Arcadia Biosciences, Inc. · NASDAQ:RKDA
Arcadia Biosciences — Investor Presentation (May 2016)
22 slides from Arcadia Biosciences's investor presentation, May 24, 2016
Slide 1: Company Overview
Company Overview May 24, 2016
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: Mission
Mission Arcadia develops plants that create value for growers while improving the environment and enhancing human health Founded in 2002 Raised $68 MM in IPO in 2015 Nasdaq: RKDA Late-stage portfolio with 11 products in Phase 3 of development or later Headquarters and main R&D facilities in Davis,
Slide 4: Increasing agricultural yield is critical, and traits create significant value on the farm
Increasing agricultural yield is critical, and traits create significant value on the farm Population growth and increasing per capita income drive need for increased yield Arable land per c apita World population Meat c onsumption vs. GDP: more income = more c alories (ha) (B) (Per c apita meat c o
Slide 5: Arcadia addresses yield losses from abiotic stress, an untapped opportunity
Arcadia addresses yield losses from abiotic stress, an untapped opportunity 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 6: Bridging the gap between basic research and commercial development
Bridging the gap between basic research and commercial development Capitalizing on a decade of investments as product candidates Arcadia’s Target Space move closer to commercialization Proof of concept Net Value Risk Focusing on product development, regulatory and commercial needs Basic Research Tec
Slide 7: Business model reduces risk and leverages third-party capital and capabilities
Business model reduces risk and leverages third-party capital and capabilities Public Institutions Arcadia Licensees Gene Proof of Transform Field t rial Transform Product Regulatory Seed Activities discovery concept into crops data into t arget development approval marketing crops and sales Rice W
Slide 8: Late-stage portfolio with 11 products in Phase 3 of development or later
Late-stage portfolio with 11 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 9: Partnered with leaders in target crops, markets and geographies
Partnered with leaders in target crops, markets and geographies • Owned by ~300 of the largest • Verdeca J V partner soybean farmers in South America • Commercial partner Commercial agreements enable and incentivize • Leader in crop protection traits • Development and sub-licensing and s tacking •
Slide 10: Corn strategy leverages partner expertise and assets to advance yield and stress pipeline
Corn strategy leverages partner expertise and assets to advance yield and stress pipeline Yield and Stress Traits – Corn Market Potential Value Creation DEVELOPMENT PHASE / PROBABILITY OF SUCCESS • Global: 433M acres • Each 10% yield increase creates D 1 2 3 4 C ~$62 of added value per acre • Most v
Slide 11: NUE rice addresses world's most important food crop; driving double-digit yield increases
NUE rice addresses world’s most important food crop;; driving double-digit yield increases Nitrogen Use Efficiency – Rice Market Potential Value Creation DEVELOPMENT PHASE / PROBABILITY OF SUCCESS • Global: 400M acres • Each 10% yield increase creates D 1 2 3 4 C added value of ~$63 per acre • Most
Slide 12: NUE wheat drives significant yield increases in largest global crop
NUE wheat drives significant yield increases in largest global crop Nitrogen Use Efficiency – Wheat Market Potential Value Creation DEVELOPMENT PHASE / PROBABILITY OF SUCCESS • Global: 536M acres • Each 10% yield increase creates D 1 2 3 4 C ~$24 of added value per acre • Largest global crop 24-48
Slide 13: Resistant starch wheat product addresses nutrition and health needs
Resistant starch wheat product addresses nutrition and health needs Resistant Starch Wheat (non-GM) Market Potential Value Creation DEVELOPMENT PHASE / PROBABILITY OF SUCCESS • Global • Based on delivery of greater total D 1 2 3 4 C dietary fiber in wheat products 24-48 mo 12-24 mo 12-24 mo 12-
Slide 14: HB4 stress tolerant soybeans lead pipeline in regulatory and breeding advancements
HB4 stress tolerant soybeans lead pipeline in regulatory and breeding advancements Stress Tolerance – Soybeans Market Potential Value Creation DEVELOPMENT PHASE / PROBABILITY OF SUCCESS • Global: 272M acres • Each 10% yield increase creates D 1 2 3 4 C added value of ~$40 per acre • 4th largest glob
Slide 15: Trait opportunity for HB4 stress tolerant soybeans based on 25%-35% of South American acres
Trait opportunity for HB4 stress tolerant soybeans based on 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 • Submissions for production and import approva
Slide 16: HB4 stress tolerant soybeans lift grower revenue and significantly 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% Va
Slide 17: Regulatory approvals and commercial partnerships accelerate soybean pipeline
Regulatory approvals and commercial partnerships accelerate soybean pipeline Regulatory approvals Commercial partnerships Verdeca c ollaboration to advance breeding of Regulatory process completed for HB4 s tress stress tolerant s oybeans in S. America and to tolerant s oybeans in Argentina. Approva
Slide 18: Partners in multiple markets support diverse yield and quality soybean platform
Partners in multiple markets support diverse yield and quality soybean platform Phase Program Crop Collaborator(s) Key Markets D 1 2 3 4 5 PRODUCTIVITY TRAITS Drought / Stress tolerance (HB4) Soybeans TMG, GDM Seeds Americas, Asia Non-GM yield and Quality Soybeans TMG Global (multiple traits)* Yiel
Slide 19: Arcadia's collaborative framework accelerates advancements in top four global crops
Arcadia’s collaborative framework accelerates advancements in top four global crops Public Institutions Arcadia Licensees Phase Discovery Phase 1 Phase 2 Phase 3 Phase 4 Commercial Rice Wheat Corn Gene t argets Monocot Monocot Sugarcane Dicot Dicot Soybeans Safflower Cotton Sugarbeets Probability of
Slide 20: Recent Financials
®D Arcadia BIOS CIEN CE S&S Recent Financials
Slide 21: Key financial results
Key financial results First Quarter % Favorable/ 2016 2015 (Unfavorable) Total revenues 852 815 5% Cost of product revenues 147 56 (163%) R&D expense 2,202 1,832 (20%) SG&A expense 3,436 2,638 (30%) Loss from operations (4,933) (3,711) (33%) Net loss (5,190) (5,803) 11% Net loss attributable to comm
Slide 22: Revenue
Revenue First Quarter % Favorable/ 2016 2015 (Unfavorable) Product revenue 255 81 215% License revenue 152 158 (4%) Contract research and government grants 445 576 (23%) Total revenues 852 815 5% $ in thousands;; Unaudited First quarter revenue mix 2016 2015 comparison: n Product revenue n License
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