Dyadic International Inc (DYAI)

[tykundegex]

I loved their last conf call and presentation. It's worth a listen for anyone considering taking a position here.

Today's market cap is just over $120MM (fully diluted). I think their C1 platform can be used to build a royalty monster over time, easily into the hundreds of millions $ annually. If they manage to humanize it, then it would easily be with $2bn to a big pharma, more if you include the NPV value of any royalty deals already locked-in.

The CEO is clearly not against playing the long game, and frequently mentions that he's already gifted equity to his children. He also seems to genuinely want C1 to be used to solve global human health problems. It seems to me that this would be best served by licensing one offs and waiting for royalties to ramp, rather than selling the IP to pad the bottom line of a single BP.

I'm kinda torn, as cherry-picking genes for one-off licensing deals could reap massive rewards long-term, but it could take 5-10 years or more to hit full speed. Whereas if BP just wrote them a check to lock out the competition, it could be very soon (within a couple of years?) and would be a big payday for shareholders.