Robert Hoffman

Robert Hoffman of Princeton Opportunity Management asked about potential conflicts with DuPont given Dyadic's renewed focus on industrial applications, requested the fully diluted share count post-offering, and sought clarification on the addressable market sizes for key products.

Answer

CEO Mark Emalfarb assured that there is no conflict with DuPont, as the non-compete has expired and Dyadic is using its new DAPIVIS platform, not the C1 platform sold to DuPont. CFO Ping Rawson and Mr. Emalfarb confirmed the share count is approximately 36 million. President & COO Joe Hazelton directed Mr. Hoffman to the investor presentation for detailed market data, noting the recombinant cell culture media market is a $5-6 billion opportunity.

The analyst inquired about the size of the company's reasonable addressable market, the potential range for royalty rates or profit-sharing agreements, and whether their commercial relationships are exclusive or if they expect competitors to follow their partners' lead.

Answer

The company explained that the addressable market varies by segment; for example, the cell culture media market is $4.7 billion with 60-70% being recombinant, while the DNA/RNA enzymes market is nearly $1 billion with about half being recombinant. Royalty rates are not consistent and vary by product and application, with some deals structured as profit-sharing instead. The company pursues both exclusive and non-exclusive relationships, preferring non-exclusive but open to exclusive deals with the right partner. They noted that their partnership with Proliant has already increased interest from other industry players.

Robert Hoffman of Princeton Opportunity Management asked for clarification on the company's reasonable total addressable market, the potential range for royalty and profit-sharing agreements, and the nature of its commercial partnerships, including whether they are exclusive.

Answer

COO Joe Hazelton detailed the addressable markets, citing the ~$4.7B cell culture media and ~$1B DNA/RNA enzyme markets as key opportunities. CEO Mark Emalfarb and Hazelton explained that deal structures vary, including profit-sharing agreements like the one with Proliant, and that specific royalty rates are nonpublic. Emalfarb noted that while some deals are exclusive, the Proliant partnership has spurred interest from other potential collaborators, and for products like DNASE-1, Dyadic may pursue a dual strategy of direct sales and licensing.

Robert Hoffman inquired about the timeline and status of the arbitration process initiated by an LG subsidiary.

Answer

CEO Ana Cabral Gardner characterized the company's relationship with the LG Group and South Korea as very friendly and stated that positive news is forthcoming. She explained that the commercial relationship is excellent and the arbitration filing was surprising, but the matter is being addressed and is not a cause for concern.