Immucell Corporation · NASDAQ:ICCC
Immucell — Investor Presentation (November 2023)
52 slides from Immucell's investor presentation, November 2023
Slide 1: ImmuCell Corporation Investor Presentation November 2023
ImmuCell Corporation Investor Presentation November 2023 (Nasdaq: ICCC)
Slide 2: Forward-Looking Statements
Forward-Looking Statements Cautionary Note Regarding Forward-Looking Statements (Safe Harbor Statement): This presentation contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Forward-looking statements can be identified by the
Slide 3: Table of Contents
Table of Contents 1) Company Overview and Strategic Opportunity..…….……..…………………………………………………….….….....4-27 2) Testimonials………………………………………………………………….……..…….…………………………………….……….…28-32 3) Financial Review(1).………………..….……..……………………………..……………………………………………..…..........33-39 4) Other Information..……………...……….
Slide 4: Section #1: Company Overview and Strategic Opportunity
Section #1: Company Overview and Strategic Opportunity 4
Slide 5: Company Overview
Company Overview ImmuCell Corporation (Nasdaq: ICCC) is an animal health company focused on: • Capitalizing on the significant growth in sales of the First Defense® product line (for dairy and beef calves) and revolutionizing the subclinical mastitis treatment paradigm with Re-Tain®, our novel purif
Slide 6: Expansion of First Defense production capacity
Expansion of First Defense® production capacity For a video tour of this new production space, see: YouTube https://youtu.be/bR4Dp8raAEc 6
Slide 7: What Role Does ImmuCell Play?
What Role Does ImmuCell Play? • Focus on solving the two most frustrating problems for dairy systems – scours and mastitis – in a way that reduces dependence on antibiotics • Improve the food chain with less antibiotics(1) • Cows are more productive if we reduce the use of certain non-essential vacc
Slide 8: Disruptions/Catalysts
Disruptions/Catalysts Product Disruptions Catalysts The first level of our expanded The First Defense® product line disrupts production capacity came on-line during the scours prevention market by 4Q 2021 to help us fill the large backlog First Defense® providing an effective alternative to of order
Slide 9: Three Most Critical Action Items
Three Most Critical Action Items 1 2 3 Significantly Achieve FDA Prove market grow sales of the approval of Re-Tain® acceptance of Re- First Defense® Tain® with current product line $10 million worth of annual production capacity 9
Slide 10: Got Milk? Undeniably Dairy
4 Got Milk? Undeniably Dairy Coconut Juice Almond Juice Hemp Juice Oat Juice Soy Juice Milk Protein Content:(1) 0 grams 1 gram 3 grams 4 grams 6 or 7 grams 8 grams Carbohydrate Content:(1) 10 grams(2) 16 grams(2) 24 grams(2) 24-25 grams 10 grams(2) 12-13 grams(3) Cost Per Cup:(4) $0.50 $0.50-$0.63 $
Slide 11: Enjoy some milk and cookies; Support the dairy industry
4 Enjoy some milk and cookies; Support the dairy industry 11
Slide 12: Eat more pizza; Support the dairy industry
4 Eat more pizza; Support the dairy industry 12
Slide 13: Our Product Lines
Our Product Lines First Defense® Re-Tain® Dual-Force® (Subject to FDA review and approval) Our First Defense® product line with E. coli and coronavirus claims Our purified Nisin treatment for subclinical mastitis in lactating cows • U.S. market opportunity: About $23.4 million in annual sales of cal
Slide 14: What do Producers do to Prevent Scours?
What do Producers do to Prevent Scours? 1 2 3 Action: Nothing Treat the calf Vaccinate the mother cow Estimated $0(1) Product ̴$24 million ̴$48 million Sales: ScourGuard by Zoetis Product N/A Calf-Guard by Zoetis Guardian by Merck Options: BOVILIS Coronavirus by Merck Scour Bos by Elanco (1) This fi
Slide 15: Calf-Level Competitive Product Comparison
Calf-Level Competitive Product Comparison USDA Claims Product Mode-of Action E. coli Corona Rota The First Defense® Two-part: delivers bovine antibodies to the gut that are absorbed product line into the bloodstream (ImmuCell) Calf-Guard® Forces calf to mount an immune response to a modified-live vi
Slide 16: Calf-Level U.S. Market Share (in volume)
Calf-Level U.S. Market Share (in volume) Long-term growth is expected due to the expansion of our sales & marketing team and the addition of a rotavirus claim to the First Defense® product line Year Ended Year Ended Year Ended Year Ended December 31, 2019 December 31, 2020 December 31, 2021 December
Slide 17: Waste Less, Get More
Waste Less, Get More DAM-LEVEL SCOUR VACCINE APPROX. 56% OF FUNDS SPENT GO TO 100% OF FUNDS SPENT GO TO -BULL CALVES 44% OF SPEND LIVEBORN - -DOA/ABORTS HITS TARGET VALUED -LIMITED VACCINE CALVES RESPONSE 17
Slide 18: Calf-Level and Dam-Level U.S. Market Share (in volume)
Calf-Level and Dam-Level U.S. Market Share (in volume)(1) Huge market opportunity as we go Beyond Vaccination® and compete more effectively against vaccines that are given to mother cows Year Ended Year Ended Year Ended Year Ended December 31, 2019 December 31, 2020 December 31, 2021 December 31, 20
Slide 19: Strategy to Increase Sales
Strategy to Increase Sales • We now support our distributors with eight regional sales managers, one commercial leader of stakeholder engagement, one commercial research & technical services veterinarian and one director of marketing, reporting to our vice president of sales and marketing. • Expande
Slide 20: Be a Calf Hero.
Be a Calf Hero. (Clo aa RCI NATIONN ~ \Defe y MK VACCINATION, 20
Slide 21: Our Product Lines
Our Product Lines First Defense® Re-Tain® Dual-Force® (Subject to FDA review and approval) Our First Defense® product line with E. coli and coronavirus claims Our purified Nisin treatment for subclinical mastitis in lactating cows • U.S. market opportunity: About $23.4 million in annual sales of cal
Slide 22: Mastitis: Leading Cause of Economic Harm to the Dairy Industry
Mastitis: Leading Cause of Economic Harm to the Dairy Industry $2 Billion(1) • Mastitis is a potentially fatal mammary gland infection – $2 billion per year in the U.S. alone – The single largest economic harm to the dairy industry(2) • Traditional antibiotic treatments are available on the market,
Slide 23: Re-Tain: Novel Alternative to Traditional Antibiotics
Re-Tain®: Novel Alternative to Traditional Antibiotics Novel Alternative Value Proposition • “Game changer”: could make treatment of subclinical • Zero milk discard and zero meat withhold claims (in the mastitis (infected, but still producing saleable milk) U.S.) economically feasible • Higher quali
Slide 24: Why Treat Subclinical Mastitis?
Why Treat Subclinical Mastitis? • A cow infected with subclinical mastitis is “stuck between a rock and a hard place” because the dairy farmer KNOWS she is sick but cannot JUSTIFY the cost of “dumped” milk required to treat her. • Subclinical mastitis is a chronic infection that should not be ignore
Slide 25: Review of Competitive Product Claims
Review of Competitive Product Claims Effective Against Active Label Claims Brand (Manufacturer) Strep. Staph. Strep. Strep. Ingredient CNS E. coli agal. aureus dysgal. uberis Subclinical Clinical Re-Tain® (1) Nisin A (ImmuCell) Spectramast LC Ceftiofur Clinical Only (Zoetis) Pirsue Pirlimycin (Zoeti
Slide 26: Cost of “Dumped” Milk
Cost of “Dumped” Milk Range in costs per cow associated with milk discard for traditional antibiotics with subclinical mastitis disease claims Average Cost Treatment Discard Total Dump Cost per Brand Name Company of Dumped Days(1) Days(1) Days Treatment(3) Milk(2) Re-Tain® ImmuCell 0 0 0 $0 $45.00 S
Slide 27: Status of NADA for Re-Tain
Status of NADA for Re-Tain® We have completed 4 out of 5 NADA Technical Sections required for FDA approval Development Item Date Completed 1. Environmental Impact Technical Section Complete Letter from the FDA 3Q 2008 2. Target Animal Safety (TAS) Technical Section Complete Letter from the FDA 2Q 20
Slide 28: Section #2: Testimonials
Section #2: Testimonials 28
Slide 29: Customer Testimonials
Customer Testimonials “ First Defense® is like an insurance policy that pays for itself in spades. Say “ About seven years ago, we were having a serious problem with rotavirus and “ Approximately 10 years ago we had a minor flare-up of scours in our herd. Treating “ We began using First Defense® dur
Slide 30: Customer Testimonials
Customer Testimonials “ “ “ “ “ Tri-Shield® is the most Diagnostics have shown Over the years we We have been using Our day-one protocols are reliable way for us to rotavirus has been the layered in 3 different Tri-Shield® for 2 years consistent and calf prevent calf scours and cause of calf deaths
Slide 31: Customer Testimonials
Customer Testimonials “ “ “ “ “ We’ve had a legacy of Tri-Shield® is much easier to We had lots of issues with Out pasteurized colostrum Tri-Shield® is a highly effective rotavirus here. We couldn’t apply than a dam-level our calves before Tri-Shield®. program is highly monitored. and easy to delive
Slide 32: Customer Testimonials: Research Proven
Customer Testimonials …we went from 40% scour down to 15% RESEARCH PROVEN …simple to administer and produces results …a huge return “The first two weeks of life are very important “Prior to adding First Defense® to our regimen, our calves “We have been using First Defense® for the last 3-4 because t
Slide 33: Section #3: Financial Review
Section #3: Financial Review 33
Slide 34: Balance Sheet & Capitalization
Balance Sheet & Capitalization (In millions except for percentages and per share amounts) Balance Sheet (as of 09/30/2023) Capitalization Table (as of 11/01/2023) Cash and cash equivalents $2.0 Stock price (per share) $5.10 Net working capital $8.6 Shares outstanding 7.75 Total assets $44.5 Options
Slide 35: Total Product Sales
Total Product Sales $20.0 $19.2 $18.6 $18.0 $16.0 12.4% $15.3 CAGR $13.7 (2011-2022) $14.0 14.0% $ in millions $12.0 $11.0 CAGR $10.4 (2018-2022) $10.2 $10.0 $9.5 10.6% $8.0 $7.6 CAGR (2019-2022) $6.0 $6.0 $5.1 $5.4 $4.0 $2.0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 35
Slide 36: Income Statement
Income Statement ($ in millions, except percentages During the Three-Month During the Nine-Month and per share amounts) Periods Ended September 30, Periods Ended September 30, 2023 2022 2023 2022 Product Sales $5.4 $4.8 $12.4 $14.7 Gross Margin $1.3 $1.8 $2.6 $6.7 Gross Margin % 23% 38% 21% 45% Net
Slide 37: Non-GAAP Measures
Non-GAAP Measures Generally, a non-GAAP financial measure is a numerical measure of a company’s performance, financial position or cash flow that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accorda
Slide 38: Capital Expenditures
Capital Expenditures During 2019, we initiated several additional capital expenditure investments in First Defense® and Re-Tain® as detailed in the following table (in thousands): Year Paid First Defense® Re-Tain® Total Year Ended December 31, 2019 $279 $538 $817 Year Ended December 31, 2020 2,938 5
Slide 39: Economics of Dairy Industry
Economics of Dairy Industry • Milk price improved during 2014, but it has not returned to that level since. The price for 2022 was 29% higher than the 2021 average. • The Milk-to-Feed Ratio has not returned to the high level reached in 2014. Average Class III Milk Price Average Milk-to-Feed Price Ra
Slide 40: Section #4: Other Information
Section #4: Other Information 40
Slide 41: First Defense Product Line
First Defense® Product Line • The First Defense® product line is the only USDA-licensed, orally delivered scours preventative with claims against E. coli, coronavirus and rotavirus. • Colostrum (first milk) consumption immediately after birth provides critically important antibodies before the immun
Slide 42: First Defense Product Line (continued)
First Defense® Product Line (continued) • More than 32 million doses sold in aggregate (as of 2Q 2023) • Annual gross margin goal: 45-50% • With the addition of rotavirus claim, we provide a unique breadth of protection against three leading pathogens • Improved competitive position against calf-lev
Slide 43: Cattle Market Overview
Cattle Market Overview Cattle inventory in markets currently served Cattle inventory in new markets being researched Pakistan Australia South Africa United States Turkey 11% Canada Jordan South Korea Russia Japan France Iran 77% Germany Ireland Poland Spain Total number of dairy and beef cattle: 116
Slide 44: What is Scours?
What is Scours? • The disease manifests as rampant, uncontrolled diarrhea in newborn calves. • Scours is the leading calf disease risk. We estimate the cost to the U.S. dairy and beef industries to be approximately $741 million.(1) • Percent of pre-weaned heifer deaths caused by scours or other dige
Slide 45: Scours: Cost to the U.S. Dairy & Beef Industries
Scours: Cost to the U.S. Dairy & Beef Industries Dairy Calf Deaths Beef Calf Deaths Scours Related Cost to Dairy Industry $119 million – Calf Deaths Deaths prior to weaning 7.8% Deaths prior to weaning 6.4% $45 million – Scours Treatments % of above deaths from scours 56.5% % of above deaths from sc
Slide 46: Relevant Regulatory Initiatives
Relevant Regulatory Initiatives -2011: Dutch Veterinary Society restricts the use of beta lactams in cattle -2012: FDA further restricts the use of cephalosporins in food animals -2017: Veterinary Feed Directive (VFD) restricts the use of medically important antibiotics -2018: FDA announced 5-year p
Slide 47: Key Publications Related to the Subclinical Mastitis Market Opportunity
Key Publications Related to the Subclinical Mastitis Market Opportunity • New York State Cattle Health Assurance Program, Mastitis Module-Veterinary Resource, “Epidemiology of Mastitis”. • Santman-Berends, IM. (2012, May), Incidence of subclinical mastitis in Dutch dairy heifers in the first 100 day
Slide 48: Executive Management Team
Executive Management Team • Joined ICCC in September 1989 Michael F. Brigham • Appointed as President and Chief Executive Officer in February 2000 President and Chief Executive Officer, • Director since 1999 Director • Audit Manager at Ernst & Young prior to joining ICCC • Joined ICCC in January 201
Slide 49: Board of Directors (outside directors)
Board of Directors (outside directors) Gloria J. Basse • Member of the Compensation and Stock Option Committee Director • Director since 2020 • Zoetis, Context Network, independent consultant, Tonisity International Bryan K. Gathagan • Member of the Audit Committee Director • Director since June 202
Slide 50: Board of Directors (outside directors) (continued)
Board of Directors (outside directors) (continued) David S. Tomsche, D.V.M. Chair of the Board • Appointed to Chair of the Board in February 2013 • Director since 2006 • Leedstone Inc., J-t Enterprises of Melrose, VetPharm Inc. Paul R. Wainman • Member of the Audit Committee and Nominating Committee
Slide 51: Sales & Marketing Territories
Sales & Marketing Territories Your Calf Crew® Bobbi Brockmann Mark Wustenberg, DVM Vice President of Sales & Marketing Commercial Leader of Stakeholder 515-450-2035 Engagement bbrockmann@immucell.com 23227 94th Ave North Kathy Becher Port Byron, IL 61275 Director of Marketing 507-429-4591 Raffael Li
Slide 52: Contact Information
Contact Information Company Contact Investor Relations Contact ImmuCell Corporation Lytham Partners, LLC Nasdaq: ICCC Robert Blum Michael F. Brigham Joseph Diaz President and CEO Joe Dorame Adam Lowensteiner (NY) 56 Evergreen Drive Portland, ME 04103 (602) 889-9700 – Phoenix (207) 878-2770 (646) 829