Lifecore Biomedical, Inc. · NASDAQ:LFCR
Lifecore Biomedical — Investor Day (November 2024)
39 slides from Lifecore Biomedical's investor day presentation, Nov 21, 2024
Slide 1: A New Era: Building Momentum for Sustainable Growth - Investor Day
A New Era: Building Momentum for Sustainable Growth Investor Day November 21, 2024
Slide 2: Important Information Regarding Forward-Looking Statements
2 Important Information Regarding Forward-Looking Statements This presentation includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements, among other things, relate to the Company’s gro
Slide 3: Non-GAAP Financial Measures
3 Non-GAAP Financial Measures This presentation contains non-GAAP financial information including Adjusted EBITDA. The Company has included a reconciliation of Adjusted EBITDA to Net (loss) income, the most directly comparable financial measure calculated in accordance with GAAP. We define Adjusted
Slide 4: Investor Day Key Takeaways
4 Investor Day Key Takeaways CDMO industry leader in complex injectables with broad capabilities that support large and growing markets Actionable strategy to drive strong growth of a 12%+ revenue CAGR and adj. EBITDA margins of 25%+ in mid-term A proven and experienced team dedicated to execution a
Slide 5: Today's Agenda
5 Today’s Agenda 1 About Lifecore - Our Journey 2 Market Overview 3 Growing Our Business 4 Sustaining Objectives 5 Question & Answer
Slide 6: Today's Agenda
6 Today’s Agenda 1 About Lifecore - Our Journey Market Overview Growing Our Business Sustaining Objectives Question & Answer
Slide 7: Our Journey: Transformation to Standalone CDMO (Then)
7 Our Journey: Transformation to Standalone CDMO Low-Margin Commodity Agricultural Businesses THEN:
Slide 8: Our Journey: Transformation to Standalone CDMO (Now)
8 Our Journey: Transformation to Standalone CDMO NOW: Best-in-class technical capabilities Strengthened financial position Doubled revenue-generating capacity Leadership transition complete Nasdaq / regulatory compliance Enhanced business development resources & strategy
Slide 9: Experienced Management Team with Proven Ability to Execute
9 Experienced Management Team with Proven Ability to Execute Paul Josephs President & Chief Executive Officer Ryan Lake Chief Financial Officer Thomas Guldager VP of Operations Jackie Klecker EVP Quality and Development Services Darren Hieber SVP of Corporate Development & Partnerships Brikkelle Tho
Slide 10: Lifecore at a Glance
10 Lifecore at a Glance 450 Employees Inclusive, Performance- Driven Culture Fully integrated CDMO offering development and fill/finish of sterile injectable pharmaceuticals Projected Revenues* (FY2025E) $126.5M - $130M Projected Adj. EBITDA* (FY2025E) $19M - $21M Leader in Sodium Hyaluronate (HA) G
Slide 11: Campus Overview
11 Campus Overview Site 1 – HQ (Lyman Blvd.) 150,000 sqft Site 2 (Lakeview Drive) 78,000 sqft Site 3 (Shelby Court) 20,000 sqft Manufacturing Operations • Sodium hyaluronate manufacturing (fermentation) • Drug and medical device formulation and filling • Secondary packaging • Microbiology and analyt
Slide 12: Our Mission
12 As a trusted partner to our customers and the patients they serve, we are dedicated to improving healthcare outcomes through the highest standards of quality and service. We provide innovative, value-added solutions for sterile development and manufacturing, driven by our talented team. Our Missi
Slide 13: Our Commitment
13 Our Commitment Shareholders Deliver a strong financial track record and generate sustainable value over time Customers Be a value-added partner that provides the “hands” and the “brain” and delivers high- quality solutions to our customers development and manufacturing needs Employees Be a fantas
Slide 14: Today's Agenda
14 Today’s Agenda About Lifecore - Our Journey 2 Market Overview Growing Our Business Sustaining Objectives Question & Answer
Slide 15: We Serve Large and Growing Markets with Strong Tailwinds
15 We Serve Large and Growing Markets with Strong Tailwinds Global Injectable CDMO $10B Market1 +10% CAGR Biosecure Act Hyaluronic Acid $9.8B Market2 +7% CAGR Global CDMO $120B Market1 +8% CAGR 50%+ of annual US drug approvals are injectables4 GLP-1 $47B Market3 Expected to Increase 10X 1. Jefferies
Slide 16: Today's Agenda
16 Today’s Agenda 1 About Lifecore - Our Journey 2 Market Overview 3 Growing Our Business 4 Sustaining Objectives 5 Question & Answer
Slide 17: Executing Three-Pronged Growth Strategy
Executing Three-Pronged Growth Strategy Maximizing Existing Customer Business Advancing Programs Towards Commercialization Driving New Business 17
Slide 18: Mid-Term and Long-Term Revenue Outlook
18 FOCUSED ON MAXIMIZING UTILIZATION OF AVAILABLE CAPACITY Mid-Term and Long-Term Revenue Outlook $126.5-$130M $178M-$205M $300M1 Expansion of existing commercial contracts Portfolio Commercialization New Business Revenue growth driven by maximization of existing customer base, portfolio commerciali
Slide 19: Expanding Existing Customer Relationships
19 Expanding Existing Customer Relationships Know our customers Establish trust and reliability Establish Lifecore as a partner-of- choice for the future CDMO needs of existing customers Anticipate customers’ growing needs Efficient onboarding of new programs Consistent engagement Focus on commercia
Slide 20: Fill & Finish: Pathway to Doubling Commercial Demand
20 Fill & Finish: Pathway to Doubling Commercial Demand • Significant inflection point expected from minimum volumes beginning in 2027 • Potential upside to contractual minimums For illustrative purposes only, timing, estimates, assumptions and the actual capacity utilization may vary significantly,
Slide 21: HA Fermentation: Strong & Steady Demand
21 HA Fermentation: Strong & Steady Demand LIFECORE’S PREMIUM SODIUM HYALURONATE: doses sold worldwide 150 million1 • Ophthalmology • Orthopedics • Drug delivery • Biomaterials • Aesthetics • Oncology • Pain management Proven Applications Worldwide: M A X I M I Z I N G E X I S T I N G C U S T O M E
Slide 22: Strong, Diverse Pipeline
22 Strong, Diverse Pipeline • Impactful commercial revenue potential over the mid-term • Strong development project pipeline: vials, syringes, cartridges • Diversification across broad customer base Total Pipeline Represents $100M - $200M1 in Incremental Commercial Revenue Potential 1. Assumes full
Slide 23: Late-Stage Development Portfolio: Impactful Revenue Potential
23 Late-Stage Development Portfolio: Impactful Revenue Potential1 Customer Product Type 2025 2026 2027 2028 Specialty Pharma Med Device Large Pharma Med Device Specialty Pharma NDA* Specialty Pharma Med Device Specialty Pharma NDA Specialty Pharma NDA Specialty Pharma Med Device Specialty Pharma Med
Slide 24: Attracting New High-Value Business
24 Attracting New High-Value Business Installation of 5-head filler Strategically expand target market Expanding business development & brand awareness D R I V I N G N E W B U S I N E S S
Slide 25: Strategically Expand Target Markets
25 LO W CO ST – CO M M O DI TY GE NE RI CS HIGH POTENT – CYTO TO XIC /HORM ONES Strategically Expand Target Markets • Expanding beyond high-viscosity legacy • Attractive therapeutic areas • NCEs in Phase 2, Phase 3 • Unique, injectable delivery systems • Ophthalmic and orthopedic medical devices • C
Slide 26: Expanded Targets Lead to Growing Pipeline
26 Expanded Targets Lead to Growing Pipeline • Strong, diverse and growing universe of 50+ potential future business opportunities1 • Mix of both large and specialty pharma • Subset of opportunities are HA-related, representing a broadening of our pipeline • Significant number of late-stage developm
Slide 27: New Technology Opens Door to New Business
27 New Technology Opens Door to New Business State-of-the-Art, 5-Head Isolator Filler • Full isolator technology, state-of-the-art containment • Significantly expanded available capacity • Broad capability: vials, syringes & cartridges • Strengthens compliance Approximately 100% increase in annual p
Slide 28: Expanding Business Development & Brand Awareness
28 Expanding Business Development & Brand Awareness • Team approach to business development • Adding proven talent • Expanded visibility at industry events • Enhanced marketing strategy: SEO, content, social media Customer / Prospects Executive Level CEO, President, VP Department Leaders Supply Chai
Slide 29: Today's Agenda
29 Today’s Agenda About Lifecore - Our Journey Market Overview Growing Our Business 4 Sustaining Objectives Question & Answer
Slide 30: Sustaining Objectives Support Value Creation
Sustaining Objectives Support Value Creation 30 Commitment to Quality Reduced Operational Expenses Performance-Driven Culture
Slide 31: Reduced Operational Expenses
31 Reduced Operational Expenses Working to drive operational efficiency and make OpEx a progressively smaller percentage of revenue: • Cost-conscious practices • Optimize key processes • Eliminate low-value activities • Leverage technology • Culture of continuous improvement Continuous Improvement L
Slide 32: Efficiency and Revenue Growth Drive Margin Improvement
32 ~15% 25%+ 2025 Mid-Term Adj. EBITDA Margin Adj. EBITDA Margin Reduction in operating expenses Expansion of existing commercial contracts Portfolio commercialization New business Operating leverage Efficiency and Revenue Growth Drive Margin Improvement For illustrative purposes only, timing, estim
Slide 33: Performance-Driven Culture
33 Performance-Driven Culture Performance Driven Metrics / KPI driven Linked to strategic goals Incentivize and Recognize Aligned with shareholder value enhancement Talent Management Define “A” players Local / National recruitment Manage, Monitor and Adjust Consistent review and evaluation of talent
Slide 34: Commitment to Quality
34 Commitment to Quality Lifecore provides the highest quality pharmaceutical products and services to our customers and their patients. Effective and comprehensive Quality Management SystemEffective Strong partnerships built on trust, transparency, and collaborationPartner Embracing innovation in o
Slide 35: 40+ Years of Strong Track Record with Global Regulatory Bodies
35 40+ Years of Strong Track Record with Global Regulatory Bodies World-class quality system Ability to support multiple geographies
Slide 36: Investor Day Key Takeaways
36 Investor Day Key Takeaways CDMO industry leader in complex injectables with broad capabilities that support large and growing markets Actionable strategy to drive strong growth of a 12%+ revenue CAGR and adj. EBITDA margins of 25%+ in mid-term A proven and experienced team dedicated to execution
Slide 37: Reconciliation of Non-GAAP Financial Measures
37 Reconciliation of Non-GAAP Financial Measures To supplement the company’s financial results determined by U.S. generally accepted accounting principles (“GAAP”), the company has disclosed in the table below the following non-GAAP information about Adjusted EBITDA. 1 Adjusted EBITDA is net (loss)
Slide 38: Today's Agenda
38 Today’s Agenda About Lifecore - Our Journey Market Overview Growing Our Business Sustaining Objectives 5 Question & Answer
Slide 39: A New Era: Building Momentum for Sustainable Growth - Investor Day Questions
A New Era: Building Momentum for Sustainable Growth Investor Day Questions November 21, 2024
Lifecore Biomedical, Inc. \de\ — Investor Day (November 2024) on 6ix