Periodic Reporting for period 1 - FGen (The NanoLiter Reactor sequencing -- Quick and cost-effective method to develop microbial strains)
Reporting period: 2019-05-01 to 2019-08-31
Bio-based production can tackle several challenges for the sustainable development of our society. For example, it can help to feed a growing world population by producing compounds for the food and feed industries to increase the yield of feedstock or it can support environmentally friendly production by substitution of wasteful chemical processes. Key to bioprocesses are efficient microorganisms or cells that show high productivity and yield in order to generate commercially viable products. The development of these strains is costly and time consuming and often limiting to the advancement of bio-based production.
In the carried-out Phase 1 project we evaluated the application of FGen’s proprietary technology that facilitates and accelerates strain development for bio-based production and identified products that currently suffer from efficient production strains.
In the carried-out Phase 1 project we evaluated the application of FGen’s proprietary technology that facilitates and accelerates strain development for bio-based production and identified products that currently suffer from efficient production strains.
In a first step we evaluated the economic feasibility to produce various compounds, such as vitamins, amino acids, and enzymes, based on available market data and interviews with industrial key stakeholders. During this evaluation we identified a molecule with great commercial potential based on possible process optimization and market demand. We intensified the market research for this specific product and found an end user that is highly interested in sourcing from a European manufacturer since the specific product currently is only available from China, which is associated with risks regarding availability and quality.
In the second part of the project we elaborated a business plan for the implementation of the strain development program and for the establishment of a manufacturing process, which can be carried out either with a contract manufacturing organization (CMO) or with an industrial partner. We calculated a financing requirement of ~3.5 million Euro to develop the production strain and the corresponding bioprocess including pilot-production for the first two years. FGen will generate product sales from the third year on and reach break-even latest after five years based on product sales of 6 and 30 million in the worst- and best-case scenario, respectively. This increase in turnover enables FGen the generation of 20 to 100 full time positions and the development of additional sustainable bio-based production processes.
In the second part of the project we elaborated a business plan for the implementation of the strain development program and for the establishment of a manufacturing process, which can be carried out either with a contract manufacturing organization (CMO) or with an industrial partner. We calculated a financing requirement of ~3.5 million Euro to develop the production strain and the corresponding bioprocess including pilot-production for the first two years. FGen will generate product sales from the third year on and reach break-even latest after five years based on product sales of 6 and 30 million in the worst- and best-case scenario, respectively. This increase in turnover enables FGen the generation of 20 to 100 full time positions and the development of additional sustainable bio-based production processes.
During the feasibility study we were able to identify bio-based processes that can be either enabled or significantly improved with help of FGen's proprietary screening platform. We are currently planning the realization of one of the bio-based processes and are evaluating different options for financing of the activities. We expect that the results from the project will enable us to change FGen's business model from a contract research organization to a more product based company, and thus significantly increase the turnover of FGen. As a result, we expect to generate a significant amount of positions and support the European efforts in the generation of more sustainable production processes.