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DYAI: Extension of VTT Contract

By John Vandermosten, CFA


Dyadic International Inc. (NASDAQ:DYAI) has continued to maintain its high level of operational intensity since reporting first quarter earnings in early May. The company has been busy attending investor conferences, closing the trading day at NASDAQ on June 17th, advancing Ms. Rawson to CFO, joining the Russel Microcap Index and extending its contract with VTT.

Dyadic has had a long and productive relationship with partner VTT Technical Research Center of Finland (VTT). On July 5th, the company announced an extension of the contract with the research center which expired this June and will now extend until mid-2022. VTT R&D efforts have focused on C1 glycosylation and protease deletion and the collaboration has been successful advancing C1 ahead on both of these axes.

The contract pays a base amount of €2.52 million over the three year period and includes an incentive amount of up to €450,000 if certain targets are met. Dyadic may terminate the contract with 90 days’ notice for any reason.

As part of its recent investor presentation, Dyadic has publicized new records for product yield. In the therapeutic protein category, Fc-Fusion production has achieved a rate of 1.74 g/L/d, monoclonal antibodies reached 3.1 g/L/d and substantially more difficult bispecifics were produced at a 0.17 g/L/d rate.

View Exhibit I - Yield Achievements

Dyadic has continued to advance and evolve in 2019 as highlighted above. The company has also forged additional collaborations with pharmaceutical and biotechnology companies, expanded its market to include adeno-associated viruses and metabolites and we anticipate this trend of innovation will continue as the year progresses. As part of the closing ceremonies at NASDAQ, Dyadic management participated in several interviews highlighting their achievements so far.


Dyadic has added fourteen new collaborations over the last year and a half. The company was also able to achieve its objectives with respect to becoming a fully reporting SEC company and satisfying the requirements to be listed on the NASDAQ. We include below recently achieved milestones and others we expect in the near term:

‣ NASDAQ Listing – April 2019
‣ NASDAQ Bell Ringing Ceremony – June 17, 2019
‣ Advances in glycoengineering of C1
‣ Additional protease deletions
‣ Advancements in nivolumab development
‣ Comparison work completed for certolizumab vs. Cimzia
‣ Additional collaborations
◦ Luina Bio – April 2019
◦ Alphazyme – May 2019
◦ Serum Institute of India – May 2019
‣ VTT Contract Extension – July 2019
Potential cash inflow from licensing or development arrangement


There has been no slowdown for Dyadic as we enter the summer months and wrap up the second quarter. We expect to see additional progress when results are reported in the first weeks of August. Continued interaction with investors, inclusion on the NASDAQ and the Russell Microcap Index, a new CFO and continued collaboration with VTT set the stage for a more mature company that can disrupt the protein expression market to make healthcare a reality for more people.

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