ganesh kishore chief biotechnology officerenhancinginnovation.wustl.edu/kishore.pdf · ganesh...
TRANSCRIPT
Ganesh Kishore
Chief Biotechnology Officer
December 4 2006
DuPontTranslating science to societal
value
DuPont’s Vision
To be the world’s most dynamic science company, creating sustainable solutions essential
to a better, safer, healthier life for people everywhere.
1802 1830 1850 1900 1925 1945 1990 2000 2050 2090
Birth
Growth
Maturity
Birth
Growth
Maturity
Birth
Growth
Explosives
Chemistry,Energy
Chemistry, Biology. . .Knowledge -Intensive
Solutions
MaturityE. I. du Pont
1802 1830 1850 1900 1925 1945 1990 2000 2050 2090
Birth
Growth
Maturity
Birth
Growth
Maturity
Birth
Growth
Explosives
Chemistry,Energy
Chemistry, Biology. . .Knowledge -Intensive
Solutions
MaturityE. I. du Pont
Birth
Growth
Maturity
Birth
Growth
Maturity
Birth
Growth
Explosives
Chemistry,Energy
Chemistry, Biology. . .Knowledge -Intensive
Solutions
MaturityE. I. du Pont
Electronic &Communication
Technologies
PerformanceMaterials
Safety &Protection
Agriculture& Nutrition
Coatings& Color
Technologies
Electronic &Communication
Technologies
PerformanceMaterials
Safety &Protection
Agriculture& Nutrition
Coatings& Color
Technologies
2010 Goals …• 25% of revenues from businesses not
requiring depletable raw materialsToday at 17%
• 10% of energy needs derived from renewable sources
Today at 5 ½ %
The 5 Platforms of DuPont
• Safety & Health• Environmental Stewardship• Ethics• Respect for People
Our Core ValuesThe Foundation …
DuPont – A 204 Year History of Innovation
$6.4B
$6.8B
$3.5B
$6.2B
$5.2B
Total Revenue$28B
Driving Productivity in R&D
More technical effort on growth.- Clear technology goals- Install a disciplined innovation process- Shift business unit resources from
“sustain” to “grow”- Focus on critical few
More patents; more end use patents.
Faster product development cycles.
Market RelevanceTechnology UniquenessCommercialization Feasibility
Continuously validated through life of projectSpecial emphasis on Market Relevance prior to project
initiation
Project Selection and Execution Criteria
Global R&D Accelerates GrowthWuppertal, Germany
1999Taiwan Technical Center
2004
Utsunomiya, Japan
2000
China R&D Center,Shanghai
2005Korea TechnicalCenter, Seoul
(Located at Korean Institute of Science & Technology)
2005
Value Chain
CONSUMER
CornSoyRice
Canola...
Farm & Feed
ChemicalsEnergyLabor
Non-Plant BasedIngredients
Crop
Processing
Farm
and
Feed
Food and Fitness
Fuel and Fiber
Health, Wellness, Flavor & Texture
Biotechnology Offers Significant Growth Potential Throughout the Crop and Value Chain
‘Omics (Geno, Transcripto, Proteo, Metabolo, Pheno) – Informatics - Transformation Enabling Competencies
Chemicals, Enzymes, Microbes
Traits & Germplasm – Cost Effective IntrogressionProcesses & Products
DuPont Businesses in Agriculture and Nutrition
Genetics
Chemistry
HealthScience
Food &Nutrition
Fungicides$0.4B
Pioneer $2.7B
InputProviders Growers Food
Mfg.FoodSales
Grain Processors
The Solae Company $1.1B
QualiconBunge Biotech Alliance
8th Continent$0.3B
Herbicides$1.5B
Insecticides$0.4B
Soy Protein & Lecithin Ingredients
Corn Seed$2.0B
Soy Seed$0.5B
Other Seeds$0.3B
Fungicides$0.4B
Pioneer $2.7B
InputProviders Growers Food
Mfg.FoodSales
Grain Processors
The Solae Company $1.1B
QualiconBunge Biotech Alliance
8th Continent$0.3B
Herbicides$1.5B
Insecticides$0.4B
Soy Protein & Lecithin Ingredients
Corn Seed$2.0B
Soy Seed$0.5B
Other Seeds$0.3B
Gene Gun
Our Crop Genetics Businesses are Leveraging Advancements in Biotech
BiotechBiotech
TraitsTraits
• ↑ productivity• ↑ reliability• ↑ quality
• Pest protection• Stress alleviation• Superior nutrient use • Enhanced nutrient density• Elevated safety• Processor friendly
0
20
40
60
80
100
120
140
160
180
1920 1925 1930 1935 1940 1945 1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005
b=1.52
b = 2.85Open Pollinated
Open Pollinated
b = -0.67b = 1.17
Double Cross Hybrids
Double Cross Hybrids
Single Cross Hybrids
Single Cross Hybrids
1988
1983
19701974
1993
1936
1947
0
20
40
60
80
100
120
140
160
180
1920 1925 1930 1935 1940 1945 1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005
b=1.52
b = 2.85Open Pollinated
Open Pollinated
b = -0.67b = 1.17
Double Cross Hybrids
Double Cross Hybrids
Single Cross Hybrids
Single Cross Hybrids
1988
1983
19701974
1993
1936
1947
Corn YieldsU.S. Average Bu/Ac
Pioneer has been breeding corn since 1926
Pioneer has been breeding Pioneer has been breeding corn since 1926corn since 1926
BreedingBreeding Agrobacterium
Biotech
Biotech
DuPont’s Current Biotechnology Business is Built Chiefly on Licensed and Co-Developed Traits
Unsprayed SprayedUnsprayed Sprayed
Roundup Ready Soybeans & Corn
Benefits …
U.S. Conservation Tillage Adoption
(MM Acres)
Insect Resistant Corn
European Corn Borer Extending the BenefitsFurther Protection
Western
Northern
Mexican
• Simple & flexible weed management
• Reduced pesticide application
• Conservation or no-tillage
Bt Corn Non-Bt Corn
ControlChemicalInsecticide
Biotech TraitProtected
European Corn Borer
SouthwesternCorn Borer
FallArmyworm
Black Cutworm
CornEarworm
Stacking Exponentially
Increases Value
3.5
3
2.5
2
1.5
1
1 = Indexed Value of Single Trait
DOUBLESTACK
TRIPLESTACK
Trait Retail Value Added per Acre
1.59
3.42
• Reduced labor• Reduced energy• Greater resource efficiency• Higher yield• Improved quality• Favorable economic returns
Licensed (Monsanto) Co-Developed (Dow)
(1997)
(1999)
(2006)
(2004)
(2004)
Drought exacerbates weed-disease-insect pressure
and chemical injury
Drought exacerbates weed-disease-insect pressure
and chemical injury
Delivering Now, Positioning for the Future
2006 Regulatory 2006 Regulatory submissionsubmission> $100> $100High Oleic SoyHigh Oleic Soy
2006 Regulatory 2006 Regulatory SubmissionSubmission> $200> $200RynaxypyrRynaxypyr™™ (E2Y) (E2Y)
InsecticideInsecticide
Field trialsField trials> $50> $50Seed Production Seed Production TechnologyTechnology
DevelopmentDevelopment> $100> $100Soy Protein TasteSoy Protein Taste
Field trialsField trials> $25 > $25 Stalk Rot Resistance Stalk Rot Resistance
2006 Regulatory 2006 Regulatory submissionsubmission
2006 Launch2006 Launch
2/3 of 2006 N.A. sales2/3 of 2006 N.A. sales
StatusStatus
AnnualAnnualOpportunityOpportunity
Revenue Revenue $ MM$ MM
> $200> $200OptimumOptimum™™ GATGAT™™SoySoy
> $150> $150HerculexHerculex®® RW + RW + StacksStacks
> $1100> $1100New GeneticsNew Genetics
Herculex insect protection technology by Dow AgroSciences and Pioneer Hi-Bred. Herculex is a registered trademark of Dow AgroSciences LLC.2001* 2002 2003 2004 2005
in Ag & Nutrition
PTOI
$0
$150
$300
$450
$600
$750
$900
2006 Rich Crop Genetics PipelineFarmer Consumer Processor Enabling Technology
Target Markets Phase 3Advanced
Development
Phase 2Early
Development
Phase 1Proof of Concept
Phase 4Pre-Launch
DiscoveryGene/Trait
IdentificationAnthracnose Stalk Rot Resistance
Fungal Disease Resistance
Drought Tolerance
Corn Rootworm Resistance II
Nitrogen Use EfficiencyIncreased Yield IIncreased Yield II
Increased Ethanol Production II
Improved Feed II
Seed Production Technology
Optimum™ GAT™*
Corn Borer Resistance II
Increased Ethanol Production III
Improved Feed III
Corn Rootworm Resistance III
Corn Borer Resistance III
Corn
Glyphosate ALS Tolerant Cotton
Insect Resistant RiceNematode Resistant Cotton
Glyphosate Tolerant Cotton
Insect Resistant Cotton
Glyphosate Tolerant CanolaOthe
r Cro
psSo
ybea
ns
Asian Soybean Rust ResistanceOptimum™ GAT™*
Glyphosate ALS Tolerance II
Cyst Nematode ResistanceIncreased Yield I
Improved Feed I
Insect Resistance
Increased Yield II
Improved Feed IIHigh Oleic + High Stearic Acid Oil
High Oleic Acid OilOmega-3 Oil
Improved FlavorImproved Functionality
* Proprietary Pioneer Glyphosate ALS Tolerant trait * Proprietary Pioneer Glyphosate ALS Tolerant trait
High
LowLow High
Alzheimer’s
MacularDegeneration
Parkinson’s
ProstrateCancer
CognitiveDysfunction
ColonCancer
BreastCancer
InfantNutrition
Enteral/ParentalNutrition
AgedMalnutrition
Joint Health
Inflammation
GlucoseManagement
Cardiovascular
Women’s Health
Weight Management
SCIENTIFIC OPPORTUNITY
MA
RK
ET
OPP
OR
TU
NIT
Y(s
ize
and
grow
th, u
nmet
nee
ds)
FUTURE NOW
Red = Metabolic Syndrome
Nutrition – Opportunities in Nutrition Create a Critical, Major Growth Wave for Next Generation Products
Prevention vs. TreatmentProgression of Symptoms vs. Age
Sym
ptom
s
Cos
t
Years
Prevention
ProgressionDelay
DiseaseManagement
DrugsNutrientsBehavior
NutrientsBehavior
Progression of Symptoms vs. Age
Sym
ptom
s
Cos
t
Years
Prevention
ProgressionDelay
DiseaseManagement
DrugsNutrientsBehavior
NutrientsBehavior
Major Areas of Opportunity
Solae Soy ProteinCurrent Products
Corn Seed
• Isolated soy protein• Meat Emulsifiers• Bars & Shakes• Beverages
Qualified Health Claim“Heart Health”
Taste Improvements
Low Linolenic Soybean Oil• Trans fat free• Eliminates chemical
hydrogenation• Protects HDL level
White Corn • High oleic sunflower• Oil-modified canola• Cardio friendly oils
Solae Soy ProteinFuture
Nutrium• Superior tasting• Improved texture• Consistent health efficacy
• High oleic soy oil• High oleic / high stearate
soy oil• Omega-3 soy oils
Omega-3 Intake of EPA-DHA
(Grams per Day)
0.00.20.40.60.81.0
IdealCurrent
0.90
0.15
Deficiency
"Let thy food be thy medicine and thy
medicine be thy food.”
Hippocrates (460-377 BC)
Taste – Texture – Nutrition – Convenience – Cost - PersonalizationTaste – Texture – Nutrition – Convenience – Cost - Personalization
Also in Solae pipeline:SoleCinaHigh 7SMixes with other
proteinsPeptides
Bio-Based Materials – Bio-PDO™ (1,3 Propanediol, 3G)
Cell Factory
Genome
Economic Production of 3G
E.coli has been programmed to
increase Bio-PDO™production 500-fold
In Nature:two microorganisms convert glucose to 3G stepwise
YeastYeast BacteriumBacterium
Glucose Glycerol 3GStarch
Biotech Application:a single microorganism to effect the conversion
OH OHOH OHGlucose Programmed E. coli
OC
CC
O
OC
OC
OC
CC
O
OC
OHO
CC
COH C
O
OHC
HO
OC
O
OHC
HO
O++1,3-Propanediol
(3G)1,3-Propanediol
(3G)Polypropylene terephthalate
(3GT)Polypropylene terephthalate
(3GT)Terephthalic AcidTerephthalic Acid
3GT (Sorona®)
Superior PropertiesStretch & Recovery
SoftnessVibrant ColorStain ResistanceUV & Chlorine ResistanceEasy Care
Sorona® (3GT) – An Advanced Polymer/Fiber
390 Gal/Acre@ 150 bu/ac grain yield
100 Gal/Acre
18 Gal/Acre
Corn has Significant Potential for Biofuels
Gal
lons
per
Acr
e
The Potential: 30 - 50 Billion GallonsThe Potential: 30 The Potential: 30 -- 50 Billion Gallons50 Billion Gallons
Grain - Endosperm
Stover
Grain - Pericarp
0
200
400
600
800
1000
1200
2005 2010 2015 2020
Ethanol Productivity
0
10
20
30
40
50
60
2005 2010 2015 2020
Corn Acres AvailableMillion Acres
Corn Ethanol ProducedBillion Gallons
30-50B gal
Stover
FeedstockProduction
FeedstockHarvest & Transport
FeedstockConversion
FermentationProduction
Separate,RefineProduceProduce
Chemicals & FuelsChemicals & Fuels
Sustainable Materials, Chemicals & Energy
Integrated Corn Biorefinery Strategy
DuPont Vision
To be the world’s most dynamicscience company, creating
sustainable solutionsessential to a better, safer, healthier
life for people everywhere.
Biotechnology Vision
Unlocking genetic secrets to meet societal needs in a sustainable manner
To Summarize … An Expectation is Set that Makes the Biotechnology Vision Strategically Critical for DuPont
Put Scienceto Work
Power ofOne
DuPont
Go Where the
Growth is
The best way to predict the future is to invent it.--- Peter Drucker
Plant Sciences, an important building block of the future
Agriculture is a major strength of US economy – traditionally $45 B + trade surplusUS is not only a producer of 25% of worlds grain but also a leading technology developerPlant sciences will migrate from food and feed to include fuel, fiber and fitness – tremendous value additionEco Agriculture can be effectively delivered through plant sciences
Several aspects of plant science research are critical
Pest control through geneticsStress resistance to reduce variabilityNutrient and energy assimilation and transformation (N, Water, Light, C)Biomass distribution (architecture)Metabolic partitioning and distributionProcess friendlyEnvironmental and eco safetyHuman safety and nutrition
Traditionally, plant sciences has been a poor cousin of human sciences
Most investments for scientific and technological development by the private sectorTools borrowed from human and microbial sciencesFood availability not a main stream issuePoor appreciation of the potentialNo National Institute of Plant SciencesLittle funding in the competitive granting arena in relationship to health
Global competition in Plant Sciences is intensifying
China has made plant sciences a strategic national prioritySubstantial commitment to Plant Science Centers at Beijing, ShanghaiFocus on rice as a model and commercial cropLarge US, Europe trained personnelState of art facilitiesIntegrated basic and applied research
Expanded investments in plant sciences has broad societal and global impact
Hunger Sustainability and eco enhancementDisease prevention and better managementRural economic development and industrializationNew paradigms for new industries (tech providers, value chain)Global trade harmonization
To accelerate returns on investments, a number of breakthroughs are neededTechnology (current timeframe: 8-15 years)- molecular understanding of key physiological processes @ cell, tissue, organism and ecosystems- early identification of fruitful pursuits- transparent, science-based regulatory processesSignificant private/public sector interactionGreater participation of academic community in Translation researchNovel ways of approaching the research component of training and educationSeed money for early stage commercial workPeople – leadership and execution capabilities in multi-disciplinary environmentSocial Acceptance and Freedom to practice