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Brent Bailey, President and CEO of Cyanotech Corporation (CYAN), Interviews with The Wall Street Transcript

67 WALL STREET, New York - July 22, 2013 - The Wall Street Transcript has just published its Agricultural & Specialty Chemicals Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs and Equity Analysts. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

Topics covered: Crop Yield Management - U.S. Corn Crop - Chemicals Companies Pricing Power - Fertilizers, Paints and Coatings, and Petrochemicals - Emerging Market Demand - Specialty Chemicals and Fertilizer Pricing Power

Companies include: Cyanotech Corp. (CYAN) and many more.

In the following excerpt from the Agricultural & Specialty Chemicals Report, the President and CEO of Cyanotech Corporation (CYAN) discusses company strategy and the outlook for this vital industry:

TWST: Tell us a bit more about your products. In which categories do you expect to see the best growth?

Mr. Bailey: We were largely a one-product company with Spirulina for about the first 15, 20 years, and then we developed Astaxanthin as well, and believe that there is huge potential in both areas. Spirulina is basically nutrition in its most concentrated form, and the benefits related to that are immunity, energy and replenishing nutrients, so those three areas have huge potential, in my opinion, for just about anybody.

The same is true of Astaxanthin; it's the strongest natural antioxidant that's yet been discovered. It's a powerful anti-inflammatory and helps with healthy aging. So both of those two categories have got huge upside growth potential, but very limited mainstream awareness either in the United States or globally. About two years ago there was a four-minute segment on "The Dr. Oz Show" titled "The Best Supplement You've Never Heard of that You Should Be Taking."

As soon as that hit, the Astaxanthin business took off. We were about a $17 million company, and we grew to $24 million over the next year. The majority of that growth was a function of the publicity related to that one four-minute segment. We took advantage of it in terms of building our business, but that was really the first mainstream publicity related to that product category, and things took off from that point. We believe that Spirulina has similar upside potential, and yet is largely unknown to the mainstream audience.

We've done well in the natural products channel in Hawaii. We've done well in the mainstream channels in Hawaii. We're doing well domestically in the natural products channel, and over time we'll get into the mainstream market as well and build awareness of the products that we're selling. The bottom line is we believe that both Spirulina and Astaxanthin have huge upside potential. To try to quantify that potential, we're currently selling $1.47 net sales per capita in the state of Hawaii of the two products combined. If we can duplicate that on the mainland, the potential is enormous. We've seen no indication that we can't realize that potential long term.

Now as far as the markets go, we started as primarily a bulk ingredient manufacturer. We still have limited resources, and so we want to get as much out of those lava ponds as possible. Since we get much higher revenue and margins per kilo that we produce in the consumer markets, we are in the process of...

For more of this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.