Innovation in Agricultural R&D: Targets, Priorities and Delivery CGIAR ADE-PSC Workshop November 11th 2009 Dr Mike Bushell Principal Scientific Advisor Syngenta Brief and themes ● The Research Process in Syngenta R&D - Crop Protection Chemicals - New crop varieties ● Organising for success - How to agree research targets and priorities ● Innovation Culture - Open Innovation - Importance of Partnerships - Research vs Development mindset 2 Research Target Profile ● Customer Need ● At the outset, could be pretty simple and high level... - E.g. Broad spectrum cereal fungicide ● Knowledge of essential and desirable characteristics ● Knowledge of current market ($$size by country – key crops and diseases, current offers, competition) ● View of market trends and changes 10years ahead - 3 Market size for new active ingredient >>$100m Time to market, 10+ years; cost $250m + capital Cost depends on complexity, crop, country, pest spectrum New formulation project are a different ballpark...time and cost Disease, Insect, Weed Control Research Targets Cereals Fruit &Veg Field crops Non-selective Corn selective Cereals selective Soya Bean selective Rice selective Sucking pests Nematodes Soil pests Lepidoptera 4 Crop protection compounds: the long road to market 30 Develop 100’000 compounds 1-2 Evaluate Profile 5000 compounds Discover Time 5 Lead Generation ● Agreed target profile will have additional critical success factors - E.g. Fish safety ● How to find best starting points? - Screening data searches (in house databases) - Literature • Competitor Patents • Natural Product inspired - Rational Design, e.g. based on a biochemical hypothesis ● Find or make a compound of significant interest – activity on target pests, interesting mode of action, space for innovation (IP) - Chemistry, Biology, Biosciences - Typically mg to gram amounts 6 7 In vivo screening 8 Crop protection compounds: a long road to market Research Lead Optimisation Lead Generation Develop 100’000 compounds 1-2 Evaluate 30 Profile Discover Potential for collaborations at every stage of the process 5000 compounds Time 9 Optimisation Project ● Multidisciplinary project teams – large resources ● Portfolio process operates - Dedicated portfolio leader and planners Regular review, annual portfolio review Priority setting at the sub portfolio level Flexible management of resources ● Strong linkage to the development and commercial functions in centre and in key regions (APAC, NAFTA etc) ● Field trial programme on best analogues ● Increasing clarity on properties of the series and full profile of leading candidates – activity, tox, ecotox ● Commercial potential 10 Crop protection compounds: a long road to market Research Develop 100’000 compounds 1-2 Development Evaluate 30 Profile Discover 5000 compounds Stage Gate Process Time 11 Candidate Selection and Development Decision ● What do I have to know to progress into development? • Does it work? • Can we make it? • Is it ours? • Is it safe? • Can we sell it? ● Simple questions, but with multiple levels of details ● Performance in field trials, competitive position, manufacturing routes and ballpark costs, complete review of all IP on candidate, processes and formulations, biochemical mode of action, mammalian and environmental safety profile, registration risks, and more.... ● Full business case, costs, timelines, assumptions, financial measures 12 Development stage ● Development needs a very different mindset to Research ● Always change Project Leader by this stage - Engineered handover – full time PL ● Complexity requires planning at a high level, 5-7 years to sales • Specialist functions own and deliver their own part • Financial case depends on speed to market - Critical path analyses ● Networks that the PL needs are different to mobilise resources – downstream, techno-commercial, regional and in key national countries 13 The Innovation Process Numerous, partially developed ideas Portfolio Management External Technology Decision BLUE SKY OPPORTUNITY IDENTIFICATION Stage 1 14 OPTIMISATION Stage 2 Handover DEVELOPMENT Stage 3 External Innovation is Critical for Success “External Collaborations plays a key role in nearly 50% of P&Gs products… Our vision is simple. We want P&G to be known as the company that collaborates – inside and out – better than any other company in the world” A.G. Lafley, CEO OF P&G 15 “Not all smart people work for you” Bill Joy Sun Microsystems “We intend to make our internal capability even more effective by tapping into the best scientific capability outside of our walls wherever it exists.” Jeff Kindler, Chairman and CEO Pfizer 2007 Henry Chesbrough, Open Innovation 2003 16 Benefits of collaborations ● Soft benefits - Window on external technology • Technology foresight - Opportunity for professional development of our science leaders • interaction with top academics and institutions • involvement with frontier research areas • breadth and interest in science • broader horizons – increased Innovation potential - Relationship building • recruitment • company image • consultancy and advocacy - Contribution to building the Global knowledge economy • Encouraging science in our local home bases 17 Benefits of Collaborations (2) ● Harder business benefits - Access to technology quickly without building internal capability • speed and flexibility • cost – revenue and/or capital • quality • evaluate new technologies before bringing in house - Technology acquisition for product development • new lead areas for Crop Protection • new traits for GM plants or traditional breeding - Product support work • agronomy, weed, disease and pest resistance studies • part of regulatory submission or technical marketing story 18 Collaborations come in all sizes ● Formulation Robot - the culmination of a 5 year project to design and build this unique facility ● Bosch – IP sharing for mutual advantage 19 University Innovation Centres - Innovation Centres • Microbiology and natural products (HBERC, Wuhan) • Sensors (Manchester) • Polymer Chemistry (Warwick) • Synthetic Chemistry (SIOC) • Systems Biology (Imperial) • Sugar Cane (Queensland) 20 Biofuels: improving efficiency Sugar Cane ● Soil conservation (minimal till, less compression) ● Efficiency (improved mechanization, reduce costs, integrated SC) ● Reduces CO2 ● Launch 2011 Corn amylase ● Breakthrough technology ● Third successful trial ● 8-15¢/gallon benefit ● Awaiting USDA approval 21 Increasingly complex farmer needs beyond single ag inputs Old Must-have Customer needs ● Yield potential New Importance low (seeds breeding) ● Biotic stress control (weeds, insects, diseases) high Ag input technology: single seeds, chemicals benefits Differentiators ● Abiotic stress control (eg heat, drought) ● Use efficiency (eg nitrogen use) ● Farm profitability (eg labor, cost flexibility) ● Convenience, simplicity “Farmer of the future”: focus on profitable yield realization; multiple parameters (eg no-till) Future needs ● Sustainability, safety 22 (eg carbon, residues) ● Quality (eg protein, healthy oils) Value chain/consumer: increasing influence on supply chain, farmers 1. Corn: leading drought tolerance technology, 2011 launch ● Productivity & cost advantages - ~10% more yield - ~50% less water ● Stabilize yields ● Reduce moisture needs on existing cropland - Less yield loss in dry years - Less irrigation in normal years ● Increase productivity from marginal cropland 23 Pending regulatory approvals, not meant to be an offer for sale. 2. Moddus: water efficiency increases yield and quality 10% less water and 25% more yield compared to competition (not the control!) Source: Prof. S. Schubert, University of Giessen Germany 2004 Australia (2006): Avg. 13% increased yields in stressed environments in irrigated areas; 7% in rainfed areas 24 Source: Charts taken from US Sales Kit pack for Moddus and Germany Research Report 3. Invinsa: water and heat stress management Invinsa Control Invinsa Invinsa V12 UTC Oil Untreated Control Medium N Invinsa Low N Improved N Use Efficiency Medium N Low N Untreated Control Kansas State University-2007 25 Customer benefit : better germination, stronger stand establishment Thiram (Check) Fungicide seed treatment controlling of soil-borne diseases that affect the germinating seedling 26 Crop enhancement : chemicals and genetics working together Evidence from the field Growers notice : • Healthier, more vigorous plants without pest pressure • Translates into higher yields Evidence from the lab • Healthier, more vigorous maize seedlings treated with Thiamethoxam (Cruiser®) • No pests, controlled environment, sterile soil.... Untreated 27 Cruiser® treated Agricultural technology : for a sustainable future ● Increasing yield - high yielding seeds stress tolerance e.g. drought crop enhancement seed enhancement (priming/pelleting etc) fertilisers mechanisation incl. irrigation, protected crops ● Protecting yield - weed and pest control agents seed treatment ● Improving yield quality - 28 = customer benefit delivered in or on the seed oil composition of oilseeds taste and nutrition of fruit/vegetables baking/brewing quality of cereals Biofuel-enabled crops Our core, moving toward Integrated Crop strategies (ICS) Takes yields to a new level Protects yield potential Reduces loss Sets yield potential Crop Care Pest Control Seeds Basic growing conditions* 29 * Soil fertility, micro-climate, water availability Crop Enhancement Plant Potential Flavour and productivity in fruit and vegetables Health attributes Disease / virus resistance Flavor Consumer traits Yield Color Plant habit Texture Stress tolerance Firmness Long shelf life Post-harvest traits 30 Grower traits Delivering flavour to the customer Understand the consumer Understand the metabolites Sucrose Understand the genetics Raffinose Trehalose Galactose Maltose Arabinose Glucose Starch Threonate G6P Mannitol Ribulose-5P F6P Cysteine Ascorbate Fructose Sorbitol O-acetylserine Inositol Leucine Glycine 3-PGA Serine Glycerate Glycerol Glycerol-3P Tryptophan Valine + PEP + Shikimate Phenylalanine Isoleucine Asparagine alanine Alanine Aspartate Pyruvate OAA Citrate Glutamine Pyroglutamate Isocitrate Methionine Homoserine Tyrosine Quinate Malate -ketoglutarate Glutamate GABA Threonine Fumarate Proline Arginine Putrescine Succinate Ornithine Consumer Science Metabolomics Genomics Correlations that associate QTLs/genes with consumer-desirable traits Confidence in product attractiveness from the start 31 Sensory analysis: compare varieties across different attributes Var #3 Var #2 Var #1 Control What causes the difference in sweetness, is it just sugar? 32 Flavour dissection sets targets for trait discovery Genetically mapped populations Metabolite fingerprints highlight effects between genetic regions Sucrose QTL or candidate genes discovered Raffinose Trehalose Galactose Maltose Arabinose Glucose Starch Threonate G6P Mannitol Ribulose-5P F6P Cysteine Ascorbate Fructose Sorbitol O-acetylserine Inositol Leucine Glycine 3-PGA Serine Glycerate Glycerol Glycerol-3P Tryptophan Valine PEP Shikimate Phenylalanine Isoleucine Asparagine alanine Alanine Aspartate Pyruvate OAA Tyrosine Quinate Citrate Glutamine Pyroglutamate Isocitrate Methionine Homoserine Malate -ketoglutarate Glutamate GABA Threonine Fumarate Proline Arginine Putrescine Succinate Ornithine Metabolite QTL* Sucrose Raffinose Trehalose Galactose Maltose Arabinose Glucose Starch Threonate G6P Mannitol Ribulose-5P F6P Cysteine Ascorbate Fructose Sorbitol O-acetylserine Inositol Leucine Glycine 3-PGA Serine Glycerate Glycerol Glycerol-3P Tryptophan Valine PEP Shikimate Phenylalanine Isoleucine Asparagine alanine Aspartate Methionine Homoserine Alanine Pyruvate OAA Tyrosine Quinate Citrate Glutamine Pyroglutamate Isocitrate Malate -ketoglutarate Glutamate GABA Threonine Fumarate Proline Arginine Putrescine Succinate Ornithine 33 Targeted assembly possible with genome wide markers Evolving technology = growing understanding = more potential Past Current Future • Rice / Arabidopsis Genome • Multiple Plant Genomes • Expression Profiling • Public Data sets • Genomes of target crops • Literature Mining • QTL / Genetic Maps • Metabolite Profiling • Public Collaborations • Biochemical/Genetic Pathways • Next-Gen Sequencing; HD Genotyping • Reverse Genetics • Forward Genetics • Genome-wide analysis • Managed stress environments • Environments x Chemicals x Genetics • Precision phenotyping • Improved data integration and validation One Dimensional Analysis • By single data type • Single crop/single trait application • Monogenic traits • Markers for selection • Network Analysis and Data Modeling Two Dimensional Analysis • Epigenetics • Integrating and overlapping multiple data types Multi Dimensional Analysis • Cross-crop data mining • Understanding mechanisms • Native traits and GM traits synergy • Exploiting diversity • Multiple genes/QTLs 34 • Systems approaches Integrating technologies for customer benefit Innovative crop protection chemistry and Seed Care Biotechnology expertise 35 Precision breeding and plant genomics Collaborations are Important and Fun! ● There is a lot of exciting science out there ● We need to be internally focussed on delivery, but outward looking to seek useful opportunities ● Partnering with leading academic centres and companies and in-licensing of novel compounds and innovative products and technologies ● Partnerships that complement our in-house capabilities and play a key role in strengthening our portfolio Building Value through Partnerships Driving Growth through Innovation 36 Our company 37