DYAI: Dyadic and VTT Developing Production Method for SARS-CoV-2 Vaccines

By John Vandermosten, CFA



Dyadic International, Inc. (NASDAQ:DYAI) and VTT have developed a production platform that boasts higher efficiency and lower cost based on Dyadic’s C1, Thermothelomyces heterothallica, expression platform, and are now developing a production method for a SARS-CoV-2 vaccine as discussed in an article on the VTT research website.

The biopharmaceutical industry currently relies on Chinese hamster ovary (CHO) cells to express therapeutic proteins. Expression using the CHO platform is time consuming and expensive, but with rapid and significant advances made by the Dyadic-VTT collaboration, the C1 platform may soon be able to produce these therapeutic proteins faster and at a lower cost. Dyadic’s C1 technology is a fungal expression platform that is robust, efficient and capable of producing glycan structures similar to human glycosignatures, relieving some of the burden of glycoengineering work.

Exhibit I – Dyadic C1 Glycosylation Versatility1

In February, Dyadic announced that it had achieved G2 human-like glycosylation with VTT. C1 was able to produce a G2 glycan level of over 76% using host cell proteins following the achievement of G0 in November 2019. Dyadic can additionally produce high concentrations of Man3-9 and Man3 which, along with G0 and G2, allows C1 to produce vaccines, monoclonal antibodies and other biologics that are either immunogenic or recognized as self by the immune system. Dyadic expanded its contract with VTT in the first quarter paying an additional 700,000 over a 19 months period to accelerate development. We expect to hear updates on these glycoforms in the coming months.

Exhibit II – Dyadic Partnerships and Market Opportunities2

Dyadic continues to make progress on other fronts beyond its efforts related to the pandemic. Since the start of the second quarter, five additional collaborations were signed, including two with leading animal health firms, one with a top five human health company and a small deal to develop a coronavirus vaccine. We count eleven new relationships year to date. Opportunities for product development in infectious disease have emerged and the relationships have expanded with the Israeli Institute of Biological Research (IIBR) and Zoonoses Anticipation and Preparedness Initiative (ZAPI). Other work by partners to develop a treatment or vaccine against the coronavirus using C1 has also emerged. This includes efforts by a consortium of academics from Erasmus Medical Center, Utrecht University, University of Veterinary Medicine Hannover, Ufovax and Frederick National Laboratory. Recognizing its increasing importance in the biotechnology space, Dyadic was added to the Russell 2000 and Russell 3000 indices. Dyadic filed a shelf registration, Form S-3, simultaneously with the earnings release to enable future offerings of up to $50 million which may be offered under an at-the-market (ATM) arrangement with Jefferies LLC.

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1. Dyadic H.C. Wainwright 22 Annual Global Investment Conference Presentation, September 14, 2020

2. Dyadic H.C. Wainwright 22 Annual Global Investment Conference Presentation, September 14, 2020