Dyadic: Biofuels Digest’s 2014 5-Minute Guide

Dyadic International, Inc. is a global biotechnology company that uses its patented and proprietary technologies to conduct research, development and commercial activities for the discovery, development, manufacture and sale of products and solutions for the bioenergy, industrial enzyme and biopharmaceutical industries.

Rankings

50 Hottest Companies in Bioenergy: 2013/14, #46

The Situation

In their 2013 results, total revenue for the company increased 10% for the year compared to FY2012, with net product-related revenue increasing 25% to $9.8 million. The increase was driven primarily by increases in the animal health and nutrition segments, the addition of two major customers and additional registration by a customer of an animal feed product containing a Dyadic enzyme in Europe.

Dyadic’s President and Chief Executive Officer, Mark Emalfarb, stated, “We continue to lay the foundation for our continued success including increasing available capital, signing a broad license agreement with BASF, joining the OTCQX U.S. Premier marketplace and expanding our state-of-the-art Dutch research center.  Our strategic objectives have always been to unlock the enormous potential of our technologies, including the C1 platform.  We think we are remarkably well positioned to continue to grow and exploit new opportunities in 2014 and beyond.”

A few months ago, Dyadic was issued U.S. Patent No. 8,551,751 B2 entitled, “BX11 Enzymes Having Xylosidase Activity”.  The invention relates to methods of developing and producing novel enzymes, more specifically for the development of a variety of fungal enzymes. In addition, the patent also addresses methods to convert lignocellulosic biomass into fermentable sugars with enzymes that degrade the lignocellulosic material and novel combinations of enzymes, including those that provide a synergistic release of sugars from plant biomass.

Major Investors

OTC: DYAI

Type of Technology

Patented and proprietary C1 platform technology based on a unique fungal microorganism which is programmable and scalable in producing enzymes and proteins in large quantities

Feedstocks:

Dyadic’s C1 platform technology is effective in producing enzymes from a broad variety of feedstocks

Fuel Type 

Dyadic’s C1 platform technology can be used to produce many types of biofuels including, but not limited to, cellulosic ethanol, biobutanol and biodiesel.

Partners

• Abengoa Bioenergy
• Codexis Inc
• BASF

Co-products (if applicable)

Industrial Enzymes

3 Top Milestones for 2010-12

• Entered into non-exclusive license agreement with Abengoa Bioenergy
• Reported record revenues and profits for fiscal year 2009
• Signed term sheet for potential exclusive outlicense of C1 technology for biopharmaceutical applications to EnGen Bio, Inc.

In January, Dyadic International, Inc. announced that the expansion of its research laboratory in The Netherlands is now complete. Floor space at Dyadic Netherlands has significantly increased allowing for the installation of a wide range of state-of-the-art research equipment including a new fermentation lab.

In addition, the expansion will facilitate the housing of new scientists who were recently hired for the new C1-technology projects. Dyadic increased its scientific staff by 40% in 2013 and plans to continue hiring molecular biologists, enzymologists and fermentation specialists through 2014.

Also in January, Dyadic International, Inc. announced that the expansion of its research laboratory in The Netherlands is now complete. Floor space at Dyadic Netherlands has significantly increased allowing for the installation of a wide range of state-of-the-art research equipment including a new fermentation lab.

In addition, the expansion will facilitate the housing of new scientists who were recently hired for the new C1-technology projects. Dyadic increased its scientific staff by 40% in 2013 and plans to continue hiring molecular biologists, enzymologists and fermentation specialists through 2014.

In May 2013, BASF and Dyadic announced  that the two companies have entered into a non-exclusive worldwide research and license agreement for Dyadic’s C1 production host technology. Under the terms of the license agreement BASF will be able to use Dyadic’s patented and proprietary C1 technology for gene discovery, expression and the production of enzymes and other proteins. BASF will fund research and development at Dyadic’s research labs. Under the terms of the agreement, BASF will be able to use Dyadic’s patented and proprietary C1 platform technology to develop, produce, distribute and sell industrial enzymes in certain fields for a variety of applications.  BASF will fund research and development at Dyadic’s research lab in The Netherlands. In addition to this funding, BASF has agreed to pay Dyadic a $6 million upfront license fee, and certain research and commercial milestone fees, as well as royalties upon commercialization.

3 Major Milestone Goals for 2014-16

• Consummate additional licensing and other strategic collaborations to monetize Dyadic’s technologies
• Increase sales of industrial enzymes
• Consummate additional research and development collaborations

Business Model: (e.g. owner-operator, technology licensor, fee-based industry supplier, investor)

• Technology licensor
• Industrial enzyme sales

Competitive Edge(s):

• Patented and proprietary C1 technology
• C1 platform technology is programmable (genome has been sequenced and annotated)
• C1 technology can produce enzymes and proteins on commercial scale (up to 150,000 liter fermentors)
• Dyadic provides partners with ability to license the C1 platform technology for in-house/on-site manufacturing of customized enzymes and proteins

Distribution, Research, Marketing or Production Partnerships or Alliances. 

• Non-Exclusive License Agreement with Codexis Inc. for use of C1 technology for biofuels, chemicals and pharmaceutical intermediate production
• Non-Exclusive License Agreement with Abengoa Bioenergy New Technologies, Inc. for use of C1 technology for biofuels, chemicals and/or power production
• Non-binding term sheet with EnGen Bio, Inc. for potential outlicense of C1 technology for biopharmaceutical applications
• Multiple research partnerships

Stage:

Dyadic has been producing enzymes in up to 150,000 liter fermentors for over a decade

Demonstration and soon-to-be commercial stage through Dyadic’s licensees and partners

Website 

www.dyadic.com