On Thursday, Dyadic International (NASDAQ:DYAI) shares received a reaffirmed Buy rating and a $6.00 price target from H.C. Wainwright, following the company's announcement of significant revenue growth in the third quarter of 2024. The biotechnology firm reported a substantial increase in quarterly revenue, earning $1,958,000 in 3Q24 compared to $397,000 in the same period the previous year.
The growth is attributed to Dyadic's strategic shift towards licensing its proprietary protein production technologies, C1 and Dapibus, which have sparked rising interest. This move has allowed Dyadic to capitalize on the growing demand for economically produced biologic products, such as human and animal therapeutics and vaccines.
Dyadic's pivot from resource-intensive clinical development programs to the production of high-value alternative protein products has been a key factor in its revenue surge. Notable partnerships have contributed to this success, including a development and commercialization partnership with Proliant Health and Biologicals Corp. (PHB), announced in June 2024. This collaboration led to Dyadic recognizing $1M in licensing revenue from PHB in the third quarter.
Moreover, Dyadic recorded a success fee of $425K from Inzymes ApS, a private company that signed a development and exclusive license agreement in September 2023 to commercialize non-animal dairy enzymes for food products.
H.C. Wainwright highlights the underappreciated versatility of Dyadic's C1 and Dapibus technologies in producing proteins on a large scale. The firm's ability to leverage these technologies into licensing agreements that generate near-term revenue streams is a positive sign for its financial outlook. The analyst's statement reinforces the Buy rating and the $6 price target for Dyadic International.
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