1. Facilities of the Future Mark A. Butler Sr. Vice President Integrated Project Services - IPS 10 March 2015

2. Agenda 1.Background 2.Recent Trends 3.Todays Program: Appling Pharma Facility Design Standards and Practices to Other Areas of Healthcare The Paradigm Shift in Bio manufacturing

3. FOF Cohort Jim Breen – J&J Gert Molgaard – NNE Simon Shelley– GSK Mark Butler – IPS Nandita Kamdar – J&J

4. Background 1.In 2012 the ILF issued the GPS document that discussed challenges facinging pharmaceutical companies with respect to operation and design & construction of dedicated plants for ”blockbuster drugs” 2.Higher titers, smaller batches, higher potency products, complex delivery forms all challenge the traditional paradims in the way we design and operate manufacturing facilities. 3.Agility, Facility Design, Enabiling Technologies, # of Products, Flexibility, Continuious Processing and Batch Sizes 4.Several Companies and organizations are all looking at FOF inititiaves 5.The goals of this cohort is to educate and identify how new and existing facilities can adapt to change and to see how standards can drive cycle time reduction, reduce risks and costs

5. 1.Cohort will works with ISPE on an initiative called Facilities of the Future supported by ILF Obtain input from owners, suppliers and regulators 2.The plan is to make it a global initiative Annual conferences 3 regions – US, EMEA and AP 3.Aim at close cooperation with ISPE’s PQLI and preferably make joint events with separate tracks to address ”the implementation of QbD on the plant floor” 4.Continue to work with educational partners (STEM) and update white papers on specific tech topics (Aseptics, OSD and Biologics) What are we doing EventsYearQ1Q2Q3Q4 Forums2014ISPE Europe Seminars / Forums 2015ISPE NCISPE IndiaISPE NJISPE Asia Seminars / Forums 2016In Planning Stages

6. Some Industry Pressures Margins under pressure Business Models Challenged (out sourced R&D) Commoditization is taking hold Product Shortages Product Recalls High cost to bring a product to market Attrition rates during long trials

7. 1.>56% of respondents say the factory of the future will be measured according to its production capability and flexibility. 2.Over the next five years about 10% of Western enterprises will give up to make-to-stock (MTS) heading toward make-to-order. 3.In five years, 47% of manufacturers will produce modular platforms centrally while using local small factories, suppliers, and distributors to tailor final products for local demand. 4)Manufacturers will have to achieve the global plant floor, harmonizing, supervising, and coordinating execution activities across the company's and suppliers' network. 5)Despite growing plant automation, people — and flexibility / decision-making capabilities they provide will be at the center. 6)63.6% of respondents expect their production processes to be largely or completely digitized in the next five years. 7)26% of manufacturers will invest over 25% of their total ICT budget for plant-floor IT More than 43% of Manufacturers are Designing Factories of the Future Today, According to new IDC Manufacturing Insights Survey Recent Trends

8. Back to the Future March 10 20 15 1 7 32 March 1 0 20 1 7 32 March 1 0 2050 1 722

9. What will the FOF Look like? 1.One size will not fit all. 2.What does the FOF look like to a Biologics Manufacturere with high volume Block Buster Drugs? 3.What does the FOF look like to a start up Biologics Company with no products? 4.What does it look like to Contract Manufacture? 5.What does it look like to a Contract Research Company? 6.What does it look like to a small molecue API company? 7.What does it look like to a Generic Drug Manufacturer?

10. Current Disruptors Internet of Things Big Data Enchanted Objects Modularity Single Use Shared Commons 3D Printing

11. 11 “Things” connected to the internet Image Courtesy: : CISCO

12. Change is Happening

13. What Can we expect? Innovate the adjacent possible “The adjacent possible is a kind of shadow future, hovering on the edges of the present state of things, a map of all the ways in which the present can reinvent itself.” Steve Johnson

14. Disruptive Technologies in R&D Organ on a Chip Stem Cell Organs 3D Printed Organs

15. Big Data Analytics Creative Commons License by Alfresco Software

16. Collaboration Enterprise Management

17. Predictive Maintenance

18. Yellow Line Concept Why Different ? Other industries 1.Simplify & Standardize 2.Increase Speed to Market 3.Sustainable 4.Reduce Risk Exposure 5.Service Improvement 6.Free up resources activities

19. Summary Look at your plant for areas to standardize Look for opportunities to Innovate the Adjacent Possible Look to other industries for ideas to improve efficiency Based on our history of predicting the Future we will likely over estimate the amount of change in the next two years and underestimate the change in the next ten…

20. Thank You Mark A. Butler Sr. Vice President IPS 721 Arbor Way Blue Bell, PA 19422 mbutler@ipsdb.com