Arcadia Biosciences, Inc. · NASDAQ:RKDA
Arcadia Biosciences — Morgan Stanley Global Chemicals and Agriculture Conference 2015
18 slides from Arcadia Biosciences's conference presentation, Nov 9, 2015
Slide 1: Morgan Stanley Global Chemicals and Agriculture Conference
Morgan Stanley Global Chemicals and Agriculture Conference November 9, 2015
Slide 2: Forward-looking statements
Forward-looking statements “Safe Harbor” statement under the Private Securities Litigation Reform Act of 1995: This presentation c ontains forward-looking statements about the company and its products, including statements relating to components of the company’s long-term financial success;; the
Slide 3: Arcadia is creating next wave of value in untapped agricultural markets
Arcadia is creating next wave of value in untapped agricultural markets Leading ag-biotech trait company with more than a decade of global experience developing GM and non-GM traits Catalytic role: We bridge and de-risk the gap Arcadia’s Target Space between basic research and commercial developm
Slide 4: Significant growth potential exists from next wave of abiotic stress traits
Significant growth potential exists from next wave of abiotic stress traits Addressing yield losses caused by abiotic stresses Abiotic stress accounts for 66-82% of lost yield represents untapped growth opportunity Average yield Biotic losses Abiotic losses % of record y ield Limited number of comm
Slide 5: Open architecture maximizes technology access and global market penetration
Open architecture maximizes technology access and global market penetration Source: Company information, Phillips McDougall, Seed Industry June 2014. 5
Slide 6: Clear path to sustained financial growth with products in development
Clear path to sustained financial growth with 50 products in development Phase PROGRAM Crop Collaborator(s) Key Markets D 1 2 3 4 5 PRODUCTIVITY TRAITS Nitrogen Use Efficiency (NUE) Wheat Limagrain, Mahyco, CSIRO, ACPFG Global Rice Mahyco, AATF Asia Soybean Verdeca Americas, Asia Corn - Global Cotto
Slide 7: Late-stage portfolio with 13 products in Phase 3 of development or later
Late-stage portfolio with 13 products in Phase 3 of development or later Phase D 1 2 3 4 C Months 24-48 12-24 12-24 12-24 12-36 Success1 5% 25% 50% 75% 90% Productivity t raits: Designed t o increase crop yields and income t hrough improved input efficiency and environmental stress t olerance
Slide 8: Top four traits represent significant revenue opportunity in major global crops
Top four traits represent significant revenue opportunity in major global crops Annual Trait Revenue Opportunity Approximately $9B-$14B By Trait By Crop Chart Title Sugarcane Canola 1% 4% Salinity Cotton Tolerance 6% 14% Rice Corn 17% 29% Heat Nitrogen Use Tolerance Efficiency 21% 43% Soybeans Whea
Slide 9: Partnered with leaders in target crops, markets and geographies
Partnered with leaders in target crops, markets and geographies • Owned by 200+ of largest s oybean • Verdeca J V partner Commercial agreements farmers in South America • Commercial partner enable and incentivize sub-licensing and s tacking • Leader in crop protection traits • Development and to ma
Slide 10: Regulatory approvals, commercial partnerships and patents continue to advance pipeline
Regulatory approvals, commercial partnerships and patents continue to advance pipeline Regulatory approvals Commercial partnerships Patent advancements Regulatory process completed for Verdeca c ollaboration with TMG to stress tolerant s oybeans in Argentina;; advance breeding of s tress tolerant US
Slide 11: Trait opportunity for HB4 Stress Tolerant soybeans is 25%–35% of South American acres
Trait opportunity for HB4 Stress Tolerant soybeans is 25% – 35% of South American acres Top five soybean producing countries HB4 commercial launch status • Regulatory approvals complete in Argentina • US FDA Early Food Safety Evaluation completed 45 • Submissions for production and import approvals
Slide 12: HB4 Stress Tolerant soybeans lift grower revenue and reward entire value chain
HB4 Stress Tolerant soybeans lift grower revenue and significantly reward entire value chain Yields increase by 4 bushels per acre under stress 42 41 Bushels per acre 40 38 36 37 34 Conventional Soybeans HB4 Soybeans Value created f or farmer: 100% ($40 per acre) Value retained by farmer: 60% – 65%
Slide 13: NUE rice demonstrates average yield increase of up to 30%
NUE rice demonstrates average yield increase of up to 30% Nitrogen Use Efficiency – Rice Market Potential Value Creation DEVELOPMENT PHASE / PROBABILITY OF SUCCESS • Global: 400M acres • Each 10% y ield increase D 1 2 3 4 C • Most v aluable global c rop creates 24-48 mo 12-24 mo 12-24 mo 12-24 m
Slide 14: Key patent issued for non-GM Resistant Starch wheat
Key patent issued for non-GM Resistant Starch wheat that improves health qualities of wheat Resistant Starch Wheat (non-GM) Market Potential Value Creation DEVELOPMENT PHASE / PROBABILITY OF SUCCESS • Global • Based on delivery of greater D 1 2 3 4 C • $2B market opportunity total dietary fiber in
Slide 15: Contractual milestones provide near-term revenue and visibility on progress
Contractual milestones provide near-term revenue and visibility on progress Initiation Commercialization Phase 1 2 3 4 C Tech Access Fee Greenhouse Efficacy Field Efficacy 1 Field Efficacy 2 (when applicable) Regulatory Submission Regulatory Approval Commercial Launch 15
Slide 16: Revenue mix poised to shift as pipeline progresses
Revenue mix poised to shift as pipeline progresses Third Quarter First Nine Months % Favorable/ % Favorable/ 2015 2014 (Unfavorable) 2015 2014 (Unfavorable) Product revenue 123 67 84% 383 266 44% License revenue 214 91 135% 773 462 67% Contract research and 1,486 1,344 11% 2,912 3,456 (16%) governme
Slide 17: Uses of cash focused on investment opportunities to accelerate growth
Uses of cash focused on investment opportunities to accelerate growth First nine months 2015 2014 expense mix comparison: n Cost of product revenues n R&D expense n SG&A expense Arcadia is at an inflection point where strategic investment can accelerate current pipeline and broaden portfolio Mode
Slide 18: Portfolio of late-stage products creates case for new investment in agriculture
Portfolio of late-stage products creates compelling case for new investment in agriculture Major global markets for high-value yield and quality products Unique model increases value, Arcadia’s Target Space reduces risk Proof of concept Net Value Late-stage portfolio, 13 products in Basic Technol
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