Dyadic International Inc Q1 FY2020 Earnings Call

Good evening, ladies and gentlemen, and thank you for holding. Welcome to Dyadic International's First Quarter 2020 Financial Results Conference Call. Currently, all participants are in a listen-only mode. My name is Hector, and I will be your conference coordinator today. As a reminder, please note that this call is being recorded. At this point, I would like to turn the call over to Ping Rawson, Dyadic's Chief Financial Officer. Please go ahead.

Thank you, Hector. Good evening, everyone, and welcome to our first quarter 2020 earnings call. Our press release with Dyadic International's first quarter 2020 financial results was issued earlier today. The press release on Form 8-K and Dyadic's quarterly report on Form 10-Q have been posted to the web CC at Dyadic's website. On today's call, our President and CEO, Mark Emalfarb, will give a review of the business and the corporate accomplishments for our first quarter of 2020, including a brief summary of our research and business development efforts. I will follow with a review of our financial results in more detail. We will then provide you with an opportunity to ask questions. Matthew Jones and Ronen Tchelet will join Mark and me to answer your questions. At this time, I would like to inform you that certain commentary made in this conference call may be considered forward-looking statements, which involves risks and uncertainties and other factors that could cause Dyadic's actual results, performance, scientific, or otherwise or achievements to be materially different from those expressed or implied by these forward-looking statements. Dyadic expressly disclaims any intent or obligation to update any forward-looking statements except as required by law. For more information about factors that may cause actual results to be materially different from forward-looking statements, please refer to the press release we issued today, as well as the risks described in our Annual Report on Form 10-K for the year ended December 31, 2019, and our quarterly report on Form 10-Q for the quarter ended March 31, 2020, particularly in the section titled 'Risk Factors.' This information can be found in our other filings with the SEC when available. With that, I'd like to turn the call over to Mark.

Thank you, Ping. Welcome, everyone, and thank you for joining us for our 2020 first quarter conference call. I hope that everyone is staying safe and healthy during this challenging time amid the COVID-19 pandemic. We've taken all necessary steps to ensure the safety of our staff, and for the most part, they are all telecommuting. I'm pleased to report that COVID-19 has not had a significant impact on our company. In fact, to date, the pandemic has provided us with additional opportunities. Tonight, I'll focus my comments on several areas. I will discuss the progress we're making regarding our ongoing partnerships, as well as some new collaboration and other potential collaborations. We will also discuss several notable scientific achievements during the quarter. Finally, I will update you on our initiatives related to the seasonal flu. All of our efforts are increasingly aligned with global healthcare trends and the industry challenges being faced. During the quarter, we increased the potential range of commercial opportunities for Dyadic in several areas. In late February, we announced an expansion of our collaboration with Israel Institute for Biological Research, IIBR, to support their efforts to combat the coronavirus. We have already received certain gene sequences from the IIBR and have successfully constructed C1 cell lines expressing potential SARS-CoV-2 vaccine candidates. Assuming the IIBR determines that one of the C1 expressed SARS-CoV-2 antigens effectively elicits COVID-19 neutralizing antibodies, we anticipate that the IIBR will quickly start animal trials. The second COVID-19 vaccine opportunity is being pursued in collaboration with scientists from Erasmus Medical Center, Utrecht University, and the University of Veterinary Medicine Hannover, TiHo, with whom Dyadic previously worked with on the EU ZAPI project. I'm happy to share with you that we have developed a potential COVID-19 vaccine candidate, which based on preliminary results has demonstrated successful engineering for C1 to express high levels of a potential SARS-CoV-2 vaccine candidate. This consortium has submitted proposals for funding to pharmaceutical organizations and government agencies. Dyadic is a co-lead of this program and is working with the group to develop a COVID-19 vaccine candidate, which we can express high levels, stable protein in C1. The group is now working to determine productivity with preliminary results due in late May. We also initiated collaboration with UfoVax, a Scripps Research spin-out, which was provided to add certain gene sequences, including potential SARS-CoV-2 and HIV vaccine candidates to begin protein expression from C1. UfoVax, in conjunction with Dyadic, has also submitted proposals for funding the SARS-CoV-2 program to pharmaceutical organizations and governmental agencies. On the animal health side, we are actively working with three of the top four global animal health companies by revenue and in discussions with several others. Recently, the company announced that it expanded a third collaboration with one of these three and a final word proposal is being expanded and reviewed right now as well. In addition, the first two projects have been expanded with additional funding and have entered the second phase of development. One of these collaborators has expanded our initial agreement, going into the second phase of our first two projects in addition to signing on for a third. Animal health for both companion animals and pharma animal is a large and growing addressable market, and we are gaining increasing traction here. On the human health side, we currently have active programs with two top 10 human pharmaceutical companies and are in various stages of discussions with other top 10 and top 25 pharmaceutical and biotech companies, and we anticipate signing one or more of these collaborations in the second or third quarter. We entered into a non-exclusive research collaboration with WuXi Biologics, one of the global top 10 CDMOs, which provide development and manufacturing services to pharmaceutical and biotechnology companies globally. While these types of agreements don't generate immediate revenue, there are several potential benefits to Dyadic. We are aligned with a globally recognized industry leader with a significant presence in China, Singapore, Europe, and the U.S. WuXi will invest its own resources to evaluate our C1 technology for research for their customers. Ultimately, we see this as an intermediate step to potentially larger license deals or other collaborative revenue. WuXi, as a cGMP manufacturer, is an important conduit because they can manufacture biologics, exchanging drugs potentially produced from C1 with the biotech and pharmaceutical companies. In 2019, we signed a research and commercialization collaboration with the Serum Institute of India, one of the largest global vaccine producers. To date, we have received more than half of the proteins under the serum agreement, and based on our initial success to date, we are moving into a second phase with them for six proteins. Regarding our collaboration with Sanofi-Aventis, we have completed the feasibility study in which we demonstrated that we could express all seven of the therapeutic and vaccine proteins with more than half at or exceeding production levels initially set by Sanofi. We've been speaking with them on a regular basis, discussing the breadth and scope of what we've produced, including blinded data showing antibodies and vaccines produced in other studies, and we are awaiting their decision. The substantial progress we are making underscores several notable scientific accomplishments during the first quarter. Specifically, we've accelerated our self-funding glycoengineering initiatives with excellent success, developing a diverse library of C1 strains, imparting greater purity and stability. In February, we presented data at the 15th European Conference on Fungal Genetics, where we highlighted a reduction in the extracellular protease background by 50 times in C1. Importantly, these results demonstrate that we've made the C1 cell line more efficient and stable, leading to higher expression levels and lower costs. We continue to refine these strains, making them more robust, glycan homogeneous, and stable. We are working closely with our collaborators to pick the best strains to match their objectives. For Dyadic, making a stable protein is a one-step process, and as a result, we have a shorter cell line development time. Through this research, we can produce more specific and refined classes in terms of stable proteins faster and for less cost. As a result of these scientific advances, we are receiving increased levels of interest from the pharmaceutical industry. We recently entered into a new feasibility study with a highly regarded group of flu experts at the University of Oslo regarding an influenza vaccine. The company has begun expression of a targeted influenza virus antigen protein provided by Oslo University. The annual seasonal flu affects many people globally each year and causes hundreds of thousands of deaths. The flu vaccination is either not accessible or affordable in many other parts of the world. Our efforts in this area further support our vision of creating more efficient and commercially cost-effective healthcare solutions for society globally. As you may recall, we worked with Sanofi-Pasteur in the past on a seasonal flu program with excellent results. Sanofi's data essentially showed that the C1 expressed HA/New Caledonia was tested in mice and was safe and at least as immunogenic as the baculovirus recombinant HA. In fact, preliminary data from Sanofi mice clearly leads us to believe C1 has the potential to produce far greater quantities of lower-cost potentially more effective seasonal flu vaccines. If this is further supported by the animal trial data reported by ZAPI related to the SBV antigen produced from the C1, which also showed excellent safety and efficacy in mice and cattle. As previously reported, the SBV antigen produced from C1 in mice was more stable and produced 17 times the initial target level set by ZAPI, and significantly higher levels of SBV antigen produced from baculovirus. We believe that these two data points, along with the expression data we are seeing in our COVID-19 programs and other vaccine research programs with ZAPI and from our third-party animal health collaborations, indicate that it is possible for C1 to address certain shortcomings in seasonal flu and other vaccine production. In regards to metabolites, we completed a funded first-phase research project, which was funded by a third party, where we developed the C1 strains to produce a certain primary metabolite for which we recently filed a patent application. We are currently in discussions about the next phase of this project, which would include strain optimization and a manufacturing agreement to determine if the C1 strain could match productivity and be cost-effective versus chemically synthesized products now in the market. Additionally, we continue to self-fund the secondary metabolite project and are exploring the market opportunity for certain secondary metabolite products that may be produced from C1 for a variety of applications. Underpinning all of these achievements is a highly opportunistic and disciplined approach to our business development efforts in further building our pipeline. With our approach, Dyadic shareholders are getting many shots on goal in a cost-efficient manner with partners who are well-established, top-tier, and have a global presence. With that, I will now turn the call over to Ping for a financial review.

Thank you, Mark. Before I discuss our first quarter 2020 results, I'd like to provide you with a few key financial takeaways from the quarter. Dyadic's financial position remains solid with approximately $34 million in cash and investment-grade securities and no debt. Second, as our pipeline of opportunities has grown larger and more diverse, so have our sources of funding. We added two new fully funded research collaborations in the quarter and now have ongoing projects with 12 collaborators, several of whom have more than one project in different phases. As a result, we believe that we are well-positioned to execute on our growth strategy and further build out our presence in the addressable markets that we are focused on. I will now discuss our operating results in greater detail. From a liquidity standpoint, we ended the first quarter with cash and cash equivalents of approximately $4.7 million at the end of the first quarter compared to $4.8 million at December 31, 2019. The current value of short-term and long-term investment-grade securities, including accrued interest at March 31, 2020, was approximately $29.3 million compared to $21.2 million at December 31, 2019. From an operations perspective, research and development revenue for the first quarter was $315,000 compared to $403,000 in the first quarter of 2019. We reported $278,000 for the cost of research and development revenue in the first quarter of 2020 compared to $328,000 in the same period a year ago. The decreases in revenue and cost of research and development revenue reflect five ongoing research collaborations in the first quarter of 2020 compared to six research collaborations for the first quarter of 2019. Dyadic's interest income was approximately $168,000 in the first quarter of 2020 compared to $267,000 for the same period a year ago, with the year-over-year decrease reflecting lower interest rates and yields on the company's investment-grade securities. Research and development expenses for the three months ended March 31, 2020, increased to approximately $755,000 compared to $692,000 for the same period a year ago. The increase primarily reflects additional expenses associated with the cost of an accelerated glycoengineering program conducted at VTT. Accelerating our glycoengineering efforts is our strategic growth priority. Dyadic did not have any research and development expenses related to related parties for the first quarter of 2020, compared to approximately $389,000 for the same period a year ago. The decrease was due to the completion of our research service agreements with BDI in June 2019. We reported G&A expenses of approximately $1,653,000 in the first quarter of 2020 compared to $1,428,000 for the same period a year ago. The increase in G&A primarily reflects increases in insurance and other outside service costs of $101,000, non-cash share-based compensation expenses of $97,000, business developments and investor relations costs of $70,000, and other increases of $54,000 offset by reductions in executive compensation costs and accrued incentives of $74,000 and legal expenses of $23,000. Year-over-year, our net loss was relatively similar. The net loss for the three months ended March 31, 2020 was approximately $2,214,000 or $0.08 per share compared to $2,175,000 or $0.08 per share for the same period a year ago. The $93,000 increase in net loss year-over-year was primarily due to an increase in G&A expenses, lower interest income, and the fewer ongoing research collaborations, offset by the reduction in total R&D expenses due to the completion of research service agreements with BDI. With that, I will turn the call over to our operator for Q&A.

Your first question comes from the line of Luke Smith with Chapin Davis. Please proceed with your question.

Hi, Mark. I wanted to ask about these new developments in the ZAPI program. You mentioned proposals. Can you elaborate on what this might become?

Yes. So as you know, we've worked in the ZAPI program for over five years since 2015 for zoonotic diseases from animals to humans. In that program, we successfully now made the SBV antigen which we reported by 17 times the initial target goal that they actually asked us to hit which was 1780 milligrams per liter versus the 100 milligrams. And we mentioned before that we made 35 times more in the baculovirus insect cell, which is being used for flu block, by Sanofi and Coronavirus vaccine and also Novavax and others. Interestingly enough, the people from ZAPI have recently reported that they overstated the baculovirus yields, and now that shows we hit 300 times more productivity in C1 for the SBV antigen. We've also seen recently in the ZAPI program that they have an IIBR reselling antigen as well. And we now have completely expressed at very stable at high levels, and we're now assessing what that level is. And then along with the receptor binding domain of the SARS-CoV-2 cell protein for Coronavirus, we've now made basically three very high-yielding stable vaccines using the cell lines. And this would not be possible if we did not knock out those proteases and we have been working on; we now have a 14x protease stream. We have now got 14 different protease genes and this cell continues to perform at higher levels because when you make a protein, you got to keep it stable. So you can make high levels; if it’s perfectly tweaked up, it has no value. So if it's not for the time and money and energy spent by the VTT scientists and our staff, we wouldn't have this capability today to help make potentially billions of doses of vaccines in the fight against the pandemic and other vaccines. So we're very excited about not only the platform and its ability and it's delivering on its promise, and this is why people have to realize, when we talk about scientific achievement in advance, it relates to commercial opportunities, and that’s in the particular case you’re talking about and all of those cases are magnitude times more productivity than the competitors, and we can make higher doses. For example, potentially in the Coronavirus, we've looked at if you use 20 units per gram as a dose we only had a 75% recovery rate; we can use a small little 200-liter fermenter and make potentially 10 million doses of that antigen in five days in a fermenter, or if you use a 2000-liter fermenter, which is still quite small, we think we can operate at 150,000 and 500,000 liters and make 100 million doses of the vaccine candidate or the antigen in five days in the fermenter, or if we used a 20,000-liter fermenter, you could potentially make one billion antigen doses in five days in the fermenter. So I think that you got to realize. When we advanced science and technology, that's the power of what we have to offer is higher productivity, lower cost, greater stability and to deliver on things that other people can't, and that's what led us to, in addition to successfully developing a receptor binding domain SARS-CoV-2 candidate for the Israeli Institute of Biological Research, which by the way, we have now shipped from certain C1 cell lines, so then the test grew up. If they get the neutralization activity we talked about and you expect them to go in animals very quickly, and then ultimately open it up to people for Phase 1 and Phase 2, and it will be a huge win for Dyadic as well as for the world. In addition to the Israelis, we took on that challenge on our own because we are really having this incredible technology and this platform, we made a real receptor binding domain vaccine candidate for ourselves with the Europeans and the ZAPI program. Within the next two or three weeks, we'll get a read on the data and the expression level, but based on the preliminary data, it looks very, very exciting. So hopefully that will help you get a good grip on the power that we have created here over the last several years transitioning from industrial biotech to pharma and the money we're spending on improving this platform; not just on the protease side and we can talk about the glycoengineering side as well a little later in this conversation.

Our next question comes from the line of John Vandermosten with Zacks Investment Research. Please proceed with your question.

Let me start out with a question on the Coronavirus and how maybe it's affected operations. I heard you say earlier Mark that you hadn't seen much of an impact there. And I heard that pretty widely, but I've also seen other commentary, more broadly, that it has affected in some ways. Obviously being preclinical, this is a little bit more helpful than actually having patients in the clinic. But can you comment on that and how that might affect things in areas outside of the Coronavirus?

Well, currently it really hasn't slowed things down, really not at all. There's a few people I would say one of our clients we did a collaboration with is waiting for us to deliver them an antibody we produced, and we haven’t been able to deliver it to them. It's not that it's slowed us down; they shut their lab down. And so they're not ready to accept what we have made. So that would slow that down, but that's the only effect we've seen so far to date. But as we mentioned earlier, it's brought a lot of opportunity for us because of our ability to produce large volumes of vaccines and antibodies, quicker, cheaper, and faster than we think anybody else can do it. So we'll see how the rest of the world addresses this issue and how we all start trying to bring the economy back, but our goal here is to really help speed development, lower costs, and provide much greater doses of potential biologics than anyone else and trying to partner and continuing to find new partners, and we're in discussions with new partners right now in addition to what we've talked about.

As the Coronavirus impact increased the amount of conversations you've had. I mean, I know a lot of conferences have been canceled and a lot of networking has slowed down, but have you seen an opposite effect due to the concern over the volumes that are needed in vaccines and treatments?

Well, I think it depends on the party. I mean, there are people that we know that are using their own platforms, and there are a lot of people that don't have a platform like the Israeli government; they needed our help, and they had experience working with us. If you remember, they produced an enzyme to help defend against sarin gas and VX gas, which we successfully produced at higher levels using C1. So they knew the power of C1 from the ZAPI gas. They knew the power of C1 from the SBV antigen. You saw that in fact, as we mentioned, 300-fold better than the baculovirus expression system that was used in ZAPI. That baculovirus system really isn't that efficient compared to what we have. But some people use what they know and other people want to take new technologies on and try to advance. I mean, I think, if you stay tuned, we hope to—I think somebody had actually wrote up an article that sort of the pandemic changed everything for C1 or Dyadic, and people are willing now to take more risks and really look at things that really have the power and the technology and the speed and the productivity that the world needs to bring biologics to humankind. We're seeing that sort of opening up with the FDA, BARDA, the pharmaceutical companies, biotech companies for animal and human health.

Okay. And also a question on the deliverables or milestones in that second phase of the animal health project that was mentioned in the release. Can you point out any of those to us?

Well, I can't give you the terms and conditions of those things, but as we pointed out, and we have one of these guys that now came up that played not once, not twice, but three times, and now we're moving into the second phase on one or two of those programs. One of them gets further expanded on that. So, this is one of the top four animal health companies, and let’s hope that leads into some kind of license with either a non-exclusive product exclusive or who knows where it might lead into a partnership collaboration. So we're actually getting results, and people are seeing results, and they're coming back—and they’re coming back for more. Not in all cases, because in some cases, people are test-driving the car, and they like what they see, and just like this one I talked about, they left a year and a half, two years ago, and now they're back because they found a use for it. So, let’s see how it all pans out. We're excited about what we see both in the data and the collaborations, the partnerships, the expanded partnerships, and people coming back in the door.

Your next question comes from the line of Jason Kolbert with Dawson James. Please proceed with your question.

I just want to ask a couple of questions. I understand everything you just said, Mark, but I think what's critical for me and for our investors is to understand what the probability of success is that the C1 platform gets specified into a vaccine. It's a very unique time given the need for COVID and the ability of not just the U.S. government but governments around the world to spend capital. And my concern is that when I look at some of the vaccine approaches that I think are viable, which is not just a plasmid based RNA sequence but really a whole virus sequence, it's going to require an expression platform like C1. My problem is that if you are not already specified very early in the process, J&J is clearly making progress. Then C1 misses that—both now it's early days to say that anybody has missed anything—but we know there are a couple of front-runners, the Oxford program, the J&J program. I don't believe the Turner program is out in the lead. What I want to know from you is where is IIBR, where is SAVI, where is the India Serum Institute of the existing partners, who is out there in the lead where they're willing to commit to using the C1 platform early enough in the vaccine expression development so that it could become part of a novel Coronavirus vaccine or I really should say China Wuhan virus vaccine.

Well, I think, let's start with the IIBR. As I mentioned, we have now delivered them C1 cell lines expressing a potential first COVID vaccine candidate. And so now they're going to grow them up in the IIBR in Israel. They are there, they are in their hands. They're going to test the protein against lipids COVID-19 neutralizing antibodies, and if they see that it neutralizes the antibodies as they expect—and we anticipate that it would—they will jump quickly into animal trials. So we are early on there; in fact, from our understanding, the other expression system that they were using produced such de minimis amount that if we show this response of the neutralizing the antibodies, it will put us in the lead. We think that that's a great opportunity for us, and we think they have the motivation and the incentive and the capital to move that forward.

Well, my point is that, Mark, excuse me, I want to interrupt. My point is that J&J and Moderna and others Oxford are very soon in man. So what I'm trying to understand is if Israel gets there in a year, I don't know that becomes viable. So I'm trying to understand among partners and the people you're talking to what do you think? Do you think IIBR is the most promising candidate?

Well, I think that they are further along with what we're doing with C1. But there are other candidates started with other things, and we're talking to about—it seems they are willing to take a couple of steps back and run in parallel. We’ll see.

Well, you and I both know that Sanofi, you’ve demonstrated viability to Sanofi, and we know that Sanofi is committing a lot of time and resources, along with the collaboration with Regeneron to this. So are they working with you closely on the C1 platform on the early efforts that they're working towards?

No, we're not working with Sanofi on the coronavirus. We want to make that clear that we're using the flu block baculovirus program for the recombinant approach, which we believe is certainly viable, but nowhere near as press.

Yes, but my point is that they're familiar, Mark. My point is that they are familiar with your platform and technology and they are working on COVID even if they're not working on it with you. So why not make sure that they’re—whatever they're doing in COVID is going to leverage the C1 platform, no?

Of course we try to make sure of that. We've shared with them certain data that they should be salivating at the mouth to take advantage of, but I can't control it to know if we decide to do in that particular case.

Mark, let me just change gears with you then. When we look outside of COVID, what are the other most exciting areas where you're in talks, and is it in biotech, is it in industrial chemicals? Where might we see the next monetization partnership event? Can you just give me an industry idea where you see the most promising talks going?

We have human health and we have animal health both. We’re dealing with top 10 players in the pharmaceutical human side, and we're dealing with the top three to top four players in the animal health side already. We're in discussions with others, and one of them is—and the third program.

Okay, and you think you're in a position to realize a monetization event with them this year?

We're in a position of course to realize that this year. Obviously, Sanofi is going to make a decision sometime in the next few months. And then, of course, the animal health company, not only one of them—there are three top four we're working with potentially can make decisions this year as well. And there are other things we have going on.

Your next question comes from the line of Ahu Demir with Noble Capital. Please proceed with your question.

Hello team, thanks for taking my question. I apologize if my questions are asked because I had to dial in a little late. So my first question is, what is the collaborative research agreement with Sanofi? Where is it at? When are you supposed to have the meeting, and when is the decision supposed to be made on their front?

Yes, we just answered that question in the last conversation, but we're within a few months of Sanofi making a decision. We've had numerous conversations with them. Not only did we share data with them from their own programs; we shared data with them on other programs that we've had that we can, we're able to do that blindly to show them additional data. For example, on this SARS-CoV-2 receptor binding domain that we made from the spike protein, they've seen that data. They recognize that we can make a lot more of it quicker, faster, and cheaper.

Okay, I see. And as I guess, did things slowdown on the partnership front, what are the expectations going forward? I'm pretty sure you're in talks with many pharma and biotech and how are the conversations? Do you think there will be more partnerships in the coming quarters?

Yes, we mentioned that we expect more conversations and more partnerships this year. In this quarter, we expect to have at least one or two more.

Okay, and my last question?

Maybe even expand the ones we have like we just did with the animal health company.

Okay, and the last question would be on the data front. When do you expect to have any data disclosures, any meetings, virtual or not? When do we expect to see any type of data on the website?

Well, number one, we're expecting soon the paper from the ZAPI animal health. The data was very good; it showed excellent safety and efficacy. We obviously talked about the yield; we blew it through the roof. Right in here, but actually ZAPI went back and recalibrated their expression from baculovirus. Instead of 30 to 50 milligrams per liter, they only got 6, and we got 780 or 300 times more when we thought it was 35 times more. We are way—we underestimated based on the initial data, so data is coming all the time. In February we made a presentation at PEGS, so there are a lot of conferences coming up; some are virtual, I don't know if any will be actually in person. But the data is coming, irrespective of any conference; we'll put it out when we have data that we feel is important.

Any of them would generate value that you expect of the catalysts, and you know the timeline can we get them?

It all generates value. I think I think you missed the whole first part of the conversation that if we didn't.

Yes, I thought they would bring the report like a company. Sorry, I dialed in a little late; my apologies on that.

Yes, well, we already talked about the fact that by knocking out protease genes, we're at a 14x protease. This allows us to make the first CoV-2 protein for the IIBR and in the collaboration already with the former ZAPI scientists. We expect they will do the same thing with the UfoVax high levels of stable protein. We've done the same with the WuXi vaccine recently, as well in ZAPI. We did it in the SBV and ZAPI earlier, so from a standpoint of a vaccine platform for animal and human health, the data is phenomenal; it’s outstanding, so of course it’s creating value. What do you think is leading to the animal health guys is coming to the table and stepping in. They are recognizing things that they couldn't do before, not just about low cost but enablement, but taking things as they've tried to do that they fail because of productivity. They couldn’t make it cheap enough to launch it; you need to make very low-cost vaccines for these things like chicken and pigs and cows. So with the glycoengineering, that's creating value.

I was thinking you’re highlighting the future ones, not the past ones, Mark—like any other catalysts that are coming that you will have data readouts and that will generate value for you?

Well, we just talked about; we just made a vaccine candidate of our own for the Israelis for the coronavirus that recently. So we think that's creating huge value, huge opportunity. It said in another demonstration of the platform's power, stability, and productivity. But yes, glycoengineering, so there are a lot of things, partnerships with Sanofi. Sanofi is seeing data that could create huge value; that's the data, and the value of the partnership is based on data. So of course, there's more things, we’re going to glycoengineer two more strains like the ones we have, even better, apply to low protease activity, do glycoengineering strains; we match them up with productivity. And as we talked about earlier, which you missed I guess as well, Crucell sold their business to J&J for $2 billion once it on a PER C6 cell line for vaccines just on having the cell line. GlycoFi got $420 million to Merck, so we have multiple ways to sell the cell line; we want to license or partner it. So yes, there is a lot of value we're creating, and it’s coming in right now.

I am showing no further questions at this time, and we'll now turn the call back to Mr. Emalfarb for closing comments.

Thank you, Victor. Underpinning the many accomplishments we have discussed today is a highly collaborative and coordinated effort both among our employees, our contract research organizations, and our partners. I want to thank them all for their extraordinary efforts during these difficult times. Our goal remains to cost-effectively enable the development and manufacture of biopharmaceuticals, thereby making medications more affordable and accessible globally to all. We believe that our industrial proven C1 gene expression platform, which is faster and more efficient than any of the other platforms, including baculovirus, will help us achieve our goals. Along with the efforts expanding the number of our partners' programs. Thank you, everyone, for dialing in today; we appreciate your ongoing support, and stay safe.