Good morning. Intimate room, and look forward to the next 20 to 30 minutes talking a little bit about Lifecore Biomedical. My name is Paul Josephs. I'm President and CEO of Lifecore Biomedical. I'm joined by Ryan Lake, our Chief Financial Officer. Over the next period of time, we'll tell you a little bit of our Lifecore story. Just a little bit of information here with regard to our forward-looking statements and with regard to our non-GAAP financial measures. Hopefully, the key takeaways you have from our presentation today are that you will see that Lifecore Biomedical is an industry-leading CDMO with broad capabilities in injectables. We have an aggressive growth strategy targeting a 12% revenue CAGR over the midterm, along with improving our EBITDA margins to greater than 25%. We participate in a high-growth market, expected to increase by over 100% by 2030.
We have a high-value pipeline, including multiple near-term programs which we expect to commercialize in the midterm. We certainly have expanded our revenue-generating capacity to $300 million in annual revenue. We have an experienced leadership team with a proven track record of previous success in the CDMO and pharmaceutical industry. For those of you who may not be aware of Lifecore Biomedical, you may recognize the name Land ec. We were part of a food conglomerate up to approximately 24 months ago, embedded within this food conglomerate: low-margin, commodity, agricultural business. Ryan likes to say avocados and salads. It also included the high-margin, or certainly profitable, CDMO of Lifecore Biomedical. Over the past 24 months, we've gone through a transformation to a standalone CDMO, extricating and divesting of these low-margin, commodity food businesses. Now the transformation is complete to a standalone CDMO.
There are a number of things that had to take place over the past 24 months. That included establishing and creating best-in-class technical capabilities, not only the physical capability, but that of our people. As was articulated to me by a large multinational pharmaceutical company recently, the talent at Lifecore Biomedical is world-class. We strengthened our financial position with a capital raise in September and non-dilutive divestment of excess equipment in the September, October, actually, excuse me, the December timeframe. We have doubled our revenue-generating capacity with the addition of a high-speed isolator filler, which is state-of-the-art. We have enhanced our business development strategy and resources. We have addressed our Nasdaq and regulatory compliance issues associated with the divestiture of the food businesses. The leadership transformation is complete. I joined the organization in May of 2024, 31-plus years in the CDMO industry.
Ryan, who will join me just here in a minute, or join you here in a minute, 25-plus years in the pharmaceutical and life science industry with previous public company CFO experience. We have completed our leadership transition with a number of other people who have joined us. We will talk a little bit more about that in the coming slides as well. Lifecore at a glance, as I mentioned, a fully integrated CDMO focused in on development and commercial manufacturing of sterile injectable products. We are located just outside of the Minneapolis area in Chaska, approximately 30 minutes from the Minneapolis airport, 450 employees. Our projected revenue for FY25, which ends in May, is $126-$130 million, with adjusted EBITDA margins of $19-$21 million.
The business was established in 1965, really around the fermentation of hyaluronic acid, which is used, if you think about it, for those of you in the derm, maybe recognize hyaluronic acid for derm-based products in the skin as a moisturizer or a lubricant. Well, we make sterile injectable-grade hyaluronic acid, which goes into the use of in ophthalmic and orthopedic use. For those of you in the room who know of or have had, as an example, cataract surgery, we make what we call OVDs, which are ophthalmic viscosurgical devices. Think of it like a jelly layer over the eye as an injectable. If you have knee problems or other joint problems, injectables that go into joints within the body, that's what hyaluronic acid in injectable space is used for.
We have global regulatory capabilities, which allow us, for our partners, to produce and ship to most of the industrial world. Campus overview, we have 248,000, almost 250,000 sq ft of space. Our Site 1 headquarters is our manufacturing location where we do both our manufacturing and fermentation of our hyaluronic acid, as well as our development and manufacturing of our sterile injectables. Our headquarters location is here as well. Our Site 2 building in Lakeville has now recently completed within the past 24 months a state-of-the-art quality control lab, secondary packaging. We do a lot of contract development work within this site as well for our analytical customers. Our final site is our Site 3, which is a distribution center, but provides additional space for future expansion if required.
Our confidence in our midterm projections is really buoyed by the vast and growing markets that we serve, as well as the strong industry tailwinds that we have. The CDMO market is growing at a high single-digit rate. The area that Lifecore specializes in is that global injectable CDMO, so sterile injectable market, a $10 billion market that has double-digit CAGRs. We're growing faster than the market. I would say, in general, the CDMO industry is characterized by sticky customers because of the high regulatory and high switching costs associated with that. In addition, for investors, it's an area where you can bet on the pharmaceutical industry without taking the binary risk of a single asset and having multiple shots on goal. Separately, we also participate, as Paul mentioned, in the hyaluronic acid.
This is kind of the drug substance or API part of the business, which is almost a $10 billion market, growing at a 7% CAGR. All of this is underpinned by industry tailwinds. When you think about onshoring, region-for-region manufacturing, tariffs you may have heard of in the news recently, all of those things really underpin domestic manufacturing in the U.S. Over 50% of drugs approved in the U.S. are injectables. We expect that trend to continue with biologics, GLP-1s. There has been a huge explosion in GLP-1s. That is beneficial for us as well because it is taking capacity out of the market. Even if we do not meaningfully participate in the GLP-1 market, that is going to create opportunities for us where people are going to be looking for demand and capacity in other therapeutic areas that provides an open door for Lifecore.
Thanks, Ryan. As it relates to our growth strategy, we're executing against a three-pronged strategy. One is maximizing our existing business with our existing commercial customers. Two is advancing programs towards commercialization, programs which are currently under development at Lifecore Biomedical. The third piece is around driving new business by the addition of impactful new development programs to our business. Our midterm outlook, which I articulated, is a 12%+ CAGR over the midterm. Our long-term revenue outlook looks like this. For FY2025, which I mentioned, let's see if this is right here, $126-$130 million, and utilizing approximately 20% of our overall capacity, growing over the midterm at 12%, which will bring us to $178-$205 million over the midterm, which we define as the next 36-48 months. That would still only use 40% of our existing capacity.
Our long-term revenue outlook takes us up to $300 million in overall revenue and utilizing the complete 45 million units of available capacity. That midterm confidence, and we'll get into it in just a little bit, is, like Ryan said, buoyed in our confidence by the fact that in these blue bars is all with regard to revenue associated with programs currently commercialized at Lifecore. The green bar covers programs that would be commercialized in future years that is risk-adjusted pending approval by the FDA. A small component in that dark top blue bar is associated with new programs that would be brought onto our site. We have a strong list of existing commercial customers, the majority large multinational pharmaceutical companies who've been part of our organization between 20 and 40 years.
The largest customer that we have is some customer that's known to, I'm sure a number of you, is Alcon out of Fort Worth, Texas, the leader in ophthalmic products. We have very strong trust and reliability with those customers. We anticipate becoming a bigger part of their overall wallet and share over a period of time as we continue to work towards onboarding new programs. We are focused in, as a new strategy, focused in on commercial excellence to maintain and improve our margin profile over a period of time. What gives us confidence in the strength to double our commercial demand? The majority of that doubling of our commercial unit projection is covered by what we characterize as minimum guaranteed volumes or commitments by our customers. As an example, a customer says, figuratively speaking, "Next year in 2026, I will do 10 million units.
If I only do eight, I will still pay you for 10. The majority of our doubling of our unit projection will be covered by minimum guaranteed commitments by our existing customers, and then modest growth coming from new growth. That is the commercialization of the new programs that I will talk about in just a minute, and other commercial growth from existing customers. This significant inflection point is expected to manifest itself in 2027 based on our existing agreements with our customers and does not include potential upside, does not include the potential upside to contractual minimums. As an example, I use the example where a customer asks us to produce 10 million units in a year or committed to 10 million. In some cases, they may be figuratively asking us to do another 25%, have available capacity to support another 25%.
We have been thoughtful in our approach to our projections, taking the minimum volume commitment and not the requested volume commitment. We talked about the hyaluronic acid fermentation, the drug substance, as Ryan articulated. We see strong and steady demand in this revenue stream over the midterm. As we discussed, we are the leader in sterile injectable fermentation of hyaluronic acid, primarily for use in the ophthalmology area as well as the orthopedic area. The HA that we have produced has sold over 150 million doses worldwide. Moving towards advancing our programs towards commercialization, our total development pipeline is valued at $100 million-$200 million in future commercial revenue. Ten of those programs, which I will go into a little more detail in over the next slide, are what we characterize as late-stage programs, which have the opportunity to commercialize over the midterm.
We have a strong diversification of new customer base in these development programs. This takes a little more detailed look at our late-stage programs. You see we have 10 programs that have the opportunity to commercialize over the midterm, the next 36-48 months, with three of those programs having the potential, based on the customer's forecast, our anticipated selling price to generate over $10 million. Three of the programs have the potential to generate between $5 million and $10 million, and the remaining four need to generate between $0 and $5 million in future revenue. These represent 10 distinct programs with 10 what would be new commercial customers to Lifecore, broadening our commercial-based business across, obviously, a broader spectrum of customers.
The other thing I will mention here is we've taken a very thoughtful approach to how we've risk-adjusted this potential, discounting the revenue potential associated with these late-stage programs by approximately 60% based on FDA success rate. The FDA success rate for late-stage programs, what we characterize as Phase 3, is approximately 40-some odd percent. We've taken that same percentage and just risk-adjusted down by 60% to develop our midterm projections. The final piece to our growth strategy is around attracting high-value new business to Lifecore Biomedical by strategically expanding our target market, the installation of the state-of-the-art five-head isolator filler, which I mentioned, and expanding our business development strategy and brand awareness. Lifecore Biomedical is well known for its ability to produce high-viscosity injectable programs, what we call injectable medical devices.
Over the past year, we have expanded our BD strategy to go into additional attractive therapeutic areas, looking at new chemical entities in both Phase 2 and Phase 3, unique injectable delivery systems, again, to continue to build on our legacy in orthopedic and ophthalmic products, and looking aggressively at commercial site transfers. That puts us in the market for production and development of biosimilars, other small molecule products, monoclonal antibodies, biologics, complex generics, GLP-1s, and peptides. These expanded targets have led to, as a leading indicator, a high-valued, pipe-strong, and diverse pipeline of new business opportunities, which we are pursuing. We have over 50 potential new business opportunities that our BD team is working on, a mix of both large and specialty pharma. When I joined the organization, our pipeline was less than 10% large multinational pharmaceutical companies.
The large multinational companies represent approximately a third of our overall pipeline. A significant number of these programs are also late-stage programs or commercial site transfers, which de-risk the success rate or the risk associated with the development programs. In addition, we've added this five-head isolator filler, which is state-of-the-art. It's significantly expanded our capacity, increasing it to $300 million annually. It approximately doubled our revenue-generating capacity and has the ability to produce not only vials, but syringes and prefilled cartridges. It also strengthens our compliance because it's what your large multinational pharmaceutical companies expect and demand as it relates to future sterile injectable manufacture. Ryan?
As we build momentum and generate growth, it's so important for us to invest in those operational strategies that can really support that growth. Here you can see, and specifically, it's related to our people. It's recruiting, developing, training, and retaining those world-class individuals in a performance-driven culture. It's reducing our operational expenses as a percentage of revenue. It's our history and reputation from a commitment to quality in everything we do. As we think about those operational efficiencies that we need to achieve, I'm going to be working closely with our Head of Operations, our VP of Operations, Thomas, really across the organization, looking at both execution as well as what we're doing from a procurement standpoint, as well as leveraging overhead costs in manufacturing cycles.
When we think about manufacturing cycles, lead times, procurement of inventory, to the way we're monitoring production shifts and schedules and spreading those out to looking at yield and scrap rates of products, all of those things are incredibly important to drive the bottom line. In addition to that, there's opportunities from an efficiency standpoint as it relates to professional accounting fees, legal fees, looking at insurance, looking at gowning. There are a number of things that we think we can do to drive costs to improve the bottom line. These, combined with what you heard Paul talk about from a revenue growth perspective, as well as us leveraging our operating costs, will help us to significantly improve our EBITDA margins from 15%-25% over the midterm. Again, we have a very strong history and reputation of over 40 years of quality and regulatory compliance globally.
We have a multi-compendial global regulatory system that can support customers in various different countries. We cannot be successful without our commitment to quality. That is in the regulatory bodies that we serve, as well as our customers. As Paul alluded to earlier, the management team that we have here is top-notch. It is one of the main reasons that I joined the company. Paul has a tremendous reputation and experience in this industry with over 30 years. He has seen this before. He has executed on growth strategies similar to what we are executing on here at Lifecore. I have been in the industry before, public company experience, as well as operational experience, as well as the incumbents that we have at the organization and others that have joined us recently. This team is engaged, hungry. There are going to be challenges. This is not going to be easy.
I think we've assembled an incredible team to help us achieve those goals and objectives that we've set out. As we think about the financial highlights, we just finished our second quarter, which ended in November. We reported on this in early January. Revenues of $32.6 million, an 8% increase from Q2 fiscal 2024, with adjusted EBITDA of $6.5 million, which was up $1.1 million from Q2 of fiscal 2024. Our full-year guidance of $126.5-$130 million in revenue and adjusted EBITDA of $19-$21 million. A couple of kind of year-to-date significant achievements. We've signed approximately six deals so far through the end of the second quarter. We've strengthened our balance sheet from a liquidity perspective from both financing as well as restructuring of our revolving credit facility with BMO. These are some non-GAAP reconciliation measures.
To conclude here, Lifecore is a great company, a leader in the sterile injectables market. We have some exciting opportunities that are ahead of us. You saw that those 10 late-stage commercial projects that we have were in a durable industry with strong tailwinds behind us. We have a clear pathway to both top and bottom-line growth. Just want to thank you guys, and thank you for your time, and thank you for inviting us to the TD Cowen Conference this year.