Yet Another Value Podcast

David Capital Partners' Adam Patinkin on Lifecore's CDMO business $LFCR

Mar 31, 2025

Adam Patinkin, Managing Partner at David Capital Partners, shares his insights on Lifecore Biomedical, a major player in the CDMO industry. He dives into Lifecore's investment potential, highlighting its stability and profit margins. The conversation also covers the hidden opportunities within its business model and market strategies amid regulatory shifts. Patinkin discusses the management team's pivotal role in driving growth and addresses the challenges the company faces, shedding light on the delicate balance of risk versus reward in this evolving landscape.

01:11:52

Creator website

Episode guests

Adam Patinkin

AI Summary

AI Chapters

Episode notes

Podcast summary created with Snipd AI

Quick takeaways

LifeCore's transformation into a focused CDMO positions it to capitalize on high-demand injectable pharmaceuticals and improve EBITDA margins.

Recent changes in LifeCore's management team, with experienced leaders, aim to enhance operational efficiency and long-term growth potential.

While LifeCore faces execution risks and market uncertainties, its projected revenue growth and industry dynamics suggest significant upside potential.

Deep dives

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Intro

3min

LifeCore: A CDMO Success Story

18min

Unveiling LifeCore: Hidden Opportunities in a Competitive Market

4min

Navigating LifeCore's CDMO Challenges

6min

Navigating Corporate Transformation

17min

Navigating Regulatory Changes in Life Sciences

18min

Investment Insights on LifeCore's Acquisition Potential

6min

Navigating Public Company Strategies and Future Earnings Insights

2min

Adam Patinkin, CFA, Managing Partner at David Capital Partners, LLC, joins the podcast to discuss his thesis on Lifecore Biomedical, Inc. (NASDAQ: LFCR), a fully integrated contract development and manufacturing organization (“CDMO”).

For more information about David Capital Partners, please visit: https://davidpartners.com/

Chapters:

[0:00] Introduction + Episode sponsor: Fintool

[2:23] Who is David Capital and why $LFCR is interesting to Adam

[6:16] $LFCR history

[12:55] What is a CDMO (Contract Development and Manufacturing Organization) and how ingrained into the regulatory approval process they are; why these businesses are attractive

[21:47] What is Adam seeing with $LFCR that the market is missing

[24:00] $LFCR business

[30:16] Why this management team will change the trajectory of the company

[38:10] Capacity / concern about the speed to fill capacity

[46:45] Trump regulatory tailwinds / RFK headwind

[53:03] What has kept this company from achieving greatness / risk vs. reward with $LFCR

[1:02:33] Management team incentives

[1:04:41] Conversation about the math (valuation)

[1:10:08] Final thoughts

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