Arcadia Biosciences, Inc. · NASDAQ:RKDA
Arcadia Biosciences — Investor Presentation (July 2015)
24 slides from Arcadia Biosciences's investor presentation, July 2015
Slide 1: Introduction for Investors
Introduction for Investors July 2015
Slide 2: Forward-looking statements
Forward-looking statements Certain statements contained in this presentation are "forward-looking statements," such as statements concerning the company's ability to develop commercial products with its collaborators that incorporate its seed traits, the company’s anticipated financial results, curr
Slide 3: Forward-looking statements
Forward-looking statements These forward-looking statements speak only as of the date of this presentation and should not be construed as statements of facts. You should not rely upon forward-looking statements as predictions of future events. Although the company’s management believes that the expe
Slide 4: Arcadia is a leading agricultural biotechnology trait company
Arcadia is a leading agricultural biotechnology trait company Major global markets for Clear path to sustained agricultural crop yield financial growth 1 6 Partnered with market High-value yield traits leaders in target crops 2 5 Unique model increases value, Late-stage portfolio, 13 reduces risk 3
Slide 5: Agricultural yield is always critical, and traits create significant value
Agricultural yield is always critical, and traits create significant value Population growth and increasing per capita income drive need for increased yield Arable land per capita World popula4on Meat consump4on vs. GDP: more income = more calories (ha) (B) (Per capita meat consump4on, kg/year) +2bn
Slide 6: Significant growth potential exists from next wave of abiotic stress traits
Significant growth potential exists from next wave of abiotic stress traits 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 yield Limited number of commer
Slide 7: Creating next wave of value in untapped agricultural markets
Creating next wave of value in untapped agricultural markets ! Leading ag-biotech trait company with diversified portfolio of late-stage yield and Arcadia’s Target Space product quality traits Proof of concept ! Our role is catalytic: We bridge and de-risk Net Value Basic Technology Risk Commercial
Slide 8: 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 trial Transform Product Regulatory Seed Activities discovery concept into crops data into target development approval marketing crops and sales Rice Whea
Slide 9: Late-stage portfolio with 13 products in Phase 3 of development or later
Late-stage portfolio with 13 products in Phase 3 of development or later Phase D 1 2 3 4 C Program Crop Collaborator(s) Months 24-48 12-24 12-24 12-24 12-36 Key markets Productivity traits: Designed to increase crop yields and income through improved input efficiency and environmental stress toleran
Slide 10: Arcadia and partners rapidly move traits into the field for testing and development
Arcadia and partners rapidly move traits into the field for testing and development Davis, CA (Headquarters) Arcadia Trials Licensee / Cooperator Trials Verdeca (JV) Trials Arcadia Facilities Current and planned 2014-2015 field trials Source: Company information 10
Slide 11: Partnered with leaders in target crops, markets and geographies
Partnered with leaders in target crops, markets and geographies • Leading global wheat seed breeder • Investor ! Commercial agreements and marketer • JV partner enable and incentivize Wheat • Commercial partner • Fourth largest global seed since 2009 sub-licensing and stacking company overall to max
Slide 12: Traits and capabilities lead to high value-capture
Traits and capabilities lead to high value-capture Value-sharing ! Arcadia has licensed key technologies to partners for most major crops and Value created countries for farmer • Farmer – seed company value allocation based on partner experience 60-65% 35-40% • Arcadia value allocation established b
Slide 13: Contractual milestones provide near-term revenue and visibility on progress
Contractual milestones provide near-term revenue and visibility on progress Initiation Commercialization Phase 1 2 3 4 C Tech Access Fee Greenhouse Efficacy Field Efficacy 1 Field Efficacy 2 (when applicable) Regulatory Submission Regulatory Approval Commercial Launch 13
Slide 14: Clear path to sustained financial growth with 50 products in development
Clear path to sustained financial growth with 50 products in development Phase PROGRAM Crop Collaborator(s) Key Markets D 1 2 3 4 5 PRODUCTIVITY TRAITS Nitrogen Use Efficiency (NUE) Wheat Limagrain, Mahyco, CSIRO, ACPFG Global Rice Mahyco, AATF Asia Soybean Verdeca Americas, Asia Corn - Global Cotto
Slide 15: Significant trait revenue opportunity – diversified by trait and crop
Significant trait revenue opportunity – diversified by trait and crop Annual Trait Revenue Opportunity Approximately $9B-$14B1 By Trait By Crop Chart Title Sugarcane Canola 1% 4% Salinity Cotton Tolerance 6% 14% Rice Corn 17% 29% Heat Nitrogen Use Tolerance Efficiency 21% 43% Soybeans Wheat 20% 23%
Slide 16: Drought Tolerant soybeans have received first regulatory approval in Argentina
Drought Tolerant soybeans have received first regulatory approval in Argentina Drought Tolerance – Soybeans Market Potential Value Creation DEVELOPMENT PHASE / PROBABILITY OF SUCCESS • Global: 110M Ha • Each 10% yield increase creates D 1 2 3 4 C ~$10B added value globally • 4th largest global crop
Slide 17: NUE rice demonstrates average yield increase of 27%
NUE rice demonstrates average yield increase of 27% Nitrogen Use Efficiency – Rice Market Potential Value Creation DEVELOPMENT PHASE / PROBABILITY OF SUCCESS • Global: 162M Ha • Each 10% yield increase creates D 1 2 3 4 C ~$30B added value globally • 3rd largest global crop 24-48 mo 12-24 mo 12-24 m
Slide 18: NUE wheat demonstrates average yield increase of 10%
NUE wheat demonstrates average yield increase of 10% Nitrogen Use Efficiency – Wheat Market Potential Value Creation DEVELOPMENT PHASE / PROBABILITY OF SUCCESS • Global: 217M Ha • Each 10% yield increase creates D 1 2 3 4 C ~$20B added value globally • Largest global crop 24-48 mo 12-24 mo 12-24 mo
Slide 19: Next generation abiotic stress trait stacks developed and field-tested
Next generation abiotic stress trait stacks developed and field-tested Stacked Traits – Rice Market Potential Value Creation DEVELOPMENT PHASE / PROBABILITY OF SUCCESS • Global: 162M Ha • Each 10% yield increase creates D 1 2 3 4 C ~$30B added value globally • 3rd largest global crop 24-48 mo 12-24
Slide 20: Non-GM Herbicide Tolerant wheat taps into largest existing trait market
Non-GM Herbicide Tolerant wheat taps into largest existing trait market Herbicide Tolerance – Wheat (non-GM) Market Potential Value Creation DEVELOPMENT PHASE / PROBABILITY OF SUCCESS • Global: 217M Ha • Based on combination of herbicide D 1 2 3 4 C cost reduction and yield increase • Largest global
Slide 21: Non-GM Resistant Starch wheat improves health qualities of wheat
Non-GM Resistant Starch wheat improves health qualities of wheat 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 • $2B market opportunity 24-48 mo 12-2
Slide 22: Arachidonic Acid (ARA) Oil will be the second high-value oil commercialized by Arcadia
Arachidonic Acid (ARA) Oil will be the second high-value oil commercialized by Arcadia ARA Oil Market Potential Value Creation DEVELOPMENT PHASE / PROBABILITY OF SUCCESS • Global • ARA critical to eye and brain D 1 2 3 4 C development in infants • $160M market opportunity 24-48 mo 12-24 mo 12-24 mo
Slide 23: Growth assumptions conservatively modeled
Growth assumptions conservatively modeled Trait market adoption rate and share 100 HT sugarbeets (95%) HT soybeans (93%) HT cotton (82%) 80 Bt cotton (75%) Trait % of planted area HT corn (85%) 60 Bt corn (76%) Arcadia trait 40 High range: 30-40% Medium range: 20-30% 20 Low range: 15-20% 0 1 2 3 4 5
Slide 24: Arcadia is a leading agricultural biotechnology trait company
Arcadia is a leading agricultural biotechnology trait company Major global markets for Clear path to sustained agricultural crop yield financial growth 1 6 Partnered with market High-value yield traits leaders in target crops 2 5 Unique model increases value, Late-stage portfolio, 13 reduces risk 3
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