Highly Respected Wall Street Analyst Jason Kolbert Issues $14.00 Price Target On Dyadic.
Analyst Take: “Potential to be Revolutionary. Dyadic’s C1 shows potential in its ability to revolutionize the biopharmaceutical industry. C1 comes from a solid foundation from its past as an industrial enzyme production platform where it was so efficient, that it can be deployed at an industrial scale.”
“Given the tiny scale by comparison, of biologics, but the incredibly high cost of goods, the utilization of C1 technology makes sense. We also have a great deal of confidence in the management team. The founding CEO, Mark Emalfarb, has built this company, brick by brick, to what it is today, a $140M market capitalization with a quarter of its value in cash.“
“Dyadic has $37M in cash and short term securities and has a modest burn rate of just $2-$3M per quarter. The Dupont transaction allowed the company to buyback $22M of its own stock, reducing shares outstanding from 36.5M to 26.8M as of 2Q19. Management owns just under 25% of the company. Going forward, we expect the burn rate to fall as revenues (milestones and royalties) rise and offset fixed costs.”