ImmuCell Corporation · NASDAQ:ICCC
ImmuCell — Investor Presentation (May 2020)
51 slides from ImmuCell's investor presentation, May 2020
Slide 1: ImmuCell Corporation Investor Presentation
ImmuCell Corporation Investor Presentation May 2020 (Nasdaq: ICCC)
Slide 2: Forward-Looking Statements
Forward-Looking Statements Cautionary Note 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 statements inc
Slide 3: Table of Contents
Table of Contents 1) Company Overview and Strategic Opportunity..…….……..…………………………………………………….….….....4-24 2) Testimonials………………………………………………………………….……..…….…………………………………….……….…25-29 3) Financial Review(1).………………..….……..……………………………..……………………………………………..…..........30-36 4) Other Information..……………...……….
Slide 4: Company Overview and Strategic Opportunity
Section #1: Company Overview and Strategic Opportunity • ImmuCell Corporation (Nasdaq: ICCC) is an animal health company focused on: • Delivering Immediate Immunity™ to newborn dairy and beef calves to improve herd productivity, while avoiding unnecessary dam vaccine injections, via the Company’s le
Slide 5: What Role Does ImmuCell Play?
What Role Does ImmuCell Play? • Focus on solving the two most frustrating problems for dairy systems – scours and mastitis – in a way that reduces dependence on antibiotics. • Improve the food chain with less antibiotics(1). • Cows are more productive if we reduce the use of certain non-essential va
Slide 6: Our Product Lines
Our Product Lines First Defense® Re-Tain™ Dual-Force® (Subject to FDA review and approval) Our First Defense® product line with E. coli and coronavirus claims Our purified Nisin treatment for subclinical mastitis in lactating cows • U.S. market opportunity: About $18 million in annual sales of calf-
Slide 7: Expansion of First Defense production capacity
Expansion of First Defense® production capacity 7
Slide 8: Three Most Critical Action Items
Three Most Critical Action Items 1 2 3 Significantly Achieve FDA Prove market grow sales of the approval of Re-Tain™ acceptance of Re- First Defense® Tain™ with current product line $10 million worth of annual production capacity 8
Slide 9: Got Milk? Undeniably Dairy
4 Got Milk? Undeniably Dairy Coconut Juice Almond Juice Hemp Juice Oat Juice Soy Juice Milk Protein Content:(1) 0 grams 1 gram 3 grams 4 grams 6 or 7 grams 8 grams Carbohydrate Content:(1) 10 grams(2) 16 grams(2) 24 grams(2) 24-25 grams 10 grams(2) 12-13 grams(3) Cost Per Cup:(4) $0.50 $0.50-$0.63 $
Slide 10: Enjoy a hot chocolate. Support the Dairy Industry
4 Enjoy a hot chocolate. Support the Dairy Industry 10
Slide 11: Eat more pizza
4 Eat more pizza 11
Slide 12: What do Producers do to Prevent Scours?
What do Producers do to Prevent Scours? 1 2 3 Action: Nothing Treat the calf Vaccinate the mother cow Estimated $0(1) Product ̴$18 million ̴$36 million Sales: ScourGuard by Zoetis Product N/A See slide # 14 Guardian by Merck Options: Scour Bos by Elanco (1) This figures does not include the cost of
Slide 13: Calf-Level Competitive Product Comparison
Calf-Level Competitive Product Comparison USDA Claims Product Mode-of Action E. coli Corona Rota The First Defense® Two-part: delivers bovine antibodies to the gut that are absorbed product line into the bloodstream (ImmuCell) Calf-Guard® Forces calf to mount an immune response to a modified-live vi
Slide 14: Calf-Level U.S. Market Share (in volume)
Calf-Level U.S. Market Share (in volume) 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 Year Ended Year Ended Year Ended December 31, 2017 December 31, 2018 December 31, 2019 32% 34% 66% 36% 68%
Slide 15: Waste Less, Get More
Waste Less, Get More DAM-LEVEL SCOUR VACCINE APPROX. 56% OF FUNDS SPENT GO TO 100% of FUNDS SPENT GO INTO -BULL CALVES 44% OF SPEND LIVEBORN - -DOA/ABORTS HITS TARGET VALUED -LIMITED VACCINE CALVES RESPONSE 15
Slide 16: Calf-Level and Dam-Level U.S. Market Share
Calf-Level and Dam-Level U.S. Market Share (in volume)(1) Huge market opportunity as we go Beyond Vaccination® and compete more effectively against vaccines that are given to mother cows Mwiani Year Ended Year Ended Year Ended December 31, 2017 December 31, 2018 December 31, 2019 9.7% 10.3% 11% 90.3
Slide 17: 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 five regional sales managers and one director of marketing, reporting to our vice president of sales and marketing (with two open positions that may be filled by independent contractors). • Expanded sa
Slide 18: Be a Calf Hero
Be a Calf Hero. (Clo aa RCI NATIONN VACCINATION 18
Slide 19: Mastitis: Leading Cause of Economic Harm to the Dairy Industry
Mastitis: Leading Cause of Economic Harm to the Dairy Industry $2 Billion(1) • Mastitis is 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) • Traditional antibiotic treatments are available on the market,
Slide 20: 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 21: Re-Tain: Novel Alternative to Traditional Antibiotics
Re-Tain™: Novel Alternative to Traditional Antibiotics Novel Alternative Value Proposition • “Game changer”: could make treatment of subclinical • Zero milk discard and zero meat withhold (in the U.S.) mastitis (infected, but still producing saleable milk) economically feasible • Higher quality of m
Slide 22: Review of Competitive Product Claims
Review of Competitive Product Claims Effective Against Active Label Claims Brand (Mfg) Strep. Staph. Strep. Strep. Ingredient CNS E. coli agal. aureus dysgal. uberis Subclinical Clinical Re-Tain™ (1) (1) Nisin A (ImmuCell) Spectramast LC Ceftiofur Clinical Only (Zoetis) Amoxi-Mast Amoxicillin (Merck
Slide 23: Cost of Dumped Milk Associated with Traditional Antibiotics
Cost of “Dumped” Milk Associated with Traditional Antibiotics Used to Treat Subclinical Mastitis Range in costs per cow associated with milk discard for products with subclinical mastitis disease claims Treatment Discard Total Dump Average Cost of Brand Name Company Days(1) Days(1) Days Dumped Milk(
Slide 24: Status of NADA for Re-Tain
Status of NADA for Re-Tain™ We have completed 4 out of 5 NADA Technical Sections required for FDA approval Development Item Date Completed 1. Environmental Impact Technical Section Complete Letter from the FDA 3Q 2008 2. Target Animal Safety (TAS) Technical Section Complete Letter from the FDA 2Q 20
Slide 25: Section #2: Testimonials
Section #2: Testimonials 25
Slide 26: Customer Testimonials
Customer Testimonials “ First Defense® is like an insurance policy that pays for itself in spades. Say “ About seven years ago, we were having a serious problem with rotavirus and “ Approximately 10 years ago we had a minor flare-up of scours in our herd. Treating “ We began using First Defense® dur
Slide 27: Customer Testimonials
Customer Testimonials “ “ “ “ “ Tri-Shield is the most Diagnostics have shown Over the years we We have been using Our day-one protocols are reliable way for us to Rotavirus has been the Layered in 3 different Tri-Shieldfor 2 years Consistent and calf prevent calf scours and Cause of calf deaths in
Slide 28: Customer Testimonials
Customer Testimonials “ “ “ “ “ We’ve had a legacy of Tri-Shield is much easier to We had lots of issues with Out pasteurized colostrum Tri-Shield is a highly effective rotavirus here. We couldn’t apply than a dam-level our calves before Tri-Shield. program is highly monitored. and easy to deliver,
Slide 29: Customer Testimonials: Research Proven
Customer Testimonials …we went from 40% scour down to 15% RESEARCH PROVEN …simple to administer and produces results …a huge return “The first two weeks of life are very important “Prior to adding First Defense® to our regimen, our calves would always run into problems with salmonella “We have been
Slide 30: Section #3: Financial Review
Section #3: Financial Review 30
Slide 31: Total Product Sales
Total Product Sales $16.0 13.1% $13.7 $14.0 CAGR $12.0 (2011-2019) $11.0 12.6% $10.0 $10.2 $9.5 $10.4 CAGR (2014-2019) $ in millions 12.9% $8.0 $7.6 $6.0 $5.1 $5.4 $6.0 CAGR (2016-2019) $4.0 14.7% $2.0 CAGR (2017-2019) $0.0 2011 2012 2013 2014 2015 2016 2017 2018 2019 31
Slide 32: Financial Results
Financial Results During the Years Ended December 31, 2019 2018 Product Sales $13,723,000 $10,986,000 Loss Before Income Taxes ($1,267,000) ($1,860,000) Net Loss ($1,296,000) ($2,322,000) Net Loss Per Share ($0.19) ($0.42) During the Three-Month Periods Ended March 31, 2020 2019 Product Sales $4,910
Slide 33: Non-GAAP Measures
Non-GAAP Measures During the Years Ended December 31, (in thousands) 2016 2017 2018 2019 Income (loss) before income taxes(1) $758 ($438) ($1,860) ($1,267) Depreciation, amortization and stock-based compensation 878 1,119 1,882 2,597 Income before income taxes(1) and certain non-cash expenses(2) $1,
Slide 34: Income Statement
Income Statement ($ in millions, except percentages and per share amounts) 2016 2017 2018 2019 Product Sales $9.5 $10.4 $11.0 $13.7 Gross Margin $5.4 $5.2 $5.2 $6.7 Gross Margin % 57% 50% 47% 49% Operating Income (Loss) $0.9 ($0.2) ($1.4)(1) ($1.0) Net Income (Loss) $0.5 ($0.2) ($2.3)(1)(2) ($1.3) D
Slide 35: Balance Sheet & Capitalization
Balance Sheet & Capitalization Balance Sheet (as of 03/31/2020) Capitalization Table (as of 05/11/2020) Cash, cash equivalents, short- Stock price (per share) $XX term investments and restricted $8.4M cash Shares outstanding 7.2M Net working capital $9.1M Options 0.4M Total assets $40.1M Warrants 0
Slide 36: Capital Expenditures
Capital Expenditures Our capital expenditures during the five-year period from January 1, 2015 through December 31, 2019 have been larger than our historical norm primarily due to investments to increase our production capacity for the First Defense® product line and to construct and equip our Drug
Slide 37: Section #4: Other Information
Section #4: Other Information 37 37
Slide 38: First Defense Product Line
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. • Colostrum (first milk) consumption immediately after birth provides critically important antibodies before the immun
Slide 39: First Defense Product Line (continued)
First Defense® Product Line (continued) • More than 23 million doses sold in aggregate (as of 2Q 2019) • Annual gross margin consistently near 50% since 2007 • With the addition of rotavirus claim, we provide a unique breadth of protection against three leading pathogens • Improved competitive posit
Slide 40: Economics of Dairy Industry
Economics of Dairy Industry • Milk price improved during 2014, but this positive trend did not continue during 2015 or 2016. The price for 2017 was 9% higher than the 2016 average. The price for 2019 was 16% higher than the 2018 average. • The Milk-to-Feed Ratio has not returned to the recent high l
Slide 41: 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) Markets currently served: Dairy Beef Total United State
Slide 42: What is Scours?
What is Scours? • The disease manifests as rampant, uncontrolled diarrhea in newborn calves. • Scours is the leading calf disease risk. We estimate the cost to the U.S. dairy and beef industries to be approximately $741 million.(1) • Percent of pre-weaned heifer deaths caused by scours or other dige
Slide 43: Scours: Cost to the U.S. Dairy & Beef Industries
Scours: Cost to the U.S. Dairy & Beef Industries Dairy Calf Deaths Beef Calf Deaths Scours Related Cost to Dairy Industry $119 million – Calf Deaths Deaths prior to weaning 7.8% Deaths prior to weaning 6.4% $45 million – Scours Treatments % of above deaths from scours 56.5% % of above deaths from sc
Slide 44: Pharmaceutical-grade Nisin Drug Substance Facility
Pharmaceutical-grade Nisin Drug Substance Facility • Construction of a commercial-scale Nisin Drug Substance facility (in Portland, ME) was initiated 3Q 2016 and completed 4Q 2017. • Equipment installation was completed in 3Q 2018. • Cost for this project was approximately $20.8 million. • Registrat
Slide 45: Relevant Regulatory Initiatives
Relevant Regulatory Initiatives -2011: Dutch Veterinary Society restricts the use of beta lactams in cattle -2012: FDA further restricts the use of cephalosporins in food animals -2017: Veterinary Feed Directive (VFD) restricts the use of medically important antibiotics -2018: FDA announced 5-year p
Slide 46: 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 day
Slide 47: Animal Health Industry
Animal Health Industry Animal Health Companies Diagnostics and Services Companies Distributors Aratana Therapeutics (PETX)(1) Abaxis (ABAX)(4) Animal Health International(6) Bayer AH (BAYRY) (2) Advanced Animal Diagnostics (Private) Henry Schein, Inc. (HSIC) Boehringer Ingelheim AH (Private) Heska C
Slide 48: Executive Management Team
Executive Management Team • Joined ICCC in September 1989 Michael F. Brigham • Appointed as President and Chief Executive Officer in February 2000 President and Chief Executive Officer, • Director since 1999 Director • Audit Manager at Ernst & Young prior to joining ICCC • Joined ICCC in January 201
Slide 49: Board of Directors (outside directors)
Board of Directors (outside directors) • Member of the Compensation and Stock Option Committee and Nominating David S. Cunningham Committee Director • Director since 2011 • Bimeda, Axxiom Consulting, Teva Animal Health and Agri Laboratories, Ltd. • Member of the Audit Committee Steven T. Rosgen • Di
Slide 50: Sales & Marketing Territories
Sales & Marketing Territories Your Calf Crew® Bobbi Brockmann Kathy Becher Vice President of Sales & Marketing Director of Marketing 515-450-2035 800-466-8235 bbrockmann@immucell.com kbecher@immucell.com Canada 23227 94th Ave North 553 E 12th Port Byron, IL 61275 Winona, MN 55987 Chris Bradley Dale
Slide 51: Contact Information
Contact Information Company Contact Investor Relations Contact ImmuCell Corporation Lytham Partners, LLC Nasdaq: ICCC Robert Blum Michael F. Brigham Joseph Diaz President and CEO Joe Dorame Adam Lowensteiner (NY) 56 Evergreen Drive Portland, ME 04103 (602) 889-9700 – Phoenix (207) 878-2770 (646) 829