Driving Value through Innovation in Biotech Manufacturing. Agenda

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Driving Value through Innovation in Biotech Manufacturing Jorg Thommes, PhD Senior Vice President Operations Technology and Innovation Biogen 7 October 2015 Agenda Biopharma Legacy, Trends, & Challenges Maximizing Asset Productivity Creating Value Through Innovation Conventional technology improvements Disruptive innovation Conclusions 1

Operations as a Value Driver in a Maturing Industry Pharmaceutical operations can advance from an outsourceable necessary evil to a true value creator in the biopharmaceutical industry by Process Sciences: Huge value has been captured from productivity increases in drug substance processing based on conventional technologies Engineering: advanced facility design and technology alignment improves facility utilization as a major source of value Sustainable Compliance: reliability of supply based on highly efficient and robust quality systems is an often underestimated value generator Process Sciences Have Captured Value Throughout the History of Biopharmaceuticals Titers have increased dramatically, enabling operations at a smaller scale Single-use technologies are growing rapidly Flexible manufacturing systems provide a low cost option for early clinical manufacturing Evolution of Manufacturing Technologies Dedicated Single Product Facilities FDA Guidance on Multi-Prod mfg Multi- Product Facilities Flexible manufacturing Intro of 20kl large scale 6 pack plants Intro of Disposable Technologies Emerging Contract Manufacturers Next Generation Bioprocessing 1976 1980 1985 1990 1995 2000 2005 2010 2015 Titers 0.01 g/l 0.5 g/l 5 g/l 10 g/l << $10,000/g $1000/g $300/g $100/g $50/g Serum-based processes Chemically Defined Media, High Titer processes Disruption? Low efficiency purification processes Platform Purification Processes (20-30% recovery) (>50% recovery) 2

Cell Culture Process Productivity is Driven by Efficiency (Cell Engineering) and Intensity (Process Engineering) Cell Culture Productivity Increases Have Delivered Huge Value Growth Rate of 0.11 / year Doubling Time of 6.3 years Steady Progress made on Process Productivity Improved Raw Material Control and Safety Reduced Development Times and Required Resources 3

Process Sciences Have Transformed Bulk Manufacturing Output 94% Reduction in $/gram of drug substance through scale and process productivity $100/gram of monoclonal readily achieved Asset Utilization Impacts Cost of Goods Process productivity alone does not assure COGS reduction Increased facility utilization immediately improves COGS 4

Engineering Creates Value Through Flexible Manufacturing Assets Key points for maximized asset utilization Manufacturing platforms: seamless process transfer between sites Robust scale-up: seamless transfer between scales Minimized changeover between campaigns and between batches Match process step duration, avoid single step bottlenecks Engineering's key contributions to asset utilization Technology alignment Equipment modeling for understanding of scale-effects Facility and process analytics Reliability centered maintenance for minimal downtime (shut downs, failure) Maximizing Utilization Through a Flexible Hybrid Model Future Factory advantages: Cost Effective for small quantities (clinical ) Portable, lower capital investment, reduced footprint, etc. Stainless Steel advantages: Cost effective for high volume and throughput Relatively Low variable costs Sunk costs for many companies Our Hybrid Model: Optimizing existing network and new technologies Future Factory -- for early phase production and to accommodate demand variability 2K Scale ideal for high titer late stage clinical and commercial production 15K Scale ideal for high demand products 5

The Role of Innovation in Biogen s Hybrid MFG Network 6

Creating Value Through Innovation in Biomanufacturing Improving Existing MFG Technology in the Near Term Through Sustaining Innovation 7

Modeling Provides Crucial Insights to Direct Innovation Engineering Sciences provides: Computational Fluid Dynamics Modeling Process Modeling Dynamic Facility Modeling Statistical Modeling Facility Analytics Drive Strategic Improvement Programs 8

Where Can Conventional Process Technology Be Improved? Large Scale MFG Design Considerations BIOGEN S TEN METRIC TON ANTIBODY PRODUCTION CELL Modular design, optimized for throughput Build capacity in units of production cells; Deployment in phases to reduce investment risk Faster delivery post initial investment Each cell designed for up to 15 g/l and high throughput 9

Quantitative Understanding of Scale Effects Enables Flexible Process Transfer for Maximum Asset Utilization Engineering Creates Value Through Process Control 10

Process Control Vision Process Control For Real Time Release 11

Flexible Volume Facility Expands Asset Utilization Operating a Disposable Process as a Closed System in General Pharmaceutical Manufacturing Space (GPMS) Closed System: Prevents ingress or egress of adventitious contaminants into the process stream Closed system achieved in GPMS through several methods Vendor qualified closed system components. Ex: gamma irradiated bags and tube sets using Readymate connectors or sterile welding. Open connections that were followed by appropriate cleaning or sanitization. Systems assembled and autoclaved or connections made in a class 100 hood. Closed system verification was performed to demonstrate closed system approach including effectiveness of connected unit operations 12

Closed System Verification Used proven growth promoting media (yeastolate) Simulation included all major processing steps including additions such as nutrient feed and buffers. Each unit op was evaluated for connection types and each type (Readymate, triclamp, etc) was used at least once. Number and type were evaluated and represented but was not required to be worst case. Sampled at specified locations and/or intervals and tested for growth promotion and microorganisms. Acceptance criteria- Upstream = No growth, Purification <100 CFU per 100 ml Results of Closed System Verification Systems Challenged Inoc (wave bag) All SUBs SUM to SUM (Single Use Mixer) transfers Chrom Skid Filtration (PODs) UF/DF Bulk fill All systems passed acceptance criteria 13

Results of Process Verification Do We Need Disruptive Innovation in Biomanufacturing? 14

Summary Question: Can we continue to drive the same value by doing more of the same? Suggestion: Manufacturing infrastructure investments may require new thinking Observation: productivity increases have allowed our industry to add flexible capacity to its rigid network Suggestion: we need innovation in operations and process technology to support the highest possible capacity utilization Conclusion: Existing stainless infrastructure remains a valued asset. A hybrid approach will become the dominant design at Biogen Suggestion: Even within conventional technology there is room for significant productivity improvements. Advanced process and facility analytics lead the way to targeted innovation. The big question: will we need disruptive innovation in Bioprocess technology? 15