1. FMC BioPolymer
Building New Growth Platforms
from Existing Franchises
Dr. P. David Simcox
General Manager, Pharmaceutical and Personal Care
FMC BioPolymer
September 29, 2005
CDMA September 29, 2005
Not Just Products. Partners.

2. FMC BioPolymer
FMC BioPolymer Serves Specialty Markets
• Pharmaceutical Excipients
• Food Ingredients
• Personal Care
• Industrial Uses
Biopolymers
• Microcrystalline Cellulose (MCC)
• Carrageenan
• Alginates
CDMA September 29, 2005
Not Just Products. Partners.

3. 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
CDMA September 29, 2005
Not Just Products. Partners.

4. 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
CDMA September 29, 2005
Not Just Products. Partners.

5. 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?
CDMA September 29, 2005
Not Just Products. Partners.

6. 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
CDMA September 29, 2005
Not Just Products. Partners.

7. 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
CDMA September 29, 2005
Not Just Products. Partners.

8. 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
CDMA September 29, 2005
Not Just Products. Partners.

9. FMC BioPolymer
NRobe™
NRobe Tablets Pilot Equipment
CDMA September 29, 2005
Not Just Products. Partners.

10. 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
CDMA September 29, 2005
Not Just Products. Partners.

11. FMC BioPolymer
Capsules
Hydrocolloids Alginates
CDMA September 29, 2005
Not Just Products. Partners.

12. 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
CDMA September 29, 2005
Not Just Products. Partners.

13. FMC BioPolymer
NovaMatrix
CDMA September 29, 2005
Not Just Products. Partners.

14. 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
CDMA September 29, 2005
Not Just Products. Partners.

15. FMC BioPolymer
Providing a Pipeline of Opportunities
Long-Term
Stage
Mid-Term
Near-Term
Current
1-3 3-5 >5
Years
CDMA September 29, 2005
Not Just Products. Partners.

16. FMC BioPolymer
Organizational Issues
• Dedicated teams
• Clear milestones
• Differentially manage
• Role of the base business
• Resources from broader organization
• Cross fertilization
CDMA September 29, 2005
Not Just Products. Partners.

17. 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
CDMA September 29, 2005
Not Just Products. Partners.

18. 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?
CDMA September 29, 2005
Not Just Products. Partners.

19. FMC BioPolymer
Building New Growth Platforms
from Existing Franchises
Dr. P. David Simcox
CDMA September 29, 2005
Not Just Products. Partners.