Dyadic Applied BioSolutions and Dutch developer BRIG BIO announced a Development and Commercialization Agreement on December 1 2025 to jointly develop and commercialize recombinant bovine alpha‑lactalbumin, a high‑value whey protein used in infant formula, medical nutrition, and active‑aging products.
Under the deal, BRIG BIO will fully fund the development program and receive a global commercial license to Dyadic’s proprietary Dapibus™ fungal expression strains that produce the protein. In return, Dyadic will receive milestone payments, long‑term revenue participation from commercial sales, and co‑marketing and sales rights, thereby reducing its upfront financial exposure while positioning it to capture a share of the growing market.
The animal‑free alpha‑lactalbumin market was valued at roughly $760 million in 2025 and is projected to exceed $1.6 billion by 2035. The partnership aligns with the broader trend toward precision‑fermented, animal‑free proteins and offers a scalable, sustainable alternative to traditional dairy‑derived ingredients.
For Dyadic, the agreement marks a key step in its strategic pivot from an R&D‑centric model to a commercialization focus. By leveraging its Dapibus platform and securing full development funding from BRIG BIO, Dyadic mitigates the risk of costly in‑house development while gaining a pathway to future revenue through milestone payments and royalties.
Joe Hazelton, President & COO of Dyadic, said the partnership “positions Dyadic to participate directly in the commercial opportunity for animal‑free alpha‑lactalbumin through both milestone and royalty revenue.” Steven Welle, CEO of BRIG BIO, highlighted Dyadic’s technology as providing the scalability and efficiency needed for commercial success.
The announcement triggered an initial positive reaction in the market, with the Dyadic stock gaining early in the trading day. By the close, the gains had largely been taken back, reflecting a mix of investor caution and the absence of immediate follow‑on catalysts beyond the partnership terms.
For investors, the deal signals a tangible revenue pathway for Dyadic and a reduction in capital outlay risk. While the exact milestone amounts and revenue share percentages remain undisclosed, the agreement’s structure and the projected market growth suggest a potentially significant upside for Dyadic’s future earnings, contingent on successful development and regulatory approval.
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