Lifecore Biomedical, Inc. · NASDAQ:LFCR
Lifecore Biomedical — Landec Corp \ca\ — Investor Presentation (August 2022)
24 slides from Lifecore Biomedical's investor presentation, Aug 10, 2022
Slide 1: Lifecore Biomedical Investor Presentation August 2022
CONFIDENTIAL 1 Lifecore Biomedical Investor Presentation August 2022 Progress made www.lifecore.com possible (Nasdaq: LNDC)
Slide 2: Important Information Regarding Forward-Looking Statements
This presentation contains forward-looking statements regarding future events and our future results that are subject to the safe harbor created under the Private Securities Litigation Reform Act of 1995 and other safe harbors under the Securities Act of 1933 and the Securities Exchange Act of 1934.
Slide 3: Lifecore Business Highlights
Lifecore Business Highlights Large, growing addressable markets with attractive underlying tailwinds supported by long-term customer relationships and low turnover 35+ years of exceptional quality, safety, and regulatory compliance with available capacity & state-of-the-art facilities to support fut
Slide 4: Lifecore Biomedical
79% 21% Revenue Streams FY22 Total Revenues: $109.3M Lifecore Biomedical To provide high quality innovative product development and manufacturing solutions for our partners, guided by our unwavering commitment to improving people’s lives CDMO HA Raw Material Progress made possible 4 Continuing to in
Slide 5: Growth Strategies
Growth Strategies 5 EXPANSION OF DEVELOPMENT PIPELINE AND COMMERCIAL SERVICES TARGET INCREASING OPERATIONAL CAPACITY • Invest in people and systems to support expanded development pipeline and services • Targeted sales and marketing strategy • Identify and expand development services portfolio • Ide
Slide 6: Leveraging over 35 years of experience to bring customers' innovations to market
1983 First commercial sales of sodium hyaluronate (HA) 1981 Lifecore initiates sodium hyaluronate (HA) production 1986 First FDA approved product with Lifecore HA 1994 First Ophthalmic Aseptic Product 2021 FDA approval of 2 products manufactured at Lifecore Progress Made Possible Leveraging over 35
Slide 7: State-Of-The-Art Manufacturing Sites
State-Of-The-Art Manufacturing Sites Lifecore maintains two state-of-the-art facilities to support the development and manufacturing needs of our clients Four ISO 5 clean rooms with various fillers supported by five ISO 7 formulation rooms Invested approximately $100M during the past 10 years and $5
Slide 8: Extensive Regulatory Systems & Excellent Quality Record
Extensive Regulatory Systems & Excellent Quality Record • Three sites operating under cGMP and regularly inspected • World class quality system leads to excellent regulatory record • ~80 customer audit days routinely held annually QMS Multi-Regulation Compliant 35+ years of a strong track record wit
Slide 9: Highly Differentiated End-To-End Capabilities
Highly Differentiated End-To-End Capabilities ✔ Global leader in Hyaluronic Acid (HA) manufacturing ✔ Research grade HA available in powder form supporting standard and custom modified options ✔ Services provided from early stage through validation/qualification ✔ Services range from formulation, pr
Slide 10: Trusted Producer of Premium Pharmaceutical Injectable Grade Hyaluronic Acid
Trusted Producer of Premium Pharmaceutical Injectable Grade Hyaluronic Acid Type of HA Quality General Uses & Types of Products Barriers to Competition Pharmaceutical Injectable grade High Governed by regulatory agencies ✔Ophthalmic surgery ✔Joint Injections ✔Bone grafts ✔Intra-articular injections
Slide 11: Injectable Products Lead Growth in Drug Development Market
Injectable Products Lead Growth in Drug Development Market SPECIALITY SOLID SEMISOLID & LIQUID INJECTABLE $6.02 Billion Injectable segment is expected to grow at 10.5% CAGR from 2020-2025* 11 • Equipment Differentiated & Unique • High Value Molecules • Technical Expertise Required Approximate CDMO m
Slide 12: Favorable Anticipated Trends Fuel Long-Term CDMO Demand
Lifecore is in a strong position to accelerate growth Favorable Anticipated Trends Fuel Long-Term CDMO Demand & Value for Lifecore Growing injectable NDA approvals High propensity to outsource manufacturing among small & mid-sized organizations *(Pre-Clinical; Phase 1-3) 2008 – 2019 - William Blair,
Slide 13: Long-Term, Blue Chip Customer Base
Long-Term, Blue Chip Customer Base Blue-chip customer base spans: Customers choose Lifecore: • Supports all phases of development and commercial lifecycle • Strong capabilities in manufacturing and supplying pharmaceutical-grade HA in bulk form and injectables • Technical expertise in high viscous s
Slide 14: Managing Our Pipeline Project Lifecycle
Managing Our Pipeline Project Lifecycle CDMO Revenue Opportunities Lifecore can address customers’ entire development and commercial lifecycle *Projects are defined as individual drugs or devices for which Lifecore provides manufacturing services; fiscal third quarter data, as of 2/27/22 Phase 3Prec
Slide 15: Our Existing Project Breakdown
Our Existing Project Breakdown Proof of Concept Development Development Scale-up Number of Projects 5 11 8 Anticipated Remaining Time to Commercialization* 3-10 years 2-8 years 1-4 years Therapeutic Area Ophthalmic disorders Non-Opioid Pain, Interstitial Cystitis, Diabetes Ophthalmic, Non-Opioid Pa
Slide 16: Project Portfolio Revenue Potential
Project Portfolio Revenue Potential Annual Product Revenue Potential # of Projects Annual Target Revenue Opportunity >$10 million 3 $30 – $75 million $5 – $10 million 2 $10 – $20 million <$5 million 3 $5 – $25 million 16 1) Early-phase development projects represent programs that are all contracted
Slide 17: Long History of Stable, Sustainable Growth in Commercial Revenue & EBITDA
*Temporary COVID impact Revenue ($ in millions) EBITDA Long History of Stable, Sustainable Growth in Commercial Revenue & EBITDA Attractive EBITDA margin profile with room for expansion as capacity utilization increases $40.4 $50.5 $59.4 $65.4 $75.9 $85.8 $98.1 $109.3 FY15 FY16 FY17 FY18 FY19 FY20 F
Slide 18: Recent Financial Results: Fourth Quarter & Full Year
Revenue ($ in millions) Adjusted EBITDA(2) Recent Fiscal 2022 Financial Results: Fourth Quarter & Full Year(1) $25.8 $27.6 $98.1 $109.3 4Q21 4Q22 FY21 FY22 29.8% 31.9%1.3% 6.9% YoY Growth %: Adj. EBITDA Margin %: ($ in millions) $7.7 $8.8 $24.5 $28.9 4Q21 4Q22 FY21 FY22 18 (1) As of fiscal fourth qu
Slide 19: Plan to Increase Operational Capacity by FY25
Plan to Increase Operational Capacity by FY25 0 5 10 15 20 25 FY22 FY25 Illustrative Capacity Growth: Near-Term Opportunity to Drive Capacity Utilization and Higher Fill Rates Units Filled (FY22 Actual; FY25 Target) C a p a c it y ( M ill io n s o f u n it s ) +100% vs. FY21 2. Theoretical target ca
Slide 20: Our FY23 Outlook
Our FY23 Outlook Guidance: FY23 vs FY22 $122mm - $126mm +12% - 15% $31mm - $32.5mm +7% - 12% Key Drivers & Activity 2. Expansion of the development project pipeline 3. Anticipated initial commercial revenues from ZYNRELEF® product and 3 additional new FDA approved products 4. $34 - $38 million of an
Slide 21: Meet the Lifecore Team
Meet the Lifecore Team Highly Experienced Management Team with Deep Industry Expertise & Proven Ability to Execute Jim Hall John Morberg Jackie Klecker Darren Hieber Rick Sitarz Kipling Thacker, PhD Scott Collins Phil Sticha Kara Morley Steve Laninga Matt Augustson Position CEO Landec, Pres. Lifecor
Slide 22: Lifecore Business Highlights
Lifecore Business Highlights Large, growing addressable markets with attractive underlying tailwinds supported by long-term customer relationships and low turnover 35+ years of exceptional quality, safety, and regulatory compliance with available capacity & state-of-the-art facilities to support fut
Slide 23: Thank You
Investment Highlights CONFIDENTIAL 23 Thank You CONFIDENTIAL Progress made www.lifecore.com possible
Slide 24: GAAP Net Income (Loss) to Non-GAAP EBITDA and Adjusted EBITDA
GAAP Net Income (Loss) to Non-GAAP EBITDA and Adjusted EBITDA 24 (in thousands) May 29, 2022 May 30, 2021 May 29, 2022 May 30, 2021 GAAP net income 5,359$ 4,753$ 16,675$ 14,461$ Interest income (15) - (72) - Income tax expense 1,692 1,502 5,266 4,568 Depreciation and amortization 1,779 1,447 6,673 5
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