FlexFactory® Defining the future of biomanufacturing Daniel Bauer Xcellerex, Inc. June 2011 1 Company Facts 2 • Founded 2003 as a Disposable Flow Path focused CMO • Facility: 100,000 sq. ft. laboratory, GMP mfg and office • 140 employees • Global sales and service network including EU, APAC -based operations • 8 INDs filed based FlexFactory Platform • Over 150 XDR bioreactors, 350 XDM mixers deployed in the last three years • Five Operational FlexFactory platform • Recent press releases by RPharm, Gallus and Diosynth • 1st Commercial Product Manufactured in a Disposable Bioreactor • GROW CELLS DAILY Traditional Stainless Steel Facilities – Time and Costs Traditional Stainless Steel Facilities 3 • Prohibitive cost to build new mfg. capacity… $1500-2,000/sq ft • $200-$400M total installed capital cost • 4 year timeline for new capacity • Risk of committing capital during early highrisk stage • Expensive to operate and modify • Limited long-term asset utilization • Low terminal value (even lower in today’s disposable environment) • Many are obsolete before they are validated Barriers to biotech success Mismatch between legacy mfg. model and future industry needs Conventional approaches 4 • Large, single-product plants • • Inflexible, fixed pipe Built for blockbusters New future requires: • • Low cost & flexible • Local production Validated product comparability The Building Wave of Opportunity… Biosimilars and Biobetters Effectively creating a bio arms race • Driving the rush to low cost, high quality manufacturing • Get in Front Ride the Wave… • Or be Crushed by the Wave 5 Getting drugs to market – 15% probability, 7 yrs, $1B Cell Line Gene/Target development Identification Chips Process Drug(s) Pre-Clinical Lead drug Development Tox. studies discovery Chemistry Identification FDA Phase 3 3 Commercial Phase 2a,Phase 2b 3 Human Drug 1, Testing Phase FDA Approval Approval Clinical Trials sales/ Clinical trials clinical trials clinical trials launch clinical trialsdrugMarket Preclinical Market CDU SNP marketingLaunch Xcellerex Focus Faster, better, cheaper drug development and manufacturing Mfg. Services produce FlexFactory® Transplant transferable GMP clinical material in facilities FlexFactory® 6 De-Risked Rapid Plant Licsensure Xcellerex Strategic Rationale – QbD FlexFactory® Dramatic improvements in deployment speed, quality, flexibility and overall economics can only be achieved by taking a fresh, holistic comprehensive QbD approach to biomanufacturing Facility QbD Equipment QbD 7 Services/ Training QbD Regulatory QbD Plant Footprint Reduction Just disposables vs. FlexFactory for 4 x 2000L lines, cell vial to purified API bulk MEDIA LOCKERS/ GOWNING U.S.P. BUFFER EQUIP. PREP U.S.P. LABS LOCKERS/ GOWNING FlexFactory™ PROCESSING SUITE C.I.P./ S.I.P. OFFICES D.S.P. CLEAN UTILITIES 8 WASH LABS D.S.P. PLANT UTILITIES WAREHOUSE OFFICES WAREHOUSE PLANT UTILITIES 9 10 2000L GMP FlexFactory #2 at Xcellerex 11 XDR GMP Single-Use Bioreactor Breakthroughs in Biomanufacturing from Xcellerex XDR-50 XDR-200 XDR-500 All XDRs have a 5:1 turn down ratio (Each can operate at 20% working volume) 12 XDR-5000 in development XDR-1000 XDR-2000 CEMs Replace Clean Rooms • Reduces mfg plant footprint 35% • Decreases gowning, reduces labor 30% • Protects product from greatest source of environmental contamination (the operator) 13 CEMs are Cleanrooms Eliminating the need for Wall Segregation 14 CEM Operational Benefits 15 • Segregation of each unit operation from the general environment, • CEMs have independent (from room) fresh air supply, independent of the room supply is a major segregation factor and virus reduction protection design feature for prevention of cross contamination across 15-20 logs of virus clearance or across pre and post virus inactivation, • In excursion event management, segregation allows protection of remaining unit operations from excursion operation, • CEMs provide spill containment, prevent exposure to other unit ops in pressurized CEMs • CEMs can be decontaminated in situ • Requirement to turn around only one unit op at a time versus multiple unit ops in large clean rooms CEM Operational Benefits 16 • Data historization of environmental conditions real time with process data, • Ability to operate all process operations in one larger manufacturing space, • Reduction of gowning requirements in a manufacturing facility, • Elimination of multiple clean rooms for process operations, • Reduction of airlocks for material, personnel and product flow strategies, • Increase in operator efficiency with increased focus on process operations, CEM Operational Benefits 17 • Single pass air supply and exhaust, • HEPA-filtered supply air, • HEPA-filtered exhaust air, • Responsive control of environmental conditions (differential pressure, air changes), • CEMs are cleaned using standard clean room sanitization agents, and can be further decontaminated with chlorine dioxide if needed for more pathogenic bugs Single-Use Unit Operations • Eliminates CIP/SIP operations and infrastructure • Reduced labor • Reduced carbon footprint • Improved safety • Enhanced flexibility • An “open” platform 18 Integrated real time automation • Reduces operator hands-on operations • Provides mechanism for automated QA, data mining • Real-time capture of process and human deviation 19 The Xcellerex QbD Solution FlexFactory® Biomanufacturing Platform • Disposables • CEM - Operators removed from clean room • On-line eFactory quality assurance tracks compliance 20 Risk Reduction Quality eliminate cross contamination The Xcellerex QbD Solution FlexFactory® Biomanufacturing Platform • 6-12 months vs. • Enables more informed investment decisions • Faster product changeovers • Rapid expansion of mfg capacity 21 Risk Reduction Speed 2-5 years for new capacity The Xcellerex QbD Solution FlexFactory® Biomanufacturing Platform • Compact • Modular • Portable • Multiple product manufacturing • Ability to TransPlant™ to customer • Avoid long-term CMO lock-up 22 Flexibility Risk Reduction clean room architecture The Xcellerex QbD Solution FlexFactory® Biomanufacturing Platform • Lower capital cost Risk Reduction (50%-75%) • Lower operating costs (20%) • Higher asset utilization • Shorter timeline to product revenue • Improved environmental impact 23 Economics FlexFactory designs underway for 3rd parties Courtesy Parsons Engineering Facilities Modular Cleanrooms 25 Manufacturing Floor 4 x 2000L Scale FlexFactory and Facility 4 x 2000L Greenfield • Capital: Facility +Process Equipment +Install & Qualify = 40 – 45 MM • Schedule: Design Agreement to GMP Production ~ 18 months Renovation • Capital: Facility +Process Equipment + Install & Qualify = 14 – 20 MM • Schedule: Design Agreement to GMP Production ~ 12 months 27 Unique Business Structure Leverages Customer Adoption FlexFactory Equipment Platform Services Platform Integration & Process Know-How 28 FlexFactory Services • FlexFactory® Services portfolio adds speed, security to new deployments: • Process development and optimization • Bridge GMP manufacturing for clinical trials • Validation and training • TransPlant™ to Customer site 29 Bringing it all together A Typical FlexFactory® Deployment AT XCELLEREX Validate/Operate FlexFactory Line Build FlexFactory Line Train Client Team TransPlant AT CLIENT Client builds facility at their own pace (with Xcellerex design help) 30 Compress deployment time Reduce risk/delay critical decisions Customer control Restart FlexFactory FlexFactory® Regulatory Milestones 31 Dec. 2002 Previous owner filed CTX in UK for mAb Dec. 2003 Type C meeting with FDA – strong support Apr. 2004 Presentation to FDA Advisory Committee for Pharm. Sci. Jan. 2007 Client filed IND Jan. 2007 Training seminar for CDER DMPQ May 2007 Seminar for NAFDAC (Nigeria) June 2007 Seminar for WHO IVR Oct. 2007 Training seminar for CBER DMPQ Nov. 2008 2nd client filed IND amendment May 2008 EMEA GMP Inspectorate Feedback Jan. 2009 Client filed IND for their second product Feb. 2009 Training seminar for Boston FDA compliance inspectors Nov. 2009 Xcellerex filed IND for Yellow Fever inactivated vaccine Dec. 2009 Mexican FDA COFEPRIS inspection for swine flu H1N1 Mar 2010 EMA QP Certification for Phase 3 mfg. underway Mar 2011 Planned start of Phase 3 mfg for EU client 7 US INDs filed, 1 UK filing 31 Advantages of FlexFactory® 32 • 50% reduced capital • 30% reduction in mfg. labor, gowning costs, HVAC • 70% reduced facility build out time • 30% reduction in plant footprint • 25% reduction in QA • Reduced carbon footprint • Simultaneous multi-product manufacturing and flexibility THANK YOU! 170 Locke Drive, Marlborough, Massachusetts 01752 www.xcellerex.com 1.866.Xcellerex 33