Making the Food You Love a Healthier Choice™ - Calyxt · Making the Food You Love a Healthier...
Transcript of Making the Food You Love a Healthier Choice™ - Calyxt · Making the Food You Love a Healthier...
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FORWARD LOOKING STATEMENTS
Thiscommunica.oncontains“forward-lookingstatements”withinthemeaningofthesafeharborprovisionsoftheU.S.PrivateSecuri.esLi.ga.onReformActof1995.Insomecases,youcaniden.fythesestatementsbyforward-lookingwordssuchas“may,”“might,”“will,”“should,”“expects,”“plans,”“an.cipates,”“believes,”“es.mates,”“predicts,”“poten.al”or“con.nue,”thenega.veofthesetermsandothercomparableterminology.Theseforward-lookingstatements,whicharesubjecttorisks,uncertain.esandassump.onsaboutus,mayincludeprojec.onsofourfuturefinancialperformance,ouran.cipatedgrowthstrategiesandan.cipatedtrendsinourbusiness.Thesestatementsareonlypredic.onsbasedonourcurrentexpecta.onsandprojec.onsaboutfutureevents.Thereareimportantfactorsthatcouldcauseouractualresults,levelofac.vity,performanceorachievementstodiffermateriallyfromtheresults,levelofac.vity,performanceorachievementsexpressedorimpliedbytheforward-lookingstatements,includingthosefactorsdiscussedunderthecap.onen.tled“RiskFactors”inourregistra.onstatementonFormS-1,alongwithourotherfilingswiththeU.S.Securi.esandExchangeCommission.Wedonotassumeanyobliga.ontopubliclyproviderevisionsorupdatestoanyforward-lookingstatements,whetherasaresultofnewinforma.on,futuredevelopmentsorotherwise,shouldcircumstanceschange,exceptasotherwiserequiredbysecuri.esandotherapplicablelaws.
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• SugarcaneDivisionGeneralManager,Monsanto• Manager,Omega-3SoybeanProgram,Monsanto• MBA,WashingtonUniversity,St.Louis• AgronomicEngineer,BuenosAires,Argen.na
A World Class Management Team
• NorthAmericanSupplyChainFinanceLead,Monsanto• DirectorofInvestorRela.onsandDirectorofFinance
(RegionalCFO)forLatAm,Monsanto• Ernst&Young
• 20+Yearsofcommercial,strategyandM&Aexperienceformul.pleglobalagriculture,food,energyandmaterialscorpora.ons
• AssistantVicePresidentforFoodIngredientsandBio-industrialEnterpriseatCargill
• MBA,TuckSchoolofBusinessatDartmouth
FedericoTripodi,CEO
BryanCorkal,CFO
ManojSahoo,CCO
• InventorofTALEN®Technology• ProfessorandDirectorofGenomeEngineeringDepartmentat
theUniversityofMinnesota• ElectedFellowoftheAmericanAssocia.onforthe
AdvancementofScience• Ph.D.inGene.cs,Harvard
Dr.DanVoytas,Ph.D.,CSO
• 12+YearsofGeneedi.ngresearchexperienceatIAState,UofGeorgiaandUMN
• ResearchDirectoratCalyxt• Co-inventorofTALEN®geneedi.ngtechnology• Ph.D.inGene.cs,IowaStateUniversity
Dr.FengZhang,Ph.D.,COO
• Founder,CEOandChairmanofCellec.s• Oneoftheinventorsofnuclease-basedgenomeedi.ng
technologies• Ph.D.inMolecularVirology,UniversityofParisIV• ResearchfellowshipintheHarvardMedicalSchool
DepartmentofGene.cs
Dr.AndréChoulikaPh.D.,Chairman
MichelArbadji,CommercialDirector• 27Yearsofagriculturalbusinessdevelopmentexperience
across5con.nents• HeadofOpera.ons,SignatureControlSystems• HeadofSales,TheToroCompany,Yacco• Agronomy,MBAESCP-INAPG,Paris
JosephSaluri,J.D.,GeneralCounsel
Dr.GlennBowers,Ph.D.,VPBreeding• 36YearsofSoybeanBreedingexperienceinpublicandprivate
sectors• GlobalHeadSoybeanbreeding,Syngenta• Head,SoybeanbreedingSouthAmerica,Syngenta• Ph.D.PlantPathology,UniversityofIllinois,Urbana-
Champaign
• MemberoftheBoardofKemPharm,Inc.• VicePresidentofBusinessDevelopment,ChiefLegalOfficer,
S.neSeedCompany• U.S.AjorneyandUKSolicitoratLaw,NicolasCritelli
Associates• J.D.,DrakeUniversityLawSchool
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Who is Calyxt?Food ingredients for consumer health
Weare…
acompanydevelopinghealthierspecialtyfoodingredients……byleveragingcumngedgesciencetodevelopfoodcropsthroughgeneedi.ngtechnologies
ConsumerNeeds
Healthierfoodingredients
AgronomicTraits
FarmerNeeds
BestinClass
GeneEdi(ngTechnologiesandTechnicalExper(se
BestinClass
ProductDevelopmentCapabili(es
BestinClass
Iden(tyPreservedSupplyChain
BestinClass
SpecialtyFoodIngredients
Howwearebuildingapathtomarket..
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CURRENTINDUSTRYCHALLENGESRECENTFOODANDHEALTHCHALLENGES
100% IncreaseinObesitycasesamongstadultsinlast30years
43% DeathscausedbydiseaseslinkedtoPoorDietincludingDiabetesandHeartDisease
50% IncreaseinFoodAllergiesinchildrenbetween1997and2011
DataShownforUnitedStatesofAmerica
Food Related Issues are GeSng Worse Legacy agriculture companies have overlooked society’s food related issues
AGINDUSTRY:- Commodi.zedsupplychains
- Increaseproduc.vity
- Reducecost/inputs
- GrowGMOsinmaincrops
- Noconsumerfocusedinnova.on
FOODINDUSTRY:- Processedfoodswithchemicaladdi.ves
- Consumerswantvariety
- Provide‘cleanlabels’
- Providehealthbenefitsandfunc.onality
Source:CentersforDiseaseControlandPreven.on,Na.onalCenterforHealthSta.s.cs,andtheJournalofHealthEconomics
48% Increaseinmedicalcarecostsfromobesity($315Bin2010)
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ReduceWaste
Insect/DiseaseResistance
HerbicideTolerance
ReduceInputslikenitrogen,phosphorus
IncreaseYield
Gene Edi9ng is a Paradigm ShiW Our Technology Allows Us to Address Both Consumer and Farmer Needs
MOREOF…
LESSOF…
PlantProteins
Nutrients
Color,Flavor
DietaryFibers
GoodFats
Vitamins
SaturatedFatsTransFats Allergens Toxic
Compounds
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TALEN® - Proprietary, Leading Gene Edi9ng Technology Genome Edi9ng Through A Simple Two-Step Process
33GeneisrepairedImprovementofgenefunc.on
Geneisinserted(Knock-in)inser.onofanewtrait
Geneisdisabled(knock-out)removalofundesiredtraits
Calyxtisafirstmoverofarevolu]onarytechnologywithstrongresultsandpoten]al
Identify Gene Target
Cut DNA at the gene-of-interest site
Gene is disabled(knock-out)
Gene is edited Gene is inserted(knock-in)
Two TALENs recognize their
DNA target
The nuclease domains interact and cut the DNA
Gene is disabled (knock-out)
Gene is edited or repaired
Gene is inserted (knock-in)
TwoTALEN®recognizetheirDNAtarget
Acontrolledcutisinducedinthegene-of-interest
GENOMEEDITINGPROCESS(TALEN®)
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Intellectual Property Overview Broad patent protec9on in mul9ple technologies
- WillhaveanexclusiveworldwidelicenseagreementwithCellec.sinthefieldofresearching,developingandcommercializingseedsandfoodingredients(excludinganimals)foragriculture,feedandfoodapplica.ons
- Calyxt’slicenseagreementwithCellec.sisperpetual
- ExclusivelicenseagreementwiththeUniversityofMinnesotafortheuseofCRISPR/Cas9technologytomakeuse,andcommercializeproductscoveredbythelicensedpatentsinanyfieldofuse
- Licenseop.onagreementwithPlantBioscienceLimitedandIns.tuteofGene.csandDevelopmentBiologyChineseAcademyofSciences
- CommerciallicenseagreementwithTwoBladesFounda.onrela.ngtoTALnucleasetechnologies
TALEN®
Meganuclease
CRISPR
SpecificTraits
U.S.
Foreign
178Patents
76Patents
118Patents
49Patents
16Patents49PatentApplica]ons
65Patents121PatentApplica]ons
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Trait Development Process
Taking the Lead by Decreasing Development Timelines A comparison of crop development process – Tradi9onal vs. Calyxt
Farmer needs
Phase I
1-2 years
Phase II
1-2 years
Field Valida9on & Tes9ng
Phase III
1-3 years
Seed Produc9on & Pre-Launch
Healthier Food needs
Market Launch
Crea9on of Genome-Edited
Lines
Construct Op9miza9on
Crea9ng Commercial
Event Field Tes9ng
Regulatory Studies
Market Launch
Average: 13 years; $130 million
Tradi9onal GMO Development Process Phase I Phase II Phase III Phase IV
Trait Discovery
Trait Discovery
Months
3–6 years; significantly reduced development cost
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We have Developed a Strong Product Pipeline Fueled by Several Opportuni9es of Product Ideas
Product Candidate Discovery Phase I Phase II Phase III
Consumer Centric Products
High Oleic Soybean*
High Oleic / Low Lin Soybean*
Improved Protein Composition Soybean
High Fiber Wheat
High Fiber Wheat II
Reduced Gluten Wheat
Improved Oil Composition Canola
Cold Storable Potato*
Reduced Browning Potato*
Cold Storable / Reduced Browning Potato
Late Blight Resistant Potato
Farmer Centric Products
Drought Tolerant Soybean
Improved Yield Soybean
Herbicide Tolerant Soybean
Powdery Mildew Resistant Wheat*
Herbicide Tolerant Wheat
Herbicide Tolerant Canola
Improved Quality Alfalfa
Herbicide Tolerant Alfalfa
Soybean Wheat Canola Potato Alfalfa
* USDA confirmation that product is not a regulated article under PPA 7 CFR part 340
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Product Candidate #1: High Oleic Soybean
• 80%oleicacid• 20%lesssaturatedfats• Zerotransfats• Improvedoilprofile,similartooliveoil• Upto3xincreasedfry-life• Blandtaste,idealforfoodapplica.ons
Calyxt’sHighOleicSoybeanOilComposi]on1
OleicOilComposi]onComparison1,2Status/Timing
Enhancing Health Ahributes by Improving Oil Composi9on
1. Companydata2. CodexAlimentarius,StandardsforNamedVegetableOils,CODEXSTAN210-1999
0
50
100
Commodity CalyxtHOSoybean
Linoleic Linolenic Saturated Oleic
15242731
52616980
0% 20% 40% 60% 80% 100%
SafflowerSoybean
SunflowerMaizePeanutCanolaOlive
CalyxtHOSoybean
Oleic Saturated Polyunsaturated
ü CurrentlyinPhase3ü Expected2018commerciallaunchü Morethan45,000bushelsproducedü Supplychainpartnershipsestablished
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Year0 Year5
Calyxt’s Proprietary Breeding Program
24+EliteParents Crossingof
ElitexCalyxtHO
SinglePlants(50,000-100,000)
SingleRow
Trials(2000-5000)
60NonGMO
FinishedVarie.esAvailableforGeneEdi.ng
HOVersionofCurrentVarie.es
ReplicatedYieldTrials
(10-30Varie.es)
2-3HOCore
Varie.es/Year
Accelera9ng Tradi9onal Breeding with Gene Edi9ng Precision
Calyxthassuccessfullyreachedanumberofmilestonesü Startedbreedingprogramin2016with24diversepopula.ons
ü 3000+rowsadvancedtoSouthAmericatrialsforClassof2021
Tradi.onalBreedingProgram
TALEN®Powered
AcceleratedBreedingProgram
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High Oleic Soybean – Three Revenue Opportuni9es An illustra9ve example1 based on current premium veg. oil market
HOSoybeanOil HOSoybeanMeal HOSoybeanSeedPoten(alTargetMarketSize2
~$13Billion
Source:ForeignAgriculturalService,USDA,Na.onalAgriculturalSta.s.csServices,GlobalAgriculturalTradeSystem,AgriculturalMarke.ngService,Na.onalMonthlyFeedstuffPrices,MillingandBakingNews,Fats&Oils:OilseedCrushingsandPeanutStocksandProcessors.1. Thisillustra.veexampleshowsthepoten.alrevenueopportunityforhigholeicsoybeaninthreeaddressablemarketsatapeakyearofmarketpenetra.onwithin7-10yearsazercommencingcommercializa.on.Itisforward-lookingand
subjecttosignificantbusiness,economic,regulatoryandcompe..veuncertain.esandcon.ngencies,manyofwhicharebeyondthecontroloftheCompanyanditsmanagement.Theillustra.veexampleisbasedonvariousassump.ons,includingthetargetmarketsizegrowthrate,theassumedpenetra.onrateandtherateatwhichthehigholeicsoybeancapturestotalsoybeanproduc.on.Theseassump.onsaresubjecttochangeandyoushouldnotplaceunduerelianceonthisillustra.veexample.Actualresultswillvaryandthosevaria.onsmaybematerial.Nothinginthispresenta.onshouldberegardedasarepresenta.onbyanypersonthattheseobjec.veswillbeachievedandtheCompanyundertakesnodutytoupdatethisillustra.veexampleascircumstanceschange.
2. Poten.altargetmarketsizegrownat5%CAGRfor10years,whichassumes2%infla.onand3%popula.ongrowth.3. Neartermexpectedseedprice$30-$40/acre,poten.altoincreaseto$60/acreazerherbicidetolerancetraitcommercializa.on.
Poten(alHOSoybeanOilRevenue
$520-$780Million
AssumedPenetra]onRate4%-6%
HOSoybeanOilProduc(on
0.9to1.4Billionlbs.
HOSoybeanProduc(on
80-120MillionBushels
11.4lbs.Oil/bu
SoybeanProduc(on
80-120MillionBushels
Meal:44.5lbs./bu
MealProduc(on
1.8-2.7MilliontonsofMeal(4%to6%ofTotalSoybeanMeal)
Avg.Price$340/ton
Poten(alSoybeanMealRevenue
$616to$924Million
HOSoybeanProduc(on
80-120MillionBushels
GrainYield40-45bu/acre
SoybeanCoverage1.8to2.7MillionAcres(2.2%to3.3%ofTotalSoybeanAcres)
SeedSalePrice:$30-$60/acre3
Poten(alHOSoybeanSeedRevenue
$54-$163Million
Poten.alHighOleicSoybeanRevenue:$1.2–$1.9Billionassumingpenetra.onof2.2%-3.3%ofTotalSoybeanAcres
Avg.Price$0.56/lb
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Gene Edited Disease Tolerance Achieved Powdery Mildew Case Study and New Results
RESISTANTCHECK CLXTSPRING CLXTWINTER SUSCEPTIBLECHECK
ResultsValidateProductConcept
ü Wheatisahexaploid,with17Billionbases.ü AllSixcopiesofMLOgeneneededtobedeac.vatedtoconferresistance.
ü Poten.altoreducefungicideapplica.onsinwheatandmi.gateyieldlosses.
ü Wasdonetwice(springandwintervariety).ü ProvidesFounda.onforbroaderfungalresistanceproduct(mul.plediseaseconcept).
Phototaken20dayspost-inoculaFon.WheatTechnologicalBreakthroughs
Product Candidate Discovery Phase I Phase II Phase III
Consumer Centric Products
High Fiber Wheat
High Fiber Wheat II
Reduced Gluten Wheat
Farmer Centric Products
Powdery Mildew Resistant Wheat*
Herbicide Tolerant Wheat
%plantcoveredwithsporesa
bbb
FirstTALEN®geneeditedwheatharvestcompleted,yielding300LbsofPowderyMildewResistantWheatseedforfurthertes]ng
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0% 50% 100% 150%
Apples,raw,withoutskinCarrotsOrange
Commodityriceflour,brownCommodityoatflour,par]allydebranned
QUAKER,100%NaturalGranolaOatsandHoneyCommoditycornflour,wholegrain
Peas,green,rawCommoditywholewheatflour
Almonds,dryroastedKELLOGG'S,SPECIALKLowCarbLifestyleProtein
Calyxtwheatflour,wholegrain
%DailyValue
Dietaryfibercontentcomparison
Product Candidate #2: High Fiber Wheat
Calyxt’sHighFiberWheatComposi]on8
CalyxtHighFiberWheatComparison7,8
Status/Timing
White Wheat Flour with Up to 3 Times More Fiber
ü CurrentlyinPhase1ü 2018:Func.onalitytes.ngofCalyxtWheatFlour,Phase2
ü 2019:Developmentofsupplychain(e.g.,seedproducers,grainproducers,millers,foodindustrycustomers),Phase3
ü 2020-2021:An.cipatedcommerciallaunch
Poten]alFeaturesandBenefitsforConsumers:ü “Highinfiber”contentclaim4ü “Mayreduceriskofsometypesofcancer”labelingclaim5
ü “Mayreduceriskofcoronaryheartdisease”labelingclaim6
AsingleservingofCalyxthighfiberflourmayprovideupto100%oftherecommendeddailyvalue
4.CodeofFederalRegula.ons(2012).Title21,Sec.on101.54-Nutrientcontentclaimsfor“goodsource,”“high,”“more,”and“highpotency.”5.CodeofFederalRegula.ons(2012).Title21,Sec.on101.76-Healthclaims:fiber-containinggrainproducts,fruits,andvegetablesandcancer.6.CodeofFederalRegula.ons(2012).Title21,Sec.on101.77-Healthclaims:fruits,vegetables,andgrainproductsthatcontainfiber,par.cularlysolublefiber,andriskofcoronaryheartdisease.7.Calyxtinternalcalcula.on8.hjp://nutri.ondata.self.com/
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Product Candidate #3: Herbicide Tolerant Wheat
CalyxtHerbicideTolerantWheatValueProposi]on
Status/TimingWheat Tolerant to Mul9ple Herbicides
ü CurrentlyinPhase1
ü Designedtoprovidetolerancetotwodifferentchemistriescurrentlyinthemarket
ü TALEN®precisionenablesCalyxttoworkwithagene.callycomplexcroplikewheat
1.BASFClearfield®wheatbrochure:“MaximizeYourReturnonInvestmentwiththeClearfield®Produc.onSystemforWheat”2.Heap.Weedscience.org.2016
Corn(maize) Wheat Soybean Rice CojonIncreaseinUniqueHerbicideResistantWeedCasesforSelectedCrops2
140
120
100
80
60
40
20
01975 1985 1995 2005 2015
Year
Num
bero
fUniqu
eRe
sistantCases
DriversØ Yieldlosses,dockageanddiscountscancostthegrowerupto$71/acre1
Ø Weedresistancetoherbicidesisamajorissueinagriculture
Poten.alBenefits:ü Improvedyieldandgrainqualityü Non-transgenicü NoforeignDNA
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Accelera9ng Return on Investment Clear Metrics to Unlock Gross Margin Growth Opportunity
ConsumerProductLaunches
SupplyChainImprovements
FarmerProductLaunches
GrossMargin
• LaunchofHighOleicSoybeansinNA
• LaunchHighFiberWheatinNA
• Establishfarmerandcrusherbase(growsYOY)
• Establishfoodcompanycustomerfunnelbytargetapplica.on
• Morevarie.esenableregionalexpansionandlowercostofsales
• AddLowLinolenic• Seekglobalregulatory
approvalstoenableoilexports
• Scale(moreandlargercrushers)
• NewConsumerProductsLaunched(targetcrops)
KeyFactorstoProfi
tGrowth
20212018 2024• HerbicideTolerant
TraitsLaunchedwithOutLicensingmodel(noinventorycost)
• Combina.onsofconsumerandherbicidetoleranttraits
• Newaddi.onalProducts
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Calyxt – The Leader in Agriculture Innova9on Capturing fron9ers in food and ag
IndustryleadingTALEN®geneedi(ngtechnologyisde-risked
Threedifferenttransforma(onsystemsenhancespeedtomarketinmulFplecrops
Repurposingexis(ngsupplychainbringproductstomarketfaster,withcompeFFvecapitalinvestment
Largeuntappedopportuni(esinconsumeringredientstraitsincludebePercontentinfats,carbs,proteins,vitamins
Acceleratedautoma(onandhighthroughputscreeningshorterdevelopmentFmelineofmoresophisFcatedproducts
Bycombiningourleadinggene-edi.ngtechnologywithourinnova.vecommercialstrategy,wearepioneeringaparadigmshiztodeliverhealthierfoodingredientstoconsumersandagriculturallyadvantageoustraitstofarmers
Technology
ProductDevelopment
SupplyChain
Commercial
FutureGrowth