Dyadic International, Inc. · NASDAQ:DYAI
Dyadic International — Investor Presentation (November 2014)
39 slides from Dyadic International's investor presentation, Nov 25, 2014
Slide 1: Dyadic International, Inc. - We Turn DNA Into Products
May 2012 35TH ANNIVERSARY DYADIC INTERNATIONAL, INC. (Symbol: DYAI) WE TURN DNA INTO PRODUCTS
Slide 2: Safe harbor statement
Safe harbor statement Certain statements contained in this presentation are forward-looking statements. These forward-looking statements involve risks and uncertainties that could cause Dyadic’s actual results, performance or achievements to be materially different from any future results, performan
Slide 3: Gene sequencing costs are plummeting
Gene sequencing costs are plummeting Genes are used to Cost per genome sequenced create products that feed, fuel and heal the world The cost to discover new genes has dropped faster than Moore’s Law The Challenge: Turning these genes into products Source: U.S. National Human Genome Research In
Slide 4: Number of genomes sequenced exploding
Number of genomes sequenced exploding Genes discovery expected Number of genomes sequenced to continue to grow exponentially Rate of commercializing these genes will continue to be limited by the lack of access to industrial-scale expression systems Discovered DNA is virtually untapped The “
Slide 5: Enzymes and other proteins are part of everyday life
Enzymes and other proteins are part of everyday life Examples of enzymes and other commercial proteins Wastewater treatment Bio-based chemicals Cosmetics and personal care Pulp & paper Environmentally-friendly Reduce use of petroleum- Enhance quality/properties of Used for bleaching, refinin
Slide 6: From Blue Jeans to Genes
From Blue Jeans to Genes 1979 1992 Today Founded as Supplier Search for Fungi Dyadic’s C1 of Pumice Stones For in Russia Expression System Blue Jeans 6
Slide 7: Dyadic business overview
Dyadic business overview Cellulosic Sugars Industrial Enzymes Biopharmacuticals Biofuels Animal feed Vaccines Bio-based chemicals Food & Beverage Antibodies (e.g. mAb) markets Starch & Alcohol Therapeutic proteins Pulp & Paper Biocatalysts for API End Textiles $5+ billion new Market enzymes in $5+ b
Slide 8: Business model
Business model Proprietary enzyme sales Dyadic revenue ($ millions) Currently sell niche products into food, Licensing & Royalties R&D animal feed, pulp & paper, textile and other end markets Enzyme Sales Gross Margin Several new products in pipeline 20 100% 18 17.1 Funded research 15.6 16 80%
Slide 9: 9 month 2014 highlights
9 month 2014 highlights Revenue excluding license fees increased 9-mo 2014 vs 9-mo 2013 ex license fees ($ millions) 23% for the 9mo 2014 vs 9mo 2013 Enzyme revenue increased 7% to $7.6 Product R&D million Milestones & Royalties Gross Margin R&D revenue increased 60% to $1.5 million 15 100%
Slide 10: The C1 Expression System
DYADIC THE C1 EXPRESSION SYSTEM Li Bnet ai
Slide 11: Turning DNA into valuable products
Turning DNA into valuable products Genes Dyadic Inside® Protein products A template for C1 Expression Enzymes and other enzymes and other System turns genes proteins control proteins into products particular chemical reactions 11
Slide 12: The 20 year evolution of the C1 Expression System
The 20 year evolution of the C1 Expression System 1st Wild type Genomic annotation C1 Today Breakthrough 1992: 1995/96: 2005-2008: 2009 - Present: Discovered C1 Mutation led to • Sequenced and • Developed comprehensive enzyme library wild type strain development of a annotated the C1 genome • Produc
Slide 13: C1 expression system advantages
C1 expression system advantages Track record of producing at industrial scale Platform Identified over 500 potentially useful enzymes in genome, of which over technology 100 already been expressed Many enzymes active in broad pH and temperature range Excellent safety record and has Generally
Slide 14: C1 has two commercial strain platforms – LC and HC
C1 has two commercial strain platforms – LC and HC HC vs. LC White Strain (LC) product development Over- HC LC expressed LC-1 LC-2 LC-3 LC-4 LC Enzyme 1 (20 g/L) Enzyme 2 (thermostable) (12 g/L) Enzyme 3 (thermostable) (15 g/L) End End Market 1 Market 2 HC has ability to The White Strain express
Slide 15: Enzyme productivity improvements by LC generation
Enzyme productivity improvements by LC generation
Slide 16: C1 has an excellent safety profile
C1 has an excellent safety profile Generally Recognized as Safe (GRAS) status C1 strain non-toxic acknowledged by the FDA Pathogenicity and toxigenicity data: strain is non-infectious and no C1-cellulase accepted by FDA on known toxins are produced Peer-reviewed scientific literature September
Slide 17: C1 producing enzymes at industrial scale since 1996
C1 producing enzymes at industrial scale since 1996 Major C1 enzyme manufacturing sites Year production began Manufacturing site Company Country Fermenter size 1996 FermPro/Martek (now DSM) Dyadic USA 150,000L 2000 Polfa Tarchomin Dyadic Poland 50,000L 2009 EnMex Dyadic Mexico 60,000L 2011 Antibioti
Slide 18: Scientific media recognition
Scientific media recognition Biofuels International, March 2012 “In 2011, a consortium of several worldwide renown organizations suggested that the use of thermostable enzymes offers economic advantages in the production of many chemicals and biomass-based fuels. Unfortunately, most of the commercia
Slide 19: Cellulosic Biofuels and Bio-based Chemicals
CELLULOSIC BIOFUELS AND BIO-BASED CHEMICALS 19
Slide 20: Commercial production of cellulosic ethanol in Q3 2014
Commercial production of cellulosic ethanol in Q3 2014 Abengoa’s 25 million gallon plant in Hugoton, Kansas came online in 2014 and is using Dyadic C1 enzyme technology 20
Slide 21: C1 is one of only three leading enzymatic platforms
C1 is one of only three leading enzymatic platforms 21
Slide 22: Relative enzyme loading
Over 5-fold decrease in CMAX enzyme use/costs in 5 years Improved bioethanolenzyme mixtures Enzyme dose reduction curve (glucose release) C1-G3 C1-G5 Relative enzyme loading 2-fold reduction CMAX CMAX 2 4-fold reduction CMAX 3 CMAX 4 ♦ CMAX 5 8-fold reduction 0 20 40 60 80 100 Time (months) 22
Slide 23: C1 has more enzyme-encoding genes than competing systems
C1 has more enzyme-encoding genes than competing systems for biofuels and bio-based chemicals Number of lignocellulosic enzyme-encoding genes Number Number in Genes encoding in C1 Trichoderma Endo-glucanases, Cellobiohydrolases, ~ 32 ~ 32 β-glucosidases/ β-xylosidases (GH1, GH3, GH5, GH6, GH7, GH12,
Slide 24: Dyadic C1 advantages for lignocellulosic enzymes
Dyadic C1 advantages for lignocellulosic enzymes Robust (high temperature and pH) Highly scalable production Versatile genetic make-up On-site licensing model 24
Slide 25: Biopharmaceuticals
DYADIC BIOPHARMACEUTICALS
Slide 26: Prospective game-changing platform for $90+ billion market
Prospective game-changing platform for $90+ billion market Therapeutic Viral influenza proteins vaccine (veterinary) Antibodies Influenza vaccine (diagnostic and (human) therapeutic) Biocatalysts for Antiviral (HIV and API production other) C1 has many high-potential opportunities in biologics 26
Slide 27: Potential to fight epidemics at global scale
Potential to fight epidemics at global scale Extremely high yield, industrial scale production in world’s largest fermenters Ability to more quickly modify cell lines to create and modify biologics Near human glycosylation Track record of expressing therapeutic proteins in C1 Origin of recen
Slide 28: Key advantages throughout development cycle
Key advantages throughout development cycle Downstream Product Expression Production processing attributes Direct and single High production Target protein Favourable step level secreted into glycoprofile can transformation media be modified to Adaptable to Short time to become ‘human acce
Slide 29: Advanced genetic toolkit for manipulation of C1
Advanced genetic toolkit for manipulation of C1 29
Slide 30: Defined development process
Defined development process Application of Use of efficient signal peptides OMICs and / or carrier proteins information Gene 1 Identifying efficient strong Optimizing codon usage promoter Protease activity reduction LC Strain Adjustment of post- translational modification 30
Slide 31: C1 Glycans resemble human structure
C1 Glycans resemble human structure 31
Slide 32: C1 Glycans resemble human structure (cont'd)
C1 Glycans resemble human structure (cont’d) 32
Slide 33: Project with Sanofi Pasteur
Project with Sanofi Pasteur Target Vaccine using C1 expression system Current Phase Preclinical testing Expressed, purified and delivered protein to Sanofi Status Modifications to the protein are ongoing Project began in 2011 Project extended and funding continues Timeline and next steps A
Slide 34: Business & Product Development Update
BUSINESS & PRODUCT DEVELOPMENT UPDATE 34
Slide 35: Ongoing third party funded research programs
Ongoing third party funded research programs Ongoing funded research continues at Dyadic Netherlands Expect to enter an expanded phase of that project later this year or early next year. The communication and collaboration between the Dyadic and BASF scientific teams is strong and the scientif
Slide 36: Current EU Subsidized Programs
Current EU Subsidized Programs Program benefits Overview of projects End Market Project Description Revenue to offset Baking Bakenzyme Project to develop enzyme products to improve dough and R&D costs bread structures in the baking industry Potential business and Baking Healthbread Collaboration
Slide 37: Internal R&D programs and new EU program applications
Internal R&D programs and new EU program applications In part from such EU and other government funding, along with our internal R&D funding we have been able to identify, characterize and generate promising data which has led to our developing 6 new products Based on our past success in obtaini
Slide 38: Strengthened business platform in past 18 months
Strengthened business platform in past 18 months Executive Vice President and Chief Operating Officer Strengthened leadership Vice President and Chief Financial Officer team Vice President, Business Development with biofuels and biopharmaceutical experience Director Sales in Europe with star
Slide 39: Thank you
DYADIC THANK YOU
Dyadic International — Investor Presentation (November 2014) on 6ix