Lifecore Biomedical: Customer Mix, Switching Cost & Power in the CDMO Value Chain

This is a snippet of the transcript, sign up to read more.

Can you give me a high-level overview of the general business of Lifecore? Essentially, what does it do? Why does Lifecore matter? Why does Lifecore have to exist? Then, we can see where it goes from there.

Lifecore has an amazing technology footprint. No one that I'm aware of is building new regulated aseptic pharmaceutical or biological facilities domestically today. They are too expensive and too high-risk for many products, which are being manufactured offshore. The cost, risk, and environmental compliance issues are significant hurdles. Lifecore is a gem in terms of its facility, assets, capabilities, and FDA and EU registrations. They have capabilities that many do not, which gives them a big reason to exist today.

This is a snippet of the transcript, sign up to read more.

Why would a pharmaceutical company choose to use Lifecore onshore if it's a fraction of the cost to do it offshore? It seems like cost isn't the main driver.

These companies are a little harder to work with because they're high maintenance, but you make a lot of money off them. They are well-funded and in a gigantic hurry. Their currency isn't dollars; it's time. Honestly, I can't count the number of meetings I've sat through where we hit some failure, something didn't pass, and we had to redo something. What I hear is, "How much money will it take to avoid a schedule impact?" Money is no issue for them.

This is a snippet of the transcript, sign up to read more.