Excelsyn Molecular Development

1
Excelsyn Molecular Development

• Bioentrepreneurial company of the year awards 4th
  July 2007

2
Background

• Start point - 2004
• Site used as development arm of Great Lakes Fine
  Chemicals for 7 years
• No dedicated business development
• Up for sale for 3 years risk even to existing
  customer base
• Declining sales picture due to loss of key
  projects
• Stable customer base, sales below breakeven

3
Acquisition and Re-branding

• Site acquired by Ian Shott in 2004
• Distinguished career in the fine chemical
  industry
• Former GM of ICI/Zeneca Fine Chemicals
• Former SVP Lonza Group acquisition of Celltech
  biologics
• Former COO of ChiRex turned around business ?
  550m sales in 2 years
• Became part of the Excelsyn Group of companies
• Excelsyn Molecular Development
• Excelsyn Engineering Technology
• Excelsyn Management Consulting
• 2005/6 new business focus
• Launch of Development Services

4
Business Offerings

• Primary activities

custom synthesis
Pre-clinical
Phase I
Discovery
Phase II
Phase III
Market
Synthetic route evaluation
Process optimisation
cGMP production
Commercial supply
5
Company Turnaround
2004/5
2005/6
2006/7
2007/8
5.6m
Turnover
6.8m
9.8m
19.5m
EBITDA
-(0.3m)
-(0.2m)
0.2m
1.5m
59
Staff numbers
72
78
81
Customers served
15
36
44
50
Services Currently 6.9m of orders already won
and 17.1m opportunities in the pipeline.
Start of financial year is 1st June
6
How did they do that?

• Business Strategy Service and Science
• Providing excellent service at a good price
• Communication
• Flexibility
• Speed
• Problem solving
• Relationship focus
• Excellent science - Providing total solutions
  to often complex scale-up and production problems
• Implementation key aspects
• Improved sales process
• Improved project management

7
Total Solutions
Solution
End point
Scaleable route Phase I/II GMP drug
Route selection
Enzyme solutions
Process Development
GMP production
Catalytic solutions
Specific technologies
Continuous processing
Specialised equipment
Start point
Problem
24-step linear synthesis Mgs of product in lab
8
How did they do that?

• Improved sales process
• Increased lead to deal conversion rate
• Clear metrics, clear accountability
• Clear lead generation strategy
• Segmentation and key customer value analysis
• Territory-based lead generation plans
• Use of consultants through WDA
• Improved project management
• Matrix project management with functional team
  leaders
• Single point of contact for the customer on the
  science
• Clear responsibility and accountability
• Clear project metrics
• Project feedback directly from customers

9
Improved Sales Process

• Two ways to increase sales

2. Conversion rate
Leads
Potential customers
Proposals
Deals
1. Lead Generation
10
Improved Sales Process

• Process support
• Weekly BD meeting ?
• Customer relationship management tool Sales
  Force ?
• Individual pipelines and targets for BDMs ?
• Increased conversion rate
• Key accounts strategy and allocation ?
• Standardised proposal system ?
• Improved segment-focused sales presentations ?
• Project feedback forms, customer quotes and
  referrals ?
• Increased lead generation
• Territories and segments strategy and allocation
  ?
• Promotion/marketing strategy ?

11
Segmentation
Segment
Size (employees)
Typical buyer
Outsourcing strategy
Business model
Buying focus
lt100
1- Biotech
Project manager
Mainly strategic
Outlicense at Phase 2
Flexibility, service, communication
2 Spec pharma
100-1000
Project manager
Strategic or tactical
Sell product, In-license phase 1
Speed, price
3 Big pharma
gt1,000
Sourcing specialist
Mainly tactical
Sell, product, in-license, develop
Speed, price
12
Segmentation how used?

• Lead generation
• Engage consultants through Welsh Development
  Agency
• Use segment analysis to find potential customers
• Use segment analysis to find economic buyers in
  target customers
• What to sell
• Development services initially more to segments 1
  and 2
• Production initially more to segment 3
• How to sell
• Focus on dedicated project management teams and
  demonstrate good communication, flexibility and
  above-and-beyond service for segment 1
• Focus on reducing manufactured cost and rapid
  turnaround for segments 2-3

13
Territories WDA support

• Through WDA identified consultants to generate
  first meetings with the right buyers in the right
  companies (from segmental analysis)
• Together with the other tools to improve lead
  generation and conversion rate ? new customers
  in
• West Coast US
• France
• Germany
• Italy
• Switzerland
• Australia

14
WDA support Other Benefits

• Good prospects in other territories
• Scandinavia
• Belgium
• East Coast US
• Spain
• Excellent market information to prioritise
  efforts
• Identified potential agents for the future

15
Where to next? The Strategic Vision

• More NDAs coming from smaller companies
• More Strategic outsourcing
• Increased competition from India and China for
  straightforward synthesis
• ? Continue to build Total Development
  Solutions for complex jobs
• Build on existing relationships with technology
  and service providers

16
Total Solutions
End point
Collaboration
BEST solution - Phase I/II GMP drug
Sub- contracting
Already expert
In-house development
Start point
Some capability
To develop
24-step linear synthesis Mgs of product in lab
17
What our Customers Think

• Excelsyn have provided excellent input on this
  project. Given the molecule we are working with,
  the approach has needed to be very flexible, and
  Excelsyn have provided this flexibility. I have
  found the team extremely communicative and
  proactive
• Dr Carol Routledge
• VP, Head of Clinical Development, BTG
  International

18
What our Customers Think

• This was an extremely challenging project. The
  Excelsyn performance was very good, showing
  initiative and resourcefulness
• Dr Nigel Westwood
• Drug Supply Manager, Cancer Research UK

19
What our Customers Think

• Based on our experience to date, I can
  thoroughly recommend Excelsyn Molecular
  Development as a company committed to providing a
  high quality service. Their responsive and
  interactive approach, coupled with
  timely delivery of projects, makes them an ideal
  partner for contract synthesis. It is not often
  that a company like this ticks all the boxes. 
• Ian Cox
• Director, New Product Planning Project
  Management, Norgine