Lifecore Biomedical, Inc. · NASDAQ:LFCR
Lifecore Biomedical — Landec Corp \ca\ — Investor Presentation (January 2022)
22 slides from Lifecore Biomedical's investor presentation, Jan 10, 2022
Slide 1: Lifecore Biomedical Investor Presentation January 2022
CONFIDENTIAL 1 Lifecore Biomedical Investor Presentation January 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
Legacy Growth A leading supplier of pharmaceutical grade Hyaluronic acid (HA) in ophthalmology, orthopedic and veterinary medicines. A fully integrated Contract Development and Manufacturing Organization (CDMO) assisting companies to bring new and FDA-approved injectable therapies to market. Revenue
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 $100M during the past 10 years and $58M over the la
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: Lifecore is in a strong position to accelerate growth
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 Phase 3Preclinical Phase 1 Phase 2 CommercialRegistra
Slide 15: Our Existing Project Breakdown
Our Existing Project Breakdown Proof of Concept Development Development Scale-up Number of Projects 5 8 10 Anticipated Remaining Time to Commercialization* 3-10 years 2-8 years 1-4 years Therapeutic Area Ophthalmic, Metabolic disorders, Non-Opioid Pain Ophthalmic, Non-Opioid Pain, Aesthetic, Orthope
Slide 16: Revenue Potential of Scale-up Late-phase Projects
Revenue Potential of Scale-up Late-phase Projects 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 5 $5 – $25 million 16 Note: Projects noted above are anticipated to commence between 1
Slide 17: Long History of Stable, Sustainable Growth in Commercial Revenue & EBITDA
Revenue ($ 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 FY15 FY16 FY17 FY18 FY19 FY20 FY21 *Temporary COVID impact 28.
Slide 18: Plan to Increase Operational Capacity by FY25
Plan to Increase Operational Capacity by FY25 0 5 10 15 20 25 FY21 FY25 Illustrative Capacity Growth: Near-Term Opportunity to Drive Capacity Utilization and Higher Fill Rates Units Filled (FY21 Actual; FY25 Target) C ap ac ity (M illi on s of u ni ts ) +100% vs. FY21 2. Theoretical target capacity
Slide 19: Our FY22 Outlook
Our FY22 Outlook Guidance: FY22 vs FY21 $105mm - $108mm +7% - 10% $26mm - $27mm +6% - 10% Key Drivers & Activity 2. Expansion of the development project pipeline 3. Anticipated initial commercial revenues from ZYNRELEF® product 4. $32 million of anticipated capital investment in FY22 1. Investments
Slide 20: Meet the Lifecore Team
Meet the Lifecore Team Highly Experienced Management Team with Deep Industry Expertise & Proven Ability to Execute Name James Hall John Morberg Jackie Klecker Darren Hieber Rick Sitarz Kipling Thacker, PhD Scott Collins Kara Morley Steve Laninga Position President, Lifecore CFO VP and General Manage
Slide 21: 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 22: Thank You
Investment Highlights CONFIDENTIAL 22 Thank You CONFIDENTIAL Progress made www.lifecore.com possible
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