of the dairy enzyme can you also walk me through the steps there kind of like you did with the.
Speaker Change: With the album in what what needs to get done before again that first dollar can flow through the door.
Joe Hazelton: Sure John It's Joe again thanks.
Speaker Change: It's similar I guess, a little bit too. It's a research grade in terms of it does require some level of regulatory oversight and in cases of food proteins or enzymes, depending on the market youre launching into full Europe, it's part of the EMA.
Speaker Change: With food type of food proteins in the U S. It's grass. So essentially the product has been filed for social funds glass application that should hopefully be I think it is submitted and once that is clear then they just do the final testing and production and then they were able to put it on the market. So similar.
Speaker Change: The steps, obviously, you need to scale up prove the quality in some cases like in the EU you need to do animal testing.
Speaker Change: <unk> proteins are feed enzymes versus the U S, where it's a little less stringent in some cases, but overall, it's a slightly different job less intrusion regulatory pathways, a little quicker, but you still do have to make sure that you.
Speaker Change: Follow the process development and scale up and then ensure the quality of the product.
Speaker Change: Great moving out the door. So right now as it is scaling up any food grade production facility, they're parallel tracking the grass applications. So that's essentially the main process.
Speaker Change: Okay.
Speaker Change: One other question for you on productivity do you have the numbers in terms of grants for liter per day for the various applications that you have the human slash animal albumin the transfer in.
Speaker Change: And the growth factor is kind of what's the relative.
Speaker Change: The efficiency of those in terms of Gram per liter per day or whatever.
Speaker Change: Time periods, you're using.
Joe Hazelton: Hey, Joe.
Speaker Change: Someone asked proprietary information.
Speaker Change: No.
Speaker Change: Leave it to be obviously is high enough that we are gaining commercial traction and I'm glad you brought up transfer and in growth vectors DNA is one Appalachia albumin.
Joe Hazelton: Joe maybe you can expand on it.
Speaker Change: The excitement and interest and progress we've made on all of those products, maybe one by one.
Speaker Change: Yeah, I think the key John as you look at it in terms of productivity is that we are able to basically make better margins than traditional recombinant products on the market today due to our productivity in March right, we can't get into the specifics, but suffice to say that the interest.
Mark Fox: We're receiving in our non pharmaceutical applications as Mark mentioned, whether its transfer and cell culture media is due to the high productivity. These enzymes and cell culture, <unk> proteins and cell culture media like albumin like transfer there are thousands of dollars per gram or even in some cases per microgram. So it is very important.
Speaker Change: And that we're able to use the productivity of the system to help.
Speaker Change: To bring our costs down enables commercialization like cell culture media can be used in pharmaceutical development when manufactured cgmp levels, but it's way too expensive for markets like cultured meat and the nice thing about the cell culture media markets that we're entering into is it does serve two different two different areas of the <unk>.
Speaker Change: Business, whether it be production of lab grown meat or.
Speaker Change: Growing chose cells to manufacture biologics.
Speaker Change: Essentially we're able to use these portfolios and cell culture media.
Speaker Change: You will find directions, basically expanding in some cases, doubling and tripling our potential profit margins in these markets and we're making great progress in the testing as Mark had mentioned.
Speaker Change: Transferring our growth factors being able to demonstrate that we can grow animal cells.
Speaker Change: Just like the products are using today, except at much higher much higher yields and potentially much lower prices.
Speaker Change: Very interesting and that's what's driving really with unprecedented interest that we're getting in the platform right now not just the alternative protein space also in the pharmaceutical space. So I think again.
Speaker Change: You can't get into the specifics, but if you look across these products. They are all moving forward as quickly as possible and that is going to be our focus as commercialization of products either ourselves or through partners.
Speaker Change: Mark mentioned Tas, one we're getting ready to partner with them, where we're partnering with <unk> to scale up a research grade production of DNA is one that we can begin to commercialize ourselves or sell in bulk to others to sell so I think were positioned correctly in the right high value segments. That's just obviously, making sure that we continue.
Speaker Change: And to develop these products as quickly and efficiently as possible.
Speaker Change: Okay, great. Thank you.
Speaker Change: Thank you and our next question comes from <expletive> Williams with Williams Resource Group. Please proceed with your question.
Speaker Change: Hi, gents.
Williams: Wanted to touch on a couple of things having been a shareholder for a great number of years and gone through the projects that didn't really materialize.
Williams: It seems that Zap. The AR was one for five years, we were picked as the best technology for the future.
Williams: It seems it was unanimous then of course that the whole group, including Astrazeneca has really not done anything.
Williams: But it appears that the.
Williams: So IP is something that will happen.
Williams: Yeah.
Williams: The one other factor with the simply release was also had put out a release that I got buried in there are material.
Williams: With new facts, where they mentioned that they had given him the $2.6 million, but also in the vaccine development whatever it is for us.
Williams: Is that they would be using.
The C one manufacturing.
Williams: System for whatever it was which obviously gave us.
Williams: Some good accolades it didn't get much attention, but it was very but that was significant in allowing finally have an opportunity with an organization that.
Williams: Appears to be making product that will be sold then we'll start to get revenue because.
Joe Hazelton: I think Joe.
Joe Hazelton: In terms of your area. It's so significant if we were to dissect it down to try though.
Joe Hazelton: Steve where the revenue stream opportunity comes from some of these various products and the margins I mean, we'd probably be on the songs for hours, but.
Joe Hazelton: Can you give us an idea as to the market size opportunity and some of the segments in your area that you mentioned as well as Prolia.
Joe Hazelton: I've checked that Prolia and that's a very large corporation. This isn't in a mom and pop guys.
Joe Hazelton: So they have a full worldwide sales force several manufacturing facilities.
Joe Hazelton: Theyre going to launch a product.
Joe Hazelton: But we will get revenue from it.
Joe Hazelton: In a matter of months I presume I, we don't have a date, but I believe its somewhat in a matter of months.
Joe Hazelton: This is serious revenue that could slow to us and probably the most immediate revenue Flores of size.
John Benda: So can you give some more color on where that is I know you talk to John about.
Joe Hazelton: The.
Joe Hazelton: Research aspects and the technical aspects.
Joe Hazelton: Like to hear about the money aspects profit motives and revenue streams that can come in from all of these projects.
Speaker Change: This will be the refreshing part of the new dyadic, what five years always heard was research projects with no revenue. We finally have arrived that coin well now we can produce revenue for all of the stakeholders as well as with the peak one wall Street give the recognition we so truly deserves.
Joe Hazelton: Okay.
Joe Hazelton: Before Joe.
Joe Hazelton: Dissect that and then the other thing excuse me. There's another factor that has kind of gone I think falling by the board because we're doing so many things I always see these market opportunities.
Joe Hazelton: But I was around five six years ago. When this company did upwards of close to $100 million over I forget what period of time and the bio industrial sector.
Joe Hazelton: Real revenue produced by Mark before Joe drawing with this new area.
Joe Hazelton: Well in that area I understand is blossoming again and one of them is in the opportunities for us to go back into.
Speaker Change: And offer the products, we now have for that industry. So can you give some color on where we are what type of an asset mark youre going to put forth to go back to your old people and get some serious revenue from them.
Speaker Change: Yes, let me answer the first question.
Joe Hazelton: So a mouthful, but.
Speaker Change: Alright, okay.
Speaker Change: So I love you and we appreciate your thoughts Youre a great supporter, we love all our.
Speaker Change: Our shareholders.
Speaker Change: Partners and employees.
Speaker Change: Just realize onto the last nine years, we developed platforms first.
Speaker Change: Pharmaceuticals to revolutionizing transform speed cost and yield.
Speaker Change: Release.
Speaker Change: And you have to have a platform. If we can make a product you can't make a product and an inefficient platform are you going to fall short.
Speaker Change: People are going to die or suffer.
Speaker Change: Which is what's happening in the world.
Speaker Change: And we took the time and effort to do it right and we've got a ton of funding from pharmaceutical companies.
Speaker Change: Some of our own money on it.
Speaker Change: We get funding from governmental agencies.
Speaker Change: The Israeli government yet the ERP program, you had all kinds of things coming into advanced it to make you can wake up the gates Foundation. So can you just wake up yesterday, we've been talking to these people for years.
Speaker Change: He got to the point that they recognize that we actually have the keys to the kingdom to really improve speed yield cost and release.
Speaker Change: Just pandemic when we're talking about traditional oncology drugs alright.
Speaker Change: Dementia.
Speaker Change: Alzheimer's you name it we can probably make it in a more efficient way and lower cost faster and once we get these things into the clinic and through the clinic. The doors you can open up so if you don't have a platform you can't do anything so.
Speaker Change: We haven't just been Twilling guys.
Speaker Change: And these guys can just show up they showed up because we actually did what we said we were going to do and we did it for a fraction of the cost and most other people would have done.
On the industrial side or the alternative protein and Joe is going to answer all those questions. We started with death of us to do the same thing at an accelerated pace, taking the learnings and education that we have.
Joe Hazelton: Our CD mowers and research partners have and we brought this out very rapidly very quickly.
Joe Hazelton: You pointed out to go after an industry, that's even more valuable than we did before when we generated $35 million.
Joe Hazelton: Let's say dilutive funding from shell Amigo Bios.
Joe Hazelton: PSS and then the $75 million in Dupont, but alternative proteins for Alpha lactalbumin for <unk>.
Joe Hazelton: <unk> for FTF for Dna's, one sales margins are much higher than what we had in the industrial section, albeit we are going after some of those industrial products.
Joe Hazelton: Joe will talk about here. So now I'll, let you go without these platforms.
Joe Hazelton: Wouldn't be making anything in our customers, who are making entity it would be commercialized.
Speaker Change: Let's just leave it there and Joe maybe you can jump in.
Joe Hazelton: Yes.
Speaker Change: Ricky I think you hit the nail on the head, though the markets that we're entering into are by design and Theyre high value markets, where our technology has a significant advantage in terms of its productivity.
Speaker Change: Look at the human albumin market, that's roughly a $5 $6 billion market I believe it's growing at double digits per year, and that's driven by a lot of the increase in the amount of vaccines being produced just in human health, but also in animal health.
Speaker Change: And as we look to some of the other markets like DNA Swan and other RNA DNA and RNA enzymes, that's a DNA or the end of the <unk> market.
Speaker Change: DNA ligase market is around $900 million and again, it's growing at almost double digits I believe a year as well we look at things like non animal dairy proteins, that's a $26 billion market.
Speaker Change: And that's where like Alpha lactalbumin lactoferrin those things in place each of these products also has a distinct.
Speaker Change: All of them, but some of them have a distinct market like aflac oven. It doesn't just play in the non animal dairy space, but also potentially can play in pharmaceuticals, and it places a research right agent for nutritional and biochemical studies. So each one of these products as different markets, but I think the key that I want to add.
Speaker Change: Besides those even though.
Speaker Change: We're in all of these markets, we're developing products for high value segments. What we do remains to say, we develop cell lines, but that's what we do we take a DNA sequence and we put it into a cell lines. So we're while we're targeting multiple areas.
Speaker Change: We're targeting the right partners as you mentioned with the client health and biologics. They are a major player on the albumin space.
Speaker Change: Look at <unk>, you look at <unk>, we are targeting the right partnerships and the right potential partners for these products because we can't do it. This is Diana and I think that's the key what were doing remains the same and we're staying focused on that and that is trading products in these non pharmaceutical reagents.
Speaker Change: Once that we can quickly commercialize due to the fact that we have high productivity and obviously potentially lower costs for the sector is what's driving the interest. So you look across there as well.
Speaker Change: There's not a lack of available market to go after it.
Speaker Change: Getting the product to the market.
Identifying the right partner to help us commercialize and that's really what we're trying to do right now, but I think we're seeing unparalleled interest.
Speaker Change: All of our segments right now and it's due to the fact that we are starting to move closer to commercialization and I think as soon as we get the first product on the market.
Speaker Change: So it would be another.
Speaker Change: Other driver for us or another inflection point that we can we can use to continue to expand the adoption. So I think hopefully that gives you a flavor for the size of the markets that we're going into.
Speaker Change: Capability.
Speaker Change: Potentially what these products can have.
Speaker Change: Okay.
Speaker Change: Thank you and our next question comes from Tony Bowers with Intro Act. Please proceed with your question.
Speaker Change: Hi.
Speaker Change: Claude.
Speaker Change: Marc for his patience and persistence on the human side, but thankfully.
Speaker Change: Thankfully, we've got chosen working on particularly in this environment given the sort of international turbulence. The turbulence in Washington is there anything that is kind of obstructive other than the uncertainty of grants.
Speaker Change: To your business plan and then a separate question is where do we stand with <unk>.
Speaker Change: All of the great work that was done in South Africa, and the provenance that you've developed there.
Speaker Change: How long will let me before we see all sorts of biologics with dyadic inside the way we've seen Intel inside computers.
Speaker Change: Tony Good questions first and foremost we are completely focused on the non pharmaceutical side of the business to drive revenues.
Speaker Change: We're developing multiple products there.
Speaker Change: But at the same point were not going to turn down $7.5 million with a.
Speaker Change: Financing non dilutive funding that we're have some profit in two advanced platform and the learnings that we get on the pharmaceutical side of the development. We can apply also and are applying on the other side okay.
Speaker Change: But our focus is currently driven by.
Speaker Change: Albumin transferring Dna's, one alpha lactalbumin.
Speaker Change: I think some cellulosic enzymes for biogas.
Speaker Change: Bio refining.
Speaker Change: Well take sugars.
Speaker Change: Joe can jump in on all of that.
Speaker Change: Yes.
Speaker Change: We realized that the environment has changed but long before the environment changed we started targeting.
Speaker Change: Is it bringing in revenue and profit sooner.
Speaker Change: Hey, Joe you want to go into that.
Speaker Change: Yes.
Speaker Change: Thank you Michael.
Speaker Change: Probably.
Speaker Change: That's pretty well I think the key Tony.
Speaker Change: Mentioned, what we're doing with Ruby can swap outs and where that stands right now they've shifted their focus to animal health and animal health vaccines and right now they're developing.
Speaker Change: We have up to five small animal health vaccines, because they are a little obviously use a commercialized it means human vaccines at this point.
Speaker Change: The phase one study that we completed with rebates from do a 100.
Speaker Change: It was a milestone event for Diana and I think it's what's helping drive this increased interest from people like H and savvy and the fact that we have been in humans, where the protein producers in the system.
Speaker Change: Fortunately, we were a little bit late to the party in the Covid space and I think it will continue to evaluate that withdrew big foot right now the focus has shifted towards an animal health.
Speaker Change: We're looking to hopefully have something some clinical studies.
Speaker Change: People tell us this year. So I think there is definitely opportunity there.
Speaker Change: We won't do it in animal health before human health in that market.
Speaker Change: So we expected that.
Speaker Change: Well the animal the animal health products have to be funded by a government program.
Speaker Change: I don't know if that's holding that need to be funded by government program, but they could be I think they're also looking at other sources of funding and revenue as well so all of our markets. He has any greater insight there.
Speaker Change: Yes actually yes.
Speaker Change: Their.
Speaker Change: Next month so.
Speaker Change: Im going to go down to Johannesburg in M&A in the meeting went up for two days I do have a good morning. Thank you Joe does.
Speaker Change: Going there.
Speaker Change: They already have I think they are working on a challenge study already it's already funded.
Speaker Change: Animal health vaccine.
Speaker Change: And they also have some what I understand they have either have received a grant.
Speaker Change: We've received a grant from <unk>.
Speaker Change: One $8 million for equipment and things like that working towards getting ready to try to build a facility down there and I do believe that there are also as youll find in raising capital not from government grants.
Speaker Change: Equity to bring in several million dollars to accelerate those efforts.
Speaker Change: I'll have a lot more clarity when I go down there, but I've been in touch with them recently on a constant basis and they're moving forward. So they are doing very well.
Speaker Change: They're not growing as fast as we'd like.
Speaker Change: But they also don't have the.
Speaker Change: Wherewithal to do the funding that we can again in the United States, but the whole issue I want to bring up and I think it's important because it's the elephant in the room.
Speaker Change: Trump.
Speaker Change: Elon Musk youre doing in dose and cutting out all these different programs.
Speaker Change: Guess, what we don't have any of those U S. Government. So we're not getting got it alright.
Speaker Change: The thing is.
Speaker Change: Is it a shift.
Speaker Change: The shift is going to cost.
Speaker Change: While our cost Canadian government money in some ways, what's going on in D. C. We believe is playing into our hands and it's going to help us accelerate the technology the platform sooner because if you want to lower your cost of drugs you better make them cheaper if you want to make more of them you better make it cheaper I want to stress.
Speaker Change: The dollars you don't have or less now there's only one you better make more from that.
Speaker Change: And I think that's the message we've been resonating that's common sense.
Speaker Change: I don't know what's going on in D C.
Speaker Change: But I think.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Better find a more efficient way.
Speaker Change: And we've had discussions.
Speaker Change: Okay.
Speaker Change: And yesterday at 130 senior.
Speaker Change: Senior person to the FDA.
Speaker Change: Call it.
Speaker Change: Hey.
Speaker Change: You bet.
Speaker Change: The same is going on I don't know if im going to turn into any money.
Speaker Change: They are happening and I think everybody is realizing cost of goods matters because without that we haven't been on sustained my model in America, let them across the globe.
Speaker Change: So this may actually be working out dyadic steamer.
Speaker Change: And also to help <unk>.
Speaker Change: RNA vaccines, im not saying, whether or not I'm not going to get into that debate.
Speaker Change: This has created.
Speaker Change: Created by the mrna vaccines. So if we take a step back this is what I think.
Speaker Change: RFK in.
Speaker Change: Or do I know.
Speaker Change: Mrna it may open up the door for us.
Speaker Change: Spotlight can be focused on a more durable faster at lower cost.
Speaker Change: Yes.
Speaker Change: Oh gosh.
Speaker Change: So I think yeah, I think we've got a really good outlook here so keep up the good work.
Yeah.
Speaker Change: Okay and our final question comes from Steven Rafael Private Investor. Please proceed with your question.
Steven Rafael: Hello, Steven you're on the line.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: That doesn't look like there are any more questions I would like to pass the call back to Mark <unk> for closing remarks.
Speaker Change: I almost feel like you've already done, but I'll I'll close it anyway okay.
Speaker Change: Looking ahead to 2025.
Speaker Change: Beyond our strategic priorities are clear and focused on launching our first commercial products for expanding strategic partnerships and alternative protein and industrial bio materials.
Speaker Change: We're broadening the adoption of our microbial platforms across numerous markets.
Speaker Change: We're preparing to launch our first commercial product in recombinant albumin non animal dairy dnas, one cellulosic enzymes, making a major milestone in diabetics evolution from bio manufacturing platform development to revenue generation at the same time, we plan to expand strategic partnerships.
Speaker Change: <unk> key sectors, including alternative protein section.
Speaker Change: <unk> diagnostics research tools, leveraging the growing interest in sustainable annual free and high performance protein solutions.
Speaker Change: We will also continue to leverage our proprietary see when and depth of its platforms to meet the rising global demand for affordable and efficient bio manufacturing technologies across all the markets.
Speaker Change: With a strong IP portfolio, and an expanding product pipeline and increasing global recognition dyadic is well positioned to be a disruptor in the bio manufacturing space and our revenue generating engine delivering tangible near term value for shareholders.
Speaker Change: One and depth of its platforms are engineered to maximize efficiency and sharing that funding goes further to meet the needs for more efficient high yield protein production in today's rapidly evolving landscape.
Speaker Change: We're excited about the opportunities that lie ahead and remain committed to driving innovation accessibility growth across all areas of our business.
Speaker Change: Thank you for joining today's call and a special thank you to our investors partners employees and board members, who have made 2020 for a standout year and look forward to delivering continued growth and innovation in 2025 and beyond.
Speaker Change: Yes.
Speaker Change: Thank you and with that this conference has now concluded. Thank you for attending today's presentation. You may now disconnect your lines.
Speaker Change: Okay.
Speaker Change: Yeah.
Speaker Change: Yeah.
Speaker Change: [music].
Speaker Change: Uh-huh.
Speaker Change: Hum.
Speaker Change: [music].
Speaker Change: Yeah.
Speaker Change: Uh-huh Oh.
Speaker Change: Mhm.
Speaker Change: Hum.
Speaker Change: [music].
Speaker Change: Hum.
Speaker Change: [music].
Speaker Change: Hum.
Speaker Change: Hum.
[music].
Speaker Change: Okay.
Speaker Change: Uh huh.
Speaker Change: [music].
Speaker Change: Okay.