Lifecore Biomedical, Inc. · NASDAQ:LFCR
Lifecore Biomedical — Investor Presentation (April 2024)
29 slides from Lifecore Biomedical's investor presentation, Apr 1, 2024
Slide 1: April 2024 Investor Presentation
April 2024 Investor Presentation
Slide 2: Forward-looking statements
2 This presentation contains forward-looking statements regarding future events and the future results of Lifecore Biomedical, Inc. ("we, "us" or the "Company") that are subject to the safe harbor created under the Private Securities Litigation Reform Act of 1995 and other safe harbors under the Sec
Slide 3: Disclaimers and Important Information
3 Disclaimers and Important Information Fiscal Year 2024 Estimates: This presentation contains preliminary estimates of certain consolidated financial data of Lifecore as of and for the fiscal quarters ended August 27, 2023, November 26, 2023, and February 24, 2024, and the nine months ended Februar
Slide 4: Lifecore Business Highlights
4 Lifecore Business Highlights Large, growing addressable markets with attractive underlying tailwinds supported by long-term customer relationships and low turnover 40+ years of exceptional quality, safety, and regulatory compliance with available capacity & state-of-the-art facilities to support f
Slide 5: Lifecore Biomedical revenue streams
5 74% 26% HA Raw Material Revenue Streams FY23 Total Revenues: $103.3M Lifecore Biomedical To provide high-quality, innovative product development and manufacturing solutions for our partners, guided by our unwavering commitment to improving people’s lives. Continuing to invest in capabilities in th
Slide 6: Growth Strategies
6 Growth Strategies 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. •
Slide 7: Progress Made Possible
7 Progress Made Possible Leveraging over 40 years of experience to bring our 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 Asep
Slide 8: State-Of-The-Art Manufacturing Capabilities
8 State-Of-The-Art Manufacturing Capabilities Four barrier fillers in ISO 5 clean rooms One 5-head isolator filler in ISO 7 clean room One 10-head isolator filler1 Supported by five ISO 7 formulation rooms Capital expenditures2 of approximately $129M during the past 10 years and $57M over the last 3
Slide 9: Isolator Technology Driving Future Potential Capacity
9 Isolator Technology Driving Future Potential Capacity 5-Head1 and 10-Head2, High-Speed Groninger Fillers • Full isolator technology, state-of-the- art containment • Flexibility of vial, syringe, and cartridge filling capabilities • Flexibility of dual filling mechanisms (rotary piston and peristal
Slide 10: Campus Overview
10 Campus Overview Facility Site 1 (Headquarters) 3515 Lyman Blvd Chaska, MN 55318 150,000 Sq. Ft. Site 2 (Lakeview Drive) 245 Lakeview Dr Chaska MN 55318 78,000 Sq. Ft. Site 3 (Shelby Court) 8700 Shelby Court, Suite 400 Chanhassen, MN 55317 20,000 Sq. Ft. • Operations − Over 30 unique capabilities
Slide 11: Extensive Regulatory Systems & Excellent Quality Record
11 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. 40+ years of a strong track record with global regulatory bodie
Slide 12: Highly Differentiated End-To-End Capabilities
12 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,
Slide 13: Trusted Producer of Premium Pharmaceutical, Injectable-Grade Hyaluronic Acid
13 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 inj
Slide 14: Injectable Products Lead Growth in Drug Development Market
14 Injectable Products Lead Growth in Drug Development Market Specialty Solid Semisolid & Liquid Injectable $6.02 Billion Injectables are expected to grow at 10.5% CAGR from 2020-2025* • Equipment differentiated & unique • High-value molecules • Technical expertise required Approximate CDMO market s
Slide 15: Lifecore is in a strong position to accelerate growth
15 Lifecore is in a strong position to accelerate growth Favorable Anticipated Trends Fuel Long-Term CDMO Demand & Value for Lifecore High propensity to outsource injectable manufacturing 1 (Pre-Clinical; Phase 1-3) 2008 – 2019 - William Blair, Pharmaceutical Outsourcing & Service Report. April 2020
Slide 16: Broadening Our Blue-Chip Customer Base
16 Broadening Our Blue-Chip Customer Base 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 solutions and infrastruct
Slide 17: Managing Our Current Development Portfolio
17 Managing Our Current Development Portfolio (as of F3Q24) 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; as of fiscal t
Slide 18: Our Existing Development Project Breakdown
18 Our Existing Development Project Breakdown (as of F3Q24) * Anticipated remaining time to commercialization may be impacted by but not limited to such factors as regulatory timing, FDA approvals, contract negotiations, and capacity limitations. Proof of Concept Development Development Scale-up Num
Slide 19: Diversity of Pipeline Opportunities
19 7 utilize HA 56 would be classified as drugs 29 are large pharma/ med device companies 12 would be classified as medical devices Diversity of Pipeline Opportunities 68 Additional Pipeline Opportunities Currently in Discussion1 1 As of fiscal third quarter 2024
Slide 20: Long History of Stable, Sustainable Growth in Revenues & Adjusted EBITDA
20 Revenues ($ in millions) Adjusted EBITDA6 Long History of Stable, Sustainable Growth in Commercial Revenues & Adjusted EBITDA1 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 $109.3 $103.3 FY15 FY16 FY17 FY18 FY1
Slide 21: Recent Fiscal 2024 Financial Estimates
21 $24.5 $30.2 $35.8 $103.3 1Q24 E 2Q24 E 3Q24 E 4Q24 E FY23 FY24 E $15.0 $7.2 FY23 FY24 E FY23 FY24 E Revenues ($ in millions) Recent Fiscal 2024 Financial Estimates: Year-to-date and FY24 Outlook1 Adjusted EBITDA ($ in millions) 1 Fiscal years ended May 28, 2023, and May 26, 2024 2 FY24 guidance 3
Slide 22: Capacity Targeted to Increase by 3x
22 Capacity Targeted to Increase by 3x, Creating Long Runway for Growth 0 10 20 30 40 50 60 70 80 FY23 FY27 Illustrative Theoretical Capacity Growth: Multi-year Opportunity to Drive Capacity Utilization Th eo re ti ca l C ap ac it y (M ill io n s o f u n it s) 2. Current capacity of 22 million units
Slide 23: Our FY24 Outlook
23 Our FY24 Outlook1 Lifecore Guidance: FY24 $125mm - $130mm $13.5mm - $16.9mm Considerations 2. Expansion of the development project pipeline with early and later stage projects 3. Recovery of margin following product mix associated with new commercial shipments and legacy contract renegotiations;
Slide 24: Meet the Lifecore Team
24 Meet the Lifecore Team Highly Experienced Management Team with Deep Industry Expertise & Proven Ability to Execute Jim Hall John Morberg Jackie Klecker Darren Hieber Matt Augustson Rick Sitarz Kipling Thacker, PhD Scott Collins Phil Sticha Steve Laninga Position Pres. & CEO CFO and EVP EVP and Ge
Slide 25: Paul Josephs appointed as CEO
25 • Paul Josephs appointed as CEO – to succeed current CEO Jim Hall following his retirement • Mr. Josephs to start on May 20, 2024, and replace Mr. Hall on Board of Directors • Paul Josephs brings over 30 years of pharmaceutical industry experience to Lifecore, including over 25 years of CDMO expe
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Slide 27: FY23 Form 10-K Restatement Summary
27 FY23 Form 10-K Restatement Summary The FY23 Annual Report on Form 10-K filing contains the restatement of previously issued consolidated financial statements as of and for the fiscal years ended May 29, 2022 (“FY22”) and May 30, 2021 (“FY21”) included in the Company’s Annual Report on Form 10-K/A
Slide 28: Lifecore Segment Restated Financials
28 Lifecore Segment Restated Financials Nine Months Ended Quarter Ended Year Ended ($ in thousands) May 30, 2021 May 29, 2022 August 28, 2022 November 27, 2022 February 26, 2023 February 26, 2023 May 28, 2023 (5) May 28, 2023 (5) Period Ended As Reported (1) Net sales 98,087$ 109,320$ 23,703$ 21,691
Slide 29: Lifecore Segment Reconciliation: Net Income to Adjusted EBITDA
29 Lifecore Segment Reconciliation: Net Income (Loss) from Continuing Operations to Adjusted EBITDA Nine Months Ended Quarter Ended Year Ended ($ in thousands) May 30, 2021 May 29, 2022 August 28, 2022 November 27, 2022 February 26, 2023 February 26, 2023 May 28, 2023 (5) May 28, 2023 (5) Period End
Lifecore Biomedical, Inc. \de\ — Investor Presentation (April 2024) on 6ix