JUPITER, FL – May 12, 2016 (GLOBE NEWSWIRE) – Dyadic International, Inc. (“Dyadic”) (OTCQX: DYAI), a global biotechnology company focused on further improving and leveraging the patented and proprietary C1 expression system to help speed up the development and production of biologic vaccines and drugs at flexible commercial scales, today announced financial results for the quarter ending March 31, 2016.
“We are seeing greater interest in the potential of our C1 technology than initially anticipated at this stage of C1’s development for biopharmaceutical applications. We are excited about the many areas in which we believe we potentially can apply the C1 technology platform to make a significant contribution in helping to bring biologic vaccines and drugs to market faster, in greater volumes, at lower cost and with new properties to drug developers and manufacturers. We believe this has the potential to not only improve access and reduce costs to patients and the healthcare system, but most importantly save lives” said Mark Emalfarb, chief executive officer of Dyadic International, Inc. Mr. Emalfarb continued, “Our business and research plans are continuing to evolve as we evaluate our licensing and partnering opportunities, cash position, personnel needs, R&D and other resources required to execute our business plans. We have a strong balance sheet, we are debt free, and best of all, we believe we have the potential to refine C1 to change the game on how biologic vaccines and drugs are developed, manufactured and perform.”
BUSINESS HIGHLIGHTS AND RECENT DEVELOPMENTS
- Dyadic’s focus shifts to leveraging C1 technology to develop and manufacture biopharmaceuticals
- Ongoing discussions with several large and small biotech and pharmaceutical companies working to identify how our C1 technology can add value to their research and commercial plans
- Initiated internally funded C1 research programs to express insulin and ranibizumab, a biosimilar version of Lucentis
- Initiated a stock repurchase program, under which the Company may repurchase up to $15 million of its outstanding common stock. Through March 31, 2016, the Company has repurchased 2,850,407 shares of its common stock
- January 6, 2017 trial date set for Professional Liability Litigation
- Received a $2.1 Million Settlement, in favor of the Company, with one of the two remaining defendants in connection with its ongoing professional liability litigation
- Cash and cash equivalents of $62.6 million as of March 31, 2016 which does not include (i) approximately $7.4 Million of cash held in escrow until July 2017 from the DuPont Transaction, and (ii) $2.1 million received from the litigation settlement received on April 19, 2016
- On April 30, 2016, Dyadic completed the transition services provided to DuPont in connection with the transfer of its industrial biotechnology business to DuPont on December 31, 2015
FINANCIAL RESULTS QUARTER ENDED MARCH 31, 2016
Results of Continuing Operations:
At March 31, 2016, cash and cash equivalents were approximately $62.6 million compared to $68.6 million at December 31, 2015. The Company used approximately $6.0 million of cash during the quarter principally for stock repurchases of $4.0 million, payment of DuPont related transaction costs of $2.3 million and operating activities of $0.6 million offset by other one-time cash items of $0.9 million.
Cash and cash equivalents do not include the $7.4 million of cash held in escrow in connection with the DuPont Transaction which we anticipate being released in July of 2017, subject to reduction as a result of any claims. In addition, subsequent to the quarter ended March 31, 2016, the Company reached a settlement agreement with one of two remaining defendant law firms, Bilzen Sumberg Baena Price & Axelrod and on April 19th we received full payment in the amount of $2.1 million, net of legal fees and expenses. The settlement will be reported in other income for the quarter ending June 30, 2016.
Through March 31, 2016 we have repurchased 2,850,407 shares of our common stock and had approximately 37.9 million shares of common stock outstanding.
Net loss from continuing operations for the quarter ended March 31, 2016 was approximately $0.9 million, or ($0.02) per basic and diluted share, compared to a net loss of $0.8 million, or ($0.2) per basic and diluted share, for the same period a year ago.
Revenue and gross profit for the first quarter of 2016 and 2015, respectively, reflect two ongoing R&D biopharmaceutical projects, Sanofi and ZAPI.
General and administrative expenses for the quarter are 8% higher than the same period a year ago principally due to non-cash stock based compensation and litigation costs partially offset by lower costs in connection with downsizing the organization after the DuPont Transaction.
R&D expenses for the quarter ended March 31, 2016 increased to approximately $245,000 from $0 in the same period a year ago principally due to the research and development agreement with DuPont to support our ongoing biopharma and internal R&D projects.
Net Income from discontinued operations for the quarter ended March 31, 2015 was approximately $0.4 million, or $0.01 per basic and diluted share.
CONFERENCE CALL INFORMATION
Dyadic will host a shareholder call today, Thursday May 12, 2016 at 5:00 p.m. to discuss the financial results for the first quarter of 2016 and discuss 2016 company initiatives. In order to participate in the conference call, please dial 888-505-4375 for U.S./Canada callers and +719-325-2494 for International callers, using access code 3776940.
A replay of the conference call will be available on Dyadic’s website (www.dyadic.com) within 24 hours after the live event.
About Dyadic International, Inc.
Dyadic International, Inc. is a global biotechnology company which is developing what it believes will be a potentially significant protein production system based on the fungus Myceliopthora thermophila, nicknamed C1. The C1 microorganism, which enables the development and large scale manufacture of low cost proteins, has the potential to be further developed into a safe and efficient expression system that may help speed up the development, production and performance of biologic drugs at flexible commercial scales. Dyadic is using the C1 technology and other technologies to conduct research, development and commercial activities for the development and manufacturing of human and animal vaccines, monoclonal antibodies, biosimilars and/or biobetters, and other therapeutic proteins. Dyadic pursues research & development collaborations, licensing arrangements and other commercial opportunities with its partners and collaborators to leverage the value and benefits of these technologies in developing and manufacturing biopharmaceuticals which these technologies help produce. In particular, as the aging population grows in developed and undeveloped countries, Dyadic believes the C1 technology may help bring biologic drugs to market faster, in greater volumes, at lower cost, and with new properties to drug developers and manufacturers and, hopefully, improve access and cost to patients and the healthcare system, but most importantly saving lives. Please visit Dyadic’s website at www.dyadic.com for additional information, including details regarding Dyadic’s plans for its biopharmaceutical business.
Dyadic trades on the OTCQX tier of the OTC marketplace. Investors can find real-time quotes, market information and financial reports for Dyadic, as well as additional information related to its professional liability lawsuit, in the company’s annual and quarterly reports which are filed with the OTC markets. Please visit the OTC markets website at www.otcmarkets.com/stock/DYAI/quote.
Safe Harbor Regarding Forward-Looking Statements
Certain statements contained in this press release are forward-looking statements within the meaning of the federal securities laws. These forward-looking statements involve risks, uncertainties and other factors that could cause Dyadic’s actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Investors are urged to consider these factors carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements. Any forward-looking statements speak only as of the date of this press release and, except as required by law, Dyadic expressly disclaims any intent or obligation to update or revise any forward-looking statements to reflect actual results, any changes in expectations or any change in events. Factors that could cause results to differ materially include, but are not limited to: (1) general economic, political and market conditions (2) our ability to carry out and implement our biopharmaceutical research and business plans and strategic initiatives (3) Dyadic’s ability to retain and attract employees, consultants, directors, advisors and contract research organizations; (4) our ability to implement and successfully carry out Dyadic’s and third parties research and development efforts, (5) our ability to obtain new license and research agreements; (6) competitive pressures and reliance on key customers and collaborators; (7) the outcome of the current litigation by Dyadic against its former counsel and (8) other factors discussed in Dyadic’s publicly available filings, including information set forth under the caption “Risk Factors” in our December 31, 2015 Annual Report filed with OTC Markets on March 29, 2016. New risks and uncertainties arise from time to time, and it is impossible for us to predict these events or how they may affect us.
Dyadic International, Inc.
Thomas L. Dubinski
Chief Financial Officer