May 2012

The C1 Expression System Reinventing Biologic Drug Production

(OTCQX: DYAI)

Safe harbor statement

Certain statements contained in this presentation are forward-looking

statements. These forward-looking statements involve risks and uncertainties

that could cause Dyadic’s actual results, performance or achievements to be

materially different from any future results, performance or achievements

expressed or implied by such forward-looking statements. Except as required

by law, Dyadic expressly disclaims any intent or obligation to update any

forward-looking statements.

2

Dyadic overview

3

Using synthetic biology, genomics and C1 molecular tools to glyco engineer and modify the

C1 Platform to reinvent the way biological drugs are developed & manufactured.

Leverage two decades of C1 research & development, knowledge and commercial

experience gained from the ~ $100 million invested in Dyadic’s industrial biotech business.

Future revenue through funded research and technology licensing, milestones & royalties

Partners include Sanofi Pasteur and the ZAPI program

Publically traded on the OTCQX exchange as DYAI

DYADIC AT A GLANCE

C1, in use by industry giants

4

Acquired by

C1 Platform, commercially proven

With the proceeds from the DuPont transaction, along with anticipated industry and governmental funding, Dyadic will have the necessary resources to accelerate the further development and optimization of the C1 technology in the area of biopharmaceuticals for many years.

– Programs we are currently engaged in; Sanofi Pasteur and the EU-funded ZAPI program, are examples of the types of industry and governmental funded research programs we will be pursuing.

There is a growing and critical need to bring affordable generic versions of biological drugs to the market and to patients sooner and at lower costs. – Biosimilars Are Helping To Make Healthcare More Affordable

• Experts predict savings to the U.S. healthcare system could range from $44B to $250B through 2025.1

With C1’s unique growth and expression properties, coupled with its proven programmability and scalability, C1 can be a game changer in developing & manufacturing biological drugs faster, in larger quantities with both less CapEx and OpEx, and potentially in some cases with even better performance.

5

The sale of Dyadic’s Industrial Biotech business to DuPont

for $75 million is a transformational event for Dyadic

1 Mulcahy AQ, Predmore Z, Mattke S. The cost savings potential of biosimilar drugs in the United States. Available at: http://. Accessed July 29th, 2015. www.rand.org/content/dam/rand/pubs/perspectives/PE100/PE127/RAND_PE127.pdf

Dyadic – Dupont agreement

Biologics for Pharmaceuticals

Chemical drugs, like aspirin, are small molecules that are synthesized in a laboratory. Because they are derived from chemicals with fixed structures, they can be fully characterized by analytical techniques.

In contrast, biologic drugs, or biologics, are large, complex molecules designed to specifically interact with other protein molecules in the body. Due to their complexity, biologics can only be manufactured in living cells, like Dyadic’s hyper productive C1 living cells.

7

What is a Biologic?

Biologics currently account for 21% of total global spending on medicines

and are expected to grow at 10.1% CAGR until 2020 to $287m

8

Global pharmaceutical sales (US$ billion, list price, ex. rebates and discounts)

20142004

930

519

21%

79%13%

87%

8%

Source: based on Alan Sheppard, IMS Health Thought Leadership, September 2015

Biologics are the fastest growing drug segment

The biologics market

Overview of the Global Biologic Drug Market

In 2014, the global biological drugs market was worth US$161 Billion in 2014. With a 10.1% CAGR expected during the forecast period of 2014 to 2020, the global biological drugs market is expected to reach a market value of US$287 Billion by 2020. 1

The “Global Biosimilar Market Outlook 2020”, reveals that the market, which was worth US$ 1.9 Billion in 2014, is expected to reach US$25.5 Billion by 2020, growing at an impressive CAGR of 54.4%.

The global biological drugs market is driven by factors such as:– The growing prevalence of chronic conditions– increasing geriatric population– Accelerating regulatory compliance.

This is due to increasing use of biological drugs in the treatment of diseases such as cancer, diabetes, and other chronic diseases in the region. In addition, several clinics in the region are focusing on biological drugs for the treatment of various diseases.

The biological drugs market in Europe is growing due to increasing aging population in the region. For instance, according to a UN report, elderly people accounted for 23.2% of the total population in Germany in 2000, and the number is expected to reach 33.2% by 2025. Aging can lead to certain disorders such as age-related macular degeneration and glaucoma, which require effective biological drugs for their treatment.

The use of generics, including biosimilars is growing globally at an accelerated rate.– Due to healthcare reform there is a big opportunity for biosimilars as doctors are incentivized to find and

prescribe lower cost treatments without negatively effecting patient care.– Insurance companies, Medicare and Medicaid are forcing patients to try generics first and only pay for branded

drugs if the patients doctor can show it is necessary to attain the same health benefit.

1 Transparency Market Research - http://www.transparencymarketresearch.com/biological-drugs-market.htmlSource: RNCOS - http://www.insightpharmareports.com/Affiliated-Reports/RNCOS/Global-Biosimilar-Market-Outlook-2020/

9

The C1 technology will be further developed to enable its use in the development & manufacturing of biologic drugs

10

• Biosimilar market $25.53 billion by 2020 (projection)

• Global biological drug market will reach $287 billion by 2020 (projection)

• Global insulin market $42 billion by 2019 (projection)

• Vaccine market approx. $35 billion in 2014

Recombinant Vaccines

(Human and veterinary)

Biosimilars / Biobetters(non-Gly)

Biosimilars / Biobetters

(Gly)

New products

21

4 3

Dyadic market projection

11

Vaccines

C1 Vaccine have to go through pre-

clinical

Vaccine must be proven through

clinical trials

Non-glycosylated Biosimilars

Regulatory pathways still

developing

Most leading biologics coming

off patent are glycosylated

Development requires deep expertise in

biologics development and manufacturing

scale-up

Glycosylated Biosimilars / Biobetters

C1 requires additional research and development to enable:• glycoprotein

production withuniform Mannosestructures

• glycoproteinproduction withhumanization ofN-glycanstructures

New drug development

Regulatory approval

Glyco-engineering development

Vast screening development

Dyadic challenges

WHY RECOMBINANT VACCINES?AND WHY NOW?

Global market projected to rise to $ 100 B by 2025

There are more than 120 new products in the development

pipeline

60 products are of importance for developing countries.

Vaccines: becoming an engine for both the human and animal

pharmaceutical industry

Changing status of vaccines within the pharmaceutical industry.

13

The vaccine market quadrupled in value from

$ 5B in 2000 to almost $ 24 B in 2013.

Influenza vaccine market: estimated at $2.9 B in 2011

to $3.8 B by 2018.

US : $1.6 B in 2011 to $2.2 B in 2018

13

The vaccines market opportunity

CURRENT DYADIC VACCINE PROGRAMS

14

R&D collaboration to utilize C1 expression system for vaccine applications

Sanofi Pasteur is one of the largest vaccine companies in the world

Goal is to speed up the development & production of new vaccines at a lower cost

C1 produced vaccine showed an equal or better immune response in mice trials than the existing vaccine

15

Sanofi partnership in drug development

Dyadic recently delivered what we believe to be sufficient quantities of a second vaccine produced using C1 for Sanofi to test in mice trials.– Objective of this mice trial is to see if the same encouraging

results that were obtained in the first mice trial reported in a Press Release on October, 7 2015, will be reproduced with this second C1 produced vaccine.• “C1 produced vaccine showed an equal or better immune

response in mice trials than the existing vaccine”

We are working on expressing and producing sufficient quantities of additional vaccine variants in the Sanofi research project for further evaluation by Sanofi.

Reproducing encouraging results

16

Expect a Go / No Go decision from Sanofi sometime in the later half of 2016.

Program sponsored by the EU to develop a platform suitable for the rapid development and production of vaccines and protocols to fast-track registration of developed products to combat epidemic Zoonotic diseases that have the potential to effect the human population.

Select Commercial Parties Select Academic Institutions

ZAPI – New €22 Million Vaccine R&D Program

17

Dyadic Nederland's, BV. is using C1 to express vaccines and neutralizing agents which if such research is successful we anticipate the C1 platform will be chosen as a preferred platform within the ZAPI research project.

– Two of the objectives we hope to attain through the ZAPI funded research project are as follows:

• Additional examples of vaccines and neutralizing reagents against emerging pathogens expressed from C1.

• C1 produced proteins regulatory pathway identified, and carried out at least in part, through collaborative partnerships between human and veterinary medical institutions, governmental regulatory agencies, expert academic groups and industrial partners.

ZAPI is a multi year project which full results may not be known for 3 - 4 years.

ZAPI regulatory pathway guidance

18

WHY BIOSIMILARS?AND WHY NOW?

Biosimilars Are Helping To Make Healthcare More Affordable

Today, the healthcare landscape is rapidly evolving. One key factor driving this change is the increasing use of biologic medications. Biologic medicines offer important treatment options for disabling and life-threatening diseases.

Unfortunately, the cost of biologic drugs can be prohibitively expensive. With more patients now shouldering out-of-pocket expenses for medications, there is an urgent need to provide expanded access to affordable biologics. Biosimilars offer the exciting possibility of providing patients lower cost alternatives to branded biologic products.

20

Biosimilars

As the aging population grows in developed and undevelopedcountries there is a growing need to deliver more medicinesand therapies to more people around the world faster, ingreater volumes and at lower cost

Investment into biosimilars is at an all-time high, with over 70biosimlar mAbs under development with over a dozen in PhaseI, Phase II and Phase III clinical trials

First biosimilar, Zarxio (filgrastim-sndz), was approved by theU.S. FDA in March 2015

Drug companies continue to invest heavily into makingincremental changes to their existing drugs, and manufacturingprocesses, such as developing and producing drugs using Chocells

“Global Biosimilar Market Outlook 2020”, the biosimilarmarket, was worth US$ 1.89 Billion (2014), expected to reachUS$25.53 Billion (2020), growing at a CAGR of 54.4%.3

There is little sign yet of any disruptive improvement in theefficiency of drug research translating into cheaper medicines.The health systems and insurers have little choice but to paythe drug companies whatever they are ask for.

21

Growing Demand For Lower Cost Biologic Drugs

Biosimilar market growing at a CAGR of 54.4%, to reach $25 billion by 2020

Source: http://lab.express-scripts.com/insights/drug-options/infographic-two-biosimilars-to-save-227-billion

Avastin® – (bevacizumab)

Epogen® – (epoetin alfa)

Herceptin® – (trastuzumab)

Humira® – (adalimumab)

Intron A® – (interferon alfa-2a)

Neulasta® – pegfilgrustin

Neupogen® – filgrastin

Pegnitron® – peginterferon alfa-2a

Prochit® – epoetin alfa

Remicade® – infliximab

Rituxan® – rituximab00

20

40

60

80

100

120

140

2014 2016 2018 2020 2022 2024

$140B

$120B

$100B

$80B

$60B

$40B

$20B

$0

Cost withoutBiosimilars

Cost withBiosimilars

FDA panel recommends first biosimilar approval, Zarxio a Novartis cancer drug as a biosimilaralternative to Amgen's Neupogen

The approval of Zarxio could save patients and payers as much as $5.7 billion over the next decade

$250BPotential saving

22

$250 billion could be saved in next decade with 11 new biosimilars

Biosimilars saving

23

SepAugJulyJunMarJan

Market trends

Regulatory

Market trends

Regulatory

Omnitrope sole subsidied somatropinfrom Jan 2015 in NZ

Granix close to 20%

penetration USA

Australia to recommend pharmacy-level substitution of

biosimilars

Novartis launches Zarxio in US at

15-percent discount to Neupogen

Enbrel approval in South Korea

Hospira launches first BS mAbs inflectra in

major European markets

Biosimilar 15% share of Spanish infliximab market

(June only)

Samsung submits infliximab Biosimilarapplication to EMA

Biosimilar 90% share of danish

infliximab market (July only)

Finland stands behind

interchangeability of biosimilars

Lilly/BI launch lantus BS in UK (15% discount)

FDA approves first biosimilar

Zarxio

Samsung submits Enbrel Biosimilar

application to EMA

Source: Alan Sheppard, IMS Health Thought Leadership, September 2015

2015 – Biosimilars continue to make steady progress

Biosimilars progress in 2015

Where Are Biosimilars Currently Available? Biosimilars are already available worldwide through biosimilar approval pathways implemented in

countries across the globe. The European Union has been approving biosimilars since 2006. Other highly regulated markets

such as Japan, Australia, and Canada have been approving biosimilars since 2010. Millions of patients have already received treatment in highly regulated markets with the same level

of safety and efficacy as the reference biologics.3

The first biosimilar was approved in the United States in 2015. As biosimilars become more prevalent and accessible, experts predict savings to the U.S.

healthcare system could range from $44B to $250B through 2025.1

Accelerating Global Adoption of Biosimilars

24

3 Mulcahy AQ, Predmore Z, Mattke S. The cost savings potential of biosimilar drugs in the United States.

Available at: http://www.rand.org/content/dam/rand/pubs/perspectives/PE100/PE127/RAND_PE127.pdf. Accessed July 29th, 2015.

20

Strong Global Pipeline Activity, especially for Etanercept & Adalimumab Biosimilars

Biosimilars Congress Europe

SB2 (Samsung Bioepis)

GS071 (Aprogen)

Infliximab

PF-06438179 (Pfizer)

NI-071 (Nichiiko)

BOW15 (Epirus)

ABP 710 (Amgen)

BioXpress

Harvest Moon

Tocilizumab

BOW070 (Epirus)

Oncobiologics

Golimumab

Oncobiologics

Abatacept

BioXpress

M834 (Momenta)

Rituximab

PF-05280586 (Pfizer)

CT-P10 (Celltrion)

GP2013 (Sandoz)

BI 695500 (BI)

ABP 798 (Amgen)

MK-8808 (Merck)

Harvest Moon

BioXpress

AP052 (Aprogen)

MabionCD20 (Mabion)

Adalimumab

SB5 (Samsung)

ABP501 (Amgen)

Biocon

BI

GP2017 (Sandoz)

FKB327 (Kyowa Kirin)

Oncobiologics

PF-06410293 (Pfizer)

LBAL (LG Life)

CHS-1420 (Coherus)

Harvest Moon

BioXpress

(BOW050) Epirus

M923 (Momenta)

Etanercept

CHS-0214 (Coherus)

LBEC0101(LG Life)

Tunex (Mycenax )

GP2015 (Sandoz)

SB4 (Samsung Bioepis)

Biocon

(PRX-106) Protalix

BioXpress

Avasthagen

Filed

Late Phase

Early Phase

Preclinical

Molecule Filed

SB2 EU

SB4 EU

MabionCD20 Argentina

AP052 South Korea

BioXpress

Source: Alan Sheppard, IMS Health Thought Leadership, September 2015

As more Biosimilars reach the market, competition will grow and drive down prices

25

Biosimilars market growth

EMA approved Biosimilars

26

Authorization year

Product name Active substance Manufacturer/Company name

2006 Omnitrope somatropin Sandoz

2007 Abseamed epoetin alfa Medice Arzneimittel Pütter

2007 Binocrit epoetin alfa Sandoz

2007 Epoetin alfa Hexal epoetin alfa Hexal

2007 Retacrit epoetin zeta Hospira

2007 Silapo epoetin zeta STADA R & D

2008 Biograstim filgrastim CT Arzneimittel

2008 Ratiograstim filgrastim Ratiopharm

2008 Tevagrastim filgrastim Teva Generics

2009 Filgrastim Hexal filgrastim Hexal

2009 Zarzio filgrastim Sandoz

2010 Nivestim filgrastim Hospira

2013 Grastofil filgrastim Apotex

2013 Inflectra infliximab Hospira

2013 Ovaleap follitropin alfa Teva Pharma

2013 Remsima infliximab Celltrion

2014 Abasaglar (previously Abasria) insulin Eli Lilly/Boehringer

2014 Abasaglar (previously Abasria) glargine Ingelheim

2014 Accofil filgrastim Accord Healthcare

2014 Bemfola follitropin alfa Finox Biotech

(*) EMA - Generic and Biosimilars initiatives, Data collected on 12 May 2012, updated on 27 February 2015

Biological drugs on the market

27

Molecule Trade names Primary Marketer

Type 2014 globalsales

2013 global sales

EU expirydate

US expiry date

Glyco-solation

Adalimumab Humira, Exemptia Abbott mAb $12.8bn $11.0bn

2018 2016 Yes

Etanercept Enbrel Amgen/Pfizer

Glycoprotein 8.8 8.7 2015 2028 Yes

Infliximab Remicade, Remsima, Inflectra

J&J mAb 9.8 8.4 2014 2018 Yes

Insulin Glargine

Landus, Toujeo, Abasaglar, Basaglar

Sanofi Insulin 6.7 8.0 2014 2014 No

Rituximab Rituxan, MabThera, Zytux

Roche/Biogen

mAb 6.8 7.9 2013 2016 Yes

Trastuzumab Herclon, Herceptin Roche mAb 6.2 7.0 2014 2019 Yes

Pegfilgrastim Neulasta, Neulastim, Imupeg

Amgen Glycoprotein 4.6 4.4 2017 2015 Yes

Ranibizumab Lucentis, etc. Roche mAbfragment

4.1 4.3 2019 2019 No

Eyrthropoietin(EPO)

Epogen, etc. Amgen Glycoprotein 2.4 3.4 2013 2015 Yes

Darbepoetinalfa (Darbo)

Aranesp Amgen Glycoprotein 2.3 3.3 2016 2016 Yes

Therapeutic Biologic Drug Market to Soar at 10.1% CAGR till 2020, ~ $287 Billion

THE C1 EXPRESSION SYSTEM

28

Due to their complexity, biologics can only be manufactured in living cells.

C1, hyper productive living cells

C1 unique morphology

C1-propagules by scanning microscopy. Propagules instead of hyphae: low viscosity, high productivity.

29

Morphology change: hyper productivity, low viscosity

Development of protein hyper-producing strains

High cellulase, low viscosity (mycelial fragmentation)

Low cellulase, low viscosity

C1

UV13-6

HCprt-

HC

NG7C-19

LC

LCprt-

Wild type

UV mutagenesis

Cellulase over producer

De-repressed cellulase production

UV mutagenesis

NTG* mutagenesis

HCprt-Δalp1

LCprt-Δalp1

UV mutagenesis

UV mutagenesis

alp1 knock-out

alp1 knock-out

UV mutagenesis

HCprt- with major protease gene alp1 disrupted

LCprt- with major protease gene alp1 disrupted

Protease-deficient

Protease-deficient

High cellulase, low viscosity (mycelial fragmentation)

Low cellulase, low viscosity

C1

UV13-6

HCprt-

HC

NG7C-19

LC

LCprt-

Wild type

UV mutagenesis

Cellulase over producer

De-repressed cellulase production

UV mutagenesis

NTG* mutagenesis

HCprt-Δalp1

LCprt-Δalp1

UV mutagenesis

UV mutagenesis

alp1 knock-out

alp1 knock-out

UV mutagenesis

HCprt- with major protease gene alp1 disrupted

LCprt- with major protease gene alp1 disrupted

Protease-deficient

Protease-deficient

Viscosity Protein:Biomass Protein Yield

NG7C-19 (hi visc) UV18-25 (low visc) UV18-25 (optimized)

Viscosity Protein:Biomass Protein Yield

NG7C-19 (hi visc) UV18-25 (low visc) UV18-25 (optimized)NG7C-19 HC

Viscosity Proteinyield

Vis

cosi

ty (

cP)

100

200

300

400

500

Pro

tein

(g/

L)

20

40

60

80

100

Viscosity Protein:Biomass Protein Yield

NG7C-19 (hi visc) UV18-25 (low visc) UV18-25 (optimized)

Development lineage of protein hyper-producing strains

30

The LC strain for protein production

Development high productivity low protease activity of host strains for specific proteins productions

LCprt- with specific protease disruption

Protease deficient strain

De-repressed cellulase production

31

Cellulase over producer

Wild-type

High cellulase,Low viscosity

Low cellulase,Low viscosity

pH

5.5

pH

7.0

pH

8.5

0

200

400

600

800

1000

LC LCprt- LCprt-Δalp1

Pro

teas

e a

ctiv

ity

U/m

l pH 5.5

pH 7.0

pH 8.5

B

Protease activity

Host strains with low protease activity developed for heterologous protein production

LC with low protease activity

32

33

High yields, high purity, low cost

at industry leading scale

Two serendipitous mutations created the world class C1 expression system

100 g/L

80%Purity

500,000 Liter scale

Over 100 grams per liter protein

Up to 80% of target protein has been achieved

Currently produced in up to 500,000 liter scale

Synthetic biology start-ups – large and small – struggle with the reality of scaling up microscopic cellular factories into profitable business models

Dyadic’s patented & proprietary C1

expression system is being used to produce biological products at very high yields, low cost and in large commercial fermenters.

World Class Productivity & Purity

LC expression of specific proteins

LC-1 LC-2 LC-3 LC-4

34

Dyadic’s C1, LC strains

successfuly used for production of single and multiple proteins derived from fungal, bacteria, bacterial-directed evolution, mammalian, human and viral strains.

The expression reaches high production levels of secreted proteins – > 100 g/l with ~ 80% purity of the targeted protein.

The LC strain/s is fermented at large commercial scale.

WT

LC

HC

The revolutionary C1 LC “White Strain”

C1 strain types

C1 LC “White Strains”

have very different morphology than the C1 Wild Type Strains

C1-cellulase accepted by FDA on September 29, 2009

GRAS Notification letter is a public statement by FDA acknowledging Dyadic’s safety determination for the

intended uses of C1

GRAS Notification letters are broadly recognized in the food and consumer products industries as the safety standard

C1 strain non-toxic

Pathogenicity and toxigenicitydata: strain is non-infectious and no known toxins are produced

Peer-reviewed scientific literature have confirmed — no known pathogencity

No mycotoxins found

C1 enzyme testing

In vivo feeding trails: 14 day dose study in rats

13 week subchronic rat study Genotoxicity testing:

AMES bacterial mutagenesis Chromosomal aberration test Genetic mutation test

No adverse effects observed No foreign DNA Safety confirmed

Generally Recognized as Safe (GRAS) status acknowledged by the FDA

35

C1 has an excellent safety profile

C1 Technology Overview

36

THE C1 EXPRESSION SYSTEM FOR BIOPHARMACEUTICALS

C1 expression system turns DNA into Biologic Medicines

38

Treatment options for disabling & life-

threatening diseases

Dyadic Inside® Biologic Medicines

C1 Cells turns genes into biologic

medicines

A template for enzymes and other

proteins

Genes

Expression was achieved of both: heavy and light chainswere obtained.

Heterodimeric antibody molecules were formed efficiently,allowing simple purification of the protein from the culturefluid using Protein A.

Cell-based bio-assays performed revealed almost completebioactivity.

39

Heavy chain

Light chainPeter Punt, TNO 2007

Produced biologically active monoclonal antibodies in C1

Expression of mAb in C1

C1 CELL ENGINEERING PROGRAMS

40

Dyadic’s advanced genetic toolkit for manipulation of C1

C1 Genetics tools

41

MTP-based C1 fermentation property enables rapid screening of any new inserted protein

42

Library construction Screening Fermentation

Hit verification

Chromosome NotI NotI

NotI NotIC

BamHI BamHI

hTEL Pcbh TcbhpyrG insert AmpR pyrE hTEL

NotI NotIB

A

BamHI

pPinsT pyrE tel pyrG

Not I

pyrE

hTEL

I-CeuIhTEL

pyrGPcbh

insert DNA

Tcbh

AmpR

BamHI

Not I

Chromosome NotI NotI

NotI NotIC

BamHI BamHI

hTEL Pcbh TcbhpyrG insert AmpR pyrE hTEL

NotI NotIB

A

BamHI

pPinsT pyrE tel pyrG

Not I

pyrE

hTEL

I-CeuIhTEL

pyrGPcbh

insert DNA

Tcbh

AmpR

BamHI

Not I

RescreeningTransformation

2 M 4 M 6 M 8 M

Screening

Rapid screening

LC expression technology

Gene 1

Optimizing codon usageLibraries of efficient

strong promoter

Libraries of TF and signal peptides and / or carrier

proteins

Protease activity reduction LC

StrainAdjustment of post-

translational modification

Computational Biology for

Advanced genetic manipulation methodologies enable rapid and efficient cloning of heterologous genes

43

Protease deficient C1 host strains

44

C1(wt)

0

10

20

30

40

0 20 40 60 80 100

time (h)

pept

ide

bond

s (m

mol

)

UV18-25#100f

0

10

20

30

40

0 20 40 60 80 100

time (h)

pept

ide

bond

s (m

mol

)

Protease deficient strains were developedto improve the stability of expressedheterologous proteins.

Elimination of 3 specific active proteasesresulted in complete stable light and heavychain of IgG1 expressed in C1.

Protease

State of the art molecular engineering methods based on computationalbiology will enable us to eliminate specific proteases to stabilize biologicproteins.

C1 WT C1 Δ proteases

LC with low protease activity

C1 Glycans resemble human structure

40

C1 Glycans

C1 Glycoengineering for biosimilars and biobetters applications

G0

N-acetylglucosamine

Mannose

Fucose

Galactose

Sialic acid

G1

Important in ADCC.Deleted forms have 10-100x higher potency

1 or 3 additional mannose may be added.

G0: Simplest structure that is human and yet still fully functional. “Human neutral”

Terminal Sialic acid not necessary.

Dyadic will collaborate with several Biotechnology groups to use state of the art technology for glyco-engineering C1 to resemble human structure.

Glycoengineering C1 Cells

41

47

C1 genome sequenced and annotated

Extensive molecular toolbox with high efficiency, stable integration

Advantageous growth conditions with low cost defined media

Track record of producing high protein yields, under low viscosity, at varying scales, up to 500,000 liters

Excellent safety record and Generally Recognized as Safe (GRAS) status acknowledged by the FDA

Platform technology

Programmable to produce tailored “purer” proteins

Effective homologous and heterologous gene expression

Expressed proteins are secreted into the fermentation broth

Serves as both a research and production host

Cost effective product

development

Freedom to operate No royalty stacking

47

C1 Expression System advantages

48

When 10,000 liter production

fermenter can be reduced to

200 liter the saving is significant

in 3 ways:

1) Capital investment

required to build launch

capacity

2) factory with launch

capacity needs to be

constructed 24 month

before FDA approval,

or very costly CMO

3) FDA license easier for

small factory

C1 advantage in saving CapEx investment

20-10-

300-

500-

20-10-

300-

100-

2 g/l 20 g/l

C1 high productivity lowers development costs

Biosimilars saving with C1

DYADIC'S C1 TECHNOLOGY POISED FOR SUCCESS

49

50

Moscow State University

Dyadic has a history of strong scientific collaborations

51

The C1 White Strain 2.0 produces high levels of purer proteins

Glycoengineering C1 cells to adapt it to the specific needs for broad biopharmaceutical products

Continued clean-up of the expression system background and further improvements made to downstream purification process

Technology improvements

Sanofi project has continued into 2016

New EU funded program (ZAPI) with Merial for animal vaccines through 2018

Progress with commercial

partners

Additional resources

Added two new Board members with significant pharmaceutical industry experience

Added additional resources and expertise to address technology hurdles

Strengthened Balance Sheet

Focus on Biopharmaceuticals

We are well-positioned in the biologics market

52

C1 is a developed host system that has high potential to be used forthe Biopharmaceutical market.

For vaccine production C1 system may offer rapid development timeand flexible production capacity at different sites.

The global Biosimilar market is growing steadily since the need forlower cost biologics among the developed and pharma emergingcountries is critical. “Global Biosimilar Market Outlook 2020”, reveals that the market, which was worth

US$ 1.89 Billion in 2014, is expected to reach US$ 25.53 Billion by 2020, growing at animpressive CAGR of 54.4%. 3

The increasing Biosimilar competition will eventually drive the costdown to 45% and below.

C1 high productivity system, for Vaccines, mAbs and other Biologics,will offer significant saving in CapEx and operational cost.

Summary

Therapeutic Biologic Drug Market to Soar at 10.1% CAGR till 2020, ~ $287 Billion