ImmuCell Corporation · NASDAQ:ICCC
ImmuCell — Investor Presentation (August 2018)
43 slides from ImmuCell's investor presentation, August 2018
Slide 1: ImmuCell Investor Presentation August 2018
ImmuCell developers of Nasdaq: ICCC Investor Presentation August 2018
Slide 2: Forward-Looking Statements
Forward-Looking Statements Cautionary Statement Regarding Forward-looking Statements (Safe Harbor Statement): This Presentation contains “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. Such statement
Slide 3: Table of Contents
Table of Contents Core Presentation: 1) Company Overview……………………………………………….……..…………….....4-6 2) First Defense®– Dairy and Beef Calves…………….…………….…………..……..7-15 3) Purified Nisin Treatment for Subclinical Mastitis – Dairy Cows….…...…………..16-24 4) In Conclusion …………………………………………………..………………..…………25 Supp
Slide 4: Company Overview
Company Overview • Founded: 1982, IPO: 1987, Secondary Offering: February 2016, Private Placement: October 2016, Direct Issuance: July 2017 and Underwritten Public Offering: December 2017 • ImmuCell Corporation (Nasdaq: ICCC) is an animal health company that is focused on improving animal health and
Slide 5: Three layers to the business
Three layers to the business Purified Nisin to treat subclinical mastitis with zero milk discard: • Market opportunity: Mastitis is estimated to cause approximately $2 billion in economic loss to the dairy industry each year(1) • Construction of approximately $21 million pharmaceutical production fa
Slide 6: Improve the Food Chain with Less Antibiotics
Improve the Food Chain with Less Antibiotics Focus: Solving the two most frustrating problems for dairy systems – scours and mastitis – in a way that reduces dependence on antibiotics. The demand for animal protein, that must be produced efficiently while ensuring food quality and safety, increases
Slide 7: First Defense – Dairy and Beef Calves
ImmuCell First Defense®– Dairy and Beef Calves
Slide 8: What is the First Defense Product Line?
What is the 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. • First Defense Technology® product line extensions provide the same antibodies in gel tube and bulk powd
Slide 9: What is Scours?
What is Scours? • Scours is the leading calf disease risk. The disease manifests as rampant, uncontrolled diarrhea in newborn calves. • Scours, diarrhea, or other digestive problems accounted for the majority of pre-weaned heifer deaths (56.5 percent).(1) It is primarily caused by: E. Coli, Coronavi
Slide 10: What is the Cost of Scours to the U.S. Dairy and Beef Industries?
What is the Cost of Scours to the U.S. Dairy and Beef Industries? Estimated annual scours-related costs to the dairy industry: ~$329 million(1) Estimated annual scours-related costs to the beef industry: ~$412 million(1) Total estimated annual scours-related costs to the calf industry: ~$741 million
Slide 11: Competitive Product Comparison (Calf-Level)
Competitive Product Comparison (Calf-Level) USDA Claims Product Mode-of-Action E. coli Corona Rota The First Defense® Two-part: delivers bovine antibodies to the gut that are product line absorbed into the bloodstream (ImmuCell) Forces calf to mount an immune response to a modified-live Calf-Guard®
Slide 12: Calf-Level Market Share
Calf-Level Market Share 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 Volume 2017 Market Share Dollars 33% First Defense 44% 67% Direct 56% Competition Market Estimates Provided by Axxiom Consu
Slide 13: Tri-Shield First Defense
New Product to Compete at Dam (mother cow) Level Tri-Shield™ First Defense® • USDA approval achieved during 4Q 2017 • With addition of rotavirus claim, we provide a unique breadth of protection against three leading pathogens • Improved competitive position against calf-level products • Now able to
Slide 14: Be a Calf Hero
Be a Calf Hero (Nasdaq: ICCC) 14
Slide 15: Sales Strategy to Increase Market Share in a Growing Market
Sales Strategy to Increase Market Share in a Growing Market • We now support our distributors with six regional sales managers and one inside sales and marketing employee, reporting to our vice president of sales and marketing. • Growing sales force communicating the First Defense® value-proposition
Slide 16: Purified Nisin Treatment for Subclinical Mastitis
ImmuCell Purified Nisin Treatment for Subclinical Mastitis
Slide 17: Mastitis: Leading Cause of Economic Harm to the Dairy Industry
Mastitis: Leading Cause of Economic Harm to the Dairy Industry $2 Billion(1) • Mastitis – 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) • Antibiotic treatments are available on the market, but milk from
Slide 18: Nisin: Novel Alternative to Traditional Antibiotics
Nisin: Novel Alternative to Traditional Antibiotics Value Proposition • Zero milk discard and zero meat withhold (in • Nisin-based intramammary treatment for subclinical the United States) (infected, but still producing saleable milk) mastitis in • Higher quality of milk by having lower lactating co
Slide 19: 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 20: Cost of Dumped Milk Associated with All Traditional Antibiotics
Cost of “Dumped” Milk Associated with All Traditional Antibiotics Range in costs per cow associated with milk discard for products with clinical mastitis disease claims Treatment Discard Average Cost of Brand Name Company Total Dump Days Days (1) Days (1) Dumped Milk(2) Dariclox Merck 1.5 2 3.5 $ 40
Slide 21: Product Label Claims
Product Label Claims • The mastitis market today is dominated by Zoetis, Merck and Boehringer Ingelheim. All of these traditional antibiotics are sold subject to milk discard and meat withhold requirements. • We have met our development objective of establishing disease claims that are similar to th
Slide 22: Pharmaceutical-grade Nisin Facility
Pharmaceutical-grade Nisin Facility • Construction of a Nisin pilot plant in our 56 Evergreen Drive (Portland, ME) facility was completed during 3Q 2014. This pilot plant allowed us to: 1) expand our process knowledge and controls; 2) establish operating ranges for critical process parameters; 3) op
Slide 23: Status of NADA Technical Sections
Status of NADA Technical Sections Development Item Date Completed Environmental Impact Technical Section Complete Letter from the FDA 3Q 2008 Target Animal Safety (TAS) Technical Section Complete Letter from the FDA 2Q 2012 Effectiveness Technical Section Complete Letter from the FDA 3Q 2012 Human F
Slide 24: Timeline to FDA Approval
Timeline to FDA Approval 1Q 2016 Secured initial financing Initiated design and permitting for commercial-scale Nisin facility 3Q 2016 Secured additional financing Initiated construction of building shell for Nisin facility 3Q 2017 Secured additional financing 4Q 2017 Certificate of Occupancy issued
Slide 25: In Conclusion
In Conclusion…. • Solve the two most frustrating problems for dairy systems – scours and mastitis – with less antibiotics • Estimates predict that we will need to feed 10 billion people in the year 2050(1) • Dairy and beef products are important sources of critical protein • We need to reduce the us
Slide 26: Financial Review
ImmuCell Financial Review
Slide 27: Investment Highlights
Investment Highlights As of June 30, 2018: As of August 8, 2018: • Cash: $2.5M • Stock price: $6.64 • $0.46 per share • Net Working Capital: $4.5M • 52-week range: $5.26-$9.25 • $0.81 per share • Shares Outstanding: 5.5M • Total Stockholders’ Equity: $22.8M • $4.16 per share • Market capitalization:
Slide 28: Annual Total Sales Growth
Annual Total Sales Growth $12.0 Total Product Sales $11.0 $10.2 $10.4 $10.0 $9.5 $ in Millions $8.0 $7.6 $6.0 $6.0 $5.4 $5.1 $4.0 $2.0 $0.0 Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended 12 Months 12/31/11 12/31/12 12/31/13 12/31/14 12/31/15 12/31/16 12/31/17 Ended 6/30
Slide 29: First Defense Sales Growth
First Defense® Sales Growth % Growth in Sales of the First Defense® Product Line Compared to the Same Quarters of the Previous Years 80% 60% 1Q 40% 2Q 3Q 20% 4Q 0% FY YTD -20% -40% 2010 vs 2009 2011 vs 2010 2012 vs 2011 2013 vs 2012 2014 vs 2013 2015 vs 2014 2016 vs 2015 2017 vs 2016 2018 vs 2017 (N
Slide 30: Net (Loss) Income
Net (Loss) Income Year ended December 31, 2012 2013 2014 2015 2016 2017 Six Months $1,400,000 $1,213,239 EPS = $0.38 Ended 06/30/18 $1,200,000 $1,000,000 $800,000 $508,448 EPS = $0.12 $600,000 $400,000 $117,395 $89,512 EPS = $0.04 $200,000 EFP = $0.03 $0 ($200,000) ($167,159) ($400,000) LPS = $0.06
Slide 31: Capital Expenditures
Capital Expenditures Our capital expenditures from January 1, 2014 through December 31, 2017 have been larger than our historical norm due to investments to increase our production capacity for the First Defense®product line and to construct and equip our Nisin production facility, as detailed in th
Slide 32: 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 33: Appendix
ImmuCell Appendix
Slide 34: Economics of Dairy Industry
Economics of Dairy Industry • The value of a dairy bull calf increased from near zero to $300 to $400, and more recently decreased back to almost no value • We saw an improved milk price during 2014, but this positive trend did not continue during 2015 or 2016. The price for 2017 was 9% higher than
Slide 35: Sales and Marketing Territories
Your Calf CrewR Sales and Marketing Territories Dale Miller Sales & Marketing Manager Northeast US and Canada Region Jill Sprakel Chris Bradley Sales & Marketing Manager Ellen Cushing Sales and Marketing Manager Midwestern Region Sales & Marketing Manager Canada Western Region Upper Midwestern Regio
Slide 36: Scours: Cost to the U.S. Dairy and Beef Industries
Scours: Cost to the U.S. Dairy and Beef Industries Dairy Beef Scours Related Cost to Dairy Industry Calf Deaths $119 million – Calf Deaths Calf Deaths $45 million – Scours Treatments Deaths prior to weaning 6.4% Deaths prior to weaning 7.8% % of above deaths from scours 14.2% $90 million – Reduced W
Slide 37: Customer Testimonials
Customer Testimonials “First Defense® is like an insurance policy that pays for itself in spades. Say you cut your death loss from, conservatively, 8 to 2 percent. If you have 300 calves a month, that’s 12 more calves a month or 144 calves a year more that you are able to raise. That fuels the growt
Slide 38: Other Mastitis-Related Marketed Product
Other Mastitis-Related Marketed Product • California Mastitis Test (CMT) – CMT is a rapid cow-side test for early detection of mastitis, and for years has been a trusted tool of dairy producers. ImmuCell’s CMT offers the same ease-of-use and accuracy as other brands, but at a lower cost per test. –
Slide 39: 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 days in
Slide 40: Cattle Market Overview
Cattle Market Overview • ImmuCell’s products are currently focused on the North American dairy and beef cattle markets, although significant market opportunities exist in other international territories. Number of Dairy & Beef Cows (in thousands) Dairy Beef Total Markets currently served: United Sta
Slide 41: Animal Health Industry
Animal Health Industry Animal Health Companies Animal Health Companies (cont.) Diagnostics and Services Companies Aratana Therapeutics (PETX) Virbac AH (VIRP) Abaxis (ABAX) Bayer AH (BAYRY) Zivo Bioscience (ZIVO)(3) Advanced Animal Diagnostics (Private) Boehringer Ingelheim AH (Private) Zoetis (ZTS)
Slide 42: Company Leadership
Company Leadership Executive Management Team • John W. Zinckgraf, Ph.D. - Director of Product Development • Michael F. Brigham - Joined Company in 2009 – President and CEO - University of Connecticut Board of Directors – Officer since 1991 – Appointed CEO in 2000 • Michael F. Brigham – President and
Slide 43: Contact Information
Contact Information Investor Relations ImmuCell Corporation Lytham Partners, LLC Nasdaq: ICCC ICCC@lythampartners.com Michael Brigham Robert Blum President and CEO Joseph Diaz Joe Dorame Adam Lowensteiner (NY) 56 Evergreen Drive Portland, ME 04103 (602) 889-9700 – Phoenix (207) 878-2770 (646) 829-97