simcox 2005

Not Just Products. Partners.

FMC BioPolymer

CDMA September 29, 2005

Building New Growth Platforms from Existing Franchises

Dr. P. David Simcox

General Manager, Pharmaceutical and Personal CareFMC BioPolymer

September 29, 2005


FMC BioPolymer


FMC BioPolymer Serves Specialty Markets

• Pharmaceutical Excipients• Food Ingredients• Personal Care• Industrial Uses

Biopolymers

• Microcrystalline Cellulose (MCC)• Carrageenan• Alginates


FMC BioPolymer


FMC BioPolymer - A Market Leader• MCC

– Tablet binders and colloidal suspension aids• Carrageenan

– Toothpaste and food texture aids• Alginates

– Dental impressions and anti-reflux

Targeted to Drive Growth in FMC

• Excellent franchises • Maturing technologies


FMC BioPolymer


Creating Significant Growth in the FMC

• Long standing, premium player in excipients • Staffed to serve the global industry through sales and

technical service• Limited opportunities for breakthrough products• Engine to provide funding

How to Drive Innovation and Change?

• New organization(s)• Different mission


FMC BioPolymer


How to Build on the Pharmaceutical Franchise?

• Engaged the management team• Developed case histories of market leaders in specialty

chemicals– Examples of how others addressed their situations– Were they successful or not – Expanded thinking

• Applied these cases to FMC’s situation– Examined FMC core competencies– Is there a similar customer or market demand in pharmaceuticals?– How would it look if we did something similar?


FMC BioPolymer


Examples and Options Examined

• Horizontal expansion– Acquire or develop product lines– Market or distribute products of other suppliers

• Vertical expansion– Contract R&D– Contract manufacturing– Manage customer formulation production– Produce dose forms


FMC BioPolymer


Subsequent Steps

• Created Venture Manager position• Identified several opportunities

– Leverage existing know-how• Ranked these opportunities vs existing development

programs• Used expert forums to test validity of the product and

business concepts


FMC BioPolymer


Licensing• Leverage FMC knowledge of solid oral dosage forms• Films as a growing area of interest• Looked for films and oral dose forms• BioProgress – UK technology firm with novel technology• Licensed NRobe™ dose form systems• Formed Magenta, a unit for oral dose forms

NRobe• Single step to wrap drug excipient powder in films• Low compression• Streamline formulation development• Continuous manufacturing process• Branding and anti-counterfeiting


FMC BioPolymer


NRobe™

Pilot EquipmentNRobe Tablets


FMC BioPolymer


Internal Discovery

• Soft Capsules dose forms• Old technology in use• Market issues with gelatin• Discovered and developed two proprietary polymer systems

Soft Capsules

• Hydrocolloid / carrageenan drop-in replacement for gelatin• Alginate forms an enteric shell

– New process– High throughput


FMC BioPolymer


Capsules

AlginatesHydrocolloids


FMC BioPolymer


Acquisitions• Identified growing demand for biomaterials for

pharmaceutical and medical devices • FMC expertise in biopolymers• Acquired Norsk Hydro Pronova Biomedical unit• Licensed in additional technology

NovaMatrix

• Biocompatible natural polymers• Broad functionality• Manufacturing and R&D in Norway• European and NA commercial development• Serving biotechnology, medical device, pharmaceuticals,

academic institutions


FMC BioPolymer


NovaMatrix


FMC BioPolymer


Future Opportunities

• Recognize that this is a game of “odds”

• Generate the next opportunities

• Initial examples showed it is possible

• Changing the organizational culture– Ideas, energy coming from the entire organization

– Leveraging new technology platforms

– Project management using Stagegate process

– Taking more risks

– Creating opportunities to invest


FMC BioPolymer


Providing a Pipeline of Opportunities

Years

Stage

Current

Near-Term

Mid-Term

Long-Term

1 - 3 3 - 5 > 5


FMC BioPolymer


Organizational Issues

• Dedicated teams

• Clear milestones

• Differentially manage

• Role of the base business

• Resources from broader organization

• Cross fertilization


FMC BioPolymer


Lessons Learned

• Franchise provides access

• Can branch out and move downstream

• No one model fits all

• Face tough choices on resource allocation

• Need an agreement on financing

• Managing milestones

• Dedicated and driven people

• Multiple plays, but not too many

• Focus, focus, focus

• Keep feeding the Tiger


FMC BioPolymer


A Manager’s Questions

• Do you have the skill base to accomplish your goals?

• Is the opportunity bigger than a breadbasket?

• How disruptive is it?

• What is your elevator speech?

• Do your people think about it in the shower?

• How do you plan on retaining your folks over the long term?


FMC BioPolymer


Building New Growth Platforms from Existing Franchises

Dr. P. David Simcox

simcox 2005

Business