Green Biotechnology
Peter Oakley
Member of the Board of Executive Directors
1 | Biotechnology & Markets
3 | Research Platform
4 | Business Model
5 | Pipeline
Green
Biotech Biotechnology for Agricultural Applications
White
Biotech Biotechnology for Industrial Applications
Red
Biotech Biotechnology for Pharma Applications
3
Green Biotechnology
Definitions
4
Green Biotechnology
1st, 2nd and 3rd Generation of Plant Biotech Traits
Examples:
• Cold tolerance
Output Traits • Drought tolerance
(Agronomic Traits) • Salinity tolerance
• Yield increase
• Amino acids
Output Traits • Vitamins
(Specialty Chemicals) • Fatty acids
• Insect resistance
• Herbicide tolerance
Input Traits • Nematode resistance
• Fungi resistance
2005 2025
1st Generation 2nd Generation 3rd Generation
5
Green Biotechnology
Estimated Market Size of the Segments
Market
In billion USD Market* 1st Important
Potential*
2004 Launches
≥ 2025
Input Traits
1.6 3–8 ü
Output Traits
(Specialty Chemicals)
<1 >10 ~5 years
Output Traits
(Agronomic Traits)
<1 >10 ~8 years
Output Traits
(Bulk Chemicals)
<1 5 – 10 ~10 years
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1 | Biotechnology & Markets
3 | Research Platform
4 | Business Model
5 | Pipeline
BASF Focus
Output Traits
(Bulk Chemicals)
Output Traits
Output Traits
(Agronomic Traits)
Input Traits
2005 2025
1st Generation 2nd Generation 3rd Generation
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1st Generation of Input Traits
Herbicide Tolerance and Insect Resistance
Key learnings
• Monsanto introduced the first herbicide-tolerant soybean variety in 1996
and launched a corn borer-resistant corn variety in 1997
• Many companies paid an expensive price to enter the seed business as
‘me-too’ players loosing focus from their traditional core competences
• Monsanto continues to lead the market for input traits
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Focus on 2nd and 3rd Generation
Input Traits
• Just a few market segments offer critical mass and
manageable risk to develop input traits that compete with
agrochemicals
• BASF pursues only selective investments on input traits
Output Traits
• Output traits offer great room for innovation and considerable
market potential
• Today competition takes place not in the seed market but in
the laboratories and patent offices
• This technology is fully complementary to innovative
agrochemicals
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R&D Spending on Output Traits
In million USD
80
60
40
20
0
A BASF B C
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1 | Biotechnology & Markets
3 | Research Platform
4 | Business Model
5 | Pipeline
• A cell is a complex
network of thousands
M1 of chemical reactions
E1 • In these reactions
thousands of enzymes
act as catalysts in the
G3 M2 M5 production of chemical
substances
E3 (metabolites)
E2 • The genes are respon-
M3 sible for producing and
steering these enzymes
E4
M Metabolite
Cell
M4 E Enzyme
G Gene
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The Metabolic Network
Chemistry of Nature
G3 M2 M5
E3
E2 M Metabolite
M3 E Enzyme
E4 G Gene
Cell M
Increased production
of chemical substance
M4
Decreased production
M of chemical substance
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Metabolic Profiling
Analytical Tool for Understanding the Metabolic Network
• Measuring changes:
Metabolic profiling is
an analytical process
that measures changes
of more than 1,000
important metabolites
in an organism quickly
and precisely
• Building a database:
BASF has modified a
model plant by knocking
out each of the more
than 30,000 genes and
built a database with
all resulting metabolic
profiles
• Setting the benchmark:
The platform is
unparalleled in industry
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Conventional Gene Selection
+
Transformation
Information
New Gene Selection
+ + 0 6.008.001 0.00
12.00
14.00
16.00
18.00
20.00
22.00
24.00
Transformation
Information
Scan proprietary library with advanced bioinformatics
and identify new genes
With metabolic profiling tool we greatly increase the efficiency and efficacy of
gene discovery activities
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Summary Metabolic Profiling
• We see not only the plant, but also what is happening inside
• Switching off or addition of one gene leads to multiple changes in
the metabolic profile of a plant which we measure
• We have modified our model plant by knocking out each of the
more than 30,000 genes and built a database with all the resulting
metabolic profiles
• We have developed a powerful search engine to scan this ‘library’
for genes that trigger certain metabolic profiles
• With this tool we greatly increase the efficiency and efficacy of gene
discovery activities
• The platform is unparalleled in industry
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BASF’s Competitive Advantage
Better Data
Higher Speed 1 major patent
application every
Lower Cost 5 days
Better Genes
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1 | Biotechnology & Markets
3 | Research Platform
4 | Business Model
5 | Pipeline
23
Seed Access Strategy
3 | Research Platform
4 | Business Model
5 | Pipeline
Focus Areas
26 * POC = ‘Proof of Concept’ in model crop / POC II: ‘Proof of Concept in Target Crop’
Output Trait Example: PUFAs
Plants as Factories
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Output Trait Example: Carotenoids
Plants as Factories
• Drought-tolerant crops
Gene for Proof of Concept Next Step: will benefit growers all
Drought Tolerance in Model Plant Transform around the world
Identified Achieved Target Crop
• Proof of concept
Gene Gene in model crop was
Trans- Trans-
fer fer
achieved
• Target crops for
development are:
corn, soybean, wheat
and canola
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Input Trait Example: Nematodes
3 | Research Platform
4 | Business Model
5 | Pipeline
32
Exciting Additional Potential
from Metabolic Profiling
Major Benefits
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Potential Fields of Application
Toxicology
• Pharma
• Agrochemicals
Diagnostics
• Food Ingredients
• Cosmetic Ingredients
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Key Messages Green Biotechnology
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Disclaimer
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