ouourt ng i c resourcesfiles.pharmtech.com/alfresco_images/pharma/2019/03/08/... · 2019-07-22 ·...
TRANSCRIPT
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June 2015
INTERNATIONAL
The Science amp Business of Biopharmaceuticals
e B O O K S E R I E S
wwwbiopharminternationalcom
OUTSOURCING RESOURCES
ContentsBioPharmINTERNATIONAL
eBook Supplement to
The Science amp Business of Biopharmaceuticals
copy2015 Advanstar Communications Inc All rights reserved No part of this publication may be reproduced or transmitted in any form or by any means electronic or mechanical including by photocopy recording or information storage and retrieval without permission in writing from the publisher Authorization to photocopy items for internaleducational or personal use or the internaleducational or personal use of specific clients is granted by Advanstar Communications Inc for libraries and other users registered with the Copyright Clearance Center 222 Rosewood Dr Danvers MA 01923 978-750-8400 fax 978-646-8700 or visit httpwwwcopyrightcom online For uses beyond those listed above please direct your written request to Permission Dept fax 440-756-5255 or email mcannonadvanstarcom
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BioPharm International welcomes unsolicited articles manuscripts photographs illustrations and other materials but cannot be held responsible for their safekeeping or return
To subscribe call toll-free 888-527-7008 Outside the US call 218-740-6477
Outsourcing Resources 2015
QUALITY RISK MANAGEMENT
QRM Tools for Contract BiomanufacturingBikash ChatterjeeQuality-risk-management tools can assist biopharma
companies in mitigating risks when outsourcing crucial
elements of the drug-development process 4
VIDEO INTERVIEW
Biologics Development and Manufacturing Trends Part IAn Interview with Eric Langer BioPlan Associates 10
CROCMO VIEWPOINTS
Biopharma Advances Demand Specialized ExpertiseContract service providers share insights
on biopharma market developments and
the implications of biosimilar drug approvals 12
FILLFINISH
FillFinish TrendsEric LangerAutomation and disposables
continue to reduce human error 20
VIDEO INTERVIEW
Biologics Development and Manufacturing Trends Part IIAn Interview with Eric Langer BioPlan Associates 25
CELL THERAPY
Taking a ldquoDevelopment-by-Designrdquo Approach to Cell TherapiesAgnes ShanleyWhether outsourcing or developing cell therapies
in-house success demands a focus on quality
cost of goods and sustainability from the start 26
INTELLECTUAL PROPERTY
Protecting Intellectual Property in Engagements with CMOsJennifer L CollinsImportant IP contractual provisions
should be included when working with CMOs 32
Ad Index 35
Cover Scott Tysick Getty Images Dan Ward
EDITORIAL
Editorial Director Rita Peters rpetersadvanstarcom
Senior Editor Agnes Shanley ashanleyadvanstarcom
Managing Editor Susan Haigney shaigneyadvanstarcom
Science Editor Randi Hernandez rhernandezadvanstarcom
Science Editor Adeline Siew PhD asiewadvanstarcom
Community Editor Ashley Roberts arobertsadvanstarcom
Art Director Dan Ward dwardmediaadvanstarcom
Contributing Editors Jill Wechsler Jim Miller Eric Langer Anurag Rathore Jerold Martin Simon Chalk and Cynthia A Challener PhD Correspondent Sean Milmo (Europe smilmobtconnectcom)
ADVERTISING
Publisher Mike Tracey mtraceyadvanstarcom
WestMid-West Sales Manager Steve Hermer shermeradvanstarcom
East Coast Sales Manager Scott Vail svailadvanstarcom
European Sales Manager Chris Lawson clawsonadvanstarcom
European Sales Manager Wayne Blow wblowadvanstarcom
Direct List Rentals Tamara Phillips tphillipsadvanstarcomReprints 877-652-5295 ext 121 bkolbwrightsmediacom Outside US UK direct dial 281-419-5725 Ext 121
PRODUCTION
Production Manager Jesse Singer jsingermediaadvanstarcom
AUDIENCE DEVELOPMENT
Audience Development Rochelle Ballou rballouadvanstarcom
UBM LIFE SCIENCES
Joe Loggia Chief Executive Officer Tom Ehardt Executive Vice-President Life Sciences Georgiann DeCenzo Executive Vice-President Chris DeMoulin Executive Vice-President Rebecca Evangelou Executive Vice-President Business Systems Julie Molleston Executive Vice-President Human Resources Mike Alic Executive Vice-President Strategy amp Business Development Tracy Harris Sr Vice-President Dave Esola Vice-President General Manager PharmScience Group Michael Bernstein Vice-President Legal Francis Heid Vice-President Media Operations Adele Hartwick Vice-President Treasurer amp Controller
UBM AMERICASSally Shankland Chief Executive Officer Brian Field Chief Operating Officer Margaret Kohler Chief Financial Officer
UBM PLCTim Cobbold Chief Executive Officer Andrew Crow Group Operations Director Robert Gray Chief Financial Officer Dame Helen Alexander Chairman
wwwbiopharminternationalcom June 2015 BioPharm International eBook 2
PHARMACEUTICAL n HEALTH SCIENCES n FOOD n ENVIRONMENTAL n CHEMICAL MATERIALS
With great detection power comes great possibility To eliminate the unknown find out how Waters ACQUITY QDareg Mass Detector is making heroes out of chromatographers like you Visit waterscomPRESSON
copy2015 Waters Corporation Waters ACQUITY QDa and The Science of Whatrsquos Possible are registered trademarks of Waters Corporation
4 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Quality Risk Management
QRM Tools for
Contract Biomanufacturing
Quality-risk-management tools can assist biopharma companies in mitigating risks when outsourcing crucial elements
of the drug-development process
BIKASH CHATTERJEE
Well-defined well-executed risk man-
agement is a central component of
any clinical strategy and there are
many steps in the drug-development
lifecycle where risk management
brings value For decision making and overall program
risk reduction a quality-risk-management (QRM) pro-
gram is an effective means for biotech companies to
mitigate the risks associated with outsourcing crucial
elements of the drug-development lifecycle Risks only
get larger when activities typically performed inter-
nally during the development process are outsourced
to a contract service provider
The role of contract service providers has grown
over the past decade as the industry has worked to
shrink time-to-market by outsourcing major pieces
of the drug-development lifecycle Today because of
this heightened responsibility for a programrsquos success
organizations tend to rely on contract service provid-
ers as partners
Selecting an outsourcing partner is more complex
than simply comparing factors like on-time-in-full
BIKASH CHATTERJEE is president and CSO of Pharmatech Associates
Mic
ha
el H
Ge
ttyim
ag
es
wwwbiopharminternationalcom June 2015 BioPharm International eBook 5
Outsourcing Resources Quality Risk Management
(OTIF) delivery performance right-
the-first-time (RTF) cycle-time etc
The complexity of the global sup-
ply chain and global compliance
warrants some form of structured
evaluation tool QRM provides this
framework
Production risks are not lim-
ited to time-to-market concerns
Emerging biotherapeutics such as
antibody drug conjugates (ADCs)
and chimeric antigen receptorT
cel l technology (CAR-T) pro -
vide the potential for significant
advances in cancer treatment
but also bring with them a new
level of risk in terms of charac-
terization and quality assurance
Integrating QRM as part of the
program management process pro-
vides a mechanism for addressing
these risks and technical uncer-
tainties as the program progresses
QRM can be divided into two
major areas of application risk-
based decision-making and risk
analysis and management
QRM and Risk assessMent
QRM embodies a systematic pro-
cess for the assessment control
communication and review of
risks The core elements of QRM
are defined in the ICH Q9 guide-
line Quality Risk Management (1)
The principles of using risk as
part of a scientific approach to
drug development are captured
across ICH guidances ICH Q5
Quality of Biotechnological Products
(2) and ICH Q8 Pharmaceutical
Development (3) The European
Un ion a nd Ph a r m ac e ut ic a l
Inspec t ion Convent ion a nd
P h a r m a c e ut i c a l I n s p e c t io n
Co-operat ion Scheme (PICS)
have adopted these principles in
Annex 20 of the EU and PICS
GMP guides
Integ rat ing QR M elements
within the product development
process can raise organizational
FIG
UR
ES
CO
UR
TE
SY
OF
TH
E A
UT
HO
R
Figure 1 Product development risk analysis tools impacted by outsourcing (ADME is absorption distribution metabolism and
excretion PARNOR is proven acceptable rangenormal operating range AHP is analytic hierarchy process CDMO is contract
development manufacturing organization FMEA is failure mode and effects analysis RRD is risk ranking and fltering CMO is
contract manufacturing organization NPV is net present value)
Preclinical
De
ve
lop
me
nt
Ph
ase
Bio
log
ic Q
RM
Animal models ADME studies and
toxicology studies
AHP CDMO
selection
Decision-tree molecule selection
Pre-hazard analysis
Process cause-and
-effect analysis
AHP CMO selection
Process FMEA
RRF
Capital risk investment weighted
NVP calculation
Final RRF or FMEA
Intermediate scale up container-closure studies stability studies PARNOR
tech transfer method transfer fnal reference characterization
Final stability studies fll fnish PARNOR fnal control
strategy process performance
qualifcation lots attribute testing strategy
Ou
tso
urc
ing
QR
M
Phase 1 Phase 2 Phase 3
Quality target product profle formulation selection process design master and
working cell banks raw material characterization method development
initial critical quality attributes reference standard characterization
Figure 2 Preclinical analytical hierarchy process (AHP) structure
GOAL
Select the best
CDMO for
preclinical testing
CRITERIA
ALTERNATIVES
Experience with
route of deliverySchedule
Data analysis
capabilityCost
CDMO 3CDMO 2CDMO 1
6 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Quality Risk Management
visibility of program risks based
upon past program development
with long-term benefit For plat-
form products this means cap-
turing universal program risk
to learn from past risk analyses
and mitigation activities Mature
organizations link assessments to
program milestones moving the
context of risk management from
a supportive role to one of deci-
sion making and program man-
agement
QRM pRoduct developMent and outsouRcingThe principles of QRM can be use-
ful in almost every step of drug
development Risk analysis tools
are ideal as aids to evaluate cri-
teria leading to the selection of
a contract service provider One
important advantage of apply-
ing a QRM approach to product
development is the ability to
harness internal expertise from
across the organization and focus
decision-making using a com-
mon perspective The key process
development activities defined in
the Parenteral Drug Associationrsquos
Technical Report 42 (4) are not
the only development activities
and milestones that can leverage
a QRM framework The empha-
sis in biologic drug development
is predominantly on the drug
substance not the drug prod-
uct While both are important
to a successful drug filing drug
product activities often begin at
the fillfinish stage of the process
and are more standardized from a
design and execution perspective
Figure 1 illustrates which risk
analysis tools can assist in execut-
ing an outsourcing strategy in each
phase of product development
Similar risk analysis tools are color
coded and linked to each of the
four major phases of product devel-
opment prior to commercial manu-
facturing
analytic hieRaRchy pRocess The dec ision to outsource a
key program element to a con-
tract service provider may occur
regardless of the stage of product
development Early in the prod-
uctrsquos development in the preclin-
ical phase development activity
emphasis is on assessing the basic
characteristics of the molecule in
animal models Pharmacokinetic
and pha r macody namic mea-
surements and absorptiondis-
tributionmetabolismexcretion
(ADME) studies are typica l ly
conducted in rodent and non-
rodent mammalian animal mod-
els Selection criteria to assess an
appropriate service provider can
include route of delivery capabil-
ity and experience data analysis
capability schedule and budget-
ary considerat ions The r ight
service provider will contribute
to the success of a programrsquos
investigational new drug filing
and impact the overall program
schedule
One effective risk-analysis tool
to address this outsourcing deci-
sion is Analytic hierarchy process
(AHP) AHP allows the evaluation
to translate subjective opinions
or preferences into measurable
numeric relations to make deci-
sions in a rational way AHP uses
pairwise comparison for consis-
tency in the evaluation of each
criterion for each circumstance
Using AHP requires that the alter-
natives be structured as a hierar-
chy as shown in Figure 2
Figure 3 Preliminary hazard analysis
Attribute Key word Deviation Cause EffectCurrent
safeguardscontrolsHazard levels
ProductNumeric
level
Assay HighOutside tolerance
limitsFillfinish error
Possible hypoglycemia
Sampling manufacturing weight check
High Ampoules 3
Assay LowOutside tolerance
limitsFillfinish error
Possible hyperglycemia
Sampling manufacturing weight check
Medium Ampoules 2
Sterility Low Non-sterilePoor aseptic
handlingInfection
Media fills and environmental monitoring
High Ampoules 3
Keyword Defnition
Low Low risk to patient
Medium Potential risk to form fit and function of drug which could do harm to patient
High Significant risk to a patient andor form fit and function of product
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8 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Quality Risk Management
Within the AHP hierarchy it is
important to establish the priori-
ties for each element Priorities
are the numbers associated with
the nodes to represent the rela-
tive weights of the nodes in any
group Similar to probabilities
priorities are absolute numbers
In executing the method criteria
are evaluated against the goal to
establish priority Similarly each
alternative is evaluated against
each criteria With these two ele-
ments complete the priority of
each alternative can be calcu-
lated against the goal to select
the appropriate contract develop-
ment and manufacturing organi-
zation (CDMO)
decision-tRee analysis
As a molecule passes the pre-
clinical development program
typically an organization will
evaluate the information to make
a gono-go decision to move the
program forward A tool that can
be useful in quantifying this
phase-gate decision is a decision
tree analysis a decision support
tool that uses a tree-like graph of
decisions and their possible con-
sequences including chance event
outcomes and resource costs
One area where a decision
tree has been a useful tool is in
biologic companies with a com-
bination-product development
program Some biologics may inte-
grate a device component such as
an auto-injector as opposed to
an IV delivery The advantage of
an auto-injector is that it is por-
table and able to deliver outside
a healthcare setting Quantifying
the organizat ionrsquos abi l ity to
develop and commercially support
a device component is a signifi-
cant program risk consideration
for many biotech companies
Choosing a contract manufacturer
with experience in devices and
drugs may drive down technical
and program risk but could com-
plicate the overall supply chain
With a decision-tree analysis an
organization can quantify the cost
of moving forward with each alter-
native while flagging uncertain-
ties One course of action may be
to address the uncertainties and
drive the likelihood of success to
an acceptable level before proceed-
ing with any program
AHP and decision-tree analy-
sis can be used anywhere in the
drug development process where
in-house manufacturing versus
outsourcing alternatives must be
evaluated
pReliMinaRy hazaRd analysis
In the United States Phase I
activities involve satisfying FDArsquos
latest expec tat ions in terms
of product design and process
under sta nd ing For mulat ion
selection is one of the first mile-
stones in a Phase I program A
pre l iminar y haza rd ana lysi s
(PHA) is typically performed early
in a program to identify known
hazards determine their causes
effects and probability and to
establish initial design and proce-
dural requirements to eliminate
or control them
While PHA can be used as an
early evaluation of any risk situ-
ation one effective application
of PHA is to evaluate the prod-
uct design from a patient safety
perspective as a precursor to pro-
Figure 4 Monoclonal antibody process train cause-and-effect matrix
Critical quality attributes (Risk level)
Preculture and expansion
Fermentation and harvest
CentrifugeCation exchange chromatography
Anion exchange chromatography
Viral filtrationConcentration
and diafiltration
Vial filling
Appearance (M)
Impurities (H)
Protein content (H)
Immunoreactivity (H)
Purity (H)
Bioburden (H)
In-process controls
Fill weight check (M)
Visual Inspection (M L)
Risk Key None Low Med High
wwwbiopharminternationalcom June 2015 BioPharm International eBook 9
Outsourcing Resources Quality Risk Management
cess design The PHA can use a
simple heat map of low medium
and high-severity assessments
An example of a partial PHA is
shown in Figure 3 Any evalu-
ation that results in a hazard
level of medium or high should
be included as part of the control
strategy for the process
pRocess cause-
and-effect MatRix
As the program moves into the
process design and scale up or
technology transfer activities a
cause-and-effects (CampE) analy-
sis is a simple and effective tool
to determine which unit opera-
tions impact the drug productrsquos
final critical quality attributes
(CQAs) These unit operations
could then focus on determin-
ing if there are critical control
parameters (CPPs) that impact
the final productrsquos CQAs If there
are CPPs present a f inal con-
trol strategy should ref lect the
potential risk of straying from
the process design space for that
unit operation An example of a
simple CampE analysis for a sim-
ple monoclonal antibody (mAb)
process train is given in Figure 4
The CampE matrix can assign val-
ues descriptors or in this case
integrate a heat map to commu-
nicate potential risk
failuRe Modes
and effects analysis
Failure modes and effects analy-
sis (FMEA) is a systematic pro-
active method for evaluating a
process to identify where and
how it might fail and to assess
the relat ive impact of d i f fer-
ent failures It is used to iden-
tify the parts of the process that
represent the greatest risk to the
productrsquos performance FMEAs
are one of the most commonly
used risk analysis tools used in
the biopharma industry today
FMEAs are based upon risk rank-
ing tables that provide a com-
mon definition for ranking the
severity of a failure and the like-
lihood of occurrence These are
typically ranked on a scale of 1
to 10 then multiplied together
to give a r isk priority number
(RPN) For FMEAs that do not
intend to address potential fail-
ure modes dur ing the design
activity such as process FMEAs
an additional evaluation cate-
gorymdashProbability of Detectionmdash
is used It is not unusual for an
FMEA to generate a large num-
ber of potential failure modes
FMEAs can be effective as part of
deviation and corrective and pre-
ventive action (CAPA) root cause
investigations as a structured
tool for identifying and demon-
strating a true root cause for a
non-conformance
Risk Ranking and filteRing
Risk ranking and filtering (RRF)
is a common facilitation method
used for risk management and
is also known as relative r isk
ranking risk indexing and risk
matrix and filtering The intent
is to provide sharper focus to the
critical risks within a systemmdash
typically from a large and com-
plex set of risk scenarios RRF
works by breaking down overall
r isk into risk components and
evaluat ing those components
and their individual contribu-
tions to overall risk RRF is most
suited to comparing and manag-
ing a portfolio of complex risks
RRF like all risk-assessment tools
requires agreed-upon sets of risk
factors and evaluation criteria
RRF provides a means to priori-
tize and filter individual risks
by combining the evaluations of
risk components against set cri-
teria into a single risk score
Applying RRF requires identi-
fying the primary risk question
then defining the head topics
and subtopics An example of
a CDMO audit risk assessment
structure is shown in Figure 5
Figure 5 Risk ranking and fltering (RRF) outsourcing example structure
Risk question
Subtopics
Head topics
What should the audit frequency be at the CDMO to ensure GMP compliance
Engineering
Calibration Manufacturing
Labeling
Supplier
Storage
Changecontrol
Batch release
Deviations
Corrective and
preventive actions
Validation
Packaging
QC testing
Maintenance
Operations ComplianceSupplychain
10 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Quality Risk Management
Biologics Development and Manufacturing Trends Part I
Eric Langer Managing Partner BioPlan Associates talks about the results from BioPlan Associatesrsquo 12th Annual Report and Survey of Biopharmaceutical Manufacturing Capacity and Production Trends in downstream processing protein A and single-use technology are discussed in Part I of this discussion For a discussion on productivity trends and biosimilars see Part II of the interview on page 25
With this structure in place
each risk can be assessed against
the probabil ity of occurrence
and severity impact and summa-
rized in a simple heat map
Risk-adjusted
net pResent value
For those decision milestones
that require investment in capi-
tal or resources a risk-adjusted
net present value (rNPV) is a
more acc urate method than
convent iona l N PV a na ly se s
for communicat ing the t r ue
cost of an investment decision
rNPV is sometimes referred to
as expected NPV (eNPV) rNPV
modifies the standard NPV cal-
cu lat ion of d iscounted cash-
f low analysis by mult iply ing
each cash flow by the estimated
probability that it occurs (the
estimated success rate) In the
language of probability theory
the rNPV is the expected value
rNPV is the standard valuation
method in the drug development
industry where sufficient data
exists to estimate success rates
for all RampD phases
conclusion
Biopharmaceutical products and
processes figure among the most
complex drug development life-
cycles within the industry A
structured QRM program that
integ rates s t anda rd i zed r i sk
assessment tools as part of the
overa l l product development
program can highlight the criti-
cal technical compliance and
regulatory risks when consider-
ing an outsourcing service pro-
vider The application of simple
QRM tools will provide structure
to the decision-making and eval-
uation process and when com-
bined with a simple knowledge
management framework provide
a foundation for all future prod-
uct programs Insight into the
risk and mitigation strategies can
reduce a programrsquos risk profile
significantly
RefeRences 1 ICH Q9 Quality Risk Management
(2005)
2 ICH Q5A-Q5E Quality of
Biotechnological Products
3 ICH Q8 Pharmaceutical Development
(2009)
4 Parenteral Drug Associates
Technical Report 42 Process
Validation for Protein Manufacturing
(2005) Bp
wwwtosohbiosciencecom
Tosoh Bioscience and TOYOPEARL are registered trademarks of Tosoh Corporation
Every mAb is unique
Your Protein A should be as well
TOSOH BIOSCIENCE LLC bull Customer service 866-527-3587 bull Technical service 800-366-4875 option 3
TOYOPEARLreg AF-rProtein A HC-650FHigh Capacity Protein A Resin for Monoclonal Antibody Purifi cation
0
10
20
30
40
50
60
70
80
2 35 5
Residence time (minutes)
DBC
for I
gG (g
L)
1 gL
5 gL
10 gLResin TOYOPEARL AF-rProtein A HC-650FColumn size 5 mm ID times 5 cmMobile phase 002 molL sodium phosphate 015 molL NaCl pH 74Residence time 2 35 5 minDetection UV 280 nm (10 breakthrough)Sample human IgG 1 5 10 gL in mobile phase
12 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources CROCMO Viewpoints
Biopharma Advances
Demand Specialized Expertise
Contract service providers share insights on biopharma market developments and the implications of biosimilar drug approvals
The ediTors of Biopharm international
The approval of the first biosimilar in the
United States as well as continuing consolida-
tion in the biopharma and contract develop-
ment and manufacturing markets are just
two indicators of the ongoing evolution of
biopharmaceutical development Representatives of
contract service providers shared observations trends
and projections with BioPharm International
Roundtable participants are Gary Chambers busi-
ness manager biopharma labs Europe SGS Bill
Hartzel director of strategic execution Catalent
Pharma Solutions Chris R Lively PhD director of
biopharmaceutical services PPD Scott Lorimer
VP Global Operations Patheon Biologics Eugene
McNally PhD executive director PPD Consulting
Rekha Patel global director large molecules devel-
opment and analytical solutions Catalent Pharma
Solutions and Mark Rogers vice-president SGS
Life Science Services USA
RegulatoRy and business tRends
BioPharm What regulatory changes have positively or
negatively impacted biopharmaceutical development
manufacturing processes
Ad
am
Ga
ult
Ge
tty Im
ag
es
info_contractmanufacturingebsicom | 1 800 441 4225 | emergentcontractmanufacturingcom
Aseptic FillFinish
Pre-Clinical Development
BDSManufacture
Clinical amp Commerical
Lyo CycleDevelopment
Emergent BioSolutions has a proven track record as a world-class provider of contract manufacturing services for both bulk drug substances and sterile injectable drug products Our team has successfully launched 20 commercial products and developedmanufactured over 200 clinical candidates for our clients
Emerging Capability
State-of-the art flexible single-use facility enables turnkey upstream and downstream solutions for clinical and commercial scale biopharmaceutical drug development
Emergent Contract Manufacturing
Enhancing Life in Every Single Dose
14 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources CROCMO Viewpoints
McNally (PPD Consulting) FDA
establ ished a new Off ice of
Pharmaceutical Quality in 2014
which we anticipate will have major
impacts on the biopharmaceuti-
cal development and manufactur-
ing process This reorganization
was designed to enhance quality
drug assessment by realigning sev-
eral elements of the preapproval
and surveillance inspection pro-
cess Integrating risk-based review
GMP inspection implementation
of quality by design and the new
FDA process validation guidance
within one office is expected to
significantly change the biophar-
maceutical development and manu-
facturing process
H a r t z e l ( C a t a l e n t P h a r m a
Solutions) In todayrsquos market there
are significant manufacturing
challenges in traditional glass vial
filling applications These chal-
lenges manifest in quality issues
with the final container closure
and may be related to microbial
contamination glass particulates
and foreign materials that lead to
necessary market action causing
supply issues
Lorimer (Patheon Biologics) The
greatest regulatory change in recent
times is the acceptance and approval
of biosimilars
BioPharm What business trends
have posit ively or negatively
impacted biopharmaceutical devel-
opmentmanufacturing processes
H a r t z e l ( C a t a l e n t P h a r m a
Solutions) Today there is a stronger
emphasis in the development life-
cycle on the delivery of the mol-
ecule to the patient and not just
the molecule itself Deliverydevice
experts are being added to teams
at Phase II to improve the delivery
beyond the traditional vial
Lively (PPD) Growing interest
in biopharmaceutical drug devel-
opment necessitates partnering
between clients and contractors to
increase industry capacity breadth
of capabilities expertise and
the experience required to bring
these drugs to market The client
will receive the most benefit by
selecting a high-quality contract
research organization (CRO) lab
that is able to meet its needs and
work collaboratively with the cli-
ent to ensure timely development
Lorimer (Patheon Biologics) The
trend of small biotech partner-
ing with large pharma for clinical
manufacturing and development
has certainly facilitated the full
development of more novel mol-
ecules Also the increasing trend
toward outsourcing of GMP biolog-
ics manufacturing ensures biopro-
cessing and testing is performed
by expert manufacturers with
proven track records in quality and
biomanufacturing This helps to
reduce the risk to clinical programs
and product safety
technicalscientific tRendsBioPharm Can you describe pro-
ductivity improvements your com-
pany has experienced from new
technologies
Patel (Catalent Pharma Solutions)
Catalent Pharma Solutions has sig-
nificant ongoing investments in
enhancing our large-molecule ana-
lytical capabilities and productiv-
ity to meet and advance current
industry needs Recent invest-
ments include the updatednew
technologies new assay strategies
and updated electronic systems
and processes
Lively (PPD) Evolving character-
ization expectations for biologics
have driven improvements in ana-
lytical equipment processes and
systems Ultra performance liquid
chromatography (UPLC) systems
have improved resolution and sen-
sitivity while reducing run times
In addition 2D high-performance
liquid chromatography (HPLC)
high-resolution mass spectrom-
etry (MS) allows for analysis of
samples incompatible with tradi-
tional MS Reporter gene bioassays
apply genetically engineered cell
lines both to directly model mech-
anisms of action and to amplify
assays for improved performance
with shorter incubations and
increased signalnoise relative to
standard bioassays
Lorimer (Patheon Biologics) The
main productivity improvement
has been increasing the through-
put of products in Patheonrsquos mul-
tiproduct biopharmaceutical GMP
facilities Single-use disposable
bioreactors and similar single-use
bioprocess equipment minimize
plant downtime which is tradi-
tionally required for line clearance
and product changeover The com-
plexity of product changeovers is
reduced by single-use technology
which decreases the need for clean-
in-place steam-in-place and qual-
ity control testing Typically line
Approval of the first
biosimilar in the
United States as well
as consolidation in
the biopharma and
contract development
and manufacturing
markets are just
two indicators of the
ongoing evolution of
biopharmaceutical
development
YOUR PARTNER FROM CONCEPT TO COMMERCIAL
1
42
5
3CELL LINE DEVELOPMENT
bull Cell line development amp selection
bull Cell line characterization amp optimization
bull Subcloning
bull Suspension adaptation
PROCESS DEVELOPMENT
bull Upstream development amp optimization
bull Media optimization feeding strategyamp design including DoE approach
bull Downstream development ampoptimization
bull Process optimizationprocess scale-up
bull Viral inactivationremoval study design
bull Formulation development amp screening
bull Up to 100L controlled bioreactors
bull Process validation
ANALYTICAL METHODS DEVELOPMENT
bull Development feasibility optimizationtransfer qualification amp validation of methods
bull Identity purity potency safety ampcharacterization
cGMP BIOMANUFACTURING
bull Commercially-licensed facility
bull Flexible manufacturing capabilities
bull Stainless steel amp single-use systemsfrom 100L-1000L
bull FDA EU amp ANVISA inspected
QUALITY AND REGULATORY SERVICES
bull Regulatory strategy amp submissions
bull cGMP CMC Section 7 support
bull In-process amp release testing
bull Stability testing
bull Reference standard generation
For more information please visit us at wwwavidbiocom or
e-mail businessdevelopmentavidbiocom
THE AVID
ADVANTAGE
16 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources CROCMO Viewpoints
clearance time is reduced by sev-
eral days
R o g e r s ( S G S L i f e S c i e n c e
Services) As an analytical ser-
vice provider SGS is constantly
in search of means to improve
its laboratory efficiencies partic-
ularly those that enhance turn-
around time without adversely
effecting quality With this in
mind substitution of HPLC for
UPLC rapid microbiolog ica l
screening methods and invest-
ment in automated approaches to
complex analytical problems such
as protein sequencing are now
being used within the SGS labora-
tory network
Chambers (SGS) From a CRO
point of view the main produc-
tivity improvements in analytics
have been from higher through-
put systems and data analysis The
move to these faster systems with
semiautomated data processing has
allowed us to improve turnaround
times which are passed on to cli-
ents in terms who win on faster
to market times and faster gono
decisions
BioPharm What additional tech-
nology improvements are needed
to improve the efficiency of bio-
processing
Lorimer (Patheon Biologics)
Process analytical technology
(PAT) for continuous monitoring of
bioprocesses is helping reduce the
variability on biopharmaceutical
manufacturing
Also biopharmaceutical devel-
opment and process validation
have been accelerated by the use
of mini-bioreactor systems which
enable a large amount of process
development data to be gener-
ated within a very short timeline
These multi-bioreactor systems
can reduce process develop -
ment timelines by months when
applied to early-stage or late-stage
bioprocesses
Rogers (SGS Life Science Services)
The development of many tech-
nologies follows a common path
from academia to commercial
application and nowhere is this
more evident than in the field of
bioprocessing In almost all exam-
ples the key to this progression
lies in the ability to simplify opera-
tional aspects of the technology
and improve throughput This has
in the past been clearly demon-
strated in for example the field of
mass spectrometry and is currently
evolving with techniques involved
in biophysical characterization
BioPharm What is the greatest
technical challenge facing biophar-
maceutical companies today
Hartzel (Catalent Pharma Solutions)
Cost to manufacture will continue
to be a major challenge for the
industry especially with the rise
of biosimilars and market pressures
to drive down the cost of medi-
cines However the products that
are coming to market are more
targeted which leads to smaller
batch sizes This is counter to the
manufacturing adage of being able
to leverage economies of scale to
drive out costs hence the need to
focus on alternatives technologies
and innovation to reduce the man-
ufacturing costs versus economies
of scale
Lively (PPD) Application of ana-
lytical techniques to better char-
acterize innovator and biosimilar
or follow-on products by physico-
chemical and functional methods
are required and will continue to
be driven by the complexity of
biologics development For exam-
ple changes in formulations may
cause different leachable profiles
requiring increasing emphasis on
extractablesleachables techniques
(ie high-resolution MS) to sup-
port characterization of formu-
lation effects identification of
degradation and impurities and
determination of their potential
impact through application of
potency bioassays
Lorimer (Patheon Biologics) Most
of the technical challenges for
manufacturing have been over-
come and the technologies for
development and manufactur-
ing have been widely adopted
Perhaps the greatest challenge is in
clinical development of novel and
originator molecules where in-vitro
model systems are still not a great
predictor of clinical performance
Rogers (SGS Life Science Services)
To highlight one technical chal-
lenge above all others in todayrsquos
biopharmaceutical industry is
very difficult The complexity of
biotherapeutics often results in
considerable technical difficul-
ties as for example in the area
of impurities recognition of host-
cell proteins (HCPs) and identi-
fication of structural variants at
trace levels are certainly high on
the list of technical concerns The
necessary inclusion of relatively
elaborate analytical techniques
such as sedimentation velocity
analytical ultracentrifugation (SVndash
AUC) within a traditional qual-
ity control release environment is
also not without problems
BioPharm What are the pros-
pects for continuous manufac-
turing to be firmly established in
bioprocessing What are the road-
blocks to implementation
Lorimer (Patheon Biologics)
Continuous product ion f rom
mammalian cell cultures has been
operated in perfusion bioreactors
for many years The main road-
block for continuous processing is
downstream processing of proteins
which currently demands discrete
and distinct unit operations for
removal of impurities removal
of contaminants concentration
of the products and formulation
each in separate controlled steps
Introducing a next generation chemically-defined CHO fed-batch media platform from SAFC Developed across a range of widely used industrial CHO cell lines this newest portfolio media delivers exceptional titers and economic efficiencies Adaptation is simple Celebrate performance and accelerate your bio-development process
Celebrate Request your complimentary sample at sigma-aldrichcomCHOperformance
Cat Nos 14366C 24366C 24367C 24368C
EX-CELLreg ADVANCEDtrade CHO FED-BATCH SYSTEM
CELL CULTUREPERFORMANCE
copy2015 Sigma-Aldrich Co LLC All rights reserved Sigma-Aldrich SAFC and EX-CELL are trademarks of Sigma-Aldrich Co LLC registered in the US and other countries
NEXT GENERATION MEDIA PLATFORM
18 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources CROCMO Viewpoints
and which are not currently ame-
nable to continuous processing
the Rise of biosimilaRs
BioPharm What impact w i l l
biosimilar drugs have on bio-
pharma businesses bioprocessing
approaches and the contract ser-
vices market
Rogers (SGS Life Science Services)
The European biopharma land-
scape has already experienced
impact of the biosimilar drug mar-
ket leading to rapid expansion of
traditional small molecule generic
manufactures into the bio arena
Recent FDA approval of the Sandoz
biosimilar Zarixo may be the seed
for similar changes in the US pro-
viding a potential new line of busi-
ness for established pharmaceutical
companies Contract service pro-
viders such as SGS who already
have considerable experience with
biosimilars are able to offer exper-
tise to businesses new to this mar-
ket and will no doubt benefit from
such expansion in the US
Lively (PPD) Increased invest-
ment in biosimilars is driving
interest in improving and stream-
lining the development processes
as well as the sensitivity and scope
of characterization assays used to
compare biosimilars and innova-
tor drugs The expanding capac-
ity needs result in partnerships
between clients and their contrac-
tors with the systems experience
and expertise to achieve the qual-
ity and speed required while meet-
ing all regulatory expectations for
product approval
Chambers (SGS) With nearly
20 years exper ience perform-
ing biosimilar analysis the big-
gest impact had been the massive
increase in the characterization
needed for biosimilars compared
to innovators (although higher
standards are now needed for new
innovators too) This has resulted
CMOs Add Capabilities
Consolidation in the contract development and manufacturing market has resulted in new capabilities and facility expansions
In May 2015 CMC Biologics announced that it is expanding its Copenhagen Denmark facility to increase its manufacturing capacity through the installation of six 2000-L bioreactors The bioreactors can be run singly or in groups simultaneously or sequentially and are part of the companyrsquos signature Bioreactor 6Pack single-use program The Copenhagen installation will begin initial GMP production in November 2015 and will feature three bioreactors to start Three bioreactors will be added at a later date to complete the configuration Meanwhile the Bioreactor 6Pack at CMCrsquos Seattle facility will complete its first GMP run in mid-2015 and will be ready for commercial launch by the end of the year Through its recent expansions CMC plans to expand its global capacity by more than 30000 liters in the United States and Europe
Also in May 2015 SAFC announced an expansion to its St Louis MO facility to support the commercial-scale production of antibody-drug conjugates The facility which is expected to be online and operational in the third quarter of 2015 was designed to meet SafeBridge category 4 compound handling requirements for highly active or cytotoxic compounds The expansion of an existing Carlsbad CA location will enable SAFC to offer fillfinish capabilities of viral products to its clients in the gene therapy viral vaccine and immunotherapy sectors
Rentschler announced in March 2015 that a 2000-L bioreactor that the company commissioned and built in six months is up and running The bioreactor will be integrated into existing manufacturing suites containing two 1000-L single-use bioreactors according to a company statement The companyrsquos twin bioreactor systemmdashdesigned for running two main bioreactors in parallel with one shared downstream processing unitmdashwill be functional by 2017 The twin system is estimated to double the companyrsquos production capacities for cell culture-derived proteins
In December 2014 FUJIFILM Diosynth Biotechnologies USA (FDBU) acquired Kalon Biotherapeutics adding viral and cell-culture vaccine expertise and capabilities In other activity FDBU started construction of a three-story 62000-ft2 facility in Research Triangle Park NC in January 2015 to house the companyrsquos process and analytical research and development process sciences and stability groups The expected completion date is Q4 2015
In September 2014 PCI a provider of packaging services acquired Biotec Services International a provider of clinical-trial services and temperature-controlled pharmaceutical services headquartered in Bridgend Wales UK The addition expanded PCIrsquos presence in the European Union and added packaging storage and distribution capacity and consultative services for clinical-trial supplies In January 2015 Biotec announced the validation of its clinical supply facility expansion which added almost 50 to the companyrsquos clinical trial materials handling capacity
wwwbiopharminternationalcom June 2015 BioPharm International eBook 19
Outsourcing Resources CROCMO Viewpoints
in challenges in data handling
interpretation and data presenta-
tion Biosimilars have also caused
the re-emergence of orthogonal
techniques like size exclusion
chromatographyndashmulti-angle laser
light scattering (SEC-MALL) and
SV-AUC for aggregation and cir-
cular dichroism (CD) and fourier
transform infrared spectroscopy
(FTIR) for higher-order structure
as critical analyses to understand
and compare and detect subtle
higher-order structural differences
between innovator and biosimilar
samples
Hartzel (Catalent Pharma Solutions)
The rise of biosimilar drugs will
dawn the next generation of bio-
logic manufacturing and force
the industry to look at new ways
of manufacturing to drive down
costs Therefore the industry will
seek new manufacturing partners
with strong technical expertise to
drive out costs through innovation
and operational excellence
Lorimer (Patheon Biologics)
Genera l ly b ios imi la r d r ugs
will encourage competitiveness
within the biopharma sector
Biomanufacturers expect increased
pressure on cost of goods and
pricing Biopharmaceutical con-
tract service providers with a flex-
ible multi-product operation and
proven track record in the indus-
try are well placed to ensure care-
ful control of manufacturing costs
and product quality Processing
approaches wonrsquot change in terms
of technology but there will be a
greater emphasis on operational
excellence to reduce costly inef-
ficiencies and improve yields from
bioprocesses As more biosimilars
come to the forefront and as the
industry trend for outsourcing
continues increasing operational
flexibility while maintaining the
highest quality standards will be
the keys to success
business challenges
BioPharm What is the greatest
business challenge facing biophar-
maceutical companies today
Lively (PPD) As with all phar-
maceutical drug development the
greatest challenge is getting new
life-changing and potentially life-
saving drug candidates to mar-
ket Biopharmaceuticals face more
challenges than traditional small-
molecule drug products because
the science of characterization
of such biologic drugs is rapidly
evolving along with the regulatory
landscape Those companies that
are best able to successfully char-
acterize and differentiate innovator
and biosimilar products for safety
and efficacy will have the greatest
opportunity to benefit
the knowledge gap
BioPharm In what areas do you
see knowledge or expertise gaps in
current biopharmaceutical compa-
nies Why do these gaps exist
Lorimer (Patheon Biologics) There
is a gap in translating good sci-
ence to industrial applications of
technologies that provide for reli-
able efficient cost effective man-
ufacturing at commercial scale
Maintaining a focus during early
development on eventual commer-
cial manufacturing requirements
while balancing limited develop-
ment resources requires a broad
base of coordinated organiza-
tional skillsets and a disciplined
approach
Hartzel (Catalent Pharma Solutions)
Devicedelivery expertise is an
area that has a potential gap For
biologics the historic default con-
tainer closure has been a tradi-
tional glass vial As the healthcare
industry seeks ways to improve
patient care and reduce costs the
delivery to the patient needs to
adopt new technologies and this
is why we have seen a rise of pre-
filled syringes and autoinjectors
These technologies will continue
to evolve and so will the demand
for devicedelivery experts
Lively (PPD) One of the chal-
lenges we see is the various levels
of knowledge and expertise that
exist between biopharmaceutical
RampD and the testing and regula-
tory industries That differential is
impacting those industriesrsquo ability
to fully consider and effectively
implement expectations and guid-
ance for physicochemical and
functional characterization expec-
tations of biologic drugs
Lorimer (Patheon Biologics) The
commercial biopharmaceutical
industry demands global sourc-
ing of materials services supply
and ultimately distribution to each
patient This requires a robust inte-
grated supply chain to deliver high
value products to patients on-time
and at the right quality Doing this
reliably and efficiently with long
production lead times and uncer-
tain market sales forecasts is an
industry wide challenge
Speed-to-market remains a key
challenge to the development of
biopharmaceuticals Speedy first-
time-in-man clinical trials can be
a major hurdle for small biotech
companies and large pharma alike
Rogers (SGS Life Science Services)
I believe there continues to be a
significant problem in the level of
fundamental scientific expertise
within many biopharmaceutical
businesses In part this may be
attributed to the lsquokitrsquo and lsquoblack
boxrsquo approach of many modern
day technologies Due to the
complexity of many biopharma-
ceuticals their development and
success as therapeutics requires a
comprehensive range of scientific
disciplines and expertise which
can be difficult to fully realize
internally particularly for small
and mid-size companies bp
20 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources FillFinish
FillFinish Trends
Automation and disposables continue to reduce human error
Eric s LangEr
Fillfinish operations continue to be domi-
nated by trends in automation and the adop-
tion of single-use equipment But these are
by no means the only factors affecting these
high-value operations according to BioPlan
Associatesrsquo latest biomanufacturing study (1) Fill
finish processes are among the most outsourced
activities in biomanufacturing today and a service
providerrsquos capacity for vialing pre-filled devices
and lyophilization is crucial In a recently pub-
lished whitepaper (2) BioPlan Associates determined
that there is sufficient global in-house capacity
for biologics but the need continues to grow for
greater access to specialized outsourcing competence
Whatrsquos trending is significant improvements in auto-
mation and operations
AutomAtion And single use defining Cmo strAtegy
The top trends today involve automation and devel-
opment of better disposable technologies As part of
the BioPlan study biomanufacturers were asked to
select the trends they believe to be the most impor-
tant in fill and finish today The top three trends
are single-use equipment automation in full isolator
units and facilities becoming multi-product ori-
ented (see Figure 1)
Other important trends were noted including
bull Increased serialization and product labeling for
anti-counterfeiting
Eric s LangEr is president and managing partner at BioPlan Associates Inc elangerbioplanassociatescom tel 3019215979 wwwbioplanassociatescom
Ma
ria T
ou
tou
da
ki
Ge
tty Im
ag
es
WITH ALTHEA YOU HAVE THE POWER TO MAKE
You have the power to make a difference To make new therapeutics that improve quality of life and inspire a healthier world To do this you need a manufacturing partner who embraces your every challenge as its own who shares your unwavering tenacity and dedication from clinical studies through commercial success Thats The Power To Make
PLAY VIDEO
CONTRACT
MANUFACTURING
Q Development
Drug Substance
lj Drug Product
(D Al TH EA I THE POWER TO MAK A MEMBER OF THE AJINOMOTO GROUP
22 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources FillFinish
bull More f i l l f i n i sh fac i l i t ie s
o p e r a t i n g i n d e v e lo p i n g
regions
bull C o m p u t e r - b a s e d v i s u a l
i n s p e c t i o n a r t i f i c i a l
intelligence
bull Use of complex administration
systems
single-use equipment in fillfinish operAtionsT h e a d o p t i o n o f d i s p o s -
ab le e qu ipme nt i n f i l l f i n -
i s h o p e r a t i o n s e l i m i n a t e s
cross-contamination risks and
adds flexibility in process scale
While regulatory rest r ic t ions
may be increased by the adop-
tion of such equipment single-
use appl icat ions a lso enable
contract manufactur ing orga-
nizat ions (CMOs) to increase
fac i l i t y ut i l i z at ion t h rough
multi-product strategies which
can decrease their cost of goods
Experts in the f ield discussed
these trends
Peter Pekos CEO and president
of Dalton Pharma Services a fill
finish CMO says ldquoFor a CMO
disposables can be attractive hellip
For example a disposable isola-
tor can be packed and stored pre-
sterilized for use when needed
a f ixed isolator requires f ixed
space at all times Disposables
also allow a CMO to handle proj-
ects using specific systems for
non-typical project needs such
as disposable isolators without
going to the expense of buying
permanent isolator infrastruc-
ture Disposables do not obviate
the need for technical expertise
hellip so the need for a CMO isnrsquot
really reduced In fact CMOs
with expertise in single-use sys-
tems hellip can make them more
attractiverdquo
Mar t ina Fe r neman cor po -
rate development manager at
Recipharm bel ieves that the
adoption of single-usedispos-
able equipment is now impacting
f i l l and f inish ldquoIn mult ipur-
pose sites the cleaning proce-
dures will become more crucial
to avoid cross contamination
Single-use equipment [also] has
the advantage of shorter lead
t imes and lower procurement
costs Since no cleaning proce-
dure has to be established and
aseptic connections are easier to
be built-up the use of single-
use equipment is not only faster
but also safer than conventional
equipmentrdquo
AutomAtion in full isolAtor unitsW hi le s ing le -use equ ipment
adoption may be one of the hot-
test f i l lf inish trend automa-
tion technologies may actually
be experiencing more rapid rates
of implementation among bio-
manufacturers Indeed sepa-
rate results from BioPlanrsquos 12th
annual study suggest that the
industry wi l l be as l ikely to
implement automation technolo-
gies as they will use single-use
f i l l-f inish devices dur ing the
next 24 months
The removal of human factors
is a key to improving product
quality Isolators and automa-
tion are therefore key drivers
as facilities seek to improve their
i n f r a s t r u c t u r e I n nov a t io n
around equipment and facilities
able to handle multiple products
is going to continue Flexibility
is key as the reduced flexibility
of isolators (and higher cost) in
relation to traditional restricted
access barrier (RAB) systems may
deter some CMOs from adopt-
ing isolators The jury is st i l l
out because the decision fac-
tors between RAB and isolators
are complex and this tends to be
a high-cost decision often left
to the larger f illf inish CMOs
ldquoCMOs will adopt isolator tech-
nologies in their processes to
meet industry needs and reduce
r isk In some cases this wil l
also include disposable isolators
which can offer the benefits of
fixed isolators but add a degree
of f lexibil ity to the manufac-
turerrdquo Pekos notes
According to Ferneman adopt-
ing automat ion in ful l isola-
tor units to reduce the need for
operators is a trend seen in the
CMO market ldquoUse of barr ier
technology (RABS or isolators)
should ensure optimal protec-
t ion of ster i le areas Isolators
bear a better potential to prevent
biocontamination Since the iso-
lator is a closed system a lower
air quality than in RABS systems
can be usedrdquo For freeze-dried
products the RABS system is a
better choice because loading
has to be performed in class AB
surrounding
Fig
ur
e 1
is
co
ur
te
sy
oF
th
e a
ut
ho
r
Figure 1 selected bioprocessing fllfnish trends in 2015
Single-usedisposable equipment
adoption55
36
35Facilities becoming more multi-
product-use oriented
Automation in full isolator units
reduce need for operators
More compounds More accuratelyFaster than ever
Quantitation transformed
Todayrsquos range of possible therapeutic agents from small molecules to peptides to antibodies and
ADCrsquos makes quantitative bioanalysis a challenge Quantify potential therapeutics faster and more
accurately with our new portfolio of LC-MS instruments sample prep solutions and software HRAM
solutions using Thermo Scienti ctrade Orbitraptrade MS enables selectivity for complex molecules while
triple quadrupole MS delivers SRM sensitivity and speed to detect targeted compounds more quickly
Meet todayrsquos challenges with us and together wersquoll transform quantitative bioanalysis
Thermo Scienti ctrade Orbitrap Fusiontrade MSUnprecedented depth of analysis and
throughput for biological discovery
Thermo Scienti ctrade TSQ Quantivatrade MSLeading SRM sensitivity and speed
in a triple quadrupole MSMS
Thermo Scienti ctrade Q Exactivetrade MSScreen and quantify known and unknown targets with HRAM Orbitrap technology
copy 2
014
Ther
mo
Fish
er S
cien
tifi c
Inc
All
right
s re
serv
ed A
ll tr
adem
arks
are
th
e pr
oper
ty o
f The
rmo
Fish
er S
cien
tifi c
and
its
subs
idia
ries
bull Discover more at thermoscienti ccomquan-transformed
24 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources FillFinish
Cmos stAying
AheAd of the Curve
In the whitepaper on in-house
fillfinish operations for recom-
binant therapeutics (2) BioPlan
found relatively low average in-
house capacity utilization rates
for lyophilization (55) pre-filled
devices (58) and vialing (70)
This finding suggests that for fill
finish CMOs the real value isnrsquot
necessarily in providing additional
flexible capacity but rather in posi-
tioning themselves as providing
highly sophisticated and novel
technologies and expertise in fill
finish services Indeed CMOs are
expected to have state-of-the-art
equipment As Pekos notes ldquoCMOs
who implement flexible and inno-
vative technologies to make man-
ufacturing or development more
efficient faster compliant or more
economical all serve to make them
more attractive to customersrdquo
For CMOs that make use of
innovative fillfinish technologies
there appears to be a good deal
of demand Results from BioPlanrsquos
annual studies indicate that fill
finish services are among the most
widely and heavily outsourced
biomanufacturing activities today
and are also among the activities
that biomanufacturers are most
likely to outsource at significantly
higher levels in the future
Biomanufacturers and CMOs are
actively looking to their fillfin-
ish equipment suppliers and are
beginning to demand additional
new technologies innovation and
product development In 2014 for
example when the top areas that
biomanufacturers wanted their
suppliers to focus their develop-
ment efforts on were measured
fillfinish services topped the list
cited by 23 of biomanufacturers
Not only did that figure represent
a substantial increase from years
past (13 in 2011) but it was also
ahead of other services including
upstream and downstream process
development services
Fillfinish will continue
to be an area of
growth for CMOs
There are a number of areas in
which suppliers can add value to
fillfinish innovation according
to industry experts Jim Agalloco
president of Agalloco amp Associates
in Belle Mead NJ says ldquovendors of
equipment and components to fill
finish must continue their roles as
technology leaders Innovation in
this market has always been sup-
plier driven because the operating
firms do not have the necessary
expertise Collaboration between
equipment manufacturers and
component suppliers is essential
for implementation of new con-
tainer systems single-use dispos-
ables and other advancesrdquo
Ronald Malone senior principal
scientist at Novartis Vaccines says
ldquoBlow-fill-seal containerclosure
systems are beneficial for small-
volume parenterals However over-
all cost may still be higher per unit
than traditional vialstopper fill-
ing Vaccines and biologicals can
benefit from single-dose disposable
systems that drive down the cost
of the containerclosure system
This will assist the global supply to
developing world countries where
these products are truly neededrdquo
W B W i e d e r s e i m o f
PharmaBioSource in Wayne PA
states ldquoWe see smaller higher
technical facilities inclusive of dis-
posables (isolators and not RABS)
and advanced aseptic work cell
technology as the wave of the
futurerdquo
WhAt does the future hold
BioPlanrsquos survey data and indus-
try interviews indicate that fill
f inish will continue to be an
area of growth for CMOs that
maintain the required technical
quality and regulatory expertise
in this segment Experts have
taken note of CMOsrsquo introduc-
tion of smaller filling machines
for syringes or vials a trend that
may be in response to the indus-
try-wide move towards smaller-
scale manufactur ing projects
This shift may be accelerated by
the advent of biosimilars which
should provide an increasing
number of projects for fillfin-
ish CMOs although likely on a
smaller scale This increase in
projects could lead to potential
mergers and acquisitions with
some experts noting that fillfin-
ish CMOs are already engaging
in this trend toward larger capac-
ity and global operations
Indeed within the past 18
months a number of acquisi-
tions have occurred including
Pfizerrsquos acquisitions of Hospira
a nd In noPha r ma Pat heonrsquos
mergers in the contract services
space IDT Biolog ika invest-
ments Vet ter invest ing USD
$100 million to upgrade fill-fin-
ish facilities in the United States
a nd Ger ma ny a nd Ba xte r rsquos
investment in German facilities
and numerous others (3)
For CMOs to stay ahead of the
curve they will likely need to
continue to adopt disposables
technologies and advance their
automation in full isolators Ray
Cardin of PharMax Consulting
says ldquoIncreased use of dispos-
able pre-sterilized f illing tech-
nologies [are future trends] The
combination of these pre-ster-
ilized units with the coming of
age of ster i le connectors that
provide high sterility assurance
wwwbiopharminternationalcom June 2015 BioPharm International eBook 25
Outsourcing Resources FillFinish
Biologics Development and Manufacturing Trends Part II
Eric Langer Managing Partner BioPlan Associates talks about the results from BioPlan AssociatesOtilde 12th Annual Report and Survey of Biopharmaceutical Manufacturing Capacity and Production Langer discusses what respondents indicated as the number one trend in biologics manufacturing improving efficiencies and the biosimilars market
in less clean environments is
changing the way aseptic pro-
cesses are designedrdquo
Gordon Leichter PhD Eastern
r e g io n a l s a l e s m a n a ge r a t
Belimed in Charleston SC states
ldquoAutomat ion in fu l l i solators
wil l el iminate operator inter-
vention and laser-sealed vials
Automation will become more
integral to building automation
and enterprise systemsrdquo
Douglas Stockdale vice-presi-
dent CMCTechnical Operations
Hi l lhurst Biopharmaceut ica ls
Los Angeles CA says ldquoIndustry
will continue pushing the PAT
[process analytical technology]
envelope to f ind a lternat ive
methods to improve in-process
methodologies and processesrdquo
Fe r ne ma n add s ldquoCu r r e nt
trends in fillfinish innovation
will probably focus the market
authorization holders on a few
strategic products resulting in
outsourcing of a bigger share of
products overallrdquo
ConClusion
Until recently the handling of
ster i le l iquids in the pharma-
ceutical industry has relied on
relatively consistent techniques
during the past 100 years with
relatively slow changes in tech-
nologies and regulations result-
ing in incremental improvements
in safety efficiency and prod-
uct quality During the past 20
years however costly biologics
have taken a prominent indus-
try role The value of these drugs
can often be measured in tens of
thousands per dose This has put
greater pressure on these down-
stream fillfinish operations to
ensure quality safety and cost-
efficiency are not compromised
at this crucial late stage in manu-
facturing Trends in fillfinish for
recombinant therapeutics include
the increased use of isolator
technologies more high-speed
operations and other innovative
approaches including single-use
processing As a result of industry
research BioPlan expects more
outsourcing of fillfinish opera-
tions in coming years
referenCes 1 BioPlan Associates 12th Annual
Report and Survey of Biopharmaceutical
Manufacturing Capacity and Production
(Rockville MD April 2015) www
bioplanassociatescom
2 BioPlan Associates Trends in Aseptic
Bioprocessing Capacity for the Fill and
Finish of Recombinant Biologics An
Analysis of US and European In-house
Capacity and Capacity Utilization (BioPlan
Associates December 2014)
3 Information derived from BioPlan
Associatesrsquo BioFacilities Newsletters Bp
26 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Cell Therapy
Taking a ldquoDevelopment-by-Designrdquo
Approach to Cell Therapies
Whether outsourcing or developing cell therapies in-house success demands a focus on quality cost of goods
and sustainability from the start
Agnes shAnley
Cell therapies both autologous and allo-
geneic have come a long way in just a
few years Countries around the world
most recently Japan have passed regula-
tions designed to speed development of
these treatments which are now a big and growing
global business
In 2013 according to the Pharmaceutical Research
and Manufacturers Association 69 cell therapies six
of them autologous or patient-specific treatments
were in clinical trials or being reviewed in the United
States alone 15 of them in Phase III trials (1)
The road is littered with failures however often
in clinical stages This has been traced to problems
with manufacturing and failure to understand pro-
cess requirements earlier in the development process
Table I outlines manufacturing issues
As a growing number of Big Pharma companies
explore the potential for immune regenerative and
other cell therapies equipment manufacturers includ-
Agnes shAnley is senior editor of BioPharm International
SC
IEP
RO
GE
tt
y Im
aG
ES
wwwcytovancecomResponsive Reliable Resourceful
Your partner in biopharmaceutical contract manufacturing of therapeutic proteins and antibodies from mammalian cell culture and microbial fermentation
28 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Cell Therapy
ing Pall Corp EMD Millipore
and GE Biosystems have set up
centers of excellence to focus on
developing equipment for this
new market Engineering compa-
nies such as Invetech and Instrom
are developing equipment specific
to this niche
More CDMos are entering
Cell therapy Market niChe
Demand for spec ia l i zed ce l l
t he rapy ma nu fac t u r ing a nd
development serv ices is a lso
growing and has attracted Lonza
Bioservices Cognate BioServices
WuXi AppTech and Roslin Cells
among others
NeoStem is fol low ing t wo
paths pursuing its own cel l
therapy pipel ine and explor-
ing contract services through
its contract development and
manufac t u r ing organ i zat ion
(CDMO) subsidiary Progenitor
Cell Therapy (PCT) With bases
in Irvine and Mountain View CA
and Allendale NJ PCT is cur-
rently working with Intrexon and
Fibrocell on connective tissue
treatments and with the United
K ingdomrsquos Adapt immune on
oncology treatments
A new CEO David Mazzo with
a doctorate in analytical chemis-
try and experience running both
private and public international
biopharma companies assumed
NeoStemrsquos leadership in January
He sees no conflict between grow-
ing a pipeline and a contract man-
ufacturing business
ldquoWe are not trying to be two
di f ferent companies and we
do not see the two competing
with each otherrdquo says Mazzo
in an interview with BioPharm
Inte rnat ionalrsquos s i ster publ ica-
tion Pharmaceutical Technology
during his second week on the
job ldquoInstead there is a symbi-
otic relationship between themrdquo
As he sees it the companyrsquos
track record in developing prod-
ucts should attract more spon-
sors ldquoProblems in development
usually occur at the interfaces
Our unique experience of having
lsquodone that beforersquo should be help-
fulrdquo he says
In January PCT entered a
partnership with Invetech an
equipment design firm based in
Australia with offices in San Diego
to develop automated equipment
for cell therapy manufacturing Fig
ur
e 1
is
co
ur
te
sy
oF
in
ve
te
ch
Figure 1 Part of an automated solution being developed by neostem and invetech Automating processes is key to reducing costs
wwwbiopharminternationalcom June 2015 BioPharm International eBook 29
Outsourcing Resources Cell Therapy
The two companies have already
been working together for a year
now honing the design and speci-
fications for the instrumentation
says NeoStemrsquos Chief Scientific
Officer (CSO) Robert Preti The
equipment will tackle cell therapyrsquos
most challenging side autologous
treatments where the manufactur-
ing lot is the patient dose adminis-
tered at the patientrsquos bedside
As Preti notes there really isnrsquot
much available today in the way
of automated equipment for cell
therapy especially on the autolo-
gous side The equipment will sep-
arate and wash cells among other
functions
labor-intensive
proCesses aDD Cost
So far Preti says the company
is evaluating the evolving equip-
ment in NeoStemrsquos own manu-
facturing efforts ldquoOne of the
largest commercial bottlenecks
is the heavy labor required by
processes especially for patient-
specific uses where one batch is
one patientrdquo
The cost of goods i s ver y
high Preti says ldquoSuccess long-
term will require a whole new
approach to development The
goal is to provide high qual-
ity and sustainabilityrdquo he says
Removing manual operat ions
and human error from the pro-
cess will be crucial
Invetech has been work ing
on cell therapy process scale-up
automation for more than 10
years and has successfully com-
pleted projects in North America
Europe and Asia for companies
that include Argos Therapeutics
Aa s t rom CCR M Hu mac y te
Innovacell Janssen kSep Systems
MolMed Organovo and ViaCyte
accord ing to R ichard Grant
global VP of the companyrsquos bio-
pharma operations who has been
with the company for more than
14 years
ldquoThe goal is to develop a mix
of equipment and manufactur-
ing st rateg ies that maximize
quality scalability and sustain-
ability with an eye toward cost-
effect iveness and commercial
viabilityrdquo Grant says Invetechrsquos
solutions typically tailor a mix of
OEM and customized equipment
to the clientrsquos processes The com-
pany recently commercialized
equipment used to manufacture
Janssenrsquos macular degeneration
treatment
Costs of current manufactur-
ing processes for both autologous
and allogeneic therapies are dif-
ficult to peg Last year experts
at University College London
attempted to pinpoint the cost and
overall economics of allogeneic
cell therapy using single-use tech-
nologies (2)
What is clear for both alloge-
neic and autologous systems is
that cell therapy development
Table I Manufacturing scenarios for cell therapies
Attributes Off-the-shelf therapiesPatient-specifc
therapies
Source material Always allogeneic Autologous or matched allogeneic
Batch size Many patients One patient
Business model Similar to pharmabiopharma New
Scaling Scale up (Increased lot size) Scale out (Increased number of lots)
Comparability vs scale Higher concern Lower concern
Manufacturing design drivers
Mission critical success + +++
Optimized process yield +++ +
Dimensional efficiency ++ +-
Integration +- ++
Automation + ++
source invetech
Table II Measuring comparability risk
Risk level Example Timing
None Automated sterility test Before biologics license application
Low Change in process unit op and cell journey is the same
Before 50 accrual in pivotal trials
Medium Change in process unit op and cell journey is similar
Before initiation of pivotal clinical trials
High Change in process unit op and the cell journey is matched
Some Phase II clinical data
source invetech
30 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Cell Therapy
and manufacturing costs are cur-
rently prohibitive ldquoThe starting
points can vary dramaticallyrdquo
Grant says He recalls one cus-
tomer whose autologous process
ran to $80000 per patient in early
stage clinical trials Automation
he says could reduce costs by
40ndash90 depending on the ther-
apy involved
DevelopMent by Design
But before one can automate any
process one must understand it
NeoStem and PCT like a growing
number of companies are taking
the principle of quality by design
(QbD) to heart in their work
Mazzo arguably one of few
life-science company CEOs to
even articulate the QbD concept
explains that the company has
gone a step further and broadened
the International Conference on
Harmonization guidances adopted
by FDA into ldquodevelopment by
designrdquo (DbD)
ldquoWe say first consider the end-
point then take process as is and
understand its unit operations
Develop inputs and outputs and
discrete steps and define the pro-
cess in a way that promotes under-
standingrdquo he says
ldquoThis is challenging given prod-
uct complexity but there is a need
to understand the mechanism of
action very well so you put each
process in this overall envelope
of DbD and consider the cost of
goods scalability and sustainabil-
ityrdquo Preti adds ldquoYou consider the
process from the end only this
time each batch is an individual
patientrdquo
The critical part is defining and
measuring process needs he says
ldquoProduct definition is very impor-
tant particularly the quality target
product profilerdquo explains Brian
Hampson VP of manufacturing
development and engineering at
PCT in an Oct 22 2014 webcast
for the International Society for
Cell Therapy (3)
have the enD in MinD
Such t h ings a s for mulat ion
issues dosage potency impu-
rities residuals and microbial
assurance need to be thought out
clearly from the start Hampson
says as well as indications for
use geographic market projec-
tions cost-of-goods targets and
IP issues
The profile needs to be a liv-
ing document that changes as the
product takes shape Hampson
says There is a tendency for peo-
ple in the industry to ignore the
product profile until they have
all the answers says Hampson
ldquoInstead it needs to be developed
really early even when you donrsquot
have all or even many of the
answers hellip you can leave them
as blanks and continue to review
add to and updaterdquo
The result is not only a tool for
better understanding the prod-
uct process and mechanism of
action but a communication tool
for stakeholders
When to start DbD for cell ther-
apies ldquoThe temptation is to begin
later in the game when you need
reasonable COGS and you need
to be sure of sustainable manu-
facturingrdquo says Hampson ldquoThe
key thing is comparability and
anticipating its implications early
in the clinical program It needs
to be flexible at the early stagesrdquo
Hampson says ldquoBut as you near
Phase III you need to lock in your
equipment evolves
In the bioreactor area there is great interest in moving from 2-D to 3-D processing to enable the processing of the cell volumes required something that companies such as Israelrsquos Pluristem have been doing for some time
Equipment designer Instrom is partnering with companies including BRTI Life Sciences to focus on 3-D cell matrix technologies developed by Dr John Brekke EMD Millipore has been partnering with PharmaCell BV to use its Mobius bioreactor platform to expand and harvest HepRG cells GE Sciences is also evaluating Wave and other systems and set up a center of excellence in Wales recently
In other equipment areas Pall Corp has been partnering with CMDG LLC on cord blood processing technology Following are some of the equipment manufacturers and systems applied in cell therapy development and manufacturing
bull Beckman Coulter bull Corning Cell Stacks and Cell Cube
bull EMD Millipore bull GE Biosciences
bull Thermo Scientificrsquos Nunc Cell Factories bull Pall Corp
wwwbiopharminternationalcom June 2015 BioPharm International eBook 31
Outsourcing Resources Cell Therapy
processrdquo Table II summarizes issues
and points where changes will be
easier
Thus Hampson suggests that
companies whether work ing
with CDMOs or in house think
through such issues as cost of
goods scale and sustainabil-
ity much earlier than they typi-
cally do today ldquoYou donrsquot need to
spend money on these issues but
you do need to think about themrdquo
Hampson says ldquoQuality must be
a key issue even at Phase II trials
and early action pays off laterrdquo
In addition he suggests that
companies th ink about the
e nt i r e p r o c e s s c o mp r e he n -
sively ldquoThere is often a tendency
to focus on the core processing
stepsrdquo Hampson says ldquoBut you
really need to think about every-
thing from collection of mate-
rial through to administration
of product to the patient and all
steps in betweenrdquo
For ce l l therapies d ispos -
able equipment and closed pro-
cesses can be an effective way to
reduce costs and improve quality
and compliance ldquoThey can allow
you to isolate different processes
so that they can share a Class
100000 cleanroom environmentrdquo
Hampson says
ldquoInvesting in automated informa-
tion management can also pay offrdquo
he says ldquowhere an electronic batch
record system that is fully validated
can enable release-by-exception
reducing error documentation
time and overall quality assurance
costsrdquo Hampson says
In addition he notes it is
important to look at costs compre-
hensively an increase in one cost
can for example reduce overhead
improve process sustainability and
cost of goods Table III outlines the
issues
regulations evolve
Cell therapy is still a new area
for regulators and as Preti says
some guidelines are clear and oth-
ers arenrsquot ldquoDevelopment by design
is needed throughout the pro-
cess but the piece we still struggle
with the most is mode of action
(MOA) and product characteriza-
tion Regulatory agencies under-
stand that it is difficult to pinpoint
MOArdquo
Preti emphasizes the importance
of working with regulators ldquoYou
can be in a position to inform and
influence regulations as products
are developedrdquo he says
For any company moving into
this brave new world top-level ques-
tions are needed Preti says empha-
sizing the following ldquoDo you have
an understanding of scale Can you
scale up from very small Can you
characterize the process and control
it for reliability and qualityrdquo
In the stem cell area in particu-
lar this is crucial Preti said since
the product relies heavily on the
process ldquoManufacturing can be
thought of as patient administra-
tion It cannot be separated in
the same way that it can for tra-
ditional medicinesrdquo For contract
suppliers he adds demonstrated
success will be important and
sponsors should consider whether
a prospective partner will be able
to stay with them for the long run
referenCes 1 P Hourd et al Regulatory Challenges
for the Manufacture and Scale-
Out of Autologous Cell Therapies
Massachusetts General Hospital
(Cambridge MA 2013)
2 S Farid et al Biotechnol Bioeng
111(1) 69-83 (January 2014)
3 R Grant Building Deliverable Cell
Therapeutics A Methodical Approach
to Manufacturing Development
(Webinar Oct 22 2014) bp
source invetech
Justifcation driversChange in cost
doseDevelopment
estimate
Unit Op Ref
Change decription
Comparability risk
Quality COGs Scale Sustainability LaborMaterials outplant
Cost Time
P-2 Process change 1 Medium X X darr $ $$$ TT
P-3 Process change 2 High X X X darr $$$ $$$$ TTT
P-4 Process change 3 Low X X darr $$ $$ TTT
P-2 Process change 4 Low X $$ T
QC-4 In-house QC test None X TT
QA-1Electronic Batch
RecordNone X X X
darr $$$$
TTTT
Table III Process changes timing and comparability risks cogs is cost of goods Qc is quality control
32 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Intellectual Property
Protecting Intellectual Property
in Engagements with CMOs
Important IP contractual provisions should be included when working with CMOs
Jennifer L CoLLins
Biotechnology and pharmaceutical companies
often engage contract CMOs to assist with
the development of their drugs This type
of arrangement naturally involves the devel-
opment of intellectual property (IP) so it is
important for both the CMO and the sponsor to iden-
tify pre-existing intellectual property and also define
how rights to new IP will be allocated protected and
enforced by and between the companies
If the arrangement with the CMO is a traditional fee-
for-service arrangement where the company pays the
CMO service fees to perform development work on its
behalf then generally all new IP (other than improve-
ments to the CMOrsquos manufacturing technology) will be
owned by the biotechnology or pharmaceutical com-
pany that engaged the CMO On the other hand if the
arrangement between the CMO and the biotechnology
or pharmaceutical company is more of a collaborative
arrangement where both parties share the costs of devel-
opment as well as any profits from the commercializa-
tion then IP concerns become much more complicated
In that case in addition to describing which party will
Jennifer L CoLLins is a technology and licensing attorney with Morningstar Law Group jcollinsmorningstarlawgroupcom
Fa
na
tic S
tud
ioG
ett
y Im
ag
es
wwwbiopharminternationalcom June 2015 BioPharm International eBook 33
Outsourcing Resources Intellectual Property
own the new IP the contract should
sort out which party will be respon-
sible for obtaining and maintaining
patents on the new IP controlling
litigation against infringers and
defending the IP against challenges
In addition the parties should agree
upfront on how the IP may be used
by each party following various ter-
mination events so that the parties
are not left fighting about such mat-
ters at a time when they may not be
inclined to agree to anything
In both arrangements without
specific contractual provisions to
define and protect the new IP a
biotechnology company or phar-
maceutical company that uses a
CMO for development is at risk of
losing control of and possibly own-
ership of important improvements
to its drugs This article discusses
IP contractual provisions that
should be included in each type of
arrangement
Fee-For-service
development work
Traditionally CMOs perform fee-for-
service development work where
a biotechnology or pharmaceutical
company engages the CMO to per-
form this work for a fixed fee In this
type of arrangement the CMO is a
service provider and typically takes
no ownership interest in the drug or
product that is being developed or
in improvements to an existing drug
or product that is being tested or
developed The contract governing
the relationship nevertheless must
be clear about the IP rights that are
owned and licensed by each party
If the contract does not provide
for proper assignments of IP to the
biotechnology or pharmaceutical
company then it is likely that the
CMO will own any improvements
or other inventions that it develops
in the performance of the develop-
ment services even if that is not the
intent of the parties
Without signed written contracts
that state otherwise under United
States patent law the inventor of
a patentable invention or improve-
ment will own the invention or
improvement even if the inventor
is engaged to develop the invention
or the improvement for a customer
or other third party To ensure
that the biotechnology company or
pharmaceutical company obtains
all the patent and other IP rights
in developments inventions and
improvements created in the per-
formance of services by the CMO
the governing contract between the
biotechnology company or phar-
maceutical company and the CMO
must include written present assign-
ments of those IP rights from the
CMO to the company Indeed based
on recent cases it is crucial that the
assignment clause in the contract
be a ldquopresentrdquo assignment mean-
ing that it must state specifically
that the CMO ldquohereby assignshelliprdquo
rather than a clause stating that the
CMO ldquoagrees to assignrdquo rights in the
future Otherwise the contract will
be interpreted as a promise to assign
rights in the future and the bio
pharmaceutical company will have
to go back to the CMO at some later
point in time for a separate writ-
ten assignment of rights to obtain
all patent and other IP rights in the
developments
While it sounds logical and
straightforward that the CMO
would assign all inventions created
in the development work to its cus-
tomer it is not always that simple
in practice What if the CMO devel-
ops an improvement to its manu-
facturing process in the course of
the development work Most CMOs
will want to reserve ownership of
any improvements to the CMOrsquos
existing IP and confidential infor-
mation This position is not unrea-
sonable as long as the customer
ultimately has the rights it needs in
all new inventions including those
owned by the CMO to take the drug
forward through further develop-
ment and commercialization One
must sort out IP allocation by sub-
ject matter To achieve this allo-
cation the development contract
typically will state that each party
retains ownership of all IP that it
owns as of the date of the contract
(all pre-existing intellectual prop-
erty) It will also state that the cus-
tomer owns its proprietary drug
and all improvements to the drug
or the customerrsquos confidential infor-
mation developed by either or both
parties The development contract
also may state more generally that
the customer owns all inventions
improvements and IP rights related
to the customerrsquos drug With respect
to the CMO and its IP the develop-
ment contract may state that the
CMO owns all improvements to the
CMOrsquos manufacturing process and
to its other pre-existing intellectual
property Again this reservation is
not unreasonable The customer
however should determine whether
it requires access to those improve-
ments or inventions to complete the
development and commercialization
of its drug If such access is necessary
the customer should either negotiate
a license (which may be royalty-free
or royalty-based depending on the
circumstances) to use such improve-
ments or inventions to develop and
commercialize the drug or the cus-
tomer should negotiate the terms
under which the CMO will continue
to use the improvements or inven-
tions to perform development work
andor manufacture the drug for the
customer
In the fee-for-service arrange-
ment the assignment and licensing
of IP rights in new inventions and
improvements is the key intellectual
property issue Intellectual property
considerations become much more
complicated when the biotechnol-
34 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Intellectual Property
ogy or pharmaceutical company
partners with a CMO in the devel-
opment of a new drug or product
where the parties share development
costs and profits from commercial-
ization of the drug or product
cmo as collaborator
Although not as common as the
fee-for-service arrangement a CMO
may partner with a biotechnology
or pharmaceutical company in the
development and commercialization
of a drug or product Generally both
parties are bringing pre-existing IP
to the collaboration such as a drug
from a biopharmaceutical com-
pany and proprietary drug delivery
technology from the CMO In this
scenario the CMO is taking a long-
term interest and often a part-own-
ership interest in the success of the
drug product
Instead of getting paid an hourly
rate or fixed fee for development
work on the drug product the CMO
may share the cost of development
work with the biotechnology or
pharmaceutical partner in exchange
for a share of the profits when the
drug or product is commercialized
Other costs involved in the develop-
ment and commercialization of the
drug or product that may be shared
include the cost of patent prosecu-
tion and the cost of patent litigation
if the drug product is challenged or
if it is misappropriated or infringed
To secure its interest in the profits
from commercialization of the drug
product the CMO may want to take
an ownership interest in the intel-
lectual property rights in the drug
product All of these issues must be
carefully addressed in the develop-
ment contract to avoid both finan-
cial and IP disputes
As with the fee-for-serv ice
arrangement the parties must
allocate ownership of intellectual
property rights pertaining to the
drug product to be commercialized
These rights include both pre-exist-
ing IP rights and new inventions
and improvements developed in
the course of the development con-
tract As with the fee-for-service
arrangement the parties typically
will retain rights to their respec-
tive pre-existing IP Intellectual
property rights to new inventions
and improvements however may
be shared by giving each party a
co-ownership interest in the intel-
lectual property Alternatively such
rights may be allocated by inventor-
ship with each party taking owner-
ship of developments that it invents
and with the parties jointly own-
ing jointly developed inventions
As another alternative the IP rights
may be allocated by subject matter
as in the fee-for-service arrangement
with each party owning improve-
ments and inventions related to its
pre-existing IP regardless of which
party invents those improvements
and inventions
Depending on how the pat-
ent applications are drafted the
IP rights may be ldquosliced and dicedrdquo
more finely One party for example
could own patent rights for a drug
product for one indication while the
other party owns patent rights for
the same drug product for another
indication Decisions about how
to allocate the IP rights should be
made in consultation with intel-
lectual property counsel and must
take into account the manner in
which the drug will be commercial-
ized If one party for example is
to commercialize the product in
North America and Europe and
the other party is to commercialize
the product in the rest of the world
then either the patent ownership
should be allocated by territory or
the development contract should
include exclusive cross-licenses of
each partyrsquos rights in all the intel-
lectual property necessary to com-
mercialize the product with the first
party having an exclusive license to
commercialize the product in North
America and Europe and the second
party having an exclusive license to
commercialize the product in the
rest of the world
If the parties are going to share
ownership of the IP related to the
drug product then the develop-
ment contract also should specify
which party is responsible for pros-
ecuting and maintaining patents
on the drug product Regardless of
which party is responsible for patent
prosecution and maintenance the
other party should be consulted and
involved in key decisions regard-
ing patent prosecution and main-
tenance Unless there are multiple
patents for different indications that
will be commercialized exclusively
by one party and unless each party
has exclusive rights to commercial-
ize the drug product in particular
geographic areas it generally makes
sense for one party to take the pri-
mary responsibility for patent pros-
ecution and maintenance globally
with the other party consulting and
sharing in the cost of the prosecu-
tion and maintenance in accordance
with the profit sharing The party
that is not responsible for prosecu-
tion and maintenance should have
a contractual right to approve patent
counsel and review and approve pat-
ent filings office action responses
and other communications with
patent registries before they are filed
or submitted so that the parties
agree on the proper prosecution and
maintenance strategy
Likewise the development con-
tract should allocate the rights and
responsibilities for asserting and
defending the patents pertaining to
the product in litigation Often these
rights and responsibilities are allo-
cated by territory according to com-
mercialization rights If one party
for example has the exclusive right
to commercialize the drug product
wwwbiopharminternationalcom June 2015 BioPharm International eBook 35
Outsourcing Resources Intellectual Property
in the US then that party would
have the first right and responsibil-
ity to assert the patents on the drug
product against potential infringers
and defend the patents on the drug
product against infringement claims
in the US Likewise if one party has
the exclusive right to commercial-
ize the drug product for a particular
indication then that party would
have the first right and responsibility
to assert or defend the patents per-
taining to the product with respect
to that indication Both scenarios
can present challenges First some
courts will not recognize an exclu-
sive licensee as having standing to
assert a patent That court might
only allow the owner of the patent
(and not the exclusive licensee) to
bring a lawsuit asserting the patent
It is crucial therefore that contrac-
tual provisions relating to patent liti-
gation require the party that owns
the patent to cooperate in any litiga-
tion and to join the suit as a party if
necessary
Another potential problem is that
any litigation that asserts the pat-
ent is likely to draw a counterclaim
that the patent is invalid thus put-
ting the patent itself at risk of invali-
dation While one party might be
threatened by a potential infringer
in a particular market or for a partic-
ular indication and therefore might
want to assert the patent against the
potential infringer the other party
might not want to put the patent at
risk as to other markets and other
indications For these reasons the
contractual provisions pertaining
to patent litigation must be care-
fully drafted in consultation with
intellectual property counsel who
understands standing issues and
the potential areas for dispute The
contractual provisions also should
include dispute resolution provi-
sions for situations when the parties
do not agree on whether a patent
should be asserted
Finally while the parties may
want and expect their relationship
to continue for the full term of the
patents and the development con-
tract the parties must carefully
consider the IP ramifications of an
early termination of the develop-
ment contract and the relationship
particularly if the development con-
tract is terminated for breach If the
parties are sharing in the ownership
commercialization and profits gen-
erated by the drug product devel-
oped by the collaboration then
all of that must be unwound upon
termination The development
contract should be as specific as
possible with respect to the effect of
various types of termination on the
intellectual property and contin-
ued commercialization of the drug
product In particular the parties
may agree that if the development
contract is terminated due to breach
by one party then that breaching
party must relinquish and transfer
all of its rights with respect to the
drug product to the other party to
allow the non-breaching party to
continue the commercialization of
the drug product post-termination
Whether the necessary rights are
assigned or licensed whether the
terminated party should receive a
royalty for the transfer or license of
those rights and what if any pre-
existing IP is licensed to enable the
non-breaching party to continue
commercializing the drug product
are all key factors for negotiation
The development contract should
also address other types of termi-
nation such as termination for
insolvency and termination with-
out cause (ie if one party decides
it no longer wants to commercial-
ize the drug product) In each case
the effect of termination on the IP
rights should be carefully analyzed
and a competent IP counsel should
carefully draft post-termination
assignments and licenses
conclusion
While IP lawyers are not equipped
with crystal balls they can be
extremely helpful in analyzing par-
ticular development commercializa-
tion and post-termination scenarios
all of which affect IP in a drug devel-
opment arrangement Contractual
provisions related to IP must be
carefully drafted to align with the
strategic business objectives of any
relationship and particularly one
whose purpose is the development
and commercialization of intellec-
tual property Without a clear con-
tract each collaborator is at risk of
losing important rights bp
Ad Index
AJINOMOTO ALTHEA 21
AVID BIOSERVICES INC 15
CYTOVANCE BIOLOGICS 27
EMERGENT BIOSOLUTIONS 13
EUROFINS LANCASTER LABORATORIES 7
SAFC BIOSCIENCES SIGMA ALDRICH 17
THERMO FISHER SCIENTIFIC 23
TOSOH BIOSCIENCE 11
WATERS CORP 3
Company Page
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ContentsBioPharmINTERNATIONAL
eBook Supplement to
The Science amp Business of Biopharmaceuticals
copy2015 Advanstar Communications Inc All rights reserved No part of this publication may be reproduced or transmitted in any form or by any means electronic or mechanical including by photocopy recording or information storage and retrieval without permission in writing from the publisher Authorization to photocopy items for internaleducational or personal use or the internaleducational or personal use of specific clients is granted by Advanstar Communications Inc for libraries and other users registered with the Copyright Clearance Center 222 Rosewood Dr Danvers MA 01923 978-750-8400 fax 978-646-8700 or visit httpwwwcopyrightcom online For uses beyond those listed above please direct your written request to Permission Dept fax 440-756-5255 or email mcannonadvanstarcom
UBM Life Sciences provides certain customer contact data (such as customersrsquo names addresses phone numbers and e-mail addresses) to third parties who wish to promote relevant products services and other opportunities that may be of interest to you If you do not want UBM Life Sciences to make your contact information available to third parties for marketing purposes simply call toll-free 866-529-2922 between the hours of 730 am and 5 pm CST and a customer service representative will assist you in removing your name from UBM Life Sciencesrsquo lists Outside the US please phone 218-740-6477
BioPharm International does not verify any claims or other information appearing in any of the advertisements contained in the publication and cannot take responsibility for any losses or other damages incurred by readers in reliance of such content
BioPharm International welcomes unsolicited articles manuscripts photographs illustrations and other materials but cannot be held responsible for their safekeeping or return
To subscribe call toll-free 888-527-7008 Outside the US call 218-740-6477
Outsourcing Resources 2015
QUALITY RISK MANAGEMENT
QRM Tools for Contract BiomanufacturingBikash ChatterjeeQuality-risk-management tools can assist biopharma
companies in mitigating risks when outsourcing crucial
elements of the drug-development process 4
VIDEO INTERVIEW
Biologics Development and Manufacturing Trends Part IAn Interview with Eric Langer BioPlan Associates 10
CROCMO VIEWPOINTS
Biopharma Advances Demand Specialized ExpertiseContract service providers share insights
on biopharma market developments and
the implications of biosimilar drug approvals 12
FILLFINISH
FillFinish TrendsEric LangerAutomation and disposables
continue to reduce human error 20
VIDEO INTERVIEW
Biologics Development and Manufacturing Trends Part IIAn Interview with Eric Langer BioPlan Associates 25
CELL THERAPY
Taking a ldquoDevelopment-by-Designrdquo Approach to Cell TherapiesAgnes ShanleyWhether outsourcing or developing cell therapies
in-house success demands a focus on quality
cost of goods and sustainability from the start 26
INTELLECTUAL PROPERTY
Protecting Intellectual Property in Engagements with CMOsJennifer L CollinsImportant IP contractual provisions
should be included when working with CMOs 32
Ad Index 35
Cover Scott Tysick Getty Images Dan Ward
EDITORIAL
Editorial Director Rita Peters rpetersadvanstarcom
Senior Editor Agnes Shanley ashanleyadvanstarcom
Managing Editor Susan Haigney shaigneyadvanstarcom
Science Editor Randi Hernandez rhernandezadvanstarcom
Science Editor Adeline Siew PhD asiewadvanstarcom
Community Editor Ashley Roberts arobertsadvanstarcom
Art Director Dan Ward dwardmediaadvanstarcom
Contributing Editors Jill Wechsler Jim Miller Eric Langer Anurag Rathore Jerold Martin Simon Chalk and Cynthia A Challener PhD Correspondent Sean Milmo (Europe smilmobtconnectcom)
ADVERTISING
Publisher Mike Tracey mtraceyadvanstarcom
WestMid-West Sales Manager Steve Hermer shermeradvanstarcom
East Coast Sales Manager Scott Vail svailadvanstarcom
European Sales Manager Chris Lawson clawsonadvanstarcom
European Sales Manager Wayne Blow wblowadvanstarcom
Direct List Rentals Tamara Phillips tphillipsadvanstarcomReprints 877-652-5295 ext 121 bkolbwrightsmediacom Outside US UK direct dial 281-419-5725 Ext 121
PRODUCTION
Production Manager Jesse Singer jsingermediaadvanstarcom
AUDIENCE DEVELOPMENT
Audience Development Rochelle Ballou rballouadvanstarcom
UBM LIFE SCIENCES
Joe Loggia Chief Executive Officer Tom Ehardt Executive Vice-President Life Sciences Georgiann DeCenzo Executive Vice-President Chris DeMoulin Executive Vice-President Rebecca Evangelou Executive Vice-President Business Systems Julie Molleston Executive Vice-President Human Resources Mike Alic Executive Vice-President Strategy amp Business Development Tracy Harris Sr Vice-President Dave Esola Vice-President General Manager PharmScience Group Michael Bernstein Vice-President Legal Francis Heid Vice-President Media Operations Adele Hartwick Vice-President Treasurer amp Controller
UBM AMERICASSally Shankland Chief Executive Officer Brian Field Chief Operating Officer Margaret Kohler Chief Financial Officer
UBM PLCTim Cobbold Chief Executive Officer Andrew Crow Group Operations Director Robert Gray Chief Financial Officer Dame Helen Alexander Chairman
wwwbiopharminternationalcom June 2015 BioPharm International eBook 2
PHARMACEUTICAL n HEALTH SCIENCES n FOOD n ENVIRONMENTAL n CHEMICAL MATERIALS
With great detection power comes great possibility To eliminate the unknown find out how Waters ACQUITY QDareg Mass Detector is making heroes out of chromatographers like you Visit waterscomPRESSON
copy2015 Waters Corporation Waters ACQUITY QDa and The Science of Whatrsquos Possible are registered trademarks of Waters Corporation
4 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Quality Risk Management
QRM Tools for
Contract Biomanufacturing
Quality-risk-management tools can assist biopharma companies in mitigating risks when outsourcing crucial elements
of the drug-development process
BIKASH CHATTERJEE
Well-defined well-executed risk man-
agement is a central component of
any clinical strategy and there are
many steps in the drug-development
lifecycle where risk management
brings value For decision making and overall program
risk reduction a quality-risk-management (QRM) pro-
gram is an effective means for biotech companies to
mitigate the risks associated with outsourcing crucial
elements of the drug-development lifecycle Risks only
get larger when activities typically performed inter-
nally during the development process are outsourced
to a contract service provider
The role of contract service providers has grown
over the past decade as the industry has worked to
shrink time-to-market by outsourcing major pieces
of the drug-development lifecycle Today because of
this heightened responsibility for a programrsquos success
organizations tend to rely on contract service provid-
ers as partners
Selecting an outsourcing partner is more complex
than simply comparing factors like on-time-in-full
BIKASH CHATTERJEE is president and CSO of Pharmatech Associates
Mic
ha
el H
Ge
ttyim
ag
es
wwwbiopharminternationalcom June 2015 BioPharm International eBook 5
Outsourcing Resources Quality Risk Management
(OTIF) delivery performance right-
the-first-time (RTF) cycle-time etc
The complexity of the global sup-
ply chain and global compliance
warrants some form of structured
evaluation tool QRM provides this
framework
Production risks are not lim-
ited to time-to-market concerns
Emerging biotherapeutics such as
antibody drug conjugates (ADCs)
and chimeric antigen receptorT
cel l technology (CAR-T) pro -
vide the potential for significant
advances in cancer treatment
but also bring with them a new
level of risk in terms of charac-
terization and quality assurance
Integrating QRM as part of the
program management process pro-
vides a mechanism for addressing
these risks and technical uncer-
tainties as the program progresses
QRM can be divided into two
major areas of application risk-
based decision-making and risk
analysis and management
QRM and Risk assessMent
QRM embodies a systematic pro-
cess for the assessment control
communication and review of
risks The core elements of QRM
are defined in the ICH Q9 guide-
line Quality Risk Management (1)
The principles of using risk as
part of a scientific approach to
drug development are captured
across ICH guidances ICH Q5
Quality of Biotechnological Products
(2) and ICH Q8 Pharmaceutical
Development (3) The European
Un ion a nd Ph a r m ac e ut ic a l
Inspec t ion Convent ion a nd
P h a r m a c e ut i c a l I n s p e c t io n
Co-operat ion Scheme (PICS)
have adopted these principles in
Annex 20 of the EU and PICS
GMP guides
Integ rat ing QR M elements
within the product development
process can raise organizational
FIG
UR
ES
CO
UR
TE
SY
OF
TH
E A
UT
HO
R
Figure 1 Product development risk analysis tools impacted by outsourcing (ADME is absorption distribution metabolism and
excretion PARNOR is proven acceptable rangenormal operating range AHP is analytic hierarchy process CDMO is contract
development manufacturing organization FMEA is failure mode and effects analysis RRD is risk ranking and fltering CMO is
contract manufacturing organization NPV is net present value)
Preclinical
De
ve
lop
me
nt
Ph
ase
Bio
log
ic Q
RM
Animal models ADME studies and
toxicology studies
AHP CDMO
selection
Decision-tree molecule selection
Pre-hazard analysis
Process cause-and
-effect analysis
AHP CMO selection
Process FMEA
RRF
Capital risk investment weighted
NVP calculation
Final RRF or FMEA
Intermediate scale up container-closure studies stability studies PARNOR
tech transfer method transfer fnal reference characterization
Final stability studies fll fnish PARNOR fnal control
strategy process performance
qualifcation lots attribute testing strategy
Ou
tso
urc
ing
QR
M
Phase 1 Phase 2 Phase 3
Quality target product profle formulation selection process design master and
working cell banks raw material characterization method development
initial critical quality attributes reference standard characterization
Figure 2 Preclinical analytical hierarchy process (AHP) structure
GOAL
Select the best
CDMO for
preclinical testing
CRITERIA
ALTERNATIVES
Experience with
route of deliverySchedule
Data analysis
capabilityCost
CDMO 3CDMO 2CDMO 1
6 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Quality Risk Management
visibility of program risks based
upon past program development
with long-term benefit For plat-
form products this means cap-
turing universal program risk
to learn from past risk analyses
and mitigation activities Mature
organizations link assessments to
program milestones moving the
context of risk management from
a supportive role to one of deci-
sion making and program man-
agement
QRM pRoduct developMent and outsouRcingThe principles of QRM can be use-
ful in almost every step of drug
development Risk analysis tools
are ideal as aids to evaluate cri-
teria leading to the selection of
a contract service provider One
important advantage of apply-
ing a QRM approach to product
development is the ability to
harness internal expertise from
across the organization and focus
decision-making using a com-
mon perspective The key process
development activities defined in
the Parenteral Drug Associationrsquos
Technical Report 42 (4) are not
the only development activities
and milestones that can leverage
a QRM framework The empha-
sis in biologic drug development
is predominantly on the drug
substance not the drug prod-
uct While both are important
to a successful drug filing drug
product activities often begin at
the fillfinish stage of the process
and are more standardized from a
design and execution perspective
Figure 1 illustrates which risk
analysis tools can assist in execut-
ing an outsourcing strategy in each
phase of product development
Similar risk analysis tools are color
coded and linked to each of the
four major phases of product devel-
opment prior to commercial manu-
facturing
analytic hieRaRchy pRocess The dec ision to outsource a
key program element to a con-
tract service provider may occur
regardless of the stage of product
development Early in the prod-
uctrsquos development in the preclin-
ical phase development activity
emphasis is on assessing the basic
characteristics of the molecule in
animal models Pharmacokinetic
and pha r macody namic mea-
surements and absorptiondis-
tributionmetabolismexcretion
(ADME) studies are typica l ly
conducted in rodent and non-
rodent mammalian animal mod-
els Selection criteria to assess an
appropriate service provider can
include route of delivery capabil-
ity and experience data analysis
capability schedule and budget-
ary considerat ions The r ight
service provider will contribute
to the success of a programrsquos
investigational new drug filing
and impact the overall program
schedule
One effective risk-analysis tool
to address this outsourcing deci-
sion is Analytic hierarchy process
(AHP) AHP allows the evaluation
to translate subjective opinions
or preferences into measurable
numeric relations to make deci-
sions in a rational way AHP uses
pairwise comparison for consis-
tency in the evaluation of each
criterion for each circumstance
Using AHP requires that the alter-
natives be structured as a hierar-
chy as shown in Figure 2
Figure 3 Preliminary hazard analysis
Attribute Key word Deviation Cause EffectCurrent
safeguardscontrolsHazard levels
ProductNumeric
level
Assay HighOutside tolerance
limitsFillfinish error
Possible hypoglycemia
Sampling manufacturing weight check
High Ampoules 3
Assay LowOutside tolerance
limitsFillfinish error
Possible hyperglycemia
Sampling manufacturing weight check
Medium Ampoules 2
Sterility Low Non-sterilePoor aseptic
handlingInfection
Media fills and environmental monitoring
High Ampoules 3
Keyword Defnition
Low Low risk to patient
Medium Potential risk to form fit and function of drug which could do harm to patient
High Significant risk to a patient andor form fit and function of product
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8 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Quality Risk Management
Within the AHP hierarchy it is
important to establish the priori-
ties for each element Priorities
are the numbers associated with
the nodes to represent the rela-
tive weights of the nodes in any
group Similar to probabilities
priorities are absolute numbers
In executing the method criteria
are evaluated against the goal to
establish priority Similarly each
alternative is evaluated against
each criteria With these two ele-
ments complete the priority of
each alternative can be calcu-
lated against the goal to select
the appropriate contract develop-
ment and manufacturing organi-
zation (CDMO)
decision-tRee analysis
As a molecule passes the pre-
clinical development program
typically an organization will
evaluate the information to make
a gono-go decision to move the
program forward A tool that can
be useful in quantifying this
phase-gate decision is a decision
tree analysis a decision support
tool that uses a tree-like graph of
decisions and their possible con-
sequences including chance event
outcomes and resource costs
One area where a decision
tree has been a useful tool is in
biologic companies with a com-
bination-product development
program Some biologics may inte-
grate a device component such as
an auto-injector as opposed to
an IV delivery The advantage of
an auto-injector is that it is por-
table and able to deliver outside
a healthcare setting Quantifying
the organizat ionrsquos abi l ity to
develop and commercially support
a device component is a signifi-
cant program risk consideration
for many biotech companies
Choosing a contract manufacturer
with experience in devices and
drugs may drive down technical
and program risk but could com-
plicate the overall supply chain
With a decision-tree analysis an
organization can quantify the cost
of moving forward with each alter-
native while flagging uncertain-
ties One course of action may be
to address the uncertainties and
drive the likelihood of success to
an acceptable level before proceed-
ing with any program
AHP and decision-tree analy-
sis can be used anywhere in the
drug development process where
in-house manufacturing versus
outsourcing alternatives must be
evaluated
pReliMinaRy hazaRd analysis
In the United States Phase I
activities involve satisfying FDArsquos
latest expec tat ions in terms
of product design and process
under sta nd ing For mulat ion
selection is one of the first mile-
stones in a Phase I program A
pre l iminar y haza rd ana lysi s
(PHA) is typically performed early
in a program to identify known
hazards determine their causes
effects and probability and to
establish initial design and proce-
dural requirements to eliminate
or control them
While PHA can be used as an
early evaluation of any risk situ-
ation one effective application
of PHA is to evaluate the prod-
uct design from a patient safety
perspective as a precursor to pro-
Figure 4 Monoclonal antibody process train cause-and-effect matrix
Critical quality attributes (Risk level)
Preculture and expansion
Fermentation and harvest
CentrifugeCation exchange chromatography
Anion exchange chromatography
Viral filtrationConcentration
and diafiltration
Vial filling
Appearance (M)
Impurities (H)
Protein content (H)
Immunoreactivity (H)
Purity (H)
Bioburden (H)
In-process controls
Fill weight check (M)
Visual Inspection (M L)
Risk Key None Low Med High
wwwbiopharminternationalcom June 2015 BioPharm International eBook 9
Outsourcing Resources Quality Risk Management
cess design The PHA can use a
simple heat map of low medium
and high-severity assessments
An example of a partial PHA is
shown in Figure 3 Any evalu-
ation that results in a hazard
level of medium or high should
be included as part of the control
strategy for the process
pRocess cause-
and-effect MatRix
As the program moves into the
process design and scale up or
technology transfer activities a
cause-and-effects (CampE) analy-
sis is a simple and effective tool
to determine which unit opera-
tions impact the drug productrsquos
final critical quality attributes
(CQAs) These unit operations
could then focus on determin-
ing if there are critical control
parameters (CPPs) that impact
the final productrsquos CQAs If there
are CPPs present a f inal con-
trol strategy should ref lect the
potential risk of straying from
the process design space for that
unit operation An example of a
simple CampE analysis for a sim-
ple monoclonal antibody (mAb)
process train is given in Figure 4
The CampE matrix can assign val-
ues descriptors or in this case
integrate a heat map to commu-
nicate potential risk
failuRe Modes
and effects analysis
Failure modes and effects analy-
sis (FMEA) is a systematic pro-
active method for evaluating a
process to identify where and
how it might fail and to assess
the relat ive impact of d i f fer-
ent failures It is used to iden-
tify the parts of the process that
represent the greatest risk to the
productrsquos performance FMEAs
are one of the most commonly
used risk analysis tools used in
the biopharma industry today
FMEAs are based upon risk rank-
ing tables that provide a com-
mon definition for ranking the
severity of a failure and the like-
lihood of occurrence These are
typically ranked on a scale of 1
to 10 then multiplied together
to give a r isk priority number
(RPN) For FMEAs that do not
intend to address potential fail-
ure modes dur ing the design
activity such as process FMEAs
an additional evaluation cate-
gorymdashProbability of Detectionmdash
is used It is not unusual for an
FMEA to generate a large num-
ber of potential failure modes
FMEAs can be effective as part of
deviation and corrective and pre-
ventive action (CAPA) root cause
investigations as a structured
tool for identifying and demon-
strating a true root cause for a
non-conformance
Risk Ranking and filteRing
Risk ranking and filtering (RRF)
is a common facilitation method
used for risk management and
is also known as relative r isk
ranking risk indexing and risk
matrix and filtering The intent
is to provide sharper focus to the
critical risks within a systemmdash
typically from a large and com-
plex set of risk scenarios RRF
works by breaking down overall
r isk into risk components and
evaluat ing those components
and their individual contribu-
tions to overall risk RRF is most
suited to comparing and manag-
ing a portfolio of complex risks
RRF like all risk-assessment tools
requires agreed-upon sets of risk
factors and evaluation criteria
RRF provides a means to priori-
tize and filter individual risks
by combining the evaluations of
risk components against set cri-
teria into a single risk score
Applying RRF requires identi-
fying the primary risk question
then defining the head topics
and subtopics An example of
a CDMO audit risk assessment
structure is shown in Figure 5
Figure 5 Risk ranking and fltering (RRF) outsourcing example structure
Risk question
Subtopics
Head topics
What should the audit frequency be at the CDMO to ensure GMP compliance
Engineering
Calibration Manufacturing
Labeling
Supplier
Storage
Changecontrol
Batch release
Deviations
Corrective and
preventive actions
Validation
Packaging
QC testing
Maintenance
Operations ComplianceSupplychain
10 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Quality Risk Management
Biologics Development and Manufacturing Trends Part I
Eric Langer Managing Partner BioPlan Associates talks about the results from BioPlan Associatesrsquo 12th Annual Report and Survey of Biopharmaceutical Manufacturing Capacity and Production Trends in downstream processing protein A and single-use technology are discussed in Part I of this discussion For a discussion on productivity trends and biosimilars see Part II of the interview on page 25
With this structure in place
each risk can be assessed against
the probabil ity of occurrence
and severity impact and summa-
rized in a simple heat map
Risk-adjusted
net pResent value
For those decision milestones
that require investment in capi-
tal or resources a risk-adjusted
net present value (rNPV) is a
more acc urate method than
convent iona l N PV a na ly se s
for communicat ing the t r ue
cost of an investment decision
rNPV is sometimes referred to
as expected NPV (eNPV) rNPV
modifies the standard NPV cal-
cu lat ion of d iscounted cash-
f low analysis by mult iply ing
each cash flow by the estimated
probability that it occurs (the
estimated success rate) In the
language of probability theory
the rNPV is the expected value
rNPV is the standard valuation
method in the drug development
industry where sufficient data
exists to estimate success rates
for all RampD phases
conclusion
Biopharmaceutical products and
processes figure among the most
complex drug development life-
cycles within the industry A
structured QRM program that
integ rates s t anda rd i zed r i sk
assessment tools as part of the
overa l l product development
program can highlight the criti-
cal technical compliance and
regulatory risks when consider-
ing an outsourcing service pro-
vider The application of simple
QRM tools will provide structure
to the decision-making and eval-
uation process and when com-
bined with a simple knowledge
management framework provide
a foundation for all future prod-
uct programs Insight into the
risk and mitigation strategies can
reduce a programrsquos risk profile
significantly
RefeRences 1 ICH Q9 Quality Risk Management
(2005)
2 ICH Q5A-Q5E Quality of
Biotechnological Products
3 ICH Q8 Pharmaceutical Development
(2009)
4 Parenteral Drug Associates
Technical Report 42 Process
Validation for Protein Manufacturing
(2005) Bp
wwwtosohbiosciencecom
Tosoh Bioscience and TOYOPEARL are registered trademarks of Tosoh Corporation
Every mAb is unique
Your Protein A should be as well
TOSOH BIOSCIENCE LLC bull Customer service 866-527-3587 bull Technical service 800-366-4875 option 3
TOYOPEARLreg AF-rProtein A HC-650FHigh Capacity Protein A Resin for Monoclonal Antibody Purifi cation
0
10
20
30
40
50
60
70
80
2 35 5
Residence time (minutes)
DBC
for I
gG (g
L)
1 gL
5 gL
10 gLResin TOYOPEARL AF-rProtein A HC-650FColumn size 5 mm ID times 5 cmMobile phase 002 molL sodium phosphate 015 molL NaCl pH 74Residence time 2 35 5 minDetection UV 280 nm (10 breakthrough)Sample human IgG 1 5 10 gL in mobile phase
12 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources CROCMO Viewpoints
Biopharma Advances
Demand Specialized Expertise
Contract service providers share insights on biopharma market developments and the implications of biosimilar drug approvals
The ediTors of Biopharm international
The approval of the first biosimilar in the
United States as well as continuing consolida-
tion in the biopharma and contract develop-
ment and manufacturing markets are just
two indicators of the ongoing evolution of
biopharmaceutical development Representatives of
contract service providers shared observations trends
and projections with BioPharm International
Roundtable participants are Gary Chambers busi-
ness manager biopharma labs Europe SGS Bill
Hartzel director of strategic execution Catalent
Pharma Solutions Chris R Lively PhD director of
biopharmaceutical services PPD Scott Lorimer
VP Global Operations Patheon Biologics Eugene
McNally PhD executive director PPD Consulting
Rekha Patel global director large molecules devel-
opment and analytical solutions Catalent Pharma
Solutions and Mark Rogers vice-president SGS
Life Science Services USA
RegulatoRy and business tRends
BioPharm What regulatory changes have positively or
negatively impacted biopharmaceutical development
manufacturing processes
Ad
am
Ga
ult
Ge
tty Im
ag
es
info_contractmanufacturingebsicom | 1 800 441 4225 | emergentcontractmanufacturingcom
Aseptic FillFinish
Pre-Clinical Development
BDSManufacture
Clinical amp Commerical
Lyo CycleDevelopment
Emergent BioSolutions has a proven track record as a world-class provider of contract manufacturing services for both bulk drug substances and sterile injectable drug products Our team has successfully launched 20 commercial products and developedmanufactured over 200 clinical candidates for our clients
Emerging Capability
State-of-the art flexible single-use facility enables turnkey upstream and downstream solutions for clinical and commercial scale biopharmaceutical drug development
Emergent Contract Manufacturing
Enhancing Life in Every Single Dose
14 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources CROCMO Viewpoints
McNally (PPD Consulting) FDA
establ ished a new Off ice of
Pharmaceutical Quality in 2014
which we anticipate will have major
impacts on the biopharmaceuti-
cal development and manufactur-
ing process This reorganization
was designed to enhance quality
drug assessment by realigning sev-
eral elements of the preapproval
and surveillance inspection pro-
cess Integrating risk-based review
GMP inspection implementation
of quality by design and the new
FDA process validation guidance
within one office is expected to
significantly change the biophar-
maceutical development and manu-
facturing process
H a r t z e l ( C a t a l e n t P h a r m a
Solutions) In todayrsquos market there
are significant manufacturing
challenges in traditional glass vial
filling applications These chal-
lenges manifest in quality issues
with the final container closure
and may be related to microbial
contamination glass particulates
and foreign materials that lead to
necessary market action causing
supply issues
Lorimer (Patheon Biologics) The
greatest regulatory change in recent
times is the acceptance and approval
of biosimilars
BioPharm What business trends
have posit ively or negatively
impacted biopharmaceutical devel-
opmentmanufacturing processes
H a r t z e l ( C a t a l e n t P h a r m a
Solutions) Today there is a stronger
emphasis in the development life-
cycle on the delivery of the mol-
ecule to the patient and not just
the molecule itself Deliverydevice
experts are being added to teams
at Phase II to improve the delivery
beyond the traditional vial
Lively (PPD) Growing interest
in biopharmaceutical drug devel-
opment necessitates partnering
between clients and contractors to
increase industry capacity breadth
of capabilities expertise and
the experience required to bring
these drugs to market The client
will receive the most benefit by
selecting a high-quality contract
research organization (CRO) lab
that is able to meet its needs and
work collaboratively with the cli-
ent to ensure timely development
Lorimer (Patheon Biologics) The
trend of small biotech partner-
ing with large pharma for clinical
manufacturing and development
has certainly facilitated the full
development of more novel mol-
ecules Also the increasing trend
toward outsourcing of GMP biolog-
ics manufacturing ensures biopro-
cessing and testing is performed
by expert manufacturers with
proven track records in quality and
biomanufacturing This helps to
reduce the risk to clinical programs
and product safety
technicalscientific tRendsBioPharm Can you describe pro-
ductivity improvements your com-
pany has experienced from new
technologies
Patel (Catalent Pharma Solutions)
Catalent Pharma Solutions has sig-
nificant ongoing investments in
enhancing our large-molecule ana-
lytical capabilities and productiv-
ity to meet and advance current
industry needs Recent invest-
ments include the updatednew
technologies new assay strategies
and updated electronic systems
and processes
Lively (PPD) Evolving character-
ization expectations for biologics
have driven improvements in ana-
lytical equipment processes and
systems Ultra performance liquid
chromatography (UPLC) systems
have improved resolution and sen-
sitivity while reducing run times
In addition 2D high-performance
liquid chromatography (HPLC)
high-resolution mass spectrom-
etry (MS) allows for analysis of
samples incompatible with tradi-
tional MS Reporter gene bioassays
apply genetically engineered cell
lines both to directly model mech-
anisms of action and to amplify
assays for improved performance
with shorter incubations and
increased signalnoise relative to
standard bioassays
Lorimer (Patheon Biologics) The
main productivity improvement
has been increasing the through-
put of products in Patheonrsquos mul-
tiproduct biopharmaceutical GMP
facilities Single-use disposable
bioreactors and similar single-use
bioprocess equipment minimize
plant downtime which is tradi-
tionally required for line clearance
and product changeover The com-
plexity of product changeovers is
reduced by single-use technology
which decreases the need for clean-
in-place steam-in-place and qual-
ity control testing Typically line
Approval of the first
biosimilar in the
United States as well
as consolidation in
the biopharma and
contract development
and manufacturing
markets are just
two indicators of the
ongoing evolution of
biopharmaceutical
development
YOUR PARTNER FROM CONCEPT TO COMMERCIAL
1
42
5
3CELL LINE DEVELOPMENT
bull Cell line development amp selection
bull Cell line characterization amp optimization
bull Subcloning
bull Suspension adaptation
PROCESS DEVELOPMENT
bull Upstream development amp optimization
bull Media optimization feeding strategyamp design including DoE approach
bull Downstream development ampoptimization
bull Process optimizationprocess scale-up
bull Viral inactivationremoval study design
bull Formulation development amp screening
bull Up to 100L controlled bioreactors
bull Process validation
ANALYTICAL METHODS DEVELOPMENT
bull Development feasibility optimizationtransfer qualification amp validation of methods
bull Identity purity potency safety ampcharacterization
cGMP BIOMANUFACTURING
bull Commercially-licensed facility
bull Flexible manufacturing capabilities
bull Stainless steel amp single-use systemsfrom 100L-1000L
bull FDA EU amp ANVISA inspected
QUALITY AND REGULATORY SERVICES
bull Regulatory strategy amp submissions
bull cGMP CMC Section 7 support
bull In-process amp release testing
bull Stability testing
bull Reference standard generation
For more information please visit us at wwwavidbiocom or
e-mail businessdevelopmentavidbiocom
THE AVID
ADVANTAGE
16 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources CROCMO Viewpoints
clearance time is reduced by sev-
eral days
R o g e r s ( S G S L i f e S c i e n c e
Services) As an analytical ser-
vice provider SGS is constantly
in search of means to improve
its laboratory efficiencies partic-
ularly those that enhance turn-
around time without adversely
effecting quality With this in
mind substitution of HPLC for
UPLC rapid microbiolog ica l
screening methods and invest-
ment in automated approaches to
complex analytical problems such
as protein sequencing are now
being used within the SGS labora-
tory network
Chambers (SGS) From a CRO
point of view the main produc-
tivity improvements in analytics
have been from higher through-
put systems and data analysis The
move to these faster systems with
semiautomated data processing has
allowed us to improve turnaround
times which are passed on to cli-
ents in terms who win on faster
to market times and faster gono
decisions
BioPharm What additional tech-
nology improvements are needed
to improve the efficiency of bio-
processing
Lorimer (Patheon Biologics)
Process analytical technology
(PAT) for continuous monitoring of
bioprocesses is helping reduce the
variability on biopharmaceutical
manufacturing
Also biopharmaceutical devel-
opment and process validation
have been accelerated by the use
of mini-bioreactor systems which
enable a large amount of process
development data to be gener-
ated within a very short timeline
These multi-bioreactor systems
can reduce process develop -
ment timelines by months when
applied to early-stage or late-stage
bioprocesses
Rogers (SGS Life Science Services)
The development of many tech-
nologies follows a common path
from academia to commercial
application and nowhere is this
more evident than in the field of
bioprocessing In almost all exam-
ples the key to this progression
lies in the ability to simplify opera-
tional aspects of the technology
and improve throughput This has
in the past been clearly demon-
strated in for example the field of
mass spectrometry and is currently
evolving with techniques involved
in biophysical characterization
BioPharm What is the greatest
technical challenge facing biophar-
maceutical companies today
Hartzel (Catalent Pharma Solutions)
Cost to manufacture will continue
to be a major challenge for the
industry especially with the rise
of biosimilars and market pressures
to drive down the cost of medi-
cines However the products that
are coming to market are more
targeted which leads to smaller
batch sizes This is counter to the
manufacturing adage of being able
to leverage economies of scale to
drive out costs hence the need to
focus on alternatives technologies
and innovation to reduce the man-
ufacturing costs versus economies
of scale
Lively (PPD) Application of ana-
lytical techniques to better char-
acterize innovator and biosimilar
or follow-on products by physico-
chemical and functional methods
are required and will continue to
be driven by the complexity of
biologics development For exam-
ple changes in formulations may
cause different leachable profiles
requiring increasing emphasis on
extractablesleachables techniques
(ie high-resolution MS) to sup-
port characterization of formu-
lation effects identification of
degradation and impurities and
determination of their potential
impact through application of
potency bioassays
Lorimer (Patheon Biologics) Most
of the technical challenges for
manufacturing have been over-
come and the technologies for
development and manufactur-
ing have been widely adopted
Perhaps the greatest challenge is in
clinical development of novel and
originator molecules where in-vitro
model systems are still not a great
predictor of clinical performance
Rogers (SGS Life Science Services)
To highlight one technical chal-
lenge above all others in todayrsquos
biopharmaceutical industry is
very difficult The complexity of
biotherapeutics often results in
considerable technical difficul-
ties as for example in the area
of impurities recognition of host-
cell proteins (HCPs) and identi-
fication of structural variants at
trace levels are certainly high on
the list of technical concerns The
necessary inclusion of relatively
elaborate analytical techniques
such as sedimentation velocity
analytical ultracentrifugation (SVndash
AUC) within a traditional qual-
ity control release environment is
also not without problems
BioPharm What are the pros-
pects for continuous manufac-
turing to be firmly established in
bioprocessing What are the road-
blocks to implementation
Lorimer (Patheon Biologics)
Continuous product ion f rom
mammalian cell cultures has been
operated in perfusion bioreactors
for many years The main road-
block for continuous processing is
downstream processing of proteins
which currently demands discrete
and distinct unit operations for
removal of impurities removal
of contaminants concentration
of the products and formulation
each in separate controlled steps
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CELL CULTUREPERFORMANCE
copy2015 Sigma-Aldrich Co LLC All rights reserved Sigma-Aldrich SAFC and EX-CELL are trademarks of Sigma-Aldrich Co LLC registered in the US and other countries
NEXT GENERATION MEDIA PLATFORM
18 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources CROCMO Viewpoints
and which are not currently ame-
nable to continuous processing
the Rise of biosimilaRs
BioPharm What impact w i l l
biosimilar drugs have on bio-
pharma businesses bioprocessing
approaches and the contract ser-
vices market
Rogers (SGS Life Science Services)
The European biopharma land-
scape has already experienced
impact of the biosimilar drug mar-
ket leading to rapid expansion of
traditional small molecule generic
manufactures into the bio arena
Recent FDA approval of the Sandoz
biosimilar Zarixo may be the seed
for similar changes in the US pro-
viding a potential new line of busi-
ness for established pharmaceutical
companies Contract service pro-
viders such as SGS who already
have considerable experience with
biosimilars are able to offer exper-
tise to businesses new to this mar-
ket and will no doubt benefit from
such expansion in the US
Lively (PPD) Increased invest-
ment in biosimilars is driving
interest in improving and stream-
lining the development processes
as well as the sensitivity and scope
of characterization assays used to
compare biosimilars and innova-
tor drugs The expanding capac-
ity needs result in partnerships
between clients and their contrac-
tors with the systems experience
and expertise to achieve the qual-
ity and speed required while meet-
ing all regulatory expectations for
product approval
Chambers (SGS) With nearly
20 years exper ience perform-
ing biosimilar analysis the big-
gest impact had been the massive
increase in the characterization
needed for biosimilars compared
to innovators (although higher
standards are now needed for new
innovators too) This has resulted
CMOs Add Capabilities
Consolidation in the contract development and manufacturing market has resulted in new capabilities and facility expansions
In May 2015 CMC Biologics announced that it is expanding its Copenhagen Denmark facility to increase its manufacturing capacity through the installation of six 2000-L bioreactors The bioreactors can be run singly or in groups simultaneously or sequentially and are part of the companyrsquos signature Bioreactor 6Pack single-use program The Copenhagen installation will begin initial GMP production in November 2015 and will feature three bioreactors to start Three bioreactors will be added at a later date to complete the configuration Meanwhile the Bioreactor 6Pack at CMCrsquos Seattle facility will complete its first GMP run in mid-2015 and will be ready for commercial launch by the end of the year Through its recent expansions CMC plans to expand its global capacity by more than 30000 liters in the United States and Europe
Also in May 2015 SAFC announced an expansion to its St Louis MO facility to support the commercial-scale production of antibody-drug conjugates The facility which is expected to be online and operational in the third quarter of 2015 was designed to meet SafeBridge category 4 compound handling requirements for highly active or cytotoxic compounds The expansion of an existing Carlsbad CA location will enable SAFC to offer fillfinish capabilities of viral products to its clients in the gene therapy viral vaccine and immunotherapy sectors
Rentschler announced in March 2015 that a 2000-L bioreactor that the company commissioned and built in six months is up and running The bioreactor will be integrated into existing manufacturing suites containing two 1000-L single-use bioreactors according to a company statement The companyrsquos twin bioreactor systemmdashdesigned for running two main bioreactors in parallel with one shared downstream processing unitmdashwill be functional by 2017 The twin system is estimated to double the companyrsquos production capacities for cell culture-derived proteins
In December 2014 FUJIFILM Diosynth Biotechnologies USA (FDBU) acquired Kalon Biotherapeutics adding viral and cell-culture vaccine expertise and capabilities In other activity FDBU started construction of a three-story 62000-ft2 facility in Research Triangle Park NC in January 2015 to house the companyrsquos process and analytical research and development process sciences and stability groups The expected completion date is Q4 2015
In September 2014 PCI a provider of packaging services acquired Biotec Services International a provider of clinical-trial services and temperature-controlled pharmaceutical services headquartered in Bridgend Wales UK The addition expanded PCIrsquos presence in the European Union and added packaging storage and distribution capacity and consultative services for clinical-trial supplies In January 2015 Biotec announced the validation of its clinical supply facility expansion which added almost 50 to the companyrsquos clinical trial materials handling capacity
wwwbiopharminternationalcom June 2015 BioPharm International eBook 19
Outsourcing Resources CROCMO Viewpoints
in challenges in data handling
interpretation and data presenta-
tion Biosimilars have also caused
the re-emergence of orthogonal
techniques like size exclusion
chromatographyndashmulti-angle laser
light scattering (SEC-MALL) and
SV-AUC for aggregation and cir-
cular dichroism (CD) and fourier
transform infrared spectroscopy
(FTIR) for higher-order structure
as critical analyses to understand
and compare and detect subtle
higher-order structural differences
between innovator and biosimilar
samples
Hartzel (Catalent Pharma Solutions)
The rise of biosimilar drugs will
dawn the next generation of bio-
logic manufacturing and force
the industry to look at new ways
of manufacturing to drive down
costs Therefore the industry will
seek new manufacturing partners
with strong technical expertise to
drive out costs through innovation
and operational excellence
Lorimer (Patheon Biologics)
Genera l ly b ios imi la r d r ugs
will encourage competitiveness
within the biopharma sector
Biomanufacturers expect increased
pressure on cost of goods and
pricing Biopharmaceutical con-
tract service providers with a flex-
ible multi-product operation and
proven track record in the indus-
try are well placed to ensure care-
ful control of manufacturing costs
and product quality Processing
approaches wonrsquot change in terms
of technology but there will be a
greater emphasis on operational
excellence to reduce costly inef-
ficiencies and improve yields from
bioprocesses As more biosimilars
come to the forefront and as the
industry trend for outsourcing
continues increasing operational
flexibility while maintaining the
highest quality standards will be
the keys to success
business challenges
BioPharm What is the greatest
business challenge facing biophar-
maceutical companies today
Lively (PPD) As with all phar-
maceutical drug development the
greatest challenge is getting new
life-changing and potentially life-
saving drug candidates to mar-
ket Biopharmaceuticals face more
challenges than traditional small-
molecule drug products because
the science of characterization
of such biologic drugs is rapidly
evolving along with the regulatory
landscape Those companies that
are best able to successfully char-
acterize and differentiate innovator
and biosimilar products for safety
and efficacy will have the greatest
opportunity to benefit
the knowledge gap
BioPharm In what areas do you
see knowledge or expertise gaps in
current biopharmaceutical compa-
nies Why do these gaps exist
Lorimer (Patheon Biologics) There
is a gap in translating good sci-
ence to industrial applications of
technologies that provide for reli-
able efficient cost effective man-
ufacturing at commercial scale
Maintaining a focus during early
development on eventual commer-
cial manufacturing requirements
while balancing limited develop-
ment resources requires a broad
base of coordinated organiza-
tional skillsets and a disciplined
approach
Hartzel (Catalent Pharma Solutions)
Devicedelivery expertise is an
area that has a potential gap For
biologics the historic default con-
tainer closure has been a tradi-
tional glass vial As the healthcare
industry seeks ways to improve
patient care and reduce costs the
delivery to the patient needs to
adopt new technologies and this
is why we have seen a rise of pre-
filled syringes and autoinjectors
These technologies will continue
to evolve and so will the demand
for devicedelivery experts
Lively (PPD) One of the chal-
lenges we see is the various levels
of knowledge and expertise that
exist between biopharmaceutical
RampD and the testing and regula-
tory industries That differential is
impacting those industriesrsquo ability
to fully consider and effectively
implement expectations and guid-
ance for physicochemical and
functional characterization expec-
tations of biologic drugs
Lorimer (Patheon Biologics) The
commercial biopharmaceutical
industry demands global sourc-
ing of materials services supply
and ultimately distribution to each
patient This requires a robust inte-
grated supply chain to deliver high
value products to patients on-time
and at the right quality Doing this
reliably and efficiently with long
production lead times and uncer-
tain market sales forecasts is an
industry wide challenge
Speed-to-market remains a key
challenge to the development of
biopharmaceuticals Speedy first-
time-in-man clinical trials can be
a major hurdle for small biotech
companies and large pharma alike
Rogers (SGS Life Science Services)
I believe there continues to be a
significant problem in the level of
fundamental scientific expertise
within many biopharmaceutical
businesses In part this may be
attributed to the lsquokitrsquo and lsquoblack
boxrsquo approach of many modern
day technologies Due to the
complexity of many biopharma-
ceuticals their development and
success as therapeutics requires a
comprehensive range of scientific
disciplines and expertise which
can be difficult to fully realize
internally particularly for small
and mid-size companies bp
20 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources FillFinish
FillFinish Trends
Automation and disposables continue to reduce human error
Eric s LangEr
Fillfinish operations continue to be domi-
nated by trends in automation and the adop-
tion of single-use equipment But these are
by no means the only factors affecting these
high-value operations according to BioPlan
Associatesrsquo latest biomanufacturing study (1) Fill
finish processes are among the most outsourced
activities in biomanufacturing today and a service
providerrsquos capacity for vialing pre-filled devices
and lyophilization is crucial In a recently pub-
lished whitepaper (2) BioPlan Associates determined
that there is sufficient global in-house capacity
for biologics but the need continues to grow for
greater access to specialized outsourcing competence
Whatrsquos trending is significant improvements in auto-
mation and operations
AutomAtion And single use defining Cmo strAtegy
The top trends today involve automation and devel-
opment of better disposable technologies As part of
the BioPlan study biomanufacturers were asked to
select the trends they believe to be the most impor-
tant in fill and finish today The top three trends
are single-use equipment automation in full isolator
units and facilities becoming multi-product ori-
ented (see Figure 1)
Other important trends were noted including
bull Increased serialization and product labeling for
anti-counterfeiting
Eric s LangEr is president and managing partner at BioPlan Associates Inc elangerbioplanassociatescom tel 3019215979 wwwbioplanassociatescom
Ma
ria T
ou
tou
da
ki
Ge
tty Im
ag
es
WITH ALTHEA YOU HAVE THE POWER TO MAKE
You have the power to make a difference To make new therapeutics that improve quality of life and inspire a healthier world To do this you need a manufacturing partner who embraces your every challenge as its own who shares your unwavering tenacity and dedication from clinical studies through commercial success Thats The Power To Make
PLAY VIDEO
CONTRACT
MANUFACTURING
Q Development
Drug Substance
lj Drug Product
(D Al TH EA I THE POWER TO MAK A MEMBER OF THE AJINOMOTO GROUP
22 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources FillFinish
bull More f i l l f i n i sh fac i l i t ie s
o p e r a t i n g i n d e v e lo p i n g
regions
bull C o m p u t e r - b a s e d v i s u a l
i n s p e c t i o n a r t i f i c i a l
intelligence
bull Use of complex administration
systems
single-use equipment in fillfinish operAtionsT h e a d o p t i o n o f d i s p o s -
ab le e qu ipme nt i n f i l l f i n -
i s h o p e r a t i o n s e l i m i n a t e s
cross-contamination risks and
adds flexibility in process scale
While regulatory rest r ic t ions
may be increased by the adop-
tion of such equipment single-
use appl icat ions a lso enable
contract manufactur ing orga-
nizat ions (CMOs) to increase
fac i l i t y ut i l i z at ion t h rough
multi-product strategies which
can decrease their cost of goods
Experts in the f ield discussed
these trends
Peter Pekos CEO and president
of Dalton Pharma Services a fill
finish CMO says ldquoFor a CMO
disposables can be attractive hellip
For example a disposable isola-
tor can be packed and stored pre-
sterilized for use when needed
a f ixed isolator requires f ixed
space at all times Disposables
also allow a CMO to handle proj-
ects using specific systems for
non-typical project needs such
as disposable isolators without
going to the expense of buying
permanent isolator infrastruc-
ture Disposables do not obviate
the need for technical expertise
hellip so the need for a CMO isnrsquot
really reduced In fact CMOs
with expertise in single-use sys-
tems hellip can make them more
attractiverdquo
Mar t ina Fe r neman cor po -
rate development manager at
Recipharm bel ieves that the
adoption of single-usedispos-
able equipment is now impacting
f i l l and f inish ldquoIn mult ipur-
pose sites the cleaning proce-
dures will become more crucial
to avoid cross contamination
Single-use equipment [also] has
the advantage of shorter lead
t imes and lower procurement
costs Since no cleaning proce-
dure has to be established and
aseptic connections are easier to
be built-up the use of single-
use equipment is not only faster
but also safer than conventional
equipmentrdquo
AutomAtion in full isolAtor unitsW hi le s ing le -use equ ipment
adoption may be one of the hot-
test f i l lf inish trend automa-
tion technologies may actually
be experiencing more rapid rates
of implementation among bio-
manufacturers Indeed sepa-
rate results from BioPlanrsquos 12th
annual study suggest that the
industry wi l l be as l ikely to
implement automation technolo-
gies as they will use single-use
f i l l-f inish devices dur ing the
next 24 months
The removal of human factors
is a key to improving product
quality Isolators and automa-
tion are therefore key drivers
as facilities seek to improve their
i n f r a s t r u c t u r e I n nov a t io n
around equipment and facilities
able to handle multiple products
is going to continue Flexibility
is key as the reduced flexibility
of isolators (and higher cost) in
relation to traditional restricted
access barrier (RAB) systems may
deter some CMOs from adopt-
ing isolators The jury is st i l l
out because the decision fac-
tors between RAB and isolators
are complex and this tends to be
a high-cost decision often left
to the larger f illf inish CMOs
ldquoCMOs will adopt isolator tech-
nologies in their processes to
meet industry needs and reduce
r isk In some cases this wil l
also include disposable isolators
which can offer the benefits of
fixed isolators but add a degree
of f lexibil ity to the manufac-
turerrdquo Pekos notes
According to Ferneman adopt-
ing automat ion in ful l isola-
tor units to reduce the need for
operators is a trend seen in the
CMO market ldquoUse of barr ier
technology (RABS or isolators)
should ensure optimal protec-
t ion of ster i le areas Isolators
bear a better potential to prevent
biocontamination Since the iso-
lator is a closed system a lower
air quality than in RABS systems
can be usedrdquo For freeze-dried
products the RABS system is a
better choice because loading
has to be performed in class AB
surrounding
Fig
ur
e 1
is
co
ur
te
sy
oF
th
e a
ut
ho
r
Figure 1 selected bioprocessing fllfnish trends in 2015
Single-usedisposable equipment
adoption55
36
35Facilities becoming more multi-
product-use oriented
Automation in full isolator units
reduce need for operators
More compounds More accuratelyFaster than ever
Quantitation transformed
Todayrsquos range of possible therapeutic agents from small molecules to peptides to antibodies and
ADCrsquos makes quantitative bioanalysis a challenge Quantify potential therapeutics faster and more
accurately with our new portfolio of LC-MS instruments sample prep solutions and software HRAM
solutions using Thermo Scienti ctrade Orbitraptrade MS enables selectivity for complex molecules while
triple quadrupole MS delivers SRM sensitivity and speed to detect targeted compounds more quickly
Meet todayrsquos challenges with us and together wersquoll transform quantitative bioanalysis
Thermo Scienti ctrade Orbitrap Fusiontrade MSUnprecedented depth of analysis and
throughput for biological discovery
Thermo Scienti ctrade TSQ Quantivatrade MSLeading SRM sensitivity and speed
in a triple quadrupole MSMS
Thermo Scienti ctrade Q Exactivetrade MSScreen and quantify known and unknown targets with HRAM Orbitrap technology
copy 2
014
Ther
mo
Fish
er S
cien
tifi c
Inc
All
right
s re
serv
ed A
ll tr
adem
arks
are
th
e pr
oper
ty o
f The
rmo
Fish
er S
cien
tifi c
and
its
subs
idia
ries
bull Discover more at thermoscienti ccomquan-transformed
24 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources FillFinish
Cmos stAying
AheAd of the Curve
In the whitepaper on in-house
fillfinish operations for recom-
binant therapeutics (2) BioPlan
found relatively low average in-
house capacity utilization rates
for lyophilization (55) pre-filled
devices (58) and vialing (70)
This finding suggests that for fill
finish CMOs the real value isnrsquot
necessarily in providing additional
flexible capacity but rather in posi-
tioning themselves as providing
highly sophisticated and novel
technologies and expertise in fill
finish services Indeed CMOs are
expected to have state-of-the-art
equipment As Pekos notes ldquoCMOs
who implement flexible and inno-
vative technologies to make man-
ufacturing or development more
efficient faster compliant or more
economical all serve to make them
more attractive to customersrdquo
For CMOs that make use of
innovative fillfinish technologies
there appears to be a good deal
of demand Results from BioPlanrsquos
annual studies indicate that fill
finish services are among the most
widely and heavily outsourced
biomanufacturing activities today
and are also among the activities
that biomanufacturers are most
likely to outsource at significantly
higher levels in the future
Biomanufacturers and CMOs are
actively looking to their fillfin-
ish equipment suppliers and are
beginning to demand additional
new technologies innovation and
product development In 2014 for
example when the top areas that
biomanufacturers wanted their
suppliers to focus their develop-
ment efforts on were measured
fillfinish services topped the list
cited by 23 of biomanufacturers
Not only did that figure represent
a substantial increase from years
past (13 in 2011) but it was also
ahead of other services including
upstream and downstream process
development services
Fillfinish will continue
to be an area of
growth for CMOs
There are a number of areas in
which suppliers can add value to
fillfinish innovation according
to industry experts Jim Agalloco
president of Agalloco amp Associates
in Belle Mead NJ says ldquovendors of
equipment and components to fill
finish must continue their roles as
technology leaders Innovation in
this market has always been sup-
plier driven because the operating
firms do not have the necessary
expertise Collaboration between
equipment manufacturers and
component suppliers is essential
for implementation of new con-
tainer systems single-use dispos-
ables and other advancesrdquo
Ronald Malone senior principal
scientist at Novartis Vaccines says
ldquoBlow-fill-seal containerclosure
systems are beneficial for small-
volume parenterals However over-
all cost may still be higher per unit
than traditional vialstopper fill-
ing Vaccines and biologicals can
benefit from single-dose disposable
systems that drive down the cost
of the containerclosure system
This will assist the global supply to
developing world countries where
these products are truly neededrdquo
W B W i e d e r s e i m o f
PharmaBioSource in Wayne PA
states ldquoWe see smaller higher
technical facilities inclusive of dis-
posables (isolators and not RABS)
and advanced aseptic work cell
technology as the wave of the
futurerdquo
WhAt does the future hold
BioPlanrsquos survey data and indus-
try interviews indicate that fill
f inish will continue to be an
area of growth for CMOs that
maintain the required technical
quality and regulatory expertise
in this segment Experts have
taken note of CMOsrsquo introduc-
tion of smaller filling machines
for syringes or vials a trend that
may be in response to the indus-
try-wide move towards smaller-
scale manufactur ing projects
This shift may be accelerated by
the advent of biosimilars which
should provide an increasing
number of projects for fillfin-
ish CMOs although likely on a
smaller scale This increase in
projects could lead to potential
mergers and acquisitions with
some experts noting that fillfin-
ish CMOs are already engaging
in this trend toward larger capac-
ity and global operations
Indeed within the past 18
months a number of acquisi-
tions have occurred including
Pfizerrsquos acquisitions of Hospira
a nd In noPha r ma Pat heonrsquos
mergers in the contract services
space IDT Biolog ika invest-
ments Vet ter invest ing USD
$100 million to upgrade fill-fin-
ish facilities in the United States
a nd Ger ma ny a nd Ba xte r rsquos
investment in German facilities
and numerous others (3)
For CMOs to stay ahead of the
curve they will likely need to
continue to adopt disposables
technologies and advance their
automation in full isolators Ray
Cardin of PharMax Consulting
says ldquoIncreased use of dispos-
able pre-sterilized f illing tech-
nologies [are future trends] The
combination of these pre-ster-
ilized units with the coming of
age of ster i le connectors that
provide high sterility assurance
wwwbiopharminternationalcom June 2015 BioPharm International eBook 25
Outsourcing Resources FillFinish
Biologics Development and Manufacturing Trends Part II
Eric Langer Managing Partner BioPlan Associates talks about the results from BioPlan AssociatesOtilde 12th Annual Report and Survey of Biopharmaceutical Manufacturing Capacity and Production Langer discusses what respondents indicated as the number one trend in biologics manufacturing improving efficiencies and the biosimilars market
in less clean environments is
changing the way aseptic pro-
cesses are designedrdquo
Gordon Leichter PhD Eastern
r e g io n a l s a l e s m a n a ge r a t
Belimed in Charleston SC states
ldquoAutomat ion in fu l l i solators
wil l el iminate operator inter-
vention and laser-sealed vials
Automation will become more
integral to building automation
and enterprise systemsrdquo
Douglas Stockdale vice-presi-
dent CMCTechnical Operations
Hi l lhurst Biopharmaceut ica ls
Los Angeles CA says ldquoIndustry
will continue pushing the PAT
[process analytical technology]
envelope to f ind a lternat ive
methods to improve in-process
methodologies and processesrdquo
Fe r ne ma n add s ldquoCu r r e nt
trends in fillfinish innovation
will probably focus the market
authorization holders on a few
strategic products resulting in
outsourcing of a bigger share of
products overallrdquo
ConClusion
Until recently the handling of
ster i le l iquids in the pharma-
ceutical industry has relied on
relatively consistent techniques
during the past 100 years with
relatively slow changes in tech-
nologies and regulations result-
ing in incremental improvements
in safety efficiency and prod-
uct quality During the past 20
years however costly biologics
have taken a prominent indus-
try role The value of these drugs
can often be measured in tens of
thousands per dose This has put
greater pressure on these down-
stream fillfinish operations to
ensure quality safety and cost-
efficiency are not compromised
at this crucial late stage in manu-
facturing Trends in fillfinish for
recombinant therapeutics include
the increased use of isolator
technologies more high-speed
operations and other innovative
approaches including single-use
processing As a result of industry
research BioPlan expects more
outsourcing of fillfinish opera-
tions in coming years
referenCes 1 BioPlan Associates 12th Annual
Report and Survey of Biopharmaceutical
Manufacturing Capacity and Production
(Rockville MD April 2015) www
bioplanassociatescom
2 BioPlan Associates Trends in Aseptic
Bioprocessing Capacity for the Fill and
Finish of Recombinant Biologics An
Analysis of US and European In-house
Capacity and Capacity Utilization (BioPlan
Associates December 2014)
3 Information derived from BioPlan
Associatesrsquo BioFacilities Newsletters Bp
26 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Cell Therapy
Taking a ldquoDevelopment-by-Designrdquo
Approach to Cell Therapies
Whether outsourcing or developing cell therapies in-house success demands a focus on quality cost of goods
and sustainability from the start
Agnes shAnley
Cell therapies both autologous and allo-
geneic have come a long way in just a
few years Countries around the world
most recently Japan have passed regula-
tions designed to speed development of
these treatments which are now a big and growing
global business
In 2013 according to the Pharmaceutical Research
and Manufacturers Association 69 cell therapies six
of them autologous or patient-specific treatments
were in clinical trials or being reviewed in the United
States alone 15 of them in Phase III trials (1)
The road is littered with failures however often
in clinical stages This has been traced to problems
with manufacturing and failure to understand pro-
cess requirements earlier in the development process
Table I outlines manufacturing issues
As a growing number of Big Pharma companies
explore the potential for immune regenerative and
other cell therapies equipment manufacturers includ-
Agnes shAnley is senior editor of BioPharm International
SC
IEP
RO
GE
tt
y Im
aG
ES
wwwcytovancecomResponsive Reliable Resourceful
Your partner in biopharmaceutical contract manufacturing of therapeutic proteins and antibodies from mammalian cell culture and microbial fermentation
28 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Cell Therapy
ing Pall Corp EMD Millipore
and GE Biosystems have set up
centers of excellence to focus on
developing equipment for this
new market Engineering compa-
nies such as Invetech and Instrom
are developing equipment specific
to this niche
More CDMos are entering
Cell therapy Market niChe
Demand for spec ia l i zed ce l l
t he rapy ma nu fac t u r ing a nd
development serv ices is a lso
growing and has attracted Lonza
Bioservices Cognate BioServices
WuXi AppTech and Roslin Cells
among others
NeoStem is fol low ing t wo
paths pursuing its own cel l
therapy pipel ine and explor-
ing contract services through
its contract development and
manufac t u r ing organ i zat ion
(CDMO) subsidiary Progenitor
Cell Therapy (PCT) With bases
in Irvine and Mountain View CA
and Allendale NJ PCT is cur-
rently working with Intrexon and
Fibrocell on connective tissue
treatments and with the United
K ingdomrsquos Adapt immune on
oncology treatments
A new CEO David Mazzo with
a doctorate in analytical chemis-
try and experience running both
private and public international
biopharma companies assumed
NeoStemrsquos leadership in January
He sees no conflict between grow-
ing a pipeline and a contract man-
ufacturing business
ldquoWe are not trying to be two
di f ferent companies and we
do not see the two competing
with each otherrdquo says Mazzo
in an interview with BioPharm
Inte rnat ionalrsquos s i ster publ ica-
tion Pharmaceutical Technology
during his second week on the
job ldquoInstead there is a symbi-
otic relationship between themrdquo
As he sees it the companyrsquos
track record in developing prod-
ucts should attract more spon-
sors ldquoProblems in development
usually occur at the interfaces
Our unique experience of having
lsquodone that beforersquo should be help-
fulrdquo he says
In January PCT entered a
partnership with Invetech an
equipment design firm based in
Australia with offices in San Diego
to develop automated equipment
for cell therapy manufacturing Fig
ur
e 1
is
co
ur
te
sy
oF
in
ve
te
ch
Figure 1 Part of an automated solution being developed by neostem and invetech Automating processes is key to reducing costs
wwwbiopharminternationalcom June 2015 BioPharm International eBook 29
Outsourcing Resources Cell Therapy
The two companies have already
been working together for a year
now honing the design and speci-
fications for the instrumentation
says NeoStemrsquos Chief Scientific
Officer (CSO) Robert Preti The
equipment will tackle cell therapyrsquos
most challenging side autologous
treatments where the manufactur-
ing lot is the patient dose adminis-
tered at the patientrsquos bedside
As Preti notes there really isnrsquot
much available today in the way
of automated equipment for cell
therapy especially on the autolo-
gous side The equipment will sep-
arate and wash cells among other
functions
labor-intensive
proCesses aDD Cost
So far Preti says the company
is evaluating the evolving equip-
ment in NeoStemrsquos own manu-
facturing efforts ldquoOne of the
largest commercial bottlenecks
is the heavy labor required by
processes especially for patient-
specific uses where one batch is
one patientrdquo
The cost of goods i s ver y
high Preti says ldquoSuccess long-
term will require a whole new
approach to development The
goal is to provide high qual-
ity and sustainabilityrdquo he says
Removing manual operat ions
and human error from the pro-
cess will be crucial
Invetech has been work ing
on cell therapy process scale-up
automation for more than 10
years and has successfully com-
pleted projects in North America
Europe and Asia for companies
that include Argos Therapeutics
Aa s t rom CCR M Hu mac y te
Innovacell Janssen kSep Systems
MolMed Organovo and ViaCyte
accord ing to R ichard Grant
global VP of the companyrsquos bio-
pharma operations who has been
with the company for more than
14 years
ldquoThe goal is to develop a mix
of equipment and manufactur-
ing st rateg ies that maximize
quality scalability and sustain-
ability with an eye toward cost-
effect iveness and commercial
viabilityrdquo Grant says Invetechrsquos
solutions typically tailor a mix of
OEM and customized equipment
to the clientrsquos processes The com-
pany recently commercialized
equipment used to manufacture
Janssenrsquos macular degeneration
treatment
Costs of current manufactur-
ing processes for both autologous
and allogeneic therapies are dif-
ficult to peg Last year experts
at University College London
attempted to pinpoint the cost and
overall economics of allogeneic
cell therapy using single-use tech-
nologies (2)
What is clear for both alloge-
neic and autologous systems is
that cell therapy development
Table I Manufacturing scenarios for cell therapies
Attributes Off-the-shelf therapiesPatient-specifc
therapies
Source material Always allogeneic Autologous or matched allogeneic
Batch size Many patients One patient
Business model Similar to pharmabiopharma New
Scaling Scale up (Increased lot size) Scale out (Increased number of lots)
Comparability vs scale Higher concern Lower concern
Manufacturing design drivers
Mission critical success + +++
Optimized process yield +++ +
Dimensional efficiency ++ +-
Integration +- ++
Automation + ++
source invetech
Table II Measuring comparability risk
Risk level Example Timing
None Automated sterility test Before biologics license application
Low Change in process unit op and cell journey is the same
Before 50 accrual in pivotal trials
Medium Change in process unit op and cell journey is similar
Before initiation of pivotal clinical trials
High Change in process unit op and the cell journey is matched
Some Phase II clinical data
source invetech
30 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Cell Therapy
and manufacturing costs are cur-
rently prohibitive ldquoThe starting
points can vary dramaticallyrdquo
Grant says He recalls one cus-
tomer whose autologous process
ran to $80000 per patient in early
stage clinical trials Automation
he says could reduce costs by
40ndash90 depending on the ther-
apy involved
DevelopMent by Design
But before one can automate any
process one must understand it
NeoStem and PCT like a growing
number of companies are taking
the principle of quality by design
(QbD) to heart in their work
Mazzo arguably one of few
life-science company CEOs to
even articulate the QbD concept
explains that the company has
gone a step further and broadened
the International Conference on
Harmonization guidances adopted
by FDA into ldquodevelopment by
designrdquo (DbD)
ldquoWe say first consider the end-
point then take process as is and
understand its unit operations
Develop inputs and outputs and
discrete steps and define the pro-
cess in a way that promotes under-
standingrdquo he says
ldquoThis is challenging given prod-
uct complexity but there is a need
to understand the mechanism of
action very well so you put each
process in this overall envelope
of DbD and consider the cost of
goods scalability and sustainabil-
ityrdquo Preti adds ldquoYou consider the
process from the end only this
time each batch is an individual
patientrdquo
The critical part is defining and
measuring process needs he says
ldquoProduct definition is very impor-
tant particularly the quality target
product profilerdquo explains Brian
Hampson VP of manufacturing
development and engineering at
PCT in an Oct 22 2014 webcast
for the International Society for
Cell Therapy (3)
have the enD in MinD
Such t h ings a s for mulat ion
issues dosage potency impu-
rities residuals and microbial
assurance need to be thought out
clearly from the start Hampson
says as well as indications for
use geographic market projec-
tions cost-of-goods targets and
IP issues
The profile needs to be a liv-
ing document that changes as the
product takes shape Hampson
says There is a tendency for peo-
ple in the industry to ignore the
product profile until they have
all the answers says Hampson
ldquoInstead it needs to be developed
really early even when you donrsquot
have all or even many of the
answers hellip you can leave them
as blanks and continue to review
add to and updaterdquo
The result is not only a tool for
better understanding the prod-
uct process and mechanism of
action but a communication tool
for stakeholders
When to start DbD for cell ther-
apies ldquoThe temptation is to begin
later in the game when you need
reasonable COGS and you need
to be sure of sustainable manu-
facturingrdquo says Hampson ldquoThe
key thing is comparability and
anticipating its implications early
in the clinical program It needs
to be flexible at the early stagesrdquo
Hampson says ldquoBut as you near
Phase III you need to lock in your
equipment evolves
In the bioreactor area there is great interest in moving from 2-D to 3-D processing to enable the processing of the cell volumes required something that companies such as Israelrsquos Pluristem have been doing for some time
Equipment designer Instrom is partnering with companies including BRTI Life Sciences to focus on 3-D cell matrix technologies developed by Dr John Brekke EMD Millipore has been partnering with PharmaCell BV to use its Mobius bioreactor platform to expand and harvest HepRG cells GE Sciences is also evaluating Wave and other systems and set up a center of excellence in Wales recently
In other equipment areas Pall Corp has been partnering with CMDG LLC on cord blood processing technology Following are some of the equipment manufacturers and systems applied in cell therapy development and manufacturing
bull Beckman Coulter bull Corning Cell Stacks and Cell Cube
bull EMD Millipore bull GE Biosciences
bull Thermo Scientificrsquos Nunc Cell Factories bull Pall Corp
wwwbiopharminternationalcom June 2015 BioPharm International eBook 31
Outsourcing Resources Cell Therapy
processrdquo Table II summarizes issues
and points where changes will be
easier
Thus Hampson suggests that
companies whether work ing
with CDMOs or in house think
through such issues as cost of
goods scale and sustainabil-
ity much earlier than they typi-
cally do today ldquoYou donrsquot need to
spend money on these issues but
you do need to think about themrdquo
Hampson says ldquoQuality must be
a key issue even at Phase II trials
and early action pays off laterrdquo
In addition he suggests that
companies th ink about the
e nt i r e p r o c e s s c o mp r e he n -
sively ldquoThere is often a tendency
to focus on the core processing
stepsrdquo Hampson says ldquoBut you
really need to think about every-
thing from collection of mate-
rial through to administration
of product to the patient and all
steps in betweenrdquo
For ce l l therapies d ispos -
able equipment and closed pro-
cesses can be an effective way to
reduce costs and improve quality
and compliance ldquoThey can allow
you to isolate different processes
so that they can share a Class
100000 cleanroom environmentrdquo
Hampson says
ldquoInvesting in automated informa-
tion management can also pay offrdquo
he says ldquowhere an electronic batch
record system that is fully validated
can enable release-by-exception
reducing error documentation
time and overall quality assurance
costsrdquo Hampson says
In addition he notes it is
important to look at costs compre-
hensively an increase in one cost
can for example reduce overhead
improve process sustainability and
cost of goods Table III outlines the
issues
regulations evolve
Cell therapy is still a new area
for regulators and as Preti says
some guidelines are clear and oth-
ers arenrsquot ldquoDevelopment by design
is needed throughout the pro-
cess but the piece we still struggle
with the most is mode of action
(MOA) and product characteriza-
tion Regulatory agencies under-
stand that it is difficult to pinpoint
MOArdquo
Preti emphasizes the importance
of working with regulators ldquoYou
can be in a position to inform and
influence regulations as products
are developedrdquo he says
For any company moving into
this brave new world top-level ques-
tions are needed Preti says empha-
sizing the following ldquoDo you have
an understanding of scale Can you
scale up from very small Can you
characterize the process and control
it for reliability and qualityrdquo
In the stem cell area in particu-
lar this is crucial Preti said since
the product relies heavily on the
process ldquoManufacturing can be
thought of as patient administra-
tion It cannot be separated in
the same way that it can for tra-
ditional medicinesrdquo For contract
suppliers he adds demonstrated
success will be important and
sponsors should consider whether
a prospective partner will be able
to stay with them for the long run
referenCes 1 P Hourd et al Regulatory Challenges
for the Manufacture and Scale-
Out of Autologous Cell Therapies
Massachusetts General Hospital
(Cambridge MA 2013)
2 S Farid et al Biotechnol Bioeng
111(1) 69-83 (January 2014)
3 R Grant Building Deliverable Cell
Therapeutics A Methodical Approach
to Manufacturing Development
(Webinar Oct 22 2014) bp
source invetech
Justifcation driversChange in cost
doseDevelopment
estimate
Unit Op Ref
Change decription
Comparability risk
Quality COGs Scale Sustainability LaborMaterials outplant
Cost Time
P-2 Process change 1 Medium X X darr $ $$$ TT
P-3 Process change 2 High X X X darr $$$ $$$$ TTT
P-4 Process change 3 Low X X darr $$ $$ TTT
P-2 Process change 4 Low X $$ T
QC-4 In-house QC test None X TT
QA-1Electronic Batch
RecordNone X X X
darr $$$$
TTTT
Table III Process changes timing and comparability risks cogs is cost of goods Qc is quality control
32 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Intellectual Property
Protecting Intellectual Property
in Engagements with CMOs
Important IP contractual provisions should be included when working with CMOs
Jennifer L CoLLins
Biotechnology and pharmaceutical companies
often engage contract CMOs to assist with
the development of their drugs This type
of arrangement naturally involves the devel-
opment of intellectual property (IP) so it is
important for both the CMO and the sponsor to iden-
tify pre-existing intellectual property and also define
how rights to new IP will be allocated protected and
enforced by and between the companies
If the arrangement with the CMO is a traditional fee-
for-service arrangement where the company pays the
CMO service fees to perform development work on its
behalf then generally all new IP (other than improve-
ments to the CMOrsquos manufacturing technology) will be
owned by the biotechnology or pharmaceutical com-
pany that engaged the CMO On the other hand if the
arrangement between the CMO and the biotechnology
or pharmaceutical company is more of a collaborative
arrangement where both parties share the costs of devel-
opment as well as any profits from the commercializa-
tion then IP concerns become much more complicated
In that case in addition to describing which party will
Jennifer L CoLLins is a technology and licensing attorney with Morningstar Law Group jcollinsmorningstarlawgroupcom
Fa
na
tic S
tud
ioG
ett
y Im
ag
es
wwwbiopharminternationalcom June 2015 BioPharm International eBook 33
Outsourcing Resources Intellectual Property
own the new IP the contract should
sort out which party will be respon-
sible for obtaining and maintaining
patents on the new IP controlling
litigation against infringers and
defending the IP against challenges
In addition the parties should agree
upfront on how the IP may be used
by each party following various ter-
mination events so that the parties
are not left fighting about such mat-
ters at a time when they may not be
inclined to agree to anything
In both arrangements without
specific contractual provisions to
define and protect the new IP a
biotechnology company or phar-
maceutical company that uses a
CMO for development is at risk of
losing control of and possibly own-
ership of important improvements
to its drugs This article discusses
IP contractual provisions that
should be included in each type of
arrangement
Fee-For-service
development work
Traditionally CMOs perform fee-for-
service development work where
a biotechnology or pharmaceutical
company engages the CMO to per-
form this work for a fixed fee In this
type of arrangement the CMO is a
service provider and typically takes
no ownership interest in the drug or
product that is being developed or
in improvements to an existing drug
or product that is being tested or
developed The contract governing
the relationship nevertheless must
be clear about the IP rights that are
owned and licensed by each party
If the contract does not provide
for proper assignments of IP to the
biotechnology or pharmaceutical
company then it is likely that the
CMO will own any improvements
or other inventions that it develops
in the performance of the develop-
ment services even if that is not the
intent of the parties
Without signed written contracts
that state otherwise under United
States patent law the inventor of
a patentable invention or improve-
ment will own the invention or
improvement even if the inventor
is engaged to develop the invention
or the improvement for a customer
or other third party To ensure
that the biotechnology company or
pharmaceutical company obtains
all the patent and other IP rights
in developments inventions and
improvements created in the per-
formance of services by the CMO
the governing contract between the
biotechnology company or phar-
maceutical company and the CMO
must include written present assign-
ments of those IP rights from the
CMO to the company Indeed based
on recent cases it is crucial that the
assignment clause in the contract
be a ldquopresentrdquo assignment mean-
ing that it must state specifically
that the CMO ldquohereby assignshelliprdquo
rather than a clause stating that the
CMO ldquoagrees to assignrdquo rights in the
future Otherwise the contract will
be interpreted as a promise to assign
rights in the future and the bio
pharmaceutical company will have
to go back to the CMO at some later
point in time for a separate writ-
ten assignment of rights to obtain
all patent and other IP rights in the
developments
While it sounds logical and
straightforward that the CMO
would assign all inventions created
in the development work to its cus-
tomer it is not always that simple
in practice What if the CMO devel-
ops an improvement to its manu-
facturing process in the course of
the development work Most CMOs
will want to reserve ownership of
any improvements to the CMOrsquos
existing IP and confidential infor-
mation This position is not unrea-
sonable as long as the customer
ultimately has the rights it needs in
all new inventions including those
owned by the CMO to take the drug
forward through further develop-
ment and commercialization One
must sort out IP allocation by sub-
ject matter To achieve this allo-
cation the development contract
typically will state that each party
retains ownership of all IP that it
owns as of the date of the contract
(all pre-existing intellectual prop-
erty) It will also state that the cus-
tomer owns its proprietary drug
and all improvements to the drug
or the customerrsquos confidential infor-
mation developed by either or both
parties The development contract
also may state more generally that
the customer owns all inventions
improvements and IP rights related
to the customerrsquos drug With respect
to the CMO and its IP the develop-
ment contract may state that the
CMO owns all improvements to the
CMOrsquos manufacturing process and
to its other pre-existing intellectual
property Again this reservation is
not unreasonable The customer
however should determine whether
it requires access to those improve-
ments or inventions to complete the
development and commercialization
of its drug If such access is necessary
the customer should either negotiate
a license (which may be royalty-free
or royalty-based depending on the
circumstances) to use such improve-
ments or inventions to develop and
commercialize the drug or the cus-
tomer should negotiate the terms
under which the CMO will continue
to use the improvements or inven-
tions to perform development work
andor manufacture the drug for the
customer
In the fee-for-service arrange-
ment the assignment and licensing
of IP rights in new inventions and
improvements is the key intellectual
property issue Intellectual property
considerations become much more
complicated when the biotechnol-
34 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Intellectual Property
ogy or pharmaceutical company
partners with a CMO in the devel-
opment of a new drug or product
where the parties share development
costs and profits from commercial-
ization of the drug or product
cmo as collaborator
Although not as common as the
fee-for-service arrangement a CMO
may partner with a biotechnology
or pharmaceutical company in the
development and commercialization
of a drug or product Generally both
parties are bringing pre-existing IP
to the collaboration such as a drug
from a biopharmaceutical com-
pany and proprietary drug delivery
technology from the CMO In this
scenario the CMO is taking a long-
term interest and often a part-own-
ership interest in the success of the
drug product
Instead of getting paid an hourly
rate or fixed fee for development
work on the drug product the CMO
may share the cost of development
work with the biotechnology or
pharmaceutical partner in exchange
for a share of the profits when the
drug or product is commercialized
Other costs involved in the develop-
ment and commercialization of the
drug or product that may be shared
include the cost of patent prosecu-
tion and the cost of patent litigation
if the drug product is challenged or
if it is misappropriated or infringed
To secure its interest in the profits
from commercialization of the drug
product the CMO may want to take
an ownership interest in the intel-
lectual property rights in the drug
product All of these issues must be
carefully addressed in the develop-
ment contract to avoid both finan-
cial and IP disputes
As with the fee-for-serv ice
arrangement the parties must
allocate ownership of intellectual
property rights pertaining to the
drug product to be commercialized
These rights include both pre-exist-
ing IP rights and new inventions
and improvements developed in
the course of the development con-
tract As with the fee-for-service
arrangement the parties typically
will retain rights to their respec-
tive pre-existing IP Intellectual
property rights to new inventions
and improvements however may
be shared by giving each party a
co-ownership interest in the intel-
lectual property Alternatively such
rights may be allocated by inventor-
ship with each party taking owner-
ship of developments that it invents
and with the parties jointly own-
ing jointly developed inventions
As another alternative the IP rights
may be allocated by subject matter
as in the fee-for-service arrangement
with each party owning improve-
ments and inventions related to its
pre-existing IP regardless of which
party invents those improvements
and inventions
Depending on how the pat-
ent applications are drafted the
IP rights may be ldquosliced and dicedrdquo
more finely One party for example
could own patent rights for a drug
product for one indication while the
other party owns patent rights for
the same drug product for another
indication Decisions about how
to allocate the IP rights should be
made in consultation with intel-
lectual property counsel and must
take into account the manner in
which the drug will be commercial-
ized If one party for example is
to commercialize the product in
North America and Europe and
the other party is to commercialize
the product in the rest of the world
then either the patent ownership
should be allocated by territory or
the development contract should
include exclusive cross-licenses of
each partyrsquos rights in all the intel-
lectual property necessary to com-
mercialize the product with the first
party having an exclusive license to
commercialize the product in North
America and Europe and the second
party having an exclusive license to
commercialize the product in the
rest of the world
If the parties are going to share
ownership of the IP related to the
drug product then the develop-
ment contract also should specify
which party is responsible for pros-
ecuting and maintaining patents
on the drug product Regardless of
which party is responsible for patent
prosecution and maintenance the
other party should be consulted and
involved in key decisions regard-
ing patent prosecution and main-
tenance Unless there are multiple
patents for different indications that
will be commercialized exclusively
by one party and unless each party
has exclusive rights to commercial-
ize the drug product in particular
geographic areas it generally makes
sense for one party to take the pri-
mary responsibility for patent pros-
ecution and maintenance globally
with the other party consulting and
sharing in the cost of the prosecu-
tion and maintenance in accordance
with the profit sharing The party
that is not responsible for prosecu-
tion and maintenance should have
a contractual right to approve patent
counsel and review and approve pat-
ent filings office action responses
and other communications with
patent registries before they are filed
or submitted so that the parties
agree on the proper prosecution and
maintenance strategy
Likewise the development con-
tract should allocate the rights and
responsibilities for asserting and
defending the patents pertaining to
the product in litigation Often these
rights and responsibilities are allo-
cated by territory according to com-
mercialization rights If one party
for example has the exclusive right
to commercialize the drug product
wwwbiopharminternationalcom June 2015 BioPharm International eBook 35
Outsourcing Resources Intellectual Property
in the US then that party would
have the first right and responsibil-
ity to assert the patents on the drug
product against potential infringers
and defend the patents on the drug
product against infringement claims
in the US Likewise if one party has
the exclusive right to commercial-
ize the drug product for a particular
indication then that party would
have the first right and responsibility
to assert or defend the patents per-
taining to the product with respect
to that indication Both scenarios
can present challenges First some
courts will not recognize an exclu-
sive licensee as having standing to
assert a patent That court might
only allow the owner of the patent
(and not the exclusive licensee) to
bring a lawsuit asserting the patent
It is crucial therefore that contrac-
tual provisions relating to patent liti-
gation require the party that owns
the patent to cooperate in any litiga-
tion and to join the suit as a party if
necessary
Another potential problem is that
any litigation that asserts the pat-
ent is likely to draw a counterclaim
that the patent is invalid thus put-
ting the patent itself at risk of invali-
dation While one party might be
threatened by a potential infringer
in a particular market or for a partic-
ular indication and therefore might
want to assert the patent against the
potential infringer the other party
might not want to put the patent at
risk as to other markets and other
indications For these reasons the
contractual provisions pertaining
to patent litigation must be care-
fully drafted in consultation with
intellectual property counsel who
understands standing issues and
the potential areas for dispute The
contractual provisions also should
include dispute resolution provi-
sions for situations when the parties
do not agree on whether a patent
should be asserted
Finally while the parties may
want and expect their relationship
to continue for the full term of the
patents and the development con-
tract the parties must carefully
consider the IP ramifications of an
early termination of the develop-
ment contract and the relationship
particularly if the development con-
tract is terminated for breach If the
parties are sharing in the ownership
commercialization and profits gen-
erated by the drug product devel-
oped by the collaboration then
all of that must be unwound upon
termination The development
contract should be as specific as
possible with respect to the effect of
various types of termination on the
intellectual property and contin-
ued commercialization of the drug
product In particular the parties
may agree that if the development
contract is terminated due to breach
by one party then that breaching
party must relinquish and transfer
all of its rights with respect to the
drug product to the other party to
allow the non-breaching party to
continue the commercialization of
the drug product post-termination
Whether the necessary rights are
assigned or licensed whether the
terminated party should receive a
royalty for the transfer or license of
those rights and what if any pre-
existing IP is licensed to enable the
non-breaching party to continue
commercializing the drug product
are all key factors for negotiation
The development contract should
also address other types of termi-
nation such as termination for
insolvency and termination with-
out cause (ie if one party decides
it no longer wants to commercial-
ize the drug product) In each case
the effect of termination on the IP
rights should be carefully analyzed
and a competent IP counsel should
carefully draft post-termination
assignments and licenses
conclusion
While IP lawyers are not equipped
with crystal balls they can be
extremely helpful in analyzing par-
ticular development commercializa-
tion and post-termination scenarios
all of which affect IP in a drug devel-
opment arrangement Contractual
provisions related to IP must be
carefully drafted to align with the
strategic business objectives of any
relationship and particularly one
whose purpose is the development
and commercialization of intellec-
tual property Without a clear con-
tract each collaborator is at risk of
losing important rights bp
Ad Index
AJINOMOTO ALTHEA 21
AVID BIOSERVICES INC 15
CYTOVANCE BIOLOGICS 27
EMERGENT BIOSOLUTIONS 13
EUROFINS LANCASTER LABORATORIES 7
SAFC BIOSCIENCES SIGMA ALDRICH 17
THERMO FISHER SCIENTIFIC 23
TOSOH BIOSCIENCE 11
WATERS CORP 3
Company Page
![Page 3: OUOURT NG I C RESOURCESfiles.pharmtech.com/alfresco_images/pharma/2019/03/08/... · 2019-07-22 · VIDEO INTERVIEW Biologics Development and Manufacturing Trends: Part I ... Media](https://reader034.vdocuments.us/reader034/viewer/2022050113/5f4aca886c0d6724390eb040/html5/thumbnails/3.jpg)
PHARMACEUTICAL n HEALTH SCIENCES n FOOD n ENVIRONMENTAL n CHEMICAL MATERIALS
With great detection power comes great possibility To eliminate the unknown find out how Waters ACQUITY QDareg Mass Detector is making heroes out of chromatographers like you Visit waterscomPRESSON
copy2015 Waters Corporation Waters ACQUITY QDa and The Science of Whatrsquos Possible are registered trademarks of Waters Corporation
4 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Quality Risk Management
QRM Tools for
Contract Biomanufacturing
Quality-risk-management tools can assist biopharma companies in mitigating risks when outsourcing crucial elements
of the drug-development process
BIKASH CHATTERJEE
Well-defined well-executed risk man-
agement is a central component of
any clinical strategy and there are
many steps in the drug-development
lifecycle where risk management
brings value For decision making and overall program
risk reduction a quality-risk-management (QRM) pro-
gram is an effective means for biotech companies to
mitigate the risks associated with outsourcing crucial
elements of the drug-development lifecycle Risks only
get larger when activities typically performed inter-
nally during the development process are outsourced
to a contract service provider
The role of contract service providers has grown
over the past decade as the industry has worked to
shrink time-to-market by outsourcing major pieces
of the drug-development lifecycle Today because of
this heightened responsibility for a programrsquos success
organizations tend to rely on contract service provid-
ers as partners
Selecting an outsourcing partner is more complex
than simply comparing factors like on-time-in-full
BIKASH CHATTERJEE is president and CSO of Pharmatech Associates
Mic
ha
el H
Ge
ttyim
ag
es
wwwbiopharminternationalcom June 2015 BioPharm International eBook 5
Outsourcing Resources Quality Risk Management
(OTIF) delivery performance right-
the-first-time (RTF) cycle-time etc
The complexity of the global sup-
ply chain and global compliance
warrants some form of structured
evaluation tool QRM provides this
framework
Production risks are not lim-
ited to time-to-market concerns
Emerging biotherapeutics such as
antibody drug conjugates (ADCs)
and chimeric antigen receptorT
cel l technology (CAR-T) pro -
vide the potential for significant
advances in cancer treatment
but also bring with them a new
level of risk in terms of charac-
terization and quality assurance
Integrating QRM as part of the
program management process pro-
vides a mechanism for addressing
these risks and technical uncer-
tainties as the program progresses
QRM can be divided into two
major areas of application risk-
based decision-making and risk
analysis and management
QRM and Risk assessMent
QRM embodies a systematic pro-
cess for the assessment control
communication and review of
risks The core elements of QRM
are defined in the ICH Q9 guide-
line Quality Risk Management (1)
The principles of using risk as
part of a scientific approach to
drug development are captured
across ICH guidances ICH Q5
Quality of Biotechnological Products
(2) and ICH Q8 Pharmaceutical
Development (3) The European
Un ion a nd Ph a r m ac e ut ic a l
Inspec t ion Convent ion a nd
P h a r m a c e ut i c a l I n s p e c t io n
Co-operat ion Scheme (PICS)
have adopted these principles in
Annex 20 of the EU and PICS
GMP guides
Integ rat ing QR M elements
within the product development
process can raise organizational
FIG
UR
ES
CO
UR
TE
SY
OF
TH
E A
UT
HO
R
Figure 1 Product development risk analysis tools impacted by outsourcing (ADME is absorption distribution metabolism and
excretion PARNOR is proven acceptable rangenormal operating range AHP is analytic hierarchy process CDMO is contract
development manufacturing organization FMEA is failure mode and effects analysis RRD is risk ranking and fltering CMO is
contract manufacturing organization NPV is net present value)
Preclinical
De
ve
lop
me
nt
Ph
ase
Bio
log
ic Q
RM
Animal models ADME studies and
toxicology studies
AHP CDMO
selection
Decision-tree molecule selection
Pre-hazard analysis
Process cause-and
-effect analysis
AHP CMO selection
Process FMEA
RRF
Capital risk investment weighted
NVP calculation
Final RRF or FMEA
Intermediate scale up container-closure studies stability studies PARNOR
tech transfer method transfer fnal reference characterization
Final stability studies fll fnish PARNOR fnal control
strategy process performance
qualifcation lots attribute testing strategy
Ou
tso
urc
ing
QR
M
Phase 1 Phase 2 Phase 3
Quality target product profle formulation selection process design master and
working cell banks raw material characterization method development
initial critical quality attributes reference standard characterization
Figure 2 Preclinical analytical hierarchy process (AHP) structure
GOAL
Select the best
CDMO for
preclinical testing
CRITERIA
ALTERNATIVES
Experience with
route of deliverySchedule
Data analysis
capabilityCost
CDMO 3CDMO 2CDMO 1
6 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Quality Risk Management
visibility of program risks based
upon past program development
with long-term benefit For plat-
form products this means cap-
turing universal program risk
to learn from past risk analyses
and mitigation activities Mature
organizations link assessments to
program milestones moving the
context of risk management from
a supportive role to one of deci-
sion making and program man-
agement
QRM pRoduct developMent and outsouRcingThe principles of QRM can be use-
ful in almost every step of drug
development Risk analysis tools
are ideal as aids to evaluate cri-
teria leading to the selection of
a contract service provider One
important advantage of apply-
ing a QRM approach to product
development is the ability to
harness internal expertise from
across the organization and focus
decision-making using a com-
mon perspective The key process
development activities defined in
the Parenteral Drug Associationrsquos
Technical Report 42 (4) are not
the only development activities
and milestones that can leverage
a QRM framework The empha-
sis in biologic drug development
is predominantly on the drug
substance not the drug prod-
uct While both are important
to a successful drug filing drug
product activities often begin at
the fillfinish stage of the process
and are more standardized from a
design and execution perspective
Figure 1 illustrates which risk
analysis tools can assist in execut-
ing an outsourcing strategy in each
phase of product development
Similar risk analysis tools are color
coded and linked to each of the
four major phases of product devel-
opment prior to commercial manu-
facturing
analytic hieRaRchy pRocess The dec ision to outsource a
key program element to a con-
tract service provider may occur
regardless of the stage of product
development Early in the prod-
uctrsquos development in the preclin-
ical phase development activity
emphasis is on assessing the basic
characteristics of the molecule in
animal models Pharmacokinetic
and pha r macody namic mea-
surements and absorptiondis-
tributionmetabolismexcretion
(ADME) studies are typica l ly
conducted in rodent and non-
rodent mammalian animal mod-
els Selection criteria to assess an
appropriate service provider can
include route of delivery capabil-
ity and experience data analysis
capability schedule and budget-
ary considerat ions The r ight
service provider will contribute
to the success of a programrsquos
investigational new drug filing
and impact the overall program
schedule
One effective risk-analysis tool
to address this outsourcing deci-
sion is Analytic hierarchy process
(AHP) AHP allows the evaluation
to translate subjective opinions
or preferences into measurable
numeric relations to make deci-
sions in a rational way AHP uses
pairwise comparison for consis-
tency in the evaluation of each
criterion for each circumstance
Using AHP requires that the alter-
natives be structured as a hierar-
chy as shown in Figure 2
Figure 3 Preliminary hazard analysis
Attribute Key word Deviation Cause EffectCurrent
safeguardscontrolsHazard levels
ProductNumeric
level
Assay HighOutside tolerance
limitsFillfinish error
Possible hypoglycemia
Sampling manufacturing weight check
High Ampoules 3
Assay LowOutside tolerance
limitsFillfinish error
Possible hyperglycemia
Sampling manufacturing weight check
Medium Ampoules 2
Sterility Low Non-sterilePoor aseptic
handlingInfection
Media fills and environmental monitoring
High Ampoules 3
Keyword Defnition
Low Low risk to patient
Medium Potential risk to form fit and function of drug which could do harm to patient
High Significant risk to a patient andor form fit and function of product
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8 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Quality Risk Management
Within the AHP hierarchy it is
important to establish the priori-
ties for each element Priorities
are the numbers associated with
the nodes to represent the rela-
tive weights of the nodes in any
group Similar to probabilities
priorities are absolute numbers
In executing the method criteria
are evaluated against the goal to
establish priority Similarly each
alternative is evaluated against
each criteria With these two ele-
ments complete the priority of
each alternative can be calcu-
lated against the goal to select
the appropriate contract develop-
ment and manufacturing organi-
zation (CDMO)
decision-tRee analysis
As a molecule passes the pre-
clinical development program
typically an organization will
evaluate the information to make
a gono-go decision to move the
program forward A tool that can
be useful in quantifying this
phase-gate decision is a decision
tree analysis a decision support
tool that uses a tree-like graph of
decisions and their possible con-
sequences including chance event
outcomes and resource costs
One area where a decision
tree has been a useful tool is in
biologic companies with a com-
bination-product development
program Some biologics may inte-
grate a device component such as
an auto-injector as opposed to
an IV delivery The advantage of
an auto-injector is that it is por-
table and able to deliver outside
a healthcare setting Quantifying
the organizat ionrsquos abi l ity to
develop and commercially support
a device component is a signifi-
cant program risk consideration
for many biotech companies
Choosing a contract manufacturer
with experience in devices and
drugs may drive down technical
and program risk but could com-
plicate the overall supply chain
With a decision-tree analysis an
organization can quantify the cost
of moving forward with each alter-
native while flagging uncertain-
ties One course of action may be
to address the uncertainties and
drive the likelihood of success to
an acceptable level before proceed-
ing with any program
AHP and decision-tree analy-
sis can be used anywhere in the
drug development process where
in-house manufacturing versus
outsourcing alternatives must be
evaluated
pReliMinaRy hazaRd analysis
In the United States Phase I
activities involve satisfying FDArsquos
latest expec tat ions in terms
of product design and process
under sta nd ing For mulat ion
selection is one of the first mile-
stones in a Phase I program A
pre l iminar y haza rd ana lysi s
(PHA) is typically performed early
in a program to identify known
hazards determine their causes
effects and probability and to
establish initial design and proce-
dural requirements to eliminate
or control them
While PHA can be used as an
early evaluation of any risk situ-
ation one effective application
of PHA is to evaluate the prod-
uct design from a patient safety
perspective as a precursor to pro-
Figure 4 Monoclonal antibody process train cause-and-effect matrix
Critical quality attributes (Risk level)
Preculture and expansion
Fermentation and harvest
CentrifugeCation exchange chromatography
Anion exchange chromatography
Viral filtrationConcentration
and diafiltration
Vial filling
Appearance (M)
Impurities (H)
Protein content (H)
Immunoreactivity (H)
Purity (H)
Bioburden (H)
In-process controls
Fill weight check (M)
Visual Inspection (M L)
Risk Key None Low Med High
wwwbiopharminternationalcom June 2015 BioPharm International eBook 9
Outsourcing Resources Quality Risk Management
cess design The PHA can use a
simple heat map of low medium
and high-severity assessments
An example of a partial PHA is
shown in Figure 3 Any evalu-
ation that results in a hazard
level of medium or high should
be included as part of the control
strategy for the process
pRocess cause-
and-effect MatRix
As the program moves into the
process design and scale up or
technology transfer activities a
cause-and-effects (CampE) analy-
sis is a simple and effective tool
to determine which unit opera-
tions impact the drug productrsquos
final critical quality attributes
(CQAs) These unit operations
could then focus on determin-
ing if there are critical control
parameters (CPPs) that impact
the final productrsquos CQAs If there
are CPPs present a f inal con-
trol strategy should ref lect the
potential risk of straying from
the process design space for that
unit operation An example of a
simple CampE analysis for a sim-
ple monoclonal antibody (mAb)
process train is given in Figure 4
The CampE matrix can assign val-
ues descriptors or in this case
integrate a heat map to commu-
nicate potential risk
failuRe Modes
and effects analysis
Failure modes and effects analy-
sis (FMEA) is a systematic pro-
active method for evaluating a
process to identify where and
how it might fail and to assess
the relat ive impact of d i f fer-
ent failures It is used to iden-
tify the parts of the process that
represent the greatest risk to the
productrsquos performance FMEAs
are one of the most commonly
used risk analysis tools used in
the biopharma industry today
FMEAs are based upon risk rank-
ing tables that provide a com-
mon definition for ranking the
severity of a failure and the like-
lihood of occurrence These are
typically ranked on a scale of 1
to 10 then multiplied together
to give a r isk priority number
(RPN) For FMEAs that do not
intend to address potential fail-
ure modes dur ing the design
activity such as process FMEAs
an additional evaluation cate-
gorymdashProbability of Detectionmdash
is used It is not unusual for an
FMEA to generate a large num-
ber of potential failure modes
FMEAs can be effective as part of
deviation and corrective and pre-
ventive action (CAPA) root cause
investigations as a structured
tool for identifying and demon-
strating a true root cause for a
non-conformance
Risk Ranking and filteRing
Risk ranking and filtering (RRF)
is a common facilitation method
used for risk management and
is also known as relative r isk
ranking risk indexing and risk
matrix and filtering The intent
is to provide sharper focus to the
critical risks within a systemmdash
typically from a large and com-
plex set of risk scenarios RRF
works by breaking down overall
r isk into risk components and
evaluat ing those components
and their individual contribu-
tions to overall risk RRF is most
suited to comparing and manag-
ing a portfolio of complex risks
RRF like all risk-assessment tools
requires agreed-upon sets of risk
factors and evaluation criteria
RRF provides a means to priori-
tize and filter individual risks
by combining the evaluations of
risk components against set cri-
teria into a single risk score
Applying RRF requires identi-
fying the primary risk question
then defining the head topics
and subtopics An example of
a CDMO audit risk assessment
structure is shown in Figure 5
Figure 5 Risk ranking and fltering (RRF) outsourcing example structure
Risk question
Subtopics
Head topics
What should the audit frequency be at the CDMO to ensure GMP compliance
Engineering
Calibration Manufacturing
Labeling
Supplier
Storage
Changecontrol
Batch release
Deviations
Corrective and
preventive actions
Validation
Packaging
QC testing
Maintenance
Operations ComplianceSupplychain
10 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Quality Risk Management
Biologics Development and Manufacturing Trends Part I
Eric Langer Managing Partner BioPlan Associates talks about the results from BioPlan Associatesrsquo 12th Annual Report and Survey of Biopharmaceutical Manufacturing Capacity and Production Trends in downstream processing protein A and single-use technology are discussed in Part I of this discussion For a discussion on productivity trends and biosimilars see Part II of the interview on page 25
With this structure in place
each risk can be assessed against
the probabil ity of occurrence
and severity impact and summa-
rized in a simple heat map
Risk-adjusted
net pResent value
For those decision milestones
that require investment in capi-
tal or resources a risk-adjusted
net present value (rNPV) is a
more acc urate method than
convent iona l N PV a na ly se s
for communicat ing the t r ue
cost of an investment decision
rNPV is sometimes referred to
as expected NPV (eNPV) rNPV
modifies the standard NPV cal-
cu lat ion of d iscounted cash-
f low analysis by mult iply ing
each cash flow by the estimated
probability that it occurs (the
estimated success rate) In the
language of probability theory
the rNPV is the expected value
rNPV is the standard valuation
method in the drug development
industry where sufficient data
exists to estimate success rates
for all RampD phases
conclusion
Biopharmaceutical products and
processes figure among the most
complex drug development life-
cycles within the industry A
structured QRM program that
integ rates s t anda rd i zed r i sk
assessment tools as part of the
overa l l product development
program can highlight the criti-
cal technical compliance and
regulatory risks when consider-
ing an outsourcing service pro-
vider The application of simple
QRM tools will provide structure
to the decision-making and eval-
uation process and when com-
bined with a simple knowledge
management framework provide
a foundation for all future prod-
uct programs Insight into the
risk and mitigation strategies can
reduce a programrsquos risk profile
significantly
RefeRences 1 ICH Q9 Quality Risk Management
(2005)
2 ICH Q5A-Q5E Quality of
Biotechnological Products
3 ICH Q8 Pharmaceutical Development
(2009)
4 Parenteral Drug Associates
Technical Report 42 Process
Validation for Protein Manufacturing
(2005) Bp
wwwtosohbiosciencecom
Tosoh Bioscience and TOYOPEARL are registered trademarks of Tosoh Corporation
Every mAb is unique
Your Protein A should be as well
TOSOH BIOSCIENCE LLC bull Customer service 866-527-3587 bull Technical service 800-366-4875 option 3
TOYOPEARLreg AF-rProtein A HC-650FHigh Capacity Protein A Resin for Monoclonal Antibody Purifi cation
0
10
20
30
40
50
60
70
80
2 35 5
Residence time (minutes)
DBC
for I
gG (g
L)
1 gL
5 gL
10 gLResin TOYOPEARL AF-rProtein A HC-650FColumn size 5 mm ID times 5 cmMobile phase 002 molL sodium phosphate 015 molL NaCl pH 74Residence time 2 35 5 minDetection UV 280 nm (10 breakthrough)Sample human IgG 1 5 10 gL in mobile phase
12 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources CROCMO Viewpoints
Biopharma Advances
Demand Specialized Expertise
Contract service providers share insights on biopharma market developments and the implications of biosimilar drug approvals
The ediTors of Biopharm international
The approval of the first biosimilar in the
United States as well as continuing consolida-
tion in the biopharma and contract develop-
ment and manufacturing markets are just
two indicators of the ongoing evolution of
biopharmaceutical development Representatives of
contract service providers shared observations trends
and projections with BioPharm International
Roundtable participants are Gary Chambers busi-
ness manager biopharma labs Europe SGS Bill
Hartzel director of strategic execution Catalent
Pharma Solutions Chris R Lively PhD director of
biopharmaceutical services PPD Scott Lorimer
VP Global Operations Patheon Biologics Eugene
McNally PhD executive director PPD Consulting
Rekha Patel global director large molecules devel-
opment and analytical solutions Catalent Pharma
Solutions and Mark Rogers vice-president SGS
Life Science Services USA
RegulatoRy and business tRends
BioPharm What regulatory changes have positively or
negatively impacted biopharmaceutical development
manufacturing processes
Ad
am
Ga
ult
Ge
tty Im
ag
es
info_contractmanufacturingebsicom | 1 800 441 4225 | emergentcontractmanufacturingcom
Aseptic FillFinish
Pre-Clinical Development
BDSManufacture
Clinical amp Commerical
Lyo CycleDevelopment
Emergent BioSolutions has a proven track record as a world-class provider of contract manufacturing services for both bulk drug substances and sterile injectable drug products Our team has successfully launched 20 commercial products and developedmanufactured over 200 clinical candidates for our clients
Emerging Capability
State-of-the art flexible single-use facility enables turnkey upstream and downstream solutions for clinical and commercial scale biopharmaceutical drug development
Emergent Contract Manufacturing
Enhancing Life in Every Single Dose
14 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources CROCMO Viewpoints
McNally (PPD Consulting) FDA
establ ished a new Off ice of
Pharmaceutical Quality in 2014
which we anticipate will have major
impacts on the biopharmaceuti-
cal development and manufactur-
ing process This reorganization
was designed to enhance quality
drug assessment by realigning sev-
eral elements of the preapproval
and surveillance inspection pro-
cess Integrating risk-based review
GMP inspection implementation
of quality by design and the new
FDA process validation guidance
within one office is expected to
significantly change the biophar-
maceutical development and manu-
facturing process
H a r t z e l ( C a t a l e n t P h a r m a
Solutions) In todayrsquos market there
are significant manufacturing
challenges in traditional glass vial
filling applications These chal-
lenges manifest in quality issues
with the final container closure
and may be related to microbial
contamination glass particulates
and foreign materials that lead to
necessary market action causing
supply issues
Lorimer (Patheon Biologics) The
greatest regulatory change in recent
times is the acceptance and approval
of biosimilars
BioPharm What business trends
have posit ively or negatively
impacted biopharmaceutical devel-
opmentmanufacturing processes
H a r t z e l ( C a t a l e n t P h a r m a
Solutions) Today there is a stronger
emphasis in the development life-
cycle on the delivery of the mol-
ecule to the patient and not just
the molecule itself Deliverydevice
experts are being added to teams
at Phase II to improve the delivery
beyond the traditional vial
Lively (PPD) Growing interest
in biopharmaceutical drug devel-
opment necessitates partnering
between clients and contractors to
increase industry capacity breadth
of capabilities expertise and
the experience required to bring
these drugs to market The client
will receive the most benefit by
selecting a high-quality contract
research organization (CRO) lab
that is able to meet its needs and
work collaboratively with the cli-
ent to ensure timely development
Lorimer (Patheon Biologics) The
trend of small biotech partner-
ing with large pharma for clinical
manufacturing and development
has certainly facilitated the full
development of more novel mol-
ecules Also the increasing trend
toward outsourcing of GMP biolog-
ics manufacturing ensures biopro-
cessing and testing is performed
by expert manufacturers with
proven track records in quality and
biomanufacturing This helps to
reduce the risk to clinical programs
and product safety
technicalscientific tRendsBioPharm Can you describe pro-
ductivity improvements your com-
pany has experienced from new
technologies
Patel (Catalent Pharma Solutions)
Catalent Pharma Solutions has sig-
nificant ongoing investments in
enhancing our large-molecule ana-
lytical capabilities and productiv-
ity to meet and advance current
industry needs Recent invest-
ments include the updatednew
technologies new assay strategies
and updated electronic systems
and processes
Lively (PPD) Evolving character-
ization expectations for biologics
have driven improvements in ana-
lytical equipment processes and
systems Ultra performance liquid
chromatography (UPLC) systems
have improved resolution and sen-
sitivity while reducing run times
In addition 2D high-performance
liquid chromatography (HPLC)
high-resolution mass spectrom-
etry (MS) allows for analysis of
samples incompatible with tradi-
tional MS Reporter gene bioassays
apply genetically engineered cell
lines both to directly model mech-
anisms of action and to amplify
assays for improved performance
with shorter incubations and
increased signalnoise relative to
standard bioassays
Lorimer (Patheon Biologics) The
main productivity improvement
has been increasing the through-
put of products in Patheonrsquos mul-
tiproduct biopharmaceutical GMP
facilities Single-use disposable
bioreactors and similar single-use
bioprocess equipment minimize
plant downtime which is tradi-
tionally required for line clearance
and product changeover The com-
plexity of product changeovers is
reduced by single-use technology
which decreases the need for clean-
in-place steam-in-place and qual-
ity control testing Typically line
Approval of the first
biosimilar in the
United States as well
as consolidation in
the biopharma and
contract development
and manufacturing
markets are just
two indicators of the
ongoing evolution of
biopharmaceutical
development
YOUR PARTNER FROM CONCEPT TO COMMERCIAL
1
42
5
3CELL LINE DEVELOPMENT
bull Cell line development amp selection
bull Cell line characterization amp optimization
bull Subcloning
bull Suspension adaptation
PROCESS DEVELOPMENT
bull Upstream development amp optimization
bull Media optimization feeding strategyamp design including DoE approach
bull Downstream development ampoptimization
bull Process optimizationprocess scale-up
bull Viral inactivationremoval study design
bull Formulation development amp screening
bull Up to 100L controlled bioreactors
bull Process validation
ANALYTICAL METHODS DEVELOPMENT
bull Development feasibility optimizationtransfer qualification amp validation of methods
bull Identity purity potency safety ampcharacterization
cGMP BIOMANUFACTURING
bull Commercially-licensed facility
bull Flexible manufacturing capabilities
bull Stainless steel amp single-use systemsfrom 100L-1000L
bull FDA EU amp ANVISA inspected
QUALITY AND REGULATORY SERVICES
bull Regulatory strategy amp submissions
bull cGMP CMC Section 7 support
bull In-process amp release testing
bull Stability testing
bull Reference standard generation
For more information please visit us at wwwavidbiocom or
e-mail businessdevelopmentavidbiocom
THE AVID
ADVANTAGE
16 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources CROCMO Viewpoints
clearance time is reduced by sev-
eral days
R o g e r s ( S G S L i f e S c i e n c e
Services) As an analytical ser-
vice provider SGS is constantly
in search of means to improve
its laboratory efficiencies partic-
ularly those that enhance turn-
around time without adversely
effecting quality With this in
mind substitution of HPLC for
UPLC rapid microbiolog ica l
screening methods and invest-
ment in automated approaches to
complex analytical problems such
as protein sequencing are now
being used within the SGS labora-
tory network
Chambers (SGS) From a CRO
point of view the main produc-
tivity improvements in analytics
have been from higher through-
put systems and data analysis The
move to these faster systems with
semiautomated data processing has
allowed us to improve turnaround
times which are passed on to cli-
ents in terms who win on faster
to market times and faster gono
decisions
BioPharm What additional tech-
nology improvements are needed
to improve the efficiency of bio-
processing
Lorimer (Patheon Biologics)
Process analytical technology
(PAT) for continuous monitoring of
bioprocesses is helping reduce the
variability on biopharmaceutical
manufacturing
Also biopharmaceutical devel-
opment and process validation
have been accelerated by the use
of mini-bioreactor systems which
enable a large amount of process
development data to be gener-
ated within a very short timeline
These multi-bioreactor systems
can reduce process develop -
ment timelines by months when
applied to early-stage or late-stage
bioprocesses
Rogers (SGS Life Science Services)
The development of many tech-
nologies follows a common path
from academia to commercial
application and nowhere is this
more evident than in the field of
bioprocessing In almost all exam-
ples the key to this progression
lies in the ability to simplify opera-
tional aspects of the technology
and improve throughput This has
in the past been clearly demon-
strated in for example the field of
mass spectrometry and is currently
evolving with techniques involved
in biophysical characterization
BioPharm What is the greatest
technical challenge facing biophar-
maceutical companies today
Hartzel (Catalent Pharma Solutions)
Cost to manufacture will continue
to be a major challenge for the
industry especially with the rise
of biosimilars and market pressures
to drive down the cost of medi-
cines However the products that
are coming to market are more
targeted which leads to smaller
batch sizes This is counter to the
manufacturing adage of being able
to leverage economies of scale to
drive out costs hence the need to
focus on alternatives technologies
and innovation to reduce the man-
ufacturing costs versus economies
of scale
Lively (PPD) Application of ana-
lytical techniques to better char-
acterize innovator and biosimilar
or follow-on products by physico-
chemical and functional methods
are required and will continue to
be driven by the complexity of
biologics development For exam-
ple changes in formulations may
cause different leachable profiles
requiring increasing emphasis on
extractablesleachables techniques
(ie high-resolution MS) to sup-
port characterization of formu-
lation effects identification of
degradation and impurities and
determination of their potential
impact through application of
potency bioassays
Lorimer (Patheon Biologics) Most
of the technical challenges for
manufacturing have been over-
come and the technologies for
development and manufactur-
ing have been widely adopted
Perhaps the greatest challenge is in
clinical development of novel and
originator molecules where in-vitro
model systems are still not a great
predictor of clinical performance
Rogers (SGS Life Science Services)
To highlight one technical chal-
lenge above all others in todayrsquos
biopharmaceutical industry is
very difficult The complexity of
biotherapeutics often results in
considerable technical difficul-
ties as for example in the area
of impurities recognition of host-
cell proteins (HCPs) and identi-
fication of structural variants at
trace levels are certainly high on
the list of technical concerns The
necessary inclusion of relatively
elaborate analytical techniques
such as sedimentation velocity
analytical ultracentrifugation (SVndash
AUC) within a traditional qual-
ity control release environment is
also not without problems
BioPharm What are the pros-
pects for continuous manufac-
turing to be firmly established in
bioprocessing What are the road-
blocks to implementation
Lorimer (Patheon Biologics)
Continuous product ion f rom
mammalian cell cultures has been
operated in perfusion bioreactors
for many years The main road-
block for continuous processing is
downstream processing of proteins
which currently demands discrete
and distinct unit operations for
removal of impurities removal
of contaminants concentration
of the products and formulation
each in separate controlled steps
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CELL CULTUREPERFORMANCE
copy2015 Sigma-Aldrich Co LLC All rights reserved Sigma-Aldrich SAFC and EX-CELL are trademarks of Sigma-Aldrich Co LLC registered in the US and other countries
NEXT GENERATION MEDIA PLATFORM
18 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources CROCMO Viewpoints
and which are not currently ame-
nable to continuous processing
the Rise of biosimilaRs
BioPharm What impact w i l l
biosimilar drugs have on bio-
pharma businesses bioprocessing
approaches and the contract ser-
vices market
Rogers (SGS Life Science Services)
The European biopharma land-
scape has already experienced
impact of the biosimilar drug mar-
ket leading to rapid expansion of
traditional small molecule generic
manufactures into the bio arena
Recent FDA approval of the Sandoz
biosimilar Zarixo may be the seed
for similar changes in the US pro-
viding a potential new line of busi-
ness for established pharmaceutical
companies Contract service pro-
viders such as SGS who already
have considerable experience with
biosimilars are able to offer exper-
tise to businesses new to this mar-
ket and will no doubt benefit from
such expansion in the US
Lively (PPD) Increased invest-
ment in biosimilars is driving
interest in improving and stream-
lining the development processes
as well as the sensitivity and scope
of characterization assays used to
compare biosimilars and innova-
tor drugs The expanding capac-
ity needs result in partnerships
between clients and their contrac-
tors with the systems experience
and expertise to achieve the qual-
ity and speed required while meet-
ing all regulatory expectations for
product approval
Chambers (SGS) With nearly
20 years exper ience perform-
ing biosimilar analysis the big-
gest impact had been the massive
increase in the characterization
needed for biosimilars compared
to innovators (although higher
standards are now needed for new
innovators too) This has resulted
CMOs Add Capabilities
Consolidation in the contract development and manufacturing market has resulted in new capabilities and facility expansions
In May 2015 CMC Biologics announced that it is expanding its Copenhagen Denmark facility to increase its manufacturing capacity through the installation of six 2000-L bioreactors The bioreactors can be run singly or in groups simultaneously or sequentially and are part of the companyrsquos signature Bioreactor 6Pack single-use program The Copenhagen installation will begin initial GMP production in November 2015 and will feature three bioreactors to start Three bioreactors will be added at a later date to complete the configuration Meanwhile the Bioreactor 6Pack at CMCrsquos Seattle facility will complete its first GMP run in mid-2015 and will be ready for commercial launch by the end of the year Through its recent expansions CMC plans to expand its global capacity by more than 30000 liters in the United States and Europe
Also in May 2015 SAFC announced an expansion to its St Louis MO facility to support the commercial-scale production of antibody-drug conjugates The facility which is expected to be online and operational in the third quarter of 2015 was designed to meet SafeBridge category 4 compound handling requirements for highly active or cytotoxic compounds The expansion of an existing Carlsbad CA location will enable SAFC to offer fillfinish capabilities of viral products to its clients in the gene therapy viral vaccine and immunotherapy sectors
Rentschler announced in March 2015 that a 2000-L bioreactor that the company commissioned and built in six months is up and running The bioreactor will be integrated into existing manufacturing suites containing two 1000-L single-use bioreactors according to a company statement The companyrsquos twin bioreactor systemmdashdesigned for running two main bioreactors in parallel with one shared downstream processing unitmdashwill be functional by 2017 The twin system is estimated to double the companyrsquos production capacities for cell culture-derived proteins
In December 2014 FUJIFILM Diosynth Biotechnologies USA (FDBU) acquired Kalon Biotherapeutics adding viral and cell-culture vaccine expertise and capabilities In other activity FDBU started construction of a three-story 62000-ft2 facility in Research Triangle Park NC in January 2015 to house the companyrsquos process and analytical research and development process sciences and stability groups The expected completion date is Q4 2015
In September 2014 PCI a provider of packaging services acquired Biotec Services International a provider of clinical-trial services and temperature-controlled pharmaceutical services headquartered in Bridgend Wales UK The addition expanded PCIrsquos presence in the European Union and added packaging storage and distribution capacity and consultative services for clinical-trial supplies In January 2015 Biotec announced the validation of its clinical supply facility expansion which added almost 50 to the companyrsquos clinical trial materials handling capacity
wwwbiopharminternationalcom June 2015 BioPharm International eBook 19
Outsourcing Resources CROCMO Viewpoints
in challenges in data handling
interpretation and data presenta-
tion Biosimilars have also caused
the re-emergence of orthogonal
techniques like size exclusion
chromatographyndashmulti-angle laser
light scattering (SEC-MALL) and
SV-AUC for aggregation and cir-
cular dichroism (CD) and fourier
transform infrared spectroscopy
(FTIR) for higher-order structure
as critical analyses to understand
and compare and detect subtle
higher-order structural differences
between innovator and biosimilar
samples
Hartzel (Catalent Pharma Solutions)
The rise of biosimilar drugs will
dawn the next generation of bio-
logic manufacturing and force
the industry to look at new ways
of manufacturing to drive down
costs Therefore the industry will
seek new manufacturing partners
with strong technical expertise to
drive out costs through innovation
and operational excellence
Lorimer (Patheon Biologics)
Genera l ly b ios imi la r d r ugs
will encourage competitiveness
within the biopharma sector
Biomanufacturers expect increased
pressure on cost of goods and
pricing Biopharmaceutical con-
tract service providers with a flex-
ible multi-product operation and
proven track record in the indus-
try are well placed to ensure care-
ful control of manufacturing costs
and product quality Processing
approaches wonrsquot change in terms
of technology but there will be a
greater emphasis on operational
excellence to reduce costly inef-
ficiencies and improve yields from
bioprocesses As more biosimilars
come to the forefront and as the
industry trend for outsourcing
continues increasing operational
flexibility while maintaining the
highest quality standards will be
the keys to success
business challenges
BioPharm What is the greatest
business challenge facing biophar-
maceutical companies today
Lively (PPD) As with all phar-
maceutical drug development the
greatest challenge is getting new
life-changing and potentially life-
saving drug candidates to mar-
ket Biopharmaceuticals face more
challenges than traditional small-
molecule drug products because
the science of characterization
of such biologic drugs is rapidly
evolving along with the regulatory
landscape Those companies that
are best able to successfully char-
acterize and differentiate innovator
and biosimilar products for safety
and efficacy will have the greatest
opportunity to benefit
the knowledge gap
BioPharm In what areas do you
see knowledge or expertise gaps in
current biopharmaceutical compa-
nies Why do these gaps exist
Lorimer (Patheon Biologics) There
is a gap in translating good sci-
ence to industrial applications of
technologies that provide for reli-
able efficient cost effective man-
ufacturing at commercial scale
Maintaining a focus during early
development on eventual commer-
cial manufacturing requirements
while balancing limited develop-
ment resources requires a broad
base of coordinated organiza-
tional skillsets and a disciplined
approach
Hartzel (Catalent Pharma Solutions)
Devicedelivery expertise is an
area that has a potential gap For
biologics the historic default con-
tainer closure has been a tradi-
tional glass vial As the healthcare
industry seeks ways to improve
patient care and reduce costs the
delivery to the patient needs to
adopt new technologies and this
is why we have seen a rise of pre-
filled syringes and autoinjectors
These technologies will continue
to evolve and so will the demand
for devicedelivery experts
Lively (PPD) One of the chal-
lenges we see is the various levels
of knowledge and expertise that
exist between biopharmaceutical
RampD and the testing and regula-
tory industries That differential is
impacting those industriesrsquo ability
to fully consider and effectively
implement expectations and guid-
ance for physicochemical and
functional characterization expec-
tations of biologic drugs
Lorimer (Patheon Biologics) The
commercial biopharmaceutical
industry demands global sourc-
ing of materials services supply
and ultimately distribution to each
patient This requires a robust inte-
grated supply chain to deliver high
value products to patients on-time
and at the right quality Doing this
reliably and efficiently with long
production lead times and uncer-
tain market sales forecasts is an
industry wide challenge
Speed-to-market remains a key
challenge to the development of
biopharmaceuticals Speedy first-
time-in-man clinical trials can be
a major hurdle for small biotech
companies and large pharma alike
Rogers (SGS Life Science Services)
I believe there continues to be a
significant problem in the level of
fundamental scientific expertise
within many biopharmaceutical
businesses In part this may be
attributed to the lsquokitrsquo and lsquoblack
boxrsquo approach of many modern
day technologies Due to the
complexity of many biopharma-
ceuticals their development and
success as therapeutics requires a
comprehensive range of scientific
disciplines and expertise which
can be difficult to fully realize
internally particularly for small
and mid-size companies bp
20 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources FillFinish
FillFinish Trends
Automation and disposables continue to reduce human error
Eric s LangEr
Fillfinish operations continue to be domi-
nated by trends in automation and the adop-
tion of single-use equipment But these are
by no means the only factors affecting these
high-value operations according to BioPlan
Associatesrsquo latest biomanufacturing study (1) Fill
finish processes are among the most outsourced
activities in biomanufacturing today and a service
providerrsquos capacity for vialing pre-filled devices
and lyophilization is crucial In a recently pub-
lished whitepaper (2) BioPlan Associates determined
that there is sufficient global in-house capacity
for biologics but the need continues to grow for
greater access to specialized outsourcing competence
Whatrsquos trending is significant improvements in auto-
mation and operations
AutomAtion And single use defining Cmo strAtegy
The top trends today involve automation and devel-
opment of better disposable technologies As part of
the BioPlan study biomanufacturers were asked to
select the trends they believe to be the most impor-
tant in fill and finish today The top three trends
are single-use equipment automation in full isolator
units and facilities becoming multi-product ori-
ented (see Figure 1)
Other important trends were noted including
bull Increased serialization and product labeling for
anti-counterfeiting
Eric s LangEr is president and managing partner at BioPlan Associates Inc elangerbioplanassociatescom tel 3019215979 wwwbioplanassociatescom
Ma
ria T
ou
tou
da
ki
Ge
tty Im
ag
es
WITH ALTHEA YOU HAVE THE POWER TO MAKE
You have the power to make a difference To make new therapeutics that improve quality of life and inspire a healthier world To do this you need a manufacturing partner who embraces your every challenge as its own who shares your unwavering tenacity and dedication from clinical studies through commercial success Thats The Power To Make
PLAY VIDEO
CONTRACT
MANUFACTURING
Q Development
Drug Substance
lj Drug Product
(D Al TH EA I THE POWER TO MAK A MEMBER OF THE AJINOMOTO GROUP
22 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources FillFinish
bull More f i l l f i n i sh fac i l i t ie s
o p e r a t i n g i n d e v e lo p i n g
regions
bull C o m p u t e r - b a s e d v i s u a l
i n s p e c t i o n a r t i f i c i a l
intelligence
bull Use of complex administration
systems
single-use equipment in fillfinish operAtionsT h e a d o p t i o n o f d i s p o s -
ab le e qu ipme nt i n f i l l f i n -
i s h o p e r a t i o n s e l i m i n a t e s
cross-contamination risks and
adds flexibility in process scale
While regulatory rest r ic t ions
may be increased by the adop-
tion of such equipment single-
use appl icat ions a lso enable
contract manufactur ing orga-
nizat ions (CMOs) to increase
fac i l i t y ut i l i z at ion t h rough
multi-product strategies which
can decrease their cost of goods
Experts in the f ield discussed
these trends
Peter Pekos CEO and president
of Dalton Pharma Services a fill
finish CMO says ldquoFor a CMO
disposables can be attractive hellip
For example a disposable isola-
tor can be packed and stored pre-
sterilized for use when needed
a f ixed isolator requires f ixed
space at all times Disposables
also allow a CMO to handle proj-
ects using specific systems for
non-typical project needs such
as disposable isolators without
going to the expense of buying
permanent isolator infrastruc-
ture Disposables do not obviate
the need for technical expertise
hellip so the need for a CMO isnrsquot
really reduced In fact CMOs
with expertise in single-use sys-
tems hellip can make them more
attractiverdquo
Mar t ina Fe r neman cor po -
rate development manager at
Recipharm bel ieves that the
adoption of single-usedispos-
able equipment is now impacting
f i l l and f inish ldquoIn mult ipur-
pose sites the cleaning proce-
dures will become more crucial
to avoid cross contamination
Single-use equipment [also] has
the advantage of shorter lead
t imes and lower procurement
costs Since no cleaning proce-
dure has to be established and
aseptic connections are easier to
be built-up the use of single-
use equipment is not only faster
but also safer than conventional
equipmentrdquo
AutomAtion in full isolAtor unitsW hi le s ing le -use equ ipment
adoption may be one of the hot-
test f i l lf inish trend automa-
tion technologies may actually
be experiencing more rapid rates
of implementation among bio-
manufacturers Indeed sepa-
rate results from BioPlanrsquos 12th
annual study suggest that the
industry wi l l be as l ikely to
implement automation technolo-
gies as they will use single-use
f i l l-f inish devices dur ing the
next 24 months
The removal of human factors
is a key to improving product
quality Isolators and automa-
tion are therefore key drivers
as facilities seek to improve their
i n f r a s t r u c t u r e I n nov a t io n
around equipment and facilities
able to handle multiple products
is going to continue Flexibility
is key as the reduced flexibility
of isolators (and higher cost) in
relation to traditional restricted
access barrier (RAB) systems may
deter some CMOs from adopt-
ing isolators The jury is st i l l
out because the decision fac-
tors between RAB and isolators
are complex and this tends to be
a high-cost decision often left
to the larger f illf inish CMOs
ldquoCMOs will adopt isolator tech-
nologies in their processes to
meet industry needs and reduce
r isk In some cases this wil l
also include disposable isolators
which can offer the benefits of
fixed isolators but add a degree
of f lexibil ity to the manufac-
turerrdquo Pekos notes
According to Ferneman adopt-
ing automat ion in ful l isola-
tor units to reduce the need for
operators is a trend seen in the
CMO market ldquoUse of barr ier
technology (RABS or isolators)
should ensure optimal protec-
t ion of ster i le areas Isolators
bear a better potential to prevent
biocontamination Since the iso-
lator is a closed system a lower
air quality than in RABS systems
can be usedrdquo For freeze-dried
products the RABS system is a
better choice because loading
has to be performed in class AB
surrounding
Fig
ur
e 1
is
co
ur
te
sy
oF
th
e a
ut
ho
r
Figure 1 selected bioprocessing fllfnish trends in 2015
Single-usedisposable equipment
adoption55
36
35Facilities becoming more multi-
product-use oriented
Automation in full isolator units
reduce need for operators
More compounds More accuratelyFaster than ever
Quantitation transformed
Todayrsquos range of possible therapeutic agents from small molecules to peptides to antibodies and
ADCrsquos makes quantitative bioanalysis a challenge Quantify potential therapeutics faster and more
accurately with our new portfolio of LC-MS instruments sample prep solutions and software HRAM
solutions using Thermo Scienti ctrade Orbitraptrade MS enables selectivity for complex molecules while
triple quadrupole MS delivers SRM sensitivity and speed to detect targeted compounds more quickly
Meet todayrsquos challenges with us and together wersquoll transform quantitative bioanalysis
Thermo Scienti ctrade Orbitrap Fusiontrade MSUnprecedented depth of analysis and
throughput for biological discovery
Thermo Scienti ctrade TSQ Quantivatrade MSLeading SRM sensitivity and speed
in a triple quadrupole MSMS
Thermo Scienti ctrade Q Exactivetrade MSScreen and quantify known and unknown targets with HRAM Orbitrap technology
copy 2
014
Ther
mo
Fish
er S
cien
tifi c
Inc
All
right
s re
serv
ed A
ll tr
adem
arks
are
th
e pr
oper
ty o
f The
rmo
Fish
er S
cien
tifi c
and
its
subs
idia
ries
bull Discover more at thermoscienti ccomquan-transformed
24 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources FillFinish
Cmos stAying
AheAd of the Curve
In the whitepaper on in-house
fillfinish operations for recom-
binant therapeutics (2) BioPlan
found relatively low average in-
house capacity utilization rates
for lyophilization (55) pre-filled
devices (58) and vialing (70)
This finding suggests that for fill
finish CMOs the real value isnrsquot
necessarily in providing additional
flexible capacity but rather in posi-
tioning themselves as providing
highly sophisticated and novel
technologies and expertise in fill
finish services Indeed CMOs are
expected to have state-of-the-art
equipment As Pekos notes ldquoCMOs
who implement flexible and inno-
vative technologies to make man-
ufacturing or development more
efficient faster compliant or more
economical all serve to make them
more attractive to customersrdquo
For CMOs that make use of
innovative fillfinish technologies
there appears to be a good deal
of demand Results from BioPlanrsquos
annual studies indicate that fill
finish services are among the most
widely and heavily outsourced
biomanufacturing activities today
and are also among the activities
that biomanufacturers are most
likely to outsource at significantly
higher levels in the future
Biomanufacturers and CMOs are
actively looking to their fillfin-
ish equipment suppliers and are
beginning to demand additional
new technologies innovation and
product development In 2014 for
example when the top areas that
biomanufacturers wanted their
suppliers to focus their develop-
ment efforts on were measured
fillfinish services topped the list
cited by 23 of biomanufacturers
Not only did that figure represent
a substantial increase from years
past (13 in 2011) but it was also
ahead of other services including
upstream and downstream process
development services
Fillfinish will continue
to be an area of
growth for CMOs
There are a number of areas in
which suppliers can add value to
fillfinish innovation according
to industry experts Jim Agalloco
president of Agalloco amp Associates
in Belle Mead NJ says ldquovendors of
equipment and components to fill
finish must continue their roles as
technology leaders Innovation in
this market has always been sup-
plier driven because the operating
firms do not have the necessary
expertise Collaboration between
equipment manufacturers and
component suppliers is essential
for implementation of new con-
tainer systems single-use dispos-
ables and other advancesrdquo
Ronald Malone senior principal
scientist at Novartis Vaccines says
ldquoBlow-fill-seal containerclosure
systems are beneficial for small-
volume parenterals However over-
all cost may still be higher per unit
than traditional vialstopper fill-
ing Vaccines and biologicals can
benefit from single-dose disposable
systems that drive down the cost
of the containerclosure system
This will assist the global supply to
developing world countries where
these products are truly neededrdquo
W B W i e d e r s e i m o f
PharmaBioSource in Wayne PA
states ldquoWe see smaller higher
technical facilities inclusive of dis-
posables (isolators and not RABS)
and advanced aseptic work cell
technology as the wave of the
futurerdquo
WhAt does the future hold
BioPlanrsquos survey data and indus-
try interviews indicate that fill
f inish will continue to be an
area of growth for CMOs that
maintain the required technical
quality and regulatory expertise
in this segment Experts have
taken note of CMOsrsquo introduc-
tion of smaller filling machines
for syringes or vials a trend that
may be in response to the indus-
try-wide move towards smaller-
scale manufactur ing projects
This shift may be accelerated by
the advent of biosimilars which
should provide an increasing
number of projects for fillfin-
ish CMOs although likely on a
smaller scale This increase in
projects could lead to potential
mergers and acquisitions with
some experts noting that fillfin-
ish CMOs are already engaging
in this trend toward larger capac-
ity and global operations
Indeed within the past 18
months a number of acquisi-
tions have occurred including
Pfizerrsquos acquisitions of Hospira
a nd In noPha r ma Pat heonrsquos
mergers in the contract services
space IDT Biolog ika invest-
ments Vet ter invest ing USD
$100 million to upgrade fill-fin-
ish facilities in the United States
a nd Ger ma ny a nd Ba xte r rsquos
investment in German facilities
and numerous others (3)
For CMOs to stay ahead of the
curve they will likely need to
continue to adopt disposables
technologies and advance their
automation in full isolators Ray
Cardin of PharMax Consulting
says ldquoIncreased use of dispos-
able pre-sterilized f illing tech-
nologies [are future trends] The
combination of these pre-ster-
ilized units with the coming of
age of ster i le connectors that
provide high sterility assurance
wwwbiopharminternationalcom June 2015 BioPharm International eBook 25
Outsourcing Resources FillFinish
Biologics Development and Manufacturing Trends Part II
Eric Langer Managing Partner BioPlan Associates talks about the results from BioPlan AssociatesOtilde 12th Annual Report and Survey of Biopharmaceutical Manufacturing Capacity and Production Langer discusses what respondents indicated as the number one trend in biologics manufacturing improving efficiencies and the biosimilars market
in less clean environments is
changing the way aseptic pro-
cesses are designedrdquo
Gordon Leichter PhD Eastern
r e g io n a l s a l e s m a n a ge r a t
Belimed in Charleston SC states
ldquoAutomat ion in fu l l i solators
wil l el iminate operator inter-
vention and laser-sealed vials
Automation will become more
integral to building automation
and enterprise systemsrdquo
Douglas Stockdale vice-presi-
dent CMCTechnical Operations
Hi l lhurst Biopharmaceut ica ls
Los Angeles CA says ldquoIndustry
will continue pushing the PAT
[process analytical technology]
envelope to f ind a lternat ive
methods to improve in-process
methodologies and processesrdquo
Fe r ne ma n add s ldquoCu r r e nt
trends in fillfinish innovation
will probably focus the market
authorization holders on a few
strategic products resulting in
outsourcing of a bigger share of
products overallrdquo
ConClusion
Until recently the handling of
ster i le l iquids in the pharma-
ceutical industry has relied on
relatively consistent techniques
during the past 100 years with
relatively slow changes in tech-
nologies and regulations result-
ing in incremental improvements
in safety efficiency and prod-
uct quality During the past 20
years however costly biologics
have taken a prominent indus-
try role The value of these drugs
can often be measured in tens of
thousands per dose This has put
greater pressure on these down-
stream fillfinish operations to
ensure quality safety and cost-
efficiency are not compromised
at this crucial late stage in manu-
facturing Trends in fillfinish for
recombinant therapeutics include
the increased use of isolator
technologies more high-speed
operations and other innovative
approaches including single-use
processing As a result of industry
research BioPlan expects more
outsourcing of fillfinish opera-
tions in coming years
referenCes 1 BioPlan Associates 12th Annual
Report and Survey of Biopharmaceutical
Manufacturing Capacity and Production
(Rockville MD April 2015) www
bioplanassociatescom
2 BioPlan Associates Trends in Aseptic
Bioprocessing Capacity for the Fill and
Finish of Recombinant Biologics An
Analysis of US and European In-house
Capacity and Capacity Utilization (BioPlan
Associates December 2014)
3 Information derived from BioPlan
Associatesrsquo BioFacilities Newsletters Bp
26 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Cell Therapy
Taking a ldquoDevelopment-by-Designrdquo
Approach to Cell Therapies
Whether outsourcing or developing cell therapies in-house success demands a focus on quality cost of goods
and sustainability from the start
Agnes shAnley
Cell therapies both autologous and allo-
geneic have come a long way in just a
few years Countries around the world
most recently Japan have passed regula-
tions designed to speed development of
these treatments which are now a big and growing
global business
In 2013 according to the Pharmaceutical Research
and Manufacturers Association 69 cell therapies six
of them autologous or patient-specific treatments
were in clinical trials or being reviewed in the United
States alone 15 of them in Phase III trials (1)
The road is littered with failures however often
in clinical stages This has been traced to problems
with manufacturing and failure to understand pro-
cess requirements earlier in the development process
Table I outlines manufacturing issues
As a growing number of Big Pharma companies
explore the potential for immune regenerative and
other cell therapies equipment manufacturers includ-
Agnes shAnley is senior editor of BioPharm International
SC
IEP
RO
GE
tt
y Im
aG
ES
wwwcytovancecomResponsive Reliable Resourceful
Your partner in biopharmaceutical contract manufacturing of therapeutic proteins and antibodies from mammalian cell culture and microbial fermentation
28 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Cell Therapy
ing Pall Corp EMD Millipore
and GE Biosystems have set up
centers of excellence to focus on
developing equipment for this
new market Engineering compa-
nies such as Invetech and Instrom
are developing equipment specific
to this niche
More CDMos are entering
Cell therapy Market niChe
Demand for spec ia l i zed ce l l
t he rapy ma nu fac t u r ing a nd
development serv ices is a lso
growing and has attracted Lonza
Bioservices Cognate BioServices
WuXi AppTech and Roslin Cells
among others
NeoStem is fol low ing t wo
paths pursuing its own cel l
therapy pipel ine and explor-
ing contract services through
its contract development and
manufac t u r ing organ i zat ion
(CDMO) subsidiary Progenitor
Cell Therapy (PCT) With bases
in Irvine and Mountain View CA
and Allendale NJ PCT is cur-
rently working with Intrexon and
Fibrocell on connective tissue
treatments and with the United
K ingdomrsquos Adapt immune on
oncology treatments
A new CEO David Mazzo with
a doctorate in analytical chemis-
try and experience running both
private and public international
biopharma companies assumed
NeoStemrsquos leadership in January
He sees no conflict between grow-
ing a pipeline and a contract man-
ufacturing business
ldquoWe are not trying to be two
di f ferent companies and we
do not see the two competing
with each otherrdquo says Mazzo
in an interview with BioPharm
Inte rnat ionalrsquos s i ster publ ica-
tion Pharmaceutical Technology
during his second week on the
job ldquoInstead there is a symbi-
otic relationship between themrdquo
As he sees it the companyrsquos
track record in developing prod-
ucts should attract more spon-
sors ldquoProblems in development
usually occur at the interfaces
Our unique experience of having
lsquodone that beforersquo should be help-
fulrdquo he says
In January PCT entered a
partnership with Invetech an
equipment design firm based in
Australia with offices in San Diego
to develop automated equipment
for cell therapy manufacturing Fig
ur
e 1
is
co
ur
te
sy
oF
in
ve
te
ch
Figure 1 Part of an automated solution being developed by neostem and invetech Automating processes is key to reducing costs
wwwbiopharminternationalcom June 2015 BioPharm International eBook 29
Outsourcing Resources Cell Therapy
The two companies have already
been working together for a year
now honing the design and speci-
fications for the instrumentation
says NeoStemrsquos Chief Scientific
Officer (CSO) Robert Preti The
equipment will tackle cell therapyrsquos
most challenging side autologous
treatments where the manufactur-
ing lot is the patient dose adminis-
tered at the patientrsquos bedside
As Preti notes there really isnrsquot
much available today in the way
of automated equipment for cell
therapy especially on the autolo-
gous side The equipment will sep-
arate and wash cells among other
functions
labor-intensive
proCesses aDD Cost
So far Preti says the company
is evaluating the evolving equip-
ment in NeoStemrsquos own manu-
facturing efforts ldquoOne of the
largest commercial bottlenecks
is the heavy labor required by
processes especially for patient-
specific uses where one batch is
one patientrdquo
The cost of goods i s ver y
high Preti says ldquoSuccess long-
term will require a whole new
approach to development The
goal is to provide high qual-
ity and sustainabilityrdquo he says
Removing manual operat ions
and human error from the pro-
cess will be crucial
Invetech has been work ing
on cell therapy process scale-up
automation for more than 10
years and has successfully com-
pleted projects in North America
Europe and Asia for companies
that include Argos Therapeutics
Aa s t rom CCR M Hu mac y te
Innovacell Janssen kSep Systems
MolMed Organovo and ViaCyte
accord ing to R ichard Grant
global VP of the companyrsquos bio-
pharma operations who has been
with the company for more than
14 years
ldquoThe goal is to develop a mix
of equipment and manufactur-
ing st rateg ies that maximize
quality scalability and sustain-
ability with an eye toward cost-
effect iveness and commercial
viabilityrdquo Grant says Invetechrsquos
solutions typically tailor a mix of
OEM and customized equipment
to the clientrsquos processes The com-
pany recently commercialized
equipment used to manufacture
Janssenrsquos macular degeneration
treatment
Costs of current manufactur-
ing processes for both autologous
and allogeneic therapies are dif-
ficult to peg Last year experts
at University College London
attempted to pinpoint the cost and
overall economics of allogeneic
cell therapy using single-use tech-
nologies (2)
What is clear for both alloge-
neic and autologous systems is
that cell therapy development
Table I Manufacturing scenarios for cell therapies
Attributes Off-the-shelf therapiesPatient-specifc
therapies
Source material Always allogeneic Autologous or matched allogeneic
Batch size Many patients One patient
Business model Similar to pharmabiopharma New
Scaling Scale up (Increased lot size) Scale out (Increased number of lots)
Comparability vs scale Higher concern Lower concern
Manufacturing design drivers
Mission critical success + +++
Optimized process yield +++ +
Dimensional efficiency ++ +-
Integration +- ++
Automation + ++
source invetech
Table II Measuring comparability risk
Risk level Example Timing
None Automated sterility test Before biologics license application
Low Change in process unit op and cell journey is the same
Before 50 accrual in pivotal trials
Medium Change in process unit op and cell journey is similar
Before initiation of pivotal clinical trials
High Change in process unit op and the cell journey is matched
Some Phase II clinical data
source invetech
30 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Cell Therapy
and manufacturing costs are cur-
rently prohibitive ldquoThe starting
points can vary dramaticallyrdquo
Grant says He recalls one cus-
tomer whose autologous process
ran to $80000 per patient in early
stage clinical trials Automation
he says could reduce costs by
40ndash90 depending on the ther-
apy involved
DevelopMent by Design
But before one can automate any
process one must understand it
NeoStem and PCT like a growing
number of companies are taking
the principle of quality by design
(QbD) to heart in their work
Mazzo arguably one of few
life-science company CEOs to
even articulate the QbD concept
explains that the company has
gone a step further and broadened
the International Conference on
Harmonization guidances adopted
by FDA into ldquodevelopment by
designrdquo (DbD)
ldquoWe say first consider the end-
point then take process as is and
understand its unit operations
Develop inputs and outputs and
discrete steps and define the pro-
cess in a way that promotes under-
standingrdquo he says
ldquoThis is challenging given prod-
uct complexity but there is a need
to understand the mechanism of
action very well so you put each
process in this overall envelope
of DbD and consider the cost of
goods scalability and sustainabil-
ityrdquo Preti adds ldquoYou consider the
process from the end only this
time each batch is an individual
patientrdquo
The critical part is defining and
measuring process needs he says
ldquoProduct definition is very impor-
tant particularly the quality target
product profilerdquo explains Brian
Hampson VP of manufacturing
development and engineering at
PCT in an Oct 22 2014 webcast
for the International Society for
Cell Therapy (3)
have the enD in MinD
Such t h ings a s for mulat ion
issues dosage potency impu-
rities residuals and microbial
assurance need to be thought out
clearly from the start Hampson
says as well as indications for
use geographic market projec-
tions cost-of-goods targets and
IP issues
The profile needs to be a liv-
ing document that changes as the
product takes shape Hampson
says There is a tendency for peo-
ple in the industry to ignore the
product profile until they have
all the answers says Hampson
ldquoInstead it needs to be developed
really early even when you donrsquot
have all or even many of the
answers hellip you can leave them
as blanks and continue to review
add to and updaterdquo
The result is not only a tool for
better understanding the prod-
uct process and mechanism of
action but a communication tool
for stakeholders
When to start DbD for cell ther-
apies ldquoThe temptation is to begin
later in the game when you need
reasonable COGS and you need
to be sure of sustainable manu-
facturingrdquo says Hampson ldquoThe
key thing is comparability and
anticipating its implications early
in the clinical program It needs
to be flexible at the early stagesrdquo
Hampson says ldquoBut as you near
Phase III you need to lock in your
equipment evolves
In the bioreactor area there is great interest in moving from 2-D to 3-D processing to enable the processing of the cell volumes required something that companies such as Israelrsquos Pluristem have been doing for some time
Equipment designer Instrom is partnering with companies including BRTI Life Sciences to focus on 3-D cell matrix technologies developed by Dr John Brekke EMD Millipore has been partnering with PharmaCell BV to use its Mobius bioreactor platform to expand and harvest HepRG cells GE Sciences is also evaluating Wave and other systems and set up a center of excellence in Wales recently
In other equipment areas Pall Corp has been partnering with CMDG LLC on cord blood processing technology Following are some of the equipment manufacturers and systems applied in cell therapy development and manufacturing
bull Beckman Coulter bull Corning Cell Stacks and Cell Cube
bull EMD Millipore bull GE Biosciences
bull Thermo Scientificrsquos Nunc Cell Factories bull Pall Corp
wwwbiopharminternationalcom June 2015 BioPharm International eBook 31
Outsourcing Resources Cell Therapy
processrdquo Table II summarizes issues
and points where changes will be
easier
Thus Hampson suggests that
companies whether work ing
with CDMOs or in house think
through such issues as cost of
goods scale and sustainabil-
ity much earlier than they typi-
cally do today ldquoYou donrsquot need to
spend money on these issues but
you do need to think about themrdquo
Hampson says ldquoQuality must be
a key issue even at Phase II trials
and early action pays off laterrdquo
In addition he suggests that
companies th ink about the
e nt i r e p r o c e s s c o mp r e he n -
sively ldquoThere is often a tendency
to focus on the core processing
stepsrdquo Hampson says ldquoBut you
really need to think about every-
thing from collection of mate-
rial through to administration
of product to the patient and all
steps in betweenrdquo
For ce l l therapies d ispos -
able equipment and closed pro-
cesses can be an effective way to
reduce costs and improve quality
and compliance ldquoThey can allow
you to isolate different processes
so that they can share a Class
100000 cleanroom environmentrdquo
Hampson says
ldquoInvesting in automated informa-
tion management can also pay offrdquo
he says ldquowhere an electronic batch
record system that is fully validated
can enable release-by-exception
reducing error documentation
time and overall quality assurance
costsrdquo Hampson says
In addition he notes it is
important to look at costs compre-
hensively an increase in one cost
can for example reduce overhead
improve process sustainability and
cost of goods Table III outlines the
issues
regulations evolve
Cell therapy is still a new area
for regulators and as Preti says
some guidelines are clear and oth-
ers arenrsquot ldquoDevelopment by design
is needed throughout the pro-
cess but the piece we still struggle
with the most is mode of action
(MOA) and product characteriza-
tion Regulatory agencies under-
stand that it is difficult to pinpoint
MOArdquo
Preti emphasizes the importance
of working with regulators ldquoYou
can be in a position to inform and
influence regulations as products
are developedrdquo he says
For any company moving into
this brave new world top-level ques-
tions are needed Preti says empha-
sizing the following ldquoDo you have
an understanding of scale Can you
scale up from very small Can you
characterize the process and control
it for reliability and qualityrdquo
In the stem cell area in particu-
lar this is crucial Preti said since
the product relies heavily on the
process ldquoManufacturing can be
thought of as patient administra-
tion It cannot be separated in
the same way that it can for tra-
ditional medicinesrdquo For contract
suppliers he adds demonstrated
success will be important and
sponsors should consider whether
a prospective partner will be able
to stay with them for the long run
referenCes 1 P Hourd et al Regulatory Challenges
for the Manufacture and Scale-
Out of Autologous Cell Therapies
Massachusetts General Hospital
(Cambridge MA 2013)
2 S Farid et al Biotechnol Bioeng
111(1) 69-83 (January 2014)
3 R Grant Building Deliverable Cell
Therapeutics A Methodical Approach
to Manufacturing Development
(Webinar Oct 22 2014) bp
source invetech
Justifcation driversChange in cost
doseDevelopment
estimate
Unit Op Ref
Change decription
Comparability risk
Quality COGs Scale Sustainability LaborMaterials outplant
Cost Time
P-2 Process change 1 Medium X X darr $ $$$ TT
P-3 Process change 2 High X X X darr $$$ $$$$ TTT
P-4 Process change 3 Low X X darr $$ $$ TTT
P-2 Process change 4 Low X $$ T
QC-4 In-house QC test None X TT
QA-1Electronic Batch
RecordNone X X X
darr $$$$
TTTT
Table III Process changes timing and comparability risks cogs is cost of goods Qc is quality control
32 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Intellectual Property
Protecting Intellectual Property
in Engagements with CMOs
Important IP contractual provisions should be included when working with CMOs
Jennifer L CoLLins
Biotechnology and pharmaceutical companies
often engage contract CMOs to assist with
the development of their drugs This type
of arrangement naturally involves the devel-
opment of intellectual property (IP) so it is
important for both the CMO and the sponsor to iden-
tify pre-existing intellectual property and also define
how rights to new IP will be allocated protected and
enforced by and between the companies
If the arrangement with the CMO is a traditional fee-
for-service arrangement where the company pays the
CMO service fees to perform development work on its
behalf then generally all new IP (other than improve-
ments to the CMOrsquos manufacturing technology) will be
owned by the biotechnology or pharmaceutical com-
pany that engaged the CMO On the other hand if the
arrangement between the CMO and the biotechnology
or pharmaceutical company is more of a collaborative
arrangement where both parties share the costs of devel-
opment as well as any profits from the commercializa-
tion then IP concerns become much more complicated
In that case in addition to describing which party will
Jennifer L CoLLins is a technology and licensing attorney with Morningstar Law Group jcollinsmorningstarlawgroupcom
Fa
na
tic S
tud
ioG
ett
y Im
ag
es
wwwbiopharminternationalcom June 2015 BioPharm International eBook 33
Outsourcing Resources Intellectual Property
own the new IP the contract should
sort out which party will be respon-
sible for obtaining and maintaining
patents on the new IP controlling
litigation against infringers and
defending the IP against challenges
In addition the parties should agree
upfront on how the IP may be used
by each party following various ter-
mination events so that the parties
are not left fighting about such mat-
ters at a time when they may not be
inclined to agree to anything
In both arrangements without
specific contractual provisions to
define and protect the new IP a
biotechnology company or phar-
maceutical company that uses a
CMO for development is at risk of
losing control of and possibly own-
ership of important improvements
to its drugs This article discusses
IP contractual provisions that
should be included in each type of
arrangement
Fee-For-service
development work
Traditionally CMOs perform fee-for-
service development work where
a biotechnology or pharmaceutical
company engages the CMO to per-
form this work for a fixed fee In this
type of arrangement the CMO is a
service provider and typically takes
no ownership interest in the drug or
product that is being developed or
in improvements to an existing drug
or product that is being tested or
developed The contract governing
the relationship nevertheless must
be clear about the IP rights that are
owned and licensed by each party
If the contract does not provide
for proper assignments of IP to the
biotechnology or pharmaceutical
company then it is likely that the
CMO will own any improvements
or other inventions that it develops
in the performance of the develop-
ment services even if that is not the
intent of the parties
Without signed written contracts
that state otherwise under United
States patent law the inventor of
a patentable invention or improve-
ment will own the invention or
improvement even if the inventor
is engaged to develop the invention
or the improvement for a customer
or other third party To ensure
that the biotechnology company or
pharmaceutical company obtains
all the patent and other IP rights
in developments inventions and
improvements created in the per-
formance of services by the CMO
the governing contract between the
biotechnology company or phar-
maceutical company and the CMO
must include written present assign-
ments of those IP rights from the
CMO to the company Indeed based
on recent cases it is crucial that the
assignment clause in the contract
be a ldquopresentrdquo assignment mean-
ing that it must state specifically
that the CMO ldquohereby assignshelliprdquo
rather than a clause stating that the
CMO ldquoagrees to assignrdquo rights in the
future Otherwise the contract will
be interpreted as a promise to assign
rights in the future and the bio
pharmaceutical company will have
to go back to the CMO at some later
point in time for a separate writ-
ten assignment of rights to obtain
all patent and other IP rights in the
developments
While it sounds logical and
straightforward that the CMO
would assign all inventions created
in the development work to its cus-
tomer it is not always that simple
in practice What if the CMO devel-
ops an improvement to its manu-
facturing process in the course of
the development work Most CMOs
will want to reserve ownership of
any improvements to the CMOrsquos
existing IP and confidential infor-
mation This position is not unrea-
sonable as long as the customer
ultimately has the rights it needs in
all new inventions including those
owned by the CMO to take the drug
forward through further develop-
ment and commercialization One
must sort out IP allocation by sub-
ject matter To achieve this allo-
cation the development contract
typically will state that each party
retains ownership of all IP that it
owns as of the date of the contract
(all pre-existing intellectual prop-
erty) It will also state that the cus-
tomer owns its proprietary drug
and all improvements to the drug
or the customerrsquos confidential infor-
mation developed by either or both
parties The development contract
also may state more generally that
the customer owns all inventions
improvements and IP rights related
to the customerrsquos drug With respect
to the CMO and its IP the develop-
ment contract may state that the
CMO owns all improvements to the
CMOrsquos manufacturing process and
to its other pre-existing intellectual
property Again this reservation is
not unreasonable The customer
however should determine whether
it requires access to those improve-
ments or inventions to complete the
development and commercialization
of its drug If such access is necessary
the customer should either negotiate
a license (which may be royalty-free
or royalty-based depending on the
circumstances) to use such improve-
ments or inventions to develop and
commercialize the drug or the cus-
tomer should negotiate the terms
under which the CMO will continue
to use the improvements or inven-
tions to perform development work
andor manufacture the drug for the
customer
In the fee-for-service arrange-
ment the assignment and licensing
of IP rights in new inventions and
improvements is the key intellectual
property issue Intellectual property
considerations become much more
complicated when the biotechnol-
34 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Intellectual Property
ogy or pharmaceutical company
partners with a CMO in the devel-
opment of a new drug or product
where the parties share development
costs and profits from commercial-
ization of the drug or product
cmo as collaborator
Although not as common as the
fee-for-service arrangement a CMO
may partner with a biotechnology
or pharmaceutical company in the
development and commercialization
of a drug or product Generally both
parties are bringing pre-existing IP
to the collaboration such as a drug
from a biopharmaceutical com-
pany and proprietary drug delivery
technology from the CMO In this
scenario the CMO is taking a long-
term interest and often a part-own-
ership interest in the success of the
drug product
Instead of getting paid an hourly
rate or fixed fee for development
work on the drug product the CMO
may share the cost of development
work with the biotechnology or
pharmaceutical partner in exchange
for a share of the profits when the
drug or product is commercialized
Other costs involved in the develop-
ment and commercialization of the
drug or product that may be shared
include the cost of patent prosecu-
tion and the cost of patent litigation
if the drug product is challenged or
if it is misappropriated or infringed
To secure its interest in the profits
from commercialization of the drug
product the CMO may want to take
an ownership interest in the intel-
lectual property rights in the drug
product All of these issues must be
carefully addressed in the develop-
ment contract to avoid both finan-
cial and IP disputes
As with the fee-for-serv ice
arrangement the parties must
allocate ownership of intellectual
property rights pertaining to the
drug product to be commercialized
These rights include both pre-exist-
ing IP rights and new inventions
and improvements developed in
the course of the development con-
tract As with the fee-for-service
arrangement the parties typically
will retain rights to their respec-
tive pre-existing IP Intellectual
property rights to new inventions
and improvements however may
be shared by giving each party a
co-ownership interest in the intel-
lectual property Alternatively such
rights may be allocated by inventor-
ship with each party taking owner-
ship of developments that it invents
and with the parties jointly own-
ing jointly developed inventions
As another alternative the IP rights
may be allocated by subject matter
as in the fee-for-service arrangement
with each party owning improve-
ments and inventions related to its
pre-existing IP regardless of which
party invents those improvements
and inventions
Depending on how the pat-
ent applications are drafted the
IP rights may be ldquosliced and dicedrdquo
more finely One party for example
could own patent rights for a drug
product for one indication while the
other party owns patent rights for
the same drug product for another
indication Decisions about how
to allocate the IP rights should be
made in consultation with intel-
lectual property counsel and must
take into account the manner in
which the drug will be commercial-
ized If one party for example is
to commercialize the product in
North America and Europe and
the other party is to commercialize
the product in the rest of the world
then either the patent ownership
should be allocated by territory or
the development contract should
include exclusive cross-licenses of
each partyrsquos rights in all the intel-
lectual property necessary to com-
mercialize the product with the first
party having an exclusive license to
commercialize the product in North
America and Europe and the second
party having an exclusive license to
commercialize the product in the
rest of the world
If the parties are going to share
ownership of the IP related to the
drug product then the develop-
ment contract also should specify
which party is responsible for pros-
ecuting and maintaining patents
on the drug product Regardless of
which party is responsible for patent
prosecution and maintenance the
other party should be consulted and
involved in key decisions regard-
ing patent prosecution and main-
tenance Unless there are multiple
patents for different indications that
will be commercialized exclusively
by one party and unless each party
has exclusive rights to commercial-
ize the drug product in particular
geographic areas it generally makes
sense for one party to take the pri-
mary responsibility for patent pros-
ecution and maintenance globally
with the other party consulting and
sharing in the cost of the prosecu-
tion and maintenance in accordance
with the profit sharing The party
that is not responsible for prosecu-
tion and maintenance should have
a contractual right to approve patent
counsel and review and approve pat-
ent filings office action responses
and other communications with
patent registries before they are filed
or submitted so that the parties
agree on the proper prosecution and
maintenance strategy
Likewise the development con-
tract should allocate the rights and
responsibilities for asserting and
defending the patents pertaining to
the product in litigation Often these
rights and responsibilities are allo-
cated by territory according to com-
mercialization rights If one party
for example has the exclusive right
to commercialize the drug product
wwwbiopharminternationalcom June 2015 BioPharm International eBook 35
Outsourcing Resources Intellectual Property
in the US then that party would
have the first right and responsibil-
ity to assert the patents on the drug
product against potential infringers
and defend the patents on the drug
product against infringement claims
in the US Likewise if one party has
the exclusive right to commercial-
ize the drug product for a particular
indication then that party would
have the first right and responsibility
to assert or defend the patents per-
taining to the product with respect
to that indication Both scenarios
can present challenges First some
courts will not recognize an exclu-
sive licensee as having standing to
assert a patent That court might
only allow the owner of the patent
(and not the exclusive licensee) to
bring a lawsuit asserting the patent
It is crucial therefore that contrac-
tual provisions relating to patent liti-
gation require the party that owns
the patent to cooperate in any litiga-
tion and to join the suit as a party if
necessary
Another potential problem is that
any litigation that asserts the pat-
ent is likely to draw a counterclaim
that the patent is invalid thus put-
ting the patent itself at risk of invali-
dation While one party might be
threatened by a potential infringer
in a particular market or for a partic-
ular indication and therefore might
want to assert the patent against the
potential infringer the other party
might not want to put the patent at
risk as to other markets and other
indications For these reasons the
contractual provisions pertaining
to patent litigation must be care-
fully drafted in consultation with
intellectual property counsel who
understands standing issues and
the potential areas for dispute The
contractual provisions also should
include dispute resolution provi-
sions for situations when the parties
do not agree on whether a patent
should be asserted
Finally while the parties may
want and expect their relationship
to continue for the full term of the
patents and the development con-
tract the parties must carefully
consider the IP ramifications of an
early termination of the develop-
ment contract and the relationship
particularly if the development con-
tract is terminated for breach If the
parties are sharing in the ownership
commercialization and profits gen-
erated by the drug product devel-
oped by the collaboration then
all of that must be unwound upon
termination The development
contract should be as specific as
possible with respect to the effect of
various types of termination on the
intellectual property and contin-
ued commercialization of the drug
product In particular the parties
may agree that if the development
contract is terminated due to breach
by one party then that breaching
party must relinquish and transfer
all of its rights with respect to the
drug product to the other party to
allow the non-breaching party to
continue the commercialization of
the drug product post-termination
Whether the necessary rights are
assigned or licensed whether the
terminated party should receive a
royalty for the transfer or license of
those rights and what if any pre-
existing IP is licensed to enable the
non-breaching party to continue
commercializing the drug product
are all key factors for negotiation
The development contract should
also address other types of termi-
nation such as termination for
insolvency and termination with-
out cause (ie if one party decides
it no longer wants to commercial-
ize the drug product) In each case
the effect of termination on the IP
rights should be carefully analyzed
and a competent IP counsel should
carefully draft post-termination
assignments and licenses
conclusion
While IP lawyers are not equipped
with crystal balls they can be
extremely helpful in analyzing par-
ticular development commercializa-
tion and post-termination scenarios
all of which affect IP in a drug devel-
opment arrangement Contractual
provisions related to IP must be
carefully drafted to align with the
strategic business objectives of any
relationship and particularly one
whose purpose is the development
and commercialization of intellec-
tual property Without a clear con-
tract each collaborator is at risk of
losing important rights bp
Ad Index
AJINOMOTO ALTHEA 21
AVID BIOSERVICES INC 15
CYTOVANCE BIOLOGICS 27
EMERGENT BIOSOLUTIONS 13
EUROFINS LANCASTER LABORATORIES 7
SAFC BIOSCIENCES SIGMA ALDRICH 17
THERMO FISHER SCIENTIFIC 23
TOSOH BIOSCIENCE 11
WATERS CORP 3
Company Page
![Page 4: OUOURT NG I C RESOURCESfiles.pharmtech.com/alfresco_images/pharma/2019/03/08/... · 2019-07-22 · VIDEO INTERVIEW Biologics Development and Manufacturing Trends: Part I ... Media](https://reader034.vdocuments.us/reader034/viewer/2022050113/5f4aca886c0d6724390eb040/html5/thumbnails/4.jpg)
4 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Quality Risk Management
QRM Tools for
Contract Biomanufacturing
Quality-risk-management tools can assist biopharma companies in mitigating risks when outsourcing crucial elements
of the drug-development process
BIKASH CHATTERJEE
Well-defined well-executed risk man-
agement is a central component of
any clinical strategy and there are
many steps in the drug-development
lifecycle where risk management
brings value For decision making and overall program
risk reduction a quality-risk-management (QRM) pro-
gram is an effective means for biotech companies to
mitigate the risks associated with outsourcing crucial
elements of the drug-development lifecycle Risks only
get larger when activities typically performed inter-
nally during the development process are outsourced
to a contract service provider
The role of contract service providers has grown
over the past decade as the industry has worked to
shrink time-to-market by outsourcing major pieces
of the drug-development lifecycle Today because of
this heightened responsibility for a programrsquos success
organizations tend to rely on contract service provid-
ers as partners
Selecting an outsourcing partner is more complex
than simply comparing factors like on-time-in-full
BIKASH CHATTERJEE is president and CSO of Pharmatech Associates
Mic
ha
el H
Ge
ttyim
ag
es
wwwbiopharminternationalcom June 2015 BioPharm International eBook 5
Outsourcing Resources Quality Risk Management
(OTIF) delivery performance right-
the-first-time (RTF) cycle-time etc
The complexity of the global sup-
ply chain and global compliance
warrants some form of structured
evaluation tool QRM provides this
framework
Production risks are not lim-
ited to time-to-market concerns
Emerging biotherapeutics such as
antibody drug conjugates (ADCs)
and chimeric antigen receptorT
cel l technology (CAR-T) pro -
vide the potential for significant
advances in cancer treatment
but also bring with them a new
level of risk in terms of charac-
terization and quality assurance
Integrating QRM as part of the
program management process pro-
vides a mechanism for addressing
these risks and technical uncer-
tainties as the program progresses
QRM can be divided into two
major areas of application risk-
based decision-making and risk
analysis and management
QRM and Risk assessMent
QRM embodies a systematic pro-
cess for the assessment control
communication and review of
risks The core elements of QRM
are defined in the ICH Q9 guide-
line Quality Risk Management (1)
The principles of using risk as
part of a scientific approach to
drug development are captured
across ICH guidances ICH Q5
Quality of Biotechnological Products
(2) and ICH Q8 Pharmaceutical
Development (3) The European
Un ion a nd Ph a r m ac e ut ic a l
Inspec t ion Convent ion a nd
P h a r m a c e ut i c a l I n s p e c t io n
Co-operat ion Scheme (PICS)
have adopted these principles in
Annex 20 of the EU and PICS
GMP guides
Integ rat ing QR M elements
within the product development
process can raise organizational
FIG
UR
ES
CO
UR
TE
SY
OF
TH
E A
UT
HO
R
Figure 1 Product development risk analysis tools impacted by outsourcing (ADME is absorption distribution metabolism and
excretion PARNOR is proven acceptable rangenormal operating range AHP is analytic hierarchy process CDMO is contract
development manufacturing organization FMEA is failure mode and effects analysis RRD is risk ranking and fltering CMO is
contract manufacturing organization NPV is net present value)
Preclinical
De
ve
lop
me
nt
Ph
ase
Bio
log
ic Q
RM
Animal models ADME studies and
toxicology studies
AHP CDMO
selection
Decision-tree molecule selection
Pre-hazard analysis
Process cause-and
-effect analysis
AHP CMO selection
Process FMEA
RRF
Capital risk investment weighted
NVP calculation
Final RRF or FMEA
Intermediate scale up container-closure studies stability studies PARNOR
tech transfer method transfer fnal reference characterization
Final stability studies fll fnish PARNOR fnal control
strategy process performance
qualifcation lots attribute testing strategy
Ou
tso
urc
ing
QR
M
Phase 1 Phase 2 Phase 3
Quality target product profle formulation selection process design master and
working cell banks raw material characterization method development
initial critical quality attributes reference standard characterization
Figure 2 Preclinical analytical hierarchy process (AHP) structure
GOAL
Select the best
CDMO for
preclinical testing
CRITERIA
ALTERNATIVES
Experience with
route of deliverySchedule
Data analysis
capabilityCost
CDMO 3CDMO 2CDMO 1
6 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Quality Risk Management
visibility of program risks based
upon past program development
with long-term benefit For plat-
form products this means cap-
turing universal program risk
to learn from past risk analyses
and mitigation activities Mature
organizations link assessments to
program milestones moving the
context of risk management from
a supportive role to one of deci-
sion making and program man-
agement
QRM pRoduct developMent and outsouRcingThe principles of QRM can be use-
ful in almost every step of drug
development Risk analysis tools
are ideal as aids to evaluate cri-
teria leading to the selection of
a contract service provider One
important advantage of apply-
ing a QRM approach to product
development is the ability to
harness internal expertise from
across the organization and focus
decision-making using a com-
mon perspective The key process
development activities defined in
the Parenteral Drug Associationrsquos
Technical Report 42 (4) are not
the only development activities
and milestones that can leverage
a QRM framework The empha-
sis in biologic drug development
is predominantly on the drug
substance not the drug prod-
uct While both are important
to a successful drug filing drug
product activities often begin at
the fillfinish stage of the process
and are more standardized from a
design and execution perspective
Figure 1 illustrates which risk
analysis tools can assist in execut-
ing an outsourcing strategy in each
phase of product development
Similar risk analysis tools are color
coded and linked to each of the
four major phases of product devel-
opment prior to commercial manu-
facturing
analytic hieRaRchy pRocess The dec ision to outsource a
key program element to a con-
tract service provider may occur
regardless of the stage of product
development Early in the prod-
uctrsquos development in the preclin-
ical phase development activity
emphasis is on assessing the basic
characteristics of the molecule in
animal models Pharmacokinetic
and pha r macody namic mea-
surements and absorptiondis-
tributionmetabolismexcretion
(ADME) studies are typica l ly
conducted in rodent and non-
rodent mammalian animal mod-
els Selection criteria to assess an
appropriate service provider can
include route of delivery capabil-
ity and experience data analysis
capability schedule and budget-
ary considerat ions The r ight
service provider will contribute
to the success of a programrsquos
investigational new drug filing
and impact the overall program
schedule
One effective risk-analysis tool
to address this outsourcing deci-
sion is Analytic hierarchy process
(AHP) AHP allows the evaluation
to translate subjective opinions
or preferences into measurable
numeric relations to make deci-
sions in a rational way AHP uses
pairwise comparison for consis-
tency in the evaluation of each
criterion for each circumstance
Using AHP requires that the alter-
natives be structured as a hierar-
chy as shown in Figure 2
Figure 3 Preliminary hazard analysis
Attribute Key word Deviation Cause EffectCurrent
safeguardscontrolsHazard levels
ProductNumeric
level
Assay HighOutside tolerance
limitsFillfinish error
Possible hypoglycemia
Sampling manufacturing weight check
High Ampoules 3
Assay LowOutside tolerance
limitsFillfinish error
Possible hyperglycemia
Sampling manufacturing weight check
Medium Ampoules 2
Sterility Low Non-sterilePoor aseptic
handlingInfection
Media fills and environmental monitoring
High Ampoules 3
Keyword Defnition
Low Low risk to patient
Medium Potential risk to form fit and function of drug which could do harm to patient
High Significant risk to a patient andor form fit and function of product
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8 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Quality Risk Management
Within the AHP hierarchy it is
important to establish the priori-
ties for each element Priorities
are the numbers associated with
the nodes to represent the rela-
tive weights of the nodes in any
group Similar to probabilities
priorities are absolute numbers
In executing the method criteria
are evaluated against the goal to
establish priority Similarly each
alternative is evaluated against
each criteria With these two ele-
ments complete the priority of
each alternative can be calcu-
lated against the goal to select
the appropriate contract develop-
ment and manufacturing organi-
zation (CDMO)
decision-tRee analysis
As a molecule passes the pre-
clinical development program
typically an organization will
evaluate the information to make
a gono-go decision to move the
program forward A tool that can
be useful in quantifying this
phase-gate decision is a decision
tree analysis a decision support
tool that uses a tree-like graph of
decisions and their possible con-
sequences including chance event
outcomes and resource costs
One area where a decision
tree has been a useful tool is in
biologic companies with a com-
bination-product development
program Some biologics may inte-
grate a device component such as
an auto-injector as opposed to
an IV delivery The advantage of
an auto-injector is that it is por-
table and able to deliver outside
a healthcare setting Quantifying
the organizat ionrsquos abi l ity to
develop and commercially support
a device component is a signifi-
cant program risk consideration
for many biotech companies
Choosing a contract manufacturer
with experience in devices and
drugs may drive down technical
and program risk but could com-
plicate the overall supply chain
With a decision-tree analysis an
organization can quantify the cost
of moving forward with each alter-
native while flagging uncertain-
ties One course of action may be
to address the uncertainties and
drive the likelihood of success to
an acceptable level before proceed-
ing with any program
AHP and decision-tree analy-
sis can be used anywhere in the
drug development process where
in-house manufacturing versus
outsourcing alternatives must be
evaluated
pReliMinaRy hazaRd analysis
In the United States Phase I
activities involve satisfying FDArsquos
latest expec tat ions in terms
of product design and process
under sta nd ing For mulat ion
selection is one of the first mile-
stones in a Phase I program A
pre l iminar y haza rd ana lysi s
(PHA) is typically performed early
in a program to identify known
hazards determine their causes
effects and probability and to
establish initial design and proce-
dural requirements to eliminate
or control them
While PHA can be used as an
early evaluation of any risk situ-
ation one effective application
of PHA is to evaluate the prod-
uct design from a patient safety
perspective as a precursor to pro-
Figure 4 Monoclonal antibody process train cause-and-effect matrix
Critical quality attributes (Risk level)
Preculture and expansion
Fermentation and harvest
CentrifugeCation exchange chromatography
Anion exchange chromatography
Viral filtrationConcentration
and diafiltration
Vial filling
Appearance (M)
Impurities (H)
Protein content (H)
Immunoreactivity (H)
Purity (H)
Bioburden (H)
In-process controls
Fill weight check (M)
Visual Inspection (M L)
Risk Key None Low Med High
wwwbiopharminternationalcom June 2015 BioPharm International eBook 9
Outsourcing Resources Quality Risk Management
cess design The PHA can use a
simple heat map of low medium
and high-severity assessments
An example of a partial PHA is
shown in Figure 3 Any evalu-
ation that results in a hazard
level of medium or high should
be included as part of the control
strategy for the process
pRocess cause-
and-effect MatRix
As the program moves into the
process design and scale up or
technology transfer activities a
cause-and-effects (CampE) analy-
sis is a simple and effective tool
to determine which unit opera-
tions impact the drug productrsquos
final critical quality attributes
(CQAs) These unit operations
could then focus on determin-
ing if there are critical control
parameters (CPPs) that impact
the final productrsquos CQAs If there
are CPPs present a f inal con-
trol strategy should ref lect the
potential risk of straying from
the process design space for that
unit operation An example of a
simple CampE analysis for a sim-
ple monoclonal antibody (mAb)
process train is given in Figure 4
The CampE matrix can assign val-
ues descriptors or in this case
integrate a heat map to commu-
nicate potential risk
failuRe Modes
and effects analysis
Failure modes and effects analy-
sis (FMEA) is a systematic pro-
active method for evaluating a
process to identify where and
how it might fail and to assess
the relat ive impact of d i f fer-
ent failures It is used to iden-
tify the parts of the process that
represent the greatest risk to the
productrsquos performance FMEAs
are one of the most commonly
used risk analysis tools used in
the biopharma industry today
FMEAs are based upon risk rank-
ing tables that provide a com-
mon definition for ranking the
severity of a failure and the like-
lihood of occurrence These are
typically ranked on a scale of 1
to 10 then multiplied together
to give a r isk priority number
(RPN) For FMEAs that do not
intend to address potential fail-
ure modes dur ing the design
activity such as process FMEAs
an additional evaluation cate-
gorymdashProbability of Detectionmdash
is used It is not unusual for an
FMEA to generate a large num-
ber of potential failure modes
FMEAs can be effective as part of
deviation and corrective and pre-
ventive action (CAPA) root cause
investigations as a structured
tool for identifying and demon-
strating a true root cause for a
non-conformance
Risk Ranking and filteRing
Risk ranking and filtering (RRF)
is a common facilitation method
used for risk management and
is also known as relative r isk
ranking risk indexing and risk
matrix and filtering The intent
is to provide sharper focus to the
critical risks within a systemmdash
typically from a large and com-
plex set of risk scenarios RRF
works by breaking down overall
r isk into risk components and
evaluat ing those components
and their individual contribu-
tions to overall risk RRF is most
suited to comparing and manag-
ing a portfolio of complex risks
RRF like all risk-assessment tools
requires agreed-upon sets of risk
factors and evaluation criteria
RRF provides a means to priori-
tize and filter individual risks
by combining the evaluations of
risk components against set cri-
teria into a single risk score
Applying RRF requires identi-
fying the primary risk question
then defining the head topics
and subtopics An example of
a CDMO audit risk assessment
structure is shown in Figure 5
Figure 5 Risk ranking and fltering (RRF) outsourcing example structure
Risk question
Subtopics
Head topics
What should the audit frequency be at the CDMO to ensure GMP compliance
Engineering
Calibration Manufacturing
Labeling
Supplier
Storage
Changecontrol
Batch release
Deviations
Corrective and
preventive actions
Validation
Packaging
QC testing
Maintenance
Operations ComplianceSupplychain
10 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Quality Risk Management
Biologics Development and Manufacturing Trends Part I
Eric Langer Managing Partner BioPlan Associates talks about the results from BioPlan Associatesrsquo 12th Annual Report and Survey of Biopharmaceutical Manufacturing Capacity and Production Trends in downstream processing protein A and single-use technology are discussed in Part I of this discussion For a discussion on productivity trends and biosimilars see Part II of the interview on page 25
With this structure in place
each risk can be assessed against
the probabil ity of occurrence
and severity impact and summa-
rized in a simple heat map
Risk-adjusted
net pResent value
For those decision milestones
that require investment in capi-
tal or resources a risk-adjusted
net present value (rNPV) is a
more acc urate method than
convent iona l N PV a na ly se s
for communicat ing the t r ue
cost of an investment decision
rNPV is sometimes referred to
as expected NPV (eNPV) rNPV
modifies the standard NPV cal-
cu lat ion of d iscounted cash-
f low analysis by mult iply ing
each cash flow by the estimated
probability that it occurs (the
estimated success rate) In the
language of probability theory
the rNPV is the expected value
rNPV is the standard valuation
method in the drug development
industry where sufficient data
exists to estimate success rates
for all RampD phases
conclusion
Biopharmaceutical products and
processes figure among the most
complex drug development life-
cycles within the industry A
structured QRM program that
integ rates s t anda rd i zed r i sk
assessment tools as part of the
overa l l product development
program can highlight the criti-
cal technical compliance and
regulatory risks when consider-
ing an outsourcing service pro-
vider The application of simple
QRM tools will provide structure
to the decision-making and eval-
uation process and when com-
bined with a simple knowledge
management framework provide
a foundation for all future prod-
uct programs Insight into the
risk and mitigation strategies can
reduce a programrsquos risk profile
significantly
RefeRences 1 ICH Q9 Quality Risk Management
(2005)
2 ICH Q5A-Q5E Quality of
Biotechnological Products
3 ICH Q8 Pharmaceutical Development
(2009)
4 Parenteral Drug Associates
Technical Report 42 Process
Validation for Protein Manufacturing
(2005) Bp
wwwtosohbiosciencecom
Tosoh Bioscience and TOYOPEARL are registered trademarks of Tosoh Corporation
Every mAb is unique
Your Protein A should be as well
TOSOH BIOSCIENCE LLC bull Customer service 866-527-3587 bull Technical service 800-366-4875 option 3
TOYOPEARLreg AF-rProtein A HC-650FHigh Capacity Protein A Resin for Monoclonal Antibody Purifi cation
0
10
20
30
40
50
60
70
80
2 35 5
Residence time (minutes)
DBC
for I
gG (g
L)
1 gL
5 gL
10 gLResin TOYOPEARL AF-rProtein A HC-650FColumn size 5 mm ID times 5 cmMobile phase 002 molL sodium phosphate 015 molL NaCl pH 74Residence time 2 35 5 minDetection UV 280 nm (10 breakthrough)Sample human IgG 1 5 10 gL in mobile phase
12 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources CROCMO Viewpoints
Biopharma Advances
Demand Specialized Expertise
Contract service providers share insights on biopharma market developments and the implications of biosimilar drug approvals
The ediTors of Biopharm international
The approval of the first biosimilar in the
United States as well as continuing consolida-
tion in the biopharma and contract develop-
ment and manufacturing markets are just
two indicators of the ongoing evolution of
biopharmaceutical development Representatives of
contract service providers shared observations trends
and projections with BioPharm International
Roundtable participants are Gary Chambers busi-
ness manager biopharma labs Europe SGS Bill
Hartzel director of strategic execution Catalent
Pharma Solutions Chris R Lively PhD director of
biopharmaceutical services PPD Scott Lorimer
VP Global Operations Patheon Biologics Eugene
McNally PhD executive director PPD Consulting
Rekha Patel global director large molecules devel-
opment and analytical solutions Catalent Pharma
Solutions and Mark Rogers vice-president SGS
Life Science Services USA
RegulatoRy and business tRends
BioPharm What regulatory changes have positively or
negatively impacted biopharmaceutical development
manufacturing processes
Ad
am
Ga
ult
Ge
tty Im
ag
es
info_contractmanufacturingebsicom | 1 800 441 4225 | emergentcontractmanufacturingcom
Aseptic FillFinish
Pre-Clinical Development
BDSManufacture
Clinical amp Commerical
Lyo CycleDevelopment
Emergent BioSolutions has a proven track record as a world-class provider of contract manufacturing services for both bulk drug substances and sterile injectable drug products Our team has successfully launched 20 commercial products and developedmanufactured over 200 clinical candidates for our clients
Emerging Capability
State-of-the art flexible single-use facility enables turnkey upstream and downstream solutions for clinical and commercial scale biopharmaceutical drug development
Emergent Contract Manufacturing
Enhancing Life in Every Single Dose
14 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources CROCMO Viewpoints
McNally (PPD Consulting) FDA
establ ished a new Off ice of
Pharmaceutical Quality in 2014
which we anticipate will have major
impacts on the biopharmaceuti-
cal development and manufactur-
ing process This reorganization
was designed to enhance quality
drug assessment by realigning sev-
eral elements of the preapproval
and surveillance inspection pro-
cess Integrating risk-based review
GMP inspection implementation
of quality by design and the new
FDA process validation guidance
within one office is expected to
significantly change the biophar-
maceutical development and manu-
facturing process
H a r t z e l ( C a t a l e n t P h a r m a
Solutions) In todayrsquos market there
are significant manufacturing
challenges in traditional glass vial
filling applications These chal-
lenges manifest in quality issues
with the final container closure
and may be related to microbial
contamination glass particulates
and foreign materials that lead to
necessary market action causing
supply issues
Lorimer (Patheon Biologics) The
greatest regulatory change in recent
times is the acceptance and approval
of biosimilars
BioPharm What business trends
have posit ively or negatively
impacted biopharmaceutical devel-
opmentmanufacturing processes
H a r t z e l ( C a t a l e n t P h a r m a
Solutions) Today there is a stronger
emphasis in the development life-
cycle on the delivery of the mol-
ecule to the patient and not just
the molecule itself Deliverydevice
experts are being added to teams
at Phase II to improve the delivery
beyond the traditional vial
Lively (PPD) Growing interest
in biopharmaceutical drug devel-
opment necessitates partnering
between clients and contractors to
increase industry capacity breadth
of capabilities expertise and
the experience required to bring
these drugs to market The client
will receive the most benefit by
selecting a high-quality contract
research organization (CRO) lab
that is able to meet its needs and
work collaboratively with the cli-
ent to ensure timely development
Lorimer (Patheon Biologics) The
trend of small biotech partner-
ing with large pharma for clinical
manufacturing and development
has certainly facilitated the full
development of more novel mol-
ecules Also the increasing trend
toward outsourcing of GMP biolog-
ics manufacturing ensures biopro-
cessing and testing is performed
by expert manufacturers with
proven track records in quality and
biomanufacturing This helps to
reduce the risk to clinical programs
and product safety
technicalscientific tRendsBioPharm Can you describe pro-
ductivity improvements your com-
pany has experienced from new
technologies
Patel (Catalent Pharma Solutions)
Catalent Pharma Solutions has sig-
nificant ongoing investments in
enhancing our large-molecule ana-
lytical capabilities and productiv-
ity to meet and advance current
industry needs Recent invest-
ments include the updatednew
technologies new assay strategies
and updated electronic systems
and processes
Lively (PPD) Evolving character-
ization expectations for biologics
have driven improvements in ana-
lytical equipment processes and
systems Ultra performance liquid
chromatography (UPLC) systems
have improved resolution and sen-
sitivity while reducing run times
In addition 2D high-performance
liquid chromatography (HPLC)
high-resolution mass spectrom-
etry (MS) allows for analysis of
samples incompatible with tradi-
tional MS Reporter gene bioassays
apply genetically engineered cell
lines both to directly model mech-
anisms of action and to amplify
assays for improved performance
with shorter incubations and
increased signalnoise relative to
standard bioassays
Lorimer (Patheon Biologics) The
main productivity improvement
has been increasing the through-
put of products in Patheonrsquos mul-
tiproduct biopharmaceutical GMP
facilities Single-use disposable
bioreactors and similar single-use
bioprocess equipment minimize
plant downtime which is tradi-
tionally required for line clearance
and product changeover The com-
plexity of product changeovers is
reduced by single-use technology
which decreases the need for clean-
in-place steam-in-place and qual-
ity control testing Typically line
Approval of the first
biosimilar in the
United States as well
as consolidation in
the biopharma and
contract development
and manufacturing
markets are just
two indicators of the
ongoing evolution of
biopharmaceutical
development
YOUR PARTNER FROM CONCEPT TO COMMERCIAL
1
42
5
3CELL LINE DEVELOPMENT
bull Cell line development amp selection
bull Cell line characterization amp optimization
bull Subcloning
bull Suspension adaptation
PROCESS DEVELOPMENT
bull Upstream development amp optimization
bull Media optimization feeding strategyamp design including DoE approach
bull Downstream development ampoptimization
bull Process optimizationprocess scale-up
bull Viral inactivationremoval study design
bull Formulation development amp screening
bull Up to 100L controlled bioreactors
bull Process validation
ANALYTICAL METHODS DEVELOPMENT
bull Development feasibility optimizationtransfer qualification amp validation of methods
bull Identity purity potency safety ampcharacterization
cGMP BIOMANUFACTURING
bull Commercially-licensed facility
bull Flexible manufacturing capabilities
bull Stainless steel amp single-use systemsfrom 100L-1000L
bull FDA EU amp ANVISA inspected
QUALITY AND REGULATORY SERVICES
bull Regulatory strategy amp submissions
bull cGMP CMC Section 7 support
bull In-process amp release testing
bull Stability testing
bull Reference standard generation
For more information please visit us at wwwavidbiocom or
e-mail businessdevelopmentavidbiocom
THE AVID
ADVANTAGE
16 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources CROCMO Viewpoints
clearance time is reduced by sev-
eral days
R o g e r s ( S G S L i f e S c i e n c e
Services) As an analytical ser-
vice provider SGS is constantly
in search of means to improve
its laboratory efficiencies partic-
ularly those that enhance turn-
around time without adversely
effecting quality With this in
mind substitution of HPLC for
UPLC rapid microbiolog ica l
screening methods and invest-
ment in automated approaches to
complex analytical problems such
as protein sequencing are now
being used within the SGS labora-
tory network
Chambers (SGS) From a CRO
point of view the main produc-
tivity improvements in analytics
have been from higher through-
put systems and data analysis The
move to these faster systems with
semiautomated data processing has
allowed us to improve turnaround
times which are passed on to cli-
ents in terms who win on faster
to market times and faster gono
decisions
BioPharm What additional tech-
nology improvements are needed
to improve the efficiency of bio-
processing
Lorimer (Patheon Biologics)
Process analytical technology
(PAT) for continuous monitoring of
bioprocesses is helping reduce the
variability on biopharmaceutical
manufacturing
Also biopharmaceutical devel-
opment and process validation
have been accelerated by the use
of mini-bioreactor systems which
enable a large amount of process
development data to be gener-
ated within a very short timeline
These multi-bioreactor systems
can reduce process develop -
ment timelines by months when
applied to early-stage or late-stage
bioprocesses
Rogers (SGS Life Science Services)
The development of many tech-
nologies follows a common path
from academia to commercial
application and nowhere is this
more evident than in the field of
bioprocessing In almost all exam-
ples the key to this progression
lies in the ability to simplify opera-
tional aspects of the technology
and improve throughput This has
in the past been clearly demon-
strated in for example the field of
mass spectrometry and is currently
evolving with techniques involved
in biophysical characterization
BioPharm What is the greatest
technical challenge facing biophar-
maceutical companies today
Hartzel (Catalent Pharma Solutions)
Cost to manufacture will continue
to be a major challenge for the
industry especially with the rise
of biosimilars and market pressures
to drive down the cost of medi-
cines However the products that
are coming to market are more
targeted which leads to smaller
batch sizes This is counter to the
manufacturing adage of being able
to leverage economies of scale to
drive out costs hence the need to
focus on alternatives technologies
and innovation to reduce the man-
ufacturing costs versus economies
of scale
Lively (PPD) Application of ana-
lytical techniques to better char-
acterize innovator and biosimilar
or follow-on products by physico-
chemical and functional methods
are required and will continue to
be driven by the complexity of
biologics development For exam-
ple changes in formulations may
cause different leachable profiles
requiring increasing emphasis on
extractablesleachables techniques
(ie high-resolution MS) to sup-
port characterization of formu-
lation effects identification of
degradation and impurities and
determination of their potential
impact through application of
potency bioassays
Lorimer (Patheon Biologics) Most
of the technical challenges for
manufacturing have been over-
come and the technologies for
development and manufactur-
ing have been widely adopted
Perhaps the greatest challenge is in
clinical development of novel and
originator molecules where in-vitro
model systems are still not a great
predictor of clinical performance
Rogers (SGS Life Science Services)
To highlight one technical chal-
lenge above all others in todayrsquos
biopharmaceutical industry is
very difficult The complexity of
biotherapeutics often results in
considerable technical difficul-
ties as for example in the area
of impurities recognition of host-
cell proteins (HCPs) and identi-
fication of structural variants at
trace levels are certainly high on
the list of technical concerns The
necessary inclusion of relatively
elaborate analytical techniques
such as sedimentation velocity
analytical ultracentrifugation (SVndash
AUC) within a traditional qual-
ity control release environment is
also not without problems
BioPharm What are the pros-
pects for continuous manufac-
turing to be firmly established in
bioprocessing What are the road-
blocks to implementation
Lorimer (Patheon Biologics)
Continuous product ion f rom
mammalian cell cultures has been
operated in perfusion bioreactors
for many years The main road-
block for continuous processing is
downstream processing of proteins
which currently demands discrete
and distinct unit operations for
removal of impurities removal
of contaminants concentration
of the products and formulation
each in separate controlled steps
Introducing a next generation chemically-defined CHO fed-batch media platform from SAFC Developed across a range of widely used industrial CHO cell lines this newest portfolio media delivers exceptional titers and economic efficiencies Adaptation is simple Celebrate performance and accelerate your bio-development process
Celebrate Request your complimentary sample at sigma-aldrichcomCHOperformance
Cat Nos 14366C 24366C 24367C 24368C
EX-CELLreg ADVANCEDtrade CHO FED-BATCH SYSTEM
CELL CULTUREPERFORMANCE
copy2015 Sigma-Aldrich Co LLC All rights reserved Sigma-Aldrich SAFC and EX-CELL are trademarks of Sigma-Aldrich Co LLC registered in the US and other countries
NEXT GENERATION MEDIA PLATFORM
18 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources CROCMO Viewpoints
and which are not currently ame-
nable to continuous processing
the Rise of biosimilaRs
BioPharm What impact w i l l
biosimilar drugs have on bio-
pharma businesses bioprocessing
approaches and the contract ser-
vices market
Rogers (SGS Life Science Services)
The European biopharma land-
scape has already experienced
impact of the biosimilar drug mar-
ket leading to rapid expansion of
traditional small molecule generic
manufactures into the bio arena
Recent FDA approval of the Sandoz
biosimilar Zarixo may be the seed
for similar changes in the US pro-
viding a potential new line of busi-
ness for established pharmaceutical
companies Contract service pro-
viders such as SGS who already
have considerable experience with
biosimilars are able to offer exper-
tise to businesses new to this mar-
ket and will no doubt benefit from
such expansion in the US
Lively (PPD) Increased invest-
ment in biosimilars is driving
interest in improving and stream-
lining the development processes
as well as the sensitivity and scope
of characterization assays used to
compare biosimilars and innova-
tor drugs The expanding capac-
ity needs result in partnerships
between clients and their contrac-
tors with the systems experience
and expertise to achieve the qual-
ity and speed required while meet-
ing all regulatory expectations for
product approval
Chambers (SGS) With nearly
20 years exper ience perform-
ing biosimilar analysis the big-
gest impact had been the massive
increase in the characterization
needed for biosimilars compared
to innovators (although higher
standards are now needed for new
innovators too) This has resulted
CMOs Add Capabilities
Consolidation in the contract development and manufacturing market has resulted in new capabilities and facility expansions
In May 2015 CMC Biologics announced that it is expanding its Copenhagen Denmark facility to increase its manufacturing capacity through the installation of six 2000-L bioreactors The bioreactors can be run singly or in groups simultaneously or sequentially and are part of the companyrsquos signature Bioreactor 6Pack single-use program The Copenhagen installation will begin initial GMP production in November 2015 and will feature three bioreactors to start Three bioreactors will be added at a later date to complete the configuration Meanwhile the Bioreactor 6Pack at CMCrsquos Seattle facility will complete its first GMP run in mid-2015 and will be ready for commercial launch by the end of the year Through its recent expansions CMC plans to expand its global capacity by more than 30000 liters in the United States and Europe
Also in May 2015 SAFC announced an expansion to its St Louis MO facility to support the commercial-scale production of antibody-drug conjugates The facility which is expected to be online and operational in the third quarter of 2015 was designed to meet SafeBridge category 4 compound handling requirements for highly active or cytotoxic compounds The expansion of an existing Carlsbad CA location will enable SAFC to offer fillfinish capabilities of viral products to its clients in the gene therapy viral vaccine and immunotherapy sectors
Rentschler announced in March 2015 that a 2000-L bioreactor that the company commissioned and built in six months is up and running The bioreactor will be integrated into existing manufacturing suites containing two 1000-L single-use bioreactors according to a company statement The companyrsquos twin bioreactor systemmdashdesigned for running two main bioreactors in parallel with one shared downstream processing unitmdashwill be functional by 2017 The twin system is estimated to double the companyrsquos production capacities for cell culture-derived proteins
In December 2014 FUJIFILM Diosynth Biotechnologies USA (FDBU) acquired Kalon Biotherapeutics adding viral and cell-culture vaccine expertise and capabilities In other activity FDBU started construction of a three-story 62000-ft2 facility in Research Triangle Park NC in January 2015 to house the companyrsquos process and analytical research and development process sciences and stability groups The expected completion date is Q4 2015
In September 2014 PCI a provider of packaging services acquired Biotec Services International a provider of clinical-trial services and temperature-controlled pharmaceutical services headquartered in Bridgend Wales UK The addition expanded PCIrsquos presence in the European Union and added packaging storage and distribution capacity and consultative services for clinical-trial supplies In January 2015 Biotec announced the validation of its clinical supply facility expansion which added almost 50 to the companyrsquos clinical trial materials handling capacity
wwwbiopharminternationalcom June 2015 BioPharm International eBook 19
Outsourcing Resources CROCMO Viewpoints
in challenges in data handling
interpretation and data presenta-
tion Biosimilars have also caused
the re-emergence of orthogonal
techniques like size exclusion
chromatographyndashmulti-angle laser
light scattering (SEC-MALL) and
SV-AUC for aggregation and cir-
cular dichroism (CD) and fourier
transform infrared spectroscopy
(FTIR) for higher-order structure
as critical analyses to understand
and compare and detect subtle
higher-order structural differences
between innovator and biosimilar
samples
Hartzel (Catalent Pharma Solutions)
The rise of biosimilar drugs will
dawn the next generation of bio-
logic manufacturing and force
the industry to look at new ways
of manufacturing to drive down
costs Therefore the industry will
seek new manufacturing partners
with strong technical expertise to
drive out costs through innovation
and operational excellence
Lorimer (Patheon Biologics)
Genera l ly b ios imi la r d r ugs
will encourage competitiveness
within the biopharma sector
Biomanufacturers expect increased
pressure on cost of goods and
pricing Biopharmaceutical con-
tract service providers with a flex-
ible multi-product operation and
proven track record in the indus-
try are well placed to ensure care-
ful control of manufacturing costs
and product quality Processing
approaches wonrsquot change in terms
of technology but there will be a
greater emphasis on operational
excellence to reduce costly inef-
ficiencies and improve yields from
bioprocesses As more biosimilars
come to the forefront and as the
industry trend for outsourcing
continues increasing operational
flexibility while maintaining the
highest quality standards will be
the keys to success
business challenges
BioPharm What is the greatest
business challenge facing biophar-
maceutical companies today
Lively (PPD) As with all phar-
maceutical drug development the
greatest challenge is getting new
life-changing and potentially life-
saving drug candidates to mar-
ket Biopharmaceuticals face more
challenges than traditional small-
molecule drug products because
the science of characterization
of such biologic drugs is rapidly
evolving along with the regulatory
landscape Those companies that
are best able to successfully char-
acterize and differentiate innovator
and biosimilar products for safety
and efficacy will have the greatest
opportunity to benefit
the knowledge gap
BioPharm In what areas do you
see knowledge or expertise gaps in
current biopharmaceutical compa-
nies Why do these gaps exist
Lorimer (Patheon Biologics) There
is a gap in translating good sci-
ence to industrial applications of
technologies that provide for reli-
able efficient cost effective man-
ufacturing at commercial scale
Maintaining a focus during early
development on eventual commer-
cial manufacturing requirements
while balancing limited develop-
ment resources requires a broad
base of coordinated organiza-
tional skillsets and a disciplined
approach
Hartzel (Catalent Pharma Solutions)
Devicedelivery expertise is an
area that has a potential gap For
biologics the historic default con-
tainer closure has been a tradi-
tional glass vial As the healthcare
industry seeks ways to improve
patient care and reduce costs the
delivery to the patient needs to
adopt new technologies and this
is why we have seen a rise of pre-
filled syringes and autoinjectors
These technologies will continue
to evolve and so will the demand
for devicedelivery experts
Lively (PPD) One of the chal-
lenges we see is the various levels
of knowledge and expertise that
exist between biopharmaceutical
RampD and the testing and regula-
tory industries That differential is
impacting those industriesrsquo ability
to fully consider and effectively
implement expectations and guid-
ance for physicochemical and
functional characterization expec-
tations of biologic drugs
Lorimer (Patheon Biologics) The
commercial biopharmaceutical
industry demands global sourc-
ing of materials services supply
and ultimately distribution to each
patient This requires a robust inte-
grated supply chain to deliver high
value products to patients on-time
and at the right quality Doing this
reliably and efficiently with long
production lead times and uncer-
tain market sales forecasts is an
industry wide challenge
Speed-to-market remains a key
challenge to the development of
biopharmaceuticals Speedy first-
time-in-man clinical trials can be
a major hurdle for small biotech
companies and large pharma alike
Rogers (SGS Life Science Services)
I believe there continues to be a
significant problem in the level of
fundamental scientific expertise
within many biopharmaceutical
businesses In part this may be
attributed to the lsquokitrsquo and lsquoblack
boxrsquo approach of many modern
day technologies Due to the
complexity of many biopharma-
ceuticals their development and
success as therapeutics requires a
comprehensive range of scientific
disciplines and expertise which
can be difficult to fully realize
internally particularly for small
and mid-size companies bp
20 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources FillFinish
FillFinish Trends
Automation and disposables continue to reduce human error
Eric s LangEr
Fillfinish operations continue to be domi-
nated by trends in automation and the adop-
tion of single-use equipment But these are
by no means the only factors affecting these
high-value operations according to BioPlan
Associatesrsquo latest biomanufacturing study (1) Fill
finish processes are among the most outsourced
activities in biomanufacturing today and a service
providerrsquos capacity for vialing pre-filled devices
and lyophilization is crucial In a recently pub-
lished whitepaper (2) BioPlan Associates determined
that there is sufficient global in-house capacity
for biologics but the need continues to grow for
greater access to specialized outsourcing competence
Whatrsquos trending is significant improvements in auto-
mation and operations
AutomAtion And single use defining Cmo strAtegy
The top trends today involve automation and devel-
opment of better disposable technologies As part of
the BioPlan study biomanufacturers were asked to
select the trends they believe to be the most impor-
tant in fill and finish today The top three trends
are single-use equipment automation in full isolator
units and facilities becoming multi-product ori-
ented (see Figure 1)
Other important trends were noted including
bull Increased serialization and product labeling for
anti-counterfeiting
Eric s LangEr is president and managing partner at BioPlan Associates Inc elangerbioplanassociatescom tel 3019215979 wwwbioplanassociatescom
Ma
ria T
ou
tou
da
ki
Ge
tty Im
ag
es
WITH ALTHEA YOU HAVE THE POWER TO MAKE
You have the power to make a difference To make new therapeutics that improve quality of life and inspire a healthier world To do this you need a manufacturing partner who embraces your every challenge as its own who shares your unwavering tenacity and dedication from clinical studies through commercial success Thats The Power To Make
PLAY VIDEO
CONTRACT
MANUFACTURING
Q Development
Drug Substance
lj Drug Product
(D Al TH EA I THE POWER TO MAK A MEMBER OF THE AJINOMOTO GROUP
22 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources FillFinish
bull More f i l l f i n i sh fac i l i t ie s
o p e r a t i n g i n d e v e lo p i n g
regions
bull C o m p u t e r - b a s e d v i s u a l
i n s p e c t i o n a r t i f i c i a l
intelligence
bull Use of complex administration
systems
single-use equipment in fillfinish operAtionsT h e a d o p t i o n o f d i s p o s -
ab le e qu ipme nt i n f i l l f i n -
i s h o p e r a t i o n s e l i m i n a t e s
cross-contamination risks and
adds flexibility in process scale
While regulatory rest r ic t ions
may be increased by the adop-
tion of such equipment single-
use appl icat ions a lso enable
contract manufactur ing orga-
nizat ions (CMOs) to increase
fac i l i t y ut i l i z at ion t h rough
multi-product strategies which
can decrease their cost of goods
Experts in the f ield discussed
these trends
Peter Pekos CEO and president
of Dalton Pharma Services a fill
finish CMO says ldquoFor a CMO
disposables can be attractive hellip
For example a disposable isola-
tor can be packed and stored pre-
sterilized for use when needed
a f ixed isolator requires f ixed
space at all times Disposables
also allow a CMO to handle proj-
ects using specific systems for
non-typical project needs such
as disposable isolators without
going to the expense of buying
permanent isolator infrastruc-
ture Disposables do not obviate
the need for technical expertise
hellip so the need for a CMO isnrsquot
really reduced In fact CMOs
with expertise in single-use sys-
tems hellip can make them more
attractiverdquo
Mar t ina Fe r neman cor po -
rate development manager at
Recipharm bel ieves that the
adoption of single-usedispos-
able equipment is now impacting
f i l l and f inish ldquoIn mult ipur-
pose sites the cleaning proce-
dures will become more crucial
to avoid cross contamination
Single-use equipment [also] has
the advantage of shorter lead
t imes and lower procurement
costs Since no cleaning proce-
dure has to be established and
aseptic connections are easier to
be built-up the use of single-
use equipment is not only faster
but also safer than conventional
equipmentrdquo
AutomAtion in full isolAtor unitsW hi le s ing le -use equ ipment
adoption may be one of the hot-
test f i l lf inish trend automa-
tion technologies may actually
be experiencing more rapid rates
of implementation among bio-
manufacturers Indeed sepa-
rate results from BioPlanrsquos 12th
annual study suggest that the
industry wi l l be as l ikely to
implement automation technolo-
gies as they will use single-use
f i l l-f inish devices dur ing the
next 24 months
The removal of human factors
is a key to improving product
quality Isolators and automa-
tion are therefore key drivers
as facilities seek to improve their
i n f r a s t r u c t u r e I n nov a t io n
around equipment and facilities
able to handle multiple products
is going to continue Flexibility
is key as the reduced flexibility
of isolators (and higher cost) in
relation to traditional restricted
access barrier (RAB) systems may
deter some CMOs from adopt-
ing isolators The jury is st i l l
out because the decision fac-
tors between RAB and isolators
are complex and this tends to be
a high-cost decision often left
to the larger f illf inish CMOs
ldquoCMOs will adopt isolator tech-
nologies in their processes to
meet industry needs and reduce
r isk In some cases this wil l
also include disposable isolators
which can offer the benefits of
fixed isolators but add a degree
of f lexibil ity to the manufac-
turerrdquo Pekos notes
According to Ferneman adopt-
ing automat ion in ful l isola-
tor units to reduce the need for
operators is a trend seen in the
CMO market ldquoUse of barr ier
technology (RABS or isolators)
should ensure optimal protec-
t ion of ster i le areas Isolators
bear a better potential to prevent
biocontamination Since the iso-
lator is a closed system a lower
air quality than in RABS systems
can be usedrdquo For freeze-dried
products the RABS system is a
better choice because loading
has to be performed in class AB
surrounding
Fig
ur
e 1
is
co
ur
te
sy
oF
th
e a
ut
ho
r
Figure 1 selected bioprocessing fllfnish trends in 2015
Single-usedisposable equipment
adoption55
36
35Facilities becoming more multi-
product-use oriented
Automation in full isolator units
reduce need for operators
More compounds More accuratelyFaster than ever
Quantitation transformed
Todayrsquos range of possible therapeutic agents from small molecules to peptides to antibodies and
ADCrsquos makes quantitative bioanalysis a challenge Quantify potential therapeutics faster and more
accurately with our new portfolio of LC-MS instruments sample prep solutions and software HRAM
solutions using Thermo Scienti ctrade Orbitraptrade MS enables selectivity for complex molecules while
triple quadrupole MS delivers SRM sensitivity and speed to detect targeted compounds more quickly
Meet todayrsquos challenges with us and together wersquoll transform quantitative bioanalysis
Thermo Scienti ctrade Orbitrap Fusiontrade MSUnprecedented depth of analysis and
throughput for biological discovery
Thermo Scienti ctrade TSQ Quantivatrade MSLeading SRM sensitivity and speed
in a triple quadrupole MSMS
Thermo Scienti ctrade Q Exactivetrade MSScreen and quantify known and unknown targets with HRAM Orbitrap technology
copy 2
014
Ther
mo
Fish
er S
cien
tifi c
Inc
All
right
s re
serv
ed A
ll tr
adem
arks
are
th
e pr
oper
ty o
f The
rmo
Fish
er S
cien
tifi c
and
its
subs
idia
ries
bull Discover more at thermoscienti ccomquan-transformed
24 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources FillFinish
Cmos stAying
AheAd of the Curve
In the whitepaper on in-house
fillfinish operations for recom-
binant therapeutics (2) BioPlan
found relatively low average in-
house capacity utilization rates
for lyophilization (55) pre-filled
devices (58) and vialing (70)
This finding suggests that for fill
finish CMOs the real value isnrsquot
necessarily in providing additional
flexible capacity but rather in posi-
tioning themselves as providing
highly sophisticated and novel
technologies and expertise in fill
finish services Indeed CMOs are
expected to have state-of-the-art
equipment As Pekos notes ldquoCMOs
who implement flexible and inno-
vative technologies to make man-
ufacturing or development more
efficient faster compliant or more
economical all serve to make them
more attractive to customersrdquo
For CMOs that make use of
innovative fillfinish technologies
there appears to be a good deal
of demand Results from BioPlanrsquos
annual studies indicate that fill
finish services are among the most
widely and heavily outsourced
biomanufacturing activities today
and are also among the activities
that biomanufacturers are most
likely to outsource at significantly
higher levels in the future
Biomanufacturers and CMOs are
actively looking to their fillfin-
ish equipment suppliers and are
beginning to demand additional
new technologies innovation and
product development In 2014 for
example when the top areas that
biomanufacturers wanted their
suppliers to focus their develop-
ment efforts on were measured
fillfinish services topped the list
cited by 23 of biomanufacturers
Not only did that figure represent
a substantial increase from years
past (13 in 2011) but it was also
ahead of other services including
upstream and downstream process
development services
Fillfinish will continue
to be an area of
growth for CMOs
There are a number of areas in
which suppliers can add value to
fillfinish innovation according
to industry experts Jim Agalloco
president of Agalloco amp Associates
in Belle Mead NJ says ldquovendors of
equipment and components to fill
finish must continue their roles as
technology leaders Innovation in
this market has always been sup-
plier driven because the operating
firms do not have the necessary
expertise Collaboration between
equipment manufacturers and
component suppliers is essential
for implementation of new con-
tainer systems single-use dispos-
ables and other advancesrdquo
Ronald Malone senior principal
scientist at Novartis Vaccines says
ldquoBlow-fill-seal containerclosure
systems are beneficial for small-
volume parenterals However over-
all cost may still be higher per unit
than traditional vialstopper fill-
ing Vaccines and biologicals can
benefit from single-dose disposable
systems that drive down the cost
of the containerclosure system
This will assist the global supply to
developing world countries where
these products are truly neededrdquo
W B W i e d e r s e i m o f
PharmaBioSource in Wayne PA
states ldquoWe see smaller higher
technical facilities inclusive of dis-
posables (isolators and not RABS)
and advanced aseptic work cell
technology as the wave of the
futurerdquo
WhAt does the future hold
BioPlanrsquos survey data and indus-
try interviews indicate that fill
f inish will continue to be an
area of growth for CMOs that
maintain the required technical
quality and regulatory expertise
in this segment Experts have
taken note of CMOsrsquo introduc-
tion of smaller filling machines
for syringes or vials a trend that
may be in response to the indus-
try-wide move towards smaller-
scale manufactur ing projects
This shift may be accelerated by
the advent of biosimilars which
should provide an increasing
number of projects for fillfin-
ish CMOs although likely on a
smaller scale This increase in
projects could lead to potential
mergers and acquisitions with
some experts noting that fillfin-
ish CMOs are already engaging
in this trend toward larger capac-
ity and global operations
Indeed within the past 18
months a number of acquisi-
tions have occurred including
Pfizerrsquos acquisitions of Hospira
a nd In noPha r ma Pat heonrsquos
mergers in the contract services
space IDT Biolog ika invest-
ments Vet ter invest ing USD
$100 million to upgrade fill-fin-
ish facilities in the United States
a nd Ger ma ny a nd Ba xte r rsquos
investment in German facilities
and numerous others (3)
For CMOs to stay ahead of the
curve they will likely need to
continue to adopt disposables
technologies and advance their
automation in full isolators Ray
Cardin of PharMax Consulting
says ldquoIncreased use of dispos-
able pre-sterilized f illing tech-
nologies [are future trends] The
combination of these pre-ster-
ilized units with the coming of
age of ster i le connectors that
provide high sterility assurance
wwwbiopharminternationalcom June 2015 BioPharm International eBook 25
Outsourcing Resources FillFinish
Biologics Development and Manufacturing Trends Part II
Eric Langer Managing Partner BioPlan Associates talks about the results from BioPlan AssociatesOtilde 12th Annual Report and Survey of Biopharmaceutical Manufacturing Capacity and Production Langer discusses what respondents indicated as the number one trend in biologics manufacturing improving efficiencies and the biosimilars market
in less clean environments is
changing the way aseptic pro-
cesses are designedrdquo
Gordon Leichter PhD Eastern
r e g io n a l s a l e s m a n a ge r a t
Belimed in Charleston SC states
ldquoAutomat ion in fu l l i solators
wil l el iminate operator inter-
vention and laser-sealed vials
Automation will become more
integral to building automation
and enterprise systemsrdquo
Douglas Stockdale vice-presi-
dent CMCTechnical Operations
Hi l lhurst Biopharmaceut ica ls
Los Angeles CA says ldquoIndustry
will continue pushing the PAT
[process analytical technology]
envelope to f ind a lternat ive
methods to improve in-process
methodologies and processesrdquo
Fe r ne ma n add s ldquoCu r r e nt
trends in fillfinish innovation
will probably focus the market
authorization holders on a few
strategic products resulting in
outsourcing of a bigger share of
products overallrdquo
ConClusion
Until recently the handling of
ster i le l iquids in the pharma-
ceutical industry has relied on
relatively consistent techniques
during the past 100 years with
relatively slow changes in tech-
nologies and regulations result-
ing in incremental improvements
in safety efficiency and prod-
uct quality During the past 20
years however costly biologics
have taken a prominent indus-
try role The value of these drugs
can often be measured in tens of
thousands per dose This has put
greater pressure on these down-
stream fillfinish operations to
ensure quality safety and cost-
efficiency are not compromised
at this crucial late stage in manu-
facturing Trends in fillfinish for
recombinant therapeutics include
the increased use of isolator
technologies more high-speed
operations and other innovative
approaches including single-use
processing As a result of industry
research BioPlan expects more
outsourcing of fillfinish opera-
tions in coming years
referenCes 1 BioPlan Associates 12th Annual
Report and Survey of Biopharmaceutical
Manufacturing Capacity and Production
(Rockville MD April 2015) www
bioplanassociatescom
2 BioPlan Associates Trends in Aseptic
Bioprocessing Capacity for the Fill and
Finish of Recombinant Biologics An
Analysis of US and European In-house
Capacity and Capacity Utilization (BioPlan
Associates December 2014)
3 Information derived from BioPlan
Associatesrsquo BioFacilities Newsletters Bp
26 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Cell Therapy
Taking a ldquoDevelopment-by-Designrdquo
Approach to Cell Therapies
Whether outsourcing or developing cell therapies in-house success demands a focus on quality cost of goods
and sustainability from the start
Agnes shAnley
Cell therapies both autologous and allo-
geneic have come a long way in just a
few years Countries around the world
most recently Japan have passed regula-
tions designed to speed development of
these treatments which are now a big and growing
global business
In 2013 according to the Pharmaceutical Research
and Manufacturers Association 69 cell therapies six
of them autologous or patient-specific treatments
were in clinical trials or being reviewed in the United
States alone 15 of them in Phase III trials (1)
The road is littered with failures however often
in clinical stages This has been traced to problems
with manufacturing and failure to understand pro-
cess requirements earlier in the development process
Table I outlines manufacturing issues
As a growing number of Big Pharma companies
explore the potential for immune regenerative and
other cell therapies equipment manufacturers includ-
Agnes shAnley is senior editor of BioPharm International
SC
IEP
RO
GE
tt
y Im
aG
ES
wwwcytovancecomResponsive Reliable Resourceful
Your partner in biopharmaceutical contract manufacturing of therapeutic proteins and antibodies from mammalian cell culture and microbial fermentation
28 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Cell Therapy
ing Pall Corp EMD Millipore
and GE Biosystems have set up
centers of excellence to focus on
developing equipment for this
new market Engineering compa-
nies such as Invetech and Instrom
are developing equipment specific
to this niche
More CDMos are entering
Cell therapy Market niChe
Demand for spec ia l i zed ce l l
t he rapy ma nu fac t u r ing a nd
development serv ices is a lso
growing and has attracted Lonza
Bioservices Cognate BioServices
WuXi AppTech and Roslin Cells
among others
NeoStem is fol low ing t wo
paths pursuing its own cel l
therapy pipel ine and explor-
ing contract services through
its contract development and
manufac t u r ing organ i zat ion
(CDMO) subsidiary Progenitor
Cell Therapy (PCT) With bases
in Irvine and Mountain View CA
and Allendale NJ PCT is cur-
rently working with Intrexon and
Fibrocell on connective tissue
treatments and with the United
K ingdomrsquos Adapt immune on
oncology treatments
A new CEO David Mazzo with
a doctorate in analytical chemis-
try and experience running both
private and public international
biopharma companies assumed
NeoStemrsquos leadership in January
He sees no conflict between grow-
ing a pipeline and a contract man-
ufacturing business
ldquoWe are not trying to be two
di f ferent companies and we
do not see the two competing
with each otherrdquo says Mazzo
in an interview with BioPharm
Inte rnat ionalrsquos s i ster publ ica-
tion Pharmaceutical Technology
during his second week on the
job ldquoInstead there is a symbi-
otic relationship between themrdquo
As he sees it the companyrsquos
track record in developing prod-
ucts should attract more spon-
sors ldquoProblems in development
usually occur at the interfaces
Our unique experience of having
lsquodone that beforersquo should be help-
fulrdquo he says
In January PCT entered a
partnership with Invetech an
equipment design firm based in
Australia with offices in San Diego
to develop automated equipment
for cell therapy manufacturing Fig
ur
e 1
is
co
ur
te
sy
oF
in
ve
te
ch
Figure 1 Part of an automated solution being developed by neostem and invetech Automating processes is key to reducing costs
wwwbiopharminternationalcom June 2015 BioPharm International eBook 29
Outsourcing Resources Cell Therapy
The two companies have already
been working together for a year
now honing the design and speci-
fications for the instrumentation
says NeoStemrsquos Chief Scientific
Officer (CSO) Robert Preti The
equipment will tackle cell therapyrsquos
most challenging side autologous
treatments where the manufactur-
ing lot is the patient dose adminis-
tered at the patientrsquos bedside
As Preti notes there really isnrsquot
much available today in the way
of automated equipment for cell
therapy especially on the autolo-
gous side The equipment will sep-
arate and wash cells among other
functions
labor-intensive
proCesses aDD Cost
So far Preti says the company
is evaluating the evolving equip-
ment in NeoStemrsquos own manu-
facturing efforts ldquoOne of the
largest commercial bottlenecks
is the heavy labor required by
processes especially for patient-
specific uses where one batch is
one patientrdquo
The cost of goods i s ver y
high Preti says ldquoSuccess long-
term will require a whole new
approach to development The
goal is to provide high qual-
ity and sustainabilityrdquo he says
Removing manual operat ions
and human error from the pro-
cess will be crucial
Invetech has been work ing
on cell therapy process scale-up
automation for more than 10
years and has successfully com-
pleted projects in North America
Europe and Asia for companies
that include Argos Therapeutics
Aa s t rom CCR M Hu mac y te
Innovacell Janssen kSep Systems
MolMed Organovo and ViaCyte
accord ing to R ichard Grant
global VP of the companyrsquos bio-
pharma operations who has been
with the company for more than
14 years
ldquoThe goal is to develop a mix
of equipment and manufactur-
ing st rateg ies that maximize
quality scalability and sustain-
ability with an eye toward cost-
effect iveness and commercial
viabilityrdquo Grant says Invetechrsquos
solutions typically tailor a mix of
OEM and customized equipment
to the clientrsquos processes The com-
pany recently commercialized
equipment used to manufacture
Janssenrsquos macular degeneration
treatment
Costs of current manufactur-
ing processes for both autologous
and allogeneic therapies are dif-
ficult to peg Last year experts
at University College London
attempted to pinpoint the cost and
overall economics of allogeneic
cell therapy using single-use tech-
nologies (2)
What is clear for both alloge-
neic and autologous systems is
that cell therapy development
Table I Manufacturing scenarios for cell therapies
Attributes Off-the-shelf therapiesPatient-specifc
therapies
Source material Always allogeneic Autologous or matched allogeneic
Batch size Many patients One patient
Business model Similar to pharmabiopharma New
Scaling Scale up (Increased lot size) Scale out (Increased number of lots)
Comparability vs scale Higher concern Lower concern
Manufacturing design drivers
Mission critical success + +++
Optimized process yield +++ +
Dimensional efficiency ++ +-
Integration +- ++
Automation + ++
source invetech
Table II Measuring comparability risk
Risk level Example Timing
None Automated sterility test Before biologics license application
Low Change in process unit op and cell journey is the same
Before 50 accrual in pivotal trials
Medium Change in process unit op and cell journey is similar
Before initiation of pivotal clinical trials
High Change in process unit op and the cell journey is matched
Some Phase II clinical data
source invetech
30 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Cell Therapy
and manufacturing costs are cur-
rently prohibitive ldquoThe starting
points can vary dramaticallyrdquo
Grant says He recalls one cus-
tomer whose autologous process
ran to $80000 per patient in early
stage clinical trials Automation
he says could reduce costs by
40ndash90 depending on the ther-
apy involved
DevelopMent by Design
But before one can automate any
process one must understand it
NeoStem and PCT like a growing
number of companies are taking
the principle of quality by design
(QbD) to heart in their work
Mazzo arguably one of few
life-science company CEOs to
even articulate the QbD concept
explains that the company has
gone a step further and broadened
the International Conference on
Harmonization guidances adopted
by FDA into ldquodevelopment by
designrdquo (DbD)
ldquoWe say first consider the end-
point then take process as is and
understand its unit operations
Develop inputs and outputs and
discrete steps and define the pro-
cess in a way that promotes under-
standingrdquo he says
ldquoThis is challenging given prod-
uct complexity but there is a need
to understand the mechanism of
action very well so you put each
process in this overall envelope
of DbD and consider the cost of
goods scalability and sustainabil-
ityrdquo Preti adds ldquoYou consider the
process from the end only this
time each batch is an individual
patientrdquo
The critical part is defining and
measuring process needs he says
ldquoProduct definition is very impor-
tant particularly the quality target
product profilerdquo explains Brian
Hampson VP of manufacturing
development and engineering at
PCT in an Oct 22 2014 webcast
for the International Society for
Cell Therapy (3)
have the enD in MinD
Such t h ings a s for mulat ion
issues dosage potency impu-
rities residuals and microbial
assurance need to be thought out
clearly from the start Hampson
says as well as indications for
use geographic market projec-
tions cost-of-goods targets and
IP issues
The profile needs to be a liv-
ing document that changes as the
product takes shape Hampson
says There is a tendency for peo-
ple in the industry to ignore the
product profile until they have
all the answers says Hampson
ldquoInstead it needs to be developed
really early even when you donrsquot
have all or even many of the
answers hellip you can leave them
as blanks and continue to review
add to and updaterdquo
The result is not only a tool for
better understanding the prod-
uct process and mechanism of
action but a communication tool
for stakeholders
When to start DbD for cell ther-
apies ldquoThe temptation is to begin
later in the game when you need
reasonable COGS and you need
to be sure of sustainable manu-
facturingrdquo says Hampson ldquoThe
key thing is comparability and
anticipating its implications early
in the clinical program It needs
to be flexible at the early stagesrdquo
Hampson says ldquoBut as you near
Phase III you need to lock in your
equipment evolves
In the bioreactor area there is great interest in moving from 2-D to 3-D processing to enable the processing of the cell volumes required something that companies such as Israelrsquos Pluristem have been doing for some time
Equipment designer Instrom is partnering with companies including BRTI Life Sciences to focus on 3-D cell matrix technologies developed by Dr John Brekke EMD Millipore has been partnering with PharmaCell BV to use its Mobius bioreactor platform to expand and harvest HepRG cells GE Sciences is also evaluating Wave and other systems and set up a center of excellence in Wales recently
In other equipment areas Pall Corp has been partnering with CMDG LLC on cord blood processing technology Following are some of the equipment manufacturers and systems applied in cell therapy development and manufacturing
bull Beckman Coulter bull Corning Cell Stacks and Cell Cube
bull EMD Millipore bull GE Biosciences
bull Thermo Scientificrsquos Nunc Cell Factories bull Pall Corp
wwwbiopharminternationalcom June 2015 BioPharm International eBook 31
Outsourcing Resources Cell Therapy
processrdquo Table II summarizes issues
and points where changes will be
easier
Thus Hampson suggests that
companies whether work ing
with CDMOs or in house think
through such issues as cost of
goods scale and sustainabil-
ity much earlier than they typi-
cally do today ldquoYou donrsquot need to
spend money on these issues but
you do need to think about themrdquo
Hampson says ldquoQuality must be
a key issue even at Phase II trials
and early action pays off laterrdquo
In addition he suggests that
companies th ink about the
e nt i r e p r o c e s s c o mp r e he n -
sively ldquoThere is often a tendency
to focus on the core processing
stepsrdquo Hampson says ldquoBut you
really need to think about every-
thing from collection of mate-
rial through to administration
of product to the patient and all
steps in betweenrdquo
For ce l l therapies d ispos -
able equipment and closed pro-
cesses can be an effective way to
reduce costs and improve quality
and compliance ldquoThey can allow
you to isolate different processes
so that they can share a Class
100000 cleanroom environmentrdquo
Hampson says
ldquoInvesting in automated informa-
tion management can also pay offrdquo
he says ldquowhere an electronic batch
record system that is fully validated
can enable release-by-exception
reducing error documentation
time and overall quality assurance
costsrdquo Hampson says
In addition he notes it is
important to look at costs compre-
hensively an increase in one cost
can for example reduce overhead
improve process sustainability and
cost of goods Table III outlines the
issues
regulations evolve
Cell therapy is still a new area
for regulators and as Preti says
some guidelines are clear and oth-
ers arenrsquot ldquoDevelopment by design
is needed throughout the pro-
cess but the piece we still struggle
with the most is mode of action
(MOA) and product characteriza-
tion Regulatory agencies under-
stand that it is difficult to pinpoint
MOArdquo
Preti emphasizes the importance
of working with regulators ldquoYou
can be in a position to inform and
influence regulations as products
are developedrdquo he says
For any company moving into
this brave new world top-level ques-
tions are needed Preti says empha-
sizing the following ldquoDo you have
an understanding of scale Can you
scale up from very small Can you
characterize the process and control
it for reliability and qualityrdquo
In the stem cell area in particu-
lar this is crucial Preti said since
the product relies heavily on the
process ldquoManufacturing can be
thought of as patient administra-
tion It cannot be separated in
the same way that it can for tra-
ditional medicinesrdquo For contract
suppliers he adds demonstrated
success will be important and
sponsors should consider whether
a prospective partner will be able
to stay with them for the long run
referenCes 1 P Hourd et al Regulatory Challenges
for the Manufacture and Scale-
Out of Autologous Cell Therapies
Massachusetts General Hospital
(Cambridge MA 2013)
2 S Farid et al Biotechnol Bioeng
111(1) 69-83 (January 2014)
3 R Grant Building Deliverable Cell
Therapeutics A Methodical Approach
to Manufacturing Development
(Webinar Oct 22 2014) bp
source invetech
Justifcation driversChange in cost
doseDevelopment
estimate
Unit Op Ref
Change decription
Comparability risk
Quality COGs Scale Sustainability LaborMaterials outplant
Cost Time
P-2 Process change 1 Medium X X darr $ $$$ TT
P-3 Process change 2 High X X X darr $$$ $$$$ TTT
P-4 Process change 3 Low X X darr $$ $$ TTT
P-2 Process change 4 Low X $$ T
QC-4 In-house QC test None X TT
QA-1Electronic Batch
RecordNone X X X
darr $$$$
TTTT
Table III Process changes timing and comparability risks cogs is cost of goods Qc is quality control
32 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Intellectual Property
Protecting Intellectual Property
in Engagements with CMOs
Important IP contractual provisions should be included when working with CMOs
Jennifer L CoLLins
Biotechnology and pharmaceutical companies
often engage contract CMOs to assist with
the development of their drugs This type
of arrangement naturally involves the devel-
opment of intellectual property (IP) so it is
important for both the CMO and the sponsor to iden-
tify pre-existing intellectual property and also define
how rights to new IP will be allocated protected and
enforced by and between the companies
If the arrangement with the CMO is a traditional fee-
for-service arrangement where the company pays the
CMO service fees to perform development work on its
behalf then generally all new IP (other than improve-
ments to the CMOrsquos manufacturing technology) will be
owned by the biotechnology or pharmaceutical com-
pany that engaged the CMO On the other hand if the
arrangement between the CMO and the biotechnology
or pharmaceutical company is more of a collaborative
arrangement where both parties share the costs of devel-
opment as well as any profits from the commercializa-
tion then IP concerns become much more complicated
In that case in addition to describing which party will
Jennifer L CoLLins is a technology and licensing attorney with Morningstar Law Group jcollinsmorningstarlawgroupcom
Fa
na
tic S
tud
ioG
ett
y Im
ag
es
wwwbiopharminternationalcom June 2015 BioPharm International eBook 33
Outsourcing Resources Intellectual Property
own the new IP the contract should
sort out which party will be respon-
sible for obtaining and maintaining
patents on the new IP controlling
litigation against infringers and
defending the IP against challenges
In addition the parties should agree
upfront on how the IP may be used
by each party following various ter-
mination events so that the parties
are not left fighting about such mat-
ters at a time when they may not be
inclined to agree to anything
In both arrangements without
specific contractual provisions to
define and protect the new IP a
biotechnology company or phar-
maceutical company that uses a
CMO for development is at risk of
losing control of and possibly own-
ership of important improvements
to its drugs This article discusses
IP contractual provisions that
should be included in each type of
arrangement
Fee-For-service
development work
Traditionally CMOs perform fee-for-
service development work where
a biotechnology or pharmaceutical
company engages the CMO to per-
form this work for a fixed fee In this
type of arrangement the CMO is a
service provider and typically takes
no ownership interest in the drug or
product that is being developed or
in improvements to an existing drug
or product that is being tested or
developed The contract governing
the relationship nevertheless must
be clear about the IP rights that are
owned and licensed by each party
If the contract does not provide
for proper assignments of IP to the
biotechnology or pharmaceutical
company then it is likely that the
CMO will own any improvements
or other inventions that it develops
in the performance of the develop-
ment services even if that is not the
intent of the parties
Without signed written contracts
that state otherwise under United
States patent law the inventor of
a patentable invention or improve-
ment will own the invention or
improvement even if the inventor
is engaged to develop the invention
or the improvement for a customer
or other third party To ensure
that the biotechnology company or
pharmaceutical company obtains
all the patent and other IP rights
in developments inventions and
improvements created in the per-
formance of services by the CMO
the governing contract between the
biotechnology company or phar-
maceutical company and the CMO
must include written present assign-
ments of those IP rights from the
CMO to the company Indeed based
on recent cases it is crucial that the
assignment clause in the contract
be a ldquopresentrdquo assignment mean-
ing that it must state specifically
that the CMO ldquohereby assignshelliprdquo
rather than a clause stating that the
CMO ldquoagrees to assignrdquo rights in the
future Otherwise the contract will
be interpreted as a promise to assign
rights in the future and the bio
pharmaceutical company will have
to go back to the CMO at some later
point in time for a separate writ-
ten assignment of rights to obtain
all patent and other IP rights in the
developments
While it sounds logical and
straightforward that the CMO
would assign all inventions created
in the development work to its cus-
tomer it is not always that simple
in practice What if the CMO devel-
ops an improvement to its manu-
facturing process in the course of
the development work Most CMOs
will want to reserve ownership of
any improvements to the CMOrsquos
existing IP and confidential infor-
mation This position is not unrea-
sonable as long as the customer
ultimately has the rights it needs in
all new inventions including those
owned by the CMO to take the drug
forward through further develop-
ment and commercialization One
must sort out IP allocation by sub-
ject matter To achieve this allo-
cation the development contract
typically will state that each party
retains ownership of all IP that it
owns as of the date of the contract
(all pre-existing intellectual prop-
erty) It will also state that the cus-
tomer owns its proprietary drug
and all improvements to the drug
or the customerrsquos confidential infor-
mation developed by either or both
parties The development contract
also may state more generally that
the customer owns all inventions
improvements and IP rights related
to the customerrsquos drug With respect
to the CMO and its IP the develop-
ment contract may state that the
CMO owns all improvements to the
CMOrsquos manufacturing process and
to its other pre-existing intellectual
property Again this reservation is
not unreasonable The customer
however should determine whether
it requires access to those improve-
ments or inventions to complete the
development and commercialization
of its drug If such access is necessary
the customer should either negotiate
a license (which may be royalty-free
or royalty-based depending on the
circumstances) to use such improve-
ments or inventions to develop and
commercialize the drug or the cus-
tomer should negotiate the terms
under which the CMO will continue
to use the improvements or inven-
tions to perform development work
andor manufacture the drug for the
customer
In the fee-for-service arrange-
ment the assignment and licensing
of IP rights in new inventions and
improvements is the key intellectual
property issue Intellectual property
considerations become much more
complicated when the biotechnol-
34 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Intellectual Property
ogy or pharmaceutical company
partners with a CMO in the devel-
opment of a new drug or product
where the parties share development
costs and profits from commercial-
ization of the drug or product
cmo as collaborator
Although not as common as the
fee-for-service arrangement a CMO
may partner with a biotechnology
or pharmaceutical company in the
development and commercialization
of a drug or product Generally both
parties are bringing pre-existing IP
to the collaboration such as a drug
from a biopharmaceutical com-
pany and proprietary drug delivery
technology from the CMO In this
scenario the CMO is taking a long-
term interest and often a part-own-
ership interest in the success of the
drug product
Instead of getting paid an hourly
rate or fixed fee for development
work on the drug product the CMO
may share the cost of development
work with the biotechnology or
pharmaceutical partner in exchange
for a share of the profits when the
drug or product is commercialized
Other costs involved in the develop-
ment and commercialization of the
drug or product that may be shared
include the cost of patent prosecu-
tion and the cost of patent litigation
if the drug product is challenged or
if it is misappropriated or infringed
To secure its interest in the profits
from commercialization of the drug
product the CMO may want to take
an ownership interest in the intel-
lectual property rights in the drug
product All of these issues must be
carefully addressed in the develop-
ment contract to avoid both finan-
cial and IP disputes
As with the fee-for-serv ice
arrangement the parties must
allocate ownership of intellectual
property rights pertaining to the
drug product to be commercialized
These rights include both pre-exist-
ing IP rights and new inventions
and improvements developed in
the course of the development con-
tract As with the fee-for-service
arrangement the parties typically
will retain rights to their respec-
tive pre-existing IP Intellectual
property rights to new inventions
and improvements however may
be shared by giving each party a
co-ownership interest in the intel-
lectual property Alternatively such
rights may be allocated by inventor-
ship with each party taking owner-
ship of developments that it invents
and with the parties jointly own-
ing jointly developed inventions
As another alternative the IP rights
may be allocated by subject matter
as in the fee-for-service arrangement
with each party owning improve-
ments and inventions related to its
pre-existing IP regardless of which
party invents those improvements
and inventions
Depending on how the pat-
ent applications are drafted the
IP rights may be ldquosliced and dicedrdquo
more finely One party for example
could own patent rights for a drug
product for one indication while the
other party owns patent rights for
the same drug product for another
indication Decisions about how
to allocate the IP rights should be
made in consultation with intel-
lectual property counsel and must
take into account the manner in
which the drug will be commercial-
ized If one party for example is
to commercialize the product in
North America and Europe and
the other party is to commercialize
the product in the rest of the world
then either the patent ownership
should be allocated by territory or
the development contract should
include exclusive cross-licenses of
each partyrsquos rights in all the intel-
lectual property necessary to com-
mercialize the product with the first
party having an exclusive license to
commercialize the product in North
America and Europe and the second
party having an exclusive license to
commercialize the product in the
rest of the world
If the parties are going to share
ownership of the IP related to the
drug product then the develop-
ment contract also should specify
which party is responsible for pros-
ecuting and maintaining patents
on the drug product Regardless of
which party is responsible for patent
prosecution and maintenance the
other party should be consulted and
involved in key decisions regard-
ing patent prosecution and main-
tenance Unless there are multiple
patents for different indications that
will be commercialized exclusively
by one party and unless each party
has exclusive rights to commercial-
ize the drug product in particular
geographic areas it generally makes
sense for one party to take the pri-
mary responsibility for patent pros-
ecution and maintenance globally
with the other party consulting and
sharing in the cost of the prosecu-
tion and maintenance in accordance
with the profit sharing The party
that is not responsible for prosecu-
tion and maintenance should have
a contractual right to approve patent
counsel and review and approve pat-
ent filings office action responses
and other communications with
patent registries before they are filed
or submitted so that the parties
agree on the proper prosecution and
maintenance strategy
Likewise the development con-
tract should allocate the rights and
responsibilities for asserting and
defending the patents pertaining to
the product in litigation Often these
rights and responsibilities are allo-
cated by territory according to com-
mercialization rights If one party
for example has the exclusive right
to commercialize the drug product
wwwbiopharminternationalcom June 2015 BioPharm International eBook 35
Outsourcing Resources Intellectual Property
in the US then that party would
have the first right and responsibil-
ity to assert the patents on the drug
product against potential infringers
and defend the patents on the drug
product against infringement claims
in the US Likewise if one party has
the exclusive right to commercial-
ize the drug product for a particular
indication then that party would
have the first right and responsibility
to assert or defend the patents per-
taining to the product with respect
to that indication Both scenarios
can present challenges First some
courts will not recognize an exclu-
sive licensee as having standing to
assert a patent That court might
only allow the owner of the patent
(and not the exclusive licensee) to
bring a lawsuit asserting the patent
It is crucial therefore that contrac-
tual provisions relating to patent liti-
gation require the party that owns
the patent to cooperate in any litiga-
tion and to join the suit as a party if
necessary
Another potential problem is that
any litigation that asserts the pat-
ent is likely to draw a counterclaim
that the patent is invalid thus put-
ting the patent itself at risk of invali-
dation While one party might be
threatened by a potential infringer
in a particular market or for a partic-
ular indication and therefore might
want to assert the patent against the
potential infringer the other party
might not want to put the patent at
risk as to other markets and other
indications For these reasons the
contractual provisions pertaining
to patent litigation must be care-
fully drafted in consultation with
intellectual property counsel who
understands standing issues and
the potential areas for dispute The
contractual provisions also should
include dispute resolution provi-
sions for situations when the parties
do not agree on whether a patent
should be asserted
Finally while the parties may
want and expect their relationship
to continue for the full term of the
patents and the development con-
tract the parties must carefully
consider the IP ramifications of an
early termination of the develop-
ment contract and the relationship
particularly if the development con-
tract is terminated for breach If the
parties are sharing in the ownership
commercialization and profits gen-
erated by the drug product devel-
oped by the collaboration then
all of that must be unwound upon
termination The development
contract should be as specific as
possible with respect to the effect of
various types of termination on the
intellectual property and contin-
ued commercialization of the drug
product In particular the parties
may agree that if the development
contract is terminated due to breach
by one party then that breaching
party must relinquish and transfer
all of its rights with respect to the
drug product to the other party to
allow the non-breaching party to
continue the commercialization of
the drug product post-termination
Whether the necessary rights are
assigned or licensed whether the
terminated party should receive a
royalty for the transfer or license of
those rights and what if any pre-
existing IP is licensed to enable the
non-breaching party to continue
commercializing the drug product
are all key factors for negotiation
The development contract should
also address other types of termi-
nation such as termination for
insolvency and termination with-
out cause (ie if one party decides
it no longer wants to commercial-
ize the drug product) In each case
the effect of termination on the IP
rights should be carefully analyzed
and a competent IP counsel should
carefully draft post-termination
assignments and licenses
conclusion
While IP lawyers are not equipped
with crystal balls they can be
extremely helpful in analyzing par-
ticular development commercializa-
tion and post-termination scenarios
all of which affect IP in a drug devel-
opment arrangement Contractual
provisions related to IP must be
carefully drafted to align with the
strategic business objectives of any
relationship and particularly one
whose purpose is the development
and commercialization of intellec-
tual property Without a clear con-
tract each collaborator is at risk of
losing important rights bp
Ad Index
AJINOMOTO ALTHEA 21
AVID BIOSERVICES INC 15
CYTOVANCE BIOLOGICS 27
EMERGENT BIOSOLUTIONS 13
EUROFINS LANCASTER LABORATORIES 7
SAFC BIOSCIENCES SIGMA ALDRICH 17
THERMO FISHER SCIENTIFIC 23
TOSOH BIOSCIENCE 11
WATERS CORP 3
Company Page
![Page 5: OUOURT NG I C RESOURCESfiles.pharmtech.com/alfresco_images/pharma/2019/03/08/... · 2019-07-22 · VIDEO INTERVIEW Biologics Development and Manufacturing Trends: Part I ... Media](https://reader034.vdocuments.us/reader034/viewer/2022050113/5f4aca886c0d6724390eb040/html5/thumbnails/5.jpg)
wwwbiopharminternationalcom June 2015 BioPharm International eBook 5
Outsourcing Resources Quality Risk Management
(OTIF) delivery performance right-
the-first-time (RTF) cycle-time etc
The complexity of the global sup-
ply chain and global compliance
warrants some form of structured
evaluation tool QRM provides this
framework
Production risks are not lim-
ited to time-to-market concerns
Emerging biotherapeutics such as
antibody drug conjugates (ADCs)
and chimeric antigen receptorT
cel l technology (CAR-T) pro -
vide the potential for significant
advances in cancer treatment
but also bring with them a new
level of risk in terms of charac-
terization and quality assurance
Integrating QRM as part of the
program management process pro-
vides a mechanism for addressing
these risks and technical uncer-
tainties as the program progresses
QRM can be divided into two
major areas of application risk-
based decision-making and risk
analysis and management
QRM and Risk assessMent
QRM embodies a systematic pro-
cess for the assessment control
communication and review of
risks The core elements of QRM
are defined in the ICH Q9 guide-
line Quality Risk Management (1)
The principles of using risk as
part of a scientific approach to
drug development are captured
across ICH guidances ICH Q5
Quality of Biotechnological Products
(2) and ICH Q8 Pharmaceutical
Development (3) The European
Un ion a nd Ph a r m ac e ut ic a l
Inspec t ion Convent ion a nd
P h a r m a c e ut i c a l I n s p e c t io n
Co-operat ion Scheme (PICS)
have adopted these principles in
Annex 20 of the EU and PICS
GMP guides
Integ rat ing QR M elements
within the product development
process can raise organizational
FIG
UR
ES
CO
UR
TE
SY
OF
TH
E A
UT
HO
R
Figure 1 Product development risk analysis tools impacted by outsourcing (ADME is absorption distribution metabolism and
excretion PARNOR is proven acceptable rangenormal operating range AHP is analytic hierarchy process CDMO is contract
development manufacturing organization FMEA is failure mode and effects analysis RRD is risk ranking and fltering CMO is
contract manufacturing organization NPV is net present value)
Preclinical
De
ve
lop
me
nt
Ph
ase
Bio
log
ic Q
RM
Animal models ADME studies and
toxicology studies
AHP CDMO
selection
Decision-tree molecule selection
Pre-hazard analysis
Process cause-and
-effect analysis
AHP CMO selection
Process FMEA
RRF
Capital risk investment weighted
NVP calculation
Final RRF or FMEA
Intermediate scale up container-closure studies stability studies PARNOR
tech transfer method transfer fnal reference characterization
Final stability studies fll fnish PARNOR fnal control
strategy process performance
qualifcation lots attribute testing strategy
Ou
tso
urc
ing
QR
M
Phase 1 Phase 2 Phase 3
Quality target product profle formulation selection process design master and
working cell banks raw material characterization method development
initial critical quality attributes reference standard characterization
Figure 2 Preclinical analytical hierarchy process (AHP) structure
GOAL
Select the best
CDMO for
preclinical testing
CRITERIA
ALTERNATIVES
Experience with
route of deliverySchedule
Data analysis
capabilityCost
CDMO 3CDMO 2CDMO 1
6 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Quality Risk Management
visibility of program risks based
upon past program development
with long-term benefit For plat-
form products this means cap-
turing universal program risk
to learn from past risk analyses
and mitigation activities Mature
organizations link assessments to
program milestones moving the
context of risk management from
a supportive role to one of deci-
sion making and program man-
agement
QRM pRoduct developMent and outsouRcingThe principles of QRM can be use-
ful in almost every step of drug
development Risk analysis tools
are ideal as aids to evaluate cri-
teria leading to the selection of
a contract service provider One
important advantage of apply-
ing a QRM approach to product
development is the ability to
harness internal expertise from
across the organization and focus
decision-making using a com-
mon perspective The key process
development activities defined in
the Parenteral Drug Associationrsquos
Technical Report 42 (4) are not
the only development activities
and milestones that can leverage
a QRM framework The empha-
sis in biologic drug development
is predominantly on the drug
substance not the drug prod-
uct While both are important
to a successful drug filing drug
product activities often begin at
the fillfinish stage of the process
and are more standardized from a
design and execution perspective
Figure 1 illustrates which risk
analysis tools can assist in execut-
ing an outsourcing strategy in each
phase of product development
Similar risk analysis tools are color
coded and linked to each of the
four major phases of product devel-
opment prior to commercial manu-
facturing
analytic hieRaRchy pRocess The dec ision to outsource a
key program element to a con-
tract service provider may occur
regardless of the stage of product
development Early in the prod-
uctrsquos development in the preclin-
ical phase development activity
emphasis is on assessing the basic
characteristics of the molecule in
animal models Pharmacokinetic
and pha r macody namic mea-
surements and absorptiondis-
tributionmetabolismexcretion
(ADME) studies are typica l ly
conducted in rodent and non-
rodent mammalian animal mod-
els Selection criteria to assess an
appropriate service provider can
include route of delivery capabil-
ity and experience data analysis
capability schedule and budget-
ary considerat ions The r ight
service provider will contribute
to the success of a programrsquos
investigational new drug filing
and impact the overall program
schedule
One effective risk-analysis tool
to address this outsourcing deci-
sion is Analytic hierarchy process
(AHP) AHP allows the evaluation
to translate subjective opinions
or preferences into measurable
numeric relations to make deci-
sions in a rational way AHP uses
pairwise comparison for consis-
tency in the evaluation of each
criterion for each circumstance
Using AHP requires that the alter-
natives be structured as a hierar-
chy as shown in Figure 2
Figure 3 Preliminary hazard analysis
Attribute Key word Deviation Cause EffectCurrent
safeguardscontrolsHazard levels
ProductNumeric
level
Assay HighOutside tolerance
limitsFillfinish error
Possible hypoglycemia
Sampling manufacturing weight check
High Ampoules 3
Assay LowOutside tolerance
limitsFillfinish error
Possible hyperglycemia
Sampling manufacturing weight check
Medium Ampoules 2
Sterility Low Non-sterilePoor aseptic
handlingInfection
Media fills and environmental monitoring
High Ampoules 3
Keyword Defnition
Low Low risk to patient
Medium Potential risk to form fit and function of drug which could do harm to patient
High Significant risk to a patient andor form fit and function of product
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8 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Quality Risk Management
Within the AHP hierarchy it is
important to establish the priori-
ties for each element Priorities
are the numbers associated with
the nodes to represent the rela-
tive weights of the nodes in any
group Similar to probabilities
priorities are absolute numbers
In executing the method criteria
are evaluated against the goal to
establish priority Similarly each
alternative is evaluated against
each criteria With these two ele-
ments complete the priority of
each alternative can be calcu-
lated against the goal to select
the appropriate contract develop-
ment and manufacturing organi-
zation (CDMO)
decision-tRee analysis
As a molecule passes the pre-
clinical development program
typically an organization will
evaluate the information to make
a gono-go decision to move the
program forward A tool that can
be useful in quantifying this
phase-gate decision is a decision
tree analysis a decision support
tool that uses a tree-like graph of
decisions and their possible con-
sequences including chance event
outcomes and resource costs
One area where a decision
tree has been a useful tool is in
biologic companies with a com-
bination-product development
program Some biologics may inte-
grate a device component such as
an auto-injector as opposed to
an IV delivery The advantage of
an auto-injector is that it is por-
table and able to deliver outside
a healthcare setting Quantifying
the organizat ionrsquos abi l ity to
develop and commercially support
a device component is a signifi-
cant program risk consideration
for many biotech companies
Choosing a contract manufacturer
with experience in devices and
drugs may drive down technical
and program risk but could com-
plicate the overall supply chain
With a decision-tree analysis an
organization can quantify the cost
of moving forward with each alter-
native while flagging uncertain-
ties One course of action may be
to address the uncertainties and
drive the likelihood of success to
an acceptable level before proceed-
ing with any program
AHP and decision-tree analy-
sis can be used anywhere in the
drug development process where
in-house manufacturing versus
outsourcing alternatives must be
evaluated
pReliMinaRy hazaRd analysis
In the United States Phase I
activities involve satisfying FDArsquos
latest expec tat ions in terms
of product design and process
under sta nd ing For mulat ion
selection is one of the first mile-
stones in a Phase I program A
pre l iminar y haza rd ana lysi s
(PHA) is typically performed early
in a program to identify known
hazards determine their causes
effects and probability and to
establish initial design and proce-
dural requirements to eliminate
or control them
While PHA can be used as an
early evaluation of any risk situ-
ation one effective application
of PHA is to evaluate the prod-
uct design from a patient safety
perspective as a precursor to pro-
Figure 4 Monoclonal antibody process train cause-and-effect matrix
Critical quality attributes (Risk level)
Preculture and expansion
Fermentation and harvest
CentrifugeCation exchange chromatography
Anion exchange chromatography
Viral filtrationConcentration
and diafiltration
Vial filling
Appearance (M)
Impurities (H)
Protein content (H)
Immunoreactivity (H)
Purity (H)
Bioburden (H)
In-process controls
Fill weight check (M)
Visual Inspection (M L)
Risk Key None Low Med High
wwwbiopharminternationalcom June 2015 BioPharm International eBook 9
Outsourcing Resources Quality Risk Management
cess design The PHA can use a
simple heat map of low medium
and high-severity assessments
An example of a partial PHA is
shown in Figure 3 Any evalu-
ation that results in a hazard
level of medium or high should
be included as part of the control
strategy for the process
pRocess cause-
and-effect MatRix
As the program moves into the
process design and scale up or
technology transfer activities a
cause-and-effects (CampE) analy-
sis is a simple and effective tool
to determine which unit opera-
tions impact the drug productrsquos
final critical quality attributes
(CQAs) These unit operations
could then focus on determin-
ing if there are critical control
parameters (CPPs) that impact
the final productrsquos CQAs If there
are CPPs present a f inal con-
trol strategy should ref lect the
potential risk of straying from
the process design space for that
unit operation An example of a
simple CampE analysis for a sim-
ple monoclonal antibody (mAb)
process train is given in Figure 4
The CampE matrix can assign val-
ues descriptors or in this case
integrate a heat map to commu-
nicate potential risk
failuRe Modes
and effects analysis
Failure modes and effects analy-
sis (FMEA) is a systematic pro-
active method for evaluating a
process to identify where and
how it might fail and to assess
the relat ive impact of d i f fer-
ent failures It is used to iden-
tify the parts of the process that
represent the greatest risk to the
productrsquos performance FMEAs
are one of the most commonly
used risk analysis tools used in
the biopharma industry today
FMEAs are based upon risk rank-
ing tables that provide a com-
mon definition for ranking the
severity of a failure and the like-
lihood of occurrence These are
typically ranked on a scale of 1
to 10 then multiplied together
to give a r isk priority number
(RPN) For FMEAs that do not
intend to address potential fail-
ure modes dur ing the design
activity such as process FMEAs
an additional evaluation cate-
gorymdashProbability of Detectionmdash
is used It is not unusual for an
FMEA to generate a large num-
ber of potential failure modes
FMEAs can be effective as part of
deviation and corrective and pre-
ventive action (CAPA) root cause
investigations as a structured
tool for identifying and demon-
strating a true root cause for a
non-conformance
Risk Ranking and filteRing
Risk ranking and filtering (RRF)
is a common facilitation method
used for risk management and
is also known as relative r isk
ranking risk indexing and risk
matrix and filtering The intent
is to provide sharper focus to the
critical risks within a systemmdash
typically from a large and com-
plex set of risk scenarios RRF
works by breaking down overall
r isk into risk components and
evaluat ing those components
and their individual contribu-
tions to overall risk RRF is most
suited to comparing and manag-
ing a portfolio of complex risks
RRF like all risk-assessment tools
requires agreed-upon sets of risk
factors and evaluation criteria
RRF provides a means to priori-
tize and filter individual risks
by combining the evaluations of
risk components against set cri-
teria into a single risk score
Applying RRF requires identi-
fying the primary risk question
then defining the head topics
and subtopics An example of
a CDMO audit risk assessment
structure is shown in Figure 5
Figure 5 Risk ranking and fltering (RRF) outsourcing example structure
Risk question
Subtopics
Head topics
What should the audit frequency be at the CDMO to ensure GMP compliance
Engineering
Calibration Manufacturing
Labeling
Supplier
Storage
Changecontrol
Batch release
Deviations
Corrective and
preventive actions
Validation
Packaging
QC testing
Maintenance
Operations ComplianceSupplychain
10 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Quality Risk Management
Biologics Development and Manufacturing Trends Part I
Eric Langer Managing Partner BioPlan Associates talks about the results from BioPlan Associatesrsquo 12th Annual Report and Survey of Biopharmaceutical Manufacturing Capacity and Production Trends in downstream processing protein A and single-use technology are discussed in Part I of this discussion For a discussion on productivity trends and biosimilars see Part II of the interview on page 25
With this structure in place
each risk can be assessed against
the probabil ity of occurrence
and severity impact and summa-
rized in a simple heat map
Risk-adjusted
net pResent value
For those decision milestones
that require investment in capi-
tal or resources a risk-adjusted
net present value (rNPV) is a
more acc urate method than
convent iona l N PV a na ly se s
for communicat ing the t r ue
cost of an investment decision
rNPV is sometimes referred to
as expected NPV (eNPV) rNPV
modifies the standard NPV cal-
cu lat ion of d iscounted cash-
f low analysis by mult iply ing
each cash flow by the estimated
probability that it occurs (the
estimated success rate) In the
language of probability theory
the rNPV is the expected value
rNPV is the standard valuation
method in the drug development
industry where sufficient data
exists to estimate success rates
for all RampD phases
conclusion
Biopharmaceutical products and
processes figure among the most
complex drug development life-
cycles within the industry A
structured QRM program that
integ rates s t anda rd i zed r i sk
assessment tools as part of the
overa l l product development
program can highlight the criti-
cal technical compliance and
regulatory risks when consider-
ing an outsourcing service pro-
vider The application of simple
QRM tools will provide structure
to the decision-making and eval-
uation process and when com-
bined with a simple knowledge
management framework provide
a foundation for all future prod-
uct programs Insight into the
risk and mitigation strategies can
reduce a programrsquos risk profile
significantly
RefeRences 1 ICH Q9 Quality Risk Management
(2005)
2 ICH Q5A-Q5E Quality of
Biotechnological Products
3 ICH Q8 Pharmaceutical Development
(2009)
4 Parenteral Drug Associates
Technical Report 42 Process
Validation for Protein Manufacturing
(2005) Bp
wwwtosohbiosciencecom
Tosoh Bioscience and TOYOPEARL are registered trademarks of Tosoh Corporation
Every mAb is unique
Your Protein A should be as well
TOSOH BIOSCIENCE LLC bull Customer service 866-527-3587 bull Technical service 800-366-4875 option 3
TOYOPEARLreg AF-rProtein A HC-650FHigh Capacity Protein A Resin for Monoclonal Antibody Purifi cation
0
10
20
30
40
50
60
70
80
2 35 5
Residence time (minutes)
DBC
for I
gG (g
L)
1 gL
5 gL
10 gLResin TOYOPEARL AF-rProtein A HC-650FColumn size 5 mm ID times 5 cmMobile phase 002 molL sodium phosphate 015 molL NaCl pH 74Residence time 2 35 5 minDetection UV 280 nm (10 breakthrough)Sample human IgG 1 5 10 gL in mobile phase
12 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources CROCMO Viewpoints
Biopharma Advances
Demand Specialized Expertise
Contract service providers share insights on biopharma market developments and the implications of biosimilar drug approvals
The ediTors of Biopharm international
The approval of the first biosimilar in the
United States as well as continuing consolida-
tion in the biopharma and contract develop-
ment and manufacturing markets are just
two indicators of the ongoing evolution of
biopharmaceutical development Representatives of
contract service providers shared observations trends
and projections with BioPharm International
Roundtable participants are Gary Chambers busi-
ness manager biopharma labs Europe SGS Bill
Hartzel director of strategic execution Catalent
Pharma Solutions Chris R Lively PhD director of
biopharmaceutical services PPD Scott Lorimer
VP Global Operations Patheon Biologics Eugene
McNally PhD executive director PPD Consulting
Rekha Patel global director large molecules devel-
opment and analytical solutions Catalent Pharma
Solutions and Mark Rogers vice-president SGS
Life Science Services USA
RegulatoRy and business tRends
BioPharm What regulatory changes have positively or
negatively impacted biopharmaceutical development
manufacturing processes
Ad
am
Ga
ult
Ge
tty Im
ag
es
info_contractmanufacturingebsicom | 1 800 441 4225 | emergentcontractmanufacturingcom
Aseptic FillFinish
Pre-Clinical Development
BDSManufacture
Clinical amp Commerical
Lyo CycleDevelopment
Emergent BioSolutions has a proven track record as a world-class provider of contract manufacturing services for both bulk drug substances and sterile injectable drug products Our team has successfully launched 20 commercial products and developedmanufactured over 200 clinical candidates for our clients
Emerging Capability
State-of-the art flexible single-use facility enables turnkey upstream and downstream solutions for clinical and commercial scale biopharmaceutical drug development
Emergent Contract Manufacturing
Enhancing Life in Every Single Dose
14 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources CROCMO Viewpoints
McNally (PPD Consulting) FDA
establ ished a new Off ice of
Pharmaceutical Quality in 2014
which we anticipate will have major
impacts on the biopharmaceuti-
cal development and manufactur-
ing process This reorganization
was designed to enhance quality
drug assessment by realigning sev-
eral elements of the preapproval
and surveillance inspection pro-
cess Integrating risk-based review
GMP inspection implementation
of quality by design and the new
FDA process validation guidance
within one office is expected to
significantly change the biophar-
maceutical development and manu-
facturing process
H a r t z e l ( C a t a l e n t P h a r m a
Solutions) In todayrsquos market there
are significant manufacturing
challenges in traditional glass vial
filling applications These chal-
lenges manifest in quality issues
with the final container closure
and may be related to microbial
contamination glass particulates
and foreign materials that lead to
necessary market action causing
supply issues
Lorimer (Patheon Biologics) The
greatest regulatory change in recent
times is the acceptance and approval
of biosimilars
BioPharm What business trends
have posit ively or negatively
impacted biopharmaceutical devel-
opmentmanufacturing processes
H a r t z e l ( C a t a l e n t P h a r m a
Solutions) Today there is a stronger
emphasis in the development life-
cycle on the delivery of the mol-
ecule to the patient and not just
the molecule itself Deliverydevice
experts are being added to teams
at Phase II to improve the delivery
beyond the traditional vial
Lively (PPD) Growing interest
in biopharmaceutical drug devel-
opment necessitates partnering
between clients and contractors to
increase industry capacity breadth
of capabilities expertise and
the experience required to bring
these drugs to market The client
will receive the most benefit by
selecting a high-quality contract
research organization (CRO) lab
that is able to meet its needs and
work collaboratively with the cli-
ent to ensure timely development
Lorimer (Patheon Biologics) The
trend of small biotech partner-
ing with large pharma for clinical
manufacturing and development
has certainly facilitated the full
development of more novel mol-
ecules Also the increasing trend
toward outsourcing of GMP biolog-
ics manufacturing ensures biopro-
cessing and testing is performed
by expert manufacturers with
proven track records in quality and
biomanufacturing This helps to
reduce the risk to clinical programs
and product safety
technicalscientific tRendsBioPharm Can you describe pro-
ductivity improvements your com-
pany has experienced from new
technologies
Patel (Catalent Pharma Solutions)
Catalent Pharma Solutions has sig-
nificant ongoing investments in
enhancing our large-molecule ana-
lytical capabilities and productiv-
ity to meet and advance current
industry needs Recent invest-
ments include the updatednew
technologies new assay strategies
and updated electronic systems
and processes
Lively (PPD) Evolving character-
ization expectations for biologics
have driven improvements in ana-
lytical equipment processes and
systems Ultra performance liquid
chromatography (UPLC) systems
have improved resolution and sen-
sitivity while reducing run times
In addition 2D high-performance
liquid chromatography (HPLC)
high-resolution mass spectrom-
etry (MS) allows for analysis of
samples incompatible with tradi-
tional MS Reporter gene bioassays
apply genetically engineered cell
lines both to directly model mech-
anisms of action and to amplify
assays for improved performance
with shorter incubations and
increased signalnoise relative to
standard bioassays
Lorimer (Patheon Biologics) The
main productivity improvement
has been increasing the through-
put of products in Patheonrsquos mul-
tiproduct biopharmaceutical GMP
facilities Single-use disposable
bioreactors and similar single-use
bioprocess equipment minimize
plant downtime which is tradi-
tionally required for line clearance
and product changeover The com-
plexity of product changeovers is
reduced by single-use technology
which decreases the need for clean-
in-place steam-in-place and qual-
ity control testing Typically line
Approval of the first
biosimilar in the
United States as well
as consolidation in
the biopharma and
contract development
and manufacturing
markets are just
two indicators of the
ongoing evolution of
biopharmaceutical
development
YOUR PARTNER FROM CONCEPT TO COMMERCIAL
1
42
5
3CELL LINE DEVELOPMENT
bull Cell line development amp selection
bull Cell line characterization amp optimization
bull Subcloning
bull Suspension adaptation
PROCESS DEVELOPMENT
bull Upstream development amp optimization
bull Media optimization feeding strategyamp design including DoE approach
bull Downstream development ampoptimization
bull Process optimizationprocess scale-up
bull Viral inactivationremoval study design
bull Formulation development amp screening
bull Up to 100L controlled bioreactors
bull Process validation
ANALYTICAL METHODS DEVELOPMENT
bull Development feasibility optimizationtransfer qualification amp validation of methods
bull Identity purity potency safety ampcharacterization
cGMP BIOMANUFACTURING
bull Commercially-licensed facility
bull Flexible manufacturing capabilities
bull Stainless steel amp single-use systemsfrom 100L-1000L
bull FDA EU amp ANVISA inspected
QUALITY AND REGULATORY SERVICES
bull Regulatory strategy amp submissions
bull cGMP CMC Section 7 support
bull In-process amp release testing
bull Stability testing
bull Reference standard generation
For more information please visit us at wwwavidbiocom or
e-mail businessdevelopmentavidbiocom
THE AVID
ADVANTAGE
16 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources CROCMO Viewpoints
clearance time is reduced by sev-
eral days
R o g e r s ( S G S L i f e S c i e n c e
Services) As an analytical ser-
vice provider SGS is constantly
in search of means to improve
its laboratory efficiencies partic-
ularly those that enhance turn-
around time without adversely
effecting quality With this in
mind substitution of HPLC for
UPLC rapid microbiolog ica l
screening methods and invest-
ment in automated approaches to
complex analytical problems such
as protein sequencing are now
being used within the SGS labora-
tory network
Chambers (SGS) From a CRO
point of view the main produc-
tivity improvements in analytics
have been from higher through-
put systems and data analysis The
move to these faster systems with
semiautomated data processing has
allowed us to improve turnaround
times which are passed on to cli-
ents in terms who win on faster
to market times and faster gono
decisions
BioPharm What additional tech-
nology improvements are needed
to improve the efficiency of bio-
processing
Lorimer (Patheon Biologics)
Process analytical technology
(PAT) for continuous monitoring of
bioprocesses is helping reduce the
variability on biopharmaceutical
manufacturing
Also biopharmaceutical devel-
opment and process validation
have been accelerated by the use
of mini-bioreactor systems which
enable a large amount of process
development data to be gener-
ated within a very short timeline
These multi-bioreactor systems
can reduce process develop -
ment timelines by months when
applied to early-stage or late-stage
bioprocesses
Rogers (SGS Life Science Services)
The development of many tech-
nologies follows a common path
from academia to commercial
application and nowhere is this
more evident than in the field of
bioprocessing In almost all exam-
ples the key to this progression
lies in the ability to simplify opera-
tional aspects of the technology
and improve throughput This has
in the past been clearly demon-
strated in for example the field of
mass spectrometry and is currently
evolving with techniques involved
in biophysical characterization
BioPharm What is the greatest
technical challenge facing biophar-
maceutical companies today
Hartzel (Catalent Pharma Solutions)
Cost to manufacture will continue
to be a major challenge for the
industry especially with the rise
of biosimilars and market pressures
to drive down the cost of medi-
cines However the products that
are coming to market are more
targeted which leads to smaller
batch sizes This is counter to the
manufacturing adage of being able
to leverage economies of scale to
drive out costs hence the need to
focus on alternatives technologies
and innovation to reduce the man-
ufacturing costs versus economies
of scale
Lively (PPD) Application of ana-
lytical techniques to better char-
acterize innovator and biosimilar
or follow-on products by physico-
chemical and functional methods
are required and will continue to
be driven by the complexity of
biologics development For exam-
ple changes in formulations may
cause different leachable profiles
requiring increasing emphasis on
extractablesleachables techniques
(ie high-resolution MS) to sup-
port characterization of formu-
lation effects identification of
degradation and impurities and
determination of their potential
impact through application of
potency bioassays
Lorimer (Patheon Biologics) Most
of the technical challenges for
manufacturing have been over-
come and the technologies for
development and manufactur-
ing have been widely adopted
Perhaps the greatest challenge is in
clinical development of novel and
originator molecules where in-vitro
model systems are still not a great
predictor of clinical performance
Rogers (SGS Life Science Services)
To highlight one technical chal-
lenge above all others in todayrsquos
biopharmaceutical industry is
very difficult The complexity of
biotherapeutics often results in
considerable technical difficul-
ties as for example in the area
of impurities recognition of host-
cell proteins (HCPs) and identi-
fication of structural variants at
trace levels are certainly high on
the list of technical concerns The
necessary inclusion of relatively
elaborate analytical techniques
such as sedimentation velocity
analytical ultracentrifugation (SVndash
AUC) within a traditional qual-
ity control release environment is
also not without problems
BioPharm What are the pros-
pects for continuous manufac-
turing to be firmly established in
bioprocessing What are the road-
blocks to implementation
Lorimer (Patheon Biologics)
Continuous product ion f rom
mammalian cell cultures has been
operated in perfusion bioreactors
for many years The main road-
block for continuous processing is
downstream processing of proteins
which currently demands discrete
and distinct unit operations for
removal of impurities removal
of contaminants concentration
of the products and formulation
each in separate controlled steps
Introducing a next generation chemically-defined CHO fed-batch media platform from SAFC Developed across a range of widely used industrial CHO cell lines this newest portfolio media delivers exceptional titers and economic efficiencies Adaptation is simple Celebrate performance and accelerate your bio-development process
Celebrate Request your complimentary sample at sigma-aldrichcomCHOperformance
Cat Nos 14366C 24366C 24367C 24368C
EX-CELLreg ADVANCEDtrade CHO FED-BATCH SYSTEM
CELL CULTUREPERFORMANCE
copy2015 Sigma-Aldrich Co LLC All rights reserved Sigma-Aldrich SAFC and EX-CELL are trademarks of Sigma-Aldrich Co LLC registered in the US and other countries
NEXT GENERATION MEDIA PLATFORM
18 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources CROCMO Viewpoints
and which are not currently ame-
nable to continuous processing
the Rise of biosimilaRs
BioPharm What impact w i l l
biosimilar drugs have on bio-
pharma businesses bioprocessing
approaches and the contract ser-
vices market
Rogers (SGS Life Science Services)
The European biopharma land-
scape has already experienced
impact of the biosimilar drug mar-
ket leading to rapid expansion of
traditional small molecule generic
manufactures into the bio arena
Recent FDA approval of the Sandoz
biosimilar Zarixo may be the seed
for similar changes in the US pro-
viding a potential new line of busi-
ness for established pharmaceutical
companies Contract service pro-
viders such as SGS who already
have considerable experience with
biosimilars are able to offer exper-
tise to businesses new to this mar-
ket and will no doubt benefit from
such expansion in the US
Lively (PPD) Increased invest-
ment in biosimilars is driving
interest in improving and stream-
lining the development processes
as well as the sensitivity and scope
of characterization assays used to
compare biosimilars and innova-
tor drugs The expanding capac-
ity needs result in partnerships
between clients and their contrac-
tors with the systems experience
and expertise to achieve the qual-
ity and speed required while meet-
ing all regulatory expectations for
product approval
Chambers (SGS) With nearly
20 years exper ience perform-
ing biosimilar analysis the big-
gest impact had been the massive
increase in the characterization
needed for biosimilars compared
to innovators (although higher
standards are now needed for new
innovators too) This has resulted
CMOs Add Capabilities
Consolidation in the contract development and manufacturing market has resulted in new capabilities and facility expansions
In May 2015 CMC Biologics announced that it is expanding its Copenhagen Denmark facility to increase its manufacturing capacity through the installation of six 2000-L bioreactors The bioreactors can be run singly or in groups simultaneously or sequentially and are part of the companyrsquos signature Bioreactor 6Pack single-use program The Copenhagen installation will begin initial GMP production in November 2015 and will feature three bioreactors to start Three bioreactors will be added at a later date to complete the configuration Meanwhile the Bioreactor 6Pack at CMCrsquos Seattle facility will complete its first GMP run in mid-2015 and will be ready for commercial launch by the end of the year Through its recent expansions CMC plans to expand its global capacity by more than 30000 liters in the United States and Europe
Also in May 2015 SAFC announced an expansion to its St Louis MO facility to support the commercial-scale production of antibody-drug conjugates The facility which is expected to be online and operational in the third quarter of 2015 was designed to meet SafeBridge category 4 compound handling requirements for highly active or cytotoxic compounds The expansion of an existing Carlsbad CA location will enable SAFC to offer fillfinish capabilities of viral products to its clients in the gene therapy viral vaccine and immunotherapy sectors
Rentschler announced in March 2015 that a 2000-L bioreactor that the company commissioned and built in six months is up and running The bioreactor will be integrated into existing manufacturing suites containing two 1000-L single-use bioreactors according to a company statement The companyrsquos twin bioreactor systemmdashdesigned for running two main bioreactors in parallel with one shared downstream processing unitmdashwill be functional by 2017 The twin system is estimated to double the companyrsquos production capacities for cell culture-derived proteins
In December 2014 FUJIFILM Diosynth Biotechnologies USA (FDBU) acquired Kalon Biotherapeutics adding viral and cell-culture vaccine expertise and capabilities In other activity FDBU started construction of a three-story 62000-ft2 facility in Research Triangle Park NC in January 2015 to house the companyrsquos process and analytical research and development process sciences and stability groups The expected completion date is Q4 2015
In September 2014 PCI a provider of packaging services acquired Biotec Services International a provider of clinical-trial services and temperature-controlled pharmaceutical services headquartered in Bridgend Wales UK The addition expanded PCIrsquos presence in the European Union and added packaging storage and distribution capacity and consultative services for clinical-trial supplies In January 2015 Biotec announced the validation of its clinical supply facility expansion which added almost 50 to the companyrsquos clinical trial materials handling capacity
wwwbiopharminternationalcom June 2015 BioPharm International eBook 19
Outsourcing Resources CROCMO Viewpoints
in challenges in data handling
interpretation and data presenta-
tion Biosimilars have also caused
the re-emergence of orthogonal
techniques like size exclusion
chromatographyndashmulti-angle laser
light scattering (SEC-MALL) and
SV-AUC for aggregation and cir-
cular dichroism (CD) and fourier
transform infrared spectroscopy
(FTIR) for higher-order structure
as critical analyses to understand
and compare and detect subtle
higher-order structural differences
between innovator and biosimilar
samples
Hartzel (Catalent Pharma Solutions)
The rise of biosimilar drugs will
dawn the next generation of bio-
logic manufacturing and force
the industry to look at new ways
of manufacturing to drive down
costs Therefore the industry will
seek new manufacturing partners
with strong technical expertise to
drive out costs through innovation
and operational excellence
Lorimer (Patheon Biologics)
Genera l ly b ios imi la r d r ugs
will encourage competitiveness
within the biopharma sector
Biomanufacturers expect increased
pressure on cost of goods and
pricing Biopharmaceutical con-
tract service providers with a flex-
ible multi-product operation and
proven track record in the indus-
try are well placed to ensure care-
ful control of manufacturing costs
and product quality Processing
approaches wonrsquot change in terms
of technology but there will be a
greater emphasis on operational
excellence to reduce costly inef-
ficiencies and improve yields from
bioprocesses As more biosimilars
come to the forefront and as the
industry trend for outsourcing
continues increasing operational
flexibility while maintaining the
highest quality standards will be
the keys to success
business challenges
BioPharm What is the greatest
business challenge facing biophar-
maceutical companies today
Lively (PPD) As with all phar-
maceutical drug development the
greatest challenge is getting new
life-changing and potentially life-
saving drug candidates to mar-
ket Biopharmaceuticals face more
challenges than traditional small-
molecule drug products because
the science of characterization
of such biologic drugs is rapidly
evolving along with the regulatory
landscape Those companies that
are best able to successfully char-
acterize and differentiate innovator
and biosimilar products for safety
and efficacy will have the greatest
opportunity to benefit
the knowledge gap
BioPharm In what areas do you
see knowledge or expertise gaps in
current biopharmaceutical compa-
nies Why do these gaps exist
Lorimer (Patheon Biologics) There
is a gap in translating good sci-
ence to industrial applications of
technologies that provide for reli-
able efficient cost effective man-
ufacturing at commercial scale
Maintaining a focus during early
development on eventual commer-
cial manufacturing requirements
while balancing limited develop-
ment resources requires a broad
base of coordinated organiza-
tional skillsets and a disciplined
approach
Hartzel (Catalent Pharma Solutions)
Devicedelivery expertise is an
area that has a potential gap For
biologics the historic default con-
tainer closure has been a tradi-
tional glass vial As the healthcare
industry seeks ways to improve
patient care and reduce costs the
delivery to the patient needs to
adopt new technologies and this
is why we have seen a rise of pre-
filled syringes and autoinjectors
These technologies will continue
to evolve and so will the demand
for devicedelivery experts
Lively (PPD) One of the chal-
lenges we see is the various levels
of knowledge and expertise that
exist between biopharmaceutical
RampD and the testing and regula-
tory industries That differential is
impacting those industriesrsquo ability
to fully consider and effectively
implement expectations and guid-
ance for physicochemical and
functional characterization expec-
tations of biologic drugs
Lorimer (Patheon Biologics) The
commercial biopharmaceutical
industry demands global sourc-
ing of materials services supply
and ultimately distribution to each
patient This requires a robust inte-
grated supply chain to deliver high
value products to patients on-time
and at the right quality Doing this
reliably and efficiently with long
production lead times and uncer-
tain market sales forecasts is an
industry wide challenge
Speed-to-market remains a key
challenge to the development of
biopharmaceuticals Speedy first-
time-in-man clinical trials can be
a major hurdle for small biotech
companies and large pharma alike
Rogers (SGS Life Science Services)
I believe there continues to be a
significant problem in the level of
fundamental scientific expertise
within many biopharmaceutical
businesses In part this may be
attributed to the lsquokitrsquo and lsquoblack
boxrsquo approach of many modern
day technologies Due to the
complexity of many biopharma-
ceuticals their development and
success as therapeutics requires a
comprehensive range of scientific
disciplines and expertise which
can be difficult to fully realize
internally particularly for small
and mid-size companies bp
20 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources FillFinish
FillFinish Trends
Automation and disposables continue to reduce human error
Eric s LangEr
Fillfinish operations continue to be domi-
nated by trends in automation and the adop-
tion of single-use equipment But these are
by no means the only factors affecting these
high-value operations according to BioPlan
Associatesrsquo latest biomanufacturing study (1) Fill
finish processes are among the most outsourced
activities in biomanufacturing today and a service
providerrsquos capacity for vialing pre-filled devices
and lyophilization is crucial In a recently pub-
lished whitepaper (2) BioPlan Associates determined
that there is sufficient global in-house capacity
for biologics but the need continues to grow for
greater access to specialized outsourcing competence
Whatrsquos trending is significant improvements in auto-
mation and operations
AutomAtion And single use defining Cmo strAtegy
The top trends today involve automation and devel-
opment of better disposable technologies As part of
the BioPlan study biomanufacturers were asked to
select the trends they believe to be the most impor-
tant in fill and finish today The top three trends
are single-use equipment automation in full isolator
units and facilities becoming multi-product ori-
ented (see Figure 1)
Other important trends were noted including
bull Increased serialization and product labeling for
anti-counterfeiting
Eric s LangEr is president and managing partner at BioPlan Associates Inc elangerbioplanassociatescom tel 3019215979 wwwbioplanassociatescom
Ma
ria T
ou
tou
da
ki
Ge
tty Im
ag
es
WITH ALTHEA YOU HAVE THE POWER TO MAKE
You have the power to make a difference To make new therapeutics that improve quality of life and inspire a healthier world To do this you need a manufacturing partner who embraces your every challenge as its own who shares your unwavering tenacity and dedication from clinical studies through commercial success Thats The Power To Make
PLAY VIDEO
CONTRACT
MANUFACTURING
Q Development
Drug Substance
lj Drug Product
(D Al TH EA I THE POWER TO MAK A MEMBER OF THE AJINOMOTO GROUP
22 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources FillFinish
bull More f i l l f i n i sh fac i l i t ie s
o p e r a t i n g i n d e v e lo p i n g
regions
bull C o m p u t e r - b a s e d v i s u a l
i n s p e c t i o n a r t i f i c i a l
intelligence
bull Use of complex administration
systems
single-use equipment in fillfinish operAtionsT h e a d o p t i o n o f d i s p o s -
ab le e qu ipme nt i n f i l l f i n -
i s h o p e r a t i o n s e l i m i n a t e s
cross-contamination risks and
adds flexibility in process scale
While regulatory rest r ic t ions
may be increased by the adop-
tion of such equipment single-
use appl icat ions a lso enable
contract manufactur ing orga-
nizat ions (CMOs) to increase
fac i l i t y ut i l i z at ion t h rough
multi-product strategies which
can decrease their cost of goods
Experts in the f ield discussed
these trends
Peter Pekos CEO and president
of Dalton Pharma Services a fill
finish CMO says ldquoFor a CMO
disposables can be attractive hellip
For example a disposable isola-
tor can be packed and stored pre-
sterilized for use when needed
a f ixed isolator requires f ixed
space at all times Disposables
also allow a CMO to handle proj-
ects using specific systems for
non-typical project needs such
as disposable isolators without
going to the expense of buying
permanent isolator infrastruc-
ture Disposables do not obviate
the need for technical expertise
hellip so the need for a CMO isnrsquot
really reduced In fact CMOs
with expertise in single-use sys-
tems hellip can make them more
attractiverdquo
Mar t ina Fe r neman cor po -
rate development manager at
Recipharm bel ieves that the
adoption of single-usedispos-
able equipment is now impacting
f i l l and f inish ldquoIn mult ipur-
pose sites the cleaning proce-
dures will become more crucial
to avoid cross contamination
Single-use equipment [also] has
the advantage of shorter lead
t imes and lower procurement
costs Since no cleaning proce-
dure has to be established and
aseptic connections are easier to
be built-up the use of single-
use equipment is not only faster
but also safer than conventional
equipmentrdquo
AutomAtion in full isolAtor unitsW hi le s ing le -use equ ipment
adoption may be one of the hot-
test f i l lf inish trend automa-
tion technologies may actually
be experiencing more rapid rates
of implementation among bio-
manufacturers Indeed sepa-
rate results from BioPlanrsquos 12th
annual study suggest that the
industry wi l l be as l ikely to
implement automation technolo-
gies as they will use single-use
f i l l-f inish devices dur ing the
next 24 months
The removal of human factors
is a key to improving product
quality Isolators and automa-
tion are therefore key drivers
as facilities seek to improve their
i n f r a s t r u c t u r e I n nov a t io n
around equipment and facilities
able to handle multiple products
is going to continue Flexibility
is key as the reduced flexibility
of isolators (and higher cost) in
relation to traditional restricted
access barrier (RAB) systems may
deter some CMOs from adopt-
ing isolators The jury is st i l l
out because the decision fac-
tors between RAB and isolators
are complex and this tends to be
a high-cost decision often left
to the larger f illf inish CMOs
ldquoCMOs will adopt isolator tech-
nologies in their processes to
meet industry needs and reduce
r isk In some cases this wil l
also include disposable isolators
which can offer the benefits of
fixed isolators but add a degree
of f lexibil ity to the manufac-
turerrdquo Pekos notes
According to Ferneman adopt-
ing automat ion in ful l isola-
tor units to reduce the need for
operators is a trend seen in the
CMO market ldquoUse of barr ier
technology (RABS or isolators)
should ensure optimal protec-
t ion of ster i le areas Isolators
bear a better potential to prevent
biocontamination Since the iso-
lator is a closed system a lower
air quality than in RABS systems
can be usedrdquo For freeze-dried
products the RABS system is a
better choice because loading
has to be performed in class AB
surrounding
Fig
ur
e 1
is
co
ur
te
sy
oF
th
e a
ut
ho
r
Figure 1 selected bioprocessing fllfnish trends in 2015
Single-usedisposable equipment
adoption55
36
35Facilities becoming more multi-
product-use oriented
Automation in full isolator units
reduce need for operators
More compounds More accuratelyFaster than ever
Quantitation transformed
Todayrsquos range of possible therapeutic agents from small molecules to peptides to antibodies and
ADCrsquos makes quantitative bioanalysis a challenge Quantify potential therapeutics faster and more
accurately with our new portfolio of LC-MS instruments sample prep solutions and software HRAM
solutions using Thermo Scienti ctrade Orbitraptrade MS enables selectivity for complex molecules while
triple quadrupole MS delivers SRM sensitivity and speed to detect targeted compounds more quickly
Meet todayrsquos challenges with us and together wersquoll transform quantitative bioanalysis
Thermo Scienti ctrade Orbitrap Fusiontrade MSUnprecedented depth of analysis and
throughput for biological discovery
Thermo Scienti ctrade TSQ Quantivatrade MSLeading SRM sensitivity and speed
in a triple quadrupole MSMS
Thermo Scienti ctrade Q Exactivetrade MSScreen and quantify known and unknown targets with HRAM Orbitrap technology
copy 2
014
Ther
mo
Fish
er S
cien
tifi c
Inc
All
right
s re
serv
ed A
ll tr
adem
arks
are
th
e pr
oper
ty o
f The
rmo
Fish
er S
cien
tifi c
and
its
subs
idia
ries
bull Discover more at thermoscienti ccomquan-transformed
24 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources FillFinish
Cmos stAying
AheAd of the Curve
In the whitepaper on in-house
fillfinish operations for recom-
binant therapeutics (2) BioPlan
found relatively low average in-
house capacity utilization rates
for lyophilization (55) pre-filled
devices (58) and vialing (70)
This finding suggests that for fill
finish CMOs the real value isnrsquot
necessarily in providing additional
flexible capacity but rather in posi-
tioning themselves as providing
highly sophisticated and novel
technologies and expertise in fill
finish services Indeed CMOs are
expected to have state-of-the-art
equipment As Pekos notes ldquoCMOs
who implement flexible and inno-
vative technologies to make man-
ufacturing or development more
efficient faster compliant or more
economical all serve to make them
more attractive to customersrdquo
For CMOs that make use of
innovative fillfinish technologies
there appears to be a good deal
of demand Results from BioPlanrsquos
annual studies indicate that fill
finish services are among the most
widely and heavily outsourced
biomanufacturing activities today
and are also among the activities
that biomanufacturers are most
likely to outsource at significantly
higher levels in the future
Biomanufacturers and CMOs are
actively looking to their fillfin-
ish equipment suppliers and are
beginning to demand additional
new technologies innovation and
product development In 2014 for
example when the top areas that
biomanufacturers wanted their
suppliers to focus their develop-
ment efforts on were measured
fillfinish services topped the list
cited by 23 of biomanufacturers
Not only did that figure represent
a substantial increase from years
past (13 in 2011) but it was also
ahead of other services including
upstream and downstream process
development services
Fillfinish will continue
to be an area of
growth for CMOs
There are a number of areas in
which suppliers can add value to
fillfinish innovation according
to industry experts Jim Agalloco
president of Agalloco amp Associates
in Belle Mead NJ says ldquovendors of
equipment and components to fill
finish must continue their roles as
technology leaders Innovation in
this market has always been sup-
plier driven because the operating
firms do not have the necessary
expertise Collaboration between
equipment manufacturers and
component suppliers is essential
for implementation of new con-
tainer systems single-use dispos-
ables and other advancesrdquo
Ronald Malone senior principal
scientist at Novartis Vaccines says
ldquoBlow-fill-seal containerclosure
systems are beneficial for small-
volume parenterals However over-
all cost may still be higher per unit
than traditional vialstopper fill-
ing Vaccines and biologicals can
benefit from single-dose disposable
systems that drive down the cost
of the containerclosure system
This will assist the global supply to
developing world countries where
these products are truly neededrdquo
W B W i e d e r s e i m o f
PharmaBioSource in Wayne PA
states ldquoWe see smaller higher
technical facilities inclusive of dis-
posables (isolators and not RABS)
and advanced aseptic work cell
technology as the wave of the
futurerdquo
WhAt does the future hold
BioPlanrsquos survey data and indus-
try interviews indicate that fill
f inish will continue to be an
area of growth for CMOs that
maintain the required technical
quality and regulatory expertise
in this segment Experts have
taken note of CMOsrsquo introduc-
tion of smaller filling machines
for syringes or vials a trend that
may be in response to the indus-
try-wide move towards smaller-
scale manufactur ing projects
This shift may be accelerated by
the advent of biosimilars which
should provide an increasing
number of projects for fillfin-
ish CMOs although likely on a
smaller scale This increase in
projects could lead to potential
mergers and acquisitions with
some experts noting that fillfin-
ish CMOs are already engaging
in this trend toward larger capac-
ity and global operations
Indeed within the past 18
months a number of acquisi-
tions have occurred including
Pfizerrsquos acquisitions of Hospira
a nd In noPha r ma Pat heonrsquos
mergers in the contract services
space IDT Biolog ika invest-
ments Vet ter invest ing USD
$100 million to upgrade fill-fin-
ish facilities in the United States
a nd Ger ma ny a nd Ba xte r rsquos
investment in German facilities
and numerous others (3)
For CMOs to stay ahead of the
curve they will likely need to
continue to adopt disposables
technologies and advance their
automation in full isolators Ray
Cardin of PharMax Consulting
says ldquoIncreased use of dispos-
able pre-sterilized f illing tech-
nologies [are future trends] The
combination of these pre-ster-
ilized units with the coming of
age of ster i le connectors that
provide high sterility assurance
wwwbiopharminternationalcom June 2015 BioPharm International eBook 25
Outsourcing Resources FillFinish
Biologics Development and Manufacturing Trends Part II
Eric Langer Managing Partner BioPlan Associates talks about the results from BioPlan AssociatesOtilde 12th Annual Report and Survey of Biopharmaceutical Manufacturing Capacity and Production Langer discusses what respondents indicated as the number one trend in biologics manufacturing improving efficiencies and the biosimilars market
in less clean environments is
changing the way aseptic pro-
cesses are designedrdquo
Gordon Leichter PhD Eastern
r e g io n a l s a l e s m a n a ge r a t
Belimed in Charleston SC states
ldquoAutomat ion in fu l l i solators
wil l el iminate operator inter-
vention and laser-sealed vials
Automation will become more
integral to building automation
and enterprise systemsrdquo
Douglas Stockdale vice-presi-
dent CMCTechnical Operations
Hi l lhurst Biopharmaceut ica ls
Los Angeles CA says ldquoIndustry
will continue pushing the PAT
[process analytical technology]
envelope to f ind a lternat ive
methods to improve in-process
methodologies and processesrdquo
Fe r ne ma n add s ldquoCu r r e nt
trends in fillfinish innovation
will probably focus the market
authorization holders on a few
strategic products resulting in
outsourcing of a bigger share of
products overallrdquo
ConClusion
Until recently the handling of
ster i le l iquids in the pharma-
ceutical industry has relied on
relatively consistent techniques
during the past 100 years with
relatively slow changes in tech-
nologies and regulations result-
ing in incremental improvements
in safety efficiency and prod-
uct quality During the past 20
years however costly biologics
have taken a prominent indus-
try role The value of these drugs
can often be measured in tens of
thousands per dose This has put
greater pressure on these down-
stream fillfinish operations to
ensure quality safety and cost-
efficiency are not compromised
at this crucial late stage in manu-
facturing Trends in fillfinish for
recombinant therapeutics include
the increased use of isolator
technologies more high-speed
operations and other innovative
approaches including single-use
processing As a result of industry
research BioPlan expects more
outsourcing of fillfinish opera-
tions in coming years
referenCes 1 BioPlan Associates 12th Annual
Report and Survey of Biopharmaceutical
Manufacturing Capacity and Production
(Rockville MD April 2015) www
bioplanassociatescom
2 BioPlan Associates Trends in Aseptic
Bioprocessing Capacity for the Fill and
Finish of Recombinant Biologics An
Analysis of US and European In-house
Capacity and Capacity Utilization (BioPlan
Associates December 2014)
3 Information derived from BioPlan
Associatesrsquo BioFacilities Newsletters Bp
26 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Cell Therapy
Taking a ldquoDevelopment-by-Designrdquo
Approach to Cell Therapies
Whether outsourcing or developing cell therapies in-house success demands a focus on quality cost of goods
and sustainability from the start
Agnes shAnley
Cell therapies both autologous and allo-
geneic have come a long way in just a
few years Countries around the world
most recently Japan have passed regula-
tions designed to speed development of
these treatments which are now a big and growing
global business
In 2013 according to the Pharmaceutical Research
and Manufacturers Association 69 cell therapies six
of them autologous or patient-specific treatments
were in clinical trials or being reviewed in the United
States alone 15 of them in Phase III trials (1)
The road is littered with failures however often
in clinical stages This has been traced to problems
with manufacturing and failure to understand pro-
cess requirements earlier in the development process
Table I outlines manufacturing issues
As a growing number of Big Pharma companies
explore the potential for immune regenerative and
other cell therapies equipment manufacturers includ-
Agnes shAnley is senior editor of BioPharm International
SC
IEP
RO
GE
tt
y Im
aG
ES
wwwcytovancecomResponsive Reliable Resourceful
Your partner in biopharmaceutical contract manufacturing of therapeutic proteins and antibodies from mammalian cell culture and microbial fermentation
28 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Cell Therapy
ing Pall Corp EMD Millipore
and GE Biosystems have set up
centers of excellence to focus on
developing equipment for this
new market Engineering compa-
nies such as Invetech and Instrom
are developing equipment specific
to this niche
More CDMos are entering
Cell therapy Market niChe
Demand for spec ia l i zed ce l l
t he rapy ma nu fac t u r ing a nd
development serv ices is a lso
growing and has attracted Lonza
Bioservices Cognate BioServices
WuXi AppTech and Roslin Cells
among others
NeoStem is fol low ing t wo
paths pursuing its own cel l
therapy pipel ine and explor-
ing contract services through
its contract development and
manufac t u r ing organ i zat ion
(CDMO) subsidiary Progenitor
Cell Therapy (PCT) With bases
in Irvine and Mountain View CA
and Allendale NJ PCT is cur-
rently working with Intrexon and
Fibrocell on connective tissue
treatments and with the United
K ingdomrsquos Adapt immune on
oncology treatments
A new CEO David Mazzo with
a doctorate in analytical chemis-
try and experience running both
private and public international
biopharma companies assumed
NeoStemrsquos leadership in January
He sees no conflict between grow-
ing a pipeline and a contract man-
ufacturing business
ldquoWe are not trying to be two
di f ferent companies and we
do not see the two competing
with each otherrdquo says Mazzo
in an interview with BioPharm
Inte rnat ionalrsquos s i ster publ ica-
tion Pharmaceutical Technology
during his second week on the
job ldquoInstead there is a symbi-
otic relationship between themrdquo
As he sees it the companyrsquos
track record in developing prod-
ucts should attract more spon-
sors ldquoProblems in development
usually occur at the interfaces
Our unique experience of having
lsquodone that beforersquo should be help-
fulrdquo he says
In January PCT entered a
partnership with Invetech an
equipment design firm based in
Australia with offices in San Diego
to develop automated equipment
for cell therapy manufacturing Fig
ur
e 1
is
co
ur
te
sy
oF
in
ve
te
ch
Figure 1 Part of an automated solution being developed by neostem and invetech Automating processes is key to reducing costs
wwwbiopharminternationalcom June 2015 BioPharm International eBook 29
Outsourcing Resources Cell Therapy
The two companies have already
been working together for a year
now honing the design and speci-
fications for the instrumentation
says NeoStemrsquos Chief Scientific
Officer (CSO) Robert Preti The
equipment will tackle cell therapyrsquos
most challenging side autologous
treatments where the manufactur-
ing lot is the patient dose adminis-
tered at the patientrsquos bedside
As Preti notes there really isnrsquot
much available today in the way
of automated equipment for cell
therapy especially on the autolo-
gous side The equipment will sep-
arate and wash cells among other
functions
labor-intensive
proCesses aDD Cost
So far Preti says the company
is evaluating the evolving equip-
ment in NeoStemrsquos own manu-
facturing efforts ldquoOne of the
largest commercial bottlenecks
is the heavy labor required by
processes especially for patient-
specific uses where one batch is
one patientrdquo
The cost of goods i s ver y
high Preti says ldquoSuccess long-
term will require a whole new
approach to development The
goal is to provide high qual-
ity and sustainabilityrdquo he says
Removing manual operat ions
and human error from the pro-
cess will be crucial
Invetech has been work ing
on cell therapy process scale-up
automation for more than 10
years and has successfully com-
pleted projects in North America
Europe and Asia for companies
that include Argos Therapeutics
Aa s t rom CCR M Hu mac y te
Innovacell Janssen kSep Systems
MolMed Organovo and ViaCyte
accord ing to R ichard Grant
global VP of the companyrsquos bio-
pharma operations who has been
with the company for more than
14 years
ldquoThe goal is to develop a mix
of equipment and manufactur-
ing st rateg ies that maximize
quality scalability and sustain-
ability with an eye toward cost-
effect iveness and commercial
viabilityrdquo Grant says Invetechrsquos
solutions typically tailor a mix of
OEM and customized equipment
to the clientrsquos processes The com-
pany recently commercialized
equipment used to manufacture
Janssenrsquos macular degeneration
treatment
Costs of current manufactur-
ing processes for both autologous
and allogeneic therapies are dif-
ficult to peg Last year experts
at University College London
attempted to pinpoint the cost and
overall economics of allogeneic
cell therapy using single-use tech-
nologies (2)
What is clear for both alloge-
neic and autologous systems is
that cell therapy development
Table I Manufacturing scenarios for cell therapies
Attributes Off-the-shelf therapiesPatient-specifc
therapies
Source material Always allogeneic Autologous or matched allogeneic
Batch size Many patients One patient
Business model Similar to pharmabiopharma New
Scaling Scale up (Increased lot size) Scale out (Increased number of lots)
Comparability vs scale Higher concern Lower concern
Manufacturing design drivers
Mission critical success + +++
Optimized process yield +++ +
Dimensional efficiency ++ +-
Integration +- ++
Automation + ++
source invetech
Table II Measuring comparability risk
Risk level Example Timing
None Automated sterility test Before biologics license application
Low Change in process unit op and cell journey is the same
Before 50 accrual in pivotal trials
Medium Change in process unit op and cell journey is similar
Before initiation of pivotal clinical trials
High Change in process unit op and the cell journey is matched
Some Phase II clinical data
source invetech
30 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Cell Therapy
and manufacturing costs are cur-
rently prohibitive ldquoThe starting
points can vary dramaticallyrdquo
Grant says He recalls one cus-
tomer whose autologous process
ran to $80000 per patient in early
stage clinical trials Automation
he says could reduce costs by
40ndash90 depending on the ther-
apy involved
DevelopMent by Design
But before one can automate any
process one must understand it
NeoStem and PCT like a growing
number of companies are taking
the principle of quality by design
(QbD) to heart in their work
Mazzo arguably one of few
life-science company CEOs to
even articulate the QbD concept
explains that the company has
gone a step further and broadened
the International Conference on
Harmonization guidances adopted
by FDA into ldquodevelopment by
designrdquo (DbD)
ldquoWe say first consider the end-
point then take process as is and
understand its unit operations
Develop inputs and outputs and
discrete steps and define the pro-
cess in a way that promotes under-
standingrdquo he says
ldquoThis is challenging given prod-
uct complexity but there is a need
to understand the mechanism of
action very well so you put each
process in this overall envelope
of DbD and consider the cost of
goods scalability and sustainabil-
ityrdquo Preti adds ldquoYou consider the
process from the end only this
time each batch is an individual
patientrdquo
The critical part is defining and
measuring process needs he says
ldquoProduct definition is very impor-
tant particularly the quality target
product profilerdquo explains Brian
Hampson VP of manufacturing
development and engineering at
PCT in an Oct 22 2014 webcast
for the International Society for
Cell Therapy (3)
have the enD in MinD
Such t h ings a s for mulat ion
issues dosage potency impu-
rities residuals and microbial
assurance need to be thought out
clearly from the start Hampson
says as well as indications for
use geographic market projec-
tions cost-of-goods targets and
IP issues
The profile needs to be a liv-
ing document that changes as the
product takes shape Hampson
says There is a tendency for peo-
ple in the industry to ignore the
product profile until they have
all the answers says Hampson
ldquoInstead it needs to be developed
really early even when you donrsquot
have all or even many of the
answers hellip you can leave them
as blanks and continue to review
add to and updaterdquo
The result is not only a tool for
better understanding the prod-
uct process and mechanism of
action but a communication tool
for stakeholders
When to start DbD for cell ther-
apies ldquoThe temptation is to begin
later in the game when you need
reasonable COGS and you need
to be sure of sustainable manu-
facturingrdquo says Hampson ldquoThe
key thing is comparability and
anticipating its implications early
in the clinical program It needs
to be flexible at the early stagesrdquo
Hampson says ldquoBut as you near
Phase III you need to lock in your
equipment evolves
In the bioreactor area there is great interest in moving from 2-D to 3-D processing to enable the processing of the cell volumes required something that companies such as Israelrsquos Pluristem have been doing for some time
Equipment designer Instrom is partnering with companies including BRTI Life Sciences to focus on 3-D cell matrix technologies developed by Dr John Brekke EMD Millipore has been partnering with PharmaCell BV to use its Mobius bioreactor platform to expand and harvest HepRG cells GE Sciences is also evaluating Wave and other systems and set up a center of excellence in Wales recently
In other equipment areas Pall Corp has been partnering with CMDG LLC on cord blood processing technology Following are some of the equipment manufacturers and systems applied in cell therapy development and manufacturing
bull Beckman Coulter bull Corning Cell Stacks and Cell Cube
bull EMD Millipore bull GE Biosciences
bull Thermo Scientificrsquos Nunc Cell Factories bull Pall Corp
wwwbiopharminternationalcom June 2015 BioPharm International eBook 31
Outsourcing Resources Cell Therapy
processrdquo Table II summarizes issues
and points where changes will be
easier
Thus Hampson suggests that
companies whether work ing
with CDMOs or in house think
through such issues as cost of
goods scale and sustainabil-
ity much earlier than they typi-
cally do today ldquoYou donrsquot need to
spend money on these issues but
you do need to think about themrdquo
Hampson says ldquoQuality must be
a key issue even at Phase II trials
and early action pays off laterrdquo
In addition he suggests that
companies th ink about the
e nt i r e p r o c e s s c o mp r e he n -
sively ldquoThere is often a tendency
to focus on the core processing
stepsrdquo Hampson says ldquoBut you
really need to think about every-
thing from collection of mate-
rial through to administration
of product to the patient and all
steps in betweenrdquo
For ce l l therapies d ispos -
able equipment and closed pro-
cesses can be an effective way to
reduce costs and improve quality
and compliance ldquoThey can allow
you to isolate different processes
so that they can share a Class
100000 cleanroom environmentrdquo
Hampson says
ldquoInvesting in automated informa-
tion management can also pay offrdquo
he says ldquowhere an electronic batch
record system that is fully validated
can enable release-by-exception
reducing error documentation
time and overall quality assurance
costsrdquo Hampson says
In addition he notes it is
important to look at costs compre-
hensively an increase in one cost
can for example reduce overhead
improve process sustainability and
cost of goods Table III outlines the
issues
regulations evolve
Cell therapy is still a new area
for regulators and as Preti says
some guidelines are clear and oth-
ers arenrsquot ldquoDevelopment by design
is needed throughout the pro-
cess but the piece we still struggle
with the most is mode of action
(MOA) and product characteriza-
tion Regulatory agencies under-
stand that it is difficult to pinpoint
MOArdquo
Preti emphasizes the importance
of working with regulators ldquoYou
can be in a position to inform and
influence regulations as products
are developedrdquo he says
For any company moving into
this brave new world top-level ques-
tions are needed Preti says empha-
sizing the following ldquoDo you have
an understanding of scale Can you
scale up from very small Can you
characterize the process and control
it for reliability and qualityrdquo
In the stem cell area in particu-
lar this is crucial Preti said since
the product relies heavily on the
process ldquoManufacturing can be
thought of as patient administra-
tion It cannot be separated in
the same way that it can for tra-
ditional medicinesrdquo For contract
suppliers he adds demonstrated
success will be important and
sponsors should consider whether
a prospective partner will be able
to stay with them for the long run
referenCes 1 P Hourd et al Regulatory Challenges
for the Manufacture and Scale-
Out of Autologous Cell Therapies
Massachusetts General Hospital
(Cambridge MA 2013)
2 S Farid et al Biotechnol Bioeng
111(1) 69-83 (January 2014)
3 R Grant Building Deliverable Cell
Therapeutics A Methodical Approach
to Manufacturing Development
(Webinar Oct 22 2014) bp
source invetech
Justifcation driversChange in cost
doseDevelopment
estimate
Unit Op Ref
Change decription
Comparability risk
Quality COGs Scale Sustainability LaborMaterials outplant
Cost Time
P-2 Process change 1 Medium X X darr $ $$$ TT
P-3 Process change 2 High X X X darr $$$ $$$$ TTT
P-4 Process change 3 Low X X darr $$ $$ TTT
P-2 Process change 4 Low X $$ T
QC-4 In-house QC test None X TT
QA-1Electronic Batch
RecordNone X X X
darr $$$$
TTTT
Table III Process changes timing and comparability risks cogs is cost of goods Qc is quality control
32 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Intellectual Property
Protecting Intellectual Property
in Engagements with CMOs
Important IP contractual provisions should be included when working with CMOs
Jennifer L CoLLins
Biotechnology and pharmaceutical companies
often engage contract CMOs to assist with
the development of their drugs This type
of arrangement naturally involves the devel-
opment of intellectual property (IP) so it is
important for both the CMO and the sponsor to iden-
tify pre-existing intellectual property and also define
how rights to new IP will be allocated protected and
enforced by and between the companies
If the arrangement with the CMO is a traditional fee-
for-service arrangement where the company pays the
CMO service fees to perform development work on its
behalf then generally all new IP (other than improve-
ments to the CMOrsquos manufacturing technology) will be
owned by the biotechnology or pharmaceutical com-
pany that engaged the CMO On the other hand if the
arrangement between the CMO and the biotechnology
or pharmaceutical company is more of a collaborative
arrangement where both parties share the costs of devel-
opment as well as any profits from the commercializa-
tion then IP concerns become much more complicated
In that case in addition to describing which party will
Jennifer L CoLLins is a technology and licensing attorney with Morningstar Law Group jcollinsmorningstarlawgroupcom
Fa
na
tic S
tud
ioG
ett
y Im
ag
es
wwwbiopharminternationalcom June 2015 BioPharm International eBook 33
Outsourcing Resources Intellectual Property
own the new IP the contract should
sort out which party will be respon-
sible for obtaining and maintaining
patents on the new IP controlling
litigation against infringers and
defending the IP against challenges
In addition the parties should agree
upfront on how the IP may be used
by each party following various ter-
mination events so that the parties
are not left fighting about such mat-
ters at a time when they may not be
inclined to agree to anything
In both arrangements without
specific contractual provisions to
define and protect the new IP a
biotechnology company or phar-
maceutical company that uses a
CMO for development is at risk of
losing control of and possibly own-
ership of important improvements
to its drugs This article discusses
IP contractual provisions that
should be included in each type of
arrangement
Fee-For-service
development work
Traditionally CMOs perform fee-for-
service development work where
a biotechnology or pharmaceutical
company engages the CMO to per-
form this work for a fixed fee In this
type of arrangement the CMO is a
service provider and typically takes
no ownership interest in the drug or
product that is being developed or
in improvements to an existing drug
or product that is being tested or
developed The contract governing
the relationship nevertheless must
be clear about the IP rights that are
owned and licensed by each party
If the contract does not provide
for proper assignments of IP to the
biotechnology or pharmaceutical
company then it is likely that the
CMO will own any improvements
or other inventions that it develops
in the performance of the develop-
ment services even if that is not the
intent of the parties
Without signed written contracts
that state otherwise under United
States patent law the inventor of
a patentable invention or improve-
ment will own the invention or
improvement even if the inventor
is engaged to develop the invention
or the improvement for a customer
or other third party To ensure
that the biotechnology company or
pharmaceutical company obtains
all the patent and other IP rights
in developments inventions and
improvements created in the per-
formance of services by the CMO
the governing contract between the
biotechnology company or phar-
maceutical company and the CMO
must include written present assign-
ments of those IP rights from the
CMO to the company Indeed based
on recent cases it is crucial that the
assignment clause in the contract
be a ldquopresentrdquo assignment mean-
ing that it must state specifically
that the CMO ldquohereby assignshelliprdquo
rather than a clause stating that the
CMO ldquoagrees to assignrdquo rights in the
future Otherwise the contract will
be interpreted as a promise to assign
rights in the future and the bio
pharmaceutical company will have
to go back to the CMO at some later
point in time for a separate writ-
ten assignment of rights to obtain
all patent and other IP rights in the
developments
While it sounds logical and
straightforward that the CMO
would assign all inventions created
in the development work to its cus-
tomer it is not always that simple
in practice What if the CMO devel-
ops an improvement to its manu-
facturing process in the course of
the development work Most CMOs
will want to reserve ownership of
any improvements to the CMOrsquos
existing IP and confidential infor-
mation This position is not unrea-
sonable as long as the customer
ultimately has the rights it needs in
all new inventions including those
owned by the CMO to take the drug
forward through further develop-
ment and commercialization One
must sort out IP allocation by sub-
ject matter To achieve this allo-
cation the development contract
typically will state that each party
retains ownership of all IP that it
owns as of the date of the contract
(all pre-existing intellectual prop-
erty) It will also state that the cus-
tomer owns its proprietary drug
and all improvements to the drug
or the customerrsquos confidential infor-
mation developed by either or both
parties The development contract
also may state more generally that
the customer owns all inventions
improvements and IP rights related
to the customerrsquos drug With respect
to the CMO and its IP the develop-
ment contract may state that the
CMO owns all improvements to the
CMOrsquos manufacturing process and
to its other pre-existing intellectual
property Again this reservation is
not unreasonable The customer
however should determine whether
it requires access to those improve-
ments or inventions to complete the
development and commercialization
of its drug If such access is necessary
the customer should either negotiate
a license (which may be royalty-free
or royalty-based depending on the
circumstances) to use such improve-
ments or inventions to develop and
commercialize the drug or the cus-
tomer should negotiate the terms
under which the CMO will continue
to use the improvements or inven-
tions to perform development work
andor manufacture the drug for the
customer
In the fee-for-service arrange-
ment the assignment and licensing
of IP rights in new inventions and
improvements is the key intellectual
property issue Intellectual property
considerations become much more
complicated when the biotechnol-
34 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Intellectual Property
ogy or pharmaceutical company
partners with a CMO in the devel-
opment of a new drug or product
where the parties share development
costs and profits from commercial-
ization of the drug or product
cmo as collaborator
Although not as common as the
fee-for-service arrangement a CMO
may partner with a biotechnology
or pharmaceutical company in the
development and commercialization
of a drug or product Generally both
parties are bringing pre-existing IP
to the collaboration such as a drug
from a biopharmaceutical com-
pany and proprietary drug delivery
technology from the CMO In this
scenario the CMO is taking a long-
term interest and often a part-own-
ership interest in the success of the
drug product
Instead of getting paid an hourly
rate or fixed fee for development
work on the drug product the CMO
may share the cost of development
work with the biotechnology or
pharmaceutical partner in exchange
for a share of the profits when the
drug or product is commercialized
Other costs involved in the develop-
ment and commercialization of the
drug or product that may be shared
include the cost of patent prosecu-
tion and the cost of patent litigation
if the drug product is challenged or
if it is misappropriated or infringed
To secure its interest in the profits
from commercialization of the drug
product the CMO may want to take
an ownership interest in the intel-
lectual property rights in the drug
product All of these issues must be
carefully addressed in the develop-
ment contract to avoid both finan-
cial and IP disputes
As with the fee-for-serv ice
arrangement the parties must
allocate ownership of intellectual
property rights pertaining to the
drug product to be commercialized
These rights include both pre-exist-
ing IP rights and new inventions
and improvements developed in
the course of the development con-
tract As with the fee-for-service
arrangement the parties typically
will retain rights to their respec-
tive pre-existing IP Intellectual
property rights to new inventions
and improvements however may
be shared by giving each party a
co-ownership interest in the intel-
lectual property Alternatively such
rights may be allocated by inventor-
ship with each party taking owner-
ship of developments that it invents
and with the parties jointly own-
ing jointly developed inventions
As another alternative the IP rights
may be allocated by subject matter
as in the fee-for-service arrangement
with each party owning improve-
ments and inventions related to its
pre-existing IP regardless of which
party invents those improvements
and inventions
Depending on how the pat-
ent applications are drafted the
IP rights may be ldquosliced and dicedrdquo
more finely One party for example
could own patent rights for a drug
product for one indication while the
other party owns patent rights for
the same drug product for another
indication Decisions about how
to allocate the IP rights should be
made in consultation with intel-
lectual property counsel and must
take into account the manner in
which the drug will be commercial-
ized If one party for example is
to commercialize the product in
North America and Europe and
the other party is to commercialize
the product in the rest of the world
then either the patent ownership
should be allocated by territory or
the development contract should
include exclusive cross-licenses of
each partyrsquos rights in all the intel-
lectual property necessary to com-
mercialize the product with the first
party having an exclusive license to
commercialize the product in North
America and Europe and the second
party having an exclusive license to
commercialize the product in the
rest of the world
If the parties are going to share
ownership of the IP related to the
drug product then the develop-
ment contract also should specify
which party is responsible for pros-
ecuting and maintaining patents
on the drug product Regardless of
which party is responsible for patent
prosecution and maintenance the
other party should be consulted and
involved in key decisions regard-
ing patent prosecution and main-
tenance Unless there are multiple
patents for different indications that
will be commercialized exclusively
by one party and unless each party
has exclusive rights to commercial-
ize the drug product in particular
geographic areas it generally makes
sense for one party to take the pri-
mary responsibility for patent pros-
ecution and maintenance globally
with the other party consulting and
sharing in the cost of the prosecu-
tion and maintenance in accordance
with the profit sharing The party
that is not responsible for prosecu-
tion and maintenance should have
a contractual right to approve patent
counsel and review and approve pat-
ent filings office action responses
and other communications with
patent registries before they are filed
or submitted so that the parties
agree on the proper prosecution and
maintenance strategy
Likewise the development con-
tract should allocate the rights and
responsibilities for asserting and
defending the patents pertaining to
the product in litigation Often these
rights and responsibilities are allo-
cated by territory according to com-
mercialization rights If one party
for example has the exclusive right
to commercialize the drug product
wwwbiopharminternationalcom June 2015 BioPharm International eBook 35
Outsourcing Resources Intellectual Property
in the US then that party would
have the first right and responsibil-
ity to assert the patents on the drug
product against potential infringers
and defend the patents on the drug
product against infringement claims
in the US Likewise if one party has
the exclusive right to commercial-
ize the drug product for a particular
indication then that party would
have the first right and responsibility
to assert or defend the patents per-
taining to the product with respect
to that indication Both scenarios
can present challenges First some
courts will not recognize an exclu-
sive licensee as having standing to
assert a patent That court might
only allow the owner of the patent
(and not the exclusive licensee) to
bring a lawsuit asserting the patent
It is crucial therefore that contrac-
tual provisions relating to patent liti-
gation require the party that owns
the patent to cooperate in any litiga-
tion and to join the suit as a party if
necessary
Another potential problem is that
any litigation that asserts the pat-
ent is likely to draw a counterclaim
that the patent is invalid thus put-
ting the patent itself at risk of invali-
dation While one party might be
threatened by a potential infringer
in a particular market or for a partic-
ular indication and therefore might
want to assert the patent against the
potential infringer the other party
might not want to put the patent at
risk as to other markets and other
indications For these reasons the
contractual provisions pertaining
to patent litigation must be care-
fully drafted in consultation with
intellectual property counsel who
understands standing issues and
the potential areas for dispute The
contractual provisions also should
include dispute resolution provi-
sions for situations when the parties
do not agree on whether a patent
should be asserted
Finally while the parties may
want and expect their relationship
to continue for the full term of the
patents and the development con-
tract the parties must carefully
consider the IP ramifications of an
early termination of the develop-
ment contract and the relationship
particularly if the development con-
tract is terminated for breach If the
parties are sharing in the ownership
commercialization and profits gen-
erated by the drug product devel-
oped by the collaboration then
all of that must be unwound upon
termination The development
contract should be as specific as
possible with respect to the effect of
various types of termination on the
intellectual property and contin-
ued commercialization of the drug
product In particular the parties
may agree that if the development
contract is terminated due to breach
by one party then that breaching
party must relinquish and transfer
all of its rights with respect to the
drug product to the other party to
allow the non-breaching party to
continue the commercialization of
the drug product post-termination
Whether the necessary rights are
assigned or licensed whether the
terminated party should receive a
royalty for the transfer or license of
those rights and what if any pre-
existing IP is licensed to enable the
non-breaching party to continue
commercializing the drug product
are all key factors for negotiation
The development contract should
also address other types of termi-
nation such as termination for
insolvency and termination with-
out cause (ie if one party decides
it no longer wants to commercial-
ize the drug product) In each case
the effect of termination on the IP
rights should be carefully analyzed
and a competent IP counsel should
carefully draft post-termination
assignments and licenses
conclusion
While IP lawyers are not equipped
with crystal balls they can be
extremely helpful in analyzing par-
ticular development commercializa-
tion and post-termination scenarios
all of which affect IP in a drug devel-
opment arrangement Contractual
provisions related to IP must be
carefully drafted to align with the
strategic business objectives of any
relationship and particularly one
whose purpose is the development
and commercialization of intellec-
tual property Without a clear con-
tract each collaborator is at risk of
losing important rights bp
Ad Index
AJINOMOTO ALTHEA 21
AVID BIOSERVICES INC 15
CYTOVANCE BIOLOGICS 27
EMERGENT BIOSOLUTIONS 13
EUROFINS LANCASTER LABORATORIES 7
SAFC BIOSCIENCES SIGMA ALDRICH 17
THERMO FISHER SCIENTIFIC 23
TOSOH BIOSCIENCE 11
WATERS CORP 3
Company Page
![Page 6: OUOURT NG I C RESOURCESfiles.pharmtech.com/alfresco_images/pharma/2019/03/08/... · 2019-07-22 · VIDEO INTERVIEW Biologics Development and Manufacturing Trends: Part I ... Media](https://reader034.vdocuments.us/reader034/viewer/2022050113/5f4aca886c0d6724390eb040/html5/thumbnails/6.jpg)
6 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Quality Risk Management
visibility of program risks based
upon past program development
with long-term benefit For plat-
form products this means cap-
turing universal program risk
to learn from past risk analyses
and mitigation activities Mature
organizations link assessments to
program milestones moving the
context of risk management from
a supportive role to one of deci-
sion making and program man-
agement
QRM pRoduct developMent and outsouRcingThe principles of QRM can be use-
ful in almost every step of drug
development Risk analysis tools
are ideal as aids to evaluate cri-
teria leading to the selection of
a contract service provider One
important advantage of apply-
ing a QRM approach to product
development is the ability to
harness internal expertise from
across the organization and focus
decision-making using a com-
mon perspective The key process
development activities defined in
the Parenteral Drug Associationrsquos
Technical Report 42 (4) are not
the only development activities
and milestones that can leverage
a QRM framework The empha-
sis in biologic drug development
is predominantly on the drug
substance not the drug prod-
uct While both are important
to a successful drug filing drug
product activities often begin at
the fillfinish stage of the process
and are more standardized from a
design and execution perspective
Figure 1 illustrates which risk
analysis tools can assist in execut-
ing an outsourcing strategy in each
phase of product development
Similar risk analysis tools are color
coded and linked to each of the
four major phases of product devel-
opment prior to commercial manu-
facturing
analytic hieRaRchy pRocess The dec ision to outsource a
key program element to a con-
tract service provider may occur
regardless of the stage of product
development Early in the prod-
uctrsquos development in the preclin-
ical phase development activity
emphasis is on assessing the basic
characteristics of the molecule in
animal models Pharmacokinetic
and pha r macody namic mea-
surements and absorptiondis-
tributionmetabolismexcretion
(ADME) studies are typica l ly
conducted in rodent and non-
rodent mammalian animal mod-
els Selection criteria to assess an
appropriate service provider can
include route of delivery capabil-
ity and experience data analysis
capability schedule and budget-
ary considerat ions The r ight
service provider will contribute
to the success of a programrsquos
investigational new drug filing
and impact the overall program
schedule
One effective risk-analysis tool
to address this outsourcing deci-
sion is Analytic hierarchy process
(AHP) AHP allows the evaluation
to translate subjective opinions
or preferences into measurable
numeric relations to make deci-
sions in a rational way AHP uses
pairwise comparison for consis-
tency in the evaluation of each
criterion for each circumstance
Using AHP requires that the alter-
natives be structured as a hierar-
chy as shown in Figure 2
Figure 3 Preliminary hazard analysis
Attribute Key word Deviation Cause EffectCurrent
safeguardscontrolsHazard levels
ProductNumeric
level
Assay HighOutside tolerance
limitsFillfinish error
Possible hypoglycemia
Sampling manufacturing weight check
High Ampoules 3
Assay LowOutside tolerance
limitsFillfinish error
Possible hyperglycemia
Sampling manufacturing weight check
Medium Ampoules 2
Sterility Low Non-sterilePoor aseptic
handlingInfection
Media fills and environmental monitoring
High Ampoules 3
Keyword Defnition
Low Low risk to patient
Medium Potential risk to form fit and function of drug which could do harm to patient
High Significant risk to a patient andor form fit and function of product
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8 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Quality Risk Management
Within the AHP hierarchy it is
important to establish the priori-
ties for each element Priorities
are the numbers associated with
the nodes to represent the rela-
tive weights of the nodes in any
group Similar to probabilities
priorities are absolute numbers
In executing the method criteria
are evaluated against the goal to
establish priority Similarly each
alternative is evaluated against
each criteria With these two ele-
ments complete the priority of
each alternative can be calcu-
lated against the goal to select
the appropriate contract develop-
ment and manufacturing organi-
zation (CDMO)
decision-tRee analysis
As a molecule passes the pre-
clinical development program
typically an organization will
evaluate the information to make
a gono-go decision to move the
program forward A tool that can
be useful in quantifying this
phase-gate decision is a decision
tree analysis a decision support
tool that uses a tree-like graph of
decisions and their possible con-
sequences including chance event
outcomes and resource costs
One area where a decision
tree has been a useful tool is in
biologic companies with a com-
bination-product development
program Some biologics may inte-
grate a device component such as
an auto-injector as opposed to
an IV delivery The advantage of
an auto-injector is that it is por-
table and able to deliver outside
a healthcare setting Quantifying
the organizat ionrsquos abi l ity to
develop and commercially support
a device component is a signifi-
cant program risk consideration
for many biotech companies
Choosing a contract manufacturer
with experience in devices and
drugs may drive down technical
and program risk but could com-
plicate the overall supply chain
With a decision-tree analysis an
organization can quantify the cost
of moving forward with each alter-
native while flagging uncertain-
ties One course of action may be
to address the uncertainties and
drive the likelihood of success to
an acceptable level before proceed-
ing with any program
AHP and decision-tree analy-
sis can be used anywhere in the
drug development process where
in-house manufacturing versus
outsourcing alternatives must be
evaluated
pReliMinaRy hazaRd analysis
In the United States Phase I
activities involve satisfying FDArsquos
latest expec tat ions in terms
of product design and process
under sta nd ing For mulat ion
selection is one of the first mile-
stones in a Phase I program A
pre l iminar y haza rd ana lysi s
(PHA) is typically performed early
in a program to identify known
hazards determine their causes
effects and probability and to
establish initial design and proce-
dural requirements to eliminate
or control them
While PHA can be used as an
early evaluation of any risk situ-
ation one effective application
of PHA is to evaluate the prod-
uct design from a patient safety
perspective as a precursor to pro-
Figure 4 Monoclonal antibody process train cause-and-effect matrix
Critical quality attributes (Risk level)
Preculture and expansion
Fermentation and harvest
CentrifugeCation exchange chromatography
Anion exchange chromatography
Viral filtrationConcentration
and diafiltration
Vial filling
Appearance (M)
Impurities (H)
Protein content (H)
Immunoreactivity (H)
Purity (H)
Bioburden (H)
In-process controls
Fill weight check (M)
Visual Inspection (M L)
Risk Key None Low Med High
wwwbiopharminternationalcom June 2015 BioPharm International eBook 9
Outsourcing Resources Quality Risk Management
cess design The PHA can use a
simple heat map of low medium
and high-severity assessments
An example of a partial PHA is
shown in Figure 3 Any evalu-
ation that results in a hazard
level of medium or high should
be included as part of the control
strategy for the process
pRocess cause-
and-effect MatRix
As the program moves into the
process design and scale up or
technology transfer activities a
cause-and-effects (CampE) analy-
sis is a simple and effective tool
to determine which unit opera-
tions impact the drug productrsquos
final critical quality attributes
(CQAs) These unit operations
could then focus on determin-
ing if there are critical control
parameters (CPPs) that impact
the final productrsquos CQAs If there
are CPPs present a f inal con-
trol strategy should ref lect the
potential risk of straying from
the process design space for that
unit operation An example of a
simple CampE analysis for a sim-
ple monoclonal antibody (mAb)
process train is given in Figure 4
The CampE matrix can assign val-
ues descriptors or in this case
integrate a heat map to commu-
nicate potential risk
failuRe Modes
and effects analysis
Failure modes and effects analy-
sis (FMEA) is a systematic pro-
active method for evaluating a
process to identify where and
how it might fail and to assess
the relat ive impact of d i f fer-
ent failures It is used to iden-
tify the parts of the process that
represent the greatest risk to the
productrsquos performance FMEAs
are one of the most commonly
used risk analysis tools used in
the biopharma industry today
FMEAs are based upon risk rank-
ing tables that provide a com-
mon definition for ranking the
severity of a failure and the like-
lihood of occurrence These are
typically ranked on a scale of 1
to 10 then multiplied together
to give a r isk priority number
(RPN) For FMEAs that do not
intend to address potential fail-
ure modes dur ing the design
activity such as process FMEAs
an additional evaluation cate-
gorymdashProbability of Detectionmdash
is used It is not unusual for an
FMEA to generate a large num-
ber of potential failure modes
FMEAs can be effective as part of
deviation and corrective and pre-
ventive action (CAPA) root cause
investigations as a structured
tool for identifying and demon-
strating a true root cause for a
non-conformance
Risk Ranking and filteRing
Risk ranking and filtering (RRF)
is a common facilitation method
used for risk management and
is also known as relative r isk
ranking risk indexing and risk
matrix and filtering The intent
is to provide sharper focus to the
critical risks within a systemmdash
typically from a large and com-
plex set of risk scenarios RRF
works by breaking down overall
r isk into risk components and
evaluat ing those components
and their individual contribu-
tions to overall risk RRF is most
suited to comparing and manag-
ing a portfolio of complex risks
RRF like all risk-assessment tools
requires agreed-upon sets of risk
factors and evaluation criteria
RRF provides a means to priori-
tize and filter individual risks
by combining the evaluations of
risk components against set cri-
teria into a single risk score
Applying RRF requires identi-
fying the primary risk question
then defining the head topics
and subtopics An example of
a CDMO audit risk assessment
structure is shown in Figure 5
Figure 5 Risk ranking and fltering (RRF) outsourcing example structure
Risk question
Subtopics
Head topics
What should the audit frequency be at the CDMO to ensure GMP compliance
Engineering
Calibration Manufacturing
Labeling
Supplier
Storage
Changecontrol
Batch release
Deviations
Corrective and
preventive actions
Validation
Packaging
QC testing
Maintenance
Operations ComplianceSupplychain
10 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Quality Risk Management
Biologics Development and Manufacturing Trends Part I
Eric Langer Managing Partner BioPlan Associates talks about the results from BioPlan Associatesrsquo 12th Annual Report and Survey of Biopharmaceutical Manufacturing Capacity and Production Trends in downstream processing protein A and single-use technology are discussed in Part I of this discussion For a discussion on productivity trends and biosimilars see Part II of the interview on page 25
With this structure in place
each risk can be assessed against
the probabil ity of occurrence
and severity impact and summa-
rized in a simple heat map
Risk-adjusted
net pResent value
For those decision milestones
that require investment in capi-
tal or resources a risk-adjusted
net present value (rNPV) is a
more acc urate method than
convent iona l N PV a na ly se s
for communicat ing the t r ue
cost of an investment decision
rNPV is sometimes referred to
as expected NPV (eNPV) rNPV
modifies the standard NPV cal-
cu lat ion of d iscounted cash-
f low analysis by mult iply ing
each cash flow by the estimated
probability that it occurs (the
estimated success rate) In the
language of probability theory
the rNPV is the expected value
rNPV is the standard valuation
method in the drug development
industry where sufficient data
exists to estimate success rates
for all RampD phases
conclusion
Biopharmaceutical products and
processes figure among the most
complex drug development life-
cycles within the industry A
structured QRM program that
integ rates s t anda rd i zed r i sk
assessment tools as part of the
overa l l product development
program can highlight the criti-
cal technical compliance and
regulatory risks when consider-
ing an outsourcing service pro-
vider The application of simple
QRM tools will provide structure
to the decision-making and eval-
uation process and when com-
bined with a simple knowledge
management framework provide
a foundation for all future prod-
uct programs Insight into the
risk and mitigation strategies can
reduce a programrsquos risk profile
significantly
RefeRences 1 ICH Q9 Quality Risk Management
(2005)
2 ICH Q5A-Q5E Quality of
Biotechnological Products
3 ICH Q8 Pharmaceutical Development
(2009)
4 Parenteral Drug Associates
Technical Report 42 Process
Validation for Protein Manufacturing
(2005) Bp
wwwtosohbiosciencecom
Tosoh Bioscience and TOYOPEARL are registered trademarks of Tosoh Corporation
Every mAb is unique
Your Protein A should be as well
TOSOH BIOSCIENCE LLC bull Customer service 866-527-3587 bull Technical service 800-366-4875 option 3
TOYOPEARLreg AF-rProtein A HC-650FHigh Capacity Protein A Resin for Monoclonal Antibody Purifi cation
0
10
20
30
40
50
60
70
80
2 35 5
Residence time (minutes)
DBC
for I
gG (g
L)
1 gL
5 gL
10 gLResin TOYOPEARL AF-rProtein A HC-650FColumn size 5 mm ID times 5 cmMobile phase 002 molL sodium phosphate 015 molL NaCl pH 74Residence time 2 35 5 minDetection UV 280 nm (10 breakthrough)Sample human IgG 1 5 10 gL in mobile phase
12 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources CROCMO Viewpoints
Biopharma Advances
Demand Specialized Expertise
Contract service providers share insights on biopharma market developments and the implications of biosimilar drug approvals
The ediTors of Biopharm international
The approval of the first biosimilar in the
United States as well as continuing consolida-
tion in the biopharma and contract develop-
ment and manufacturing markets are just
two indicators of the ongoing evolution of
biopharmaceutical development Representatives of
contract service providers shared observations trends
and projections with BioPharm International
Roundtable participants are Gary Chambers busi-
ness manager biopharma labs Europe SGS Bill
Hartzel director of strategic execution Catalent
Pharma Solutions Chris R Lively PhD director of
biopharmaceutical services PPD Scott Lorimer
VP Global Operations Patheon Biologics Eugene
McNally PhD executive director PPD Consulting
Rekha Patel global director large molecules devel-
opment and analytical solutions Catalent Pharma
Solutions and Mark Rogers vice-president SGS
Life Science Services USA
RegulatoRy and business tRends
BioPharm What regulatory changes have positively or
negatively impacted biopharmaceutical development
manufacturing processes
Ad
am
Ga
ult
Ge
tty Im
ag
es
info_contractmanufacturingebsicom | 1 800 441 4225 | emergentcontractmanufacturingcom
Aseptic FillFinish
Pre-Clinical Development
BDSManufacture
Clinical amp Commerical
Lyo CycleDevelopment
Emergent BioSolutions has a proven track record as a world-class provider of contract manufacturing services for both bulk drug substances and sterile injectable drug products Our team has successfully launched 20 commercial products and developedmanufactured over 200 clinical candidates for our clients
Emerging Capability
State-of-the art flexible single-use facility enables turnkey upstream and downstream solutions for clinical and commercial scale biopharmaceutical drug development
Emergent Contract Manufacturing
Enhancing Life in Every Single Dose
14 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources CROCMO Viewpoints
McNally (PPD Consulting) FDA
establ ished a new Off ice of
Pharmaceutical Quality in 2014
which we anticipate will have major
impacts on the biopharmaceuti-
cal development and manufactur-
ing process This reorganization
was designed to enhance quality
drug assessment by realigning sev-
eral elements of the preapproval
and surveillance inspection pro-
cess Integrating risk-based review
GMP inspection implementation
of quality by design and the new
FDA process validation guidance
within one office is expected to
significantly change the biophar-
maceutical development and manu-
facturing process
H a r t z e l ( C a t a l e n t P h a r m a
Solutions) In todayrsquos market there
are significant manufacturing
challenges in traditional glass vial
filling applications These chal-
lenges manifest in quality issues
with the final container closure
and may be related to microbial
contamination glass particulates
and foreign materials that lead to
necessary market action causing
supply issues
Lorimer (Patheon Biologics) The
greatest regulatory change in recent
times is the acceptance and approval
of biosimilars
BioPharm What business trends
have posit ively or negatively
impacted biopharmaceutical devel-
opmentmanufacturing processes
H a r t z e l ( C a t a l e n t P h a r m a
Solutions) Today there is a stronger
emphasis in the development life-
cycle on the delivery of the mol-
ecule to the patient and not just
the molecule itself Deliverydevice
experts are being added to teams
at Phase II to improve the delivery
beyond the traditional vial
Lively (PPD) Growing interest
in biopharmaceutical drug devel-
opment necessitates partnering
between clients and contractors to
increase industry capacity breadth
of capabilities expertise and
the experience required to bring
these drugs to market The client
will receive the most benefit by
selecting a high-quality contract
research organization (CRO) lab
that is able to meet its needs and
work collaboratively with the cli-
ent to ensure timely development
Lorimer (Patheon Biologics) The
trend of small biotech partner-
ing with large pharma for clinical
manufacturing and development
has certainly facilitated the full
development of more novel mol-
ecules Also the increasing trend
toward outsourcing of GMP biolog-
ics manufacturing ensures biopro-
cessing and testing is performed
by expert manufacturers with
proven track records in quality and
biomanufacturing This helps to
reduce the risk to clinical programs
and product safety
technicalscientific tRendsBioPharm Can you describe pro-
ductivity improvements your com-
pany has experienced from new
technologies
Patel (Catalent Pharma Solutions)
Catalent Pharma Solutions has sig-
nificant ongoing investments in
enhancing our large-molecule ana-
lytical capabilities and productiv-
ity to meet and advance current
industry needs Recent invest-
ments include the updatednew
technologies new assay strategies
and updated electronic systems
and processes
Lively (PPD) Evolving character-
ization expectations for biologics
have driven improvements in ana-
lytical equipment processes and
systems Ultra performance liquid
chromatography (UPLC) systems
have improved resolution and sen-
sitivity while reducing run times
In addition 2D high-performance
liquid chromatography (HPLC)
high-resolution mass spectrom-
etry (MS) allows for analysis of
samples incompatible with tradi-
tional MS Reporter gene bioassays
apply genetically engineered cell
lines both to directly model mech-
anisms of action and to amplify
assays for improved performance
with shorter incubations and
increased signalnoise relative to
standard bioassays
Lorimer (Patheon Biologics) The
main productivity improvement
has been increasing the through-
put of products in Patheonrsquos mul-
tiproduct biopharmaceutical GMP
facilities Single-use disposable
bioreactors and similar single-use
bioprocess equipment minimize
plant downtime which is tradi-
tionally required for line clearance
and product changeover The com-
plexity of product changeovers is
reduced by single-use technology
which decreases the need for clean-
in-place steam-in-place and qual-
ity control testing Typically line
Approval of the first
biosimilar in the
United States as well
as consolidation in
the biopharma and
contract development
and manufacturing
markets are just
two indicators of the
ongoing evolution of
biopharmaceutical
development
YOUR PARTNER FROM CONCEPT TO COMMERCIAL
1
42
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PROCESS DEVELOPMENT
bull Upstream development amp optimization
bull Media optimization feeding strategyamp design including DoE approach
bull Downstream development ampoptimization
bull Process optimizationprocess scale-up
bull Viral inactivationremoval study design
bull Formulation development amp screening
bull Up to 100L controlled bioreactors
bull Process validation
ANALYTICAL METHODS DEVELOPMENT
bull Development feasibility optimizationtransfer qualification amp validation of methods
bull Identity purity potency safety ampcharacterization
cGMP BIOMANUFACTURING
bull Commercially-licensed facility
bull Flexible manufacturing capabilities
bull Stainless steel amp single-use systemsfrom 100L-1000L
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QUALITY AND REGULATORY SERVICES
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bull cGMP CMC Section 7 support
bull In-process amp release testing
bull Stability testing
bull Reference standard generation
For more information please visit us at wwwavidbiocom or
e-mail businessdevelopmentavidbiocom
THE AVID
ADVANTAGE
16 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources CROCMO Viewpoints
clearance time is reduced by sev-
eral days
R o g e r s ( S G S L i f e S c i e n c e
Services) As an analytical ser-
vice provider SGS is constantly
in search of means to improve
its laboratory efficiencies partic-
ularly those that enhance turn-
around time without adversely
effecting quality With this in
mind substitution of HPLC for
UPLC rapid microbiolog ica l
screening methods and invest-
ment in automated approaches to
complex analytical problems such
as protein sequencing are now
being used within the SGS labora-
tory network
Chambers (SGS) From a CRO
point of view the main produc-
tivity improvements in analytics
have been from higher through-
put systems and data analysis The
move to these faster systems with
semiautomated data processing has
allowed us to improve turnaround
times which are passed on to cli-
ents in terms who win on faster
to market times and faster gono
decisions
BioPharm What additional tech-
nology improvements are needed
to improve the efficiency of bio-
processing
Lorimer (Patheon Biologics)
Process analytical technology
(PAT) for continuous monitoring of
bioprocesses is helping reduce the
variability on biopharmaceutical
manufacturing
Also biopharmaceutical devel-
opment and process validation
have been accelerated by the use
of mini-bioreactor systems which
enable a large amount of process
development data to be gener-
ated within a very short timeline
These multi-bioreactor systems
can reduce process develop -
ment timelines by months when
applied to early-stage or late-stage
bioprocesses
Rogers (SGS Life Science Services)
The development of many tech-
nologies follows a common path
from academia to commercial
application and nowhere is this
more evident than in the field of
bioprocessing In almost all exam-
ples the key to this progression
lies in the ability to simplify opera-
tional aspects of the technology
and improve throughput This has
in the past been clearly demon-
strated in for example the field of
mass spectrometry and is currently
evolving with techniques involved
in biophysical characterization
BioPharm What is the greatest
technical challenge facing biophar-
maceutical companies today
Hartzel (Catalent Pharma Solutions)
Cost to manufacture will continue
to be a major challenge for the
industry especially with the rise
of biosimilars and market pressures
to drive down the cost of medi-
cines However the products that
are coming to market are more
targeted which leads to smaller
batch sizes This is counter to the
manufacturing adage of being able
to leverage economies of scale to
drive out costs hence the need to
focus on alternatives technologies
and innovation to reduce the man-
ufacturing costs versus economies
of scale
Lively (PPD) Application of ana-
lytical techniques to better char-
acterize innovator and biosimilar
or follow-on products by physico-
chemical and functional methods
are required and will continue to
be driven by the complexity of
biologics development For exam-
ple changes in formulations may
cause different leachable profiles
requiring increasing emphasis on
extractablesleachables techniques
(ie high-resolution MS) to sup-
port characterization of formu-
lation effects identification of
degradation and impurities and
determination of their potential
impact through application of
potency bioassays
Lorimer (Patheon Biologics) Most
of the technical challenges for
manufacturing have been over-
come and the technologies for
development and manufactur-
ing have been widely adopted
Perhaps the greatest challenge is in
clinical development of novel and
originator molecules where in-vitro
model systems are still not a great
predictor of clinical performance
Rogers (SGS Life Science Services)
To highlight one technical chal-
lenge above all others in todayrsquos
biopharmaceutical industry is
very difficult The complexity of
biotherapeutics often results in
considerable technical difficul-
ties as for example in the area
of impurities recognition of host-
cell proteins (HCPs) and identi-
fication of structural variants at
trace levels are certainly high on
the list of technical concerns The
necessary inclusion of relatively
elaborate analytical techniques
such as sedimentation velocity
analytical ultracentrifugation (SVndash
AUC) within a traditional qual-
ity control release environment is
also not without problems
BioPharm What are the pros-
pects for continuous manufac-
turing to be firmly established in
bioprocessing What are the road-
blocks to implementation
Lorimer (Patheon Biologics)
Continuous product ion f rom
mammalian cell cultures has been
operated in perfusion bioreactors
for many years The main road-
block for continuous processing is
downstream processing of proteins
which currently demands discrete
and distinct unit operations for
removal of impurities removal
of contaminants concentration
of the products and formulation
each in separate controlled steps
Introducing a next generation chemically-defined CHO fed-batch media platform from SAFC Developed across a range of widely used industrial CHO cell lines this newest portfolio media delivers exceptional titers and economic efficiencies Adaptation is simple Celebrate performance and accelerate your bio-development process
Celebrate Request your complimentary sample at sigma-aldrichcomCHOperformance
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EX-CELLreg ADVANCEDtrade CHO FED-BATCH SYSTEM
CELL CULTUREPERFORMANCE
copy2015 Sigma-Aldrich Co LLC All rights reserved Sigma-Aldrich SAFC and EX-CELL are trademarks of Sigma-Aldrich Co LLC registered in the US and other countries
NEXT GENERATION MEDIA PLATFORM
18 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources CROCMO Viewpoints
and which are not currently ame-
nable to continuous processing
the Rise of biosimilaRs
BioPharm What impact w i l l
biosimilar drugs have on bio-
pharma businesses bioprocessing
approaches and the contract ser-
vices market
Rogers (SGS Life Science Services)
The European biopharma land-
scape has already experienced
impact of the biosimilar drug mar-
ket leading to rapid expansion of
traditional small molecule generic
manufactures into the bio arena
Recent FDA approval of the Sandoz
biosimilar Zarixo may be the seed
for similar changes in the US pro-
viding a potential new line of busi-
ness for established pharmaceutical
companies Contract service pro-
viders such as SGS who already
have considerable experience with
biosimilars are able to offer exper-
tise to businesses new to this mar-
ket and will no doubt benefit from
such expansion in the US
Lively (PPD) Increased invest-
ment in biosimilars is driving
interest in improving and stream-
lining the development processes
as well as the sensitivity and scope
of characterization assays used to
compare biosimilars and innova-
tor drugs The expanding capac-
ity needs result in partnerships
between clients and their contrac-
tors with the systems experience
and expertise to achieve the qual-
ity and speed required while meet-
ing all regulatory expectations for
product approval
Chambers (SGS) With nearly
20 years exper ience perform-
ing biosimilar analysis the big-
gest impact had been the massive
increase in the characterization
needed for biosimilars compared
to innovators (although higher
standards are now needed for new
innovators too) This has resulted
CMOs Add Capabilities
Consolidation in the contract development and manufacturing market has resulted in new capabilities and facility expansions
In May 2015 CMC Biologics announced that it is expanding its Copenhagen Denmark facility to increase its manufacturing capacity through the installation of six 2000-L bioreactors The bioreactors can be run singly or in groups simultaneously or sequentially and are part of the companyrsquos signature Bioreactor 6Pack single-use program The Copenhagen installation will begin initial GMP production in November 2015 and will feature three bioreactors to start Three bioreactors will be added at a later date to complete the configuration Meanwhile the Bioreactor 6Pack at CMCrsquos Seattle facility will complete its first GMP run in mid-2015 and will be ready for commercial launch by the end of the year Through its recent expansions CMC plans to expand its global capacity by more than 30000 liters in the United States and Europe
Also in May 2015 SAFC announced an expansion to its St Louis MO facility to support the commercial-scale production of antibody-drug conjugates The facility which is expected to be online and operational in the third quarter of 2015 was designed to meet SafeBridge category 4 compound handling requirements for highly active or cytotoxic compounds The expansion of an existing Carlsbad CA location will enable SAFC to offer fillfinish capabilities of viral products to its clients in the gene therapy viral vaccine and immunotherapy sectors
Rentschler announced in March 2015 that a 2000-L bioreactor that the company commissioned and built in six months is up and running The bioreactor will be integrated into existing manufacturing suites containing two 1000-L single-use bioreactors according to a company statement The companyrsquos twin bioreactor systemmdashdesigned for running two main bioreactors in parallel with one shared downstream processing unitmdashwill be functional by 2017 The twin system is estimated to double the companyrsquos production capacities for cell culture-derived proteins
In December 2014 FUJIFILM Diosynth Biotechnologies USA (FDBU) acquired Kalon Biotherapeutics adding viral and cell-culture vaccine expertise and capabilities In other activity FDBU started construction of a three-story 62000-ft2 facility in Research Triangle Park NC in January 2015 to house the companyrsquos process and analytical research and development process sciences and stability groups The expected completion date is Q4 2015
In September 2014 PCI a provider of packaging services acquired Biotec Services International a provider of clinical-trial services and temperature-controlled pharmaceutical services headquartered in Bridgend Wales UK The addition expanded PCIrsquos presence in the European Union and added packaging storage and distribution capacity and consultative services for clinical-trial supplies In January 2015 Biotec announced the validation of its clinical supply facility expansion which added almost 50 to the companyrsquos clinical trial materials handling capacity
wwwbiopharminternationalcom June 2015 BioPharm International eBook 19
Outsourcing Resources CROCMO Viewpoints
in challenges in data handling
interpretation and data presenta-
tion Biosimilars have also caused
the re-emergence of orthogonal
techniques like size exclusion
chromatographyndashmulti-angle laser
light scattering (SEC-MALL) and
SV-AUC for aggregation and cir-
cular dichroism (CD) and fourier
transform infrared spectroscopy
(FTIR) for higher-order structure
as critical analyses to understand
and compare and detect subtle
higher-order structural differences
between innovator and biosimilar
samples
Hartzel (Catalent Pharma Solutions)
The rise of biosimilar drugs will
dawn the next generation of bio-
logic manufacturing and force
the industry to look at new ways
of manufacturing to drive down
costs Therefore the industry will
seek new manufacturing partners
with strong technical expertise to
drive out costs through innovation
and operational excellence
Lorimer (Patheon Biologics)
Genera l ly b ios imi la r d r ugs
will encourage competitiveness
within the biopharma sector
Biomanufacturers expect increased
pressure on cost of goods and
pricing Biopharmaceutical con-
tract service providers with a flex-
ible multi-product operation and
proven track record in the indus-
try are well placed to ensure care-
ful control of manufacturing costs
and product quality Processing
approaches wonrsquot change in terms
of technology but there will be a
greater emphasis on operational
excellence to reduce costly inef-
ficiencies and improve yields from
bioprocesses As more biosimilars
come to the forefront and as the
industry trend for outsourcing
continues increasing operational
flexibility while maintaining the
highest quality standards will be
the keys to success
business challenges
BioPharm What is the greatest
business challenge facing biophar-
maceutical companies today
Lively (PPD) As with all phar-
maceutical drug development the
greatest challenge is getting new
life-changing and potentially life-
saving drug candidates to mar-
ket Biopharmaceuticals face more
challenges than traditional small-
molecule drug products because
the science of characterization
of such biologic drugs is rapidly
evolving along with the regulatory
landscape Those companies that
are best able to successfully char-
acterize and differentiate innovator
and biosimilar products for safety
and efficacy will have the greatest
opportunity to benefit
the knowledge gap
BioPharm In what areas do you
see knowledge or expertise gaps in
current biopharmaceutical compa-
nies Why do these gaps exist
Lorimer (Patheon Biologics) There
is a gap in translating good sci-
ence to industrial applications of
technologies that provide for reli-
able efficient cost effective man-
ufacturing at commercial scale
Maintaining a focus during early
development on eventual commer-
cial manufacturing requirements
while balancing limited develop-
ment resources requires a broad
base of coordinated organiza-
tional skillsets and a disciplined
approach
Hartzel (Catalent Pharma Solutions)
Devicedelivery expertise is an
area that has a potential gap For
biologics the historic default con-
tainer closure has been a tradi-
tional glass vial As the healthcare
industry seeks ways to improve
patient care and reduce costs the
delivery to the patient needs to
adopt new technologies and this
is why we have seen a rise of pre-
filled syringes and autoinjectors
These technologies will continue
to evolve and so will the demand
for devicedelivery experts
Lively (PPD) One of the chal-
lenges we see is the various levels
of knowledge and expertise that
exist between biopharmaceutical
RampD and the testing and regula-
tory industries That differential is
impacting those industriesrsquo ability
to fully consider and effectively
implement expectations and guid-
ance for physicochemical and
functional characterization expec-
tations of biologic drugs
Lorimer (Patheon Biologics) The
commercial biopharmaceutical
industry demands global sourc-
ing of materials services supply
and ultimately distribution to each
patient This requires a robust inte-
grated supply chain to deliver high
value products to patients on-time
and at the right quality Doing this
reliably and efficiently with long
production lead times and uncer-
tain market sales forecasts is an
industry wide challenge
Speed-to-market remains a key
challenge to the development of
biopharmaceuticals Speedy first-
time-in-man clinical trials can be
a major hurdle for small biotech
companies and large pharma alike
Rogers (SGS Life Science Services)
I believe there continues to be a
significant problem in the level of
fundamental scientific expertise
within many biopharmaceutical
businesses In part this may be
attributed to the lsquokitrsquo and lsquoblack
boxrsquo approach of many modern
day technologies Due to the
complexity of many biopharma-
ceuticals their development and
success as therapeutics requires a
comprehensive range of scientific
disciplines and expertise which
can be difficult to fully realize
internally particularly for small
and mid-size companies bp
20 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources FillFinish
FillFinish Trends
Automation and disposables continue to reduce human error
Eric s LangEr
Fillfinish operations continue to be domi-
nated by trends in automation and the adop-
tion of single-use equipment But these are
by no means the only factors affecting these
high-value operations according to BioPlan
Associatesrsquo latest biomanufacturing study (1) Fill
finish processes are among the most outsourced
activities in biomanufacturing today and a service
providerrsquos capacity for vialing pre-filled devices
and lyophilization is crucial In a recently pub-
lished whitepaper (2) BioPlan Associates determined
that there is sufficient global in-house capacity
for biologics but the need continues to grow for
greater access to specialized outsourcing competence
Whatrsquos trending is significant improvements in auto-
mation and operations
AutomAtion And single use defining Cmo strAtegy
The top trends today involve automation and devel-
opment of better disposable technologies As part of
the BioPlan study biomanufacturers were asked to
select the trends they believe to be the most impor-
tant in fill and finish today The top three trends
are single-use equipment automation in full isolator
units and facilities becoming multi-product ori-
ented (see Figure 1)
Other important trends were noted including
bull Increased serialization and product labeling for
anti-counterfeiting
Eric s LangEr is president and managing partner at BioPlan Associates Inc elangerbioplanassociatescom tel 3019215979 wwwbioplanassociatescom
Ma
ria T
ou
tou
da
ki
Ge
tty Im
ag
es
WITH ALTHEA YOU HAVE THE POWER TO MAKE
You have the power to make a difference To make new therapeutics that improve quality of life and inspire a healthier world To do this you need a manufacturing partner who embraces your every challenge as its own who shares your unwavering tenacity and dedication from clinical studies through commercial success Thats The Power To Make
PLAY VIDEO
CONTRACT
MANUFACTURING
Q Development
Drug Substance
lj Drug Product
(D Al TH EA I THE POWER TO MAK A MEMBER OF THE AJINOMOTO GROUP
22 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources FillFinish
bull More f i l l f i n i sh fac i l i t ie s
o p e r a t i n g i n d e v e lo p i n g
regions
bull C o m p u t e r - b a s e d v i s u a l
i n s p e c t i o n a r t i f i c i a l
intelligence
bull Use of complex administration
systems
single-use equipment in fillfinish operAtionsT h e a d o p t i o n o f d i s p o s -
ab le e qu ipme nt i n f i l l f i n -
i s h o p e r a t i o n s e l i m i n a t e s
cross-contamination risks and
adds flexibility in process scale
While regulatory rest r ic t ions
may be increased by the adop-
tion of such equipment single-
use appl icat ions a lso enable
contract manufactur ing orga-
nizat ions (CMOs) to increase
fac i l i t y ut i l i z at ion t h rough
multi-product strategies which
can decrease their cost of goods
Experts in the f ield discussed
these trends
Peter Pekos CEO and president
of Dalton Pharma Services a fill
finish CMO says ldquoFor a CMO
disposables can be attractive hellip
For example a disposable isola-
tor can be packed and stored pre-
sterilized for use when needed
a f ixed isolator requires f ixed
space at all times Disposables
also allow a CMO to handle proj-
ects using specific systems for
non-typical project needs such
as disposable isolators without
going to the expense of buying
permanent isolator infrastruc-
ture Disposables do not obviate
the need for technical expertise
hellip so the need for a CMO isnrsquot
really reduced In fact CMOs
with expertise in single-use sys-
tems hellip can make them more
attractiverdquo
Mar t ina Fe r neman cor po -
rate development manager at
Recipharm bel ieves that the
adoption of single-usedispos-
able equipment is now impacting
f i l l and f inish ldquoIn mult ipur-
pose sites the cleaning proce-
dures will become more crucial
to avoid cross contamination
Single-use equipment [also] has
the advantage of shorter lead
t imes and lower procurement
costs Since no cleaning proce-
dure has to be established and
aseptic connections are easier to
be built-up the use of single-
use equipment is not only faster
but also safer than conventional
equipmentrdquo
AutomAtion in full isolAtor unitsW hi le s ing le -use equ ipment
adoption may be one of the hot-
test f i l lf inish trend automa-
tion technologies may actually
be experiencing more rapid rates
of implementation among bio-
manufacturers Indeed sepa-
rate results from BioPlanrsquos 12th
annual study suggest that the
industry wi l l be as l ikely to
implement automation technolo-
gies as they will use single-use
f i l l-f inish devices dur ing the
next 24 months
The removal of human factors
is a key to improving product
quality Isolators and automa-
tion are therefore key drivers
as facilities seek to improve their
i n f r a s t r u c t u r e I n nov a t io n
around equipment and facilities
able to handle multiple products
is going to continue Flexibility
is key as the reduced flexibility
of isolators (and higher cost) in
relation to traditional restricted
access barrier (RAB) systems may
deter some CMOs from adopt-
ing isolators The jury is st i l l
out because the decision fac-
tors between RAB and isolators
are complex and this tends to be
a high-cost decision often left
to the larger f illf inish CMOs
ldquoCMOs will adopt isolator tech-
nologies in their processes to
meet industry needs and reduce
r isk In some cases this wil l
also include disposable isolators
which can offer the benefits of
fixed isolators but add a degree
of f lexibil ity to the manufac-
turerrdquo Pekos notes
According to Ferneman adopt-
ing automat ion in ful l isola-
tor units to reduce the need for
operators is a trend seen in the
CMO market ldquoUse of barr ier
technology (RABS or isolators)
should ensure optimal protec-
t ion of ster i le areas Isolators
bear a better potential to prevent
biocontamination Since the iso-
lator is a closed system a lower
air quality than in RABS systems
can be usedrdquo For freeze-dried
products the RABS system is a
better choice because loading
has to be performed in class AB
surrounding
Fig
ur
e 1
is
co
ur
te
sy
oF
th
e a
ut
ho
r
Figure 1 selected bioprocessing fllfnish trends in 2015
Single-usedisposable equipment
adoption55
36
35Facilities becoming more multi-
product-use oriented
Automation in full isolator units
reduce need for operators
More compounds More accuratelyFaster than ever
Quantitation transformed
Todayrsquos range of possible therapeutic agents from small molecules to peptides to antibodies and
ADCrsquos makes quantitative bioanalysis a challenge Quantify potential therapeutics faster and more
accurately with our new portfolio of LC-MS instruments sample prep solutions and software HRAM
solutions using Thermo Scienti ctrade Orbitraptrade MS enables selectivity for complex molecules while
triple quadrupole MS delivers SRM sensitivity and speed to detect targeted compounds more quickly
Meet todayrsquos challenges with us and together wersquoll transform quantitative bioanalysis
Thermo Scienti ctrade Orbitrap Fusiontrade MSUnprecedented depth of analysis and
throughput for biological discovery
Thermo Scienti ctrade TSQ Quantivatrade MSLeading SRM sensitivity and speed
in a triple quadrupole MSMS
Thermo Scienti ctrade Q Exactivetrade MSScreen and quantify known and unknown targets with HRAM Orbitrap technology
copy 2
014
Ther
mo
Fish
er S
cien
tifi c
Inc
All
right
s re
serv
ed A
ll tr
adem
arks
are
th
e pr
oper
ty o
f The
rmo
Fish
er S
cien
tifi c
and
its
subs
idia
ries
bull Discover more at thermoscienti ccomquan-transformed
24 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources FillFinish
Cmos stAying
AheAd of the Curve
In the whitepaper on in-house
fillfinish operations for recom-
binant therapeutics (2) BioPlan
found relatively low average in-
house capacity utilization rates
for lyophilization (55) pre-filled
devices (58) and vialing (70)
This finding suggests that for fill
finish CMOs the real value isnrsquot
necessarily in providing additional
flexible capacity but rather in posi-
tioning themselves as providing
highly sophisticated and novel
technologies and expertise in fill
finish services Indeed CMOs are
expected to have state-of-the-art
equipment As Pekos notes ldquoCMOs
who implement flexible and inno-
vative technologies to make man-
ufacturing or development more
efficient faster compliant or more
economical all serve to make them
more attractive to customersrdquo
For CMOs that make use of
innovative fillfinish technologies
there appears to be a good deal
of demand Results from BioPlanrsquos
annual studies indicate that fill
finish services are among the most
widely and heavily outsourced
biomanufacturing activities today
and are also among the activities
that biomanufacturers are most
likely to outsource at significantly
higher levels in the future
Biomanufacturers and CMOs are
actively looking to their fillfin-
ish equipment suppliers and are
beginning to demand additional
new technologies innovation and
product development In 2014 for
example when the top areas that
biomanufacturers wanted their
suppliers to focus their develop-
ment efforts on were measured
fillfinish services topped the list
cited by 23 of biomanufacturers
Not only did that figure represent
a substantial increase from years
past (13 in 2011) but it was also
ahead of other services including
upstream and downstream process
development services
Fillfinish will continue
to be an area of
growth for CMOs
There are a number of areas in
which suppliers can add value to
fillfinish innovation according
to industry experts Jim Agalloco
president of Agalloco amp Associates
in Belle Mead NJ says ldquovendors of
equipment and components to fill
finish must continue their roles as
technology leaders Innovation in
this market has always been sup-
plier driven because the operating
firms do not have the necessary
expertise Collaboration between
equipment manufacturers and
component suppliers is essential
for implementation of new con-
tainer systems single-use dispos-
ables and other advancesrdquo
Ronald Malone senior principal
scientist at Novartis Vaccines says
ldquoBlow-fill-seal containerclosure
systems are beneficial for small-
volume parenterals However over-
all cost may still be higher per unit
than traditional vialstopper fill-
ing Vaccines and biologicals can
benefit from single-dose disposable
systems that drive down the cost
of the containerclosure system
This will assist the global supply to
developing world countries where
these products are truly neededrdquo
W B W i e d e r s e i m o f
PharmaBioSource in Wayne PA
states ldquoWe see smaller higher
technical facilities inclusive of dis-
posables (isolators and not RABS)
and advanced aseptic work cell
technology as the wave of the
futurerdquo
WhAt does the future hold
BioPlanrsquos survey data and indus-
try interviews indicate that fill
f inish will continue to be an
area of growth for CMOs that
maintain the required technical
quality and regulatory expertise
in this segment Experts have
taken note of CMOsrsquo introduc-
tion of smaller filling machines
for syringes or vials a trend that
may be in response to the indus-
try-wide move towards smaller-
scale manufactur ing projects
This shift may be accelerated by
the advent of biosimilars which
should provide an increasing
number of projects for fillfin-
ish CMOs although likely on a
smaller scale This increase in
projects could lead to potential
mergers and acquisitions with
some experts noting that fillfin-
ish CMOs are already engaging
in this trend toward larger capac-
ity and global operations
Indeed within the past 18
months a number of acquisi-
tions have occurred including
Pfizerrsquos acquisitions of Hospira
a nd In noPha r ma Pat heonrsquos
mergers in the contract services
space IDT Biolog ika invest-
ments Vet ter invest ing USD
$100 million to upgrade fill-fin-
ish facilities in the United States
a nd Ger ma ny a nd Ba xte r rsquos
investment in German facilities
and numerous others (3)
For CMOs to stay ahead of the
curve they will likely need to
continue to adopt disposables
technologies and advance their
automation in full isolators Ray
Cardin of PharMax Consulting
says ldquoIncreased use of dispos-
able pre-sterilized f illing tech-
nologies [are future trends] The
combination of these pre-ster-
ilized units with the coming of
age of ster i le connectors that
provide high sterility assurance
wwwbiopharminternationalcom June 2015 BioPharm International eBook 25
Outsourcing Resources FillFinish
Biologics Development and Manufacturing Trends Part II
Eric Langer Managing Partner BioPlan Associates talks about the results from BioPlan AssociatesOtilde 12th Annual Report and Survey of Biopharmaceutical Manufacturing Capacity and Production Langer discusses what respondents indicated as the number one trend in biologics manufacturing improving efficiencies and the biosimilars market
in less clean environments is
changing the way aseptic pro-
cesses are designedrdquo
Gordon Leichter PhD Eastern
r e g io n a l s a l e s m a n a ge r a t
Belimed in Charleston SC states
ldquoAutomat ion in fu l l i solators
wil l el iminate operator inter-
vention and laser-sealed vials
Automation will become more
integral to building automation
and enterprise systemsrdquo
Douglas Stockdale vice-presi-
dent CMCTechnical Operations
Hi l lhurst Biopharmaceut ica ls
Los Angeles CA says ldquoIndustry
will continue pushing the PAT
[process analytical technology]
envelope to f ind a lternat ive
methods to improve in-process
methodologies and processesrdquo
Fe r ne ma n add s ldquoCu r r e nt
trends in fillfinish innovation
will probably focus the market
authorization holders on a few
strategic products resulting in
outsourcing of a bigger share of
products overallrdquo
ConClusion
Until recently the handling of
ster i le l iquids in the pharma-
ceutical industry has relied on
relatively consistent techniques
during the past 100 years with
relatively slow changes in tech-
nologies and regulations result-
ing in incremental improvements
in safety efficiency and prod-
uct quality During the past 20
years however costly biologics
have taken a prominent indus-
try role The value of these drugs
can often be measured in tens of
thousands per dose This has put
greater pressure on these down-
stream fillfinish operations to
ensure quality safety and cost-
efficiency are not compromised
at this crucial late stage in manu-
facturing Trends in fillfinish for
recombinant therapeutics include
the increased use of isolator
technologies more high-speed
operations and other innovative
approaches including single-use
processing As a result of industry
research BioPlan expects more
outsourcing of fillfinish opera-
tions in coming years
referenCes 1 BioPlan Associates 12th Annual
Report and Survey of Biopharmaceutical
Manufacturing Capacity and Production
(Rockville MD April 2015) www
bioplanassociatescom
2 BioPlan Associates Trends in Aseptic
Bioprocessing Capacity for the Fill and
Finish of Recombinant Biologics An
Analysis of US and European In-house
Capacity and Capacity Utilization (BioPlan
Associates December 2014)
3 Information derived from BioPlan
Associatesrsquo BioFacilities Newsletters Bp
26 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Cell Therapy
Taking a ldquoDevelopment-by-Designrdquo
Approach to Cell Therapies
Whether outsourcing or developing cell therapies in-house success demands a focus on quality cost of goods
and sustainability from the start
Agnes shAnley
Cell therapies both autologous and allo-
geneic have come a long way in just a
few years Countries around the world
most recently Japan have passed regula-
tions designed to speed development of
these treatments which are now a big and growing
global business
In 2013 according to the Pharmaceutical Research
and Manufacturers Association 69 cell therapies six
of them autologous or patient-specific treatments
were in clinical trials or being reviewed in the United
States alone 15 of them in Phase III trials (1)
The road is littered with failures however often
in clinical stages This has been traced to problems
with manufacturing and failure to understand pro-
cess requirements earlier in the development process
Table I outlines manufacturing issues
As a growing number of Big Pharma companies
explore the potential for immune regenerative and
other cell therapies equipment manufacturers includ-
Agnes shAnley is senior editor of BioPharm International
SC
IEP
RO
GE
tt
y Im
aG
ES
wwwcytovancecomResponsive Reliable Resourceful
Your partner in biopharmaceutical contract manufacturing of therapeutic proteins and antibodies from mammalian cell culture and microbial fermentation
28 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Cell Therapy
ing Pall Corp EMD Millipore
and GE Biosystems have set up
centers of excellence to focus on
developing equipment for this
new market Engineering compa-
nies such as Invetech and Instrom
are developing equipment specific
to this niche
More CDMos are entering
Cell therapy Market niChe
Demand for spec ia l i zed ce l l
t he rapy ma nu fac t u r ing a nd
development serv ices is a lso
growing and has attracted Lonza
Bioservices Cognate BioServices
WuXi AppTech and Roslin Cells
among others
NeoStem is fol low ing t wo
paths pursuing its own cel l
therapy pipel ine and explor-
ing contract services through
its contract development and
manufac t u r ing organ i zat ion
(CDMO) subsidiary Progenitor
Cell Therapy (PCT) With bases
in Irvine and Mountain View CA
and Allendale NJ PCT is cur-
rently working with Intrexon and
Fibrocell on connective tissue
treatments and with the United
K ingdomrsquos Adapt immune on
oncology treatments
A new CEO David Mazzo with
a doctorate in analytical chemis-
try and experience running both
private and public international
biopharma companies assumed
NeoStemrsquos leadership in January
He sees no conflict between grow-
ing a pipeline and a contract man-
ufacturing business
ldquoWe are not trying to be two
di f ferent companies and we
do not see the two competing
with each otherrdquo says Mazzo
in an interview with BioPharm
Inte rnat ionalrsquos s i ster publ ica-
tion Pharmaceutical Technology
during his second week on the
job ldquoInstead there is a symbi-
otic relationship between themrdquo
As he sees it the companyrsquos
track record in developing prod-
ucts should attract more spon-
sors ldquoProblems in development
usually occur at the interfaces
Our unique experience of having
lsquodone that beforersquo should be help-
fulrdquo he says
In January PCT entered a
partnership with Invetech an
equipment design firm based in
Australia with offices in San Diego
to develop automated equipment
for cell therapy manufacturing Fig
ur
e 1
is
co
ur
te
sy
oF
in
ve
te
ch
Figure 1 Part of an automated solution being developed by neostem and invetech Automating processes is key to reducing costs
wwwbiopharminternationalcom June 2015 BioPharm International eBook 29
Outsourcing Resources Cell Therapy
The two companies have already
been working together for a year
now honing the design and speci-
fications for the instrumentation
says NeoStemrsquos Chief Scientific
Officer (CSO) Robert Preti The
equipment will tackle cell therapyrsquos
most challenging side autologous
treatments where the manufactur-
ing lot is the patient dose adminis-
tered at the patientrsquos bedside
As Preti notes there really isnrsquot
much available today in the way
of automated equipment for cell
therapy especially on the autolo-
gous side The equipment will sep-
arate and wash cells among other
functions
labor-intensive
proCesses aDD Cost
So far Preti says the company
is evaluating the evolving equip-
ment in NeoStemrsquos own manu-
facturing efforts ldquoOne of the
largest commercial bottlenecks
is the heavy labor required by
processes especially for patient-
specific uses where one batch is
one patientrdquo
The cost of goods i s ver y
high Preti says ldquoSuccess long-
term will require a whole new
approach to development The
goal is to provide high qual-
ity and sustainabilityrdquo he says
Removing manual operat ions
and human error from the pro-
cess will be crucial
Invetech has been work ing
on cell therapy process scale-up
automation for more than 10
years and has successfully com-
pleted projects in North America
Europe and Asia for companies
that include Argos Therapeutics
Aa s t rom CCR M Hu mac y te
Innovacell Janssen kSep Systems
MolMed Organovo and ViaCyte
accord ing to R ichard Grant
global VP of the companyrsquos bio-
pharma operations who has been
with the company for more than
14 years
ldquoThe goal is to develop a mix
of equipment and manufactur-
ing st rateg ies that maximize
quality scalability and sustain-
ability with an eye toward cost-
effect iveness and commercial
viabilityrdquo Grant says Invetechrsquos
solutions typically tailor a mix of
OEM and customized equipment
to the clientrsquos processes The com-
pany recently commercialized
equipment used to manufacture
Janssenrsquos macular degeneration
treatment
Costs of current manufactur-
ing processes for both autologous
and allogeneic therapies are dif-
ficult to peg Last year experts
at University College London
attempted to pinpoint the cost and
overall economics of allogeneic
cell therapy using single-use tech-
nologies (2)
What is clear for both alloge-
neic and autologous systems is
that cell therapy development
Table I Manufacturing scenarios for cell therapies
Attributes Off-the-shelf therapiesPatient-specifc
therapies
Source material Always allogeneic Autologous or matched allogeneic
Batch size Many patients One patient
Business model Similar to pharmabiopharma New
Scaling Scale up (Increased lot size) Scale out (Increased number of lots)
Comparability vs scale Higher concern Lower concern
Manufacturing design drivers
Mission critical success + +++
Optimized process yield +++ +
Dimensional efficiency ++ +-
Integration +- ++
Automation + ++
source invetech
Table II Measuring comparability risk
Risk level Example Timing
None Automated sterility test Before biologics license application
Low Change in process unit op and cell journey is the same
Before 50 accrual in pivotal trials
Medium Change in process unit op and cell journey is similar
Before initiation of pivotal clinical trials
High Change in process unit op and the cell journey is matched
Some Phase II clinical data
source invetech
30 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Cell Therapy
and manufacturing costs are cur-
rently prohibitive ldquoThe starting
points can vary dramaticallyrdquo
Grant says He recalls one cus-
tomer whose autologous process
ran to $80000 per patient in early
stage clinical trials Automation
he says could reduce costs by
40ndash90 depending on the ther-
apy involved
DevelopMent by Design
But before one can automate any
process one must understand it
NeoStem and PCT like a growing
number of companies are taking
the principle of quality by design
(QbD) to heart in their work
Mazzo arguably one of few
life-science company CEOs to
even articulate the QbD concept
explains that the company has
gone a step further and broadened
the International Conference on
Harmonization guidances adopted
by FDA into ldquodevelopment by
designrdquo (DbD)
ldquoWe say first consider the end-
point then take process as is and
understand its unit operations
Develop inputs and outputs and
discrete steps and define the pro-
cess in a way that promotes under-
standingrdquo he says
ldquoThis is challenging given prod-
uct complexity but there is a need
to understand the mechanism of
action very well so you put each
process in this overall envelope
of DbD and consider the cost of
goods scalability and sustainabil-
ityrdquo Preti adds ldquoYou consider the
process from the end only this
time each batch is an individual
patientrdquo
The critical part is defining and
measuring process needs he says
ldquoProduct definition is very impor-
tant particularly the quality target
product profilerdquo explains Brian
Hampson VP of manufacturing
development and engineering at
PCT in an Oct 22 2014 webcast
for the International Society for
Cell Therapy (3)
have the enD in MinD
Such t h ings a s for mulat ion
issues dosage potency impu-
rities residuals and microbial
assurance need to be thought out
clearly from the start Hampson
says as well as indications for
use geographic market projec-
tions cost-of-goods targets and
IP issues
The profile needs to be a liv-
ing document that changes as the
product takes shape Hampson
says There is a tendency for peo-
ple in the industry to ignore the
product profile until they have
all the answers says Hampson
ldquoInstead it needs to be developed
really early even when you donrsquot
have all or even many of the
answers hellip you can leave them
as blanks and continue to review
add to and updaterdquo
The result is not only a tool for
better understanding the prod-
uct process and mechanism of
action but a communication tool
for stakeholders
When to start DbD for cell ther-
apies ldquoThe temptation is to begin
later in the game when you need
reasonable COGS and you need
to be sure of sustainable manu-
facturingrdquo says Hampson ldquoThe
key thing is comparability and
anticipating its implications early
in the clinical program It needs
to be flexible at the early stagesrdquo
Hampson says ldquoBut as you near
Phase III you need to lock in your
equipment evolves
In the bioreactor area there is great interest in moving from 2-D to 3-D processing to enable the processing of the cell volumes required something that companies such as Israelrsquos Pluristem have been doing for some time
Equipment designer Instrom is partnering with companies including BRTI Life Sciences to focus on 3-D cell matrix technologies developed by Dr John Brekke EMD Millipore has been partnering with PharmaCell BV to use its Mobius bioreactor platform to expand and harvest HepRG cells GE Sciences is also evaluating Wave and other systems and set up a center of excellence in Wales recently
In other equipment areas Pall Corp has been partnering with CMDG LLC on cord blood processing technology Following are some of the equipment manufacturers and systems applied in cell therapy development and manufacturing
bull Beckman Coulter bull Corning Cell Stacks and Cell Cube
bull EMD Millipore bull GE Biosciences
bull Thermo Scientificrsquos Nunc Cell Factories bull Pall Corp
wwwbiopharminternationalcom June 2015 BioPharm International eBook 31
Outsourcing Resources Cell Therapy
processrdquo Table II summarizes issues
and points where changes will be
easier
Thus Hampson suggests that
companies whether work ing
with CDMOs or in house think
through such issues as cost of
goods scale and sustainabil-
ity much earlier than they typi-
cally do today ldquoYou donrsquot need to
spend money on these issues but
you do need to think about themrdquo
Hampson says ldquoQuality must be
a key issue even at Phase II trials
and early action pays off laterrdquo
In addition he suggests that
companies th ink about the
e nt i r e p r o c e s s c o mp r e he n -
sively ldquoThere is often a tendency
to focus on the core processing
stepsrdquo Hampson says ldquoBut you
really need to think about every-
thing from collection of mate-
rial through to administration
of product to the patient and all
steps in betweenrdquo
For ce l l therapies d ispos -
able equipment and closed pro-
cesses can be an effective way to
reduce costs and improve quality
and compliance ldquoThey can allow
you to isolate different processes
so that they can share a Class
100000 cleanroom environmentrdquo
Hampson says
ldquoInvesting in automated informa-
tion management can also pay offrdquo
he says ldquowhere an electronic batch
record system that is fully validated
can enable release-by-exception
reducing error documentation
time and overall quality assurance
costsrdquo Hampson says
In addition he notes it is
important to look at costs compre-
hensively an increase in one cost
can for example reduce overhead
improve process sustainability and
cost of goods Table III outlines the
issues
regulations evolve
Cell therapy is still a new area
for regulators and as Preti says
some guidelines are clear and oth-
ers arenrsquot ldquoDevelopment by design
is needed throughout the pro-
cess but the piece we still struggle
with the most is mode of action
(MOA) and product characteriza-
tion Regulatory agencies under-
stand that it is difficult to pinpoint
MOArdquo
Preti emphasizes the importance
of working with regulators ldquoYou
can be in a position to inform and
influence regulations as products
are developedrdquo he says
For any company moving into
this brave new world top-level ques-
tions are needed Preti says empha-
sizing the following ldquoDo you have
an understanding of scale Can you
scale up from very small Can you
characterize the process and control
it for reliability and qualityrdquo
In the stem cell area in particu-
lar this is crucial Preti said since
the product relies heavily on the
process ldquoManufacturing can be
thought of as patient administra-
tion It cannot be separated in
the same way that it can for tra-
ditional medicinesrdquo For contract
suppliers he adds demonstrated
success will be important and
sponsors should consider whether
a prospective partner will be able
to stay with them for the long run
referenCes 1 P Hourd et al Regulatory Challenges
for the Manufacture and Scale-
Out of Autologous Cell Therapies
Massachusetts General Hospital
(Cambridge MA 2013)
2 S Farid et al Biotechnol Bioeng
111(1) 69-83 (January 2014)
3 R Grant Building Deliverable Cell
Therapeutics A Methodical Approach
to Manufacturing Development
(Webinar Oct 22 2014) bp
source invetech
Justifcation driversChange in cost
doseDevelopment
estimate
Unit Op Ref
Change decription
Comparability risk
Quality COGs Scale Sustainability LaborMaterials outplant
Cost Time
P-2 Process change 1 Medium X X darr $ $$$ TT
P-3 Process change 2 High X X X darr $$$ $$$$ TTT
P-4 Process change 3 Low X X darr $$ $$ TTT
P-2 Process change 4 Low X $$ T
QC-4 In-house QC test None X TT
QA-1Electronic Batch
RecordNone X X X
darr $$$$
TTTT
Table III Process changes timing and comparability risks cogs is cost of goods Qc is quality control
32 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Intellectual Property
Protecting Intellectual Property
in Engagements with CMOs
Important IP contractual provisions should be included when working with CMOs
Jennifer L CoLLins
Biotechnology and pharmaceutical companies
often engage contract CMOs to assist with
the development of their drugs This type
of arrangement naturally involves the devel-
opment of intellectual property (IP) so it is
important for both the CMO and the sponsor to iden-
tify pre-existing intellectual property and also define
how rights to new IP will be allocated protected and
enforced by and between the companies
If the arrangement with the CMO is a traditional fee-
for-service arrangement where the company pays the
CMO service fees to perform development work on its
behalf then generally all new IP (other than improve-
ments to the CMOrsquos manufacturing technology) will be
owned by the biotechnology or pharmaceutical com-
pany that engaged the CMO On the other hand if the
arrangement between the CMO and the biotechnology
or pharmaceutical company is more of a collaborative
arrangement where both parties share the costs of devel-
opment as well as any profits from the commercializa-
tion then IP concerns become much more complicated
In that case in addition to describing which party will
Jennifer L CoLLins is a technology and licensing attorney with Morningstar Law Group jcollinsmorningstarlawgroupcom
Fa
na
tic S
tud
ioG
ett
y Im
ag
es
wwwbiopharminternationalcom June 2015 BioPharm International eBook 33
Outsourcing Resources Intellectual Property
own the new IP the contract should
sort out which party will be respon-
sible for obtaining and maintaining
patents on the new IP controlling
litigation against infringers and
defending the IP against challenges
In addition the parties should agree
upfront on how the IP may be used
by each party following various ter-
mination events so that the parties
are not left fighting about such mat-
ters at a time when they may not be
inclined to agree to anything
In both arrangements without
specific contractual provisions to
define and protect the new IP a
biotechnology company or phar-
maceutical company that uses a
CMO for development is at risk of
losing control of and possibly own-
ership of important improvements
to its drugs This article discusses
IP contractual provisions that
should be included in each type of
arrangement
Fee-For-service
development work
Traditionally CMOs perform fee-for-
service development work where
a biotechnology or pharmaceutical
company engages the CMO to per-
form this work for a fixed fee In this
type of arrangement the CMO is a
service provider and typically takes
no ownership interest in the drug or
product that is being developed or
in improvements to an existing drug
or product that is being tested or
developed The contract governing
the relationship nevertheless must
be clear about the IP rights that are
owned and licensed by each party
If the contract does not provide
for proper assignments of IP to the
biotechnology or pharmaceutical
company then it is likely that the
CMO will own any improvements
or other inventions that it develops
in the performance of the develop-
ment services even if that is not the
intent of the parties
Without signed written contracts
that state otherwise under United
States patent law the inventor of
a patentable invention or improve-
ment will own the invention or
improvement even if the inventor
is engaged to develop the invention
or the improvement for a customer
or other third party To ensure
that the biotechnology company or
pharmaceutical company obtains
all the patent and other IP rights
in developments inventions and
improvements created in the per-
formance of services by the CMO
the governing contract between the
biotechnology company or phar-
maceutical company and the CMO
must include written present assign-
ments of those IP rights from the
CMO to the company Indeed based
on recent cases it is crucial that the
assignment clause in the contract
be a ldquopresentrdquo assignment mean-
ing that it must state specifically
that the CMO ldquohereby assignshelliprdquo
rather than a clause stating that the
CMO ldquoagrees to assignrdquo rights in the
future Otherwise the contract will
be interpreted as a promise to assign
rights in the future and the bio
pharmaceutical company will have
to go back to the CMO at some later
point in time for a separate writ-
ten assignment of rights to obtain
all patent and other IP rights in the
developments
While it sounds logical and
straightforward that the CMO
would assign all inventions created
in the development work to its cus-
tomer it is not always that simple
in practice What if the CMO devel-
ops an improvement to its manu-
facturing process in the course of
the development work Most CMOs
will want to reserve ownership of
any improvements to the CMOrsquos
existing IP and confidential infor-
mation This position is not unrea-
sonable as long as the customer
ultimately has the rights it needs in
all new inventions including those
owned by the CMO to take the drug
forward through further develop-
ment and commercialization One
must sort out IP allocation by sub-
ject matter To achieve this allo-
cation the development contract
typically will state that each party
retains ownership of all IP that it
owns as of the date of the contract
(all pre-existing intellectual prop-
erty) It will also state that the cus-
tomer owns its proprietary drug
and all improvements to the drug
or the customerrsquos confidential infor-
mation developed by either or both
parties The development contract
also may state more generally that
the customer owns all inventions
improvements and IP rights related
to the customerrsquos drug With respect
to the CMO and its IP the develop-
ment contract may state that the
CMO owns all improvements to the
CMOrsquos manufacturing process and
to its other pre-existing intellectual
property Again this reservation is
not unreasonable The customer
however should determine whether
it requires access to those improve-
ments or inventions to complete the
development and commercialization
of its drug If such access is necessary
the customer should either negotiate
a license (which may be royalty-free
or royalty-based depending on the
circumstances) to use such improve-
ments or inventions to develop and
commercialize the drug or the cus-
tomer should negotiate the terms
under which the CMO will continue
to use the improvements or inven-
tions to perform development work
andor manufacture the drug for the
customer
In the fee-for-service arrange-
ment the assignment and licensing
of IP rights in new inventions and
improvements is the key intellectual
property issue Intellectual property
considerations become much more
complicated when the biotechnol-
34 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Intellectual Property
ogy or pharmaceutical company
partners with a CMO in the devel-
opment of a new drug or product
where the parties share development
costs and profits from commercial-
ization of the drug or product
cmo as collaborator
Although not as common as the
fee-for-service arrangement a CMO
may partner with a biotechnology
or pharmaceutical company in the
development and commercialization
of a drug or product Generally both
parties are bringing pre-existing IP
to the collaboration such as a drug
from a biopharmaceutical com-
pany and proprietary drug delivery
technology from the CMO In this
scenario the CMO is taking a long-
term interest and often a part-own-
ership interest in the success of the
drug product
Instead of getting paid an hourly
rate or fixed fee for development
work on the drug product the CMO
may share the cost of development
work with the biotechnology or
pharmaceutical partner in exchange
for a share of the profits when the
drug or product is commercialized
Other costs involved in the develop-
ment and commercialization of the
drug or product that may be shared
include the cost of patent prosecu-
tion and the cost of patent litigation
if the drug product is challenged or
if it is misappropriated or infringed
To secure its interest in the profits
from commercialization of the drug
product the CMO may want to take
an ownership interest in the intel-
lectual property rights in the drug
product All of these issues must be
carefully addressed in the develop-
ment contract to avoid both finan-
cial and IP disputes
As with the fee-for-serv ice
arrangement the parties must
allocate ownership of intellectual
property rights pertaining to the
drug product to be commercialized
These rights include both pre-exist-
ing IP rights and new inventions
and improvements developed in
the course of the development con-
tract As with the fee-for-service
arrangement the parties typically
will retain rights to their respec-
tive pre-existing IP Intellectual
property rights to new inventions
and improvements however may
be shared by giving each party a
co-ownership interest in the intel-
lectual property Alternatively such
rights may be allocated by inventor-
ship with each party taking owner-
ship of developments that it invents
and with the parties jointly own-
ing jointly developed inventions
As another alternative the IP rights
may be allocated by subject matter
as in the fee-for-service arrangement
with each party owning improve-
ments and inventions related to its
pre-existing IP regardless of which
party invents those improvements
and inventions
Depending on how the pat-
ent applications are drafted the
IP rights may be ldquosliced and dicedrdquo
more finely One party for example
could own patent rights for a drug
product for one indication while the
other party owns patent rights for
the same drug product for another
indication Decisions about how
to allocate the IP rights should be
made in consultation with intel-
lectual property counsel and must
take into account the manner in
which the drug will be commercial-
ized If one party for example is
to commercialize the product in
North America and Europe and
the other party is to commercialize
the product in the rest of the world
then either the patent ownership
should be allocated by territory or
the development contract should
include exclusive cross-licenses of
each partyrsquos rights in all the intel-
lectual property necessary to com-
mercialize the product with the first
party having an exclusive license to
commercialize the product in North
America and Europe and the second
party having an exclusive license to
commercialize the product in the
rest of the world
If the parties are going to share
ownership of the IP related to the
drug product then the develop-
ment contract also should specify
which party is responsible for pros-
ecuting and maintaining patents
on the drug product Regardless of
which party is responsible for patent
prosecution and maintenance the
other party should be consulted and
involved in key decisions regard-
ing patent prosecution and main-
tenance Unless there are multiple
patents for different indications that
will be commercialized exclusively
by one party and unless each party
has exclusive rights to commercial-
ize the drug product in particular
geographic areas it generally makes
sense for one party to take the pri-
mary responsibility for patent pros-
ecution and maintenance globally
with the other party consulting and
sharing in the cost of the prosecu-
tion and maintenance in accordance
with the profit sharing The party
that is not responsible for prosecu-
tion and maintenance should have
a contractual right to approve patent
counsel and review and approve pat-
ent filings office action responses
and other communications with
patent registries before they are filed
or submitted so that the parties
agree on the proper prosecution and
maintenance strategy
Likewise the development con-
tract should allocate the rights and
responsibilities for asserting and
defending the patents pertaining to
the product in litigation Often these
rights and responsibilities are allo-
cated by territory according to com-
mercialization rights If one party
for example has the exclusive right
to commercialize the drug product
wwwbiopharminternationalcom June 2015 BioPharm International eBook 35
Outsourcing Resources Intellectual Property
in the US then that party would
have the first right and responsibil-
ity to assert the patents on the drug
product against potential infringers
and defend the patents on the drug
product against infringement claims
in the US Likewise if one party has
the exclusive right to commercial-
ize the drug product for a particular
indication then that party would
have the first right and responsibility
to assert or defend the patents per-
taining to the product with respect
to that indication Both scenarios
can present challenges First some
courts will not recognize an exclu-
sive licensee as having standing to
assert a patent That court might
only allow the owner of the patent
(and not the exclusive licensee) to
bring a lawsuit asserting the patent
It is crucial therefore that contrac-
tual provisions relating to patent liti-
gation require the party that owns
the patent to cooperate in any litiga-
tion and to join the suit as a party if
necessary
Another potential problem is that
any litigation that asserts the pat-
ent is likely to draw a counterclaim
that the patent is invalid thus put-
ting the patent itself at risk of invali-
dation While one party might be
threatened by a potential infringer
in a particular market or for a partic-
ular indication and therefore might
want to assert the patent against the
potential infringer the other party
might not want to put the patent at
risk as to other markets and other
indications For these reasons the
contractual provisions pertaining
to patent litigation must be care-
fully drafted in consultation with
intellectual property counsel who
understands standing issues and
the potential areas for dispute The
contractual provisions also should
include dispute resolution provi-
sions for situations when the parties
do not agree on whether a patent
should be asserted
Finally while the parties may
want and expect their relationship
to continue for the full term of the
patents and the development con-
tract the parties must carefully
consider the IP ramifications of an
early termination of the develop-
ment contract and the relationship
particularly if the development con-
tract is terminated for breach If the
parties are sharing in the ownership
commercialization and profits gen-
erated by the drug product devel-
oped by the collaboration then
all of that must be unwound upon
termination The development
contract should be as specific as
possible with respect to the effect of
various types of termination on the
intellectual property and contin-
ued commercialization of the drug
product In particular the parties
may agree that if the development
contract is terminated due to breach
by one party then that breaching
party must relinquish and transfer
all of its rights with respect to the
drug product to the other party to
allow the non-breaching party to
continue the commercialization of
the drug product post-termination
Whether the necessary rights are
assigned or licensed whether the
terminated party should receive a
royalty for the transfer or license of
those rights and what if any pre-
existing IP is licensed to enable the
non-breaching party to continue
commercializing the drug product
are all key factors for negotiation
The development contract should
also address other types of termi-
nation such as termination for
insolvency and termination with-
out cause (ie if one party decides
it no longer wants to commercial-
ize the drug product) In each case
the effect of termination on the IP
rights should be carefully analyzed
and a competent IP counsel should
carefully draft post-termination
assignments and licenses
conclusion
While IP lawyers are not equipped
with crystal balls they can be
extremely helpful in analyzing par-
ticular development commercializa-
tion and post-termination scenarios
all of which affect IP in a drug devel-
opment arrangement Contractual
provisions related to IP must be
carefully drafted to align with the
strategic business objectives of any
relationship and particularly one
whose purpose is the development
and commercialization of intellec-
tual property Without a clear con-
tract each collaborator is at risk of
losing important rights bp
Ad Index
AJINOMOTO ALTHEA 21
AVID BIOSERVICES INC 15
CYTOVANCE BIOLOGICS 27
EMERGENT BIOSOLUTIONS 13
EUROFINS LANCASTER LABORATORIES 7
SAFC BIOSCIENCES SIGMA ALDRICH 17
THERMO FISHER SCIENTIFIC 23
TOSOH BIOSCIENCE 11
WATERS CORP 3
Company Page
![Page 7: OUOURT NG I C RESOURCESfiles.pharmtech.com/alfresco_images/pharma/2019/03/08/... · 2019-07-22 · VIDEO INTERVIEW Biologics Development and Manufacturing Trends: Part I ... Media](https://reader034.vdocuments.us/reader034/viewer/2022050113/5f4aca886c0d6724390eb040/html5/thumbnails/7.jpg)
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8 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Quality Risk Management
Within the AHP hierarchy it is
important to establish the priori-
ties for each element Priorities
are the numbers associated with
the nodes to represent the rela-
tive weights of the nodes in any
group Similar to probabilities
priorities are absolute numbers
In executing the method criteria
are evaluated against the goal to
establish priority Similarly each
alternative is evaluated against
each criteria With these two ele-
ments complete the priority of
each alternative can be calcu-
lated against the goal to select
the appropriate contract develop-
ment and manufacturing organi-
zation (CDMO)
decision-tRee analysis
As a molecule passes the pre-
clinical development program
typically an organization will
evaluate the information to make
a gono-go decision to move the
program forward A tool that can
be useful in quantifying this
phase-gate decision is a decision
tree analysis a decision support
tool that uses a tree-like graph of
decisions and their possible con-
sequences including chance event
outcomes and resource costs
One area where a decision
tree has been a useful tool is in
biologic companies with a com-
bination-product development
program Some biologics may inte-
grate a device component such as
an auto-injector as opposed to
an IV delivery The advantage of
an auto-injector is that it is por-
table and able to deliver outside
a healthcare setting Quantifying
the organizat ionrsquos abi l ity to
develop and commercially support
a device component is a signifi-
cant program risk consideration
for many biotech companies
Choosing a contract manufacturer
with experience in devices and
drugs may drive down technical
and program risk but could com-
plicate the overall supply chain
With a decision-tree analysis an
organization can quantify the cost
of moving forward with each alter-
native while flagging uncertain-
ties One course of action may be
to address the uncertainties and
drive the likelihood of success to
an acceptable level before proceed-
ing with any program
AHP and decision-tree analy-
sis can be used anywhere in the
drug development process where
in-house manufacturing versus
outsourcing alternatives must be
evaluated
pReliMinaRy hazaRd analysis
In the United States Phase I
activities involve satisfying FDArsquos
latest expec tat ions in terms
of product design and process
under sta nd ing For mulat ion
selection is one of the first mile-
stones in a Phase I program A
pre l iminar y haza rd ana lysi s
(PHA) is typically performed early
in a program to identify known
hazards determine their causes
effects and probability and to
establish initial design and proce-
dural requirements to eliminate
or control them
While PHA can be used as an
early evaluation of any risk situ-
ation one effective application
of PHA is to evaluate the prod-
uct design from a patient safety
perspective as a precursor to pro-
Figure 4 Monoclonal antibody process train cause-and-effect matrix
Critical quality attributes (Risk level)
Preculture and expansion
Fermentation and harvest
CentrifugeCation exchange chromatography
Anion exchange chromatography
Viral filtrationConcentration
and diafiltration
Vial filling
Appearance (M)
Impurities (H)
Protein content (H)
Immunoreactivity (H)
Purity (H)
Bioburden (H)
In-process controls
Fill weight check (M)
Visual Inspection (M L)
Risk Key None Low Med High
wwwbiopharminternationalcom June 2015 BioPharm International eBook 9
Outsourcing Resources Quality Risk Management
cess design The PHA can use a
simple heat map of low medium
and high-severity assessments
An example of a partial PHA is
shown in Figure 3 Any evalu-
ation that results in a hazard
level of medium or high should
be included as part of the control
strategy for the process
pRocess cause-
and-effect MatRix
As the program moves into the
process design and scale up or
technology transfer activities a
cause-and-effects (CampE) analy-
sis is a simple and effective tool
to determine which unit opera-
tions impact the drug productrsquos
final critical quality attributes
(CQAs) These unit operations
could then focus on determin-
ing if there are critical control
parameters (CPPs) that impact
the final productrsquos CQAs If there
are CPPs present a f inal con-
trol strategy should ref lect the
potential risk of straying from
the process design space for that
unit operation An example of a
simple CampE analysis for a sim-
ple monoclonal antibody (mAb)
process train is given in Figure 4
The CampE matrix can assign val-
ues descriptors or in this case
integrate a heat map to commu-
nicate potential risk
failuRe Modes
and effects analysis
Failure modes and effects analy-
sis (FMEA) is a systematic pro-
active method for evaluating a
process to identify where and
how it might fail and to assess
the relat ive impact of d i f fer-
ent failures It is used to iden-
tify the parts of the process that
represent the greatest risk to the
productrsquos performance FMEAs
are one of the most commonly
used risk analysis tools used in
the biopharma industry today
FMEAs are based upon risk rank-
ing tables that provide a com-
mon definition for ranking the
severity of a failure and the like-
lihood of occurrence These are
typically ranked on a scale of 1
to 10 then multiplied together
to give a r isk priority number
(RPN) For FMEAs that do not
intend to address potential fail-
ure modes dur ing the design
activity such as process FMEAs
an additional evaluation cate-
gorymdashProbability of Detectionmdash
is used It is not unusual for an
FMEA to generate a large num-
ber of potential failure modes
FMEAs can be effective as part of
deviation and corrective and pre-
ventive action (CAPA) root cause
investigations as a structured
tool for identifying and demon-
strating a true root cause for a
non-conformance
Risk Ranking and filteRing
Risk ranking and filtering (RRF)
is a common facilitation method
used for risk management and
is also known as relative r isk
ranking risk indexing and risk
matrix and filtering The intent
is to provide sharper focus to the
critical risks within a systemmdash
typically from a large and com-
plex set of risk scenarios RRF
works by breaking down overall
r isk into risk components and
evaluat ing those components
and their individual contribu-
tions to overall risk RRF is most
suited to comparing and manag-
ing a portfolio of complex risks
RRF like all risk-assessment tools
requires agreed-upon sets of risk
factors and evaluation criteria
RRF provides a means to priori-
tize and filter individual risks
by combining the evaluations of
risk components against set cri-
teria into a single risk score
Applying RRF requires identi-
fying the primary risk question
then defining the head topics
and subtopics An example of
a CDMO audit risk assessment
structure is shown in Figure 5
Figure 5 Risk ranking and fltering (RRF) outsourcing example structure
Risk question
Subtopics
Head topics
What should the audit frequency be at the CDMO to ensure GMP compliance
Engineering
Calibration Manufacturing
Labeling
Supplier
Storage
Changecontrol
Batch release
Deviations
Corrective and
preventive actions
Validation
Packaging
QC testing
Maintenance
Operations ComplianceSupplychain
10 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Quality Risk Management
Biologics Development and Manufacturing Trends Part I
Eric Langer Managing Partner BioPlan Associates talks about the results from BioPlan Associatesrsquo 12th Annual Report and Survey of Biopharmaceutical Manufacturing Capacity and Production Trends in downstream processing protein A and single-use technology are discussed in Part I of this discussion For a discussion on productivity trends and biosimilars see Part II of the interview on page 25
With this structure in place
each risk can be assessed against
the probabil ity of occurrence
and severity impact and summa-
rized in a simple heat map
Risk-adjusted
net pResent value
For those decision milestones
that require investment in capi-
tal or resources a risk-adjusted
net present value (rNPV) is a
more acc urate method than
convent iona l N PV a na ly se s
for communicat ing the t r ue
cost of an investment decision
rNPV is sometimes referred to
as expected NPV (eNPV) rNPV
modifies the standard NPV cal-
cu lat ion of d iscounted cash-
f low analysis by mult iply ing
each cash flow by the estimated
probability that it occurs (the
estimated success rate) In the
language of probability theory
the rNPV is the expected value
rNPV is the standard valuation
method in the drug development
industry where sufficient data
exists to estimate success rates
for all RampD phases
conclusion
Biopharmaceutical products and
processes figure among the most
complex drug development life-
cycles within the industry A
structured QRM program that
integ rates s t anda rd i zed r i sk
assessment tools as part of the
overa l l product development
program can highlight the criti-
cal technical compliance and
regulatory risks when consider-
ing an outsourcing service pro-
vider The application of simple
QRM tools will provide structure
to the decision-making and eval-
uation process and when com-
bined with a simple knowledge
management framework provide
a foundation for all future prod-
uct programs Insight into the
risk and mitigation strategies can
reduce a programrsquos risk profile
significantly
RefeRences 1 ICH Q9 Quality Risk Management
(2005)
2 ICH Q5A-Q5E Quality of
Biotechnological Products
3 ICH Q8 Pharmaceutical Development
(2009)
4 Parenteral Drug Associates
Technical Report 42 Process
Validation for Protein Manufacturing
(2005) Bp
wwwtosohbiosciencecom
Tosoh Bioscience and TOYOPEARL are registered trademarks of Tosoh Corporation
Every mAb is unique
Your Protein A should be as well
TOSOH BIOSCIENCE LLC bull Customer service 866-527-3587 bull Technical service 800-366-4875 option 3
TOYOPEARLreg AF-rProtein A HC-650FHigh Capacity Protein A Resin for Monoclonal Antibody Purifi cation
0
10
20
30
40
50
60
70
80
2 35 5
Residence time (minutes)
DBC
for I
gG (g
L)
1 gL
5 gL
10 gLResin TOYOPEARL AF-rProtein A HC-650FColumn size 5 mm ID times 5 cmMobile phase 002 molL sodium phosphate 015 molL NaCl pH 74Residence time 2 35 5 minDetection UV 280 nm (10 breakthrough)Sample human IgG 1 5 10 gL in mobile phase
12 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources CROCMO Viewpoints
Biopharma Advances
Demand Specialized Expertise
Contract service providers share insights on biopharma market developments and the implications of biosimilar drug approvals
The ediTors of Biopharm international
The approval of the first biosimilar in the
United States as well as continuing consolida-
tion in the biopharma and contract develop-
ment and manufacturing markets are just
two indicators of the ongoing evolution of
biopharmaceutical development Representatives of
contract service providers shared observations trends
and projections with BioPharm International
Roundtable participants are Gary Chambers busi-
ness manager biopharma labs Europe SGS Bill
Hartzel director of strategic execution Catalent
Pharma Solutions Chris R Lively PhD director of
biopharmaceutical services PPD Scott Lorimer
VP Global Operations Patheon Biologics Eugene
McNally PhD executive director PPD Consulting
Rekha Patel global director large molecules devel-
opment and analytical solutions Catalent Pharma
Solutions and Mark Rogers vice-president SGS
Life Science Services USA
RegulatoRy and business tRends
BioPharm What regulatory changes have positively or
negatively impacted biopharmaceutical development
manufacturing processes
Ad
am
Ga
ult
Ge
tty Im
ag
es
info_contractmanufacturingebsicom | 1 800 441 4225 | emergentcontractmanufacturingcom
Aseptic FillFinish
Pre-Clinical Development
BDSManufacture
Clinical amp Commerical
Lyo CycleDevelopment
Emergent BioSolutions has a proven track record as a world-class provider of contract manufacturing services for both bulk drug substances and sterile injectable drug products Our team has successfully launched 20 commercial products and developedmanufactured over 200 clinical candidates for our clients
Emerging Capability
State-of-the art flexible single-use facility enables turnkey upstream and downstream solutions for clinical and commercial scale biopharmaceutical drug development
Emergent Contract Manufacturing
Enhancing Life in Every Single Dose
14 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources CROCMO Viewpoints
McNally (PPD Consulting) FDA
establ ished a new Off ice of
Pharmaceutical Quality in 2014
which we anticipate will have major
impacts on the biopharmaceuti-
cal development and manufactur-
ing process This reorganization
was designed to enhance quality
drug assessment by realigning sev-
eral elements of the preapproval
and surveillance inspection pro-
cess Integrating risk-based review
GMP inspection implementation
of quality by design and the new
FDA process validation guidance
within one office is expected to
significantly change the biophar-
maceutical development and manu-
facturing process
H a r t z e l ( C a t a l e n t P h a r m a
Solutions) In todayrsquos market there
are significant manufacturing
challenges in traditional glass vial
filling applications These chal-
lenges manifest in quality issues
with the final container closure
and may be related to microbial
contamination glass particulates
and foreign materials that lead to
necessary market action causing
supply issues
Lorimer (Patheon Biologics) The
greatest regulatory change in recent
times is the acceptance and approval
of biosimilars
BioPharm What business trends
have posit ively or negatively
impacted biopharmaceutical devel-
opmentmanufacturing processes
H a r t z e l ( C a t a l e n t P h a r m a
Solutions) Today there is a stronger
emphasis in the development life-
cycle on the delivery of the mol-
ecule to the patient and not just
the molecule itself Deliverydevice
experts are being added to teams
at Phase II to improve the delivery
beyond the traditional vial
Lively (PPD) Growing interest
in biopharmaceutical drug devel-
opment necessitates partnering
between clients and contractors to
increase industry capacity breadth
of capabilities expertise and
the experience required to bring
these drugs to market The client
will receive the most benefit by
selecting a high-quality contract
research organization (CRO) lab
that is able to meet its needs and
work collaboratively with the cli-
ent to ensure timely development
Lorimer (Patheon Biologics) The
trend of small biotech partner-
ing with large pharma for clinical
manufacturing and development
has certainly facilitated the full
development of more novel mol-
ecules Also the increasing trend
toward outsourcing of GMP biolog-
ics manufacturing ensures biopro-
cessing and testing is performed
by expert manufacturers with
proven track records in quality and
biomanufacturing This helps to
reduce the risk to clinical programs
and product safety
technicalscientific tRendsBioPharm Can you describe pro-
ductivity improvements your com-
pany has experienced from new
technologies
Patel (Catalent Pharma Solutions)
Catalent Pharma Solutions has sig-
nificant ongoing investments in
enhancing our large-molecule ana-
lytical capabilities and productiv-
ity to meet and advance current
industry needs Recent invest-
ments include the updatednew
technologies new assay strategies
and updated electronic systems
and processes
Lively (PPD) Evolving character-
ization expectations for biologics
have driven improvements in ana-
lytical equipment processes and
systems Ultra performance liquid
chromatography (UPLC) systems
have improved resolution and sen-
sitivity while reducing run times
In addition 2D high-performance
liquid chromatography (HPLC)
high-resolution mass spectrom-
etry (MS) allows for analysis of
samples incompatible with tradi-
tional MS Reporter gene bioassays
apply genetically engineered cell
lines both to directly model mech-
anisms of action and to amplify
assays for improved performance
with shorter incubations and
increased signalnoise relative to
standard bioassays
Lorimer (Patheon Biologics) The
main productivity improvement
has been increasing the through-
put of products in Patheonrsquos mul-
tiproduct biopharmaceutical GMP
facilities Single-use disposable
bioreactors and similar single-use
bioprocess equipment minimize
plant downtime which is tradi-
tionally required for line clearance
and product changeover The com-
plexity of product changeovers is
reduced by single-use technology
which decreases the need for clean-
in-place steam-in-place and qual-
ity control testing Typically line
Approval of the first
biosimilar in the
United States as well
as consolidation in
the biopharma and
contract development
and manufacturing
markets are just
two indicators of the
ongoing evolution of
biopharmaceutical
development
YOUR PARTNER FROM CONCEPT TO COMMERCIAL
1
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bull Cell line characterization amp optimization
bull Subcloning
bull Suspension adaptation
PROCESS DEVELOPMENT
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bull Media optimization feeding strategyamp design including DoE approach
bull Downstream development ampoptimization
bull Process optimizationprocess scale-up
bull Viral inactivationremoval study design
bull Formulation development amp screening
bull Up to 100L controlled bioreactors
bull Process validation
ANALYTICAL METHODS DEVELOPMENT
bull Development feasibility optimizationtransfer qualification amp validation of methods
bull Identity purity potency safety ampcharacterization
cGMP BIOMANUFACTURING
bull Commercially-licensed facility
bull Flexible manufacturing capabilities
bull Stainless steel amp single-use systemsfrom 100L-1000L
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QUALITY AND REGULATORY SERVICES
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bull cGMP CMC Section 7 support
bull In-process amp release testing
bull Stability testing
bull Reference standard generation
For more information please visit us at wwwavidbiocom or
e-mail businessdevelopmentavidbiocom
THE AVID
ADVANTAGE
16 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources CROCMO Viewpoints
clearance time is reduced by sev-
eral days
R o g e r s ( S G S L i f e S c i e n c e
Services) As an analytical ser-
vice provider SGS is constantly
in search of means to improve
its laboratory efficiencies partic-
ularly those that enhance turn-
around time without adversely
effecting quality With this in
mind substitution of HPLC for
UPLC rapid microbiolog ica l
screening methods and invest-
ment in automated approaches to
complex analytical problems such
as protein sequencing are now
being used within the SGS labora-
tory network
Chambers (SGS) From a CRO
point of view the main produc-
tivity improvements in analytics
have been from higher through-
put systems and data analysis The
move to these faster systems with
semiautomated data processing has
allowed us to improve turnaround
times which are passed on to cli-
ents in terms who win on faster
to market times and faster gono
decisions
BioPharm What additional tech-
nology improvements are needed
to improve the efficiency of bio-
processing
Lorimer (Patheon Biologics)
Process analytical technology
(PAT) for continuous monitoring of
bioprocesses is helping reduce the
variability on biopharmaceutical
manufacturing
Also biopharmaceutical devel-
opment and process validation
have been accelerated by the use
of mini-bioreactor systems which
enable a large amount of process
development data to be gener-
ated within a very short timeline
These multi-bioreactor systems
can reduce process develop -
ment timelines by months when
applied to early-stage or late-stage
bioprocesses
Rogers (SGS Life Science Services)
The development of many tech-
nologies follows a common path
from academia to commercial
application and nowhere is this
more evident than in the field of
bioprocessing In almost all exam-
ples the key to this progression
lies in the ability to simplify opera-
tional aspects of the technology
and improve throughput This has
in the past been clearly demon-
strated in for example the field of
mass spectrometry and is currently
evolving with techniques involved
in biophysical characterization
BioPharm What is the greatest
technical challenge facing biophar-
maceutical companies today
Hartzel (Catalent Pharma Solutions)
Cost to manufacture will continue
to be a major challenge for the
industry especially with the rise
of biosimilars and market pressures
to drive down the cost of medi-
cines However the products that
are coming to market are more
targeted which leads to smaller
batch sizes This is counter to the
manufacturing adage of being able
to leverage economies of scale to
drive out costs hence the need to
focus on alternatives technologies
and innovation to reduce the man-
ufacturing costs versus economies
of scale
Lively (PPD) Application of ana-
lytical techniques to better char-
acterize innovator and biosimilar
or follow-on products by physico-
chemical and functional methods
are required and will continue to
be driven by the complexity of
biologics development For exam-
ple changes in formulations may
cause different leachable profiles
requiring increasing emphasis on
extractablesleachables techniques
(ie high-resolution MS) to sup-
port characterization of formu-
lation effects identification of
degradation and impurities and
determination of their potential
impact through application of
potency bioassays
Lorimer (Patheon Biologics) Most
of the technical challenges for
manufacturing have been over-
come and the technologies for
development and manufactur-
ing have been widely adopted
Perhaps the greatest challenge is in
clinical development of novel and
originator molecules where in-vitro
model systems are still not a great
predictor of clinical performance
Rogers (SGS Life Science Services)
To highlight one technical chal-
lenge above all others in todayrsquos
biopharmaceutical industry is
very difficult The complexity of
biotherapeutics often results in
considerable technical difficul-
ties as for example in the area
of impurities recognition of host-
cell proteins (HCPs) and identi-
fication of structural variants at
trace levels are certainly high on
the list of technical concerns The
necessary inclusion of relatively
elaborate analytical techniques
such as sedimentation velocity
analytical ultracentrifugation (SVndash
AUC) within a traditional qual-
ity control release environment is
also not without problems
BioPharm What are the pros-
pects for continuous manufac-
turing to be firmly established in
bioprocessing What are the road-
blocks to implementation
Lorimer (Patheon Biologics)
Continuous product ion f rom
mammalian cell cultures has been
operated in perfusion bioreactors
for many years The main road-
block for continuous processing is
downstream processing of proteins
which currently demands discrete
and distinct unit operations for
removal of impurities removal
of contaminants concentration
of the products and formulation
each in separate controlled steps
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NEXT GENERATION MEDIA PLATFORM
18 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources CROCMO Viewpoints
and which are not currently ame-
nable to continuous processing
the Rise of biosimilaRs
BioPharm What impact w i l l
biosimilar drugs have on bio-
pharma businesses bioprocessing
approaches and the contract ser-
vices market
Rogers (SGS Life Science Services)
The European biopharma land-
scape has already experienced
impact of the biosimilar drug mar-
ket leading to rapid expansion of
traditional small molecule generic
manufactures into the bio arena
Recent FDA approval of the Sandoz
biosimilar Zarixo may be the seed
for similar changes in the US pro-
viding a potential new line of busi-
ness for established pharmaceutical
companies Contract service pro-
viders such as SGS who already
have considerable experience with
biosimilars are able to offer exper-
tise to businesses new to this mar-
ket and will no doubt benefit from
such expansion in the US
Lively (PPD) Increased invest-
ment in biosimilars is driving
interest in improving and stream-
lining the development processes
as well as the sensitivity and scope
of characterization assays used to
compare biosimilars and innova-
tor drugs The expanding capac-
ity needs result in partnerships
between clients and their contrac-
tors with the systems experience
and expertise to achieve the qual-
ity and speed required while meet-
ing all regulatory expectations for
product approval
Chambers (SGS) With nearly
20 years exper ience perform-
ing biosimilar analysis the big-
gest impact had been the massive
increase in the characterization
needed for biosimilars compared
to innovators (although higher
standards are now needed for new
innovators too) This has resulted
CMOs Add Capabilities
Consolidation in the contract development and manufacturing market has resulted in new capabilities and facility expansions
In May 2015 CMC Biologics announced that it is expanding its Copenhagen Denmark facility to increase its manufacturing capacity through the installation of six 2000-L bioreactors The bioreactors can be run singly or in groups simultaneously or sequentially and are part of the companyrsquos signature Bioreactor 6Pack single-use program The Copenhagen installation will begin initial GMP production in November 2015 and will feature three bioreactors to start Three bioreactors will be added at a later date to complete the configuration Meanwhile the Bioreactor 6Pack at CMCrsquos Seattle facility will complete its first GMP run in mid-2015 and will be ready for commercial launch by the end of the year Through its recent expansions CMC plans to expand its global capacity by more than 30000 liters in the United States and Europe
Also in May 2015 SAFC announced an expansion to its St Louis MO facility to support the commercial-scale production of antibody-drug conjugates The facility which is expected to be online and operational in the third quarter of 2015 was designed to meet SafeBridge category 4 compound handling requirements for highly active or cytotoxic compounds The expansion of an existing Carlsbad CA location will enable SAFC to offer fillfinish capabilities of viral products to its clients in the gene therapy viral vaccine and immunotherapy sectors
Rentschler announced in March 2015 that a 2000-L bioreactor that the company commissioned and built in six months is up and running The bioreactor will be integrated into existing manufacturing suites containing two 1000-L single-use bioreactors according to a company statement The companyrsquos twin bioreactor systemmdashdesigned for running two main bioreactors in parallel with one shared downstream processing unitmdashwill be functional by 2017 The twin system is estimated to double the companyrsquos production capacities for cell culture-derived proteins
In December 2014 FUJIFILM Diosynth Biotechnologies USA (FDBU) acquired Kalon Biotherapeutics adding viral and cell-culture vaccine expertise and capabilities In other activity FDBU started construction of a three-story 62000-ft2 facility in Research Triangle Park NC in January 2015 to house the companyrsquos process and analytical research and development process sciences and stability groups The expected completion date is Q4 2015
In September 2014 PCI a provider of packaging services acquired Biotec Services International a provider of clinical-trial services and temperature-controlled pharmaceutical services headquartered in Bridgend Wales UK The addition expanded PCIrsquos presence in the European Union and added packaging storage and distribution capacity and consultative services for clinical-trial supplies In January 2015 Biotec announced the validation of its clinical supply facility expansion which added almost 50 to the companyrsquos clinical trial materials handling capacity
wwwbiopharminternationalcom June 2015 BioPharm International eBook 19
Outsourcing Resources CROCMO Viewpoints
in challenges in data handling
interpretation and data presenta-
tion Biosimilars have also caused
the re-emergence of orthogonal
techniques like size exclusion
chromatographyndashmulti-angle laser
light scattering (SEC-MALL) and
SV-AUC for aggregation and cir-
cular dichroism (CD) and fourier
transform infrared spectroscopy
(FTIR) for higher-order structure
as critical analyses to understand
and compare and detect subtle
higher-order structural differences
between innovator and biosimilar
samples
Hartzel (Catalent Pharma Solutions)
The rise of biosimilar drugs will
dawn the next generation of bio-
logic manufacturing and force
the industry to look at new ways
of manufacturing to drive down
costs Therefore the industry will
seek new manufacturing partners
with strong technical expertise to
drive out costs through innovation
and operational excellence
Lorimer (Patheon Biologics)
Genera l ly b ios imi la r d r ugs
will encourage competitiveness
within the biopharma sector
Biomanufacturers expect increased
pressure on cost of goods and
pricing Biopharmaceutical con-
tract service providers with a flex-
ible multi-product operation and
proven track record in the indus-
try are well placed to ensure care-
ful control of manufacturing costs
and product quality Processing
approaches wonrsquot change in terms
of technology but there will be a
greater emphasis on operational
excellence to reduce costly inef-
ficiencies and improve yields from
bioprocesses As more biosimilars
come to the forefront and as the
industry trend for outsourcing
continues increasing operational
flexibility while maintaining the
highest quality standards will be
the keys to success
business challenges
BioPharm What is the greatest
business challenge facing biophar-
maceutical companies today
Lively (PPD) As with all phar-
maceutical drug development the
greatest challenge is getting new
life-changing and potentially life-
saving drug candidates to mar-
ket Biopharmaceuticals face more
challenges than traditional small-
molecule drug products because
the science of characterization
of such biologic drugs is rapidly
evolving along with the regulatory
landscape Those companies that
are best able to successfully char-
acterize and differentiate innovator
and biosimilar products for safety
and efficacy will have the greatest
opportunity to benefit
the knowledge gap
BioPharm In what areas do you
see knowledge or expertise gaps in
current biopharmaceutical compa-
nies Why do these gaps exist
Lorimer (Patheon Biologics) There
is a gap in translating good sci-
ence to industrial applications of
technologies that provide for reli-
able efficient cost effective man-
ufacturing at commercial scale
Maintaining a focus during early
development on eventual commer-
cial manufacturing requirements
while balancing limited develop-
ment resources requires a broad
base of coordinated organiza-
tional skillsets and a disciplined
approach
Hartzel (Catalent Pharma Solutions)
Devicedelivery expertise is an
area that has a potential gap For
biologics the historic default con-
tainer closure has been a tradi-
tional glass vial As the healthcare
industry seeks ways to improve
patient care and reduce costs the
delivery to the patient needs to
adopt new technologies and this
is why we have seen a rise of pre-
filled syringes and autoinjectors
These technologies will continue
to evolve and so will the demand
for devicedelivery experts
Lively (PPD) One of the chal-
lenges we see is the various levels
of knowledge and expertise that
exist between biopharmaceutical
RampD and the testing and regula-
tory industries That differential is
impacting those industriesrsquo ability
to fully consider and effectively
implement expectations and guid-
ance for physicochemical and
functional characterization expec-
tations of biologic drugs
Lorimer (Patheon Biologics) The
commercial biopharmaceutical
industry demands global sourc-
ing of materials services supply
and ultimately distribution to each
patient This requires a robust inte-
grated supply chain to deliver high
value products to patients on-time
and at the right quality Doing this
reliably and efficiently with long
production lead times and uncer-
tain market sales forecasts is an
industry wide challenge
Speed-to-market remains a key
challenge to the development of
biopharmaceuticals Speedy first-
time-in-man clinical trials can be
a major hurdle for small biotech
companies and large pharma alike
Rogers (SGS Life Science Services)
I believe there continues to be a
significant problem in the level of
fundamental scientific expertise
within many biopharmaceutical
businesses In part this may be
attributed to the lsquokitrsquo and lsquoblack
boxrsquo approach of many modern
day technologies Due to the
complexity of many biopharma-
ceuticals their development and
success as therapeutics requires a
comprehensive range of scientific
disciplines and expertise which
can be difficult to fully realize
internally particularly for small
and mid-size companies bp
20 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources FillFinish
FillFinish Trends
Automation and disposables continue to reduce human error
Eric s LangEr
Fillfinish operations continue to be domi-
nated by trends in automation and the adop-
tion of single-use equipment But these are
by no means the only factors affecting these
high-value operations according to BioPlan
Associatesrsquo latest biomanufacturing study (1) Fill
finish processes are among the most outsourced
activities in biomanufacturing today and a service
providerrsquos capacity for vialing pre-filled devices
and lyophilization is crucial In a recently pub-
lished whitepaper (2) BioPlan Associates determined
that there is sufficient global in-house capacity
for biologics but the need continues to grow for
greater access to specialized outsourcing competence
Whatrsquos trending is significant improvements in auto-
mation and operations
AutomAtion And single use defining Cmo strAtegy
The top trends today involve automation and devel-
opment of better disposable technologies As part of
the BioPlan study biomanufacturers were asked to
select the trends they believe to be the most impor-
tant in fill and finish today The top three trends
are single-use equipment automation in full isolator
units and facilities becoming multi-product ori-
ented (see Figure 1)
Other important trends were noted including
bull Increased serialization and product labeling for
anti-counterfeiting
Eric s LangEr is president and managing partner at BioPlan Associates Inc elangerbioplanassociatescom tel 3019215979 wwwbioplanassociatescom
Ma
ria T
ou
tou
da
ki
Ge
tty Im
ag
es
WITH ALTHEA YOU HAVE THE POWER TO MAKE
You have the power to make a difference To make new therapeutics that improve quality of life and inspire a healthier world To do this you need a manufacturing partner who embraces your every challenge as its own who shares your unwavering tenacity and dedication from clinical studies through commercial success Thats The Power To Make
PLAY VIDEO
CONTRACT
MANUFACTURING
Q Development
Drug Substance
lj Drug Product
(D Al TH EA I THE POWER TO MAK A MEMBER OF THE AJINOMOTO GROUP
22 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources FillFinish
bull More f i l l f i n i sh fac i l i t ie s
o p e r a t i n g i n d e v e lo p i n g
regions
bull C o m p u t e r - b a s e d v i s u a l
i n s p e c t i o n a r t i f i c i a l
intelligence
bull Use of complex administration
systems
single-use equipment in fillfinish operAtionsT h e a d o p t i o n o f d i s p o s -
ab le e qu ipme nt i n f i l l f i n -
i s h o p e r a t i o n s e l i m i n a t e s
cross-contamination risks and
adds flexibility in process scale
While regulatory rest r ic t ions
may be increased by the adop-
tion of such equipment single-
use appl icat ions a lso enable
contract manufactur ing orga-
nizat ions (CMOs) to increase
fac i l i t y ut i l i z at ion t h rough
multi-product strategies which
can decrease their cost of goods
Experts in the f ield discussed
these trends
Peter Pekos CEO and president
of Dalton Pharma Services a fill
finish CMO says ldquoFor a CMO
disposables can be attractive hellip
For example a disposable isola-
tor can be packed and stored pre-
sterilized for use when needed
a f ixed isolator requires f ixed
space at all times Disposables
also allow a CMO to handle proj-
ects using specific systems for
non-typical project needs such
as disposable isolators without
going to the expense of buying
permanent isolator infrastruc-
ture Disposables do not obviate
the need for technical expertise
hellip so the need for a CMO isnrsquot
really reduced In fact CMOs
with expertise in single-use sys-
tems hellip can make them more
attractiverdquo
Mar t ina Fe r neman cor po -
rate development manager at
Recipharm bel ieves that the
adoption of single-usedispos-
able equipment is now impacting
f i l l and f inish ldquoIn mult ipur-
pose sites the cleaning proce-
dures will become more crucial
to avoid cross contamination
Single-use equipment [also] has
the advantage of shorter lead
t imes and lower procurement
costs Since no cleaning proce-
dure has to be established and
aseptic connections are easier to
be built-up the use of single-
use equipment is not only faster
but also safer than conventional
equipmentrdquo
AutomAtion in full isolAtor unitsW hi le s ing le -use equ ipment
adoption may be one of the hot-
test f i l lf inish trend automa-
tion technologies may actually
be experiencing more rapid rates
of implementation among bio-
manufacturers Indeed sepa-
rate results from BioPlanrsquos 12th
annual study suggest that the
industry wi l l be as l ikely to
implement automation technolo-
gies as they will use single-use
f i l l-f inish devices dur ing the
next 24 months
The removal of human factors
is a key to improving product
quality Isolators and automa-
tion are therefore key drivers
as facilities seek to improve their
i n f r a s t r u c t u r e I n nov a t io n
around equipment and facilities
able to handle multiple products
is going to continue Flexibility
is key as the reduced flexibility
of isolators (and higher cost) in
relation to traditional restricted
access barrier (RAB) systems may
deter some CMOs from adopt-
ing isolators The jury is st i l l
out because the decision fac-
tors between RAB and isolators
are complex and this tends to be
a high-cost decision often left
to the larger f illf inish CMOs
ldquoCMOs will adopt isolator tech-
nologies in their processes to
meet industry needs and reduce
r isk In some cases this wil l
also include disposable isolators
which can offer the benefits of
fixed isolators but add a degree
of f lexibil ity to the manufac-
turerrdquo Pekos notes
According to Ferneman adopt-
ing automat ion in ful l isola-
tor units to reduce the need for
operators is a trend seen in the
CMO market ldquoUse of barr ier
technology (RABS or isolators)
should ensure optimal protec-
t ion of ster i le areas Isolators
bear a better potential to prevent
biocontamination Since the iso-
lator is a closed system a lower
air quality than in RABS systems
can be usedrdquo For freeze-dried
products the RABS system is a
better choice because loading
has to be performed in class AB
surrounding
Fig
ur
e 1
is
co
ur
te
sy
oF
th
e a
ut
ho
r
Figure 1 selected bioprocessing fllfnish trends in 2015
Single-usedisposable equipment
adoption55
36
35Facilities becoming more multi-
product-use oriented
Automation in full isolator units
reduce need for operators
More compounds More accuratelyFaster than ever
Quantitation transformed
Todayrsquos range of possible therapeutic agents from small molecules to peptides to antibodies and
ADCrsquos makes quantitative bioanalysis a challenge Quantify potential therapeutics faster and more
accurately with our new portfolio of LC-MS instruments sample prep solutions and software HRAM
solutions using Thermo Scienti ctrade Orbitraptrade MS enables selectivity for complex molecules while
triple quadrupole MS delivers SRM sensitivity and speed to detect targeted compounds more quickly
Meet todayrsquos challenges with us and together wersquoll transform quantitative bioanalysis
Thermo Scienti ctrade Orbitrap Fusiontrade MSUnprecedented depth of analysis and
throughput for biological discovery
Thermo Scienti ctrade TSQ Quantivatrade MSLeading SRM sensitivity and speed
in a triple quadrupole MSMS
Thermo Scienti ctrade Q Exactivetrade MSScreen and quantify known and unknown targets with HRAM Orbitrap technology
copy 2
014
Ther
mo
Fish
er S
cien
tifi c
Inc
All
right
s re
serv
ed A
ll tr
adem
arks
are
th
e pr
oper
ty o
f The
rmo
Fish
er S
cien
tifi c
and
its
subs
idia
ries
bull Discover more at thermoscienti ccomquan-transformed
24 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources FillFinish
Cmos stAying
AheAd of the Curve
In the whitepaper on in-house
fillfinish operations for recom-
binant therapeutics (2) BioPlan
found relatively low average in-
house capacity utilization rates
for lyophilization (55) pre-filled
devices (58) and vialing (70)
This finding suggests that for fill
finish CMOs the real value isnrsquot
necessarily in providing additional
flexible capacity but rather in posi-
tioning themselves as providing
highly sophisticated and novel
technologies and expertise in fill
finish services Indeed CMOs are
expected to have state-of-the-art
equipment As Pekos notes ldquoCMOs
who implement flexible and inno-
vative technologies to make man-
ufacturing or development more
efficient faster compliant or more
economical all serve to make them
more attractive to customersrdquo
For CMOs that make use of
innovative fillfinish technologies
there appears to be a good deal
of demand Results from BioPlanrsquos
annual studies indicate that fill
finish services are among the most
widely and heavily outsourced
biomanufacturing activities today
and are also among the activities
that biomanufacturers are most
likely to outsource at significantly
higher levels in the future
Biomanufacturers and CMOs are
actively looking to their fillfin-
ish equipment suppliers and are
beginning to demand additional
new technologies innovation and
product development In 2014 for
example when the top areas that
biomanufacturers wanted their
suppliers to focus their develop-
ment efforts on were measured
fillfinish services topped the list
cited by 23 of biomanufacturers
Not only did that figure represent
a substantial increase from years
past (13 in 2011) but it was also
ahead of other services including
upstream and downstream process
development services
Fillfinish will continue
to be an area of
growth for CMOs
There are a number of areas in
which suppliers can add value to
fillfinish innovation according
to industry experts Jim Agalloco
president of Agalloco amp Associates
in Belle Mead NJ says ldquovendors of
equipment and components to fill
finish must continue their roles as
technology leaders Innovation in
this market has always been sup-
plier driven because the operating
firms do not have the necessary
expertise Collaboration between
equipment manufacturers and
component suppliers is essential
for implementation of new con-
tainer systems single-use dispos-
ables and other advancesrdquo
Ronald Malone senior principal
scientist at Novartis Vaccines says
ldquoBlow-fill-seal containerclosure
systems are beneficial for small-
volume parenterals However over-
all cost may still be higher per unit
than traditional vialstopper fill-
ing Vaccines and biologicals can
benefit from single-dose disposable
systems that drive down the cost
of the containerclosure system
This will assist the global supply to
developing world countries where
these products are truly neededrdquo
W B W i e d e r s e i m o f
PharmaBioSource in Wayne PA
states ldquoWe see smaller higher
technical facilities inclusive of dis-
posables (isolators and not RABS)
and advanced aseptic work cell
technology as the wave of the
futurerdquo
WhAt does the future hold
BioPlanrsquos survey data and indus-
try interviews indicate that fill
f inish will continue to be an
area of growth for CMOs that
maintain the required technical
quality and regulatory expertise
in this segment Experts have
taken note of CMOsrsquo introduc-
tion of smaller filling machines
for syringes or vials a trend that
may be in response to the indus-
try-wide move towards smaller-
scale manufactur ing projects
This shift may be accelerated by
the advent of biosimilars which
should provide an increasing
number of projects for fillfin-
ish CMOs although likely on a
smaller scale This increase in
projects could lead to potential
mergers and acquisitions with
some experts noting that fillfin-
ish CMOs are already engaging
in this trend toward larger capac-
ity and global operations
Indeed within the past 18
months a number of acquisi-
tions have occurred including
Pfizerrsquos acquisitions of Hospira
a nd In noPha r ma Pat heonrsquos
mergers in the contract services
space IDT Biolog ika invest-
ments Vet ter invest ing USD
$100 million to upgrade fill-fin-
ish facilities in the United States
a nd Ger ma ny a nd Ba xte r rsquos
investment in German facilities
and numerous others (3)
For CMOs to stay ahead of the
curve they will likely need to
continue to adopt disposables
technologies and advance their
automation in full isolators Ray
Cardin of PharMax Consulting
says ldquoIncreased use of dispos-
able pre-sterilized f illing tech-
nologies [are future trends] The
combination of these pre-ster-
ilized units with the coming of
age of ster i le connectors that
provide high sterility assurance
wwwbiopharminternationalcom June 2015 BioPharm International eBook 25
Outsourcing Resources FillFinish
Biologics Development and Manufacturing Trends Part II
Eric Langer Managing Partner BioPlan Associates talks about the results from BioPlan AssociatesOtilde 12th Annual Report and Survey of Biopharmaceutical Manufacturing Capacity and Production Langer discusses what respondents indicated as the number one trend in biologics manufacturing improving efficiencies and the biosimilars market
in less clean environments is
changing the way aseptic pro-
cesses are designedrdquo
Gordon Leichter PhD Eastern
r e g io n a l s a l e s m a n a ge r a t
Belimed in Charleston SC states
ldquoAutomat ion in fu l l i solators
wil l el iminate operator inter-
vention and laser-sealed vials
Automation will become more
integral to building automation
and enterprise systemsrdquo
Douglas Stockdale vice-presi-
dent CMCTechnical Operations
Hi l lhurst Biopharmaceut ica ls
Los Angeles CA says ldquoIndustry
will continue pushing the PAT
[process analytical technology]
envelope to f ind a lternat ive
methods to improve in-process
methodologies and processesrdquo
Fe r ne ma n add s ldquoCu r r e nt
trends in fillfinish innovation
will probably focus the market
authorization holders on a few
strategic products resulting in
outsourcing of a bigger share of
products overallrdquo
ConClusion
Until recently the handling of
ster i le l iquids in the pharma-
ceutical industry has relied on
relatively consistent techniques
during the past 100 years with
relatively slow changes in tech-
nologies and regulations result-
ing in incremental improvements
in safety efficiency and prod-
uct quality During the past 20
years however costly biologics
have taken a prominent indus-
try role The value of these drugs
can often be measured in tens of
thousands per dose This has put
greater pressure on these down-
stream fillfinish operations to
ensure quality safety and cost-
efficiency are not compromised
at this crucial late stage in manu-
facturing Trends in fillfinish for
recombinant therapeutics include
the increased use of isolator
technologies more high-speed
operations and other innovative
approaches including single-use
processing As a result of industry
research BioPlan expects more
outsourcing of fillfinish opera-
tions in coming years
referenCes 1 BioPlan Associates 12th Annual
Report and Survey of Biopharmaceutical
Manufacturing Capacity and Production
(Rockville MD April 2015) www
bioplanassociatescom
2 BioPlan Associates Trends in Aseptic
Bioprocessing Capacity for the Fill and
Finish of Recombinant Biologics An
Analysis of US and European In-house
Capacity and Capacity Utilization (BioPlan
Associates December 2014)
3 Information derived from BioPlan
Associatesrsquo BioFacilities Newsletters Bp
26 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Cell Therapy
Taking a ldquoDevelopment-by-Designrdquo
Approach to Cell Therapies
Whether outsourcing or developing cell therapies in-house success demands a focus on quality cost of goods
and sustainability from the start
Agnes shAnley
Cell therapies both autologous and allo-
geneic have come a long way in just a
few years Countries around the world
most recently Japan have passed regula-
tions designed to speed development of
these treatments which are now a big and growing
global business
In 2013 according to the Pharmaceutical Research
and Manufacturers Association 69 cell therapies six
of them autologous or patient-specific treatments
were in clinical trials or being reviewed in the United
States alone 15 of them in Phase III trials (1)
The road is littered with failures however often
in clinical stages This has been traced to problems
with manufacturing and failure to understand pro-
cess requirements earlier in the development process
Table I outlines manufacturing issues
As a growing number of Big Pharma companies
explore the potential for immune regenerative and
other cell therapies equipment manufacturers includ-
Agnes shAnley is senior editor of BioPharm International
SC
IEP
RO
GE
tt
y Im
aG
ES
wwwcytovancecomResponsive Reliable Resourceful
Your partner in biopharmaceutical contract manufacturing of therapeutic proteins and antibodies from mammalian cell culture and microbial fermentation
28 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Cell Therapy
ing Pall Corp EMD Millipore
and GE Biosystems have set up
centers of excellence to focus on
developing equipment for this
new market Engineering compa-
nies such as Invetech and Instrom
are developing equipment specific
to this niche
More CDMos are entering
Cell therapy Market niChe
Demand for spec ia l i zed ce l l
t he rapy ma nu fac t u r ing a nd
development serv ices is a lso
growing and has attracted Lonza
Bioservices Cognate BioServices
WuXi AppTech and Roslin Cells
among others
NeoStem is fol low ing t wo
paths pursuing its own cel l
therapy pipel ine and explor-
ing contract services through
its contract development and
manufac t u r ing organ i zat ion
(CDMO) subsidiary Progenitor
Cell Therapy (PCT) With bases
in Irvine and Mountain View CA
and Allendale NJ PCT is cur-
rently working with Intrexon and
Fibrocell on connective tissue
treatments and with the United
K ingdomrsquos Adapt immune on
oncology treatments
A new CEO David Mazzo with
a doctorate in analytical chemis-
try and experience running both
private and public international
biopharma companies assumed
NeoStemrsquos leadership in January
He sees no conflict between grow-
ing a pipeline and a contract man-
ufacturing business
ldquoWe are not trying to be two
di f ferent companies and we
do not see the two competing
with each otherrdquo says Mazzo
in an interview with BioPharm
Inte rnat ionalrsquos s i ster publ ica-
tion Pharmaceutical Technology
during his second week on the
job ldquoInstead there is a symbi-
otic relationship between themrdquo
As he sees it the companyrsquos
track record in developing prod-
ucts should attract more spon-
sors ldquoProblems in development
usually occur at the interfaces
Our unique experience of having
lsquodone that beforersquo should be help-
fulrdquo he says
In January PCT entered a
partnership with Invetech an
equipment design firm based in
Australia with offices in San Diego
to develop automated equipment
for cell therapy manufacturing Fig
ur
e 1
is
co
ur
te
sy
oF
in
ve
te
ch
Figure 1 Part of an automated solution being developed by neostem and invetech Automating processes is key to reducing costs
wwwbiopharminternationalcom June 2015 BioPharm International eBook 29
Outsourcing Resources Cell Therapy
The two companies have already
been working together for a year
now honing the design and speci-
fications for the instrumentation
says NeoStemrsquos Chief Scientific
Officer (CSO) Robert Preti The
equipment will tackle cell therapyrsquos
most challenging side autologous
treatments where the manufactur-
ing lot is the patient dose adminis-
tered at the patientrsquos bedside
As Preti notes there really isnrsquot
much available today in the way
of automated equipment for cell
therapy especially on the autolo-
gous side The equipment will sep-
arate and wash cells among other
functions
labor-intensive
proCesses aDD Cost
So far Preti says the company
is evaluating the evolving equip-
ment in NeoStemrsquos own manu-
facturing efforts ldquoOne of the
largest commercial bottlenecks
is the heavy labor required by
processes especially for patient-
specific uses where one batch is
one patientrdquo
The cost of goods i s ver y
high Preti says ldquoSuccess long-
term will require a whole new
approach to development The
goal is to provide high qual-
ity and sustainabilityrdquo he says
Removing manual operat ions
and human error from the pro-
cess will be crucial
Invetech has been work ing
on cell therapy process scale-up
automation for more than 10
years and has successfully com-
pleted projects in North America
Europe and Asia for companies
that include Argos Therapeutics
Aa s t rom CCR M Hu mac y te
Innovacell Janssen kSep Systems
MolMed Organovo and ViaCyte
accord ing to R ichard Grant
global VP of the companyrsquos bio-
pharma operations who has been
with the company for more than
14 years
ldquoThe goal is to develop a mix
of equipment and manufactur-
ing st rateg ies that maximize
quality scalability and sustain-
ability with an eye toward cost-
effect iveness and commercial
viabilityrdquo Grant says Invetechrsquos
solutions typically tailor a mix of
OEM and customized equipment
to the clientrsquos processes The com-
pany recently commercialized
equipment used to manufacture
Janssenrsquos macular degeneration
treatment
Costs of current manufactur-
ing processes for both autologous
and allogeneic therapies are dif-
ficult to peg Last year experts
at University College London
attempted to pinpoint the cost and
overall economics of allogeneic
cell therapy using single-use tech-
nologies (2)
What is clear for both alloge-
neic and autologous systems is
that cell therapy development
Table I Manufacturing scenarios for cell therapies
Attributes Off-the-shelf therapiesPatient-specifc
therapies
Source material Always allogeneic Autologous or matched allogeneic
Batch size Many patients One patient
Business model Similar to pharmabiopharma New
Scaling Scale up (Increased lot size) Scale out (Increased number of lots)
Comparability vs scale Higher concern Lower concern
Manufacturing design drivers
Mission critical success + +++
Optimized process yield +++ +
Dimensional efficiency ++ +-
Integration +- ++
Automation + ++
source invetech
Table II Measuring comparability risk
Risk level Example Timing
None Automated sterility test Before biologics license application
Low Change in process unit op and cell journey is the same
Before 50 accrual in pivotal trials
Medium Change in process unit op and cell journey is similar
Before initiation of pivotal clinical trials
High Change in process unit op and the cell journey is matched
Some Phase II clinical data
source invetech
30 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Cell Therapy
and manufacturing costs are cur-
rently prohibitive ldquoThe starting
points can vary dramaticallyrdquo
Grant says He recalls one cus-
tomer whose autologous process
ran to $80000 per patient in early
stage clinical trials Automation
he says could reduce costs by
40ndash90 depending on the ther-
apy involved
DevelopMent by Design
But before one can automate any
process one must understand it
NeoStem and PCT like a growing
number of companies are taking
the principle of quality by design
(QbD) to heart in their work
Mazzo arguably one of few
life-science company CEOs to
even articulate the QbD concept
explains that the company has
gone a step further and broadened
the International Conference on
Harmonization guidances adopted
by FDA into ldquodevelopment by
designrdquo (DbD)
ldquoWe say first consider the end-
point then take process as is and
understand its unit operations
Develop inputs and outputs and
discrete steps and define the pro-
cess in a way that promotes under-
standingrdquo he says
ldquoThis is challenging given prod-
uct complexity but there is a need
to understand the mechanism of
action very well so you put each
process in this overall envelope
of DbD and consider the cost of
goods scalability and sustainabil-
ityrdquo Preti adds ldquoYou consider the
process from the end only this
time each batch is an individual
patientrdquo
The critical part is defining and
measuring process needs he says
ldquoProduct definition is very impor-
tant particularly the quality target
product profilerdquo explains Brian
Hampson VP of manufacturing
development and engineering at
PCT in an Oct 22 2014 webcast
for the International Society for
Cell Therapy (3)
have the enD in MinD
Such t h ings a s for mulat ion
issues dosage potency impu-
rities residuals and microbial
assurance need to be thought out
clearly from the start Hampson
says as well as indications for
use geographic market projec-
tions cost-of-goods targets and
IP issues
The profile needs to be a liv-
ing document that changes as the
product takes shape Hampson
says There is a tendency for peo-
ple in the industry to ignore the
product profile until they have
all the answers says Hampson
ldquoInstead it needs to be developed
really early even when you donrsquot
have all or even many of the
answers hellip you can leave them
as blanks and continue to review
add to and updaterdquo
The result is not only a tool for
better understanding the prod-
uct process and mechanism of
action but a communication tool
for stakeholders
When to start DbD for cell ther-
apies ldquoThe temptation is to begin
later in the game when you need
reasonable COGS and you need
to be sure of sustainable manu-
facturingrdquo says Hampson ldquoThe
key thing is comparability and
anticipating its implications early
in the clinical program It needs
to be flexible at the early stagesrdquo
Hampson says ldquoBut as you near
Phase III you need to lock in your
equipment evolves
In the bioreactor area there is great interest in moving from 2-D to 3-D processing to enable the processing of the cell volumes required something that companies such as Israelrsquos Pluristem have been doing for some time
Equipment designer Instrom is partnering with companies including BRTI Life Sciences to focus on 3-D cell matrix technologies developed by Dr John Brekke EMD Millipore has been partnering with PharmaCell BV to use its Mobius bioreactor platform to expand and harvest HepRG cells GE Sciences is also evaluating Wave and other systems and set up a center of excellence in Wales recently
In other equipment areas Pall Corp has been partnering with CMDG LLC on cord blood processing technology Following are some of the equipment manufacturers and systems applied in cell therapy development and manufacturing
bull Beckman Coulter bull Corning Cell Stacks and Cell Cube
bull EMD Millipore bull GE Biosciences
bull Thermo Scientificrsquos Nunc Cell Factories bull Pall Corp
wwwbiopharminternationalcom June 2015 BioPharm International eBook 31
Outsourcing Resources Cell Therapy
processrdquo Table II summarizes issues
and points where changes will be
easier
Thus Hampson suggests that
companies whether work ing
with CDMOs or in house think
through such issues as cost of
goods scale and sustainabil-
ity much earlier than they typi-
cally do today ldquoYou donrsquot need to
spend money on these issues but
you do need to think about themrdquo
Hampson says ldquoQuality must be
a key issue even at Phase II trials
and early action pays off laterrdquo
In addition he suggests that
companies th ink about the
e nt i r e p r o c e s s c o mp r e he n -
sively ldquoThere is often a tendency
to focus on the core processing
stepsrdquo Hampson says ldquoBut you
really need to think about every-
thing from collection of mate-
rial through to administration
of product to the patient and all
steps in betweenrdquo
For ce l l therapies d ispos -
able equipment and closed pro-
cesses can be an effective way to
reduce costs and improve quality
and compliance ldquoThey can allow
you to isolate different processes
so that they can share a Class
100000 cleanroom environmentrdquo
Hampson says
ldquoInvesting in automated informa-
tion management can also pay offrdquo
he says ldquowhere an electronic batch
record system that is fully validated
can enable release-by-exception
reducing error documentation
time and overall quality assurance
costsrdquo Hampson says
In addition he notes it is
important to look at costs compre-
hensively an increase in one cost
can for example reduce overhead
improve process sustainability and
cost of goods Table III outlines the
issues
regulations evolve
Cell therapy is still a new area
for regulators and as Preti says
some guidelines are clear and oth-
ers arenrsquot ldquoDevelopment by design
is needed throughout the pro-
cess but the piece we still struggle
with the most is mode of action
(MOA) and product characteriza-
tion Regulatory agencies under-
stand that it is difficult to pinpoint
MOArdquo
Preti emphasizes the importance
of working with regulators ldquoYou
can be in a position to inform and
influence regulations as products
are developedrdquo he says
For any company moving into
this brave new world top-level ques-
tions are needed Preti says empha-
sizing the following ldquoDo you have
an understanding of scale Can you
scale up from very small Can you
characterize the process and control
it for reliability and qualityrdquo
In the stem cell area in particu-
lar this is crucial Preti said since
the product relies heavily on the
process ldquoManufacturing can be
thought of as patient administra-
tion It cannot be separated in
the same way that it can for tra-
ditional medicinesrdquo For contract
suppliers he adds demonstrated
success will be important and
sponsors should consider whether
a prospective partner will be able
to stay with them for the long run
referenCes 1 P Hourd et al Regulatory Challenges
for the Manufacture and Scale-
Out of Autologous Cell Therapies
Massachusetts General Hospital
(Cambridge MA 2013)
2 S Farid et al Biotechnol Bioeng
111(1) 69-83 (January 2014)
3 R Grant Building Deliverable Cell
Therapeutics A Methodical Approach
to Manufacturing Development
(Webinar Oct 22 2014) bp
source invetech
Justifcation driversChange in cost
doseDevelopment
estimate
Unit Op Ref
Change decription
Comparability risk
Quality COGs Scale Sustainability LaborMaterials outplant
Cost Time
P-2 Process change 1 Medium X X darr $ $$$ TT
P-3 Process change 2 High X X X darr $$$ $$$$ TTT
P-4 Process change 3 Low X X darr $$ $$ TTT
P-2 Process change 4 Low X $$ T
QC-4 In-house QC test None X TT
QA-1Electronic Batch
RecordNone X X X
darr $$$$
TTTT
Table III Process changes timing and comparability risks cogs is cost of goods Qc is quality control
32 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Intellectual Property
Protecting Intellectual Property
in Engagements with CMOs
Important IP contractual provisions should be included when working with CMOs
Jennifer L CoLLins
Biotechnology and pharmaceutical companies
often engage contract CMOs to assist with
the development of their drugs This type
of arrangement naturally involves the devel-
opment of intellectual property (IP) so it is
important for both the CMO and the sponsor to iden-
tify pre-existing intellectual property and also define
how rights to new IP will be allocated protected and
enforced by and between the companies
If the arrangement with the CMO is a traditional fee-
for-service arrangement where the company pays the
CMO service fees to perform development work on its
behalf then generally all new IP (other than improve-
ments to the CMOrsquos manufacturing technology) will be
owned by the biotechnology or pharmaceutical com-
pany that engaged the CMO On the other hand if the
arrangement between the CMO and the biotechnology
or pharmaceutical company is more of a collaborative
arrangement where both parties share the costs of devel-
opment as well as any profits from the commercializa-
tion then IP concerns become much more complicated
In that case in addition to describing which party will
Jennifer L CoLLins is a technology and licensing attorney with Morningstar Law Group jcollinsmorningstarlawgroupcom
Fa
na
tic S
tud
ioG
ett
y Im
ag
es
wwwbiopharminternationalcom June 2015 BioPharm International eBook 33
Outsourcing Resources Intellectual Property
own the new IP the contract should
sort out which party will be respon-
sible for obtaining and maintaining
patents on the new IP controlling
litigation against infringers and
defending the IP against challenges
In addition the parties should agree
upfront on how the IP may be used
by each party following various ter-
mination events so that the parties
are not left fighting about such mat-
ters at a time when they may not be
inclined to agree to anything
In both arrangements without
specific contractual provisions to
define and protect the new IP a
biotechnology company or phar-
maceutical company that uses a
CMO for development is at risk of
losing control of and possibly own-
ership of important improvements
to its drugs This article discusses
IP contractual provisions that
should be included in each type of
arrangement
Fee-For-service
development work
Traditionally CMOs perform fee-for-
service development work where
a biotechnology or pharmaceutical
company engages the CMO to per-
form this work for a fixed fee In this
type of arrangement the CMO is a
service provider and typically takes
no ownership interest in the drug or
product that is being developed or
in improvements to an existing drug
or product that is being tested or
developed The contract governing
the relationship nevertheless must
be clear about the IP rights that are
owned and licensed by each party
If the contract does not provide
for proper assignments of IP to the
biotechnology or pharmaceutical
company then it is likely that the
CMO will own any improvements
or other inventions that it develops
in the performance of the develop-
ment services even if that is not the
intent of the parties
Without signed written contracts
that state otherwise under United
States patent law the inventor of
a patentable invention or improve-
ment will own the invention or
improvement even if the inventor
is engaged to develop the invention
or the improvement for a customer
or other third party To ensure
that the biotechnology company or
pharmaceutical company obtains
all the patent and other IP rights
in developments inventions and
improvements created in the per-
formance of services by the CMO
the governing contract between the
biotechnology company or phar-
maceutical company and the CMO
must include written present assign-
ments of those IP rights from the
CMO to the company Indeed based
on recent cases it is crucial that the
assignment clause in the contract
be a ldquopresentrdquo assignment mean-
ing that it must state specifically
that the CMO ldquohereby assignshelliprdquo
rather than a clause stating that the
CMO ldquoagrees to assignrdquo rights in the
future Otherwise the contract will
be interpreted as a promise to assign
rights in the future and the bio
pharmaceutical company will have
to go back to the CMO at some later
point in time for a separate writ-
ten assignment of rights to obtain
all patent and other IP rights in the
developments
While it sounds logical and
straightforward that the CMO
would assign all inventions created
in the development work to its cus-
tomer it is not always that simple
in practice What if the CMO devel-
ops an improvement to its manu-
facturing process in the course of
the development work Most CMOs
will want to reserve ownership of
any improvements to the CMOrsquos
existing IP and confidential infor-
mation This position is not unrea-
sonable as long as the customer
ultimately has the rights it needs in
all new inventions including those
owned by the CMO to take the drug
forward through further develop-
ment and commercialization One
must sort out IP allocation by sub-
ject matter To achieve this allo-
cation the development contract
typically will state that each party
retains ownership of all IP that it
owns as of the date of the contract
(all pre-existing intellectual prop-
erty) It will also state that the cus-
tomer owns its proprietary drug
and all improvements to the drug
or the customerrsquos confidential infor-
mation developed by either or both
parties The development contract
also may state more generally that
the customer owns all inventions
improvements and IP rights related
to the customerrsquos drug With respect
to the CMO and its IP the develop-
ment contract may state that the
CMO owns all improvements to the
CMOrsquos manufacturing process and
to its other pre-existing intellectual
property Again this reservation is
not unreasonable The customer
however should determine whether
it requires access to those improve-
ments or inventions to complete the
development and commercialization
of its drug If such access is necessary
the customer should either negotiate
a license (which may be royalty-free
or royalty-based depending on the
circumstances) to use such improve-
ments or inventions to develop and
commercialize the drug or the cus-
tomer should negotiate the terms
under which the CMO will continue
to use the improvements or inven-
tions to perform development work
andor manufacture the drug for the
customer
In the fee-for-service arrange-
ment the assignment and licensing
of IP rights in new inventions and
improvements is the key intellectual
property issue Intellectual property
considerations become much more
complicated when the biotechnol-
34 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Intellectual Property
ogy or pharmaceutical company
partners with a CMO in the devel-
opment of a new drug or product
where the parties share development
costs and profits from commercial-
ization of the drug or product
cmo as collaborator
Although not as common as the
fee-for-service arrangement a CMO
may partner with a biotechnology
or pharmaceutical company in the
development and commercialization
of a drug or product Generally both
parties are bringing pre-existing IP
to the collaboration such as a drug
from a biopharmaceutical com-
pany and proprietary drug delivery
technology from the CMO In this
scenario the CMO is taking a long-
term interest and often a part-own-
ership interest in the success of the
drug product
Instead of getting paid an hourly
rate or fixed fee for development
work on the drug product the CMO
may share the cost of development
work with the biotechnology or
pharmaceutical partner in exchange
for a share of the profits when the
drug or product is commercialized
Other costs involved in the develop-
ment and commercialization of the
drug or product that may be shared
include the cost of patent prosecu-
tion and the cost of patent litigation
if the drug product is challenged or
if it is misappropriated or infringed
To secure its interest in the profits
from commercialization of the drug
product the CMO may want to take
an ownership interest in the intel-
lectual property rights in the drug
product All of these issues must be
carefully addressed in the develop-
ment contract to avoid both finan-
cial and IP disputes
As with the fee-for-serv ice
arrangement the parties must
allocate ownership of intellectual
property rights pertaining to the
drug product to be commercialized
These rights include both pre-exist-
ing IP rights and new inventions
and improvements developed in
the course of the development con-
tract As with the fee-for-service
arrangement the parties typically
will retain rights to their respec-
tive pre-existing IP Intellectual
property rights to new inventions
and improvements however may
be shared by giving each party a
co-ownership interest in the intel-
lectual property Alternatively such
rights may be allocated by inventor-
ship with each party taking owner-
ship of developments that it invents
and with the parties jointly own-
ing jointly developed inventions
As another alternative the IP rights
may be allocated by subject matter
as in the fee-for-service arrangement
with each party owning improve-
ments and inventions related to its
pre-existing IP regardless of which
party invents those improvements
and inventions
Depending on how the pat-
ent applications are drafted the
IP rights may be ldquosliced and dicedrdquo
more finely One party for example
could own patent rights for a drug
product for one indication while the
other party owns patent rights for
the same drug product for another
indication Decisions about how
to allocate the IP rights should be
made in consultation with intel-
lectual property counsel and must
take into account the manner in
which the drug will be commercial-
ized If one party for example is
to commercialize the product in
North America and Europe and
the other party is to commercialize
the product in the rest of the world
then either the patent ownership
should be allocated by territory or
the development contract should
include exclusive cross-licenses of
each partyrsquos rights in all the intel-
lectual property necessary to com-
mercialize the product with the first
party having an exclusive license to
commercialize the product in North
America and Europe and the second
party having an exclusive license to
commercialize the product in the
rest of the world
If the parties are going to share
ownership of the IP related to the
drug product then the develop-
ment contract also should specify
which party is responsible for pros-
ecuting and maintaining patents
on the drug product Regardless of
which party is responsible for patent
prosecution and maintenance the
other party should be consulted and
involved in key decisions regard-
ing patent prosecution and main-
tenance Unless there are multiple
patents for different indications that
will be commercialized exclusively
by one party and unless each party
has exclusive rights to commercial-
ize the drug product in particular
geographic areas it generally makes
sense for one party to take the pri-
mary responsibility for patent pros-
ecution and maintenance globally
with the other party consulting and
sharing in the cost of the prosecu-
tion and maintenance in accordance
with the profit sharing The party
that is not responsible for prosecu-
tion and maintenance should have
a contractual right to approve patent
counsel and review and approve pat-
ent filings office action responses
and other communications with
patent registries before they are filed
or submitted so that the parties
agree on the proper prosecution and
maintenance strategy
Likewise the development con-
tract should allocate the rights and
responsibilities for asserting and
defending the patents pertaining to
the product in litigation Often these
rights and responsibilities are allo-
cated by territory according to com-
mercialization rights If one party
for example has the exclusive right
to commercialize the drug product
wwwbiopharminternationalcom June 2015 BioPharm International eBook 35
Outsourcing Resources Intellectual Property
in the US then that party would
have the first right and responsibil-
ity to assert the patents on the drug
product against potential infringers
and defend the patents on the drug
product against infringement claims
in the US Likewise if one party has
the exclusive right to commercial-
ize the drug product for a particular
indication then that party would
have the first right and responsibility
to assert or defend the patents per-
taining to the product with respect
to that indication Both scenarios
can present challenges First some
courts will not recognize an exclu-
sive licensee as having standing to
assert a patent That court might
only allow the owner of the patent
(and not the exclusive licensee) to
bring a lawsuit asserting the patent
It is crucial therefore that contrac-
tual provisions relating to patent liti-
gation require the party that owns
the patent to cooperate in any litiga-
tion and to join the suit as a party if
necessary
Another potential problem is that
any litigation that asserts the pat-
ent is likely to draw a counterclaim
that the patent is invalid thus put-
ting the patent itself at risk of invali-
dation While one party might be
threatened by a potential infringer
in a particular market or for a partic-
ular indication and therefore might
want to assert the patent against the
potential infringer the other party
might not want to put the patent at
risk as to other markets and other
indications For these reasons the
contractual provisions pertaining
to patent litigation must be care-
fully drafted in consultation with
intellectual property counsel who
understands standing issues and
the potential areas for dispute The
contractual provisions also should
include dispute resolution provi-
sions for situations when the parties
do not agree on whether a patent
should be asserted
Finally while the parties may
want and expect their relationship
to continue for the full term of the
patents and the development con-
tract the parties must carefully
consider the IP ramifications of an
early termination of the develop-
ment contract and the relationship
particularly if the development con-
tract is terminated for breach If the
parties are sharing in the ownership
commercialization and profits gen-
erated by the drug product devel-
oped by the collaboration then
all of that must be unwound upon
termination The development
contract should be as specific as
possible with respect to the effect of
various types of termination on the
intellectual property and contin-
ued commercialization of the drug
product In particular the parties
may agree that if the development
contract is terminated due to breach
by one party then that breaching
party must relinquish and transfer
all of its rights with respect to the
drug product to the other party to
allow the non-breaching party to
continue the commercialization of
the drug product post-termination
Whether the necessary rights are
assigned or licensed whether the
terminated party should receive a
royalty for the transfer or license of
those rights and what if any pre-
existing IP is licensed to enable the
non-breaching party to continue
commercializing the drug product
are all key factors for negotiation
The development contract should
also address other types of termi-
nation such as termination for
insolvency and termination with-
out cause (ie if one party decides
it no longer wants to commercial-
ize the drug product) In each case
the effect of termination on the IP
rights should be carefully analyzed
and a competent IP counsel should
carefully draft post-termination
assignments and licenses
conclusion
While IP lawyers are not equipped
with crystal balls they can be
extremely helpful in analyzing par-
ticular development commercializa-
tion and post-termination scenarios
all of which affect IP in a drug devel-
opment arrangement Contractual
provisions related to IP must be
carefully drafted to align with the
strategic business objectives of any
relationship and particularly one
whose purpose is the development
and commercialization of intellec-
tual property Without a clear con-
tract each collaborator is at risk of
losing important rights bp
Ad Index
AJINOMOTO ALTHEA 21
AVID BIOSERVICES INC 15
CYTOVANCE BIOLOGICS 27
EMERGENT BIOSOLUTIONS 13
EUROFINS LANCASTER LABORATORIES 7
SAFC BIOSCIENCES SIGMA ALDRICH 17
THERMO FISHER SCIENTIFIC 23
TOSOH BIOSCIENCE 11
WATERS CORP 3
Company Page
![Page 8: OUOURT NG I C RESOURCESfiles.pharmtech.com/alfresco_images/pharma/2019/03/08/... · 2019-07-22 · VIDEO INTERVIEW Biologics Development and Manufacturing Trends: Part I ... Media](https://reader034.vdocuments.us/reader034/viewer/2022050113/5f4aca886c0d6724390eb040/html5/thumbnails/8.jpg)
8 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Quality Risk Management
Within the AHP hierarchy it is
important to establish the priori-
ties for each element Priorities
are the numbers associated with
the nodes to represent the rela-
tive weights of the nodes in any
group Similar to probabilities
priorities are absolute numbers
In executing the method criteria
are evaluated against the goal to
establish priority Similarly each
alternative is evaluated against
each criteria With these two ele-
ments complete the priority of
each alternative can be calcu-
lated against the goal to select
the appropriate contract develop-
ment and manufacturing organi-
zation (CDMO)
decision-tRee analysis
As a molecule passes the pre-
clinical development program
typically an organization will
evaluate the information to make
a gono-go decision to move the
program forward A tool that can
be useful in quantifying this
phase-gate decision is a decision
tree analysis a decision support
tool that uses a tree-like graph of
decisions and their possible con-
sequences including chance event
outcomes and resource costs
One area where a decision
tree has been a useful tool is in
biologic companies with a com-
bination-product development
program Some biologics may inte-
grate a device component such as
an auto-injector as opposed to
an IV delivery The advantage of
an auto-injector is that it is por-
table and able to deliver outside
a healthcare setting Quantifying
the organizat ionrsquos abi l ity to
develop and commercially support
a device component is a signifi-
cant program risk consideration
for many biotech companies
Choosing a contract manufacturer
with experience in devices and
drugs may drive down technical
and program risk but could com-
plicate the overall supply chain
With a decision-tree analysis an
organization can quantify the cost
of moving forward with each alter-
native while flagging uncertain-
ties One course of action may be
to address the uncertainties and
drive the likelihood of success to
an acceptable level before proceed-
ing with any program
AHP and decision-tree analy-
sis can be used anywhere in the
drug development process where
in-house manufacturing versus
outsourcing alternatives must be
evaluated
pReliMinaRy hazaRd analysis
In the United States Phase I
activities involve satisfying FDArsquos
latest expec tat ions in terms
of product design and process
under sta nd ing For mulat ion
selection is one of the first mile-
stones in a Phase I program A
pre l iminar y haza rd ana lysi s
(PHA) is typically performed early
in a program to identify known
hazards determine their causes
effects and probability and to
establish initial design and proce-
dural requirements to eliminate
or control them
While PHA can be used as an
early evaluation of any risk situ-
ation one effective application
of PHA is to evaluate the prod-
uct design from a patient safety
perspective as a precursor to pro-
Figure 4 Monoclonal antibody process train cause-and-effect matrix
Critical quality attributes (Risk level)
Preculture and expansion
Fermentation and harvest
CentrifugeCation exchange chromatography
Anion exchange chromatography
Viral filtrationConcentration
and diafiltration
Vial filling
Appearance (M)
Impurities (H)
Protein content (H)
Immunoreactivity (H)
Purity (H)
Bioburden (H)
In-process controls
Fill weight check (M)
Visual Inspection (M L)
Risk Key None Low Med High
wwwbiopharminternationalcom June 2015 BioPharm International eBook 9
Outsourcing Resources Quality Risk Management
cess design The PHA can use a
simple heat map of low medium
and high-severity assessments
An example of a partial PHA is
shown in Figure 3 Any evalu-
ation that results in a hazard
level of medium or high should
be included as part of the control
strategy for the process
pRocess cause-
and-effect MatRix
As the program moves into the
process design and scale up or
technology transfer activities a
cause-and-effects (CampE) analy-
sis is a simple and effective tool
to determine which unit opera-
tions impact the drug productrsquos
final critical quality attributes
(CQAs) These unit operations
could then focus on determin-
ing if there are critical control
parameters (CPPs) that impact
the final productrsquos CQAs If there
are CPPs present a f inal con-
trol strategy should ref lect the
potential risk of straying from
the process design space for that
unit operation An example of a
simple CampE analysis for a sim-
ple monoclonal antibody (mAb)
process train is given in Figure 4
The CampE matrix can assign val-
ues descriptors or in this case
integrate a heat map to commu-
nicate potential risk
failuRe Modes
and effects analysis
Failure modes and effects analy-
sis (FMEA) is a systematic pro-
active method for evaluating a
process to identify where and
how it might fail and to assess
the relat ive impact of d i f fer-
ent failures It is used to iden-
tify the parts of the process that
represent the greatest risk to the
productrsquos performance FMEAs
are one of the most commonly
used risk analysis tools used in
the biopharma industry today
FMEAs are based upon risk rank-
ing tables that provide a com-
mon definition for ranking the
severity of a failure and the like-
lihood of occurrence These are
typically ranked on a scale of 1
to 10 then multiplied together
to give a r isk priority number
(RPN) For FMEAs that do not
intend to address potential fail-
ure modes dur ing the design
activity such as process FMEAs
an additional evaluation cate-
gorymdashProbability of Detectionmdash
is used It is not unusual for an
FMEA to generate a large num-
ber of potential failure modes
FMEAs can be effective as part of
deviation and corrective and pre-
ventive action (CAPA) root cause
investigations as a structured
tool for identifying and demon-
strating a true root cause for a
non-conformance
Risk Ranking and filteRing
Risk ranking and filtering (RRF)
is a common facilitation method
used for risk management and
is also known as relative r isk
ranking risk indexing and risk
matrix and filtering The intent
is to provide sharper focus to the
critical risks within a systemmdash
typically from a large and com-
plex set of risk scenarios RRF
works by breaking down overall
r isk into risk components and
evaluat ing those components
and their individual contribu-
tions to overall risk RRF is most
suited to comparing and manag-
ing a portfolio of complex risks
RRF like all risk-assessment tools
requires agreed-upon sets of risk
factors and evaluation criteria
RRF provides a means to priori-
tize and filter individual risks
by combining the evaluations of
risk components against set cri-
teria into a single risk score
Applying RRF requires identi-
fying the primary risk question
then defining the head topics
and subtopics An example of
a CDMO audit risk assessment
structure is shown in Figure 5
Figure 5 Risk ranking and fltering (RRF) outsourcing example structure
Risk question
Subtopics
Head topics
What should the audit frequency be at the CDMO to ensure GMP compliance
Engineering
Calibration Manufacturing
Labeling
Supplier
Storage
Changecontrol
Batch release
Deviations
Corrective and
preventive actions
Validation
Packaging
QC testing
Maintenance
Operations ComplianceSupplychain
10 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Quality Risk Management
Biologics Development and Manufacturing Trends Part I
Eric Langer Managing Partner BioPlan Associates talks about the results from BioPlan Associatesrsquo 12th Annual Report and Survey of Biopharmaceutical Manufacturing Capacity and Production Trends in downstream processing protein A and single-use technology are discussed in Part I of this discussion For a discussion on productivity trends and biosimilars see Part II of the interview on page 25
With this structure in place
each risk can be assessed against
the probabil ity of occurrence
and severity impact and summa-
rized in a simple heat map
Risk-adjusted
net pResent value
For those decision milestones
that require investment in capi-
tal or resources a risk-adjusted
net present value (rNPV) is a
more acc urate method than
convent iona l N PV a na ly se s
for communicat ing the t r ue
cost of an investment decision
rNPV is sometimes referred to
as expected NPV (eNPV) rNPV
modifies the standard NPV cal-
cu lat ion of d iscounted cash-
f low analysis by mult iply ing
each cash flow by the estimated
probability that it occurs (the
estimated success rate) In the
language of probability theory
the rNPV is the expected value
rNPV is the standard valuation
method in the drug development
industry where sufficient data
exists to estimate success rates
for all RampD phases
conclusion
Biopharmaceutical products and
processes figure among the most
complex drug development life-
cycles within the industry A
structured QRM program that
integ rates s t anda rd i zed r i sk
assessment tools as part of the
overa l l product development
program can highlight the criti-
cal technical compliance and
regulatory risks when consider-
ing an outsourcing service pro-
vider The application of simple
QRM tools will provide structure
to the decision-making and eval-
uation process and when com-
bined with a simple knowledge
management framework provide
a foundation for all future prod-
uct programs Insight into the
risk and mitigation strategies can
reduce a programrsquos risk profile
significantly
RefeRences 1 ICH Q9 Quality Risk Management
(2005)
2 ICH Q5A-Q5E Quality of
Biotechnological Products
3 ICH Q8 Pharmaceutical Development
(2009)
4 Parenteral Drug Associates
Technical Report 42 Process
Validation for Protein Manufacturing
(2005) Bp
wwwtosohbiosciencecom
Tosoh Bioscience and TOYOPEARL are registered trademarks of Tosoh Corporation
Every mAb is unique
Your Protein A should be as well
TOSOH BIOSCIENCE LLC bull Customer service 866-527-3587 bull Technical service 800-366-4875 option 3
TOYOPEARLreg AF-rProtein A HC-650FHigh Capacity Protein A Resin for Monoclonal Antibody Purifi cation
0
10
20
30
40
50
60
70
80
2 35 5
Residence time (minutes)
DBC
for I
gG (g
L)
1 gL
5 gL
10 gLResin TOYOPEARL AF-rProtein A HC-650FColumn size 5 mm ID times 5 cmMobile phase 002 molL sodium phosphate 015 molL NaCl pH 74Residence time 2 35 5 minDetection UV 280 nm (10 breakthrough)Sample human IgG 1 5 10 gL in mobile phase
12 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources CROCMO Viewpoints
Biopharma Advances
Demand Specialized Expertise
Contract service providers share insights on biopharma market developments and the implications of biosimilar drug approvals
The ediTors of Biopharm international
The approval of the first biosimilar in the
United States as well as continuing consolida-
tion in the biopharma and contract develop-
ment and manufacturing markets are just
two indicators of the ongoing evolution of
biopharmaceutical development Representatives of
contract service providers shared observations trends
and projections with BioPharm International
Roundtable participants are Gary Chambers busi-
ness manager biopharma labs Europe SGS Bill
Hartzel director of strategic execution Catalent
Pharma Solutions Chris R Lively PhD director of
biopharmaceutical services PPD Scott Lorimer
VP Global Operations Patheon Biologics Eugene
McNally PhD executive director PPD Consulting
Rekha Patel global director large molecules devel-
opment and analytical solutions Catalent Pharma
Solutions and Mark Rogers vice-president SGS
Life Science Services USA
RegulatoRy and business tRends
BioPharm What regulatory changes have positively or
negatively impacted biopharmaceutical development
manufacturing processes
Ad
am
Ga
ult
Ge
tty Im
ag
es
info_contractmanufacturingebsicom | 1 800 441 4225 | emergentcontractmanufacturingcom
Aseptic FillFinish
Pre-Clinical Development
BDSManufacture
Clinical amp Commerical
Lyo CycleDevelopment
Emergent BioSolutions has a proven track record as a world-class provider of contract manufacturing services for both bulk drug substances and sterile injectable drug products Our team has successfully launched 20 commercial products and developedmanufactured over 200 clinical candidates for our clients
Emerging Capability
State-of-the art flexible single-use facility enables turnkey upstream and downstream solutions for clinical and commercial scale biopharmaceutical drug development
Emergent Contract Manufacturing
Enhancing Life in Every Single Dose
14 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources CROCMO Viewpoints
McNally (PPD Consulting) FDA
establ ished a new Off ice of
Pharmaceutical Quality in 2014
which we anticipate will have major
impacts on the biopharmaceuti-
cal development and manufactur-
ing process This reorganization
was designed to enhance quality
drug assessment by realigning sev-
eral elements of the preapproval
and surveillance inspection pro-
cess Integrating risk-based review
GMP inspection implementation
of quality by design and the new
FDA process validation guidance
within one office is expected to
significantly change the biophar-
maceutical development and manu-
facturing process
H a r t z e l ( C a t a l e n t P h a r m a
Solutions) In todayrsquos market there
are significant manufacturing
challenges in traditional glass vial
filling applications These chal-
lenges manifest in quality issues
with the final container closure
and may be related to microbial
contamination glass particulates
and foreign materials that lead to
necessary market action causing
supply issues
Lorimer (Patheon Biologics) The
greatest regulatory change in recent
times is the acceptance and approval
of biosimilars
BioPharm What business trends
have posit ively or negatively
impacted biopharmaceutical devel-
opmentmanufacturing processes
H a r t z e l ( C a t a l e n t P h a r m a
Solutions) Today there is a stronger
emphasis in the development life-
cycle on the delivery of the mol-
ecule to the patient and not just
the molecule itself Deliverydevice
experts are being added to teams
at Phase II to improve the delivery
beyond the traditional vial
Lively (PPD) Growing interest
in biopharmaceutical drug devel-
opment necessitates partnering
between clients and contractors to
increase industry capacity breadth
of capabilities expertise and
the experience required to bring
these drugs to market The client
will receive the most benefit by
selecting a high-quality contract
research organization (CRO) lab
that is able to meet its needs and
work collaboratively with the cli-
ent to ensure timely development
Lorimer (Patheon Biologics) The
trend of small biotech partner-
ing with large pharma for clinical
manufacturing and development
has certainly facilitated the full
development of more novel mol-
ecules Also the increasing trend
toward outsourcing of GMP biolog-
ics manufacturing ensures biopro-
cessing and testing is performed
by expert manufacturers with
proven track records in quality and
biomanufacturing This helps to
reduce the risk to clinical programs
and product safety
technicalscientific tRendsBioPharm Can you describe pro-
ductivity improvements your com-
pany has experienced from new
technologies
Patel (Catalent Pharma Solutions)
Catalent Pharma Solutions has sig-
nificant ongoing investments in
enhancing our large-molecule ana-
lytical capabilities and productiv-
ity to meet and advance current
industry needs Recent invest-
ments include the updatednew
technologies new assay strategies
and updated electronic systems
and processes
Lively (PPD) Evolving character-
ization expectations for biologics
have driven improvements in ana-
lytical equipment processes and
systems Ultra performance liquid
chromatography (UPLC) systems
have improved resolution and sen-
sitivity while reducing run times
In addition 2D high-performance
liquid chromatography (HPLC)
high-resolution mass spectrom-
etry (MS) allows for analysis of
samples incompatible with tradi-
tional MS Reporter gene bioassays
apply genetically engineered cell
lines both to directly model mech-
anisms of action and to amplify
assays for improved performance
with shorter incubations and
increased signalnoise relative to
standard bioassays
Lorimer (Patheon Biologics) The
main productivity improvement
has been increasing the through-
put of products in Patheonrsquos mul-
tiproduct biopharmaceutical GMP
facilities Single-use disposable
bioreactors and similar single-use
bioprocess equipment minimize
plant downtime which is tradi-
tionally required for line clearance
and product changeover The com-
plexity of product changeovers is
reduced by single-use technology
which decreases the need for clean-
in-place steam-in-place and qual-
ity control testing Typically line
Approval of the first
biosimilar in the
United States as well
as consolidation in
the biopharma and
contract development
and manufacturing
markets are just
two indicators of the
ongoing evolution of
biopharmaceutical
development
YOUR PARTNER FROM CONCEPT TO COMMERCIAL
1
42
5
3CELL LINE DEVELOPMENT
bull Cell line development amp selection
bull Cell line characterization amp optimization
bull Subcloning
bull Suspension adaptation
PROCESS DEVELOPMENT
bull Upstream development amp optimization
bull Media optimization feeding strategyamp design including DoE approach
bull Downstream development ampoptimization
bull Process optimizationprocess scale-up
bull Viral inactivationremoval study design
bull Formulation development amp screening
bull Up to 100L controlled bioreactors
bull Process validation
ANALYTICAL METHODS DEVELOPMENT
bull Development feasibility optimizationtransfer qualification amp validation of methods
bull Identity purity potency safety ampcharacterization
cGMP BIOMANUFACTURING
bull Commercially-licensed facility
bull Flexible manufacturing capabilities
bull Stainless steel amp single-use systemsfrom 100L-1000L
bull FDA EU amp ANVISA inspected
QUALITY AND REGULATORY SERVICES
bull Regulatory strategy amp submissions
bull cGMP CMC Section 7 support
bull In-process amp release testing
bull Stability testing
bull Reference standard generation
For more information please visit us at wwwavidbiocom or
e-mail businessdevelopmentavidbiocom
THE AVID
ADVANTAGE
16 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources CROCMO Viewpoints
clearance time is reduced by sev-
eral days
R o g e r s ( S G S L i f e S c i e n c e
Services) As an analytical ser-
vice provider SGS is constantly
in search of means to improve
its laboratory efficiencies partic-
ularly those that enhance turn-
around time without adversely
effecting quality With this in
mind substitution of HPLC for
UPLC rapid microbiolog ica l
screening methods and invest-
ment in automated approaches to
complex analytical problems such
as protein sequencing are now
being used within the SGS labora-
tory network
Chambers (SGS) From a CRO
point of view the main produc-
tivity improvements in analytics
have been from higher through-
put systems and data analysis The
move to these faster systems with
semiautomated data processing has
allowed us to improve turnaround
times which are passed on to cli-
ents in terms who win on faster
to market times and faster gono
decisions
BioPharm What additional tech-
nology improvements are needed
to improve the efficiency of bio-
processing
Lorimer (Patheon Biologics)
Process analytical technology
(PAT) for continuous monitoring of
bioprocesses is helping reduce the
variability on biopharmaceutical
manufacturing
Also biopharmaceutical devel-
opment and process validation
have been accelerated by the use
of mini-bioreactor systems which
enable a large amount of process
development data to be gener-
ated within a very short timeline
These multi-bioreactor systems
can reduce process develop -
ment timelines by months when
applied to early-stage or late-stage
bioprocesses
Rogers (SGS Life Science Services)
The development of many tech-
nologies follows a common path
from academia to commercial
application and nowhere is this
more evident than in the field of
bioprocessing In almost all exam-
ples the key to this progression
lies in the ability to simplify opera-
tional aspects of the technology
and improve throughput This has
in the past been clearly demon-
strated in for example the field of
mass spectrometry and is currently
evolving with techniques involved
in biophysical characterization
BioPharm What is the greatest
technical challenge facing biophar-
maceutical companies today
Hartzel (Catalent Pharma Solutions)
Cost to manufacture will continue
to be a major challenge for the
industry especially with the rise
of biosimilars and market pressures
to drive down the cost of medi-
cines However the products that
are coming to market are more
targeted which leads to smaller
batch sizes This is counter to the
manufacturing adage of being able
to leverage economies of scale to
drive out costs hence the need to
focus on alternatives technologies
and innovation to reduce the man-
ufacturing costs versus economies
of scale
Lively (PPD) Application of ana-
lytical techniques to better char-
acterize innovator and biosimilar
or follow-on products by physico-
chemical and functional methods
are required and will continue to
be driven by the complexity of
biologics development For exam-
ple changes in formulations may
cause different leachable profiles
requiring increasing emphasis on
extractablesleachables techniques
(ie high-resolution MS) to sup-
port characterization of formu-
lation effects identification of
degradation and impurities and
determination of their potential
impact through application of
potency bioassays
Lorimer (Patheon Biologics) Most
of the technical challenges for
manufacturing have been over-
come and the technologies for
development and manufactur-
ing have been widely adopted
Perhaps the greatest challenge is in
clinical development of novel and
originator molecules where in-vitro
model systems are still not a great
predictor of clinical performance
Rogers (SGS Life Science Services)
To highlight one technical chal-
lenge above all others in todayrsquos
biopharmaceutical industry is
very difficult The complexity of
biotherapeutics often results in
considerable technical difficul-
ties as for example in the area
of impurities recognition of host-
cell proteins (HCPs) and identi-
fication of structural variants at
trace levels are certainly high on
the list of technical concerns The
necessary inclusion of relatively
elaborate analytical techniques
such as sedimentation velocity
analytical ultracentrifugation (SVndash
AUC) within a traditional qual-
ity control release environment is
also not without problems
BioPharm What are the pros-
pects for continuous manufac-
turing to be firmly established in
bioprocessing What are the road-
blocks to implementation
Lorimer (Patheon Biologics)
Continuous product ion f rom
mammalian cell cultures has been
operated in perfusion bioreactors
for many years The main road-
block for continuous processing is
downstream processing of proteins
which currently demands discrete
and distinct unit operations for
removal of impurities removal
of contaminants concentration
of the products and formulation
each in separate controlled steps
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CELL CULTUREPERFORMANCE
copy2015 Sigma-Aldrich Co LLC All rights reserved Sigma-Aldrich SAFC and EX-CELL are trademarks of Sigma-Aldrich Co LLC registered in the US and other countries
NEXT GENERATION MEDIA PLATFORM
18 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources CROCMO Viewpoints
and which are not currently ame-
nable to continuous processing
the Rise of biosimilaRs
BioPharm What impact w i l l
biosimilar drugs have on bio-
pharma businesses bioprocessing
approaches and the contract ser-
vices market
Rogers (SGS Life Science Services)
The European biopharma land-
scape has already experienced
impact of the biosimilar drug mar-
ket leading to rapid expansion of
traditional small molecule generic
manufactures into the bio arena
Recent FDA approval of the Sandoz
biosimilar Zarixo may be the seed
for similar changes in the US pro-
viding a potential new line of busi-
ness for established pharmaceutical
companies Contract service pro-
viders such as SGS who already
have considerable experience with
biosimilars are able to offer exper-
tise to businesses new to this mar-
ket and will no doubt benefit from
such expansion in the US
Lively (PPD) Increased invest-
ment in biosimilars is driving
interest in improving and stream-
lining the development processes
as well as the sensitivity and scope
of characterization assays used to
compare biosimilars and innova-
tor drugs The expanding capac-
ity needs result in partnerships
between clients and their contrac-
tors with the systems experience
and expertise to achieve the qual-
ity and speed required while meet-
ing all regulatory expectations for
product approval
Chambers (SGS) With nearly
20 years exper ience perform-
ing biosimilar analysis the big-
gest impact had been the massive
increase in the characterization
needed for biosimilars compared
to innovators (although higher
standards are now needed for new
innovators too) This has resulted
CMOs Add Capabilities
Consolidation in the contract development and manufacturing market has resulted in new capabilities and facility expansions
In May 2015 CMC Biologics announced that it is expanding its Copenhagen Denmark facility to increase its manufacturing capacity through the installation of six 2000-L bioreactors The bioreactors can be run singly or in groups simultaneously or sequentially and are part of the companyrsquos signature Bioreactor 6Pack single-use program The Copenhagen installation will begin initial GMP production in November 2015 and will feature three bioreactors to start Three bioreactors will be added at a later date to complete the configuration Meanwhile the Bioreactor 6Pack at CMCrsquos Seattle facility will complete its first GMP run in mid-2015 and will be ready for commercial launch by the end of the year Through its recent expansions CMC plans to expand its global capacity by more than 30000 liters in the United States and Europe
Also in May 2015 SAFC announced an expansion to its St Louis MO facility to support the commercial-scale production of antibody-drug conjugates The facility which is expected to be online and operational in the third quarter of 2015 was designed to meet SafeBridge category 4 compound handling requirements for highly active or cytotoxic compounds The expansion of an existing Carlsbad CA location will enable SAFC to offer fillfinish capabilities of viral products to its clients in the gene therapy viral vaccine and immunotherapy sectors
Rentschler announced in March 2015 that a 2000-L bioreactor that the company commissioned and built in six months is up and running The bioreactor will be integrated into existing manufacturing suites containing two 1000-L single-use bioreactors according to a company statement The companyrsquos twin bioreactor systemmdashdesigned for running two main bioreactors in parallel with one shared downstream processing unitmdashwill be functional by 2017 The twin system is estimated to double the companyrsquos production capacities for cell culture-derived proteins
In December 2014 FUJIFILM Diosynth Biotechnologies USA (FDBU) acquired Kalon Biotherapeutics adding viral and cell-culture vaccine expertise and capabilities In other activity FDBU started construction of a three-story 62000-ft2 facility in Research Triangle Park NC in January 2015 to house the companyrsquos process and analytical research and development process sciences and stability groups The expected completion date is Q4 2015
In September 2014 PCI a provider of packaging services acquired Biotec Services International a provider of clinical-trial services and temperature-controlled pharmaceutical services headquartered in Bridgend Wales UK The addition expanded PCIrsquos presence in the European Union and added packaging storage and distribution capacity and consultative services for clinical-trial supplies In January 2015 Biotec announced the validation of its clinical supply facility expansion which added almost 50 to the companyrsquos clinical trial materials handling capacity
wwwbiopharminternationalcom June 2015 BioPharm International eBook 19
Outsourcing Resources CROCMO Viewpoints
in challenges in data handling
interpretation and data presenta-
tion Biosimilars have also caused
the re-emergence of orthogonal
techniques like size exclusion
chromatographyndashmulti-angle laser
light scattering (SEC-MALL) and
SV-AUC for aggregation and cir-
cular dichroism (CD) and fourier
transform infrared spectroscopy
(FTIR) for higher-order structure
as critical analyses to understand
and compare and detect subtle
higher-order structural differences
between innovator and biosimilar
samples
Hartzel (Catalent Pharma Solutions)
The rise of biosimilar drugs will
dawn the next generation of bio-
logic manufacturing and force
the industry to look at new ways
of manufacturing to drive down
costs Therefore the industry will
seek new manufacturing partners
with strong technical expertise to
drive out costs through innovation
and operational excellence
Lorimer (Patheon Biologics)
Genera l ly b ios imi la r d r ugs
will encourage competitiveness
within the biopharma sector
Biomanufacturers expect increased
pressure on cost of goods and
pricing Biopharmaceutical con-
tract service providers with a flex-
ible multi-product operation and
proven track record in the indus-
try are well placed to ensure care-
ful control of manufacturing costs
and product quality Processing
approaches wonrsquot change in terms
of technology but there will be a
greater emphasis on operational
excellence to reduce costly inef-
ficiencies and improve yields from
bioprocesses As more biosimilars
come to the forefront and as the
industry trend for outsourcing
continues increasing operational
flexibility while maintaining the
highest quality standards will be
the keys to success
business challenges
BioPharm What is the greatest
business challenge facing biophar-
maceutical companies today
Lively (PPD) As with all phar-
maceutical drug development the
greatest challenge is getting new
life-changing and potentially life-
saving drug candidates to mar-
ket Biopharmaceuticals face more
challenges than traditional small-
molecule drug products because
the science of characterization
of such biologic drugs is rapidly
evolving along with the regulatory
landscape Those companies that
are best able to successfully char-
acterize and differentiate innovator
and biosimilar products for safety
and efficacy will have the greatest
opportunity to benefit
the knowledge gap
BioPharm In what areas do you
see knowledge or expertise gaps in
current biopharmaceutical compa-
nies Why do these gaps exist
Lorimer (Patheon Biologics) There
is a gap in translating good sci-
ence to industrial applications of
technologies that provide for reli-
able efficient cost effective man-
ufacturing at commercial scale
Maintaining a focus during early
development on eventual commer-
cial manufacturing requirements
while balancing limited develop-
ment resources requires a broad
base of coordinated organiza-
tional skillsets and a disciplined
approach
Hartzel (Catalent Pharma Solutions)
Devicedelivery expertise is an
area that has a potential gap For
biologics the historic default con-
tainer closure has been a tradi-
tional glass vial As the healthcare
industry seeks ways to improve
patient care and reduce costs the
delivery to the patient needs to
adopt new technologies and this
is why we have seen a rise of pre-
filled syringes and autoinjectors
These technologies will continue
to evolve and so will the demand
for devicedelivery experts
Lively (PPD) One of the chal-
lenges we see is the various levels
of knowledge and expertise that
exist between biopharmaceutical
RampD and the testing and regula-
tory industries That differential is
impacting those industriesrsquo ability
to fully consider and effectively
implement expectations and guid-
ance for physicochemical and
functional characterization expec-
tations of biologic drugs
Lorimer (Patheon Biologics) The
commercial biopharmaceutical
industry demands global sourc-
ing of materials services supply
and ultimately distribution to each
patient This requires a robust inte-
grated supply chain to deliver high
value products to patients on-time
and at the right quality Doing this
reliably and efficiently with long
production lead times and uncer-
tain market sales forecasts is an
industry wide challenge
Speed-to-market remains a key
challenge to the development of
biopharmaceuticals Speedy first-
time-in-man clinical trials can be
a major hurdle for small biotech
companies and large pharma alike
Rogers (SGS Life Science Services)
I believe there continues to be a
significant problem in the level of
fundamental scientific expertise
within many biopharmaceutical
businesses In part this may be
attributed to the lsquokitrsquo and lsquoblack
boxrsquo approach of many modern
day technologies Due to the
complexity of many biopharma-
ceuticals their development and
success as therapeutics requires a
comprehensive range of scientific
disciplines and expertise which
can be difficult to fully realize
internally particularly for small
and mid-size companies bp
20 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources FillFinish
FillFinish Trends
Automation and disposables continue to reduce human error
Eric s LangEr
Fillfinish operations continue to be domi-
nated by trends in automation and the adop-
tion of single-use equipment But these are
by no means the only factors affecting these
high-value operations according to BioPlan
Associatesrsquo latest biomanufacturing study (1) Fill
finish processes are among the most outsourced
activities in biomanufacturing today and a service
providerrsquos capacity for vialing pre-filled devices
and lyophilization is crucial In a recently pub-
lished whitepaper (2) BioPlan Associates determined
that there is sufficient global in-house capacity
for biologics but the need continues to grow for
greater access to specialized outsourcing competence
Whatrsquos trending is significant improvements in auto-
mation and operations
AutomAtion And single use defining Cmo strAtegy
The top trends today involve automation and devel-
opment of better disposable technologies As part of
the BioPlan study biomanufacturers were asked to
select the trends they believe to be the most impor-
tant in fill and finish today The top three trends
are single-use equipment automation in full isolator
units and facilities becoming multi-product ori-
ented (see Figure 1)
Other important trends were noted including
bull Increased serialization and product labeling for
anti-counterfeiting
Eric s LangEr is president and managing partner at BioPlan Associates Inc elangerbioplanassociatescom tel 3019215979 wwwbioplanassociatescom
Ma
ria T
ou
tou
da
ki
Ge
tty Im
ag
es
WITH ALTHEA YOU HAVE THE POWER TO MAKE
You have the power to make a difference To make new therapeutics that improve quality of life and inspire a healthier world To do this you need a manufacturing partner who embraces your every challenge as its own who shares your unwavering tenacity and dedication from clinical studies through commercial success Thats The Power To Make
PLAY VIDEO
CONTRACT
MANUFACTURING
Q Development
Drug Substance
lj Drug Product
(D Al TH EA I THE POWER TO MAK A MEMBER OF THE AJINOMOTO GROUP
22 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources FillFinish
bull More f i l l f i n i sh fac i l i t ie s
o p e r a t i n g i n d e v e lo p i n g
regions
bull C o m p u t e r - b a s e d v i s u a l
i n s p e c t i o n a r t i f i c i a l
intelligence
bull Use of complex administration
systems
single-use equipment in fillfinish operAtionsT h e a d o p t i o n o f d i s p o s -
ab le e qu ipme nt i n f i l l f i n -
i s h o p e r a t i o n s e l i m i n a t e s
cross-contamination risks and
adds flexibility in process scale
While regulatory rest r ic t ions
may be increased by the adop-
tion of such equipment single-
use appl icat ions a lso enable
contract manufactur ing orga-
nizat ions (CMOs) to increase
fac i l i t y ut i l i z at ion t h rough
multi-product strategies which
can decrease their cost of goods
Experts in the f ield discussed
these trends
Peter Pekos CEO and president
of Dalton Pharma Services a fill
finish CMO says ldquoFor a CMO
disposables can be attractive hellip
For example a disposable isola-
tor can be packed and stored pre-
sterilized for use when needed
a f ixed isolator requires f ixed
space at all times Disposables
also allow a CMO to handle proj-
ects using specific systems for
non-typical project needs such
as disposable isolators without
going to the expense of buying
permanent isolator infrastruc-
ture Disposables do not obviate
the need for technical expertise
hellip so the need for a CMO isnrsquot
really reduced In fact CMOs
with expertise in single-use sys-
tems hellip can make them more
attractiverdquo
Mar t ina Fe r neman cor po -
rate development manager at
Recipharm bel ieves that the
adoption of single-usedispos-
able equipment is now impacting
f i l l and f inish ldquoIn mult ipur-
pose sites the cleaning proce-
dures will become more crucial
to avoid cross contamination
Single-use equipment [also] has
the advantage of shorter lead
t imes and lower procurement
costs Since no cleaning proce-
dure has to be established and
aseptic connections are easier to
be built-up the use of single-
use equipment is not only faster
but also safer than conventional
equipmentrdquo
AutomAtion in full isolAtor unitsW hi le s ing le -use equ ipment
adoption may be one of the hot-
test f i l lf inish trend automa-
tion technologies may actually
be experiencing more rapid rates
of implementation among bio-
manufacturers Indeed sepa-
rate results from BioPlanrsquos 12th
annual study suggest that the
industry wi l l be as l ikely to
implement automation technolo-
gies as they will use single-use
f i l l-f inish devices dur ing the
next 24 months
The removal of human factors
is a key to improving product
quality Isolators and automa-
tion are therefore key drivers
as facilities seek to improve their
i n f r a s t r u c t u r e I n nov a t io n
around equipment and facilities
able to handle multiple products
is going to continue Flexibility
is key as the reduced flexibility
of isolators (and higher cost) in
relation to traditional restricted
access barrier (RAB) systems may
deter some CMOs from adopt-
ing isolators The jury is st i l l
out because the decision fac-
tors between RAB and isolators
are complex and this tends to be
a high-cost decision often left
to the larger f illf inish CMOs
ldquoCMOs will adopt isolator tech-
nologies in their processes to
meet industry needs and reduce
r isk In some cases this wil l
also include disposable isolators
which can offer the benefits of
fixed isolators but add a degree
of f lexibil ity to the manufac-
turerrdquo Pekos notes
According to Ferneman adopt-
ing automat ion in ful l isola-
tor units to reduce the need for
operators is a trend seen in the
CMO market ldquoUse of barr ier
technology (RABS or isolators)
should ensure optimal protec-
t ion of ster i le areas Isolators
bear a better potential to prevent
biocontamination Since the iso-
lator is a closed system a lower
air quality than in RABS systems
can be usedrdquo For freeze-dried
products the RABS system is a
better choice because loading
has to be performed in class AB
surrounding
Fig
ur
e 1
is
co
ur
te
sy
oF
th
e a
ut
ho
r
Figure 1 selected bioprocessing fllfnish trends in 2015
Single-usedisposable equipment
adoption55
36
35Facilities becoming more multi-
product-use oriented
Automation in full isolator units
reduce need for operators
More compounds More accuratelyFaster than ever
Quantitation transformed
Todayrsquos range of possible therapeutic agents from small molecules to peptides to antibodies and
ADCrsquos makes quantitative bioanalysis a challenge Quantify potential therapeutics faster and more
accurately with our new portfolio of LC-MS instruments sample prep solutions and software HRAM
solutions using Thermo Scienti ctrade Orbitraptrade MS enables selectivity for complex molecules while
triple quadrupole MS delivers SRM sensitivity and speed to detect targeted compounds more quickly
Meet todayrsquos challenges with us and together wersquoll transform quantitative bioanalysis
Thermo Scienti ctrade Orbitrap Fusiontrade MSUnprecedented depth of analysis and
throughput for biological discovery
Thermo Scienti ctrade TSQ Quantivatrade MSLeading SRM sensitivity and speed
in a triple quadrupole MSMS
Thermo Scienti ctrade Q Exactivetrade MSScreen and quantify known and unknown targets with HRAM Orbitrap technology
copy 2
014
Ther
mo
Fish
er S
cien
tifi c
Inc
All
right
s re
serv
ed A
ll tr
adem
arks
are
th
e pr
oper
ty o
f The
rmo
Fish
er S
cien
tifi c
and
its
subs
idia
ries
bull Discover more at thermoscienti ccomquan-transformed
24 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources FillFinish
Cmos stAying
AheAd of the Curve
In the whitepaper on in-house
fillfinish operations for recom-
binant therapeutics (2) BioPlan
found relatively low average in-
house capacity utilization rates
for lyophilization (55) pre-filled
devices (58) and vialing (70)
This finding suggests that for fill
finish CMOs the real value isnrsquot
necessarily in providing additional
flexible capacity but rather in posi-
tioning themselves as providing
highly sophisticated and novel
technologies and expertise in fill
finish services Indeed CMOs are
expected to have state-of-the-art
equipment As Pekos notes ldquoCMOs
who implement flexible and inno-
vative technologies to make man-
ufacturing or development more
efficient faster compliant or more
economical all serve to make them
more attractive to customersrdquo
For CMOs that make use of
innovative fillfinish technologies
there appears to be a good deal
of demand Results from BioPlanrsquos
annual studies indicate that fill
finish services are among the most
widely and heavily outsourced
biomanufacturing activities today
and are also among the activities
that biomanufacturers are most
likely to outsource at significantly
higher levels in the future
Biomanufacturers and CMOs are
actively looking to their fillfin-
ish equipment suppliers and are
beginning to demand additional
new technologies innovation and
product development In 2014 for
example when the top areas that
biomanufacturers wanted their
suppliers to focus their develop-
ment efforts on were measured
fillfinish services topped the list
cited by 23 of biomanufacturers
Not only did that figure represent
a substantial increase from years
past (13 in 2011) but it was also
ahead of other services including
upstream and downstream process
development services
Fillfinish will continue
to be an area of
growth for CMOs
There are a number of areas in
which suppliers can add value to
fillfinish innovation according
to industry experts Jim Agalloco
president of Agalloco amp Associates
in Belle Mead NJ says ldquovendors of
equipment and components to fill
finish must continue their roles as
technology leaders Innovation in
this market has always been sup-
plier driven because the operating
firms do not have the necessary
expertise Collaboration between
equipment manufacturers and
component suppliers is essential
for implementation of new con-
tainer systems single-use dispos-
ables and other advancesrdquo
Ronald Malone senior principal
scientist at Novartis Vaccines says
ldquoBlow-fill-seal containerclosure
systems are beneficial for small-
volume parenterals However over-
all cost may still be higher per unit
than traditional vialstopper fill-
ing Vaccines and biologicals can
benefit from single-dose disposable
systems that drive down the cost
of the containerclosure system
This will assist the global supply to
developing world countries where
these products are truly neededrdquo
W B W i e d e r s e i m o f
PharmaBioSource in Wayne PA
states ldquoWe see smaller higher
technical facilities inclusive of dis-
posables (isolators and not RABS)
and advanced aseptic work cell
technology as the wave of the
futurerdquo
WhAt does the future hold
BioPlanrsquos survey data and indus-
try interviews indicate that fill
f inish will continue to be an
area of growth for CMOs that
maintain the required technical
quality and regulatory expertise
in this segment Experts have
taken note of CMOsrsquo introduc-
tion of smaller filling machines
for syringes or vials a trend that
may be in response to the indus-
try-wide move towards smaller-
scale manufactur ing projects
This shift may be accelerated by
the advent of biosimilars which
should provide an increasing
number of projects for fillfin-
ish CMOs although likely on a
smaller scale This increase in
projects could lead to potential
mergers and acquisitions with
some experts noting that fillfin-
ish CMOs are already engaging
in this trend toward larger capac-
ity and global operations
Indeed within the past 18
months a number of acquisi-
tions have occurred including
Pfizerrsquos acquisitions of Hospira
a nd In noPha r ma Pat heonrsquos
mergers in the contract services
space IDT Biolog ika invest-
ments Vet ter invest ing USD
$100 million to upgrade fill-fin-
ish facilities in the United States
a nd Ger ma ny a nd Ba xte r rsquos
investment in German facilities
and numerous others (3)
For CMOs to stay ahead of the
curve they will likely need to
continue to adopt disposables
technologies and advance their
automation in full isolators Ray
Cardin of PharMax Consulting
says ldquoIncreased use of dispos-
able pre-sterilized f illing tech-
nologies [are future trends] The
combination of these pre-ster-
ilized units with the coming of
age of ster i le connectors that
provide high sterility assurance
wwwbiopharminternationalcom June 2015 BioPharm International eBook 25
Outsourcing Resources FillFinish
Biologics Development and Manufacturing Trends Part II
Eric Langer Managing Partner BioPlan Associates talks about the results from BioPlan AssociatesOtilde 12th Annual Report and Survey of Biopharmaceutical Manufacturing Capacity and Production Langer discusses what respondents indicated as the number one trend in biologics manufacturing improving efficiencies and the biosimilars market
in less clean environments is
changing the way aseptic pro-
cesses are designedrdquo
Gordon Leichter PhD Eastern
r e g io n a l s a l e s m a n a ge r a t
Belimed in Charleston SC states
ldquoAutomat ion in fu l l i solators
wil l el iminate operator inter-
vention and laser-sealed vials
Automation will become more
integral to building automation
and enterprise systemsrdquo
Douglas Stockdale vice-presi-
dent CMCTechnical Operations
Hi l lhurst Biopharmaceut ica ls
Los Angeles CA says ldquoIndustry
will continue pushing the PAT
[process analytical technology]
envelope to f ind a lternat ive
methods to improve in-process
methodologies and processesrdquo
Fe r ne ma n add s ldquoCu r r e nt
trends in fillfinish innovation
will probably focus the market
authorization holders on a few
strategic products resulting in
outsourcing of a bigger share of
products overallrdquo
ConClusion
Until recently the handling of
ster i le l iquids in the pharma-
ceutical industry has relied on
relatively consistent techniques
during the past 100 years with
relatively slow changes in tech-
nologies and regulations result-
ing in incremental improvements
in safety efficiency and prod-
uct quality During the past 20
years however costly biologics
have taken a prominent indus-
try role The value of these drugs
can often be measured in tens of
thousands per dose This has put
greater pressure on these down-
stream fillfinish operations to
ensure quality safety and cost-
efficiency are not compromised
at this crucial late stage in manu-
facturing Trends in fillfinish for
recombinant therapeutics include
the increased use of isolator
technologies more high-speed
operations and other innovative
approaches including single-use
processing As a result of industry
research BioPlan expects more
outsourcing of fillfinish opera-
tions in coming years
referenCes 1 BioPlan Associates 12th Annual
Report and Survey of Biopharmaceutical
Manufacturing Capacity and Production
(Rockville MD April 2015) www
bioplanassociatescom
2 BioPlan Associates Trends in Aseptic
Bioprocessing Capacity for the Fill and
Finish of Recombinant Biologics An
Analysis of US and European In-house
Capacity and Capacity Utilization (BioPlan
Associates December 2014)
3 Information derived from BioPlan
Associatesrsquo BioFacilities Newsletters Bp
26 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Cell Therapy
Taking a ldquoDevelopment-by-Designrdquo
Approach to Cell Therapies
Whether outsourcing or developing cell therapies in-house success demands a focus on quality cost of goods
and sustainability from the start
Agnes shAnley
Cell therapies both autologous and allo-
geneic have come a long way in just a
few years Countries around the world
most recently Japan have passed regula-
tions designed to speed development of
these treatments which are now a big and growing
global business
In 2013 according to the Pharmaceutical Research
and Manufacturers Association 69 cell therapies six
of them autologous or patient-specific treatments
were in clinical trials or being reviewed in the United
States alone 15 of them in Phase III trials (1)
The road is littered with failures however often
in clinical stages This has been traced to problems
with manufacturing and failure to understand pro-
cess requirements earlier in the development process
Table I outlines manufacturing issues
As a growing number of Big Pharma companies
explore the potential for immune regenerative and
other cell therapies equipment manufacturers includ-
Agnes shAnley is senior editor of BioPharm International
SC
IEP
RO
GE
tt
y Im
aG
ES
wwwcytovancecomResponsive Reliable Resourceful
Your partner in biopharmaceutical contract manufacturing of therapeutic proteins and antibodies from mammalian cell culture and microbial fermentation
28 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Cell Therapy
ing Pall Corp EMD Millipore
and GE Biosystems have set up
centers of excellence to focus on
developing equipment for this
new market Engineering compa-
nies such as Invetech and Instrom
are developing equipment specific
to this niche
More CDMos are entering
Cell therapy Market niChe
Demand for spec ia l i zed ce l l
t he rapy ma nu fac t u r ing a nd
development serv ices is a lso
growing and has attracted Lonza
Bioservices Cognate BioServices
WuXi AppTech and Roslin Cells
among others
NeoStem is fol low ing t wo
paths pursuing its own cel l
therapy pipel ine and explor-
ing contract services through
its contract development and
manufac t u r ing organ i zat ion
(CDMO) subsidiary Progenitor
Cell Therapy (PCT) With bases
in Irvine and Mountain View CA
and Allendale NJ PCT is cur-
rently working with Intrexon and
Fibrocell on connective tissue
treatments and with the United
K ingdomrsquos Adapt immune on
oncology treatments
A new CEO David Mazzo with
a doctorate in analytical chemis-
try and experience running both
private and public international
biopharma companies assumed
NeoStemrsquos leadership in January
He sees no conflict between grow-
ing a pipeline and a contract man-
ufacturing business
ldquoWe are not trying to be two
di f ferent companies and we
do not see the two competing
with each otherrdquo says Mazzo
in an interview with BioPharm
Inte rnat ionalrsquos s i ster publ ica-
tion Pharmaceutical Technology
during his second week on the
job ldquoInstead there is a symbi-
otic relationship between themrdquo
As he sees it the companyrsquos
track record in developing prod-
ucts should attract more spon-
sors ldquoProblems in development
usually occur at the interfaces
Our unique experience of having
lsquodone that beforersquo should be help-
fulrdquo he says
In January PCT entered a
partnership with Invetech an
equipment design firm based in
Australia with offices in San Diego
to develop automated equipment
for cell therapy manufacturing Fig
ur
e 1
is
co
ur
te
sy
oF
in
ve
te
ch
Figure 1 Part of an automated solution being developed by neostem and invetech Automating processes is key to reducing costs
wwwbiopharminternationalcom June 2015 BioPharm International eBook 29
Outsourcing Resources Cell Therapy
The two companies have already
been working together for a year
now honing the design and speci-
fications for the instrumentation
says NeoStemrsquos Chief Scientific
Officer (CSO) Robert Preti The
equipment will tackle cell therapyrsquos
most challenging side autologous
treatments where the manufactur-
ing lot is the patient dose adminis-
tered at the patientrsquos bedside
As Preti notes there really isnrsquot
much available today in the way
of automated equipment for cell
therapy especially on the autolo-
gous side The equipment will sep-
arate and wash cells among other
functions
labor-intensive
proCesses aDD Cost
So far Preti says the company
is evaluating the evolving equip-
ment in NeoStemrsquos own manu-
facturing efforts ldquoOne of the
largest commercial bottlenecks
is the heavy labor required by
processes especially for patient-
specific uses where one batch is
one patientrdquo
The cost of goods i s ver y
high Preti says ldquoSuccess long-
term will require a whole new
approach to development The
goal is to provide high qual-
ity and sustainabilityrdquo he says
Removing manual operat ions
and human error from the pro-
cess will be crucial
Invetech has been work ing
on cell therapy process scale-up
automation for more than 10
years and has successfully com-
pleted projects in North America
Europe and Asia for companies
that include Argos Therapeutics
Aa s t rom CCR M Hu mac y te
Innovacell Janssen kSep Systems
MolMed Organovo and ViaCyte
accord ing to R ichard Grant
global VP of the companyrsquos bio-
pharma operations who has been
with the company for more than
14 years
ldquoThe goal is to develop a mix
of equipment and manufactur-
ing st rateg ies that maximize
quality scalability and sustain-
ability with an eye toward cost-
effect iveness and commercial
viabilityrdquo Grant says Invetechrsquos
solutions typically tailor a mix of
OEM and customized equipment
to the clientrsquos processes The com-
pany recently commercialized
equipment used to manufacture
Janssenrsquos macular degeneration
treatment
Costs of current manufactur-
ing processes for both autologous
and allogeneic therapies are dif-
ficult to peg Last year experts
at University College London
attempted to pinpoint the cost and
overall economics of allogeneic
cell therapy using single-use tech-
nologies (2)
What is clear for both alloge-
neic and autologous systems is
that cell therapy development
Table I Manufacturing scenarios for cell therapies
Attributes Off-the-shelf therapiesPatient-specifc
therapies
Source material Always allogeneic Autologous or matched allogeneic
Batch size Many patients One patient
Business model Similar to pharmabiopharma New
Scaling Scale up (Increased lot size) Scale out (Increased number of lots)
Comparability vs scale Higher concern Lower concern
Manufacturing design drivers
Mission critical success + +++
Optimized process yield +++ +
Dimensional efficiency ++ +-
Integration +- ++
Automation + ++
source invetech
Table II Measuring comparability risk
Risk level Example Timing
None Automated sterility test Before biologics license application
Low Change in process unit op and cell journey is the same
Before 50 accrual in pivotal trials
Medium Change in process unit op and cell journey is similar
Before initiation of pivotal clinical trials
High Change in process unit op and the cell journey is matched
Some Phase II clinical data
source invetech
30 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Cell Therapy
and manufacturing costs are cur-
rently prohibitive ldquoThe starting
points can vary dramaticallyrdquo
Grant says He recalls one cus-
tomer whose autologous process
ran to $80000 per patient in early
stage clinical trials Automation
he says could reduce costs by
40ndash90 depending on the ther-
apy involved
DevelopMent by Design
But before one can automate any
process one must understand it
NeoStem and PCT like a growing
number of companies are taking
the principle of quality by design
(QbD) to heart in their work
Mazzo arguably one of few
life-science company CEOs to
even articulate the QbD concept
explains that the company has
gone a step further and broadened
the International Conference on
Harmonization guidances adopted
by FDA into ldquodevelopment by
designrdquo (DbD)
ldquoWe say first consider the end-
point then take process as is and
understand its unit operations
Develop inputs and outputs and
discrete steps and define the pro-
cess in a way that promotes under-
standingrdquo he says
ldquoThis is challenging given prod-
uct complexity but there is a need
to understand the mechanism of
action very well so you put each
process in this overall envelope
of DbD and consider the cost of
goods scalability and sustainabil-
ityrdquo Preti adds ldquoYou consider the
process from the end only this
time each batch is an individual
patientrdquo
The critical part is defining and
measuring process needs he says
ldquoProduct definition is very impor-
tant particularly the quality target
product profilerdquo explains Brian
Hampson VP of manufacturing
development and engineering at
PCT in an Oct 22 2014 webcast
for the International Society for
Cell Therapy (3)
have the enD in MinD
Such t h ings a s for mulat ion
issues dosage potency impu-
rities residuals and microbial
assurance need to be thought out
clearly from the start Hampson
says as well as indications for
use geographic market projec-
tions cost-of-goods targets and
IP issues
The profile needs to be a liv-
ing document that changes as the
product takes shape Hampson
says There is a tendency for peo-
ple in the industry to ignore the
product profile until they have
all the answers says Hampson
ldquoInstead it needs to be developed
really early even when you donrsquot
have all or even many of the
answers hellip you can leave them
as blanks and continue to review
add to and updaterdquo
The result is not only a tool for
better understanding the prod-
uct process and mechanism of
action but a communication tool
for stakeholders
When to start DbD for cell ther-
apies ldquoThe temptation is to begin
later in the game when you need
reasonable COGS and you need
to be sure of sustainable manu-
facturingrdquo says Hampson ldquoThe
key thing is comparability and
anticipating its implications early
in the clinical program It needs
to be flexible at the early stagesrdquo
Hampson says ldquoBut as you near
Phase III you need to lock in your
equipment evolves
In the bioreactor area there is great interest in moving from 2-D to 3-D processing to enable the processing of the cell volumes required something that companies such as Israelrsquos Pluristem have been doing for some time
Equipment designer Instrom is partnering with companies including BRTI Life Sciences to focus on 3-D cell matrix technologies developed by Dr John Brekke EMD Millipore has been partnering with PharmaCell BV to use its Mobius bioreactor platform to expand and harvest HepRG cells GE Sciences is also evaluating Wave and other systems and set up a center of excellence in Wales recently
In other equipment areas Pall Corp has been partnering with CMDG LLC on cord blood processing technology Following are some of the equipment manufacturers and systems applied in cell therapy development and manufacturing
bull Beckman Coulter bull Corning Cell Stacks and Cell Cube
bull EMD Millipore bull GE Biosciences
bull Thermo Scientificrsquos Nunc Cell Factories bull Pall Corp
wwwbiopharminternationalcom June 2015 BioPharm International eBook 31
Outsourcing Resources Cell Therapy
processrdquo Table II summarizes issues
and points where changes will be
easier
Thus Hampson suggests that
companies whether work ing
with CDMOs or in house think
through such issues as cost of
goods scale and sustainabil-
ity much earlier than they typi-
cally do today ldquoYou donrsquot need to
spend money on these issues but
you do need to think about themrdquo
Hampson says ldquoQuality must be
a key issue even at Phase II trials
and early action pays off laterrdquo
In addition he suggests that
companies th ink about the
e nt i r e p r o c e s s c o mp r e he n -
sively ldquoThere is often a tendency
to focus on the core processing
stepsrdquo Hampson says ldquoBut you
really need to think about every-
thing from collection of mate-
rial through to administration
of product to the patient and all
steps in betweenrdquo
For ce l l therapies d ispos -
able equipment and closed pro-
cesses can be an effective way to
reduce costs and improve quality
and compliance ldquoThey can allow
you to isolate different processes
so that they can share a Class
100000 cleanroom environmentrdquo
Hampson says
ldquoInvesting in automated informa-
tion management can also pay offrdquo
he says ldquowhere an electronic batch
record system that is fully validated
can enable release-by-exception
reducing error documentation
time and overall quality assurance
costsrdquo Hampson says
In addition he notes it is
important to look at costs compre-
hensively an increase in one cost
can for example reduce overhead
improve process sustainability and
cost of goods Table III outlines the
issues
regulations evolve
Cell therapy is still a new area
for regulators and as Preti says
some guidelines are clear and oth-
ers arenrsquot ldquoDevelopment by design
is needed throughout the pro-
cess but the piece we still struggle
with the most is mode of action
(MOA) and product characteriza-
tion Regulatory agencies under-
stand that it is difficult to pinpoint
MOArdquo
Preti emphasizes the importance
of working with regulators ldquoYou
can be in a position to inform and
influence regulations as products
are developedrdquo he says
For any company moving into
this brave new world top-level ques-
tions are needed Preti says empha-
sizing the following ldquoDo you have
an understanding of scale Can you
scale up from very small Can you
characterize the process and control
it for reliability and qualityrdquo
In the stem cell area in particu-
lar this is crucial Preti said since
the product relies heavily on the
process ldquoManufacturing can be
thought of as patient administra-
tion It cannot be separated in
the same way that it can for tra-
ditional medicinesrdquo For contract
suppliers he adds demonstrated
success will be important and
sponsors should consider whether
a prospective partner will be able
to stay with them for the long run
referenCes 1 P Hourd et al Regulatory Challenges
for the Manufacture and Scale-
Out of Autologous Cell Therapies
Massachusetts General Hospital
(Cambridge MA 2013)
2 S Farid et al Biotechnol Bioeng
111(1) 69-83 (January 2014)
3 R Grant Building Deliverable Cell
Therapeutics A Methodical Approach
to Manufacturing Development
(Webinar Oct 22 2014) bp
source invetech
Justifcation driversChange in cost
doseDevelopment
estimate
Unit Op Ref
Change decription
Comparability risk
Quality COGs Scale Sustainability LaborMaterials outplant
Cost Time
P-2 Process change 1 Medium X X darr $ $$$ TT
P-3 Process change 2 High X X X darr $$$ $$$$ TTT
P-4 Process change 3 Low X X darr $$ $$ TTT
P-2 Process change 4 Low X $$ T
QC-4 In-house QC test None X TT
QA-1Electronic Batch
RecordNone X X X
darr $$$$
TTTT
Table III Process changes timing and comparability risks cogs is cost of goods Qc is quality control
32 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Intellectual Property
Protecting Intellectual Property
in Engagements with CMOs
Important IP contractual provisions should be included when working with CMOs
Jennifer L CoLLins
Biotechnology and pharmaceutical companies
often engage contract CMOs to assist with
the development of their drugs This type
of arrangement naturally involves the devel-
opment of intellectual property (IP) so it is
important for both the CMO and the sponsor to iden-
tify pre-existing intellectual property and also define
how rights to new IP will be allocated protected and
enforced by and between the companies
If the arrangement with the CMO is a traditional fee-
for-service arrangement where the company pays the
CMO service fees to perform development work on its
behalf then generally all new IP (other than improve-
ments to the CMOrsquos manufacturing technology) will be
owned by the biotechnology or pharmaceutical com-
pany that engaged the CMO On the other hand if the
arrangement between the CMO and the biotechnology
or pharmaceutical company is more of a collaborative
arrangement where both parties share the costs of devel-
opment as well as any profits from the commercializa-
tion then IP concerns become much more complicated
In that case in addition to describing which party will
Jennifer L CoLLins is a technology and licensing attorney with Morningstar Law Group jcollinsmorningstarlawgroupcom
Fa
na
tic S
tud
ioG
ett
y Im
ag
es
wwwbiopharminternationalcom June 2015 BioPharm International eBook 33
Outsourcing Resources Intellectual Property
own the new IP the contract should
sort out which party will be respon-
sible for obtaining and maintaining
patents on the new IP controlling
litigation against infringers and
defending the IP against challenges
In addition the parties should agree
upfront on how the IP may be used
by each party following various ter-
mination events so that the parties
are not left fighting about such mat-
ters at a time when they may not be
inclined to agree to anything
In both arrangements without
specific contractual provisions to
define and protect the new IP a
biotechnology company or phar-
maceutical company that uses a
CMO for development is at risk of
losing control of and possibly own-
ership of important improvements
to its drugs This article discusses
IP contractual provisions that
should be included in each type of
arrangement
Fee-For-service
development work
Traditionally CMOs perform fee-for-
service development work where
a biotechnology or pharmaceutical
company engages the CMO to per-
form this work for a fixed fee In this
type of arrangement the CMO is a
service provider and typically takes
no ownership interest in the drug or
product that is being developed or
in improvements to an existing drug
or product that is being tested or
developed The contract governing
the relationship nevertheless must
be clear about the IP rights that are
owned and licensed by each party
If the contract does not provide
for proper assignments of IP to the
biotechnology or pharmaceutical
company then it is likely that the
CMO will own any improvements
or other inventions that it develops
in the performance of the develop-
ment services even if that is not the
intent of the parties
Without signed written contracts
that state otherwise under United
States patent law the inventor of
a patentable invention or improve-
ment will own the invention or
improvement even if the inventor
is engaged to develop the invention
or the improvement for a customer
or other third party To ensure
that the biotechnology company or
pharmaceutical company obtains
all the patent and other IP rights
in developments inventions and
improvements created in the per-
formance of services by the CMO
the governing contract between the
biotechnology company or phar-
maceutical company and the CMO
must include written present assign-
ments of those IP rights from the
CMO to the company Indeed based
on recent cases it is crucial that the
assignment clause in the contract
be a ldquopresentrdquo assignment mean-
ing that it must state specifically
that the CMO ldquohereby assignshelliprdquo
rather than a clause stating that the
CMO ldquoagrees to assignrdquo rights in the
future Otherwise the contract will
be interpreted as a promise to assign
rights in the future and the bio
pharmaceutical company will have
to go back to the CMO at some later
point in time for a separate writ-
ten assignment of rights to obtain
all patent and other IP rights in the
developments
While it sounds logical and
straightforward that the CMO
would assign all inventions created
in the development work to its cus-
tomer it is not always that simple
in practice What if the CMO devel-
ops an improvement to its manu-
facturing process in the course of
the development work Most CMOs
will want to reserve ownership of
any improvements to the CMOrsquos
existing IP and confidential infor-
mation This position is not unrea-
sonable as long as the customer
ultimately has the rights it needs in
all new inventions including those
owned by the CMO to take the drug
forward through further develop-
ment and commercialization One
must sort out IP allocation by sub-
ject matter To achieve this allo-
cation the development contract
typically will state that each party
retains ownership of all IP that it
owns as of the date of the contract
(all pre-existing intellectual prop-
erty) It will also state that the cus-
tomer owns its proprietary drug
and all improvements to the drug
or the customerrsquos confidential infor-
mation developed by either or both
parties The development contract
also may state more generally that
the customer owns all inventions
improvements and IP rights related
to the customerrsquos drug With respect
to the CMO and its IP the develop-
ment contract may state that the
CMO owns all improvements to the
CMOrsquos manufacturing process and
to its other pre-existing intellectual
property Again this reservation is
not unreasonable The customer
however should determine whether
it requires access to those improve-
ments or inventions to complete the
development and commercialization
of its drug If such access is necessary
the customer should either negotiate
a license (which may be royalty-free
or royalty-based depending on the
circumstances) to use such improve-
ments or inventions to develop and
commercialize the drug or the cus-
tomer should negotiate the terms
under which the CMO will continue
to use the improvements or inven-
tions to perform development work
andor manufacture the drug for the
customer
In the fee-for-service arrange-
ment the assignment and licensing
of IP rights in new inventions and
improvements is the key intellectual
property issue Intellectual property
considerations become much more
complicated when the biotechnol-
34 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Intellectual Property
ogy or pharmaceutical company
partners with a CMO in the devel-
opment of a new drug or product
where the parties share development
costs and profits from commercial-
ization of the drug or product
cmo as collaborator
Although not as common as the
fee-for-service arrangement a CMO
may partner with a biotechnology
or pharmaceutical company in the
development and commercialization
of a drug or product Generally both
parties are bringing pre-existing IP
to the collaboration such as a drug
from a biopharmaceutical com-
pany and proprietary drug delivery
technology from the CMO In this
scenario the CMO is taking a long-
term interest and often a part-own-
ership interest in the success of the
drug product
Instead of getting paid an hourly
rate or fixed fee for development
work on the drug product the CMO
may share the cost of development
work with the biotechnology or
pharmaceutical partner in exchange
for a share of the profits when the
drug or product is commercialized
Other costs involved in the develop-
ment and commercialization of the
drug or product that may be shared
include the cost of patent prosecu-
tion and the cost of patent litigation
if the drug product is challenged or
if it is misappropriated or infringed
To secure its interest in the profits
from commercialization of the drug
product the CMO may want to take
an ownership interest in the intel-
lectual property rights in the drug
product All of these issues must be
carefully addressed in the develop-
ment contract to avoid both finan-
cial and IP disputes
As with the fee-for-serv ice
arrangement the parties must
allocate ownership of intellectual
property rights pertaining to the
drug product to be commercialized
These rights include both pre-exist-
ing IP rights and new inventions
and improvements developed in
the course of the development con-
tract As with the fee-for-service
arrangement the parties typically
will retain rights to their respec-
tive pre-existing IP Intellectual
property rights to new inventions
and improvements however may
be shared by giving each party a
co-ownership interest in the intel-
lectual property Alternatively such
rights may be allocated by inventor-
ship with each party taking owner-
ship of developments that it invents
and with the parties jointly own-
ing jointly developed inventions
As another alternative the IP rights
may be allocated by subject matter
as in the fee-for-service arrangement
with each party owning improve-
ments and inventions related to its
pre-existing IP regardless of which
party invents those improvements
and inventions
Depending on how the pat-
ent applications are drafted the
IP rights may be ldquosliced and dicedrdquo
more finely One party for example
could own patent rights for a drug
product for one indication while the
other party owns patent rights for
the same drug product for another
indication Decisions about how
to allocate the IP rights should be
made in consultation with intel-
lectual property counsel and must
take into account the manner in
which the drug will be commercial-
ized If one party for example is
to commercialize the product in
North America and Europe and
the other party is to commercialize
the product in the rest of the world
then either the patent ownership
should be allocated by territory or
the development contract should
include exclusive cross-licenses of
each partyrsquos rights in all the intel-
lectual property necessary to com-
mercialize the product with the first
party having an exclusive license to
commercialize the product in North
America and Europe and the second
party having an exclusive license to
commercialize the product in the
rest of the world
If the parties are going to share
ownership of the IP related to the
drug product then the develop-
ment contract also should specify
which party is responsible for pros-
ecuting and maintaining patents
on the drug product Regardless of
which party is responsible for patent
prosecution and maintenance the
other party should be consulted and
involved in key decisions regard-
ing patent prosecution and main-
tenance Unless there are multiple
patents for different indications that
will be commercialized exclusively
by one party and unless each party
has exclusive rights to commercial-
ize the drug product in particular
geographic areas it generally makes
sense for one party to take the pri-
mary responsibility for patent pros-
ecution and maintenance globally
with the other party consulting and
sharing in the cost of the prosecu-
tion and maintenance in accordance
with the profit sharing The party
that is not responsible for prosecu-
tion and maintenance should have
a contractual right to approve patent
counsel and review and approve pat-
ent filings office action responses
and other communications with
patent registries before they are filed
or submitted so that the parties
agree on the proper prosecution and
maintenance strategy
Likewise the development con-
tract should allocate the rights and
responsibilities for asserting and
defending the patents pertaining to
the product in litigation Often these
rights and responsibilities are allo-
cated by territory according to com-
mercialization rights If one party
for example has the exclusive right
to commercialize the drug product
wwwbiopharminternationalcom June 2015 BioPharm International eBook 35
Outsourcing Resources Intellectual Property
in the US then that party would
have the first right and responsibil-
ity to assert the patents on the drug
product against potential infringers
and defend the patents on the drug
product against infringement claims
in the US Likewise if one party has
the exclusive right to commercial-
ize the drug product for a particular
indication then that party would
have the first right and responsibility
to assert or defend the patents per-
taining to the product with respect
to that indication Both scenarios
can present challenges First some
courts will not recognize an exclu-
sive licensee as having standing to
assert a patent That court might
only allow the owner of the patent
(and not the exclusive licensee) to
bring a lawsuit asserting the patent
It is crucial therefore that contrac-
tual provisions relating to patent liti-
gation require the party that owns
the patent to cooperate in any litiga-
tion and to join the suit as a party if
necessary
Another potential problem is that
any litigation that asserts the pat-
ent is likely to draw a counterclaim
that the patent is invalid thus put-
ting the patent itself at risk of invali-
dation While one party might be
threatened by a potential infringer
in a particular market or for a partic-
ular indication and therefore might
want to assert the patent against the
potential infringer the other party
might not want to put the patent at
risk as to other markets and other
indications For these reasons the
contractual provisions pertaining
to patent litigation must be care-
fully drafted in consultation with
intellectual property counsel who
understands standing issues and
the potential areas for dispute The
contractual provisions also should
include dispute resolution provi-
sions for situations when the parties
do not agree on whether a patent
should be asserted
Finally while the parties may
want and expect their relationship
to continue for the full term of the
patents and the development con-
tract the parties must carefully
consider the IP ramifications of an
early termination of the develop-
ment contract and the relationship
particularly if the development con-
tract is terminated for breach If the
parties are sharing in the ownership
commercialization and profits gen-
erated by the drug product devel-
oped by the collaboration then
all of that must be unwound upon
termination The development
contract should be as specific as
possible with respect to the effect of
various types of termination on the
intellectual property and contin-
ued commercialization of the drug
product In particular the parties
may agree that if the development
contract is terminated due to breach
by one party then that breaching
party must relinquish and transfer
all of its rights with respect to the
drug product to the other party to
allow the non-breaching party to
continue the commercialization of
the drug product post-termination
Whether the necessary rights are
assigned or licensed whether the
terminated party should receive a
royalty for the transfer or license of
those rights and what if any pre-
existing IP is licensed to enable the
non-breaching party to continue
commercializing the drug product
are all key factors for negotiation
The development contract should
also address other types of termi-
nation such as termination for
insolvency and termination with-
out cause (ie if one party decides
it no longer wants to commercial-
ize the drug product) In each case
the effect of termination on the IP
rights should be carefully analyzed
and a competent IP counsel should
carefully draft post-termination
assignments and licenses
conclusion
While IP lawyers are not equipped
with crystal balls they can be
extremely helpful in analyzing par-
ticular development commercializa-
tion and post-termination scenarios
all of which affect IP in a drug devel-
opment arrangement Contractual
provisions related to IP must be
carefully drafted to align with the
strategic business objectives of any
relationship and particularly one
whose purpose is the development
and commercialization of intellec-
tual property Without a clear con-
tract each collaborator is at risk of
losing important rights bp
Ad Index
AJINOMOTO ALTHEA 21
AVID BIOSERVICES INC 15
CYTOVANCE BIOLOGICS 27
EMERGENT BIOSOLUTIONS 13
EUROFINS LANCASTER LABORATORIES 7
SAFC BIOSCIENCES SIGMA ALDRICH 17
THERMO FISHER SCIENTIFIC 23
TOSOH BIOSCIENCE 11
WATERS CORP 3
Company Page
![Page 9: OUOURT NG I C RESOURCESfiles.pharmtech.com/alfresco_images/pharma/2019/03/08/... · 2019-07-22 · VIDEO INTERVIEW Biologics Development and Manufacturing Trends: Part I ... Media](https://reader034.vdocuments.us/reader034/viewer/2022050113/5f4aca886c0d6724390eb040/html5/thumbnails/9.jpg)
wwwbiopharminternationalcom June 2015 BioPharm International eBook 9
Outsourcing Resources Quality Risk Management
cess design The PHA can use a
simple heat map of low medium
and high-severity assessments
An example of a partial PHA is
shown in Figure 3 Any evalu-
ation that results in a hazard
level of medium or high should
be included as part of the control
strategy for the process
pRocess cause-
and-effect MatRix
As the program moves into the
process design and scale up or
technology transfer activities a
cause-and-effects (CampE) analy-
sis is a simple and effective tool
to determine which unit opera-
tions impact the drug productrsquos
final critical quality attributes
(CQAs) These unit operations
could then focus on determin-
ing if there are critical control
parameters (CPPs) that impact
the final productrsquos CQAs If there
are CPPs present a f inal con-
trol strategy should ref lect the
potential risk of straying from
the process design space for that
unit operation An example of a
simple CampE analysis for a sim-
ple monoclonal antibody (mAb)
process train is given in Figure 4
The CampE matrix can assign val-
ues descriptors or in this case
integrate a heat map to commu-
nicate potential risk
failuRe Modes
and effects analysis
Failure modes and effects analy-
sis (FMEA) is a systematic pro-
active method for evaluating a
process to identify where and
how it might fail and to assess
the relat ive impact of d i f fer-
ent failures It is used to iden-
tify the parts of the process that
represent the greatest risk to the
productrsquos performance FMEAs
are one of the most commonly
used risk analysis tools used in
the biopharma industry today
FMEAs are based upon risk rank-
ing tables that provide a com-
mon definition for ranking the
severity of a failure and the like-
lihood of occurrence These are
typically ranked on a scale of 1
to 10 then multiplied together
to give a r isk priority number
(RPN) For FMEAs that do not
intend to address potential fail-
ure modes dur ing the design
activity such as process FMEAs
an additional evaluation cate-
gorymdashProbability of Detectionmdash
is used It is not unusual for an
FMEA to generate a large num-
ber of potential failure modes
FMEAs can be effective as part of
deviation and corrective and pre-
ventive action (CAPA) root cause
investigations as a structured
tool for identifying and demon-
strating a true root cause for a
non-conformance
Risk Ranking and filteRing
Risk ranking and filtering (RRF)
is a common facilitation method
used for risk management and
is also known as relative r isk
ranking risk indexing and risk
matrix and filtering The intent
is to provide sharper focus to the
critical risks within a systemmdash
typically from a large and com-
plex set of risk scenarios RRF
works by breaking down overall
r isk into risk components and
evaluat ing those components
and their individual contribu-
tions to overall risk RRF is most
suited to comparing and manag-
ing a portfolio of complex risks
RRF like all risk-assessment tools
requires agreed-upon sets of risk
factors and evaluation criteria
RRF provides a means to priori-
tize and filter individual risks
by combining the evaluations of
risk components against set cri-
teria into a single risk score
Applying RRF requires identi-
fying the primary risk question
then defining the head topics
and subtopics An example of
a CDMO audit risk assessment
structure is shown in Figure 5
Figure 5 Risk ranking and fltering (RRF) outsourcing example structure
Risk question
Subtopics
Head topics
What should the audit frequency be at the CDMO to ensure GMP compliance
Engineering
Calibration Manufacturing
Labeling
Supplier
Storage
Changecontrol
Batch release
Deviations
Corrective and
preventive actions
Validation
Packaging
QC testing
Maintenance
Operations ComplianceSupplychain
10 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Quality Risk Management
Biologics Development and Manufacturing Trends Part I
Eric Langer Managing Partner BioPlan Associates talks about the results from BioPlan Associatesrsquo 12th Annual Report and Survey of Biopharmaceutical Manufacturing Capacity and Production Trends in downstream processing protein A and single-use technology are discussed in Part I of this discussion For a discussion on productivity trends and biosimilars see Part II of the interview on page 25
With this structure in place
each risk can be assessed against
the probabil ity of occurrence
and severity impact and summa-
rized in a simple heat map
Risk-adjusted
net pResent value
For those decision milestones
that require investment in capi-
tal or resources a risk-adjusted
net present value (rNPV) is a
more acc urate method than
convent iona l N PV a na ly se s
for communicat ing the t r ue
cost of an investment decision
rNPV is sometimes referred to
as expected NPV (eNPV) rNPV
modifies the standard NPV cal-
cu lat ion of d iscounted cash-
f low analysis by mult iply ing
each cash flow by the estimated
probability that it occurs (the
estimated success rate) In the
language of probability theory
the rNPV is the expected value
rNPV is the standard valuation
method in the drug development
industry where sufficient data
exists to estimate success rates
for all RampD phases
conclusion
Biopharmaceutical products and
processes figure among the most
complex drug development life-
cycles within the industry A
structured QRM program that
integ rates s t anda rd i zed r i sk
assessment tools as part of the
overa l l product development
program can highlight the criti-
cal technical compliance and
regulatory risks when consider-
ing an outsourcing service pro-
vider The application of simple
QRM tools will provide structure
to the decision-making and eval-
uation process and when com-
bined with a simple knowledge
management framework provide
a foundation for all future prod-
uct programs Insight into the
risk and mitigation strategies can
reduce a programrsquos risk profile
significantly
RefeRences 1 ICH Q9 Quality Risk Management
(2005)
2 ICH Q5A-Q5E Quality of
Biotechnological Products
3 ICH Q8 Pharmaceutical Development
(2009)
4 Parenteral Drug Associates
Technical Report 42 Process
Validation for Protein Manufacturing
(2005) Bp
wwwtosohbiosciencecom
Tosoh Bioscience and TOYOPEARL are registered trademarks of Tosoh Corporation
Every mAb is unique
Your Protein A should be as well
TOSOH BIOSCIENCE LLC bull Customer service 866-527-3587 bull Technical service 800-366-4875 option 3
TOYOPEARLreg AF-rProtein A HC-650FHigh Capacity Protein A Resin for Monoclonal Antibody Purifi cation
0
10
20
30
40
50
60
70
80
2 35 5
Residence time (minutes)
DBC
for I
gG (g
L)
1 gL
5 gL
10 gLResin TOYOPEARL AF-rProtein A HC-650FColumn size 5 mm ID times 5 cmMobile phase 002 molL sodium phosphate 015 molL NaCl pH 74Residence time 2 35 5 minDetection UV 280 nm (10 breakthrough)Sample human IgG 1 5 10 gL in mobile phase
12 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources CROCMO Viewpoints
Biopharma Advances
Demand Specialized Expertise
Contract service providers share insights on biopharma market developments and the implications of biosimilar drug approvals
The ediTors of Biopharm international
The approval of the first biosimilar in the
United States as well as continuing consolida-
tion in the biopharma and contract develop-
ment and manufacturing markets are just
two indicators of the ongoing evolution of
biopharmaceutical development Representatives of
contract service providers shared observations trends
and projections with BioPharm International
Roundtable participants are Gary Chambers busi-
ness manager biopharma labs Europe SGS Bill
Hartzel director of strategic execution Catalent
Pharma Solutions Chris R Lively PhD director of
biopharmaceutical services PPD Scott Lorimer
VP Global Operations Patheon Biologics Eugene
McNally PhD executive director PPD Consulting
Rekha Patel global director large molecules devel-
opment and analytical solutions Catalent Pharma
Solutions and Mark Rogers vice-president SGS
Life Science Services USA
RegulatoRy and business tRends
BioPharm What regulatory changes have positively or
negatively impacted biopharmaceutical development
manufacturing processes
Ad
am
Ga
ult
Ge
tty Im
ag
es
info_contractmanufacturingebsicom | 1 800 441 4225 | emergentcontractmanufacturingcom
Aseptic FillFinish
Pre-Clinical Development
BDSManufacture
Clinical amp Commerical
Lyo CycleDevelopment
Emergent BioSolutions has a proven track record as a world-class provider of contract manufacturing services for both bulk drug substances and sterile injectable drug products Our team has successfully launched 20 commercial products and developedmanufactured over 200 clinical candidates for our clients
Emerging Capability
State-of-the art flexible single-use facility enables turnkey upstream and downstream solutions for clinical and commercial scale biopharmaceutical drug development
Emergent Contract Manufacturing
Enhancing Life in Every Single Dose
14 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources CROCMO Viewpoints
McNally (PPD Consulting) FDA
establ ished a new Off ice of
Pharmaceutical Quality in 2014
which we anticipate will have major
impacts on the biopharmaceuti-
cal development and manufactur-
ing process This reorganization
was designed to enhance quality
drug assessment by realigning sev-
eral elements of the preapproval
and surveillance inspection pro-
cess Integrating risk-based review
GMP inspection implementation
of quality by design and the new
FDA process validation guidance
within one office is expected to
significantly change the biophar-
maceutical development and manu-
facturing process
H a r t z e l ( C a t a l e n t P h a r m a
Solutions) In todayrsquos market there
are significant manufacturing
challenges in traditional glass vial
filling applications These chal-
lenges manifest in quality issues
with the final container closure
and may be related to microbial
contamination glass particulates
and foreign materials that lead to
necessary market action causing
supply issues
Lorimer (Patheon Biologics) The
greatest regulatory change in recent
times is the acceptance and approval
of biosimilars
BioPharm What business trends
have posit ively or negatively
impacted biopharmaceutical devel-
opmentmanufacturing processes
H a r t z e l ( C a t a l e n t P h a r m a
Solutions) Today there is a stronger
emphasis in the development life-
cycle on the delivery of the mol-
ecule to the patient and not just
the molecule itself Deliverydevice
experts are being added to teams
at Phase II to improve the delivery
beyond the traditional vial
Lively (PPD) Growing interest
in biopharmaceutical drug devel-
opment necessitates partnering
between clients and contractors to
increase industry capacity breadth
of capabilities expertise and
the experience required to bring
these drugs to market The client
will receive the most benefit by
selecting a high-quality contract
research organization (CRO) lab
that is able to meet its needs and
work collaboratively with the cli-
ent to ensure timely development
Lorimer (Patheon Biologics) The
trend of small biotech partner-
ing with large pharma for clinical
manufacturing and development
has certainly facilitated the full
development of more novel mol-
ecules Also the increasing trend
toward outsourcing of GMP biolog-
ics manufacturing ensures biopro-
cessing and testing is performed
by expert manufacturers with
proven track records in quality and
biomanufacturing This helps to
reduce the risk to clinical programs
and product safety
technicalscientific tRendsBioPharm Can you describe pro-
ductivity improvements your com-
pany has experienced from new
technologies
Patel (Catalent Pharma Solutions)
Catalent Pharma Solutions has sig-
nificant ongoing investments in
enhancing our large-molecule ana-
lytical capabilities and productiv-
ity to meet and advance current
industry needs Recent invest-
ments include the updatednew
technologies new assay strategies
and updated electronic systems
and processes
Lively (PPD) Evolving character-
ization expectations for biologics
have driven improvements in ana-
lytical equipment processes and
systems Ultra performance liquid
chromatography (UPLC) systems
have improved resolution and sen-
sitivity while reducing run times
In addition 2D high-performance
liquid chromatography (HPLC)
high-resolution mass spectrom-
etry (MS) allows for analysis of
samples incompatible with tradi-
tional MS Reporter gene bioassays
apply genetically engineered cell
lines both to directly model mech-
anisms of action and to amplify
assays for improved performance
with shorter incubations and
increased signalnoise relative to
standard bioassays
Lorimer (Patheon Biologics) The
main productivity improvement
has been increasing the through-
put of products in Patheonrsquos mul-
tiproduct biopharmaceutical GMP
facilities Single-use disposable
bioreactors and similar single-use
bioprocess equipment minimize
plant downtime which is tradi-
tionally required for line clearance
and product changeover The com-
plexity of product changeovers is
reduced by single-use technology
which decreases the need for clean-
in-place steam-in-place and qual-
ity control testing Typically line
Approval of the first
biosimilar in the
United States as well
as consolidation in
the biopharma and
contract development
and manufacturing
markets are just
two indicators of the
ongoing evolution of
biopharmaceutical
development
YOUR PARTNER FROM CONCEPT TO COMMERCIAL
1
42
5
3CELL LINE DEVELOPMENT
bull Cell line development amp selection
bull Cell line characterization amp optimization
bull Subcloning
bull Suspension adaptation
PROCESS DEVELOPMENT
bull Upstream development amp optimization
bull Media optimization feeding strategyamp design including DoE approach
bull Downstream development ampoptimization
bull Process optimizationprocess scale-up
bull Viral inactivationremoval study design
bull Formulation development amp screening
bull Up to 100L controlled bioreactors
bull Process validation
ANALYTICAL METHODS DEVELOPMENT
bull Development feasibility optimizationtransfer qualification amp validation of methods
bull Identity purity potency safety ampcharacterization
cGMP BIOMANUFACTURING
bull Commercially-licensed facility
bull Flexible manufacturing capabilities
bull Stainless steel amp single-use systemsfrom 100L-1000L
bull FDA EU amp ANVISA inspected
QUALITY AND REGULATORY SERVICES
bull Regulatory strategy amp submissions
bull cGMP CMC Section 7 support
bull In-process amp release testing
bull Stability testing
bull Reference standard generation
For more information please visit us at wwwavidbiocom or
e-mail businessdevelopmentavidbiocom
THE AVID
ADVANTAGE
16 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources CROCMO Viewpoints
clearance time is reduced by sev-
eral days
R o g e r s ( S G S L i f e S c i e n c e
Services) As an analytical ser-
vice provider SGS is constantly
in search of means to improve
its laboratory efficiencies partic-
ularly those that enhance turn-
around time without adversely
effecting quality With this in
mind substitution of HPLC for
UPLC rapid microbiolog ica l
screening methods and invest-
ment in automated approaches to
complex analytical problems such
as protein sequencing are now
being used within the SGS labora-
tory network
Chambers (SGS) From a CRO
point of view the main produc-
tivity improvements in analytics
have been from higher through-
put systems and data analysis The
move to these faster systems with
semiautomated data processing has
allowed us to improve turnaround
times which are passed on to cli-
ents in terms who win on faster
to market times and faster gono
decisions
BioPharm What additional tech-
nology improvements are needed
to improve the efficiency of bio-
processing
Lorimer (Patheon Biologics)
Process analytical technology
(PAT) for continuous monitoring of
bioprocesses is helping reduce the
variability on biopharmaceutical
manufacturing
Also biopharmaceutical devel-
opment and process validation
have been accelerated by the use
of mini-bioreactor systems which
enable a large amount of process
development data to be gener-
ated within a very short timeline
These multi-bioreactor systems
can reduce process develop -
ment timelines by months when
applied to early-stage or late-stage
bioprocesses
Rogers (SGS Life Science Services)
The development of many tech-
nologies follows a common path
from academia to commercial
application and nowhere is this
more evident than in the field of
bioprocessing In almost all exam-
ples the key to this progression
lies in the ability to simplify opera-
tional aspects of the technology
and improve throughput This has
in the past been clearly demon-
strated in for example the field of
mass spectrometry and is currently
evolving with techniques involved
in biophysical characterization
BioPharm What is the greatest
technical challenge facing biophar-
maceutical companies today
Hartzel (Catalent Pharma Solutions)
Cost to manufacture will continue
to be a major challenge for the
industry especially with the rise
of biosimilars and market pressures
to drive down the cost of medi-
cines However the products that
are coming to market are more
targeted which leads to smaller
batch sizes This is counter to the
manufacturing adage of being able
to leverage economies of scale to
drive out costs hence the need to
focus on alternatives technologies
and innovation to reduce the man-
ufacturing costs versus economies
of scale
Lively (PPD) Application of ana-
lytical techniques to better char-
acterize innovator and biosimilar
or follow-on products by physico-
chemical and functional methods
are required and will continue to
be driven by the complexity of
biologics development For exam-
ple changes in formulations may
cause different leachable profiles
requiring increasing emphasis on
extractablesleachables techniques
(ie high-resolution MS) to sup-
port characterization of formu-
lation effects identification of
degradation and impurities and
determination of their potential
impact through application of
potency bioassays
Lorimer (Patheon Biologics) Most
of the technical challenges for
manufacturing have been over-
come and the technologies for
development and manufactur-
ing have been widely adopted
Perhaps the greatest challenge is in
clinical development of novel and
originator molecules where in-vitro
model systems are still not a great
predictor of clinical performance
Rogers (SGS Life Science Services)
To highlight one technical chal-
lenge above all others in todayrsquos
biopharmaceutical industry is
very difficult The complexity of
biotherapeutics often results in
considerable technical difficul-
ties as for example in the area
of impurities recognition of host-
cell proteins (HCPs) and identi-
fication of structural variants at
trace levels are certainly high on
the list of technical concerns The
necessary inclusion of relatively
elaborate analytical techniques
such as sedimentation velocity
analytical ultracentrifugation (SVndash
AUC) within a traditional qual-
ity control release environment is
also not without problems
BioPharm What are the pros-
pects for continuous manufac-
turing to be firmly established in
bioprocessing What are the road-
blocks to implementation
Lorimer (Patheon Biologics)
Continuous product ion f rom
mammalian cell cultures has been
operated in perfusion bioreactors
for many years The main road-
block for continuous processing is
downstream processing of proteins
which currently demands discrete
and distinct unit operations for
removal of impurities removal
of contaminants concentration
of the products and formulation
each in separate controlled steps
Introducing a next generation chemically-defined CHO fed-batch media platform from SAFC Developed across a range of widely used industrial CHO cell lines this newest portfolio media delivers exceptional titers and economic efficiencies Adaptation is simple Celebrate performance and accelerate your bio-development process
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copy2015 Sigma-Aldrich Co LLC All rights reserved Sigma-Aldrich SAFC and EX-CELL are trademarks of Sigma-Aldrich Co LLC registered in the US and other countries
NEXT GENERATION MEDIA PLATFORM
18 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources CROCMO Viewpoints
and which are not currently ame-
nable to continuous processing
the Rise of biosimilaRs
BioPharm What impact w i l l
biosimilar drugs have on bio-
pharma businesses bioprocessing
approaches and the contract ser-
vices market
Rogers (SGS Life Science Services)
The European biopharma land-
scape has already experienced
impact of the biosimilar drug mar-
ket leading to rapid expansion of
traditional small molecule generic
manufactures into the bio arena
Recent FDA approval of the Sandoz
biosimilar Zarixo may be the seed
for similar changes in the US pro-
viding a potential new line of busi-
ness for established pharmaceutical
companies Contract service pro-
viders such as SGS who already
have considerable experience with
biosimilars are able to offer exper-
tise to businesses new to this mar-
ket and will no doubt benefit from
such expansion in the US
Lively (PPD) Increased invest-
ment in biosimilars is driving
interest in improving and stream-
lining the development processes
as well as the sensitivity and scope
of characterization assays used to
compare biosimilars and innova-
tor drugs The expanding capac-
ity needs result in partnerships
between clients and their contrac-
tors with the systems experience
and expertise to achieve the qual-
ity and speed required while meet-
ing all regulatory expectations for
product approval
Chambers (SGS) With nearly
20 years exper ience perform-
ing biosimilar analysis the big-
gest impact had been the massive
increase in the characterization
needed for biosimilars compared
to innovators (although higher
standards are now needed for new
innovators too) This has resulted
CMOs Add Capabilities
Consolidation in the contract development and manufacturing market has resulted in new capabilities and facility expansions
In May 2015 CMC Biologics announced that it is expanding its Copenhagen Denmark facility to increase its manufacturing capacity through the installation of six 2000-L bioreactors The bioreactors can be run singly or in groups simultaneously or sequentially and are part of the companyrsquos signature Bioreactor 6Pack single-use program The Copenhagen installation will begin initial GMP production in November 2015 and will feature three bioreactors to start Three bioreactors will be added at a later date to complete the configuration Meanwhile the Bioreactor 6Pack at CMCrsquos Seattle facility will complete its first GMP run in mid-2015 and will be ready for commercial launch by the end of the year Through its recent expansions CMC plans to expand its global capacity by more than 30000 liters in the United States and Europe
Also in May 2015 SAFC announced an expansion to its St Louis MO facility to support the commercial-scale production of antibody-drug conjugates The facility which is expected to be online and operational in the third quarter of 2015 was designed to meet SafeBridge category 4 compound handling requirements for highly active or cytotoxic compounds The expansion of an existing Carlsbad CA location will enable SAFC to offer fillfinish capabilities of viral products to its clients in the gene therapy viral vaccine and immunotherapy sectors
Rentschler announced in March 2015 that a 2000-L bioreactor that the company commissioned and built in six months is up and running The bioreactor will be integrated into existing manufacturing suites containing two 1000-L single-use bioreactors according to a company statement The companyrsquos twin bioreactor systemmdashdesigned for running two main bioreactors in parallel with one shared downstream processing unitmdashwill be functional by 2017 The twin system is estimated to double the companyrsquos production capacities for cell culture-derived proteins
In December 2014 FUJIFILM Diosynth Biotechnologies USA (FDBU) acquired Kalon Biotherapeutics adding viral and cell-culture vaccine expertise and capabilities In other activity FDBU started construction of a three-story 62000-ft2 facility in Research Triangle Park NC in January 2015 to house the companyrsquos process and analytical research and development process sciences and stability groups The expected completion date is Q4 2015
In September 2014 PCI a provider of packaging services acquired Biotec Services International a provider of clinical-trial services and temperature-controlled pharmaceutical services headquartered in Bridgend Wales UK The addition expanded PCIrsquos presence in the European Union and added packaging storage and distribution capacity and consultative services for clinical-trial supplies In January 2015 Biotec announced the validation of its clinical supply facility expansion which added almost 50 to the companyrsquos clinical trial materials handling capacity
wwwbiopharminternationalcom June 2015 BioPharm International eBook 19
Outsourcing Resources CROCMO Viewpoints
in challenges in data handling
interpretation and data presenta-
tion Biosimilars have also caused
the re-emergence of orthogonal
techniques like size exclusion
chromatographyndashmulti-angle laser
light scattering (SEC-MALL) and
SV-AUC for aggregation and cir-
cular dichroism (CD) and fourier
transform infrared spectroscopy
(FTIR) for higher-order structure
as critical analyses to understand
and compare and detect subtle
higher-order structural differences
between innovator and biosimilar
samples
Hartzel (Catalent Pharma Solutions)
The rise of biosimilar drugs will
dawn the next generation of bio-
logic manufacturing and force
the industry to look at new ways
of manufacturing to drive down
costs Therefore the industry will
seek new manufacturing partners
with strong technical expertise to
drive out costs through innovation
and operational excellence
Lorimer (Patheon Biologics)
Genera l ly b ios imi la r d r ugs
will encourage competitiveness
within the biopharma sector
Biomanufacturers expect increased
pressure on cost of goods and
pricing Biopharmaceutical con-
tract service providers with a flex-
ible multi-product operation and
proven track record in the indus-
try are well placed to ensure care-
ful control of manufacturing costs
and product quality Processing
approaches wonrsquot change in terms
of technology but there will be a
greater emphasis on operational
excellence to reduce costly inef-
ficiencies and improve yields from
bioprocesses As more biosimilars
come to the forefront and as the
industry trend for outsourcing
continues increasing operational
flexibility while maintaining the
highest quality standards will be
the keys to success
business challenges
BioPharm What is the greatest
business challenge facing biophar-
maceutical companies today
Lively (PPD) As with all phar-
maceutical drug development the
greatest challenge is getting new
life-changing and potentially life-
saving drug candidates to mar-
ket Biopharmaceuticals face more
challenges than traditional small-
molecule drug products because
the science of characterization
of such biologic drugs is rapidly
evolving along with the regulatory
landscape Those companies that
are best able to successfully char-
acterize and differentiate innovator
and biosimilar products for safety
and efficacy will have the greatest
opportunity to benefit
the knowledge gap
BioPharm In what areas do you
see knowledge or expertise gaps in
current biopharmaceutical compa-
nies Why do these gaps exist
Lorimer (Patheon Biologics) There
is a gap in translating good sci-
ence to industrial applications of
technologies that provide for reli-
able efficient cost effective man-
ufacturing at commercial scale
Maintaining a focus during early
development on eventual commer-
cial manufacturing requirements
while balancing limited develop-
ment resources requires a broad
base of coordinated organiza-
tional skillsets and a disciplined
approach
Hartzel (Catalent Pharma Solutions)
Devicedelivery expertise is an
area that has a potential gap For
biologics the historic default con-
tainer closure has been a tradi-
tional glass vial As the healthcare
industry seeks ways to improve
patient care and reduce costs the
delivery to the patient needs to
adopt new technologies and this
is why we have seen a rise of pre-
filled syringes and autoinjectors
These technologies will continue
to evolve and so will the demand
for devicedelivery experts
Lively (PPD) One of the chal-
lenges we see is the various levels
of knowledge and expertise that
exist between biopharmaceutical
RampD and the testing and regula-
tory industries That differential is
impacting those industriesrsquo ability
to fully consider and effectively
implement expectations and guid-
ance for physicochemical and
functional characterization expec-
tations of biologic drugs
Lorimer (Patheon Biologics) The
commercial biopharmaceutical
industry demands global sourc-
ing of materials services supply
and ultimately distribution to each
patient This requires a robust inte-
grated supply chain to deliver high
value products to patients on-time
and at the right quality Doing this
reliably and efficiently with long
production lead times and uncer-
tain market sales forecasts is an
industry wide challenge
Speed-to-market remains a key
challenge to the development of
biopharmaceuticals Speedy first-
time-in-man clinical trials can be
a major hurdle for small biotech
companies and large pharma alike
Rogers (SGS Life Science Services)
I believe there continues to be a
significant problem in the level of
fundamental scientific expertise
within many biopharmaceutical
businesses In part this may be
attributed to the lsquokitrsquo and lsquoblack
boxrsquo approach of many modern
day technologies Due to the
complexity of many biopharma-
ceuticals their development and
success as therapeutics requires a
comprehensive range of scientific
disciplines and expertise which
can be difficult to fully realize
internally particularly for small
and mid-size companies bp
20 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources FillFinish
FillFinish Trends
Automation and disposables continue to reduce human error
Eric s LangEr
Fillfinish operations continue to be domi-
nated by trends in automation and the adop-
tion of single-use equipment But these are
by no means the only factors affecting these
high-value operations according to BioPlan
Associatesrsquo latest biomanufacturing study (1) Fill
finish processes are among the most outsourced
activities in biomanufacturing today and a service
providerrsquos capacity for vialing pre-filled devices
and lyophilization is crucial In a recently pub-
lished whitepaper (2) BioPlan Associates determined
that there is sufficient global in-house capacity
for biologics but the need continues to grow for
greater access to specialized outsourcing competence
Whatrsquos trending is significant improvements in auto-
mation and operations
AutomAtion And single use defining Cmo strAtegy
The top trends today involve automation and devel-
opment of better disposable technologies As part of
the BioPlan study biomanufacturers were asked to
select the trends they believe to be the most impor-
tant in fill and finish today The top three trends
are single-use equipment automation in full isolator
units and facilities becoming multi-product ori-
ented (see Figure 1)
Other important trends were noted including
bull Increased serialization and product labeling for
anti-counterfeiting
Eric s LangEr is president and managing partner at BioPlan Associates Inc elangerbioplanassociatescom tel 3019215979 wwwbioplanassociatescom
Ma
ria T
ou
tou
da
ki
Ge
tty Im
ag
es
WITH ALTHEA YOU HAVE THE POWER TO MAKE
You have the power to make a difference To make new therapeutics that improve quality of life and inspire a healthier world To do this you need a manufacturing partner who embraces your every challenge as its own who shares your unwavering tenacity and dedication from clinical studies through commercial success Thats The Power To Make
PLAY VIDEO
CONTRACT
MANUFACTURING
Q Development
Drug Substance
lj Drug Product
(D Al TH EA I THE POWER TO MAK A MEMBER OF THE AJINOMOTO GROUP
22 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources FillFinish
bull More f i l l f i n i sh fac i l i t ie s
o p e r a t i n g i n d e v e lo p i n g
regions
bull C o m p u t e r - b a s e d v i s u a l
i n s p e c t i o n a r t i f i c i a l
intelligence
bull Use of complex administration
systems
single-use equipment in fillfinish operAtionsT h e a d o p t i o n o f d i s p o s -
ab le e qu ipme nt i n f i l l f i n -
i s h o p e r a t i o n s e l i m i n a t e s
cross-contamination risks and
adds flexibility in process scale
While regulatory rest r ic t ions
may be increased by the adop-
tion of such equipment single-
use appl icat ions a lso enable
contract manufactur ing orga-
nizat ions (CMOs) to increase
fac i l i t y ut i l i z at ion t h rough
multi-product strategies which
can decrease their cost of goods
Experts in the f ield discussed
these trends
Peter Pekos CEO and president
of Dalton Pharma Services a fill
finish CMO says ldquoFor a CMO
disposables can be attractive hellip
For example a disposable isola-
tor can be packed and stored pre-
sterilized for use when needed
a f ixed isolator requires f ixed
space at all times Disposables
also allow a CMO to handle proj-
ects using specific systems for
non-typical project needs such
as disposable isolators without
going to the expense of buying
permanent isolator infrastruc-
ture Disposables do not obviate
the need for technical expertise
hellip so the need for a CMO isnrsquot
really reduced In fact CMOs
with expertise in single-use sys-
tems hellip can make them more
attractiverdquo
Mar t ina Fe r neman cor po -
rate development manager at
Recipharm bel ieves that the
adoption of single-usedispos-
able equipment is now impacting
f i l l and f inish ldquoIn mult ipur-
pose sites the cleaning proce-
dures will become more crucial
to avoid cross contamination
Single-use equipment [also] has
the advantage of shorter lead
t imes and lower procurement
costs Since no cleaning proce-
dure has to be established and
aseptic connections are easier to
be built-up the use of single-
use equipment is not only faster
but also safer than conventional
equipmentrdquo
AutomAtion in full isolAtor unitsW hi le s ing le -use equ ipment
adoption may be one of the hot-
test f i l lf inish trend automa-
tion technologies may actually
be experiencing more rapid rates
of implementation among bio-
manufacturers Indeed sepa-
rate results from BioPlanrsquos 12th
annual study suggest that the
industry wi l l be as l ikely to
implement automation technolo-
gies as they will use single-use
f i l l-f inish devices dur ing the
next 24 months
The removal of human factors
is a key to improving product
quality Isolators and automa-
tion are therefore key drivers
as facilities seek to improve their
i n f r a s t r u c t u r e I n nov a t io n
around equipment and facilities
able to handle multiple products
is going to continue Flexibility
is key as the reduced flexibility
of isolators (and higher cost) in
relation to traditional restricted
access barrier (RAB) systems may
deter some CMOs from adopt-
ing isolators The jury is st i l l
out because the decision fac-
tors between RAB and isolators
are complex and this tends to be
a high-cost decision often left
to the larger f illf inish CMOs
ldquoCMOs will adopt isolator tech-
nologies in their processes to
meet industry needs and reduce
r isk In some cases this wil l
also include disposable isolators
which can offer the benefits of
fixed isolators but add a degree
of f lexibil ity to the manufac-
turerrdquo Pekos notes
According to Ferneman adopt-
ing automat ion in ful l isola-
tor units to reduce the need for
operators is a trend seen in the
CMO market ldquoUse of barr ier
technology (RABS or isolators)
should ensure optimal protec-
t ion of ster i le areas Isolators
bear a better potential to prevent
biocontamination Since the iso-
lator is a closed system a lower
air quality than in RABS systems
can be usedrdquo For freeze-dried
products the RABS system is a
better choice because loading
has to be performed in class AB
surrounding
Fig
ur
e 1
is
co
ur
te
sy
oF
th
e a
ut
ho
r
Figure 1 selected bioprocessing fllfnish trends in 2015
Single-usedisposable equipment
adoption55
36
35Facilities becoming more multi-
product-use oriented
Automation in full isolator units
reduce need for operators
More compounds More accuratelyFaster than ever
Quantitation transformed
Todayrsquos range of possible therapeutic agents from small molecules to peptides to antibodies and
ADCrsquos makes quantitative bioanalysis a challenge Quantify potential therapeutics faster and more
accurately with our new portfolio of LC-MS instruments sample prep solutions and software HRAM
solutions using Thermo Scienti ctrade Orbitraptrade MS enables selectivity for complex molecules while
triple quadrupole MS delivers SRM sensitivity and speed to detect targeted compounds more quickly
Meet todayrsquos challenges with us and together wersquoll transform quantitative bioanalysis
Thermo Scienti ctrade Orbitrap Fusiontrade MSUnprecedented depth of analysis and
throughput for biological discovery
Thermo Scienti ctrade TSQ Quantivatrade MSLeading SRM sensitivity and speed
in a triple quadrupole MSMS
Thermo Scienti ctrade Q Exactivetrade MSScreen and quantify known and unknown targets with HRAM Orbitrap technology
copy 2
014
Ther
mo
Fish
er S
cien
tifi c
Inc
All
right
s re
serv
ed A
ll tr
adem
arks
are
th
e pr
oper
ty o
f The
rmo
Fish
er S
cien
tifi c
and
its
subs
idia
ries
bull Discover more at thermoscienti ccomquan-transformed
24 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources FillFinish
Cmos stAying
AheAd of the Curve
In the whitepaper on in-house
fillfinish operations for recom-
binant therapeutics (2) BioPlan
found relatively low average in-
house capacity utilization rates
for lyophilization (55) pre-filled
devices (58) and vialing (70)
This finding suggests that for fill
finish CMOs the real value isnrsquot
necessarily in providing additional
flexible capacity but rather in posi-
tioning themselves as providing
highly sophisticated and novel
technologies and expertise in fill
finish services Indeed CMOs are
expected to have state-of-the-art
equipment As Pekos notes ldquoCMOs
who implement flexible and inno-
vative technologies to make man-
ufacturing or development more
efficient faster compliant or more
economical all serve to make them
more attractive to customersrdquo
For CMOs that make use of
innovative fillfinish technologies
there appears to be a good deal
of demand Results from BioPlanrsquos
annual studies indicate that fill
finish services are among the most
widely and heavily outsourced
biomanufacturing activities today
and are also among the activities
that biomanufacturers are most
likely to outsource at significantly
higher levels in the future
Biomanufacturers and CMOs are
actively looking to their fillfin-
ish equipment suppliers and are
beginning to demand additional
new technologies innovation and
product development In 2014 for
example when the top areas that
biomanufacturers wanted their
suppliers to focus their develop-
ment efforts on were measured
fillfinish services topped the list
cited by 23 of biomanufacturers
Not only did that figure represent
a substantial increase from years
past (13 in 2011) but it was also
ahead of other services including
upstream and downstream process
development services
Fillfinish will continue
to be an area of
growth for CMOs
There are a number of areas in
which suppliers can add value to
fillfinish innovation according
to industry experts Jim Agalloco
president of Agalloco amp Associates
in Belle Mead NJ says ldquovendors of
equipment and components to fill
finish must continue their roles as
technology leaders Innovation in
this market has always been sup-
plier driven because the operating
firms do not have the necessary
expertise Collaboration between
equipment manufacturers and
component suppliers is essential
for implementation of new con-
tainer systems single-use dispos-
ables and other advancesrdquo
Ronald Malone senior principal
scientist at Novartis Vaccines says
ldquoBlow-fill-seal containerclosure
systems are beneficial for small-
volume parenterals However over-
all cost may still be higher per unit
than traditional vialstopper fill-
ing Vaccines and biologicals can
benefit from single-dose disposable
systems that drive down the cost
of the containerclosure system
This will assist the global supply to
developing world countries where
these products are truly neededrdquo
W B W i e d e r s e i m o f
PharmaBioSource in Wayne PA
states ldquoWe see smaller higher
technical facilities inclusive of dis-
posables (isolators and not RABS)
and advanced aseptic work cell
technology as the wave of the
futurerdquo
WhAt does the future hold
BioPlanrsquos survey data and indus-
try interviews indicate that fill
f inish will continue to be an
area of growth for CMOs that
maintain the required technical
quality and regulatory expertise
in this segment Experts have
taken note of CMOsrsquo introduc-
tion of smaller filling machines
for syringes or vials a trend that
may be in response to the indus-
try-wide move towards smaller-
scale manufactur ing projects
This shift may be accelerated by
the advent of biosimilars which
should provide an increasing
number of projects for fillfin-
ish CMOs although likely on a
smaller scale This increase in
projects could lead to potential
mergers and acquisitions with
some experts noting that fillfin-
ish CMOs are already engaging
in this trend toward larger capac-
ity and global operations
Indeed within the past 18
months a number of acquisi-
tions have occurred including
Pfizerrsquos acquisitions of Hospira
a nd In noPha r ma Pat heonrsquos
mergers in the contract services
space IDT Biolog ika invest-
ments Vet ter invest ing USD
$100 million to upgrade fill-fin-
ish facilities in the United States
a nd Ger ma ny a nd Ba xte r rsquos
investment in German facilities
and numerous others (3)
For CMOs to stay ahead of the
curve they will likely need to
continue to adopt disposables
technologies and advance their
automation in full isolators Ray
Cardin of PharMax Consulting
says ldquoIncreased use of dispos-
able pre-sterilized f illing tech-
nologies [are future trends] The
combination of these pre-ster-
ilized units with the coming of
age of ster i le connectors that
provide high sterility assurance
wwwbiopharminternationalcom June 2015 BioPharm International eBook 25
Outsourcing Resources FillFinish
Biologics Development and Manufacturing Trends Part II
Eric Langer Managing Partner BioPlan Associates talks about the results from BioPlan AssociatesOtilde 12th Annual Report and Survey of Biopharmaceutical Manufacturing Capacity and Production Langer discusses what respondents indicated as the number one trend in biologics manufacturing improving efficiencies and the biosimilars market
in less clean environments is
changing the way aseptic pro-
cesses are designedrdquo
Gordon Leichter PhD Eastern
r e g io n a l s a l e s m a n a ge r a t
Belimed in Charleston SC states
ldquoAutomat ion in fu l l i solators
wil l el iminate operator inter-
vention and laser-sealed vials
Automation will become more
integral to building automation
and enterprise systemsrdquo
Douglas Stockdale vice-presi-
dent CMCTechnical Operations
Hi l lhurst Biopharmaceut ica ls
Los Angeles CA says ldquoIndustry
will continue pushing the PAT
[process analytical technology]
envelope to f ind a lternat ive
methods to improve in-process
methodologies and processesrdquo
Fe r ne ma n add s ldquoCu r r e nt
trends in fillfinish innovation
will probably focus the market
authorization holders on a few
strategic products resulting in
outsourcing of a bigger share of
products overallrdquo
ConClusion
Until recently the handling of
ster i le l iquids in the pharma-
ceutical industry has relied on
relatively consistent techniques
during the past 100 years with
relatively slow changes in tech-
nologies and regulations result-
ing in incremental improvements
in safety efficiency and prod-
uct quality During the past 20
years however costly biologics
have taken a prominent indus-
try role The value of these drugs
can often be measured in tens of
thousands per dose This has put
greater pressure on these down-
stream fillfinish operations to
ensure quality safety and cost-
efficiency are not compromised
at this crucial late stage in manu-
facturing Trends in fillfinish for
recombinant therapeutics include
the increased use of isolator
technologies more high-speed
operations and other innovative
approaches including single-use
processing As a result of industry
research BioPlan expects more
outsourcing of fillfinish opera-
tions in coming years
referenCes 1 BioPlan Associates 12th Annual
Report and Survey of Biopharmaceutical
Manufacturing Capacity and Production
(Rockville MD April 2015) www
bioplanassociatescom
2 BioPlan Associates Trends in Aseptic
Bioprocessing Capacity for the Fill and
Finish of Recombinant Biologics An
Analysis of US and European In-house
Capacity and Capacity Utilization (BioPlan
Associates December 2014)
3 Information derived from BioPlan
Associatesrsquo BioFacilities Newsletters Bp
26 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Cell Therapy
Taking a ldquoDevelopment-by-Designrdquo
Approach to Cell Therapies
Whether outsourcing or developing cell therapies in-house success demands a focus on quality cost of goods
and sustainability from the start
Agnes shAnley
Cell therapies both autologous and allo-
geneic have come a long way in just a
few years Countries around the world
most recently Japan have passed regula-
tions designed to speed development of
these treatments which are now a big and growing
global business
In 2013 according to the Pharmaceutical Research
and Manufacturers Association 69 cell therapies six
of them autologous or patient-specific treatments
were in clinical trials or being reviewed in the United
States alone 15 of them in Phase III trials (1)
The road is littered with failures however often
in clinical stages This has been traced to problems
with manufacturing and failure to understand pro-
cess requirements earlier in the development process
Table I outlines manufacturing issues
As a growing number of Big Pharma companies
explore the potential for immune regenerative and
other cell therapies equipment manufacturers includ-
Agnes shAnley is senior editor of BioPharm International
SC
IEP
RO
GE
tt
y Im
aG
ES
wwwcytovancecomResponsive Reliable Resourceful
Your partner in biopharmaceutical contract manufacturing of therapeutic proteins and antibodies from mammalian cell culture and microbial fermentation
28 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Cell Therapy
ing Pall Corp EMD Millipore
and GE Biosystems have set up
centers of excellence to focus on
developing equipment for this
new market Engineering compa-
nies such as Invetech and Instrom
are developing equipment specific
to this niche
More CDMos are entering
Cell therapy Market niChe
Demand for spec ia l i zed ce l l
t he rapy ma nu fac t u r ing a nd
development serv ices is a lso
growing and has attracted Lonza
Bioservices Cognate BioServices
WuXi AppTech and Roslin Cells
among others
NeoStem is fol low ing t wo
paths pursuing its own cel l
therapy pipel ine and explor-
ing contract services through
its contract development and
manufac t u r ing organ i zat ion
(CDMO) subsidiary Progenitor
Cell Therapy (PCT) With bases
in Irvine and Mountain View CA
and Allendale NJ PCT is cur-
rently working with Intrexon and
Fibrocell on connective tissue
treatments and with the United
K ingdomrsquos Adapt immune on
oncology treatments
A new CEO David Mazzo with
a doctorate in analytical chemis-
try and experience running both
private and public international
biopharma companies assumed
NeoStemrsquos leadership in January
He sees no conflict between grow-
ing a pipeline and a contract man-
ufacturing business
ldquoWe are not trying to be two
di f ferent companies and we
do not see the two competing
with each otherrdquo says Mazzo
in an interview with BioPharm
Inte rnat ionalrsquos s i ster publ ica-
tion Pharmaceutical Technology
during his second week on the
job ldquoInstead there is a symbi-
otic relationship between themrdquo
As he sees it the companyrsquos
track record in developing prod-
ucts should attract more spon-
sors ldquoProblems in development
usually occur at the interfaces
Our unique experience of having
lsquodone that beforersquo should be help-
fulrdquo he says
In January PCT entered a
partnership with Invetech an
equipment design firm based in
Australia with offices in San Diego
to develop automated equipment
for cell therapy manufacturing Fig
ur
e 1
is
co
ur
te
sy
oF
in
ve
te
ch
Figure 1 Part of an automated solution being developed by neostem and invetech Automating processes is key to reducing costs
wwwbiopharminternationalcom June 2015 BioPharm International eBook 29
Outsourcing Resources Cell Therapy
The two companies have already
been working together for a year
now honing the design and speci-
fications for the instrumentation
says NeoStemrsquos Chief Scientific
Officer (CSO) Robert Preti The
equipment will tackle cell therapyrsquos
most challenging side autologous
treatments where the manufactur-
ing lot is the patient dose adminis-
tered at the patientrsquos bedside
As Preti notes there really isnrsquot
much available today in the way
of automated equipment for cell
therapy especially on the autolo-
gous side The equipment will sep-
arate and wash cells among other
functions
labor-intensive
proCesses aDD Cost
So far Preti says the company
is evaluating the evolving equip-
ment in NeoStemrsquos own manu-
facturing efforts ldquoOne of the
largest commercial bottlenecks
is the heavy labor required by
processes especially for patient-
specific uses where one batch is
one patientrdquo
The cost of goods i s ver y
high Preti says ldquoSuccess long-
term will require a whole new
approach to development The
goal is to provide high qual-
ity and sustainabilityrdquo he says
Removing manual operat ions
and human error from the pro-
cess will be crucial
Invetech has been work ing
on cell therapy process scale-up
automation for more than 10
years and has successfully com-
pleted projects in North America
Europe and Asia for companies
that include Argos Therapeutics
Aa s t rom CCR M Hu mac y te
Innovacell Janssen kSep Systems
MolMed Organovo and ViaCyte
accord ing to R ichard Grant
global VP of the companyrsquos bio-
pharma operations who has been
with the company for more than
14 years
ldquoThe goal is to develop a mix
of equipment and manufactur-
ing st rateg ies that maximize
quality scalability and sustain-
ability with an eye toward cost-
effect iveness and commercial
viabilityrdquo Grant says Invetechrsquos
solutions typically tailor a mix of
OEM and customized equipment
to the clientrsquos processes The com-
pany recently commercialized
equipment used to manufacture
Janssenrsquos macular degeneration
treatment
Costs of current manufactur-
ing processes for both autologous
and allogeneic therapies are dif-
ficult to peg Last year experts
at University College London
attempted to pinpoint the cost and
overall economics of allogeneic
cell therapy using single-use tech-
nologies (2)
What is clear for both alloge-
neic and autologous systems is
that cell therapy development
Table I Manufacturing scenarios for cell therapies
Attributes Off-the-shelf therapiesPatient-specifc
therapies
Source material Always allogeneic Autologous or matched allogeneic
Batch size Many patients One patient
Business model Similar to pharmabiopharma New
Scaling Scale up (Increased lot size) Scale out (Increased number of lots)
Comparability vs scale Higher concern Lower concern
Manufacturing design drivers
Mission critical success + +++
Optimized process yield +++ +
Dimensional efficiency ++ +-
Integration +- ++
Automation + ++
source invetech
Table II Measuring comparability risk
Risk level Example Timing
None Automated sterility test Before biologics license application
Low Change in process unit op and cell journey is the same
Before 50 accrual in pivotal trials
Medium Change in process unit op and cell journey is similar
Before initiation of pivotal clinical trials
High Change in process unit op and the cell journey is matched
Some Phase II clinical data
source invetech
30 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Cell Therapy
and manufacturing costs are cur-
rently prohibitive ldquoThe starting
points can vary dramaticallyrdquo
Grant says He recalls one cus-
tomer whose autologous process
ran to $80000 per patient in early
stage clinical trials Automation
he says could reduce costs by
40ndash90 depending on the ther-
apy involved
DevelopMent by Design
But before one can automate any
process one must understand it
NeoStem and PCT like a growing
number of companies are taking
the principle of quality by design
(QbD) to heart in their work
Mazzo arguably one of few
life-science company CEOs to
even articulate the QbD concept
explains that the company has
gone a step further and broadened
the International Conference on
Harmonization guidances adopted
by FDA into ldquodevelopment by
designrdquo (DbD)
ldquoWe say first consider the end-
point then take process as is and
understand its unit operations
Develop inputs and outputs and
discrete steps and define the pro-
cess in a way that promotes under-
standingrdquo he says
ldquoThis is challenging given prod-
uct complexity but there is a need
to understand the mechanism of
action very well so you put each
process in this overall envelope
of DbD and consider the cost of
goods scalability and sustainabil-
ityrdquo Preti adds ldquoYou consider the
process from the end only this
time each batch is an individual
patientrdquo
The critical part is defining and
measuring process needs he says
ldquoProduct definition is very impor-
tant particularly the quality target
product profilerdquo explains Brian
Hampson VP of manufacturing
development and engineering at
PCT in an Oct 22 2014 webcast
for the International Society for
Cell Therapy (3)
have the enD in MinD
Such t h ings a s for mulat ion
issues dosage potency impu-
rities residuals and microbial
assurance need to be thought out
clearly from the start Hampson
says as well as indications for
use geographic market projec-
tions cost-of-goods targets and
IP issues
The profile needs to be a liv-
ing document that changes as the
product takes shape Hampson
says There is a tendency for peo-
ple in the industry to ignore the
product profile until they have
all the answers says Hampson
ldquoInstead it needs to be developed
really early even when you donrsquot
have all or even many of the
answers hellip you can leave them
as blanks and continue to review
add to and updaterdquo
The result is not only a tool for
better understanding the prod-
uct process and mechanism of
action but a communication tool
for stakeholders
When to start DbD for cell ther-
apies ldquoThe temptation is to begin
later in the game when you need
reasonable COGS and you need
to be sure of sustainable manu-
facturingrdquo says Hampson ldquoThe
key thing is comparability and
anticipating its implications early
in the clinical program It needs
to be flexible at the early stagesrdquo
Hampson says ldquoBut as you near
Phase III you need to lock in your
equipment evolves
In the bioreactor area there is great interest in moving from 2-D to 3-D processing to enable the processing of the cell volumes required something that companies such as Israelrsquos Pluristem have been doing for some time
Equipment designer Instrom is partnering with companies including BRTI Life Sciences to focus on 3-D cell matrix technologies developed by Dr John Brekke EMD Millipore has been partnering with PharmaCell BV to use its Mobius bioreactor platform to expand and harvest HepRG cells GE Sciences is also evaluating Wave and other systems and set up a center of excellence in Wales recently
In other equipment areas Pall Corp has been partnering with CMDG LLC on cord blood processing technology Following are some of the equipment manufacturers and systems applied in cell therapy development and manufacturing
bull Beckman Coulter bull Corning Cell Stacks and Cell Cube
bull EMD Millipore bull GE Biosciences
bull Thermo Scientificrsquos Nunc Cell Factories bull Pall Corp
wwwbiopharminternationalcom June 2015 BioPharm International eBook 31
Outsourcing Resources Cell Therapy
processrdquo Table II summarizes issues
and points where changes will be
easier
Thus Hampson suggests that
companies whether work ing
with CDMOs or in house think
through such issues as cost of
goods scale and sustainabil-
ity much earlier than they typi-
cally do today ldquoYou donrsquot need to
spend money on these issues but
you do need to think about themrdquo
Hampson says ldquoQuality must be
a key issue even at Phase II trials
and early action pays off laterrdquo
In addition he suggests that
companies th ink about the
e nt i r e p r o c e s s c o mp r e he n -
sively ldquoThere is often a tendency
to focus on the core processing
stepsrdquo Hampson says ldquoBut you
really need to think about every-
thing from collection of mate-
rial through to administration
of product to the patient and all
steps in betweenrdquo
For ce l l therapies d ispos -
able equipment and closed pro-
cesses can be an effective way to
reduce costs and improve quality
and compliance ldquoThey can allow
you to isolate different processes
so that they can share a Class
100000 cleanroom environmentrdquo
Hampson says
ldquoInvesting in automated informa-
tion management can also pay offrdquo
he says ldquowhere an electronic batch
record system that is fully validated
can enable release-by-exception
reducing error documentation
time and overall quality assurance
costsrdquo Hampson says
In addition he notes it is
important to look at costs compre-
hensively an increase in one cost
can for example reduce overhead
improve process sustainability and
cost of goods Table III outlines the
issues
regulations evolve
Cell therapy is still a new area
for regulators and as Preti says
some guidelines are clear and oth-
ers arenrsquot ldquoDevelopment by design
is needed throughout the pro-
cess but the piece we still struggle
with the most is mode of action
(MOA) and product characteriza-
tion Regulatory agencies under-
stand that it is difficult to pinpoint
MOArdquo
Preti emphasizes the importance
of working with regulators ldquoYou
can be in a position to inform and
influence regulations as products
are developedrdquo he says
For any company moving into
this brave new world top-level ques-
tions are needed Preti says empha-
sizing the following ldquoDo you have
an understanding of scale Can you
scale up from very small Can you
characterize the process and control
it for reliability and qualityrdquo
In the stem cell area in particu-
lar this is crucial Preti said since
the product relies heavily on the
process ldquoManufacturing can be
thought of as patient administra-
tion It cannot be separated in
the same way that it can for tra-
ditional medicinesrdquo For contract
suppliers he adds demonstrated
success will be important and
sponsors should consider whether
a prospective partner will be able
to stay with them for the long run
referenCes 1 P Hourd et al Regulatory Challenges
for the Manufacture and Scale-
Out of Autologous Cell Therapies
Massachusetts General Hospital
(Cambridge MA 2013)
2 S Farid et al Biotechnol Bioeng
111(1) 69-83 (January 2014)
3 R Grant Building Deliverable Cell
Therapeutics A Methodical Approach
to Manufacturing Development
(Webinar Oct 22 2014) bp
source invetech
Justifcation driversChange in cost
doseDevelopment
estimate
Unit Op Ref
Change decription
Comparability risk
Quality COGs Scale Sustainability LaborMaterials outplant
Cost Time
P-2 Process change 1 Medium X X darr $ $$$ TT
P-3 Process change 2 High X X X darr $$$ $$$$ TTT
P-4 Process change 3 Low X X darr $$ $$ TTT
P-2 Process change 4 Low X $$ T
QC-4 In-house QC test None X TT
QA-1Electronic Batch
RecordNone X X X
darr $$$$
TTTT
Table III Process changes timing and comparability risks cogs is cost of goods Qc is quality control
32 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Intellectual Property
Protecting Intellectual Property
in Engagements with CMOs
Important IP contractual provisions should be included when working with CMOs
Jennifer L CoLLins
Biotechnology and pharmaceutical companies
often engage contract CMOs to assist with
the development of their drugs This type
of arrangement naturally involves the devel-
opment of intellectual property (IP) so it is
important for both the CMO and the sponsor to iden-
tify pre-existing intellectual property and also define
how rights to new IP will be allocated protected and
enforced by and between the companies
If the arrangement with the CMO is a traditional fee-
for-service arrangement where the company pays the
CMO service fees to perform development work on its
behalf then generally all new IP (other than improve-
ments to the CMOrsquos manufacturing technology) will be
owned by the biotechnology or pharmaceutical com-
pany that engaged the CMO On the other hand if the
arrangement between the CMO and the biotechnology
or pharmaceutical company is more of a collaborative
arrangement where both parties share the costs of devel-
opment as well as any profits from the commercializa-
tion then IP concerns become much more complicated
In that case in addition to describing which party will
Jennifer L CoLLins is a technology and licensing attorney with Morningstar Law Group jcollinsmorningstarlawgroupcom
Fa
na
tic S
tud
ioG
ett
y Im
ag
es
wwwbiopharminternationalcom June 2015 BioPharm International eBook 33
Outsourcing Resources Intellectual Property
own the new IP the contract should
sort out which party will be respon-
sible for obtaining and maintaining
patents on the new IP controlling
litigation against infringers and
defending the IP against challenges
In addition the parties should agree
upfront on how the IP may be used
by each party following various ter-
mination events so that the parties
are not left fighting about such mat-
ters at a time when they may not be
inclined to agree to anything
In both arrangements without
specific contractual provisions to
define and protect the new IP a
biotechnology company or phar-
maceutical company that uses a
CMO for development is at risk of
losing control of and possibly own-
ership of important improvements
to its drugs This article discusses
IP contractual provisions that
should be included in each type of
arrangement
Fee-For-service
development work
Traditionally CMOs perform fee-for-
service development work where
a biotechnology or pharmaceutical
company engages the CMO to per-
form this work for a fixed fee In this
type of arrangement the CMO is a
service provider and typically takes
no ownership interest in the drug or
product that is being developed or
in improvements to an existing drug
or product that is being tested or
developed The contract governing
the relationship nevertheless must
be clear about the IP rights that are
owned and licensed by each party
If the contract does not provide
for proper assignments of IP to the
biotechnology or pharmaceutical
company then it is likely that the
CMO will own any improvements
or other inventions that it develops
in the performance of the develop-
ment services even if that is not the
intent of the parties
Without signed written contracts
that state otherwise under United
States patent law the inventor of
a patentable invention or improve-
ment will own the invention or
improvement even if the inventor
is engaged to develop the invention
or the improvement for a customer
or other third party To ensure
that the biotechnology company or
pharmaceutical company obtains
all the patent and other IP rights
in developments inventions and
improvements created in the per-
formance of services by the CMO
the governing contract between the
biotechnology company or phar-
maceutical company and the CMO
must include written present assign-
ments of those IP rights from the
CMO to the company Indeed based
on recent cases it is crucial that the
assignment clause in the contract
be a ldquopresentrdquo assignment mean-
ing that it must state specifically
that the CMO ldquohereby assignshelliprdquo
rather than a clause stating that the
CMO ldquoagrees to assignrdquo rights in the
future Otherwise the contract will
be interpreted as a promise to assign
rights in the future and the bio
pharmaceutical company will have
to go back to the CMO at some later
point in time for a separate writ-
ten assignment of rights to obtain
all patent and other IP rights in the
developments
While it sounds logical and
straightforward that the CMO
would assign all inventions created
in the development work to its cus-
tomer it is not always that simple
in practice What if the CMO devel-
ops an improvement to its manu-
facturing process in the course of
the development work Most CMOs
will want to reserve ownership of
any improvements to the CMOrsquos
existing IP and confidential infor-
mation This position is not unrea-
sonable as long as the customer
ultimately has the rights it needs in
all new inventions including those
owned by the CMO to take the drug
forward through further develop-
ment and commercialization One
must sort out IP allocation by sub-
ject matter To achieve this allo-
cation the development contract
typically will state that each party
retains ownership of all IP that it
owns as of the date of the contract
(all pre-existing intellectual prop-
erty) It will also state that the cus-
tomer owns its proprietary drug
and all improvements to the drug
or the customerrsquos confidential infor-
mation developed by either or both
parties The development contract
also may state more generally that
the customer owns all inventions
improvements and IP rights related
to the customerrsquos drug With respect
to the CMO and its IP the develop-
ment contract may state that the
CMO owns all improvements to the
CMOrsquos manufacturing process and
to its other pre-existing intellectual
property Again this reservation is
not unreasonable The customer
however should determine whether
it requires access to those improve-
ments or inventions to complete the
development and commercialization
of its drug If such access is necessary
the customer should either negotiate
a license (which may be royalty-free
or royalty-based depending on the
circumstances) to use such improve-
ments or inventions to develop and
commercialize the drug or the cus-
tomer should negotiate the terms
under which the CMO will continue
to use the improvements or inven-
tions to perform development work
andor manufacture the drug for the
customer
In the fee-for-service arrange-
ment the assignment and licensing
of IP rights in new inventions and
improvements is the key intellectual
property issue Intellectual property
considerations become much more
complicated when the biotechnol-
34 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Intellectual Property
ogy or pharmaceutical company
partners with a CMO in the devel-
opment of a new drug or product
where the parties share development
costs and profits from commercial-
ization of the drug or product
cmo as collaborator
Although not as common as the
fee-for-service arrangement a CMO
may partner with a biotechnology
or pharmaceutical company in the
development and commercialization
of a drug or product Generally both
parties are bringing pre-existing IP
to the collaboration such as a drug
from a biopharmaceutical com-
pany and proprietary drug delivery
technology from the CMO In this
scenario the CMO is taking a long-
term interest and often a part-own-
ership interest in the success of the
drug product
Instead of getting paid an hourly
rate or fixed fee for development
work on the drug product the CMO
may share the cost of development
work with the biotechnology or
pharmaceutical partner in exchange
for a share of the profits when the
drug or product is commercialized
Other costs involved in the develop-
ment and commercialization of the
drug or product that may be shared
include the cost of patent prosecu-
tion and the cost of patent litigation
if the drug product is challenged or
if it is misappropriated or infringed
To secure its interest in the profits
from commercialization of the drug
product the CMO may want to take
an ownership interest in the intel-
lectual property rights in the drug
product All of these issues must be
carefully addressed in the develop-
ment contract to avoid both finan-
cial and IP disputes
As with the fee-for-serv ice
arrangement the parties must
allocate ownership of intellectual
property rights pertaining to the
drug product to be commercialized
These rights include both pre-exist-
ing IP rights and new inventions
and improvements developed in
the course of the development con-
tract As with the fee-for-service
arrangement the parties typically
will retain rights to their respec-
tive pre-existing IP Intellectual
property rights to new inventions
and improvements however may
be shared by giving each party a
co-ownership interest in the intel-
lectual property Alternatively such
rights may be allocated by inventor-
ship with each party taking owner-
ship of developments that it invents
and with the parties jointly own-
ing jointly developed inventions
As another alternative the IP rights
may be allocated by subject matter
as in the fee-for-service arrangement
with each party owning improve-
ments and inventions related to its
pre-existing IP regardless of which
party invents those improvements
and inventions
Depending on how the pat-
ent applications are drafted the
IP rights may be ldquosliced and dicedrdquo
more finely One party for example
could own patent rights for a drug
product for one indication while the
other party owns patent rights for
the same drug product for another
indication Decisions about how
to allocate the IP rights should be
made in consultation with intel-
lectual property counsel and must
take into account the manner in
which the drug will be commercial-
ized If one party for example is
to commercialize the product in
North America and Europe and
the other party is to commercialize
the product in the rest of the world
then either the patent ownership
should be allocated by territory or
the development contract should
include exclusive cross-licenses of
each partyrsquos rights in all the intel-
lectual property necessary to com-
mercialize the product with the first
party having an exclusive license to
commercialize the product in North
America and Europe and the second
party having an exclusive license to
commercialize the product in the
rest of the world
If the parties are going to share
ownership of the IP related to the
drug product then the develop-
ment contract also should specify
which party is responsible for pros-
ecuting and maintaining patents
on the drug product Regardless of
which party is responsible for patent
prosecution and maintenance the
other party should be consulted and
involved in key decisions regard-
ing patent prosecution and main-
tenance Unless there are multiple
patents for different indications that
will be commercialized exclusively
by one party and unless each party
has exclusive rights to commercial-
ize the drug product in particular
geographic areas it generally makes
sense for one party to take the pri-
mary responsibility for patent pros-
ecution and maintenance globally
with the other party consulting and
sharing in the cost of the prosecu-
tion and maintenance in accordance
with the profit sharing The party
that is not responsible for prosecu-
tion and maintenance should have
a contractual right to approve patent
counsel and review and approve pat-
ent filings office action responses
and other communications with
patent registries before they are filed
or submitted so that the parties
agree on the proper prosecution and
maintenance strategy
Likewise the development con-
tract should allocate the rights and
responsibilities for asserting and
defending the patents pertaining to
the product in litigation Often these
rights and responsibilities are allo-
cated by territory according to com-
mercialization rights If one party
for example has the exclusive right
to commercialize the drug product
wwwbiopharminternationalcom June 2015 BioPharm International eBook 35
Outsourcing Resources Intellectual Property
in the US then that party would
have the first right and responsibil-
ity to assert the patents on the drug
product against potential infringers
and defend the patents on the drug
product against infringement claims
in the US Likewise if one party has
the exclusive right to commercial-
ize the drug product for a particular
indication then that party would
have the first right and responsibility
to assert or defend the patents per-
taining to the product with respect
to that indication Both scenarios
can present challenges First some
courts will not recognize an exclu-
sive licensee as having standing to
assert a patent That court might
only allow the owner of the patent
(and not the exclusive licensee) to
bring a lawsuit asserting the patent
It is crucial therefore that contrac-
tual provisions relating to patent liti-
gation require the party that owns
the patent to cooperate in any litiga-
tion and to join the suit as a party if
necessary
Another potential problem is that
any litigation that asserts the pat-
ent is likely to draw a counterclaim
that the patent is invalid thus put-
ting the patent itself at risk of invali-
dation While one party might be
threatened by a potential infringer
in a particular market or for a partic-
ular indication and therefore might
want to assert the patent against the
potential infringer the other party
might not want to put the patent at
risk as to other markets and other
indications For these reasons the
contractual provisions pertaining
to patent litigation must be care-
fully drafted in consultation with
intellectual property counsel who
understands standing issues and
the potential areas for dispute The
contractual provisions also should
include dispute resolution provi-
sions for situations when the parties
do not agree on whether a patent
should be asserted
Finally while the parties may
want and expect their relationship
to continue for the full term of the
patents and the development con-
tract the parties must carefully
consider the IP ramifications of an
early termination of the develop-
ment contract and the relationship
particularly if the development con-
tract is terminated for breach If the
parties are sharing in the ownership
commercialization and profits gen-
erated by the drug product devel-
oped by the collaboration then
all of that must be unwound upon
termination The development
contract should be as specific as
possible with respect to the effect of
various types of termination on the
intellectual property and contin-
ued commercialization of the drug
product In particular the parties
may agree that if the development
contract is terminated due to breach
by one party then that breaching
party must relinquish and transfer
all of its rights with respect to the
drug product to the other party to
allow the non-breaching party to
continue the commercialization of
the drug product post-termination
Whether the necessary rights are
assigned or licensed whether the
terminated party should receive a
royalty for the transfer or license of
those rights and what if any pre-
existing IP is licensed to enable the
non-breaching party to continue
commercializing the drug product
are all key factors for negotiation
The development contract should
also address other types of termi-
nation such as termination for
insolvency and termination with-
out cause (ie if one party decides
it no longer wants to commercial-
ize the drug product) In each case
the effect of termination on the IP
rights should be carefully analyzed
and a competent IP counsel should
carefully draft post-termination
assignments and licenses
conclusion
While IP lawyers are not equipped
with crystal balls they can be
extremely helpful in analyzing par-
ticular development commercializa-
tion and post-termination scenarios
all of which affect IP in a drug devel-
opment arrangement Contractual
provisions related to IP must be
carefully drafted to align with the
strategic business objectives of any
relationship and particularly one
whose purpose is the development
and commercialization of intellec-
tual property Without a clear con-
tract each collaborator is at risk of
losing important rights bp
Ad Index
AJINOMOTO ALTHEA 21
AVID BIOSERVICES INC 15
CYTOVANCE BIOLOGICS 27
EMERGENT BIOSOLUTIONS 13
EUROFINS LANCASTER LABORATORIES 7
SAFC BIOSCIENCES SIGMA ALDRICH 17
THERMO FISHER SCIENTIFIC 23
TOSOH BIOSCIENCE 11
WATERS CORP 3
Company Page
![Page 10: OUOURT NG I C RESOURCESfiles.pharmtech.com/alfresco_images/pharma/2019/03/08/... · 2019-07-22 · VIDEO INTERVIEW Biologics Development and Manufacturing Trends: Part I ... Media](https://reader034.vdocuments.us/reader034/viewer/2022050113/5f4aca886c0d6724390eb040/html5/thumbnails/10.jpg)
10 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Quality Risk Management
Biologics Development and Manufacturing Trends Part I
Eric Langer Managing Partner BioPlan Associates talks about the results from BioPlan Associatesrsquo 12th Annual Report and Survey of Biopharmaceutical Manufacturing Capacity and Production Trends in downstream processing protein A and single-use technology are discussed in Part I of this discussion For a discussion on productivity trends and biosimilars see Part II of the interview on page 25
With this structure in place
each risk can be assessed against
the probabil ity of occurrence
and severity impact and summa-
rized in a simple heat map
Risk-adjusted
net pResent value
For those decision milestones
that require investment in capi-
tal or resources a risk-adjusted
net present value (rNPV) is a
more acc urate method than
convent iona l N PV a na ly se s
for communicat ing the t r ue
cost of an investment decision
rNPV is sometimes referred to
as expected NPV (eNPV) rNPV
modifies the standard NPV cal-
cu lat ion of d iscounted cash-
f low analysis by mult iply ing
each cash flow by the estimated
probability that it occurs (the
estimated success rate) In the
language of probability theory
the rNPV is the expected value
rNPV is the standard valuation
method in the drug development
industry where sufficient data
exists to estimate success rates
for all RampD phases
conclusion
Biopharmaceutical products and
processes figure among the most
complex drug development life-
cycles within the industry A
structured QRM program that
integ rates s t anda rd i zed r i sk
assessment tools as part of the
overa l l product development
program can highlight the criti-
cal technical compliance and
regulatory risks when consider-
ing an outsourcing service pro-
vider The application of simple
QRM tools will provide structure
to the decision-making and eval-
uation process and when com-
bined with a simple knowledge
management framework provide
a foundation for all future prod-
uct programs Insight into the
risk and mitigation strategies can
reduce a programrsquos risk profile
significantly
RefeRences 1 ICH Q9 Quality Risk Management
(2005)
2 ICH Q5A-Q5E Quality of
Biotechnological Products
3 ICH Q8 Pharmaceutical Development
(2009)
4 Parenteral Drug Associates
Technical Report 42 Process
Validation for Protein Manufacturing
(2005) Bp
wwwtosohbiosciencecom
Tosoh Bioscience and TOYOPEARL are registered trademarks of Tosoh Corporation
Every mAb is unique
Your Protein A should be as well
TOSOH BIOSCIENCE LLC bull Customer service 866-527-3587 bull Technical service 800-366-4875 option 3
TOYOPEARLreg AF-rProtein A HC-650FHigh Capacity Protein A Resin for Monoclonal Antibody Purifi cation
0
10
20
30
40
50
60
70
80
2 35 5
Residence time (minutes)
DBC
for I
gG (g
L)
1 gL
5 gL
10 gLResin TOYOPEARL AF-rProtein A HC-650FColumn size 5 mm ID times 5 cmMobile phase 002 molL sodium phosphate 015 molL NaCl pH 74Residence time 2 35 5 minDetection UV 280 nm (10 breakthrough)Sample human IgG 1 5 10 gL in mobile phase
12 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources CROCMO Viewpoints
Biopharma Advances
Demand Specialized Expertise
Contract service providers share insights on biopharma market developments and the implications of biosimilar drug approvals
The ediTors of Biopharm international
The approval of the first biosimilar in the
United States as well as continuing consolida-
tion in the biopharma and contract develop-
ment and manufacturing markets are just
two indicators of the ongoing evolution of
biopharmaceutical development Representatives of
contract service providers shared observations trends
and projections with BioPharm International
Roundtable participants are Gary Chambers busi-
ness manager biopharma labs Europe SGS Bill
Hartzel director of strategic execution Catalent
Pharma Solutions Chris R Lively PhD director of
biopharmaceutical services PPD Scott Lorimer
VP Global Operations Patheon Biologics Eugene
McNally PhD executive director PPD Consulting
Rekha Patel global director large molecules devel-
opment and analytical solutions Catalent Pharma
Solutions and Mark Rogers vice-president SGS
Life Science Services USA
RegulatoRy and business tRends
BioPharm What regulatory changes have positively or
negatively impacted biopharmaceutical development
manufacturing processes
Ad
am
Ga
ult
Ge
tty Im
ag
es
info_contractmanufacturingebsicom | 1 800 441 4225 | emergentcontractmanufacturingcom
Aseptic FillFinish
Pre-Clinical Development
BDSManufacture
Clinical amp Commerical
Lyo CycleDevelopment
Emergent BioSolutions has a proven track record as a world-class provider of contract manufacturing services for both bulk drug substances and sterile injectable drug products Our team has successfully launched 20 commercial products and developedmanufactured over 200 clinical candidates for our clients
Emerging Capability
State-of-the art flexible single-use facility enables turnkey upstream and downstream solutions for clinical and commercial scale biopharmaceutical drug development
Emergent Contract Manufacturing
Enhancing Life in Every Single Dose
14 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources CROCMO Viewpoints
McNally (PPD Consulting) FDA
establ ished a new Off ice of
Pharmaceutical Quality in 2014
which we anticipate will have major
impacts on the biopharmaceuti-
cal development and manufactur-
ing process This reorganization
was designed to enhance quality
drug assessment by realigning sev-
eral elements of the preapproval
and surveillance inspection pro-
cess Integrating risk-based review
GMP inspection implementation
of quality by design and the new
FDA process validation guidance
within one office is expected to
significantly change the biophar-
maceutical development and manu-
facturing process
H a r t z e l ( C a t a l e n t P h a r m a
Solutions) In todayrsquos market there
are significant manufacturing
challenges in traditional glass vial
filling applications These chal-
lenges manifest in quality issues
with the final container closure
and may be related to microbial
contamination glass particulates
and foreign materials that lead to
necessary market action causing
supply issues
Lorimer (Patheon Biologics) The
greatest regulatory change in recent
times is the acceptance and approval
of biosimilars
BioPharm What business trends
have posit ively or negatively
impacted biopharmaceutical devel-
opmentmanufacturing processes
H a r t z e l ( C a t a l e n t P h a r m a
Solutions) Today there is a stronger
emphasis in the development life-
cycle on the delivery of the mol-
ecule to the patient and not just
the molecule itself Deliverydevice
experts are being added to teams
at Phase II to improve the delivery
beyond the traditional vial
Lively (PPD) Growing interest
in biopharmaceutical drug devel-
opment necessitates partnering
between clients and contractors to
increase industry capacity breadth
of capabilities expertise and
the experience required to bring
these drugs to market The client
will receive the most benefit by
selecting a high-quality contract
research organization (CRO) lab
that is able to meet its needs and
work collaboratively with the cli-
ent to ensure timely development
Lorimer (Patheon Biologics) The
trend of small biotech partner-
ing with large pharma for clinical
manufacturing and development
has certainly facilitated the full
development of more novel mol-
ecules Also the increasing trend
toward outsourcing of GMP biolog-
ics manufacturing ensures biopro-
cessing and testing is performed
by expert manufacturers with
proven track records in quality and
biomanufacturing This helps to
reduce the risk to clinical programs
and product safety
technicalscientific tRendsBioPharm Can you describe pro-
ductivity improvements your com-
pany has experienced from new
technologies
Patel (Catalent Pharma Solutions)
Catalent Pharma Solutions has sig-
nificant ongoing investments in
enhancing our large-molecule ana-
lytical capabilities and productiv-
ity to meet and advance current
industry needs Recent invest-
ments include the updatednew
technologies new assay strategies
and updated electronic systems
and processes
Lively (PPD) Evolving character-
ization expectations for biologics
have driven improvements in ana-
lytical equipment processes and
systems Ultra performance liquid
chromatography (UPLC) systems
have improved resolution and sen-
sitivity while reducing run times
In addition 2D high-performance
liquid chromatography (HPLC)
high-resolution mass spectrom-
etry (MS) allows for analysis of
samples incompatible with tradi-
tional MS Reporter gene bioassays
apply genetically engineered cell
lines both to directly model mech-
anisms of action and to amplify
assays for improved performance
with shorter incubations and
increased signalnoise relative to
standard bioassays
Lorimer (Patheon Biologics) The
main productivity improvement
has been increasing the through-
put of products in Patheonrsquos mul-
tiproduct biopharmaceutical GMP
facilities Single-use disposable
bioreactors and similar single-use
bioprocess equipment minimize
plant downtime which is tradi-
tionally required for line clearance
and product changeover The com-
plexity of product changeovers is
reduced by single-use technology
which decreases the need for clean-
in-place steam-in-place and qual-
ity control testing Typically line
Approval of the first
biosimilar in the
United States as well
as consolidation in
the biopharma and
contract development
and manufacturing
markets are just
two indicators of the
ongoing evolution of
biopharmaceutical
development
YOUR PARTNER FROM CONCEPT TO COMMERCIAL
1
42
5
3CELL LINE DEVELOPMENT
bull Cell line development amp selection
bull Cell line characterization amp optimization
bull Subcloning
bull Suspension adaptation
PROCESS DEVELOPMENT
bull Upstream development amp optimization
bull Media optimization feeding strategyamp design including DoE approach
bull Downstream development ampoptimization
bull Process optimizationprocess scale-up
bull Viral inactivationremoval study design
bull Formulation development amp screening
bull Up to 100L controlled bioreactors
bull Process validation
ANALYTICAL METHODS DEVELOPMENT
bull Development feasibility optimizationtransfer qualification amp validation of methods
bull Identity purity potency safety ampcharacterization
cGMP BIOMANUFACTURING
bull Commercially-licensed facility
bull Flexible manufacturing capabilities
bull Stainless steel amp single-use systemsfrom 100L-1000L
bull FDA EU amp ANVISA inspected
QUALITY AND REGULATORY SERVICES
bull Regulatory strategy amp submissions
bull cGMP CMC Section 7 support
bull In-process amp release testing
bull Stability testing
bull Reference standard generation
For more information please visit us at wwwavidbiocom or
e-mail businessdevelopmentavidbiocom
THE AVID
ADVANTAGE
16 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources CROCMO Viewpoints
clearance time is reduced by sev-
eral days
R o g e r s ( S G S L i f e S c i e n c e
Services) As an analytical ser-
vice provider SGS is constantly
in search of means to improve
its laboratory efficiencies partic-
ularly those that enhance turn-
around time without adversely
effecting quality With this in
mind substitution of HPLC for
UPLC rapid microbiolog ica l
screening methods and invest-
ment in automated approaches to
complex analytical problems such
as protein sequencing are now
being used within the SGS labora-
tory network
Chambers (SGS) From a CRO
point of view the main produc-
tivity improvements in analytics
have been from higher through-
put systems and data analysis The
move to these faster systems with
semiautomated data processing has
allowed us to improve turnaround
times which are passed on to cli-
ents in terms who win on faster
to market times and faster gono
decisions
BioPharm What additional tech-
nology improvements are needed
to improve the efficiency of bio-
processing
Lorimer (Patheon Biologics)
Process analytical technology
(PAT) for continuous monitoring of
bioprocesses is helping reduce the
variability on biopharmaceutical
manufacturing
Also biopharmaceutical devel-
opment and process validation
have been accelerated by the use
of mini-bioreactor systems which
enable a large amount of process
development data to be gener-
ated within a very short timeline
These multi-bioreactor systems
can reduce process develop -
ment timelines by months when
applied to early-stage or late-stage
bioprocesses
Rogers (SGS Life Science Services)
The development of many tech-
nologies follows a common path
from academia to commercial
application and nowhere is this
more evident than in the field of
bioprocessing In almost all exam-
ples the key to this progression
lies in the ability to simplify opera-
tional aspects of the technology
and improve throughput This has
in the past been clearly demon-
strated in for example the field of
mass spectrometry and is currently
evolving with techniques involved
in biophysical characterization
BioPharm What is the greatest
technical challenge facing biophar-
maceutical companies today
Hartzel (Catalent Pharma Solutions)
Cost to manufacture will continue
to be a major challenge for the
industry especially with the rise
of biosimilars and market pressures
to drive down the cost of medi-
cines However the products that
are coming to market are more
targeted which leads to smaller
batch sizes This is counter to the
manufacturing adage of being able
to leverage economies of scale to
drive out costs hence the need to
focus on alternatives technologies
and innovation to reduce the man-
ufacturing costs versus economies
of scale
Lively (PPD) Application of ana-
lytical techniques to better char-
acterize innovator and biosimilar
or follow-on products by physico-
chemical and functional methods
are required and will continue to
be driven by the complexity of
biologics development For exam-
ple changes in formulations may
cause different leachable profiles
requiring increasing emphasis on
extractablesleachables techniques
(ie high-resolution MS) to sup-
port characterization of formu-
lation effects identification of
degradation and impurities and
determination of their potential
impact through application of
potency bioassays
Lorimer (Patheon Biologics) Most
of the technical challenges for
manufacturing have been over-
come and the technologies for
development and manufactur-
ing have been widely adopted
Perhaps the greatest challenge is in
clinical development of novel and
originator molecules where in-vitro
model systems are still not a great
predictor of clinical performance
Rogers (SGS Life Science Services)
To highlight one technical chal-
lenge above all others in todayrsquos
biopharmaceutical industry is
very difficult The complexity of
biotherapeutics often results in
considerable technical difficul-
ties as for example in the area
of impurities recognition of host-
cell proteins (HCPs) and identi-
fication of structural variants at
trace levels are certainly high on
the list of technical concerns The
necessary inclusion of relatively
elaborate analytical techniques
such as sedimentation velocity
analytical ultracentrifugation (SVndash
AUC) within a traditional qual-
ity control release environment is
also not without problems
BioPharm What are the pros-
pects for continuous manufac-
turing to be firmly established in
bioprocessing What are the road-
blocks to implementation
Lorimer (Patheon Biologics)
Continuous product ion f rom
mammalian cell cultures has been
operated in perfusion bioreactors
for many years The main road-
block for continuous processing is
downstream processing of proteins
which currently demands discrete
and distinct unit operations for
removal of impurities removal
of contaminants concentration
of the products and formulation
each in separate controlled steps
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copy2015 Sigma-Aldrich Co LLC All rights reserved Sigma-Aldrich SAFC and EX-CELL are trademarks of Sigma-Aldrich Co LLC registered in the US and other countries
NEXT GENERATION MEDIA PLATFORM
18 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources CROCMO Viewpoints
and which are not currently ame-
nable to continuous processing
the Rise of biosimilaRs
BioPharm What impact w i l l
biosimilar drugs have on bio-
pharma businesses bioprocessing
approaches and the contract ser-
vices market
Rogers (SGS Life Science Services)
The European biopharma land-
scape has already experienced
impact of the biosimilar drug mar-
ket leading to rapid expansion of
traditional small molecule generic
manufactures into the bio arena
Recent FDA approval of the Sandoz
biosimilar Zarixo may be the seed
for similar changes in the US pro-
viding a potential new line of busi-
ness for established pharmaceutical
companies Contract service pro-
viders such as SGS who already
have considerable experience with
biosimilars are able to offer exper-
tise to businesses new to this mar-
ket and will no doubt benefit from
such expansion in the US
Lively (PPD) Increased invest-
ment in biosimilars is driving
interest in improving and stream-
lining the development processes
as well as the sensitivity and scope
of characterization assays used to
compare biosimilars and innova-
tor drugs The expanding capac-
ity needs result in partnerships
between clients and their contrac-
tors with the systems experience
and expertise to achieve the qual-
ity and speed required while meet-
ing all regulatory expectations for
product approval
Chambers (SGS) With nearly
20 years exper ience perform-
ing biosimilar analysis the big-
gest impact had been the massive
increase in the characterization
needed for biosimilars compared
to innovators (although higher
standards are now needed for new
innovators too) This has resulted
CMOs Add Capabilities
Consolidation in the contract development and manufacturing market has resulted in new capabilities and facility expansions
In May 2015 CMC Biologics announced that it is expanding its Copenhagen Denmark facility to increase its manufacturing capacity through the installation of six 2000-L bioreactors The bioreactors can be run singly or in groups simultaneously or sequentially and are part of the companyrsquos signature Bioreactor 6Pack single-use program The Copenhagen installation will begin initial GMP production in November 2015 and will feature three bioreactors to start Three bioreactors will be added at a later date to complete the configuration Meanwhile the Bioreactor 6Pack at CMCrsquos Seattle facility will complete its first GMP run in mid-2015 and will be ready for commercial launch by the end of the year Through its recent expansions CMC plans to expand its global capacity by more than 30000 liters in the United States and Europe
Also in May 2015 SAFC announced an expansion to its St Louis MO facility to support the commercial-scale production of antibody-drug conjugates The facility which is expected to be online and operational in the third quarter of 2015 was designed to meet SafeBridge category 4 compound handling requirements for highly active or cytotoxic compounds The expansion of an existing Carlsbad CA location will enable SAFC to offer fillfinish capabilities of viral products to its clients in the gene therapy viral vaccine and immunotherapy sectors
Rentschler announced in March 2015 that a 2000-L bioreactor that the company commissioned and built in six months is up and running The bioreactor will be integrated into existing manufacturing suites containing two 1000-L single-use bioreactors according to a company statement The companyrsquos twin bioreactor systemmdashdesigned for running two main bioreactors in parallel with one shared downstream processing unitmdashwill be functional by 2017 The twin system is estimated to double the companyrsquos production capacities for cell culture-derived proteins
In December 2014 FUJIFILM Diosynth Biotechnologies USA (FDBU) acquired Kalon Biotherapeutics adding viral and cell-culture vaccine expertise and capabilities In other activity FDBU started construction of a three-story 62000-ft2 facility in Research Triangle Park NC in January 2015 to house the companyrsquos process and analytical research and development process sciences and stability groups The expected completion date is Q4 2015
In September 2014 PCI a provider of packaging services acquired Biotec Services International a provider of clinical-trial services and temperature-controlled pharmaceutical services headquartered in Bridgend Wales UK The addition expanded PCIrsquos presence in the European Union and added packaging storage and distribution capacity and consultative services for clinical-trial supplies In January 2015 Biotec announced the validation of its clinical supply facility expansion which added almost 50 to the companyrsquos clinical trial materials handling capacity
wwwbiopharminternationalcom June 2015 BioPharm International eBook 19
Outsourcing Resources CROCMO Viewpoints
in challenges in data handling
interpretation and data presenta-
tion Biosimilars have also caused
the re-emergence of orthogonal
techniques like size exclusion
chromatographyndashmulti-angle laser
light scattering (SEC-MALL) and
SV-AUC for aggregation and cir-
cular dichroism (CD) and fourier
transform infrared spectroscopy
(FTIR) for higher-order structure
as critical analyses to understand
and compare and detect subtle
higher-order structural differences
between innovator and biosimilar
samples
Hartzel (Catalent Pharma Solutions)
The rise of biosimilar drugs will
dawn the next generation of bio-
logic manufacturing and force
the industry to look at new ways
of manufacturing to drive down
costs Therefore the industry will
seek new manufacturing partners
with strong technical expertise to
drive out costs through innovation
and operational excellence
Lorimer (Patheon Biologics)
Genera l ly b ios imi la r d r ugs
will encourage competitiveness
within the biopharma sector
Biomanufacturers expect increased
pressure on cost of goods and
pricing Biopharmaceutical con-
tract service providers with a flex-
ible multi-product operation and
proven track record in the indus-
try are well placed to ensure care-
ful control of manufacturing costs
and product quality Processing
approaches wonrsquot change in terms
of technology but there will be a
greater emphasis on operational
excellence to reduce costly inef-
ficiencies and improve yields from
bioprocesses As more biosimilars
come to the forefront and as the
industry trend for outsourcing
continues increasing operational
flexibility while maintaining the
highest quality standards will be
the keys to success
business challenges
BioPharm What is the greatest
business challenge facing biophar-
maceutical companies today
Lively (PPD) As with all phar-
maceutical drug development the
greatest challenge is getting new
life-changing and potentially life-
saving drug candidates to mar-
ket Biopharmaceuticals face more
challenges than traditional small-
molecule drug products because
the science of characterization
of such biologic drugs is rapidly
evolving along with the regulatory
landscape Those companies that
are best able to successfully char-
acterize and differentiate innovator
and biosimilar products for safety
and efficacy will have the greatest
opportunity to benefit
the knowledge gap
BioPharm In what areas do you
see knowledge or expertise gaps in
current biopharmaceutical compa-
nies Why do these gaps exist
Lorimer (Patheon Biologics) There
is a gap in translating good sci-
ence to industrial applications of
technologies that provide for reli-
able efficient cost effective man-
ufacturing at commercial scale
Maintaining a focus during early
development on eventual commer-
cial manufacturing requirements
while balancing limited develop-
ment resources requires a broad
base of coordinated organiza-
tional skillsets and a disciplined
approach
Hartzel (Catalent Pharma Solutions)
Devicedelivery expertise is an
area that has a potential gap For
biologics the historic default con-
tainer closure has been a tradi-
tional glass vial As the healthcare
industry seeks ways to improve
patient care and reduce costs the
delivery to the patient needs to
adopt new technologies and this
is why we have seen a rise of pre-
filled syringes and autoinjectors
These technologies will continue
to evolve and so will the demand
for devicedelivery experts
Lively (PPD) One of the chal-
lenges we see is the various levels
of knowledge and expertise that
exist between biopharmaceutical
RampD and the testing and regula-
tory industries That differential is
impacting those industriesrsquo ability
to fully consider and effectively
implement expectations and guid-
ance for physicochemical and
functional characterization expec-
tations of biologic drugs
Lorimer (Patheon Biologics) The
commercial biopharmaceutical
industry demands global sourc-
ing of materials services supply
and ultimately distribution to each
patient This requires a robust inte-
grated supply chain to deliver high
value products to patients on-time
and at the right quality Doing this
reliably and efficiently with long
production lead times and uncer-
tain market sales forecasts is an
industry wide challenge
Speed-to-market remains a key
challenge to the development of
biopharmaceuticals Speedy first-
time-in-man clinical trials can be
a major hurdle for small biotech
companies and large pharma alike
Rogers (SGS Life Science Services)
I believe there continues to be a
significant problem in the level of
fundamental scientific expertise
within many biopharmaceutical
businesses In part this may be
attributed to the lsquokitrsquo and lsquoblack
boxrsquo approach of many modern
day technologies Due to the
complexity of many biopharma-
ceuticals their development and
success as therapeutics requires a
comprehensive range of scientific
disciplines and expertise which
can be difficult to fully realize
internally particularly for small
and mid-size companies bp
20 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources FillFinish
FillFinish Trends
Automation and disposables continue to reduce human error
Eric s LangEr
Fillfinish operations continue to be domi-
nated by trends in automation and the adop-
tion of single-use equipment But these are
by no means the only factors affecting these
high-value operations according to BioPlan
Associatesrsquo latest biomanufacturing study (1) Fill
finish processes are among the most outsourced
activities in biomanufacturing today and a service
providerrsquos capacity for vialing pre-filled devices
and lyophilization is crucial In a recently pub-
lished whitepaper (2) BioPlan Associates determined
that there is sufficient global in-house capacity
for biologics but the need continues to grow for
greater access to specialized outsourcing competence
Whatrsquos trending is significant improvements in auto-
mation and operations
AutomAtion And single use defining Cmo strAtegy
The top trends today involve automation and devel-
opment of better disposable technologies As part of
the BioPlan study biomanufacturers were asked to
select the trends they believe to be the most impor-
tant in fill and finish today The top three trends
are single-use equipment automation in full isolator
units and facilities becoming multi-product ori-
ented (see Figure 1)
Other important trends were noted including
bull Increased serialization and product labeling for
anti-counterfeiting
Eric s LangEr is president and managing partner at BioPlan Associates Inc elangerbioplanassociatescom tel 3019215979 wwwbioplanassociatescom
Ma
ria T
ou
tou
da
ki
Ge
tty Im
ag
es
WITH ALTHEA YOU HAVE THE POWER TO MAKE
You have the power to make a difference To make new therapeutics that improve quality of life and inspire a healthier world To do this you need a manufacturing partner who embraces your every challenge as its own who shares your unwavering tenacity and dedication from clinical studies through commercial success Thats The Power To Make
PLAY VIDEO
CONTRACT
MANUFACTURING
Q Development
Drug Substance
lj Drug Product
(D Al TH EA I THE POWER TO MAK A MEMBER OF THE AJINOMOTO GROUP
22 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources FillFinish
bull More f i l l f i n i sh fac i l i t ie s
o p e r a t i n g i n d e v e lo p i n g
regions
bull C o m p u t e r - b a s e d v i s u a l
i n s p e c t i o n a r t i f i c i a l
intelligence
bull Use of complex administration
systems
single-use equipment in fillfinish operAtionsT h e a d o p t i o n o f d i s p o s -
ab le e qu ipme nt i n f i l l f i n -
i s h o p e r a t i o n s e l i m i n a t e s
cross-contamination risks and
adds flexibility in process scale
While regulatory rest r ic t ions
may be increased by the adop-
tion of such equipment single-
use appl icat ions a lso enable
contract manufactur ing orga-
nizat ions (CMOs) to increase
fac i l i t y ut i l i z at ion t h rough
multi-product strategies which
can decrease their cost of goods
Experts in the f ield discussed
these trends
Peter Pekos CEO and president
of Dalton Pharma Services a fill
finish CMO says ldquoFor a CMO
disposables can be attractive hellip
For example a disposable isola-
tor can be packed and stored pre-
sterilized for use when needed
a f ixed isolator requires f ixed
space at all times Disposables
also allow a CMO to handle proj-
ects using specific systems for
non-typical project needs such
as disposable isolators without
going to the expense of buying
permanent isolator infrastruc-
ture Disposables do not obviate
the need for technical expertise
hellip so the need for a CMO isnrsquot
really reduced In fact CMOs
with expertise in single-use sys-
tems hellip can make them more
attractiverdquo
Mar t ina Fe r neman cor po -
rate development manager at
Recipharm bel ieves that the
adoption of single-usedispos-
able equipment is now impacting
f i l l and f inish ldquoIn mult ipur-
pose sites the cleaning proce-
dures will become more crucial
to avoid cross contamination
Single-use equipment [also] has
the advantage of shorter lead
t imes and lower procurement
costs Since no cleaning proce-
dure has to be established and
aseptic connections are easier to
be built-up the use of single-
use equipment is not only faster
but also safer than conventional
equipmentrdquo
AutomAtion in full isolAtor unitsW hi le s ing le -use equ ipment
adoption may be one of the hot-
test f i l lf inish trend automa-
tion technologies may actually
be experiencing more rapid rates
of implementation among bio-
manufacturers Indeed sepa-
rate results from BioPlanrsquos 12th
annual study suggest that the
industry wi l l be as l ikely to
implement automation technolo-
gies as they will use single-use
f i l l-f inish devices dur ing the
next 24 months
The removal of human factors
is a key to improving product
quality Isolators and automa-
tion are therefore key drivers
as facilities seek to improve their
i n f r a s t r u c t u r e I n nov a t io n
around equipment and facilities
able to handle multiple products
is going to continue Flexibility
is key as the reduced flexibility
of isolators (and higher cost) in
relation to traditional restricted
access barrier (RAB) systems may
deter some CMOs from adopt-
ing isolators The jury is st i l l
out because the decision fac-
tors between RAB and isolators
are complex and this tends to be
a high-cost decision often left
to the larger f illf inish CMOs
ldquoCMOs will adopt isolator tech-
nologies in their processes to
meet industry needs and reduce
r isk In some cases this wil l
also include disposable isolators
which can offer the benefits of
fixed isolators but add a degree
of f lexibil ity to the manufac-
turerrdquo Pekos notes
According to Ferneman adopt-
ing automat ion in ful l isola-
tor units to reduce the need for
operators is a trend seen in the
CMO market ldquoUse of barr ier
technology (RABS or isolators)
should ensure optimal protec-
t ion of ster i le areas Isolators
bear a better potential to prevent
biocontamination Since the iso-
lator is a closed system a lower
air quality than in RABS systems
can be usedrdquo For freeze-dried
products the RABS system is a
better choice because loading
has to be performed in class AB
surrounding
Fig
ur
e 1
is
co
ur
te
sy
oF
th
e a
ut
ho
r
Figure 1 selected bioprocessing fllfnish trends in 2015
Single-usedisposable equipment
adoption55
36
35Facilities becoming more multi-
product-use oriented
Automation in full isolator units
reduce need for operators
More compounds More accuratelyFaster than ever
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Thermo Scienti ctrade Orbitrap Fusiontrade MSUnprecedented depth of analysis and
throughput for biological discovery
Thermo Scienti ctrade TSQ Quantivatrade MSLeading SRM sensitivity and speed
in a triple quadrupole MSMS
Thermo Scienti ctrade Q Exactivetrade MSScreen and quantify known and unknown targets with HRAM Orbitrap technology
copy 2
014
Ther
mo
Fish
er S
cien
tifi c
Inc
All
right
s re
serv
ed A
ll tr
adem
arks
are
th
e pr
oper
ty o
f The
rmo
Fish
er S
cien
tifi c
and
its
subs
idia
ries
bull Discover more at thermoscienti ccomquan-transformed
24 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources FillFinish
Cmos stAying
AheAd of the Curve
In the whitepaper on in-house
fillfinish operations for recom-
binant therapeutics (2) BioPlan
found relatively low average in-
house capacity utilization rates
for lyophilization (55) pre-filled
devices (58) and vialing (70)
This finding suggests that for fill
finish CMOs the real value isnrsquot
necessarily in providing additional
flexible capacity but rather in posi-
tioning themselves as providing
highly sophisticated and novel
technologies and expertise in fill
finish services Indeed CMOs are
expected to have state-of-the-art
equipment As Pekos notes ldquoCMOs
who implement flexible and inno-
vative technologies to make man-
ufacturing or development more
efficient faster compliant or more
economical all serve to make them
more attractive to customersrdquo
For CMOs that make use of
innovative fillfinish technologies
there appears to be a good deal
of demand Results from BioPlanrsquos
annual studies indicate that fill
finish services are among the most
widely and heavily outsourced
biomanufacturing activities today
and are also among the activities
that biomanufacturers are most
likely to outsource at significantly
higher levels in the future
Biomanufacturers and CMOs are
actively looking to their fillfin-
ish equipment suppliers and are
beginning to demand additional
new technologies innovation and
product development In 2014 for
example when the top areas that
biomanufacturers wanted their
suppliers to focus their develop-
ment efforts on were measured
fillfinish services topped the list
cited by 23 of biomanufacturers
Not only did that figure represent
a substantial increase from years
past (13 in 2011) but it was also
ahead of other services including
upstream and downstream process
development services
Fillfinish will continue
to be an area of
growth for CMOs
There are a number of areas in
which suppliers can add value to
fillfinish innovation according
to industry experts Jim Agalloco
president of Agalloco amp Associates
in Belle Mead NJ says ldquovendors of
equipment and components to fill
finish must continue their roles as
technology leaders Innovation in
this market has always been sup-
plier driven because the operating
firms do not have the necessary
expertise Collaboration between
equipment manufacturers and
component suppliers is essential
for implementation of new con-
tainer systems single-use dispos-
ables and other advancesrdquo
Ronald Malone senior principal
scientist at Novartis Vaccines says
ldquoBlow-fill-seal containerclosure
systems are beneficial for small-
volume parenterals However over-
all cost may still be higher per unit
than traditional vialstopper fill-
ing Vaccines and biologicals can
benefit from single-dose disposable
systems that drive down the cost
of the containerclosure system
This will assist the global supply to
developing world countries where
these products are truly neededrdquo
W B W i e d e r s e i m o f
PharmaBioSource in Wayne PA
states ldquoWe see smaller higher
technical facilities inclusive of dis-
posables (isolators and not RABS)
and advanced aseptic work cell
technology as the wave of the
futurerdquo
WhAt does the future hold
BioPlanrsquos survey data and indus-
try interviews indicate that fill
f inish will continue to be an
area of growth for CMOs that
maintain the required technical
quality and regulatory expertise
in this segment Experts have
taken note of CMOsrsquo introduc-
tion of smaller filling machines
for syringes or vials a trend that
may be in response to the indus-
try-wide move towards smaller-
scale manufactur ing projects
This shift may be accelerated by
the advent of biosimilars which
should provide an increasing
number of projects for fillfin-
ish CMOs although likely on a
smaller scale This increase in
projects could lead to potential
mergers and acquisitions with
some experts noting that fillfin-
ish CMOs are already engaging
in this trend toward larger capac-
ity and global operations
Indeed within the past 18
months a number of acquisi-
tions have occurred including
Pfizerrsquos acquisitions of Hospira
a nd In noPha r ma Pat heonrsquos
mergers in the contract services
space IDT Biolog ika invest-
ments Vet ter invest ing USD
$100 million to upgrade fill-fin-
ish facilities in the United States
a nd Ger ma ny a nd Ba xte r rsquos
investment in German facilities
and numerous others (3)
For CMOs to stay ahead of the
curve they will likely need to
continue to adopt disposables
technologies and advance their
automation in full isolators Ray
Cardin of PharMax Consulting
says ldquoIncreased use of dispos-
able pre-sterilized f illing tech-
nologies [are future trends] The
combination of these pre-ster-
ilized units with the coming of
age of ster i le connectors that
provide high sterility assurance
wwwbiopharminternationalcom June 2015 BioPharm International eBook 25
Outsourcing Resources FillFinish
Biologics Development and Manufacturing Trends Part II
Eric Langer Managing Partner BioPlan Associates talks about the results from BioPlan AssociatesOtilde 12th Annual Report and Survey of Biopharmaceutical Manufacturing Capacity and Production Langer discusses what respondents indicated as the number one trend in biologics manufacturing improving efficiencies and the biosimilars market
in less clean environments is
changing the way aseptic pro-
cesses are designedrdquo
Gordon Leichter PhD Eastern
r e g io n a l s a l e s m a n a ge r a t
Belimed in Charleston SC states
ldquoAutomat ion in fu l l i solators
wil l el iminate operator inter-
vention and laser-sealed vials
Automation will become more
integral to building automation
and enterprise systemsrdquo
Douglas Stockdale vice-presi-
dent CMCTechnical Operations
Hi l lhurst Biopharmaceut ica ls
Los Angeles CA says ldquoIndustry
will continue pushing the PAT
[process analytical technology]
envelope to f ind a lternat ive
methods to improve in-process
methodologies and processesrdquo
Fe r ne ma n add s ldquoCu r r e nt
trends in fillfinish innovation
will probably focus the market
authorization holders on a few
strategic products resulting in
outsourcing of a bigger share of
products overallrdquo
ConClusion
Until recently the handling of
ster i le l iquids in the pharma-
ceutical industry has relied on
relatively consistent techniques
during the past 100 years with
relatively slow changes in tech-
nologies and regulations result-
ing in incremental improvements
in safety efficiency and prod-
uct quality During the past 20
years however costly biologics
have taken a prominent indus-
try role The value of these drugs
can often be measured in tens of
thousands per dose This has put
greater pressure on these down-
stream fillfinish operations to
ensure quality safety and cost-
efficiency are not compromised
at this crucial late stage in manu-
facturing Trends in fillfinish for
recombinant therapeutics include
the increased use of isolator
technologies more high-speed
operations and other innovative
approaches including single-use
processing As a result of industry
research BioPlan expects more
outsourcing of fillfinish opera-
tions in coming years
referenCes 1 BioPlan Associates 12th Annual
Report and Survey of Biopharmaceutical
Manufacturing Capacity and Production
(Rockville MD April 2015) www
bioplanassociatescom
2 BioPlan Associates Trends in Aseptic
Bioprocessing Capacity for the Fill and
Finish of Recombinant Biologics An
Analysis of US and European In-house
Capacity and Capacity Utilization (BioPlan
Associates December 2014)
3 Information derived from BioPlan
Associatesrsquo BioFacilities Newsletters Bp
26 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Cell Therapy
Taking a ldquoDevelopment-by-Designrdquo
Approach to Cell Therapies
Whether outsourcing or developing cell therapies in-house success demands a focus on quality cost of goods
and sustainability from the start
Agnes shAnley
Cell therapies both autologous and allo-
geneic have come a long way in just a
few years Countries around the world
most recently Japan have passed regula-
tions designed to speed development of
these treatments which are now a big and growing
global business
In 2013 according to the Pharmaceutical Research
and Manufacturers Association 69 cell therapies six
of them autologous or patient-specific treatments
were in clinical trials or being reviewed in the United
States alone 15 of them in Phase III trials (1)
The road is littered with failures however often
in clinical stages This has been traced to problems
with manufacturing and failure to understand pro-
cess requirements earlier in the development process
Table I outlines manufacturing issues
As a growing number of Big Pharma companies
explore the potential for immune regenerative and
other cell therapies equipment manufacturers includ-
Agnes shAnley is senior editor of BioPharm International
SC
IEP
RO
GE
tt
y Im
aG
ES
wwwcytovancecomResponsive Reliable Resourceful
Your partner in biopharmaceutical contract manufacturing of therapeutic proteins and antibodies from mammalian cell culture and microbial fermentation
28 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Cell Therapy
ing Pall Corp EMD Millipore
and GE Biosystems have set up
centers of excellence to focus on
developing equipment for this
new market Engineering compa-
nies such as Invetech and Instrom
are developing equipment specific
to this niche
More CDMos are entering
Cell therapy Market niChe
Demand for spec ia l i zed ce l l
t he rapy ma nu fac t u r ing a nd
development serv ices is a lso
growing and has attracted Lonza
Bioservices Cognate BioServices
WuXi AppTech and Roslin Cells
among others
NeoStem is fol low ing t wo
paths pursuing its own cel l
therapy pipel ine and explor-
ing contract services through
its contract development and
manufac t u r ing organ i zat ion
(CDMO) subsidiary Progenitor
Cell Therapy (PCT) With bases
in Irvine and Mountain View CA
and Allendale NJ PCT is cur-
rently working with Intrexon and
Fibrocell on connective tissue
treatments and with the United
K ingdomrsquos Adapt immune on
oncology treatments
A new CEO David Mazzo with
a doctorate in analytical chemis-
try and experience running both
private and public international
biopharma companies assumed
NeoStemrsquos leadership in January
He sees no conflict between grow-
ing a pipeline and a contract man-
ufacturing business
ldquoWe are not trying to be two
di f ferent companies and we
do not see the two competing
with each otherrdquo says Mazzo
in an interview with BioPharm
Inte rnat ionalrsquos s i ster publ ica-
tion Pharmaceutical Technology
during his second week on the
job ldquoInstead there is a symbi-
otic relationship between themrdquo
As he sees it the companyrsquos
track record in developing prod-
ucts should attract more spon-
sors ldquoProblems in development
usually occur at the interfaces
Our unique experience of having
lsquodone that beforersquo should be help-
fulrdquo he says
In January PCT entered a
partnership with Invetech an
equipment design firm based in
Australia with offices in San Diego
to develop automated equipment
for cell therapy manufacturing Fig
ur
e 1
is
co
ur
te
sy
oF
in
ve
te
ch
Figure 1 Part of an automated solution being developed by neostem and invetech Automating processes is key to reducing costs
wwwbiopharminternationalcom June 2015 BioPharm International eBook 29
Outsourcing Resources Cell Therapy
The two companies have already
been working together for a year
now honing the design and speci-
fications for the instrumentation
says NeoStemrsquos Chief Scientific
Officer (CSO) Robert Preti The
equipment will tackle cell therapyrsquos
most challenging side autologous
treatments where the manufactur-
ing lot is the patient dose adminis-
tered at the patientrsquos bedside
As Preti notes there really isnrsquot
much available today in the way
of automated equipment for cell
therapy especially on the autolo-
gous side The equipment will sep-
arate and wash cells among other
functions
labor-intensive
proCesses aDD Cost
So far Preti says the company
is evaluating the evolving equip-
ment in NeoStemrsquos own manu-
facturing efforts ldquoOne of the
largest commercial bottlenecks
is the heavy labor required by
processes especially for patient-
specific uses where one batch is
one patientrdquo
The cost of goods i s ver y
high Preti says ldquoSuccess long-
term will require a whole new
approach to development The
goal is to provide high qual-
ity and sustainabilityrdquo he says
Removing manual operat ions
and human error from the pro-
cess will be crucial
Invetech has been work ing
on cell therapy process scale-up
automation for more than 10
years and has successfully com-
pleted projects in North America
Europe and Asia for companies
that include Argos Therapeutics
Aa s t rom CCR M Hu mac y te
Innovacell Janssen kSep Systems
MolMed Organovo and ViaCyte
accord ing to R ichard Grant
global VP of the companyrsquos bio-
pharma operations who has been
with the company for more than
14 years
ldquoThe goal is to develop a mix
of equipment and manufactur-
ing st rateg ies that maximize
quality scalability and sustain-
ability with an eye toward cost-
effect iveness and commercial
viabilityrdquo Grant says Invetechrsquos
solutions typically tailor a mix of
OEM and customized equipment
to the clientrsquos processes The com-
pany recently commercialized
equipment used to manufacture
Janssenrsquos macular degeneration
treatment
Costs of current manufactur-
ing processes for both autologous
and allogeneic therapies are dif-
ficult to peg Last year experts
at University College London
attempted to pinpoint the cost and
overall economics of allogeneic
cell therapy using single-use tech-
nologies (2)
What is clear for both alloge-
neic and autologous systems is
that cell therapy development
Table I Manufacturing scenarios for cell therapies
Attributes Off-the-shelf therapiesPatient-specifc
therapies
Source material Always allogeneic Autologous or matched allogeneic
Batch size Many patients One patient
Business model Similar to pharmabiopharma New
Scaling Scale up (Increased lot size) Scale out (Increased number of lots)
Comparability vs scale Higher concern Lower concern
Manufacturing design drivers
Mission critical success + +++
Optimized process yield +++ +
Dimensional efficiency ++ +-
Integration +- ++
Automation + ++
source invetech
Table II Measuring comparability risk
Risk level Example Timing
None Automated sterility test Before biologics license application
Low Change in process unit op and cell journey is the same
Before 50 accrual in pivotal trials
Medium Change in process unit op and cell journey is similar
Before initiation of pivotal clinical trials
High Change in process unit op and the cell journey is matched
Some Phase II clinical data
source invetech
30 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Cell Therapy
and manufacturing costs are cur-
rently prohibitive ldquoThe starting
points can vary dramaticallyrdquo
Grant says He recalls one cus-
tomer whose autologous process
ran to $80000 per patient in early
stage clinical trials Automation
he says could reduce costs by
40ndash90 depending on the ther-
apy involved
DevelopMent by Design
But before one can automate any
process one must understand it
NeoStem and PCT like a growing
number of companies are taking
the principle of quality by design
(QbD) to heart in their work
Mazzo arguably one of few
life-science company CEOs to
even articulate the QbD concept
explains that the company has
gone a step further and broadened
the International Conference on
Harmonization guidances adopted
by FDA into ldquodevelopment by
designrdquo (DbD)
ldquoWe say first consider the end-
point then take process as is and
understand its unit operations
Develop inputs and outputs and
discrete steps and define the pro-
cess in a way that promotes under-
standingrdquo he says
ldquoThis is challenging given prod-
uct complexity but there is a need
to understand the mechanism of
action very well so you put each
process in this overall envelope
of DbD and consider the cost of
goods scalability and sustainabil-
ityrdquo Preti adds ldquoYou consider the
process from the end only this
time each batch is an individual
patientrdquo
The critical part is defining and
measuring process needs he says
ldquoProduct definition is very impor-
tant particularly the quality target
product profilerdquo explains Brian
Hampson VP of manufacturing
development and engineering at
PCT in an Oct 22 2014 webcast
for the International Society for
Cell Therapy (3)
have the enD in MinD
Such t h ings a s for mulat ion
issues dosage potency impu-
rities residuals and microbial
assurance need to be thought out
clearly from the start Hampson
says as well as indications for
use geographic market projec-
tions cost-of-goods targets and
IP issues
The profile needs to be a liv-
ing document that changes as the
product takes shape Hampson
says There is a tendency for peo-
ple in the industry to ignore the
product profile until they have
all the answers says Hampson
ldquoInstead it needs to be developed
really early even when you donrsquot
have all or even many of the
answers hellip you can leave them
as blanks and continue to review
add to and updaterdquo
The result is not only a tool for
better understanding the prod-
uct process and mechanism of
action but a communication tool
for stakeholders
When to start DbD for cell ther-
apies ldquoThe temptation is to begin
later in the game when you need
reasonable COGS and you need
to be sure of sustainable manu-
facturingrdquo says Hampson ldquoThe
key thing is comparability and
anticipating its implications early
in the clinical program It needs
to be flexible at the early stagesrdquo
Hampson says ldquoBut as you near
Phase III you need to lock in your
equipment evolves
In the bioreactor area there is great interest in moving from 2-D to 3-D processing to enable the processing of the cell volumes required something that companies such as Israelrsquos Pluristem have been doing for some time
Equipment designer Instrom is partnering with companies including BRTI Life Sciences to focus on 3-D cell matrix technologies developed by Dr John Brekke EMD Millipore has been partnering with PharmaCell BV to use its Mobius bioreactor platform to expand and harvest HepRG cells GE Sciences is also evaluating Wave and other systems and set up a center of excellence in Wales recently
In other equipment areas Pall Corp has been partnering with CMDG LLC on cord blood processing technology Following are some of the equipment manufacturers and systems applied in cell therapy development and manufacturing
bull Beckman Coulter bull Corning Cell Stacks and Cell Cube
bull EMD Millipore bull GE Biosciences
bull Thermo Scientificrsquos Nunc Cell Factories bull Pall Corp
wwwbiopharminternationalcom June 2015 BioPharm International eBook 31
Outsourcing Resources Cell Therapy
processrdquo Table II summarizes issues
and points where changes will be
easier
Thus Hampson suggests that
companies whether work ing
with CDMOs or in house think
through such issues as cost of
goods scale and sustainabil-
ity much earlier than they typi-
cally do today ldquoYou donrsquot need to
spend money on these issues but
you do need to think about themrdquo
Hampson says ldquoQuality must be
a key issue even at Phase II trials
and early action pays off laterrdquo
In addition he suggests that
companies th ink about the
e nt i r e p r o c e s s c o mp r e he n -
sively ldquoThere is often a tendency
to focus on the core processing
stepsrdquo Hampson says ldquoBut you
really need to think about every-
thing from collection of mate-
rial through to administration
of product to the patient and all
steps in betweenrdquo
For ce l l therapies d ispos -
able equipment and closed pro-
cesses can be an effective way to
reduce costs and improve quality
and compliance ldquoThey can allow
you to isolate different processes
so that they can share a Class
100000 cleanroom environmentrdquo
Hampson says
ldquoInvesting in automated informa-
tion management can also pay offrdquo
he says ldquowhere an electronic batch
record system that is fully validated
can enable release-by-exception
reducing error documentation
time and overall quality assurance
costsrdquo Hampson says
In addition he notes it is
important to look at costs compre-
hensively an increase in one cost
can for example reduce overhead
improve process sustainability and
cost of goods Table III outlines the
issues
regulations evolve
Cell therapy is still a new area
for regulators and as Preti says
some guidelines are clear and oth-
ers arenrsquot ldquoDevelopment by design
is needed throughout the pro-
cess but the piece we still struggle
with the most is mode of action
(MOA) and product characteriza-
tion Regulatory agencies under-
stand that it is difficult to pinpoint
MOArdquo
Preti emphasizes the importance
of working with regulators ldquoYou
can be in a position to inform and
influence regulations as products
are developedrdquo he says
For any company moving into
this brave new world top-level ques-
tions are needed Preti says empha-
sizing the following ldquoDo you have
an understanding of scale Can you
scale up from very small Can you
characterize the process and control
it for reliability and qualityrdquo
In the stem cell area in particu-
lar this is crucial Preti said since
the product relies heavily on the
process ldquoManufacturing can be
thought of as patient administra-
tion It cannot be separated in
the same way that it can for tra-
ditional medicinesrdquo For contract
suppliers he adds demonstrated
success will be important and
sponsors should consider whether
a prospective partner will be able
to stay with them for the long run
referenCes 1 P Hourd et al Regulatory Challenges
for the Manufacture and Scale-
Out of Autologous Cell Therapies
Massachusetts General Hospital
(Cambridge MA 2013)
2 S Farid et al Biotechnol Bioeng
111(1) 69-83 (January 2014)
3 R Grant Building Deliverable Cell
Therapeutics A Methodical Approach
to Manufacturing Development
(Webinar Oct 22 2014) bp
source invetech
Justifcation driversChange in cost
doseDevelopment
estimate
Unit Op Ref
Change decription
Comparability risk
Quality COGs Scale Sustainability LaborMaterials outplant
Cost Time
P-2 Process change 1 Medium X X darr $ $$$ TT
P-3 Process change 2 High X X X darr $$$ $$$$ TTT
P-4 Process change 3 Low X X darr $$ $$ TTT
P-2 Process change 4 Low X $$ T
QC-4 In-house QC test None X TT
QA-1Electronic Batch
RecordNone X X X
darr $$$$
TTTT
Table III Process changes timing and comparability risks cogs is cost of goods Qc is quality control
32 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Intellectual Property
Protecting Intellectual Property
in Engagements with CMOs
Important IP contractual provisions should be included when working with CMOs
Jennifer L CoLLins
Biotechnology and pharmaceutical companies
often engage contract CMOs to assist with
the development of their drugs This type
of arrangement naturally involves the devel-
opment of intellectual property (IP) so it is
important for both the CMO and the sponsor to iden-
tify pre-existing intellectual property and also define
how rights to new IP will be allocated protected and
enforced by and between the companies
If the arrangement with the CMO is a traditional fee-
for-service arrangement where the company pays the
CMO service fees to perform development work on its
behalf then generally all new IP (other than improve-
ments to the CMOrsquos manufacturing technology) will be
owned by the biotechnology or pharmaceutical com-
pany that engaged the CMO On the other hand if the
arrangement between the CMO and the biotechnology
or pharmaceutical company is more of a collaborative
arrangement where both parties share the costs of devel-
opment as well as any profits from the commercializa-
tion then IP concerns become much more complicated
In that case in addition to describing which party will
Jennifer L CoLLins is a technology and licensing attorney with Morningstar Law Group jcollinsmorningstarlawgroupcom
Fa
na
tic S
tud
ioG
ett
y Im
ag
es
wwwbiopharminternationalcom June 2015 BioPharm International eBook 33
Outsourcing Resources Intellectual Property
own the new IP the contract should
sort out which party will be respon-
sible for obtaining and maintaining
patents on the new IP controlling
litigation against infringers and
defending the IP against challenges
In addition the parties should agree
upfront on how the IP may be used
by each party following various ter-
mination events so that the parties
are not left fighting about such mat-
ters at a time when they may not be
inclined to agree to anything
In both arrangements without
specific contractual provisions to
define and protect the new IP a
biotechnology company or phar-
maceutical company that uses a
CMO for development is at risk of
losing control of and possibly own-
ership of important improvements
to its drugs This article discusses
IP contractual provisions that
should be included in each type of
arrangement
Fee-For-service
development work
Traditionally CMOs perform fee-for-
service development work where
a biotechnology or pharmaceutical
company engages the CMO to per-
form this work for a fixed fee In this
type of arrangement the CMO is a
service provider and typically takes
no ownership interest in the drug or
product that is being developed or
in improvements to an existing drug
or product that is being tested or
developed The contract governing
the relationship nevertheless must
be clear about the IP rights that are
owned and licensed by each party
If the contract does not provide
for proper assignments of IP to the
biotechnology or pharmaceutical
company then it is likely that the
CMO will own any improvements
or other inventions that it develops
in the performance of the develop-
ment services even if that is not the
intent of the parties
Without signed written contracts
that state otherwise under United
States patent law the inventor of
a patentable invention or improve-
ment will own the invention or
improvement even if the inventor
is engaged to develop the invention
or the improvement for a customer
or other third party To ensure
that the biotechnology company or
pharmaceutical company obtains
all the patent and other IP rights
in developments inventions and
improvements created in the per-
formance of services by the CMO
the governing contract between the
biotechnology company or phar-
maceutical company and the CMO
must include written present assign-
ments of those IP rights from the
CMO to the company Indeed based
on recent cases it is crucial that the
assignment clause in the contract
be a ldquopresentrdquo assignment mean-
ing that it must state specifically
that the CMO ldquohereby assignshelliprdquo
rather than a clause stating that the
CMO ldquoagrees to assignrdquo rights in the
future Otherwise the contract will
be interpreted as a promise to assign
rights in the future and the bio
pharmaceutical company will have
to go back to the CMO at some later
point in time for a separate writ-
ten assignment of rights to obtain
all patent and other IP rights in the
developments
While it sounds logical and
straightforward that the CMO
would assign all inventions created
in the development work to its cus-
tomer it is not always that simple
in practice What if the CMO devel-
ops an improvement to its manu-
facturing process in the course of
the development work Most CMOs
will want to reserve ownership of
any improvements to the CMOrsquos
existing IP and confidential infor-
mation This position is not unrea-
sonable as long as the customer
ultimately has the rights it needs in
all new inventions including those
owned by the CMO to take the drug
forward through further develop-
ment and commercialization One
must sort out IP allocation by sub-
ject matter To achieve this allo-
cation the development contract
typically will state that each party
retains ownership of all IP that it
owns as of the date of the contract
(all pre-existing intellectual prop-
erty) It will also state that the cus-
tomer owns its proprietary drug
and all improvements to the drug
or the customerrsquos confidential infor-
mation developed by either or both
parties The development contract
also may state more generally that
the customer owns all inventions
improvements and IP rights related
to the customerrsquos drug With respect
to the CMO and its IP the develop-
ment contract may state that the
CMO owns all improvements to the
CMOrsquos manufacturing process and
to its other pre-existing intellectual
property Again this reservation is
not unreasonable The customer
however should determine whether
it requires access to those improve-
ments or inventions to complete the
development and commercialization
of its drug If such access is necessary
the customer should either negotiate
a license (which may be royalty-free
or royalty-based depending on the
circumstances) to use such improve-
ments or inventions to develop and
commercialize the drug or the cus-
tomer should negotiate the terms
under which the CMO will continue
to use the improvements or inven-
tions to perform development work
andor manufacture the drug for the
customer
In the fee-for-service arrange-
ment the assignment and licensing
of IP rights in new inventions and
improvements is the key intellectual
property issue Intellectual property
considerations become much more
complicated when the biotechnol-
34 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Intellectual Property
ogy or pharmaceutical company
partners with a CMO in the devel-
opment of a new drug or product
where the parties share development
costs and profits from commercial-
ization of the drug or product
cmo as collaborator
Although not as common as the
fee-for-service arrangement a CMO
may partner with a biotechnology
or pharmaceutical company in the
development and commercialization
of a drug or product Generally both
parties are bringing pre-existing IP
to the collaboration such as a drug
from a biopharmaceutical com-
pany and proprietary drug delivery
technology from the CMO In this
scenario the CMO is taking a long-
term interest and often a part-own-
ership interest in the success of the
drug product
Instead of getting paid an hourly
rate or fixed fee for development
work on the drug product the CMO
may share the cost of development
work with the biotechnology or
pharmaceutical partner in exchange
for a share of the profits when the
drug or product is commercialized
Other costs involved in the develop-
ment and commercialization of the
drug or product that may be shared
include the cost of patent prosecu-
tion and the cost of patent litigation
if the drug product is challenged or
if it is misappropriated or infringed
To secure its interest in the profits
from commercialization of the drug
product the CMO may want to take
an ownership interest in the intel-
lectual property rights in the drug
product All of these issues must be
carefully addressed in the develop-
ment contract to avoid both finan-
cial and IP disputes
As with the fee-for-serv ice
arrangement the parties must
allocate ownership of intellectual
property rights pertaining to the
drug product to be commercialized
These rights include both pre-exist-
ing IP rights and new inventions
and improvements developed in
the course of the development con-
tract As with the fee-for-service
arrangement the parties typically
will retain rights to their respec-
tive pre-existing IP Intellectual
property rights to new inventions
and improvements however may
be shared by giving each party a
co-ownership interest in the intel-
lectual property Alternatively such
rights may be allocated by inventor-
ship with each party taking owner-
ship of developments that it invents
and with the parties jointly own-
ing jointly developed inventions
As another alternative the IP rights
may be allocated by subject matter
as in the fee-for-service arrangement
with each party owning improve-
ments and inventions related to its
pre-existing IP regardless of which
party invents those improvements
and inventions
Depending on how the pat-
ent applications are drafted the
IP rights may be ldquosliced and dicedrdquo
more finely One party for example
could own patent rights for a drug
product for one indication while the
other party owns patent rights for
the same drug product for another
indication Decisions about how
to allocate the IP rights should be
made in consultation with intel-
lectual property counsel and must
take into account the manner in
which the drug will be commercial-
ized If one party for example is
to commercialize the product in
North America and Europe and
the other party is to commercialize
the product in the rest of the world
then either the patent ownership
should be allocated by territory or
the development contract should
include exclusive cross-licenses of
each partyrsquos rights in all the intel-
lectual property necessary to com-
mercialize the product with the first
party having an exclusive license to
commercialize the product in North
America and Europe and the second
party having an exclusive license to
commercialize the product in the
rest of the world
If the parties are going to share
ownership of the IP related to the
drug product then the develop-
ment contract also should specify
which party is responsible for pros-
ecuting and maintaining patents
on the drug product Regardless of
which party is responsible for patent
prosecution and maintenance the
other party should be consulted and
involved in key decisions regard-
ing patent prosecution and main-
tenance Unless there are multiple
patents for different indications that
will be commercialized exclusively
by one party and unless each party
has exclusive rights to commercial-
ize the drug product in particular
geographic areas it generally makes
sense for one party to take the pri-
mary responsibility for patent pros-
ecution and maintenance globally
with the other party consulting and
sharing in the cost of the prosecu-
tion and maintenance in accordance
with the profit sharing The party
that is not responsible for prosecu-
tion and maintenance should have
a contractual right to approve patent
counsel and review and approve pat-
ent filings office action responses
and other communications with
patent registries before they are filed
or submitted so that the parties
agree on the proper prosecution and
maintenance strategy
Likewise the development con-
tract should allocate the rights and
responsibilities for asserting and
defending the patents pertaining to
the product in litigation Often these
rights and responsibilities are allo-
cated by territory according to com-
mercialization rights If one party
for example has the exclusive right
to commercialize the drug product
wwwbiopharminternationalcom June 2015 BioPharm International eBook 35
Outsourcing Resources Intellectual Property
in the US then that party would
have the first right and responsibil-
ity to assert the patents on the drug
product against potential infringers
and defend the patents on the drug
product against infringement claims
in the US Likewise if one party has
the exclusive right to commercial-
ize the drug product for a particular
indication then that party would
have the first right and responsibility
to assert or defend the patents per-
taining to the product with respect
to that indication Both scenarios
can present challenges First some
courts will not recognize an exclu-
sive licensee as having standing to
assert a patent That court might
only allow the owner of the patent
(and not the exclusive licensee) to
bring a lawsuit asserting the patent
It is crucial therefore that contrac-
tual provisions relating to patent liti-
gation require the party that owns
the patent to cooperate in any litiga-
tion and to join the suit as a party if
necessary
Another potential problem is that
any litigation that asserts the pat-
ent is likely to draw a counterclaim
that the patent is invalid thus put-
ting the patent itself at risk of invali-
dation While one party might be
threatened by a potential infringer
in a particular market or for a partic-
ular indication and therefore might
want to assert the patent against the
potential infringer the other party
might not want to put the patent at
risk as to other markets and other
indications For these reasons the
contractual provisions pertaining
to patent litigation must be care-
fully drafted in consultation with
intellectual property counsel who
understands standing issues and
the potential areas for dispute The
contractual provisions also should
include dispute resolution provi-
sions for situations when the parties
do not agree on whether a patent
should be asserted
Finally while the parties may
want and expect their relationship
to continue for the full term of the
patents and the development con-
tract the parties must carefully
consider the IP ramifications of an
early termination of the develop-
ment contract and the relationship
particularly if the development con-
tract is terminated for breach If the
parties are sharing in the ownership
commercialization and profits gen-
erated by the drug product devel-
oped by the collaboration then
all of that must be unwound upon
termination The development
contract should be as specific as
possible with respect to the effect of
various types of termination on the
intellectual property and contin-
ued commercialization of the drug
product In particular the parties
may agree that if the development
contract is terminated due to breach
by one party then that breaching
party must relinquish and transfer
all of its rights with respect to the
drug product to the other party to
allow the non-breaching party to
continue the commercialization of
the drug product post-termination
Whether the necessary rights are
assigned or licensed whether the
terminated party should receive a
royalty for the transfer or license of
those rights and what if any pre-
existing IP is licensed to enable the
non-breaching party to continue
commercializing the drug product
are all key factors for negotiation
The development contract should
also address other types of termi-
nation such as termination for
insolvency and termination with-
out cause (ie if one party decides
it no longer wants to commercial-
ize the drug product) In each case
the effect of termination on the IP
rights should be carefully analyzed
and a competent IP counsel should
carefully draft post-termination
assignments and licenses
conclusion
While IP lawyers are not equipped
with crystal balls they can be
extremely helpful in analyzing par-
ticular development commercializa-
tion and post-termination scenarios
all of which affect IP in a drug devel-
opment arrangement Contractual
provisions related to IP must be
carefully drafted to align with the
strategic business objectives of any
relationship and particularly one
whose purpose is the development
and commercialization of intellec-
tual property Without a clear con-
tract each collaborator is at risk of
losing important rights bp
Ad Index
AJINOMOTO ALTHEA 21
AVID BIOSERVICES INC 15
CYTOVANCE BIOLOGICS 27
EMERGENT BIOSOLUTIONS 13
EUROFINS LANCASTER LABORATORIES 7
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THERMO FISHER SCIENTIFIC 23
TOSOH BIOSCIENCE 11
WATERS CORP 3
Company Page
![Page 11: OUOURT NG I C RESOURCESfiles.pharmtech.com/alfresco_images/pharma/2019/03/08/... · 2019-07-22 · VIDEO INTERVIEW Biologics Development and Manufacturing Trends: Part I ... Media](https://reader034.vdocuments.us/reader034/viewer/2022050113/5f4aca886c0d6724390eb040/html5/thumbnails/11.jpg)
wwwtosohbiosciencecom
Tosoh Bioscience and TOYOPEARL are registered trademarks of Tosoh Corporation
Every mAb is unique
Your Protein A should be as well
TOSOH BIOSCIENCE LLC bull Customer service 866-527-3587 bull Technical service 800-366-4875 option 3
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2 35 5
Residence time (minutes)
DBC
for I
gG (g
L)
1 gL
5 gL
10 gLResin TOYOPEARL AF-rProtein A HC-650FColumn size 5 mm ID times 5 cmMobile phase 002 molL sodium phosphate 015 molL NaCl pH 74Residence time 2 35 5 minDetection UV 280 nm (10 breakthrough)Sample human IgG 1 5 10 gL in mobile phase
12 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources CROCMO Viewpoints
Biopharma Advances
Demand Specialized Expertise
Contract service providers share insights on biopharma market developments and the implications of biosimilar drug approvals
The ediTors of Biopharm international
The approval of the first biosimilar in the
United States as well as continuing consolida-
tion in the biopharma and contract develop-
ment and manufacturing markets are just
two indicators of the ongoing evolution of
biopharmaceutical development Representatives of
contract service providers shared observations trends
and projections with BioPharm International
Roundtable participants are Gary Chambers busi-
ness manager biopharma labs Europe SGS Bill
Hartzel director of strategic execution Catalent
Pharma Solutions Chris R Lively PhD director of
biopharmaceutical services PPD Scott Lorimer
VP Global Operations Patheon Biologics Eugene
McNally PhD executive director PPD Consulting
Rekha Patel global director large molecules devel-
opment and analytical solutions Catalent Pharma
Solutions and Mark Rogers vice-president SGS
Life Science Services USA
RegulatoRy and business tRends
BioPharm What regulatory changes have positively or
negatively impacted biopharmaceutical development
manufacturing processes
Ad
am
Ga
ult
Ge
tty Im
ag
es
info_contractmanufacturingebsicom | 1 800 441 4225 | emergentcontractmanufacturingcom
Aseptic FillFinish
Pre-Clinical Development
BDSManufacture
Clinical amp Commerical
Lyo CycleDevelopment
Emergent BioSolutions has a proven track record as a world-class provider of contract manufacturing services for both bulk drug substances and sterile injectable drug products Our team has successfully launched 20 commercial products and developedmanufactured over 200 clinical candidates for our clients
Emerging Capability
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Emergent Contract Manufacturing
Enhancing Life in Every Single Dose
14 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources CROCMO Viewpoints
McNally (PPD Consulting) FDA
establ ished a new Off ice of
Pharmaceutical Quality in 2014
which we anticipate will have major
impacts on the biopharmaceuti-
cal development and manufactur-
ing process This reorganization
was designed to enhance quality
drug assessment by realigning sev-
eral elements of the preapproval
and surveillance inspection pro-
cess Integrating risk-based review
GMP inspection implementation
of quality by design and the new
FDA process validation guidance
within one office is expected to
significantly change the biophar-
maceutical development and manu-
facturing process
H a r t z e l ( C a t a l e n t P h a r m a
Solutions) In todayrsquos market there
are significant manufacturing
challenges in traditional glass vial
filling applications These chal-
lenges manifest in quality issues
with the final container closure
and may be related to microbial
contamination glass particulates
and foreign materials that lead to
necessary market action causing
supply issues
Lorimer (Patheon Biologics) The
greatest regulatory change in recent
times is the acceptance and approval
of biosimilars
BioPharm What business trends
have posit ively or negatively
impacted biopharmaceutical devel-
opmentmanufacturing processes
H a r t z e l ( C a t a l e n t P h a r m a
Solutions) Today there is a stronger
emphasis in the development life-
cycle on the delivery of the mol-
ecule to the patient and not just
the molecule itself Deliverydevice
experts are being added to teams
at Phase II to improve the delivery
beyond the traditional vial
Lively (PPD) Growing interest
in biopharmaceutical drug devel-
opment necessitates partnering
between clients and contractors to
increase industry capacity breadth
of capabilities expertise and
the experience required to bring
these drugs to market The client
will receive the most benefit by
selecting a high-quality contract
research organization (CRO) lab
that is able to meet its needs and
work collaboratively with the cli-
ent to ensure timely development
Lorimer (Patheon Biologics) The
trend of small biotech partner-
ing with large pharma for clinical
manufacturing and development
has certainly facilitated the full
development of more novel mol-
ecules Also the increasing trend
toward outsourcing of GMP biolog-
ics manufacturing ensures biopro-
cessing and testing is performed
by expert manufacturers with
proven track records in quality and
biomanufacturing This helps to
reduce the risk to clinical programs
and product safety
technicalscientific tRendsBioPharm Can you describe pro-
ductivity improvements your com-
pany has experienced from new
technologies
Patel (Catalent Pharma Solutions)
Catalent Pharma Solutions has sig-
nificant ongoing investments in
enhancing our large-molecule ana-
lytical capabilities and productiv-
ity to meet and advance current
industry needs Recent invest-
ments include the updatednew
technologies new assay strategies
and updated electronic systems
and processes
Lively (PPD) Evolving character-
ization expectations for biologics
have driven improvements in ana-
lytical equipment processes and
systems Ultra performance liquid
chromatography (UPLC) systems
have improved resolution and sen-
sitivity while reducing run times
In addition 2D high-performance
liquid chromatography (HPLC)
high-resolution mass spectrom-
etry (MS) allows for analysis of
samples incompatible with tradi-
tional MS Reporter gene bioassays
apply genetically engineered cell
lines both to directly model mech-
anisms of action and to amplify
assays for improved performance
with shorter incubations and
increased signalnoise relative to
standard bioassays
Lorimer (Patheon Biologics) The
main productivity improvement
has been increasing the through-
put of products in Patheonrsquos mul-
tiproduct biopharmaceutical GMP
facilities Single-use disposable
bioreactors and similar single-use
bioprocess equipment minimize
plant downtime which is tradi-
tionally required for line clearance
and product changeover The com-
plexity of product changeovers is
reduced by single-use technology
which decreases the need for clean-
in-place steam-in-place and qual-
ity control testing Typically line
Approval of the first
biosimilar in the
United States as well
as consolidation in
the biopharma and
contract development
and manufacturing
markets are just
two indicators of the
ongoing evolution of
biopharmaceutical
development
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bull Process optimizationprocess scale-up
bull Viral inactivationremoval study design
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bull Process validation
ANALYTICAL METHODS DEVELOPMENT
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bull Flexible manufacturing capabilities
bull Stainless steel amp single-use systemsfrom 100L-1000L
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QUALITY AND REGULATORY SERVICES
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bull In-process amp release testing
bull Stability testing
bull Reference standard generation
For more information please visit us at wwwavidbiocom or
e-mail businessdevelopmentavidbiocom
THE AVID
ADVANTAGE
16 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources CROCMO Viewpoints
clearance time is reduced by sev-
eral days
R o g e r s ( S G S L i f e S c i e n c e
Services) As an analytical ser-
vice provider SGS is constantly
in search of means to improve
its laboratory efficiencies partic-
ularly those that enhance turn-
around time without adversely
effecting quality With this in
mind substitution of HPLC for
UPLC rapid microbiolog ica l
screening methods and invest-
ment in automated approaches to
complex analytical problems such
as protein sequencing are now
being used within the SGS labora-
tory network
Chambers (SGS) From a CRO
point of view the main produc-
tivity improvements in analytics
have been from higher through-
put systems and data analysis The
move to these faster systems with
semiautomated data processing has
allowed us to improve turnaround
times which are passed on to cli-
ents in terms who win on faster
to market times and faster gono
decisions
BioPharm What additional tech-
nology improvements are needed
to improve the efficiency of bio-
processing
Lorimer (Patheon Biologics)
Process analytical technology
(PAT) for continuous monitoring of
bioprocesses is helping reduce the
variability on biopharmaceutical
manufacturing
Also biopharmaceutical devel-
opment and process validation
have been accelerated by the use
of mini-bioreactor systems which
enable a large amount of process
development data to be gener-
ated within a very short timeline
These multi-bioreactor systems
can reduce process develop -
ment timelines by months when
applied to early-stage or late-stage
bioprocesses
Rogers (SGS Life Science Services)
The development of many tech-
nologies follows a common path
from academia to commercial
application and nowhere is this
more evident than in the field of
bioprocessing In almost all exam-
ples the key to this progression
lies in the ability to simplify opera-
tional aspects of the technology
and improve throughput This has
in the past been clearly demon-
strated in for example the field of
mass spectrometry and is currently
evolving with techniques involved
in biophysical characterization
BioPharm What is the greatest
technical challenge facing biophar-
maceutical companies today
Hartzel (Catalent Pharma Solutions)
Cost to manufacture will continue
to be a major challenge for the
industry especially with the rise
of biosimilars and market pressures
to drive down the cost of medi-
cines However the products that
are coming to market are more
targeted which leads to smaller
batch sizes This is counter to the
manufacturing adage of being able
to leverage economies of scale to
drive out costs hence the need to
focus on alternatives technologies
and innovation to reduce the man-
ufacturing costs versus economies
of scale
Lively (PPD) Application of ana-
lytical techniques to better char-
acterize innovator and biosimilar
or follow-on products by physico-
chemical and functional methods
are required and will continue to
be driven by the complexity of
biologics development For exam-
ple changes in formulations may
cause different leachable profiles
requiring increasing emphasis on
extractablesleachables techniques
(ie high-resolution MS) to sup-
port characterization of formu-
lation effects identification of
degradation and impurities and
determination of their potential
impact through application of
potency bioassays
Lorimer (Patheon Biologics) Most
of the technical challenges for
manufacturing have been over-
come and the technologies for
development and manufactur-
ing have been widely adopted
Perhaps the greatest challenge is in
clinical development of novel and
originator molecules where in-vitro
model systems are still not a great
predictor of clinical performance
Rogers (SGS Life Science Services)
To highlight one technical chal-
lenge above all others in todayrsquos
biopharmaceutical industry is
very difficult The complexity of
biotherapeutics often results in
considerable technical difficul-
ties as for example in the area
of impurities recognition of host-
cell proteins (HCPs) and identi-
fication of structural variants at
trace levels are certainly high on
the list of technical concerns The
necessary inclusion of relatively
elaborate analytical techniques
such as sedimentation velocity
analytical ultracentrifugation (SVndash
AUC) within a traditional qual-
ity control release environment is
also not without problems
BioPharm What are the pros-
pects for continuous manufac-
turing to be firmly established in
bioprocessing What are the road-
blocks to implementation
Lorimer (Patheon Biologics)
Continuous product ion f rom
mammalian cell cultures has been
operated in perfusion bioreactors
for many years The main road-
block for continuous processing is
downstream processing of proteins
which currently demands discrete
and distinct unit operations for
removal of impurities removal
of contaminants concentration
of the products and formulation
each in separate controlled steps
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NEXT GENERATION MEDIA PLATFORM
18 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources CROCMO Viewpoints
and which are not currently ame-
nable to continuous processing
the Rise of biosimilaRs
BioPharm What impact w i l l
biosimilar drugs have on bio-
pharma businesses bioprocessing
approaches and the contract ser-
vices market
Rogers (SGS Life Science Services)
The European biopharma land-
scape has already experienced
impact of the biosimilar drug mar-
ket leading to rapid expansion of
traditional small molecule generic
manufactures into the bio arena
Recent FDA approval of the Sandoz
biosimilar Zarixo may be the seed
for similar changes in the US pro-
viding a potential new line of busi-
ness for established pharmaceutical
companies Contract service pro-
viders such as SGS who already
have considerable experience with
biosimilars are able to offer exper-
tise to businesses new to this mar-
ket and will no doubt benefit from
such expansion in the US
Lively (PPD) Increased invest-
ment in biosimilars is driving
interest in improving and stream-
lining the development processes
as well as the sensitivity and scope
of characterization assays used to
compare biosimilars and innova-
tor drugs The expanding capac-
ity needs result in partnerships
between clients and their contrac-
tors with the systems experience
and expertise to achieve the qual-
ity and speed required while meet-
ing all regulatory expectations for
product approval
Chambers (SGS) With nearly
20 years exper ience perform-
ing biosimilar analysis the big-
gest impact had been the massive
increase in the characterization
needed for biosimilars compared
to innovators (although higher
standards are now needed for new
innovators too) This has resulted
CMOs Add Capabilities
Consolidation in the contract development and manufacturing market has resulted in new capabilities and facility expansions
In May 2015 CMC Biologics announced that it is expanding its Copenhagen Denmark facility to increase its manufacturing capacity through the installation of six 2000-L bioreactors The bioreactors can be run singly or in groups simultaneously or sequentially and are part of the companyrsquos signature Bioreactor 6Pack single-use program The Copenhagen installation will begin initial GMP production in November 2015 and will feature three bioreactors to start Three bioreactors will be added at a later date to complete the configuration Meanwhile the Bioreactor 6Pack at CMCrsquos Seattle facility will complete its first GMP run in mid-2015 and will be ready for commercial launch by the end of the year Through its recent expansions CMC plans to expand its global capacity by more than 30000 liters in the United States and Europe
Also in May 2015 SAFC announced an expansion to its St Louis MO facility to support the commercial-scale production of antibody-drug conjugates The facility which is expected to be online and operational in the third quarter of 2015 was designed to meet SafeBridge category 4 compound handling requirements for highly active or cytotoxic compounds The expansion of an existing Carlsbad CA location will enable SAFC to offer fillfinish capabilities of viral products to its clients in the gene therapy viral vaccine and immunotherapy sectors
Rentschler announced in March 2015 that a 2000-L bioreactor that the company commissioned and built in six months is up and running The bioreactor will be integrated into existing manufacturing suites containing two 1000-L single-use bioreactors according to a company statement The companyrsquos twin bioreactor systemmdashdesigned for running two main bioreactors in parallel with one shared downstream processing unitmdashwill be functional by 2017 The twin system is estimated to double the companyrsquos production capacities for cell culture-derived proteins
In December 2014 FUJIFILM Diosynth Biotechnologies USA (FDBU) acquired Kalon Biotherapeutics adding viral and cell-culture vaccine expertise and capabilities In other activity FDBU started construction of a three-story 62000-ft2 facility in Research Triangle Park NC in January 2015 to house the companyrsquos process and analytical research and development process sciences and stability groups The expected completion date is Q4 2015
In September 2014 PCI a provider of packaging services acquired Biotec Services International a provider of clinical-trial services and temperature-controlled pharmaceutical services headquartered in Bridgend Wales UK The addition expanded PCIrsquos presence in the European Union and added packaging storage and distribution capacity and consultative services for clinical-trial supplies In January 2015 Biotec announced the validation of its clinical supply facility expansion which added almost 50 to the companyrsquos clinical trial materials handling capacity
wwwbiopharminternationalcom June 2015 BioPharm International eBook 19
Outsourcing Resources CROCMO Viewpoints
in challenges in data handling
interpretation and data presenta-
tion Biosimilars have also caused
the re-emergence of orthogonal
techniques like size exclusion
chromatographyndashmulti-angle laser
light scattering (SEC-MALL) and
SV-AUC for aggregation and cir-
cular dichroism (CD) and fourier
transform infrared spectroscopy
(FTIR) for higher-order structure
as critical analyses to understand
and compare and detect subtle
higher-order structural differences
between innovator and biosimilar
samples
Hartzel (Catalent Pharma Solutions)
The rise of biosimilar drugs will
dawn the next generation of bio-
logic manufacturing and force
the industry to look at new ways
of manufacturing to drive down
costs Therefore the industry will
seek new manufacturing partners
with strong technical expertise to
drive out costs through innovation
and operational excellence
Lorimer (Patheon Biologics)
Genera l ly b ios imi la r d r ugs
will encourage competitiveness
within the biopharma sector
Biomanufacturers expect increased
pressure on cost of goods and
pricing Biopharmaceutical con-
tract service providers with a flex-
ible multi-product operation and
proven track record in the indus-
try are well placed to ensure care-
ful control of manufacturing costs
and product quality Processing
approaches wonrsquot change in terms
of technology but there will be a
greater emphasis on operational
excellence to reduce costly inef-
ficiencies and improve yields from
bioprocesses As more biosimilars
come to the forefront and as the
industry trend for outsourcing
continues increasing operational
flexibility while maintaining the
highest quality standards will be
the keys to success
business challenges
BioPharm What is the greatest
business challenge facing biophar-
maceutical companies today
Lively (PPD) As with all phar-
maceutical drug development the
greatest challenge is getting new
life-changing and potentially life-
saving drug candidates to mar-
ket Biopharmaceuticals face more
challenges than traditional small-
molecule drug products because
the science of characterization
of such biologic drugs is rapidly
evolving along with the regulatory
landscape Those companies that
are best able to successfully char-
acterize and differentiate innovator
and biosimilar products for safety
and efficacy will have the greatest
opportunity to benefit
the knowledge gap
BioPharm In what areas do you
see knowledge or expertise gaps in
current biopharmaceutical compa-
nies Why do these gaps exist
Lorimer (Patheon Biologics) There
is a gap in translating good sci-
ence to industrial applications of
technologies that provide for reli-
able efficient cost effective man-
ufacturing at commercial scale
Maintaining a focus during early
development on eventual commer-
cial manufacturing requirements
while balancing limited develop-
ment resources requires a broad
base of coordinated organiza-
tional skillsets and a disciplined
approach
Hartzel (Catalent Pharma Solutions)
Devicedelivery expertise is an
area that has a potential gap For
biologics the historic default con-
tainer closure has been a tradi-
tional glass vial As the healthcare
industry seeks ways to improve
patient care and reduce costs the
delivery to the patient needs to
adopt new technologies and this
is why we have seen a rise of pre-
filled syringes and autoinjectors
These technologies will continue
to evolve and so will the demand
for devicedelivery experts
Lively (PPD) One of the chal-
lenges we see is the various levels
of knowledge and expertise that
exist between biopharmaceutical
RampD and the testing and regula-
tory industries That differential is
impacting those industriesrsquo ability
to fully consider and effectively
implement expectations and guid-
ance for physicochemical and
functional characterization expec-
tations of biologic drugs
Lorimer (Patheon Biologics) The
commercial biopharmaceutical
industry demands global sourc-
ing of materials services supply
and ultimately distribution to each
patient This requires a robust inte-
grated supply chain to deliver high
value products to patients on-time
and at the right quality Doing this
reliably and efficiently with long
production lead times and uncer-
tain market sales forecasts is an
industry wide challenge
Speed-to-market remains a key
challenge to the development of
biopharmaceuticals Speedy first-
time-in-man clinical trials can be
a major hurdle for small biotech
companies and large pharma alike
Rogers (SGS Life Science Services)
I believe there continues to be a
significant problem in the level of
fundamental scientific expertise
within many biopharmaceutical
businesses In part this may be
attributed to the lsquokitrsquo and lsquoblack
boxrsquo approach of many modern
day technologies Due to the
complexity of many biopharma-
ceuticals their development and
success as therapeutics requires a
comprehensive range of scientific
disciplines and expertise which
can be difficult to fully realize
internally particularly for small
and mid-size companies bp
20 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources FillFinish
FillFinish Trends
Automation and disposables continue to reduce human error
Eric s LangEr
Fillfinish operations continue to be domi-
nated by trends in automation and the adop-
tion of single-use equipment But these are
by no means the only factors affecting these
high-value operations according to BioPlan
Associatesrsquo latest biomanufacturing study (1) Fill
finish processes are among the most outsourced
activities in biomanufacturing today and a service
providerrsquos capacity for vialing pre-filled devices
and lyophilization is crucial In a recently pub-
lished whitepaper (2) BioPlan Associates determined
that there is sufficient global in-house capacity
for biologics but the need continues to grow for
greater access to specialized outsourcing competence
Whatrsquos trending is significant improvements in auto-
mation and operations
AutomAtion And single use defining Cmo strAtegy
The top trends today involve automation and devel-
opment of better disposable technologies As part of
the BioPlan study biomanufacturers were asked to
select the trends they believe to be the most impor-
tant in fill and finish today The top three trends
are single-use equipment automation in full isolator
units and facilities becoming multi-product ori-
ented (see Figure 1)
Other important trends were noted including
bull Increased serialization and product labeling for
anti-counterfeiting
Eric s LangEr is president and managing partner at BioPlan Associates Inc elangerbioplanassociatescom tel 3019215979 wwwbioplanassociatescom
Ma
ria T
ou
tou
da
ki
Ge
tty Im
ag
es
WITH ALTHEA YOU HAVE THE POWER TO MAKE
You have the power to make a difference To make new therapeutics that improve quality of life and inspire a healthier world To do this you need a manufacturing partner who embraces your every challenge as its own who shares your unwavering tenacity and dedication from clinical studies through commercial success Thats The Power To Make
PLAY VIDEO
CONTRACT
MANUFACTURING
Q Development
Drug Substance
lj Drug Product
(D Al TH EA I THE POWER TO MAK A MEMBER OF THE AJINOMOTO GROUP
22 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources FillFinish
bull More f i l l f i n i sh fac i l i t ie s
o p e r a t i n g i n d e v e lo p i n g
regions
bull C o m p u t e r - b a s e d v i s u a l
i n s p e c t i o n a r t i f i c i a l
intelligence
bull Use of complex administration
systems
single-use equipment in fillfinish operAtionsT h e a d o p t i o n o f d i s p o s -
ab le e qu ipme nt i n f i l l f i n -
i s h o p e r a t i o n s e l i m i n a t e s
cross-contamination risks and
adds flexibility in process scale
While regulatory rest r ic t ions
may be increased by the adop-
tion of such equipment single-
use appl icat ions a lso enable
contract manufactur ing orga-
nizat ions (CMOs) to increase
fac i l i t y ut i l i z at ion t h rough
multi-product strategies which
can decrease their cost of goods
Experts in the f ield discussed
these trends
Peter Pekos CEO and president
of Dalton Pharma Services a fill
finish CMO says ldquoFor a CMO
disposables can be attractive hellip
For example a disposable isola-
tor can be packed and stored pre-
sterilized for use when needed
a f ixed isolator requires f ixed
space at all times Disposables
also allow a CMO to handle proj-
ects using specific systems for
non-typical project needs such
as disposable isolators without
going to the expense of buying
permanent isolator infrastruc-
ture Disposables do not obviate
the need for technical expertise
hellip so the need for a CMO isnrsquot
really reduced In fact CMOs
with expertise in single-use sys-
tems hellip can make them more
attractiverdquo
Mar t ina Fe r neman cor po -
rate development manager at
Recipharm bel ieves that the
adoption of single-usedispos-
able equipment is now impacting
f i l l and f inish ldquoIn mult ipur-
pose sites the cleaning proce-
dures will become more crucial
to avoid cross contamination
Single-use equipment [also] has
the advantage of shorter lead
t imes and lower procurement
costs Since no cleaning proce-
dure has to be established and
aseptic connections are easier to
be built-up the use of single-
use equipment is not only faster
but also safer than conventional
equipmentrdquo
AutomAtion in full isolAtor unitsW hi le s ing le -use equ ipment
adoption may be one of the hot-
test f i l lf inish trend automa-
tion technologies may actually
be experiencing more rapid rates
of implementation among bio-
manufacturers Indeed sepa-
rate results from BioPlanrsquos 12th
annual study suggest that the
industry wi l l be as l ikely to
implement automation technolo-
gies as they will use single-use
f i l l-f inish devices dur ing the
next 24 months
The removal of human factors
is a key to improving product
quality Isolators and automa-
tion are therefore key drivers
as facilities seek to improve their
i n f r a s t r u c t u r e I n nov a t io n
around equipment and facilities
able to handle multiple products
is going to continue Flexibility
is key as the reduced flexibility
of isolators (and higher cost) in
relation to traditional restricted
access barrier (RAB) systems may
deter some CMOs from adopt-
ing isolators The jury is st i l l
out because the decision fac-
tors between RAB and isolators
are complex and this tends to be
a high-cost decision often left
to the larger f illf inish CMOs
ldquoCMOs will adopt isolator tech-
nologies in their processes to
meet industry needs and reduce
r isk In some cases this wil l
also include disposable isolators
which can offer the benefits of
fixed isolators but add a degree
of f lexibil ity to the manufac-
turerrdquo Pekos notes
According to Ferneman adopt-
ing automat ion in ful l isola-
tor units to reduce the need for
operators is a trend seen in the
CMO market ldquoUse of barr ier
technology (RABS or isolators)
should ensure optimal protec-
t ion of ster i le areas Isolators
bear a better potential to prevent
biocontamination Since the iso-
lator is a closed system a lower
air quality than in RABS systems
can be usedrdquo For freeze-dried
products the RABS system is a
better choice because loading
has to be performed in class AB
surrounding
Fig
ur
e 1
is
co
ur
te
sy
oF
th
e a
ut
ho
r
Figure 1 selected bioprocessing fllfnish trends in 2015
Single-usedisposable equipment
adoption55
36
35Facilities becoming more multi-
product-use oriented
Automation in full isolator units
reduce need for operators
More compounds More accuratelyFaster than ever
Quantitation transformed
Todayrsquos range of possible therapeutic agents from small molecules to peptides to antibodies and
ADCrsquos makes quantitative bioanalysis a challenge Quantify potential therapeutics faster and more
accurately with our new portfolio of LC-MS instruments sample prep solutions and software HRAM
solutions using Thermo Scienti ctrade Orbitraptrade MS enables selectivity for complex molecules while
triple quadrupole MS delivers SRM sensitivity and speed to detect targeted compounds more quickly
Meet todayrsquos challenges with us and together wersquoll transform quantitative bioanalysis
Thermo Scienti ctrade Orbitrap Fusiontrade MSUnprecedented depth of analysis and
throughput for biological discovery
Thermo Scienti ctrade TSQ Quantivatrade MSLeading SRM sensitivity and speed
in a triple quadrupole MSMS
Thermo Scienti ctrade Q Exactivetrade MSScreen and quantify known and unknown targets with HRAM Orbitrap technology
copy 2
014
Ther
mo
Fish
er S
cien
tifi c
Inc
All
right
s re
serv
ed A
ll tr
adem
arks
are
th
e pr
oper
ty o
f The
rmo
Fish
er S
cien
tifi c
and
its
subs
idia
ries
bull Discover more at thermoscienti ccomquan-transformed
24 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources FillFinish
Cmos stAying
AheAd of the Curve
In the whitepaper on in-house
fillfinish operations for recom-
binant therapeutics (2) BioPlan
found relatively low average in-
house capacity utilization rates
for lyophilization (55) pre-filled
devices (58) and vialing (70)
This finding suggests that for fill
finish CMOs the real value isnrsquot
necessarily in providing additional
flexible capacity but rather in posi-
tioning themselves as providing
highly sophisticated and novel
technologies and expertise in fill
finish services Indeed CMOs are
expected to have state-of-the-art
equipment As Pekos notes ldquoCMOs
who implement flexible and inno-
vative technologies to make man-
ufacturing or development more
efficient faster compliant or more
economical all serve to make them
more attractive to customersrdquo
For CMOs that make use of
innovative fillfinish technologies
there appears to be a good deal
of demand Results from BioPlanrsquos
annual studies indicate that fill
finish services are among the most
widely and heavily outsourced
biomanufacturing activities today
and are also among the activities
that biomanufacturers are most
likely to outsource at significantly
higher levels in the future
Biomanufacturers and CMOs are
actively looking to their fillfin-
ish equipment suppliers and are
beginning to demand additional
new technologies innovation and
product development In 2014 for
example when the top areas that
biomanufacturers wanted their
suppliers to focus their develop-
ment efforts on were measured
fillfinish services topped the list
cited by 23 of biomanufacturers
Not only did that figure represent
a substantial increase from years
past (13 in 2011) but it was also
ahead of other services including
upstream and downstream process
development services
Fillfinish will continue
to be an area of
growth for CMOs
There are a number of areas in
which suppliers can add value to
fillfinish innovation according
to industry experts Jim Agalloco
president of Agalloco amp Associates
in Belle Mead NJ says ldquovendors of
equipment and components to fill
finish must continue their roles as
technology leaders Innovation in
this market has always been sup-
plier driven because the operating
firms do not have the necessary
expertise Collaboration between
equipment manufacturers and
component suppliers is essential
for implementation of new con-
tainer systems single-use dispos-
ables and other advancesrdquo
Ronald Malone senior principal
scientist at Novartis Vaccines says
ldquoBlow-fill-seal containerclosure
systems are beneficial for small-
volume parenterals However over-
all cost may still be higher per unit
than traditional vialstopper fill-
ing Vaccines and biologicals can
benefit from single-dose disposable
systems that drive down the cost
of the containerclosure system
This will assist the global supply to
developing world countries where
these products are truly neededrdquo
W B W i e d e r s e i m o f
PharmaBioSource in Wayne PA
states ldquoWe see smaller higher
technical facilities inclusive of dis-
posables (isolators and not RABS)
and advanced aseptic work cell
technology as the wave of the
futurerdquo
WhAt does the future hold
BioPlanrsquos survey data and indus-
try interviews indicate that fill
f inish will continue to be an
area of growth for CMOs that
maintain the required technical
quality and regulatory expertise
in this segment Experts have
taken note of CMOsrsquo introduc-
tion of smaller filling machines
for syringes or vials a trend that
may be in response to the indus-
try-wide move towards smaller-
scale manufactur ing projects
This shift may be accelerated by
the advent of biosimilars which
should provide an increasing
number of projects for fillfin-
ish CMOs although likely on a
smaller scale This increase in
projects could lead to potential
mergers and acquisitions with
some experts noting that fillfin-
ish CMOs are already engaging
in this trend toward larger capac-
ity and global operations
Indeed within the past 18
months a number of acquisi-
tions have occurred including
Pfizerrsquos acquisitions of Hospira
a nd In noPha r ma Pat heonrsquos
mergers in the contract services
space IDT Biolog ika invest-
ments Vet ter invest ing USD
$100 million to upgrade fill-fin-
ish facilities in the United States
a nd Ger ma ny a nd Ba xte r rsquos
investment in German facilities
and numerous others (3)
For CMOs to stay ahead of the
curve they will likely need to
continue to adopt disposables
technologies and advance their
automation in full isolators Ray
Cardin of PharMax Consulting
says ldquoIncreased use of dispos-
able pre-sterilized f illing tech-
nologies [are future trends] The
combination of these pre-ster-
ilized units with the coming of
age of ster i le connectors that
provide high sterility assurance
wwwbiopharminternationalcom June 2015 BioPharm International eBook 25
Outsourcing Resources FillFinish
Biologics Development and Manufacturing Trends Part II
Eric Langer Managing Partner BioPlan Associates talks about the results from BioPlan AssociatesOtilde 12th Annual Report and Survey of Biopharmaceutical Manufacturing Capacity and Production Langer discusses what respondents indicated as the number one trend in biologics manufacturing improving efficiencies and the biosimilars market
in less clean environments is
changing the way aseptic pro-
cesses are designedrdquo
Gordon Leichter PhD Eastern
r e g io n a l s a l e s m a n a ge r a t
Belimed in Charleston SC states
ldquoAutomat ion in fu l l i solators
wil l el iminate operator inter-
vention and laser-sealed vials
Automation will become more
integral to building automation
and enterprise systemsrdquo
Douglas Stockdale vice-presi-
dent CMCTechnical Operations
Hi l lhurst Biopharmaceut ica ls
Los Angeles CA says ldquoIndustry
will continue pushing the PAT
[process analytical technology]
envelope to f ind a lternat ive
methods to improve in-process
methodologies and processesrdquo
Fe r ne ma n add s ldquoCu r r e nt
trends in fillfinish innovation
will probably focus the market
authorization holders on a few
strategic products resulting in
outsourcing of a bigger share of
products overallrdquo
ConClusion
Until recently the handling of
ster i le l iquids in the pharma-
ceutical industry has relied on
relatively consistent techniques
during the past 100 years with
relatively slow changes in tech-
nologies and regulations result-
ing in incremental improvements
in safety efficiency and prod-
uct quality During the past 20
years however costly biologics
have taken a prominent indus-
try role The value of these drugs
can often be measured in tens of
thousands per dose This has put
greater pressure on these down-
stream fillfinish operations to
ensure quality safety and cost-
efficiency are not compromised
at this crucial late stage in manu-
facturing Trends in fillfinish for
recombinant therapeutics include
the increased use of isolator
technologies more high-speed
operations and other innovative
approaches including single-use
processing As a result of industry
research BioPlan expects more
outsourcing of fillfinish opera-
tions in coming years
referenCes 1 BioPlan Associates 12th Annual
Report and Survey of Biopharmaceutical
Manufacturing Capacity and Production
(Rockville MD April 2015) www
bioplanassociatescom
2 BioPlan Associates Trends in Aseptic
Bioprocessing Capacity for the Fill and
Finish of Recombinant Biologics An
Analysis of US and European In-house
Capacity and Capacity Utilization (BioPlan
Associates December 2014)
3 Information derived from BioPlan
Associatesrsquo BioFacilities Newsletters Bp
26 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Cell Therapy
Taking a ldquoDevelopment-by-Designrdquo
Approach to Cell Therapies
Whether outsourcing or developing cell therapies in-house success demands a focus on quality cost of goods
and sustainability from the start
Agnes shAnley
Cell therapies both autologous and allo-
geneic have come a long way in just a
few years Countries around the world
most recently Japan have passed regula-
tions designed to speed development of
these treatments which are now a big and growing
global business
In 2013 according to the Pharmaceutical Research
and Manufacturers Association 69 cell therapies six
of them autologous or patient-specific treatments
were in clinical trials or being reviewed in the United
States alone 15 of them in Phase III trials (1)
The road is littered with failures however often
in clinical stages This has been traced to problems
with manufacturing and failure to understand pro-
cess requirements earlier in the development process
Table I outlines manufacturing issues
As a growing number of Big Pharma companies
explore the potential for immune regenerative and
other cell therapies equipment manufacturers includ-
Agnes shAnley is senior editor of BioPharm International
SC
IEP
RO
GE
tt
y Im
aG
ES
wwwcytovancecomResponsive Reliable Resourceful
Your partner in biopharmaceutical contract manufacturing of therapeutic proteins and antibodies from mammalian cell culture and microbial fermentation
28 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Cell Therapy
ing Pall Corp EMD Millipore
and GE Biosystems have set up
centers of excellence to focus on
developing equipment for this
new market Engineering compa-
nies such as Invetech and Instrom
are developing equipment specific
to this niche
More CDMos are entering
Cell therapy Market niChe
Demand for spec ia l i zed ce l l
t he rapy ma nu fac t u r ing a nd
development serv ices is a lso
growing and has attracted Lonza
Bioservices Cognate BioServices
WuXi AppTech and Roslin Cells
among others
NeoStem is fol low ing t wo
paths pursuing its own cel l
therapy pipel ine and explor-
ing contract services through
its contract development and
manufac t u r ing organ i zat ion
(CDMO) subsidiary Progenitor
Cell Therapy (PCT) With bases
in Irvine and Mountain View CA
and Allendale NJ PCT is cur-
rently working with Intrexon and
Fibrocell on connective tissue
treatments and with the United
K ingdomrsquos Adapt immune on
oncology treatments
A new CEO David Mazzo with
a doctorate in analytical chemis-
try and experience running both
private and public international
biopharma companies assumed
NeoStemrsquos leadership in January
He sees no conflict between grow-
ing a pipeline and a contract man-
ufacturing business
ldquoWe are not trying to be two
di f ferent companies and we
do not see the two competing
with each otherrdquo says Mazzo
in an interview with BioPharm
Inte rnat ionalrsquos s i ster publ ica-
tion Pharmaceutical Technology
during his second week on the
job ldquoInstead there is a symbi-
otic relationship between themrdquo
As he sees it the companyrsquos
track record in developing prod-
ucts should attract more spon-
sors ldquoProblems in development
usually occur at the interfaces
Our unique experience of having
lsquodone that beforersquo should be help-
fulrdquo he says
In January PCT entered a
partnership with Invetech an
equipment design firm based in
Australia with offices in San Diego
to develop automated equipment
for cell therapy manufacturing Fig
ur
e 1
is
co
ur
te
sy
oF
in
ve
te
ch
Figure 1 Part of an automated solution being developed by neostem and invetech Automating processes is key to reducing costs
wwwbiopharminternationalcom June 2015 BioPharm International eBook 29
Outsourcing Resources Cell Therapy
The two companies have already
been working together for a year
now honing the design and speci-
fications for the instrumentation
says NeoStemrsquos Chief Scientific
Officer (CSO) Robert Preti The
equipment will tackle cell therapyrsquos
most challenging side autologous
treatments where the manufactur-
ing lot is the patient dose adminis-
tered at the patientrsquos bedside
As Preti notes there really isnrsquot
much available today in the way
of automated equipment for cell
therapy especially on the autolo-
gous side The equipment will sep-
arate and wash cells among other
functions
labor-intensive
proCesses aDD Cost
So far Preti says the company
is evaluating the evolving equip-
ment in NeoStemrsquos own manu-
facturing efforts ldquoOne of the
largest commercial bottlenecks
is the heavy labor required by
processes especially for patient-
specific uses where one batch is
one patientrdquo
The cost of goods i s ver y
high Preti says ldquoSuccess long-
term will require a whole new
approach to development The
goal is to provide high qual-
ity and sustainabilityrdquo he says
Removing manual operat ions
and human error from the pro-
cess will be crucial
Invetech has been work ing
on cell therapy process scale-up
automation for more than 10
years and has successfully com-
pleted projects in North America
Europe and Asia for companies
that include Argos Therapeutics
Aa s t rom CCR M Hu mac y te
Innovacell Janssen kSep Systems
MolMed Organovo and ViaCyte
accord ing to R ichard Grant
global VP of the companyrsquos bio-
pharma operations who has been
with the company for more than
14 years
ldquoThe goal is to develop a mix
of equipment and manufactur-
ing st rateg ies that maximize
quality scalability and sustain-
ability with an eye toward cost-
effect iveness and commercial
viabilityrdquo Grant says Invetechrsquos
solutions typically tailor a mix of
OEM and customized equipment
to the clientrsquos processes The com-
pany recently commercialized
equipment used to manufacture
Janssenrsquos macular degeneration
treatment
Costs of current manufactur-
ing processes for both autologous
and allogeneic therapies are dif-
ficult to peg Last year experts
at University College London
attempted to pinpoint the cost and
overall economics of allogeneic
cell therapy using single-use tech-
nologies (2)
What is clear for both alloge-
neic and autologous systems is
that cell therapy development
Table I Manufacturing scenarios for cell therapies
Attributes Off-the-shelf therapiesPatient-specifc
therapies
Source material Always allogeneic Autologous or matched allogeneic
Batch size Many patients One patient
Business model Similar to pharmabiopharma New
Scaling Scale up (Increased lot size) Scale out (Increased number of lots)
Comparability vs scale Higher concern Lower concern
Manufacturing design drivers
Mission critical success + +++
Optimized process yield +++ +
Dimensional efficiency ++ +-
Integration +- ++
Automation + ++
source invetech
Table II Measuring comparability risk
Risk level Example Timing
None Automated sterility test Before biologics license application
Low Change in process unit op and cell journey is the same
Before 50 accrual in pivotal trials
Medium Change in process unit op and cell journey is similar
Before initiation of pivotal clinical trials
High Change in process unit op and the cell journey is matched
Some Phase II clinical data
source invetech
30 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Cell Therapy
and manufacturing costs are cur-
rently prohibitive ldquoThe starting
points can vary dramaticallyrdquo
Grant says He recalls one cus-
tomer whose autologous process
ran to $80000 per patient in early
stage clinical trials Automation
he says could reduce costs by
40ndash90 depending on the ther-
apy involved
DevelopMent by Design
But before one can automate any
process one must understand it
NeoStem and PCT like a growing
number of companies are taking
the principle of quality by design
(QbD) to heart in their work
Mazzo arguably one of few
life-science company CEOs to
even articulate the QbD concept
explains that the company has
gone a step further and broadened
the International Conference on
Harmonization guidances adopted
by FDA into ldquodevelopment by
designrdquo (DbD)
ldquoWe say first consider the end-
point then take process as is and
understand its unit operations
Develop inputs and outputs and
discrete steps and define the pro-
cess in a way that promotes under-
standingrdquo he says
ldquoThis is challenging given prod-
uct complexity but there is a need
to understand the mechanism of
action very well so you put each
process in this overall envelope
of DbD and consider the cost of
goods scalability and sustainabil-
ityrdquo Preti adds ldquoYou consider the
process from the end only this
time each batch is an individual
patientrdquo
The critical part is defining and
measuring process needs he says
ldquoProduct definition is very impor-
tant particularly the quality target
product profilerdquo explains Brian
Hampson VP of manufacturing
development and engineering at
PCT in an Oct 22 2014 webcast
for the International Society for
Cell Therapy (3)
have the enD in MinD
Such t h ings a s for mulat ion
issues dosage potency impu-
rities residuals and microbial
assurance need to be thought out
clearly from the start Hampson
says as well as indications for
use geographic market projec-
tions cost-of-goods targets and
IP issues
The profile needs to be a liv-
ing document that changes as the
product takes shape Hampson
says There is a tendency for peo-
ple in the industry to ignore the
product profile until they have
all the answers says Hampson
ldquoInstead it needs to be developed
really early even when you donrsquot
have all or even many of the
answers hellip you can leave them
as blanks and continue to review
add to and updaterdquo
The result is not only a tool for
better understanding the prod-
uct process and mechanism of
action but a communication tool
for stakeholders
When to start DbD for cell ther-
apies ldquoThe temptation is to begin
later in the game when you need
reasonable COGS and you need
to be sure of sustainable manu-
facturingrdquo says Hampson ldquoThe
key thing is comparability and
anticipating its implications early
in the clinical program It needs
to be flexible at the early stagesrdquo
Hampson says ldquoBut as you near
Phase III you need to lock in your
equipment evolves
In the bioreactor area there is great interest in moving from 2-D to 3-D processing to enable the processing of the cell volumes required something that companies such as Israelrsquos Pluristem have been doing for some time
Equipment designer Instrom is partnering with companies including BRTI Life Sciences to focus on 3-D cell matrix technologies developed by Dr John Brekke EMD Millipore has been partnering with PharmaCell BV to use its Mobius bioreactor platform to expand and harvest HepRG cells GE Sciences is also evaluating Wave and other systems and set up a center of excellence in Wales recently
In other equipment areas Pall Corp has been partnering with CMDG LLC on cord blood processing technology Following are some of the equipment manufacturers and systems applied in cell therapy development and manufacturing
bull Beckman Coulter bull Corning Cell Stacks and Cell Cube
bull EMD Millipore bull GE Biosciences
bull Thermo Scientificrsquos Nunc Cell Factories bull Pall Corp
wwwbiopharminternationalcom June 2015 BioPharm International eBook 31
Outsourcing Resources Cell Therapy
processrdquo Table II summarizes issues
and points where changes will be
easier
Thus Hampson suggests that
companies whether work ing
with CDMOs or in house think
through such issues as cost of
goods scale and sustainabil-
ity much earlier than they typi-
cally do today ldquoYou donrsquot need to
spend money on these issues but
you do need to think about themrdquo
Hampson says ldquoQuality must be
a key issue even at Phase II trials
and early action pays off laterrdquo
In addition he suggests that
companies th ink about the
e nt i r e p r o c e s s c o mp r e he n -
sively ldquoThere is often a tendency
to focus on the core processing
stepsrdquo Hampson says ldquoBut you
really need to think about every-
thing from collection of mate-
rial through to administration
of product to the patient and all
steps in betweenrdquo
For ce l l therapies d ispos -
able equipment and closed pro-
cesses can be an effective way to
reduce costs and improve quality
and compliance ldquoThey can allow
you to isolate different processes
so that they can share a Class
100000 cleanroom environmentrdquo
Hampson says
ldquoInvesting in automated informa-
tion management can also pay offrdquo
he says ldquowhere an electronic batch
record system that is fully validated
can enable release-by-exception
reducing error documentation
time and overall quality assurance
costsrdquo Hampson says
In addition he notes it is
important to look at costs compre-
hensively an increase in one cost
can for example reduce overhead
improve process sustainability and
cost of goods Table III outlines the
issues
regulations evolve
Cell therapy is still a new area
for regulators and as Preti says
some guidelines are clear and oth-
ers arenrsquot ldquoDevelopment by design
is needed throughout the pro-
cess but the piece we still struggle
with the most is mode of action
(MOA) and product characteriza-
tion Regulatory agencies under-
stand that it is difficult to pinpoint
MOArdquo
Preti emphasizes the importance
of working with regulators ldquoYou
can be in a position to inform and
influence regulations as products
are developedrdquo he says
For any company moving into
this brave new world top-level ques-
tions are needed Preti says empha-
sizing the following ldquoDo you have
an understanding of scale Can you
scale up from very small Can you
characterize the process and control
it for reliability and qualityrdquo
In the stem cell area in particu-
lar this is crucial Preti said since
the product relies heavily on the
process ldquoManufacturing can be
thought of as patient administra-
tion It cannot be separated in
the same way that it can for tra-
ditional medicinesrdquo For contract
suppliers he adds demonstrated
success will be important and
sponsors should consider whether
a prospective partner will be able
to stay with them for the long run
referenCes 1 P Hourd et al Regulatory Challenges
for the Manufacture and Scale-
Out of Autologous Cell Therapies
Massachusetts General Hospital
(Cambridge MA 2013)
2 S Farid et al Biotechnol Bioeng
111(1) 69-83 (January 2014)
3 R Grant Building Deliverable Cell
Therapeutics A Methodical Approach
to Manufacturing Development
(Webinar Oct 22 2014) bp
source invetech
Justifcation driversChange in cost
doseDevelopment
estimate
Unit Op Ref
Change decription
Comparability risk
Quality COGs Scale Sustainability LaborMaterials outplant
Cost Time
P-2 Process change 1 Medium X X darr $ $$$ TT
P-3 Process change 2 High X X X darr $$$ $$$$ TTT
P-4 Process change 3 Low X X darr $$ $$ TTT
P-2 Process change 4 Low X $$ T
QC-4 In-house QC test None X TT
QA-1Electronic Batch
RecordNone X X X
darr $$$$
TTTT
Table III Process changes timing and comparability risks cogs is cost of goods Qc is quality control
32 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Intellectual Property
Protecting Intellectual Property
in Engagements with CMOs
Important IP contractual provisions should be included when working with CMOs
Jennifer L CoLLins
Biotechnology and pharmaceutical companies
often engage contract CMOs to assist with
the development of their drugs This type
of arrangement naturally involves the devel-
opment of intellectual property (IP) so it is
important for both the CMO and the sponsor to iden-
tify pre-existing intellectual property and also define
how rights to new IP will be allocated protected and
enforced by and between the companies
If the arrangement with the CMO is a traditional fee-
for-service arrangement where the company pays the
CMO service fees to perform development work on its
behalf then generally all new IP (other than improve-
ments to the CMOrsquos manufacturing technology) will be
owned by the biotechnology or pharmaceutical com-
pany that engaged the CMO On the other hand if the
arrangement between the CMO and the biotechnology
or pharmaceutical company is more of a collaborative
arrangement where both parties share the costs of devel-
opment as well as any profits from the commercializa-
tion then IP concerns become much more complicated
In that case in addition to describing which party will
Jennifer L CoLLins is a technology and licensing attorney with Morningstar Law Group jcollinsmorningstarlawgroupcom
Fa
na
tic S
tud
ioG
ett
y Im
ag
es
wwwbiopharminternationalcom June 2015 BioPharm International eBook 33
Outsourcing Resources Intellectual Property
own the new IP the contract should
sort out which party will be respon-
sible for obtaining and maintaining
patents on the new IP controlling
litigation against infringers and
defending the IP against challenges
In addition the parties should agree
upfront on how the IP may be used
by each party following various ter-
mination events so that the parties
are not left fighting about such mat-
ters at a time when they may not be
inclined to agree to anything
In both arrangements without
specific contractual provisions to
define and protect the new IP a
biotechnology company or phar-
maceutical company that uses a
CMO for development is at risk of
losing control of and possibly own-
ership of important improvements
to its drugs This article discusses
IP contractual provisions that
should be included in each type of
arrangement
Fee-For-service
development work
Traditionally CMOs perform fee-for-
service development work where
a biotechnology or pharmaceutical
company engages the CMO to per-
form this work for a fixed fee In this
type of arrangement the CMO is a
service provider and typically takes
no ownership interest in the drug or
product that is being developed or
in improvements to an existing drug
or product that is being tested or
developed The contract governing
the relationship nevertheless must
be clear about the IP rights that are
owned and licensed by each party
If the contract does not provide
for proper assignments of IP to the
biotechnology or pharmaceutical
company then it is likely that the
CMO will own any improvements
or other inventions that it develops
in the performance of the develop-
ment services even if that is not the
intent of the parties
Without signed written contracts
that state otherwise under United
States patent law the inventor of
a patentable invention or improve-
ment will own the invention or
improvement even if the inventor
is engaged to develop the invention
or the improvement for a customer
or other third party To ensure
that the biotechnology company or
pharmaceutical company obtains
all the patent and other IP rights
in developments inventions and
improvements created in the per-
formance of services by the CMO
the governing contract between the
biotechnology company or phar-
maceutical company and the CMO
must include written present assign-
ments of those IP rights from the
CMO to the company Indeed based
on recent cases it is crucial that the
assignment clause in the contract
be a ldquopresentrdquo assignment mean-
ing that it must state specifically
that the CMO ldquohereby assignshelliprdquo
rather than a clause stating that the
CMO ldquoagrees to assignrdquo rights in the
future Otherwise the contract will
be interpreted as a promise to assign
rights in the future and the bio
pharmaceutical company will have
to go back to the CMO at some later
point in time for a separate writ-
ten assignment of rights to obtain
all patent and other IP rights in the
developments
While it sounds logical and
straightforward that the CMO
would assign all inventions created
in the development work to its cus-
tomer it is not always that simple
in practice What if the CMO devel-
ops an improvement to its manu-
facturing process in the course of
the development work Most CMOs
will want to reserve ownership of
any improvements to the CMOrsquos
existing IP and confidential infor-
mation This position is not unrea-
sonable as long as the customer
ultimately has the rights it needs in
all new inventions including those
owned by the CMO to take the drug
forward through further develop-
ment and commercialization One
must sort out IP allocation by sub-
ject matter To achieve this allo-
cation the development contract
typically will state that each party
retains ownership of all IP that it
owns as of the date of the contract
(all pre-existing intellectual prop-
erty) It will also state that the cus-
tomer owns its proprietary drug
and all improvements to the drug
or the customerrsquos confidential infor-
mation developed by either or both
parties The development contract
also may state more generally that
the customer owns all inventions
improvements and IP rights related
to the customerrsquos drug With respect
to the CMO and its IP the develop-
ment contract may state that the
CMO owns all improvements to the
CMOrsquos manufacturing process and
to its other pre-existing intellectual
property Again this reservation is
not unreasonable The customer
however should determine whether
it requires access to those improve-
ments or inventions to complete the
development and commercialization
of its drug If such access is necessary
the customer should either negotiate
a license (which may be royalty-free
or royalty-based depending on the
circumstances) to use such improve-
ments or inventions to develop and
commercialize the drug or the cus-
tomer should negotiate the terms
under which the CMO will continue
to use the improvements or inven-
tions to perform development work
andor manufacture the drug for the
customer
In the fee-for-service arrange-
ment the assignment and licensing
of IP rights in new inventions and
improvements is the key intellectual
property issue Intellectual property
considerations become much more
complicated when the biotechnol-
34 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Intellectual Property
ogy or pharmaceutical company
partners with a CMO in the devel-
opment of a new drug or product
where the parties share development
costs and profits from commercial-
ization of the drug or product
cmo as collaborator
Although not as common as the
fee-for-service arrangement a CMO
may partner with a biotechnology
or pharmaceutical company in the
development and commercialization
of a drug or product Generally both
parties are bringing pre-existing IP
to the collaboration such as a drug
from a biopharmaceutical com-
pany and proprietary drug delivery
technology from the CMO In this
scenario the CMO is taking a long-
term interest and often a part-own-
ership interest in the success of the
drug product
Instead of getting paid an hourly
rate or fixed fee for development
work on the drug product the CMO
may share the cost of development
work with the biotechnology or
pharmaceutical partner in exchange
for a share of the profits when the
drug or product is commercialized
Other costs involved in the develop-
ment and commercialization of the
drug or product that may be shared
include the cost of patent prosecu-
tion and the cost of patent litigation
if the drug product is challenged or
if it is misappropriated or infringed
To secure its interest in the profits
from commercialization of the drug
product the CMO may want to take
an ownership interest in the intel-
lectual property rights in the drug
product All of these issues must be
carefully addressed in the develop-
ment contract to avoid both finan-
cial and IP disputes
As with the fee-for-serv ice
arrangement the parties must
allocate ownership of intellectual
property rights pertaining to the
drug product to be commercialized
These rights include both pre-exist-
ing IP rights and new inventions
and improvements developed in
the course of the development con-
tract As with the fee-for-service
arrangement the parties typically
will retain rights to their respec-
tive pre-existing IP Intellectual
property rights to new inventions
and improvements however may
be shared by giving each party a
co-ownership interest in the intel-
lectual property Alternatively such
rights may be allocated by inventor-
ship with each party taking owner-
ship of developments that it invents
and with the parties jointly own-
ing jointly developed inventions
As another alternative the IP rights
may be allocated by subject matter
as in the fee-for-service arrangement
with each party owning improve-
ments and inventions related to its
pre-existing IP regardless of which
party invents those improvements
and inventions
Depending on how the pat-
ent applications are drafted the
IP rights may be ldquosliced and dicedrdquo
more finely One party for example
could own patent rights for a drug
product for one indication while the
other party owns patent rights for
the same drug product for another
indication Decisions about how
to allocate the IP rights should be
made in consultation with intel-
lectual property counsel and must
take into account the manner in
which the drug will be commercial-
ized If one party for example is
to commercialize the product in
North America and Europe and
the other party is to commercialize
the product in the rest of the world
then either the patent ownership
should be allocated by territory or
the development contract should
include exclusive cross-licenses of
each partyrsquos rights in all the intel-
lectual property necessary to com-
mercialize the product with the first
party having an exclusive license to
commercialize the product in North
America and Europe and the second
party having an exclusive license to
commercialize the product in the
rest of the world
If the parties are going to share
ownership of the IP related to the
drug product then the develop-
ment contract also should specify
which party is responsible for pros-
ecuting and maintaining patents
on the drug product Regardless of
which party is responsible for patent
prosecution and maintenance the
other party should be consulted and
involved in key decisions regard-
ing patent prosecution and main-
tenance Unless there are multiple
patents for different indications that
will be commercialized exclusively
by one party and unless each party
has exclusive rights to commercial-
ize the drug product in particular
geographic areas it generally makes
sense for one party to take the pri-
mary responsibility for patent pros-
ecution and maintenance globally
with the other party consulting and
sharing in the cost of the prosecu-
tion and maintenance in accordance
with the profit sharing The party
that is not responsible for prosecu-
tion and maintenance should have
a contractual right to approve patent
counsel and review and approve pat-
ent filings office action responses
and other communications with
patent registries before they are filed
or submitted so that the parties
agree on the proper prosecution and
maintenance strategy
Likewise the development con-
tract should allocate the rights and
responsibilities for asserting and
defending the patents pertaining to
the product in litigation Often these
rights and responsibilities are allo-
cated by territory according to com-
mercialization rights If one party
for example has the exclusive right
to commercialize the drug product
wwwbiopharminternationalcom June 2015 BioPharm International eBook 35
Outsourcing Resources Intellectual Property
in the US then that party would
have the first right and responsibil-
ity to assert the patents on the drug
product against potential infringers
and defend the patents on the drug
product against infringement claims
in the US Likewise if one party has
the exclusive right to commercial-
ize the drug product for a particular
indication then that party would
have the first right and responsibility
to assert or defend the patents per-
taining to the product with respect
to that indication Both scenarios
can present challenges First some
courts will not recognize an exclu-
sive licensee as having standing to
assert a patent That court might
only allow the owner of the patent
(and not the exclusive licensee) to
bring a lawsuit asserting the patent
It is crucial therefore that contrac-
tual provisions relating to patent liti-
gation require the party that owns
the patent to cooperate in any litiga-
tion and to join the suit as a party if
necessary
Another potential problem is that
any litigation that asserts the pat-
ent is likely to draw a counterclaim
that the patent is invalid thus put-
ting the patent itself at risk of invali-
dation While one party might be
threatened by a potential infringer
in a particular market or for a partic-
ular indication and therefore might
want to assert the patent against the
potential infringer the other party
might not want to put the patent at
risk as to other markets and other
indications For these reasons the
contractual provisions pertaining
to patent litigation must be care-
fully drafted in consultation with
intellectual property counsel who
understands standing issues and
the potential areas for dispute The
contractual provisions also should
include dispute resolution provi-
sions for situations when the parties
do not agree on whether a patent
should be asserted
Finally while the parties may
want and expect their relationship
to continue for the full term of the
patents and the development con-
tract the parties must carefully
consider the IP ramifications of an
early termination of the develop-
ment contract and the relationship
particularly if the development con-
tract is terminated for breach If the
parties are sharing in the ownership
commercialization and profits gen-
erated by the drug product devel-
oped by the collaboration then
all of that must be unwound upon
termination The development
contract should be as specific as
possible with respect to the effect of
various types of termination on the
intellectual property and contin-
ued commercialization of the drug
product In particular the parties
may agree that if the development
contract is terminated due to breach
by one party then that breaching
party must relinquish and transfer
all of its rights with respect to the
drug product to the other party to
allow the non-breaching party to
continue the commercialization of
the drug product post-termination
Whether the necessary rights are
assigned or licensed whether the
terminated party should receive a
royalty for the transfer or license of
those rights and what if any pre-
existing IP is licensed to enable the
non-breaching party to continue
commercializing the drug product
are all key factors for negotiation
The development contract should
also address other types of termi-
nation such as termination for
insolvency and termination with-
out cause (ie if one party decides
it no longer wants to commercial-
ize the drug product) In each case
the effect of termination on the IP
rights should be carefully analyzed
and a competent IP counsel should
carefully draft post-termination
assignments and licenses
conclusion
While IP lawyers are not equipped
with crystal balls they can be
extremely helpful in analyzing par-
ticular development commercializa-
tion and post-termination scenarios
all of which affect IP in a drug devel-
opment arrangement Contractual
provisions related to IP must be
carefully drafted to align with the
strategic business objectives of any
relationship and particularly one
whose purpose is the development
and commercialization of intellec-
tual property Without a clear con-
tract each collaborator is at risk of
losing important rights bp
Ad Index
AJINOMOTO ALTHEA 21
AVID BIOSERVICES INC 15
CYTOVANCE BIOLOGICS 27
EMERGENT BIOSOLUTIONS 13
EUROFINS LANCASTER LABORATORIES 7
SAFC BIOSCIENCES SIGMA ALDRICH 17
THERMO FISHER SCIENTIFIC 23
TOSOH BIOSCIENCE 11
WATERS CORP 3
Company Page
![Page 12: OUOURT NG I C RESOURCESfiles.pharmtech.com/alfresco_images/pharma/2019/03/08/... · 2019-07-22 · VIDEO INTERVIEW Biologics Development and Manufacturing Trends: Part I ... Media](https://reader034.vdocuments.us/reader034/viewer/2022050113/5f4aca886c0d6724390eb040/html5/thumbnails/12.jpg)
12 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources CROCMO Viewpoints
Biopharma Advances
Demand Specialized Expertise
Contract service providers share insights on biopharma market developments and the implications of biosimilar drug approvals
The ediTors of Biopharm international
The approval of the first biosimilar in the
United States as well as continuing consolida-
tion in the biopharma and contract develop-
ment and manufacturing markets are just
two indicators of the ongoing evolution of
biopharmaceutical development Representatives of
contract service providers shared observations trends
and projections with BioPharm International
Roundtable participants are Gary Chambers busi-
ness manager biopharma labs Europe SGS Bill
Hartzel director of strategic execution Catalent
Pharma Solutions Chris R Lively PhD director of
biopharmaceutical services PPD Scott Lorimer
VP Global Operations Patheon Biologics Eugene
McNally PhD executive director PPD Consulting
Rekha Patel global director large molecules devel-
opment and analytical solutions Catalent Pharma
Solutions and Mark Rogers vice-president SGS
Life Science Services USA
RegulatoRy and business tRends
BioPharm What regulatory changes have positively or
negatively impacted biopharmaceutical development
manufacturing processes
Ad
am
Ga
ult
Ge
tty Im
ag
es
info_contractmanufacturingebsicom | 1 800 441 4225 | emergentcontractmanufacturingcom
Aseptic FillFinish
Pre-Clinical Development
BDSManufacture
Clinical amp Commerical
Lyo CycleDevelopment
Emergent BioSolutions has a proven track record as a world-class provider of contract manufacturing services for both bulk drug substances and sterile injectable drug products Our team has successfully launched 20 commercial products and developedmanufactured over 200 clinical candidates for our clients
Emerging Capability
State-of-the art flexible single-use facility enables turnkey upstream and downstream solutions for clinical and commercial scale biopharmaceutical drug development
Emergent Contract Manufacturing
Enhancing Life in Every Single Dose
14 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources CROCMO Viewpoints
McNally (PPD Consulting) FDA
establ ished a new Off ice of
Pharmaceutical Quality in 2014
which we anticipate will have major
impacts on the biopharmaceuti-
cal development and manufactur-
ing process This reorganization
was designed to enhance quality
drug assessment by realigning sev-
eral elements of the preapproval
and surveillance inspection pro-
cess Integrating risk-based review
GMP inspection implementation
of quality by design and the new
FDA process validation guidance
within one office is expected to
significantly change the biophar-
maceutical development and manu-
facturing process
H a r t z e l ( C a t a l e n t P h a r m a
Solutions) In todayrsquos market there
are significant manufacturing
challenges in traditional glass vial
filling applications These chal-
lenges manifest in quality issues
with the final container closure
and may be related to microbial
contamination glass particulates
and foreign materials that lead to
necessary market action causing
supply issues
Lorimer (Patheon Biologics) The
greatest regulatory change in recent
times is the acceptance and approval
of biosimilars
BioPharm What business trends
have posit ively or negatively
impacted biopharmaceutical devel-
opmentmanufacturing processes
H a r t z e l ( C a t a l e n t P h a r m a
Solutions) Today there is a stronger
emphasis in the development life-
cycle on the delivery of the mol-
ecule to the patient and not just
the molecule itself Deliverydevice
experts are being added to teams
at Phase II to improve the delivery
beyond the traditional vial
Lively (PPD) Growing interest
in biopharmaceutical drug devel-
opment necessitates partnering
between clients and contractors to
increase industry capacity breadth
of capabilities expertise and
the experience required to bring
these drugs to market The client
will receive the most benefit by
selecting a high-quality contract
research organization (CRO) lab
that is able to meet its needs and
work collaboratively with the cli-
ent to ensure timely development
Lorimer (Patheon Biologics) The
trend of small biotech partner-
ing with large pharma for clinical
manufacturing and development
has certainly facilitated the full
development of more novel mol-
ecules Also the increasing trend
toward outsourcing of GMP biolog-
ics manufacturing ensures biopro-
cessing and testing is performed
by expert manufacturers with
proven track records in quality and
biomanufacturing This helps to
reduce the risk to clinical programs
and product safety
technicalscientific tRendsBioPharm Can you describe pro-
ductivity improvements your com-
pany has experienced from new
technologies
Patel (Catalent Pharma Solutions)
Catalent Pharma Solutions has sig-
nificant ongoing investments in
enhancing our large-molecule ana-
lytical capabilities and productiv-
ity to meet and advance current
industry needs Recent invest-
ments include the updatednew
technologies new assay strategies
and updated electronic systems
and processes
Lively (PPD) Evolving character-
ization expectations for biologics
have driven improvements in ana-
lytical equipment processes and
systems Ultra performance liquid
chromatography (UPLC) systems
have improved resolution and sen-
sitivity while reducing run times
In addition 2D high-performance
liquid chromatography (HPLC)
high-resolution mass spectrom-
etry (MS) allows for analysis of
samples incompatible with tradi-
tional MS Reporter gene bioassays
apply genetically engineered cell
lines both to directly model mech-
anisms of action and to amplify
assays for improved performance
with shorter incubations and
increased signalnoise relative to
standard bioassays
Lorimer (Patheon Biologics) The
main productivity improvement
has been increasing the through-
put of products in Patheonrsquos mul-
tiproduct biopharmaceutical GMP
facilities Single-use disposable
bioreactors and similar single-use
bioprocess equipment minimize
plant downtime which is tradi-
tionally required for line clearance
and product changeover The com-
plexity of product changeovers is
reduced by single-use technology
which decreases the need for clean-
in-place steam-in-place and qual-
ity control testing Typically line
Approval of the first
biosimilar in the
United States as well
as consolidation in
the biopharma and
contract development
and manufacturing
markets are just
two indicators of the
ongoing evolution of
biopharmaceutical
development
YOUR PARTNER FROM CONCEPT TO COMMERCIAL
1
42
5
3CELL LINE DEVELOPMENT
bull Cell line development amp selection
bull Cell line characterization amp optimization
bull Subcloning
bull Suspension adaptation
PROCESS DEVELOPMENT
bull Upstream development amp optimization
bull Media optimization feeding strategyamp design including DoE approach
bull Downstream development ampoptimization
bull Process optimizationprocess scale-up
bull Viral inactivationremoval study design
bull Formulation development amp screening
bull Up to 100L controlled bioreactors
bull Process validation
ANALYTICAL METHODS DEVELOPMENT
bull Development feasibility optimizationtransfer qualification amp validation of methods
bull Identity purity potency safety ampcharacterization
cGMP BIOMANUFACTURING
bull Commercially-licensed facility
bull Flexible manufacturing capabilities
bull Stainless steel amp single-use systemsfrom 100L-1000L
bull FDA EU amp ANVISA inspected
QUALITY AND REGULATORY SERVICES
bull Regulatory strategy amp submissions
bull cGMP CMC Section 7 support
bull In-process amp release testing
bull Stability testing
bull Reference standard generation
For more information please visit us at wwwavidbiocom or
e-mail businessdevelopmentavidbiocom
THE AVID
ADVANTAGE
16 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources CROCMO Viewpoints
clearance time is reduced by sev-
eral days
R o g e r s ( S G S L i f e S c i e n c e
Services) As an analytical ser-
vice provider SGS is constantly
in search of means to improve
its laboratory efficiencies partic-
ularly those that enhance turn-
around time without adversely
effecting quality With this in
mind substitution of HPLC for
UPLC rapid microbiolog ica l
screening methods and invest-
ment in automated approaches to
complex analytical problems such
as protein sequencing are now
being used within the SGS labora-
tory network
Chambers (SGS) From a CRO
point of view the main produc-
tivity improvements in analytics
have been from higher through-
put systems and data analysis The
move to these faster systems with
semiautomated data processing has
allowed us to improve turnaround
times which are passed on to cli-
ents in terms who win on faster
to market times and faster gono
decisions
BioPharm What additional tech-
nology improvements are needed
to improve the efficiency of bio-
processing
Lorimer (Patheon Biologics)
Process analytical technology
(PAT) for continuous monitoring of
bioprocesses is helping reduce the
variability on biopharmaceutical
manufacturing
Also biopharmaceutical devel-
opment and process validation
have been accelerated by the use
of mini-bioreactor systems which
enable a large amount of process
development data to be gener-
ated within a very short timeline
These multi-bioreactor systems
can reduce process develop -
ment timelines by months when
applied to early-stage or late-stage
bioprocesses
Rogers (SGS Life Science Services)
The development of many tech-
nologies follows a common path
from academia to commercial
application and nowhere is this
more evident than in the field of
bioprocessing In almost all exam-
ples the key to this progression
lies in the ability to simplify opera-
tional aspects of the technology
and improve throughput This has
in the past been clearly demon-
strated in for example the field of
mass spectrometry and is currently
evolving with techniques involved
in biophysical characterization
BioPharm What is the greatest
technical challenge facing biophar-
maceutical companies today
Hartzel (Catalent Pharma Solutions)
Cost to manufacture will continue
to be a major challenge for the
industry especially with the rise
of biosimilars and market pressures
to drive down the cost of medi-
cines However the products that
are coming to market are more
targeted which leads to smaller
batch sizes This is counter to the
manufacturing adage of being able
to leverage economies of scale to
drive out costs hence the need to
focus on alternatives technologies
and innovation to reduce the man-
ufacturing costs versus economies
of scale
Lively (PPD) Application of ana-
lytical techniques to better char-
acterize innovator and biosimilar
or follow-on products by physico-
chemical and functional methods
are required and will continue to
be driven by the complexity of
biologics development For exam-
ple changes in formulations may
cause different leachable profiles
requiring increasing emphasis on
extractablesleachables techniques
(ie high-resolution MS) to sup-
port characterization of formu-
lation effects identification of
degradation and impurities and
determination of their potential
impact through application of
potency bioassays
Lorimer (Patheon Biologics) Most
of the technical challenges for
manufacturing have been over-
come and the technologies for
development and manufactur-
ing have been widely adopted
Perhaps the greatest challenge is in
clinical development of novel and
originator molecules where in-vitro
model systems are still not a great
predictor of clinical performance
Rogers (SGS Life Science Services)
To highlight one technical chal-
lenge above all others in todayrsquos
biopharmaceutical industry is
very difficult The complexity of
biotherapeutics often results in
considerable technical difficul-
ties as for example in the area
of impurities recognition of host-
cell proteins (HCPs) and identi-
fication of structural variants at
trace levels are certainly high on
the list of technical concerns The
necessary inclusion of relatively
elaborate analytical techniques
such as sedimentation velocity
analytical ultracentrifugation (SVndash
AUC) within a traditional qual-
ity control release environment is
also not without problems
BioPharm What are the pros-
pects for continuous manufac-
turing to be firmly established in
bioprocessing What are the road-
blocks to implementation
Lorimer (Patheon Biologics)
Continuous product ion f rom
mammalian cell cultures has been
operated in perfusion bioreactors
for many years The main road-
block for continuous processing is
downstream processing of proteins
which currently demands discrete
and distinct unit operations for
removal of impurities removal
of contaminants concentration
of the products and formulation
each in separate controlled steps
Introducing a next generation chemically-defined CHO fed-batch media platform from SAFC Developed across a range of widely used industrial CHO cell lines this newest portfolio media delivers exceptional titers and economic efficiencies Adaptation is simple Celebrate performance and accelerate your bio-development process
Celebrate Request your complimentary sample at sigma-aldrichcomCHOperformance
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EX-CELLreg ADVANCEDtrade CHO FED-BATCH SYSTEM
CELL CULTUREPERFORMANCE
copy2015 Sigma-Aldrich Co LLC All rights reserved Sigma-Aldrich SAFC and EX-CELL are trademarks of Sigma-Aldrich Co LLC registered in the US and other countries
NEXT GENERATION MEDIA PLATFORM
18 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources CROCMO Viewpoints
and which are not currently ame-
nable to continuous processing
the Rise of biosimilaRs
BioPharm What impact w i l l
biosimilar drugs have on bio-
pharma businesses bioprocessing
approaches and the contract ser-
vices market
Rogers (SGS Life Science Services)
The European biopharma land-
scape has already experienced
impact of the biosimilar drug mar-
ket leading to rapid expansion of
traditional small molecule generic
manufactures into the bio arena
Recent FDA approval of the Sandoz
biosimilar Zarixo may be the seed
for similar changes in the US pro-
viding a potential new line of busi-
ness for established pharmaceutical
companies Contract service pro-
viders such as SGS who already
have considerable experience with
biosimilars are able to offer exper-
tise to businesses new to this mar-
ket and will no doubt benefit from
such expansion in the US
Lively (PPD) Increased invest-
ment in biosimilars is driving
interest in improving and stream-
lining the development processes
as well as the sensitivity and scope
of characterization assays used to
compare biosimilars and innova-
tor drugs The expanding capac-
ity needs result in partnerships
between clients and their contrac-
tors with the systems experience
and expertise to achieve the qual-
ity and speed required while meet-
ing all regulatory expectations for
product approval
Chambers (SGS) With nearly
20 years exper ience perform-
ing biosimilar analysis the big-
gest impact had been the massive
increase in the characterization
needed for biosimilars compared
to innovators (although higher
standards are now needed for new
innovators too) This has resulted
CMOs Add Capabilities
Consolidation in the contract development and manufacturing market has resulted in new capabilities and facility expansions
In May 2015 CMC Biologics announced that it is expanding its Copenhagen Denmark facility to increase its manufacturing capacity through the installation of six 2000-L bioreactors The bioreactors can be run singly or in groups simultaneously or sequentially and are part of the companyrsquos signature Bioreactor 6Pack single-use program The Copenhagen installation will begin initial GMP production in November 2015 and will feature three bioreactors to start Three bioreactors will be added at a later date to complete the configuration Meanwhile the Bioreactor 6Pack at CMCrsquos Seattle facility will complete its first GMP run in mid-2015 and will be ready for commercial launch by the end of the year Through its recent expansions CMC plans to expand its global capacity by more than 30000 liters in the United States and Europe
Also in May 2015 SAFC announced an expansion to its St Louis MO facility to support the commercial-scale production of antibody-drug conjugates The facility which is expected to be online and operational in the third quarter of 2015 was designed to meet SafeBridge category 4 compound handling requirements for highly active or cytotoxic compounds The expansion of an existing Carlsbad CA location will enable SAFC to offer fillfinish capabilities of viral products to its clients in the gene therapy viral vaccine and immunotherapy sectors
Rentschler announced in March 2015 that a 2000-L bioreactor that the company commissioned and built in six months is up and running The bioreactor will be integrated into existing manufacturing suites containing two 1000-L single-use bioreactors according to a company statement The companyrsquos twin bioreactor systemmdashdesigned for running two main bioreactors in parallel with one shared downstream processing unitmdashwill be functional by 2017 The twin system is estimated to double the companyrsquos production capacities for cell culture-derived proteins
In December 2014 FUJIFILM Diosynth Biotechnologies USA (FDBU) acquired Kalon Biotherapeutics adding viral and cell-culture vaccine expertise and capabilities In other activity FDBU started construction of a three-story 62000-ft2 facility in Research Triangle Park NC in January 2015 to house the companyrsquos process and analytical research and development process sciences and stability groups The expected completion date is Q4 2015
In September 2014 PCI a provider of packaging services acquired Biotec Services International a provider of clinical-trial services and temperature-controlled pharmaceutical services headquartered in Bridgend Wales UK The addition expanded PCIrsquos presence in the European Union and added packaging storage and distribution capacity and consultative services for clinical-trial supplies In January 2015 Biotec announced the validation of its clinical supply facility expansion which added almost 50 to the companyrsquos clinical trial materials handling capacity
wwwbiopharminternationalcom June 2015 BioPharm International eBook 19
Outsourcing Resources CROCMO Viewpoints
in challenges in data handling
interpretation and data presenta-
tion Biosimilars have also caused
the re-emergence of orthogonal
techniques like size exclusion
chromatographyndashmulti-angle laser
light scattering (SEC-MALL) and
SV-AUC for aggregation and cir-
cular dichroism (CD) and fourier
transform infrared spectroscopy
(FTIR) for higher-order structure
as critical analyses to understand
and compare and detect subtle
higher-order structural differences
between innovator and biosimilar
samples
Hartzel (Catalent Pharma Solutions)
The rise of biosimilar drugs will
dawn the next generation of bio-
logic manufacturing and force
the industry to look at new ways
of manufacturing to drive down
costs Therefore the industry will
seek new manufacturing partners
with strong technical expertise to
drive out costs through innovation
and operational excellence
Lorimer (Patheon Biologics)
Genera l ly b ios imi la r d r ugs
will encourage competitiveness
within the biopharma sector
Biomanufacturers expect increased
pressure on cost of goods and
pricing Biopharmaceutical con-
tract service providers with a flex-
ible multi-product operation and
proven track record in the indus-
try are well placed to ensure care-
ful control of manufacturing costs
and product quality Processing
approaches wonrsquot change in terms
of technology but there will be a
greater emphasis on operational
excellence to reduce costly inef-
ficiencies and improve yields from
bioprocesses As more biosimilars
come to the forefront and as the
industry trend for outsourcing
continues increasing operational
flexibility while maintaining the
highest quality standards will be
the keys to success
business challenges
BioPharm What is the greatest
business challenge facing biophar-
maceutical companies today
Lively (PPD) As with all phar-
maceutical drug development the
greatest challenge is getting new
life-changing and potentially life-
saving drug candidates to mar-
ket Biopharmaceuticals face more
challenges than traditional small-
molecule drug products because
the science of characterization
of such biologic drugs is rapidly
evolving along with the regulatory
landscape Those companies that
are best able to successfully char-
acterize and differentiate innovator
and biosimilar products for safety
and efficacy will have the greatest
opportunity to benefit
the knowledge gap
BioPharm In what areas do you
see knowledge or expertise gaps in
current biopharmaceutical compa-
nies Why do these gaps exist
Lorimer (Patheon Biologics) There
is a gap in translating good sci-
ence to industrial applications of
technologies that provide for reli-
able efficient cost effective man-
ufacturing at commercial scale
Maintaining a focus during early
development on eventual commer-
cial manufacturing requirements
while balancing limited develop-
ment resources requires a broad
base of coordinated organiza-
tional skillsets and a disciplined
approach
Hartzel (Catalent Pharma Solutions)
Devicedelivery expertise is an
area that has a potential gap For
biologics the historic default con-
tainer closure has been a tradi-
tional glass vial As the healthcare
industry seeks ways to improve
patient care and reduce costs the
delivery to the patient needs to
adopt new technologies and this
is why we have seen a rise of pre-
filled syringes and autoinjectors
These technologies will continue
to evolve and so will the demand
for devicedelivery experts
Lively (PPD) One of the chal-
lenges we see is the various levels
of knowledge and expertise that
exist between biopharmaceutical
RampD and the testing and regula-
tory industries That differential is
impacting those industriesrsquo ability
to fully consider and effectively
implement expectations and guid-
ance for physicochemical and
functional characterization expec-
tations of biologic drugs
Lorimer (Patheon Biologics) The
commercial biopharmaceutical
industry demands global sourc-
ing of materials services supply
and ultimately distribution to each
patient This requires a robust inte-
grated supply chain to deliver high
value products to patients on-time
and at the right quality Doing this
reliably and efficiently with long
production lead times and uncer-
tain market sales forecasts is an
industry wide challenge
Speed-to-market remains a key
challenge to the development of
biopharmaceuticals Speedy first-
time-in-man clinical trials can be
a major hurdle for small biotech
companies and large pharma alike
Rogers (SGS Life Science Services)
I believe there continues to be a
significant problem in the level of
fundamental scientific expertise
within many biopharmaceutical
businesses In part this may be
attributed to the lsquokitrsquo and lsquoblack
boxrsquo approach of many modern
day technologies Due to the
complexity of many biopharma-
ceuticals their development and
success as therapeutics requires a
comprehensive range of scientific
disciplines and expertise which
can be difficult to fully realize
internally particularly for small
and mid-size companies bp
20 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources FillFinish
FillFinish Trends
Automation and disposables continue to reduce human error
Eric s LangEr
Fillfinish operations continue to be domi-
nated by trends in automation and the adop-
tion of single-use equipment But these are
by no means the only factors affecting these
high-value operations according to BioPlan
Associatesrsquo latest biomanufacturing study (1) Fill
finish processes are among the most outsourced
activities in biomanufacturing today and a service
providerrsquos capacity for vialing pre-filled devices
and lyophilization is crucial In a recently pub-
lished whitepaper (2) BioPlan Associates determined
that there is sufficient global in-house capacity
for biologics but the need continues to grow for
greater access to specialized outsourcing competence
Whatrsquos trending is significant improvements in auto-
mation and operations
AutomAtion And single use defining Cmo strAtegy
The top trends today involve automation and devel-
opment of better disposable technologies As part of
the BioPlan study biomanufacturers were asked to
select the trends they believe to be the most impor-
tant in fill and finish today The top three trends
are single-use equipment automation in full isolator
units and facilities becoming multi-product ori-
ented (see Figure 1)
Other important trends were noted including
bull Increased serialization and product labeling for
anti-counterfeiting
Eric s LangEr is president and managing partner at BioPlan Associates Inc elangerbioplanassociatescom tel 3019215979 wwwbioplanassociatescom
Ma
ria T
ou
tou
da
ki
Ge
tty Im
ag
es
WITH ALTHEA YOU HAVE THE POWER TO MAKE
You have the power to make a difference To make new therapeutics that improve quality of life and inspire a healthier world To do this you need a manufacturing partner who embraces your every challenge as its own who shares your unwavering tenacity and dedication from clinical studies through commercial success Thats The Power To Make
PLAY VIDEO
CONTRACT
MANUFACTURING
Q Development
Drug Substance
lj Drug Product
(D Al TH EA I THE POWER TO MAK A MEMBER OF THE AJINOMOTO GROUP
22 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources FillFinish
bull More f i l l f i n i sh fac i l i t ie s
o p e r a t i n g i n d e v e lo p i n g
regions
bull C o m p u t e r - b a s e d v i s u a l
i n s p e c t i o n a r t i f i c i a l
intelligence
bull Use of complex administration
systems
single-use equipment in fillfinish operAtionsT h e a d o p t i o n o f d i s p o s -
ab le e qu ipme nt i n f i l l f i n -
i s h o p e r a t i o n s e l i m i n a t e s
cross-contamination risks and
adds flexibility in process scale
While regulatory rest r ic t ions
may be increased by the adop-
tion of such equipment single-
use appl icat ions a lso enable
contract manufactur ing orga-
nizat ions (CMOs) to increase
fac i l i t y ut i l i z at ion t h rough
multi-product strategies which
can decrease their cost of goods
Experts in the f ield discussed
these trends
Peter Pekos CEO and president
of Dalton Pharma Services a fill
finish CMO says ldquoFor a CMO
disposables can be attractive hellip
For example a disposable isola-
tor can be packed and stored pre-
sterilized for use when needed
a f ixed isolator requires f ixed
space at all times Disposables
also allow a CMO to handle proj-
ects using specific systems for
non-typical project needs such
as disposable isolators without
going to the expense of buying
permanent isolator infrastruc-
ture Disposables do not obviate
the need for technical expertise
hellip so the need for a CMO isnrsquot
really reduced In fact CMOs
with expertise in single-use sys-
tems hellip can make them more
attractiverdquo
Mar t ina Fe r neman cor po -
rate development manager at
Recipharm bel ieves that the
adoption of single-usedispos-
able equipment is now impacting
f i l l and f inish ldquoIn mult ipur-
pose sites the cleaning proce-
dures will become more crucial
to avoid cross contamination
Single-use equipment [also] has
the advantage of shorter lead
t imes and lower procurement
costs Since no cleaning proce-
dure has to be established and
aseptic connections are easier to
be built-up the use of single-
use equipment is not only faster
but also safer than conventional
equipmentrdquo
AutomAtion in full isolAtor unitsW hi le s ing le -use equ ipment
adoption may be one of the hot-
test f i l lf inish trend automa-
tion technologies may actually
be experiencing more rapid rates
of implementation among bio-
manufacturers Indeed sepa-
rate results from BioPlanrsquos 12th
annual study suggest that the
industry wi l l be as l ikely to
implement automation technolo-
gies as they will use single-use
f i l l-f inish devices dur ing the
next 24 months
The removal of human factors
is a key to improving product
quality Isolators and automa-
tion are therefore key drivers
as facilities seek to improve their
i n f r a s t r u c t u r e I n nov a t io n
around equipment and facilities
able to handle multiple products
is going to continue Flexibility
is key as the reduced flexibility
of isolators (and higher cost) in
relation to traditional restricted
access barrier (RAB) systems may
deter some CMOs from adopt-
ing isolators The jury is st i l l
out because the decision fac-
tors between RAB and isolators
are complex and this tends to be
a high-cost decision often left
to the larger f illf inish CMOs
ldquoCMOs will adopt isolator tech-
nologies in their processes to
meet industry needs and reduce
r isk In some cases this wil l
also include disposable isolators
which can offer the benefits of
fixed isolators but add a degree
of f lexibil ity to the manufac-
turerrdquo Pekos notes
According to Ferneman adopt-
ing automat ion in ful l isola-
tor units to reduce the need for
operators is a trend seen in the
CMO market ldquoUse of barr ier
technology (RABS or isolators)
should ensure optimal protec-
t ion of ster i le areas Isolators
bear a better potential to prevent
biocontamination Since the iso-
lator is a closed system a lower
air quality than in RABS systems
can be usedrdquo For freeze-dried
products the RABS system is a
better choice because loading
has to be performed in class AB
surrounding
Fig
ur
e 1
is
co
ur
te
sy
oF
th
e a
ut
ho
r
Figure 1 selected bioprocessing fllfnish trends in 2015
Single-usedisposable equipment
adoption55
36
35Facilities becoming more multi-
product-use oriented
Automation in full isolator units
reduce need for operators
More compounds More accuratelyFaster than ever
Quantitation transformed
Todayrsquos range of possible therapeutic agents from small molecules to peptides to antibodies and
ADCrsquos makes quantitative bioanalysis a challenge Quantify potential therapeutics faster and more
accurately with our new portfolio of LC-MS instruments sample prep solutions and software HRAM
solutions using Thermo Scienti ctrade Orbitraptrade MS enables selectivity for complex molecules while
triple quadrupole MS delivers SRM sensitivity and speed to detect targeted compounds more quickly
Meet todayrsquos challenges with us and together wersquoll transform quantitative bioanalysis
Thermo Scienti ctrade Orbitrap Fusiontrade MSUnprecedented depth of analysis and
throughput for biological discovery
Thermo Scienti ctrade TSQ Quantivatrade MSLeading SRM sensitivity and speed
in a triple quadrupole MSMS
Thermo Scienti ctrade Q Exactivetrade MSScreen and quantify known and unknown targets with HRAM Orbitrap technology
copy 2
014
Ther
mo
Fish
er S
cien
tifi c
Inc
All
right
s re
serv
ed A
ll tr
adem
arks
are
th
e pr
oper
ty o
f The
rmo
Fish
er S
cien
tifi c
and
its
subs
idia
ries
bull Discover more at thermoscienti ccomquan-transformed
24 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources FillFinish
Cmos stAying
AheAd of the Curve
In the whitepaper on in-house
fillfinish operations for recom-
binant therapeutics (2) BioPlan
found relatively low average in-
house capacity utilization rates
for lyophilization (55) pre-filled
devices (58) and vialing (70)
This finding suggests that for fill
finish CMOs the real value isnrsquot
necessarily in providing additional
flexible capacity but rather in posi-
tioning themselves as providing
highly sophisticated and novel
technologies and expertise in fill
finish services Indeed CMOs are
expected to have state-of-the-art
equipment As Pekos notes ldquoCMOs
who implement flexible and inno-
vative technologies to make man-
ufacturing or development more
efficient faster compliant or more
economical all serve to make them
more attractive to customersrdquo
For CMOs that make use of
innovative fillfinish technologies
there appears to be a good deal
of demand Results from BioPlanrsquos
annual studies indicate that fill
finish services are among the most
widely and heavily outsourced
biomanufacturing activities today
and are also among the activities
that biomanufacturers are most
likely to outsource at significantly
higher levels in the future
Biomanufacturers and CMOs are
actively looking to their fillfin-
ish equipment suppliers and are
beginning to demand additional
new technologies innovation and
product development In 2014 for
example when the top areas that
biomanufacturers wanted their
suppliers to focus their develop-
ment efforts on were measured
fillfinish services topped the list
cited by 23 of biomanufacturers
Not only did that figure represent
a substantial increase from years
past (13 in 2011) but it was also
ahead of other services including
upstream and downstream process
development services
Fillfinish will continue
to be an area of
growth for CMOs
There are a number of areas in
which suppliers can add value to
fillfinish innovation according
to industry experts Jim Agalloco
president of Agalloco amp Associates
in Belle Mead NJ says ldquovendors of
equipment and components to fill
finish must continue their roles as
technology leaders Innovation in
this market has always been sup-
plier driven because the operating
firms do not have the necessary
expertise Collaboration between
equipment manufacturers and
component suppliers is essential
for implementation of new con-
tainer systems single-use dispos-
ables and other advancesrdquo
Ronald Malone senior principal
scientist at Novartis Vaccines says
ldquoBlow-fill-seal containerclosure
systems are beneficial for small-
volume parenterals However over-
all cost may still be higher per unit
than traditional vialstopper fill-
ing Vaccines and biologicals can
benefit from single-dose disposable
systems that drive down the cost
of the containerclosure system
This will assist the global supply to
developing world countries where
these products are truly neededrdquo
W B W i e d e r s e i m o f
PharmaBioSource in Wayne PA
states ldquoWe see smaller higher
technical facilities inclusive of dis-
posables (isolators and not RABS)
and advanced aseptic work cell
technology as the wave of the
futurerdquo
WhAt does the future hold
BioPlanrsquos survey data and indus-
try interviews indicate that fill
f inish will continue to be an
area of growth for CMOs that
maintain the required technical
quality and regulatory expertise
in this segment Experts have
taken note of CMOsrsquo introduc-
tion of smaller filling machines
for syringes or vials a trend that
may be in response to the indus-
try-wide move towards smaller-
scale manufactur ing projects
This shift may be accelerated by
the advent of biosimilars which
should provide an increasing
number of projects for fillfin-
ish CMOs although likely on a
smaller scale This increase in
projects could lead to potential
mergers and acquisitions with
some experts noting that fillfin-
ish CMOs are already engaging
in this trend toward larger capac-
ity and global operations
Indeed within the past 18
months a number of acquisi-
tions have occurred including
Pfizerrsquos acquisitions of Hospira
a nd In noPha r ma Pat heonrsquos
mergers in the contract services
space IDT Biolog ika invest-
ments Vet ter invest ing USD
$100 million to upgrade fill-fin-
ish facilities in the United States
a nd Ger ma ny a nd Ba xte r rsquos
investment in German facilities
and numerous others (3)
For CMOs to stay ahead of the
curve they will likely need to
continue to adopt disposables
technologies and advance their
automation in full isolators Ray
Cardin of PharMax Consulting
says ldquoIncreased use of dispos-
able pre-sterilized f illing tech-
nologies [are future trends] The
combination of these pre-ster-
ilized units with the coming of
age of ster i le connectors that
provide high sterility assurance
wwwbiopharminternationalcom June 2015 BioPharm International eBook 25
Outsourcing Resources FillFinish
Biologics Development and Manufacturing Trends Part II
Eric Langer Managing Partner BioPlan Associates talks about the results from BioPlan AssociatesOtilde 12th Annual Report and Survey of Biopharmaceutical Manufacturing Capacity and Production Langer discusses what respondents indicated as the number one trend in biologics manufacturing improving efficiencies and the biosimilars market
in less clean environments is
changing the way aseptic pro-
cesses are designedrdquo
Gordon Leichter PhD Eastern
r e g io n a l s a l e s m a n a ge r a t
Belimed in Charleston SC states
ldquoAutomat ion in fu l l i solators
wil l el iminate operator inter-
vention and laser-sealed vials
Automation will become more
integral to building automation
and enterprise systemsrdquo
Douglas Stockdale vice-presi-
dent CMCTechnical Operations
Hi l lhurst Biopharmaceut ica ls
Los Angeles CA says ldquoIndustry
will continue pushing the PAT
[process analytical technology]
envelope to f ind a lternat ive
methods to improve in-process
methodologies and processesrdquo
Fe r ne ma n add s ldquoCu r r e nt
trends in fillfinish innovation
will probably focus the market
authorization holders on a few
strategic products resulting in
outsourcing of a bigger share of
products overallrdquo
ConClusion
Until recently the handling of
ster i le l iquids in the pharma-
ceutical industry has relied on
relatively consistent techniques
during the past 100 years with
relatively slow changes in tech-
nologies and regulations result-
ing in incremental improvements
in safety efficiency and prod-
uct quality During the past 20
years however costly biologics
have taken a prominent indus-
try role The value of these drugs
can often be measured in tens of
thousands per dose This has put
greater pressure on these down-
stream fillfinish operations to
ensure quality safety and cost-
efficiency are not compromised
at this crucial late stage in manu-
facturing Trends in fillfinish for
recombinant therapeutics include
the increased use of isolator
technologies more high-speed
operations and other innovative
approaches including single-use
processing As a result of industry
research BioPlan expects more
outsourcing of fillfinish opera-
tions in coming years
referenCes 1 BioPlan Associates 12th Annual
Report and Survey of Biopharmaceutical
Manufacturing Capacity and Production
(Rockville MD April 2015) www
bioplanassociatescom
2 BioPlan Associates Trends in Aseptic
Bioprocessing Capacity for the Fill and
Finish of Recombinant Biologics An
Analysis of US and European In-house
Capacity and Capacity Utilization (BioPlan
Associates December 2014)
3 Information derived from BioPlan
Associatesrsquo BioFacilities Newsletters Bp
26 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Cell Therapy
Taking a ldquoDevelopment-by-Designrdquo
Approach to Cell Therapies
Whether outsourcing or developing cell therapies in-house success demands a focus on quality cost of goods
and sustainability from the start
Agnes shAnley
Cell therapies both autologous and allo-
geneic have come a long way in just a
few years Countries around the world
most recently Japan have passed regula-
tions designed to speed development of
these treatments which are now a big and growing
global business
In 2013 according to the Pharmaceutical Research
and Manufacturers Association 69 cell therapies six
of them autologous or patient-specific treatments
were in clinical trials or being reviewed in the United
States alone 15 of them in Phase III trials (1)
The road is littered with failures however often
in clinical stages This has been traced to problems
with manufacturing and failure to understand pro-
cess requirements earlier in the development process
Table I outlines manufacturing issues
As a growing number of Big Pharma companies
explore the potential for immune regenerative and
other cell therapies equipment manufacturers includ-
Agnes shAnley is senior editor of BioPharm International
SC
IEP
RO
GE
tt
y Im
aG
ES
wwwcytovancecomResponsive Reliable Resourceful
Your partner in biopharmaceutical contract manufacturing of therapeutic proteins and antibodies from mammalian cell culture and microbial fermentation
28 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Cell Therapy
ing Pall Corp EMD Millipore
and GE Biosystems have set up
centers of excellence to focus on
developing equipment for this
new market Engineering compa-
nies such as Invetech and Instrom
are developing equipment specific
to this niche
More CDMos are entering
Cell therapy Market niChe
Demand for spec ia l i zed ce l l
t he rapy ma nu fac t u r ing a nd
development serv ices is a lso
growing and has attracted Lonza
Bioservices Cognate BioServices
WuXi AppTech and Roslin Cells
among others
NeoStem is fol low ing t wo
paths pursuing its own cel l
therapy pipel ine and explor-
ing contract services through
its contract development and
manufac t u r ing organ i zat ion
(CDMO) subsidiary Progenitor
Cell Therapy (PCT) With bases
in Irvine and Mountain View CA
and Allendale NJ PCT is cur-
rently working with Intrexon and
Fibrocell on connective tissue
treatments and with the United
K ingdomrsquos Adapt immune on
oncology treatments
A new CEO David Mazzo with
a doctorate in analytical chemis-
try and experience running both
private and public international
biopharma companies assumed
NeoStemrsquos leadership in January
He sees no conflict between grow-
ing a pipeline and a contract man-
ufacturing business
ldquoWe are not trying to be two
di f ferent companies and we
do not see the two competing
with each otherrdquo says Mazzo
in an interview with BioPharm
Inte rnat ionalrsquos s i ster publ ica-
tion Pharmaceutical Technology
during his second week on the
job ldquoInstead there is a symbi-
otic relationship between themrdquo
As he sees it the companyrsquos
track record in developing prod-
ucts should attract more spon-
sors ldquoProblems in development
usually occur at the interfaces
Our unique experience of having
lsquodone that beforersquo should be help-
fulrdquo he says
In January PCT entered a
partnership with Invetech an
equipment design firm based in
Australia with offices in San Diego
to develop automated equipment
for cell therapy manufacturing Fig
ur
e 1
is
co
ur
te
sy
oF
in
ve
te
ch
Figure 1 Part of an automated solution being developed by neostem and invetech Automating processes is key to reducing costs
wwwbiopharminternationalcom June 2015 BioPharm International eBook 29
Outsourcing Resources Cell Therapy
The two companies have already
been working together for a year
now honing the design and speci-
fications for the instrumentation
says NeoStemrsquos Chief Scientific
Officer (CSO) Robert Preti The
equipment will tackle cell therapyrsquos
most challenging side autologous
treatments where the manufactur-
ing lot is the patient dose adminis-
tered at the patientrsquos bedside
As Preti notes there really isnrsquot
much available today in the way
of automated equipment for cell
therapy especially on the autolo-
gous side The equipment will sep-
arate and wash cells among other
functions
labor-intensive
proCesses aDD Cost
So far Preti says the company
is evaluating the evolving equip-
ment in NeoStemrsquos own manu-
facturing efforts ldquoOne of the
largest commercial bottlenecks
is the heavy labor required by
processes especially for patient-
specific uses where one batch is
one patientrdquo
The cost of goods i s ver y
high Preti says ldquoSuccess long-
term will require a whole new
approach to development The
goal is to provide high qual-
ity and sustainabilityrdquo he says
Removing manual operat ions
and human error from the pro-
cess will be crucial
Invetech has been work ing
on cell therapy process scale-up
automation for more than 10
years and has successfully com-
pleted projects in North America
Europe and Asia for companies
that include Argos Therapeutics
Aa s t rom CCR M Hu mac y te
Innovacell Janssen kSep Systems
MolMed Organovo and ViaCyte
accord ing to R ichard Grant
global VP of the companyrsquos bio-
pharma operations who has been
with the company for more than
14 years
ldquoThe goal is to develop a mix
of equipment and manufactur-
ing st rateg ies that maximize
quality scalability and sustain-
ability with an eye toward cost-
effect iveness and commercial
viabilityrdquo Grant says Invetechrsquos
solutions typically tailor a mix of
OEM and customized equipment
to the clientrsquos processes The com-
pany recently commercialized
equipment used to manufacture
Janssenrsquos macular degeneration
treatment
Costs of current manufactur-
ing processes for both autologous
and allogeneic therapies are dif-
ficult to peg Last year experts
at University College London
attempted to pinpoint the cost and
overall economics of allogeneic
cell therapy using single-use tech-
nologies (2)
What is clear for both alloge-
neic and autologous systems is
that cell therapy development
Table I Manufacturing scenarios for cell therapies
Attributes Off-the-shelf therapiesPatient-specifc
therapies
Source material Always allogeneic Autologous or matched allogeneic
Batch size Many patients One patient
Business model Similar to pharmabiopharma New
Scaling Scale up (Increased lot size) Scale out (Increased number of lots)
Comparability vs scale Higher concern Lower concern
Manufacturing design drivers
Mission critical success + +++
Optimized process yield +++ +
Dimensional efficiency ++ +-
Integration +- ++
Automation + ++
source invetech
Table II Measuring comparability risk
Risk level Example Timing
None Automated sterility test Before biologics license application
Low Change in process unit op and cell journey is the same
Before 50 accrual in pivotal trials
Medium Change in process unit op and cell journey is similar
Before initiation of pivotal clinical trials
High Change in process unit op and the cell journey is matched
Some Phase II clinical data
source invetech
30 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Cell Therapy
and manufacturing costs are cur-
rently prohibitive ldquoThe starting
points can vary dramaticallyrdquo
Grant says He recalls one cus-
tomer whose autologous process
ran to $80000 per patient in early
stage clinical trials Automation
he says could reduce costs by
40ndash90 depending on the ther-
apy involved
DevelopMent by Design
But before one can automate any
process one must understand it
NeoStem and PCT like a growing
number of companies are taking
the principle of quality by design
(QbD) to heart in their work
Mazzo arguably one of few
life-science company CEOs to
even articulate the QbD concept
explains that the company has
gone a step further and broadened
the International Conference on
Harmonization guidances adopted
by FDA into ldquodevelopment by
designrdquo (DbD)
ldquoWe say first consider the end-
point then take process as is and
understand its unit operations
Develop inputs and outputs and
discrete steps and define the pro-
cess in a way that promotes under-
standingrdquo he says
ldquoThis is challenging given prod-
uct complexity but there is a need
to understand the mechanism of
action very well so you put each
process in this overall envelope
of DbD and consider the cost of
goods scalability and sustainabil-
ityrdquo Preti adds ldquoYou consider the
process from the end only this
time each batch is an individual
patientrdquo
The critical part is defining and
measuring process needs he says
ldquoProduct definition is very impor-
tant particularly the quality target
product profilerdquo explains Brian
Hampson VP of manufacturing
development and engineering at
PCT in an Oct 22 2014 webcast
for the International Society for
Cell Therapy (3)
have the enD in MinD
Such t h ings a s for mulat ion
issues dosage potency impu-
rities residuals and microbial
assurance need to be thought out
clearly from the start Hampson
says as well as indications for
use geographic market projec-
tions cost-of-goods targets and
IP issues
The profile needs to be a liv-
ing document that changes as the
product takes shape Hampson
says There is a tendency for peo-
ple in the industry to ignore the
product profile until they have
all the answers says Hampson
ldquoInstead it needs to be developed
really early even when you donrsquot
have all or even many of the
answers hellip you can leave them
as blanks and continue to review
add to and updaterdquo
The result is not only a tool for
better understanding the prod-
uct process and mechanism of
action but a communication tool
for stakeholders
When to start DbD for cell ther-
apies ldquoThe temptation is to begin
later in the game when you need
reasonable COGS and you need
to be sure of sustainable manu-
facturingrdquo says Hampson ldquoThe
key thing is comparability and
anticipating its implications early
in the clinical program It needs
to be flexible at the early stagesrdquo
Hampson says ldquoBut as you near
Phase III you need to lock in your
equipment evolves
In the bioreactor area there is great interest in moving from 2-D to 3-D processing to enable the processing of the cell volumes required something that companies such as Israelrsquos Pluristem have been doing for some time
Equipment designer Instrom is partnering with companies including BRTI Life Sciences to focus on 3-D cell matrix technologies developed by Dr John Brekke EMD Millipore has been partnering with PharmaCell BV to use its Mobius bioreactor platform to expand and harvest HepRG cells GE Sciences is also evaluating Wave and other systems and set up a center of excellence in Wales recently
In other equipment areas Pall Corp has been partnering with CMDG LLC on cord blood processing technology Following are some of the equipment manufacturers and systems applied in cell therapy development and manufacturing
bull Beckman Coulter bull Corning Cell Stacks and Cell Cube
bull EMD Millipore bull GE Biosciences
bull Thermo Scientificrsquos Nunc Cell Factories bull Pall Corp
wwwbiopharminternationalcom June 2015 BioPharm International eBook 31
Outsourcing Resources Cell Therapy
processrdquo Table II summarizes issues
and points where changes will be
easier
Thus Hampson suggests that
companies whether work ing
with CDMOs or in house think
through such issues as cost of
goods scale and sustainabil-
ity much earlier than they typi-
cally do today ldquoYou donrsquot need to
spend money on these issues but
you do need to think about themrdquo
Hampson says ldquoQuality must be
a key issue even at Phase II trials
and early action pays off laterrdquo
In addition he suggests that
companies th ink about the
e nt i r e p r o c e s s c o mp r e he n -
sively ldquoThere is often a tendency
to focus on the core processing
stepsrdquo Hampson says ldquoBut you
really need to think about every-
thing from collection of mate-
rial through to administration
of product to the patient and all
steps in betweenrdquo
For ce l l therapies d ispos -
able equipment and closed pro-
cesses can be an effective way to
reduce costs and improve quality
and compliance ldquoThey can allow
you to isolate different processes
so that they can share a Class
100000 cleanroom environmentrdquo
Hampson says
ldquoInvesting in automated informa-
tion management can also pay offrdquo
he says ldquowhere an electronic batch
record system that is fully validated
can enable release-by-exception
reducing error documentation
time and overall quality assurance
costsrdquo Hampson says
In addition he notes it is
important to look at costs compre-
hensively an increase in one cost
can for example reduce overhead
improve process sustainability and
cost of goods Table III outlines the
issues
regulations evolve
Cell therapy is still a new area
for regulators and as Preti says
some guidelines are clear and oth-
ers arenrsquot ldquoDevelopment by design
is needed throughout the pro-
cess but the piece we still struggle
with the most is mode of action
(MOA) and product characteriza-
tion Regulatory agencies under-
stand that it is difficult to pinpoint
MOArdquo
Preti emphasizes the importance
of working with regulators ldquoYou
can be in a position to inform and
influence regulations as products
are developedrdquo he says
For any company moving into
this brave new world top-level ques-
tions are needed Preti says empha-
sizing the following ldquoDo you have
an understanding of scale Can you
scale up from very small Can you
characterize the process and control
it for reliability and qualityrdquo
In the stem cell area in particu-
lar this is crucial Preti said since
the product relies heavily on the
process ldquoManufacturing can be
thought of as patient administra-
tion It cannot be separated in
the same way that it can for tra-
ditional medicinesrdquo For contract
suppliers he adds demonstrated
success will be important and
sponsors should consider whether
a prospective partner will be able
to stay with them for the long run
referenCes 1 P Hourd et al Regulatory Challenges
for the Manufacture and Scale-
Out of Autologous Cell Therapies
Massachusetts General Hospital
(Cambridge MA 2013)
2 S Farid et al Biotechnol Bioeng
111(1) 69-83 (January 2014)
3 R Grant Building Deliverable Cell
Therapeutics A Methodical Approach
to Manufacturing Development
(Webinar Oct 22 2014) bp
source invetech
Justifcation driversChange in cost
doseDevelopment
estimate
Unit Op Ref
Change decription
Comparability risk
Quality COGs Scale Sustainability LaborMaterials outplant
Cost Time
P-2 Process change 1 Medium X X darr $ $$$ TT
P-3 Process change 2 High X X X darr $$$ $$$$ TTT
P-4 Process change 3 Low X X darr $$ $$ TTT
P-2 Process change 4 Low X $$ T
QC-4 In-house QC test None X TT
QA-1Electronic Batch
RecordNone X X X
darr $$$$
TTTT
Table III Process changes timing and comparability risks cogs is cost of goods Qc is quality control
32 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Intellectual Property
Protecting Intellectual Property
in Engagements with CMOs
Important IP contractual provisions should be included when working with CMOs
Jennifer L CoLLins
Biotechnology and pharmaceutical companies
often engage contract CMOs to assist with
the development of their drugs This type
of arrangement naturally involves the devel-
opment of intellectual property (IP) so it is
important for both the CMO and the sponsor to iden-
tify pre-existing intellectual property and also define
how rights to new IP will be allocated protected and
enforced by and between the companies
If the arrangement with the CMO is a traditional fee-
for-service arrangement where the company pays the
CMO service fees to perform development work on its
behalf then generally all new IP (other than improve-
ments to the CMOrsquos manufacturing technology) will be
owned by the biotechnology or pharmaceutical com-
pany that engaged the CMO On the other hand if the
arrangement between the CMO and the biotechnology
or pharmaceutical company is more of a collaborative
arrangement where both parties share the costs of devel-
opment as well as any profits from the commercializa-
tion then IP concerns become much more complicated
In that case in addition to describing which party will
Jennifer L CoLLins is a technology and licensing attorney with Morningstar Law Group jcollinsmorningstarlawgroupcom
Fa
na
tic S
tud
ioG
ett
y Im
ag
es
wwwbiopharminternationalcom June 2015 BioPharm International eBook 33
Outsourcing Resources Intellectual Property
own the new IP the contract should
sort out which party will be respon-
sible for obtaining and maintaining
patents on the new IP controlling
litigation against infringers and
defending the IP against challenges
In addition the parties should agree
upfront on how the IP may be used
by each party following various ter-
mination events so that the parties
are not left fighting about such mat-
ters at a time when they may not be
inclined to agree to anything
In both arrangements without
specific contractual provisions to
define and protect the new IP a
biotechnology company or phar-
maceutical company that uses a
CMO for development is at risk of
losing control of and possibly own-
ership of important improvements
to its drugs This article discusses
IP contractual provisions that
should be included in each type of
arrangement
Fee-For-service
development work
Traditionally CMOs perform fee-for-
service development work where
a biotechnology or pharmaceutical
company engages the CMO to per-
form this work for a fixed fee In this
type of arrangement the CMO is a
service provider and typically takes
no ownership interest in the drug or
product that is being developed or
in improvements to an existing drug
or product that is being tested or
developed The contract governing
the relationship nevertheless must
be clear about the IP rights that are
owned and licensed by each party
If the contract does not provide
for proper assignments of IP to the
biotechnology or pharmaceutical
company then it is likely that the
CMO will own any improvements
or other inventions that it develops
in the performance of the develop-
ment services even if that is not the
intent of the parties
Without signed written contracts
that state otherwise under United
States patent law the inventor of
a patentable invention or improve-
ment will own the invention or
improvement even if the inventor
is engaged to develop the invention
or the improvement for a customer
or other third party To ensure
that the biotechnology company or
pharmaceutical company obtains
all the patent and other IP rights
in developments inventions and
improvements created in the per-
formance of services by the CMO
the governing contract between the
biotechnology company or phar-
maceutical company and the CMO
must include written present assign-
ments of those IP rights from the
CMO to the company Indeed based
on recent cases it is crucial that the
assignment clause in the contract
be a ldquopresentrdquo assignment mean-
ing that it must state specifically
that the CMO ldquohereby assignshelliprdquo
rather than a clause stating that the
CMO ldquoagrees to assignrdquo rights in the
future Otherwise the contract will
be interpreted as a promise to assign
rights in the future and the bio
pharmaceutical company will have
to go back to the CMO at some later
point in time for a separate writ-
ten assignment of rights to obtain
all patent and other IP rights in the
developments
While it sounds logical and
straightforward that the CMO
would assign all inventions created
in the development work to its cus-
tomer it is not always that simple
in practice What if the CMO devel-
ops an improvement to its manu-
facturing process in the course of
the development work Most CMOs
will want to reserve ownership of
any improvements to the CMOrsquos
existing IP and confidential infor-
mation This position is not unrea-
sonable as long as the customer
ultimately has the rights it needs in
all new inventions including those
owned by the CMO to take the drug
forward through further develop-
ment and commercialization One
must sort out IP allocation by sub-
ject matter To achieve this allo-
cation the development contract
typically will state that each party
retains ownership of all IP that it
owns as of the date of the contract
(all pre-existing intellectual prop-
erty) It will also state that the cus-
tomer owns its proprietary drug
and all improvements to the drug
or the customerrsquos confidential infor-
mation developed by either or both
parties The development contract
also may state more generally that
the customer owns all inventions
improvements and IP rights related
to the customerrsquos drug With respect
to the CMO and its IP the develop-
ment contract may state that the
CMO owns all improvements to the
CMOrsquos manufacturing process and
to its other pre-existing intellectual
property Again this reservation is
not unreasonable The customer
however should determine whether
it requires access to those improve-
ments or inventions to complete the
development and commercialization
of its drug If such access is necessary
the customer should either negotiate
a license (which may be royalty-free
or royalty-based depending on the
circumstances) to use such improve-
ments or inventions to develop and
commercialize the drug or the cus-
tomer should negotiate the terms
under which the CMO will continue
to use the improvements or inven-
tions to perform development work
andor manufacture the drug for the
customer
In the fee-for-service arrange-
ment the assignment and licensing
of IP rights in new inventions and
improvements is the key intellectual
property issue Intellectual property
considerations become much more
complicated when the biotechnol-
34 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Intellectual Property
ogy or pharmaceutical company
partners with a CMO in the devel-
opment of a new drug or product
where the parties share development
costs and profits from commercial-
ization of the drug or product
cmo as collaborator
Although not as common as the
fee-for-service arrangement a CMO
may partner with a biotechnology
or pharmaceutical company in the
development and commercialization
of a drug or product Generally both
parties are bringing pre-existing IP
to the collaboration such as a drug
from a biopharmaceutical com-
pany and proprietary drug delivery
technology from the CMO In this
scenario the CMO is taking a long-
term interest and often a part-own-
ership interest in the success of the
drug product
Instead of getting paid an hourly
rate or fixed fee for development
work on the drug product the CMO
may share the cost of development
work with the biotechnology or
pharmaceutical partner in exchange
for a share of the profits when the
drug or product is commercialized
Other costs involved in the develop-
ment and commercialization of the
drug or product that may be shared
include the cost of patent prosecu-
tion and the cost of patent litigation
if the drug product is challenged or
if it is misappropriated or infringed
To secure its interest in the profits
from commercialization of the drug
product the CMO may want to take
an ownership interest in the intel-
lectual property rights in the drug
product All of these issues must be
carefully addressed in the develop-
ment contract to avoid both finan-
cial and IP disputes
As with the fee-for-serv ice
arrangement the parties must
allocate ownership of intellectual
property rights pertaining to the
drug product to be commercialized
These rights include both pre-exist-
ing IP rights and new inventions
and improvements developed in
the course of the development con-
tract As with the fee-for-service
arrangement the parties typically
will retain rights to their respec-
tive pre-existing IP Intellectual
property rights to new inventions
and improvements however may
be shared by giving each party a
co-ownership interest in the intel-
lectual property Alternatively such
rights may be allocated by inventor-
ship with each party taking owner-
ship of developments that it invents
and with the parties jointly own-
ing jointly developed inventions
As another alternative the IP rights
may be allocated by subject matter
as in the fee-for-service arrangement
with each party owning improve-
ments and inventions related to its
pre-existing IP regardless of which
party invents those improvements
and inventions
Depending on how the pat-
ent applications are drafted the
IP rights may be ldquosliced and dicedrdquo
more finely One party for example
could own patent rights for a drug
product for one indication while the
other party owns patent rights for
the same drug product for another
indication Decisions about how
to allocate the IP rights should be
made in consultation with intel-
lectual property counsel and must
take into account the manner in
which the drug will be commercial-
ized If one party for example is
to commercialize the product in
North America and Europe and
the other party is to commercialize
the product in the rest of the world
then either the patent ownership
should be allocated by territory or
the development contract should
include exclusive cross-licenses of
each partyrsquos rights in all the intel-
lectual property necessary to com-
mercialize the product with the first
party having an exclusive license to
commercialize the product in North
America and Europe and the second
party having an exclusive license to
commercialize the product in the
rest of the world
If the parties are going to share
ownership of the IP related to the
drug product then the develop-
ment contract also should specify
which party is responsible for pros-
ecuting and maintaining patents
on the drug product Regardless of
which party is responsible for patent
prosecution and maintenance the
other party should be consulted and
involved in key decisions regard-
ing patent prosecution and main-
tenance Unless there are multiple
patents for different indications that
will be commercialized exclusively
by one party and unless each party
has exclusive rights to commercial-
ize the drug product in particular
geographic areas it generally makes
sense for one party to take the pri-
mary responsibility for patent pros-
ecution and maintenance globally
with the other party consulting and
sharing in the cost of the prosecu-
tion and maintenance in accordance
with the profit sharing The party
that is not responsible for prosecu-
tion and maintenance should have
a contractual right to approve patent
counsel and review and approve pat-
ent filings office action responses
and other communications with
patent registries before they are filed
or submitted so that the parties
agree on the proper prosecution and
maintenance strategy
Likewise the development con-
tract should allocate the rights and
responsibilities for asserting and
defending the patents pertaining to
the product in litigation Often these
rights and responsibilities are allo-
cated by territory according to com-
mercialization rights If one party
for example has the exclusive right
to commercialize the drug product
wwwbiopharminternationalcom June 2015 BioPharm International eBook 35
Outsourcing Resources Intellectual Property
in the US then that party would
have the first right and responsibil-
ity to assert the patents on the drug
product against potential infringers
and defend the patents on the drug
product against infringement claims
in the US Likewise if one party has
the exclusive right to commercial-
ize the drug product for a particular
indication then that party would
have the first right and responsibility
to assert or defend the patents per-
taining to the product with respect
to that indication Both scenarios
can present challenges First some
courts will not recognize an exclu-
sive licensee as having standing to
assert a patent That court might
only allow the owner of the patent
(and not the exclusive licensee) to
bring a lawsuit asserting the patent
It is crucial therefore that contrac-
tual provisions relating to patent liti-
gation require the party that owns
the patent to cooperate in any litiga-
tion and to join the suit as a party if
necessary
Another potential problem is that
any litigation that asserts the pat-
ent is likely to draw a counterclaim
that the patent is invalid thus put-
ting the patent itself at risk of invali-
dation While one party might be
threatened by a potential infringer
in a particular market or for a partic-
ular indication and therefore might
want to assert the patent against the
potential infringer the other party
might not want to put the patent at
risk as to other markets and other
indications For these reasons the
contractual provisions pertaining
to patent litigation must be care-
fully drafted in consultation with
intellectual property counsel who
understands standing issues and
the potential areas for dispute The
contractual provisions also should
include dispute resolution provi-
sions for situations when the parties
do not agree on whether a patent
should be asserted
Finally while the parties may
want and expect their relationship
to continue for the full term of the
patents and the development con-
tract the parties must carefully
consider the IP ramifications of an
early termination of the develop-
ment contract and the relationship
particularly if the development con-
tract is terminated for breach If the
parties are sharing in the ownership
commercialization and profits gen-
erated by the drug product devel-
oped by the collaboration then
all of that must be unwound upon
termination The development
contract should be as specific as
possible with respect to the effect of
various types of termination on the
intellectual property and contin-
ued commercialization of the drug
product In particular the parties
may agree that if the development
contract is terminated due to breach
by one party then that breaching
party must relinquish and transfer
all of its rights with respect to the
drug product to the other party to
allow the non-breaching party to
continue the commercialization of
the drug product post-termination
Whether the necessary rights are
assigned or licensed whether the
terminated party should receive a
royalty for the transfer or license of
those rights and what if any pre-
existing IP is licensed to enable the
non-breaching party to continue
commercializing the drug product
are all key factors for negotiation
The development contract should
also address other types of termi-
nation such as termination for
insolvency and termination with-
out cause (ie if one party decides
it no longer wants to commercial-
ize the drug product) In each case
the effect of termination on the IP
rights should be carefully analyzed
and a competent IP counsel should
carefully draft post-termination
assignments and licenses
conclusion
While IP lawyers are not equipped
with crystal balls they can be
extremely helpful in analyzing par-
ticular development commercializa-
tion and post-termination scenarios
all of which affect IP in a drug devel-
opment arrangement Contractual
provisions related to IP must be
carefully drafted to align with the
strategic business objectives of any
relationship and particularly one
whose purpose is the development
and commercialization of intellec-
tual property Without a clear con-
tract each collaborator is at risk of
losing important rights bp
Ad Index
AJINOMOTO ALTHEA 21
AVID BIOSERVICES INC 15
CYTOVANCE BIOLOGICS 27
EMERGENT BIOSOLUTIONS 13
EUROFINS LANCASTER LABORATORIES 7
SAFC BIOSCIENCES SIGMA ALDRICH 17
THERMO FISHER SCIENTIFIC 23
TOSOH BIOSCIENCE 11
WATERS CORP 3
Company Page
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Emergent BioSolutions has a proven track record as a world-class provider of contract manufacturing services for both bulk drug substances and sterile injectable drug products Our team has successfully launched 20 commercial products and developedmanufactured over 200 clinical candidates for our clients
Emerging Capability
State-of-the art flexible single-use facility enables turnkey upstream and downstream solutions for clinical and commercial scale biopharmaceutical drug development
Emergent Contract Manufacturing
Enhancing Life in Every Single Dose
14 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources CROCMO Viewpoints
McNally (PPD Consulting) FDA
establ ished a new Off ice of
Pharmaceutical Quality in 2014
which we anticipate will have major
impacts on the biopharmaceuti-
cal development and manufactur-
ing process This reorganization
was designed to enhance quality
drug assessment by realigning sev-
eral elements of the preapproval
and surveillance inspection pro-
cess Integrating risk-based review
GMP inspection implementation
of quality by design and the new
FDA process validation guidance
within one office is expected to
significantly change the biophar-
maceutical development and manu-
facturing process
H a r t z e l ( C a t a l e n t P h a r m a
Solutions) In todayrsquos market there
are significant manufacturing
challenges in traditional glass vial
filling applications These chal-
lenges manifest in quality issues
with the final container closure
and may be related to microbial
contamination glass particulates
and foreign materials that lead to
necessary market action causing
supply issues
Lorimer (Patheon Biologics) The
greatest regulatory change in recent
times is the acceptance and approval
of biosimilars
BioPharm What business trends
have posit ively or negatively
impacted biopharmaceutical devel-
opmentmanufacturing processes
H a r t z e l ( C a t a l e n t P h a r m a
Solutions) Today there is a stronger
emphasis in the development life-
cycle on the delivery of the mol-
ecule to the patient and not just
the molecule itself Deliverydevice
experts are being added to teams
at Phase II to improve the delivery
beyond the traditional vial
Lively (PPD) Growing interest
in biopharmaceutical drug devel-
opment necessitates partnering
between clients and contractors to
increase industry capacity breadth
of capabilities expertise and
the experience required to bring
these drugs to market The client
will receive the most benefit by
selecting a high-quality contract
research organization (CRO) lab
that is able to meet its needs and
work collaboratively with the cli-
ent to ensure timely development
Lorimer (Patheon Biologics) The
trend of small biotech partner-
ing with large pharma for clinical
manufacturing and development
has certainly facilitated the full
development of more novel mol-
ecules Also the increasing trend
toward outsourcing of GMP biolog-
ics manufacturing ensures biopro-
cessing and testing is performed
by expert manufacturers with
proven track records in quality and
biomanufacturing This helps to
reduce the risk to clinical programs
and product safety
technicalscientific tRendsBioPharm Can you describe pro-
ductivity improvements your com-
pany has experienced from new
technologies
Patel (Catalent Pharma Solutions)
Catalent Pharma Solutions has sig-
nificant ongoing investments in
enhancing our large-molecule ana-
lytical capabilities and productiv-
ity to meet and advance current
industry needs Recent invest-
ments include the updatednew
technologies new assay strategies
and updated electronic systems
and processes
Lively (PPD) Evolving character-
ization expectations for biologics
have driven improvements in ana-
lytical equipment processes and
systems Ultra performance liquid
chromatography (UPLC) systems
have improved resolution and sen-
sitivity while reducing run times
In addition 2D high-performance
liquid chromatography (HPLC)
high-resolution mass spectrom-
etry (MS) allows for analysis of
samples incompatible with tradi-
tional MS Reporter gene bioassays
apply genetically engineered cell
lines both to directly model mech-
anisms of action and to amplify
assays for improved performance
with shorter incubations and
increased signalnoise relative to
standard bioassays
Lorimer (Patheon Biologics) The
main productivity improvement
has been increasing the through-
put of products in Patheonrsquos mul-
tiproduct biopharmaceutical GMP
facilities Single-use disposable
bioreactors and similar single-use
bioprocess equipment minimize
plant downtime which is tradi-
tionally required for line clearance
and product changeover The com-
plexity of product changeovers is
reduced by single-use technology
which decreases the need for clean-
in-place steam-in-place and qual-
ity control testing Typically line
Approval of the first
biosimilar in the
United States as well
as consolidation in
the biopharma and
contract development
and manufacturing
markets are just
two indicators of the
ongoing evolution of
biopharmaceutical
development
YOUR PARTNER FROM CONCEPT TO COMMERCIAL
1
42
5
3CELL LINE DEVELOPMENT
bull Cell line development amp selection
bull Cell line characterization amp optimization
bull Subcloning
bull Suspension adaptation
PROCESS DEVELOPMENT
bull Upstream development amp optimization
bull Media optimization feeding strategyamp design including DoE approach
bull Downstream development ampoptimization
bull Process optimizationprocess scale-up
bull Viral inactivationremoval study design
bull Formulation development amp screening
bull Up to 100L controlled bioreactors
bull Process validation
ANALYTICAL METHODS DEVELOPMENT
bull Development feasibility optimizationtransfer qualification amp validation of methods
bull Identity purity potency safety ampcharacterization
cGMP BIOMANUFACTURING
bull Commercially-licensed facility
bull Flexible manufacturing capabilities
bull Stainless steel amp single-use systemsfrom 100L-1000L
bull FDA EU amp ANVISA inspected
QUALITY AND REGULATORY SERVICES
bull Regulatory strategy amp submissions
bull cGMP CMC Section 7 support
bull In-process amp release testing
bull Stability testing
bull Reference standard generation
For more information please visit us at wwwavidbiocom or
e-mail businessdevelopmentavidbiocom
THE AVID
ADVANTAGE
16 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources CROCMO Viewpoints
clearance time is reduced by sev-
eral days
R o g e r s ( S G S L i f e S c i e n c e
Services) As an analytical ser-
vice provider SGS is constantly
in search of means to improve
its laboratory efficiencies partic-
ularly those that enhance turn-
around time without adversely
effecting quality With this in
mind substitution of HPLC for
UPLC rapid microbiolog ica l
screening methods and invest-
ment in automated approaches to
complex analytical problems such
as protein sequencing are now
being used within the SGS labora-
tory network
Chambers (SGS) From a CRO
point of view the main produc-
tivity improvements in analytics
have been from higher through-
put systems and data analysis The
move to these faster systems with
semiautomated data processing has
allowed us to improve turnaround
times which are passed on to cli-
ents in terms who win on faster
to market times and faster gono
decisions
BioPharm What additional tech-
nology improvements are needed
to improve the efficiency of bio-
processing
Lorimer (Patheon Biologics)
Process analytical technology
(PAT) for continuous monitoring of
bioprocesses is helping reduce the
variability on biopharmaceutical
manufacturing
Also biopharmaceutical devel-
opment and process validation
have been accelerated by the use
of mini-bioreactor systems which
enable a large amount of process
development data to be gener-
ated within a very short timeline
These multi-bioreactor systems
can reduce process develop -
ment timelines by months when
applied to early-stage or late-stage
bioprocesses
Rogers (SGS Life Science Services)
The development of many tech-
nologies follows a common path
from academia to commercial
application and nowhere is this
more evident than in the field of
bioprocessing In almost all exam-
ples the key to this progression
lies in the ability to simplify opera-
tional aspects of the technology
and improve throughput This has
in the past been clearly demon-
strated in for example the field of
mass spectrometry and is currently
evolving with techniques involved
in biophysical characterization
BioPharm What is the greatest
technical challenge facing biophar-
maceutical companies today
Hartzel (Catalent Pharma Solutions)
Cost to manufacture will continue
to be a major challenge for the
industry especially with the rise
of biosimilars and market pressures
to drive down the cost of medi-
cines However the products that
are coming to market are more
targeted which leads to smaller
batch sizes This is counter to the
manufacturing adage of being able
to leverage economies of scale to
drive out costs hence the need to
focus on alternatives technologies
and innovation to reduce the man-
ufacturing costs versus economies
of scale
Lively (PPD) Application of ana-
lytical techniques to better char-
acterize innovator and biosimilar
or follow-on products by physico-
chemical and functional methods
are required and will continue to
be driven by the complexity of
biologics development For exam-
ple changes in formulations may
cause different leachable profiles
requiring increasing emphasis on
extractablesleachables techniques
(ie high-resolution MS) to sup-
port characterization of formu-
lation effects identification of
degradation and impurities and
determination of their potential
impact through application of
potency bioassays
Lorimer (Patheon Biologics) Most
of the technical challenges for
manufacturing have been over-
come and the technologies for
development and manufactur-
ing have been widely adopted
Perhaps the greatest challenge is in
clinical development of novel and
originator molecules where in-vitro
model systems are still not a great
predictor of clinical performance
Rogers (SGS Life Science Services)
To highlight one technical chal-
lenge above all others in todayrsquos
biopharmaceutical industry is
very difficult The complexity of
biotherapeutics often results in
considerable technical difficul-
ties as for example in the area
of impurities recognition of host-
cell proteins (HCPs) and identi-
fication of structural variants at
trace levels are certainly high on
the list of technical concerns The
necessary inclusion of relatively
elaborate analytical techniques
such as sedimentation velocity
analytical ultracentrifugation (SVndash
AUC) within a traditional qual-
ity control release environment is
also not without problems
BioPharm What are the pros-
pects for continuous manufac-
turing to be firmly established in
bioprocessing What are the road-
blocks to implementation
Lorimer (Patheon Biologics)
Continuous product ion f rom
mammalian cell cultures has been
operated in perfusion bioreactors
for many years The main road-
block for continuous processing is
downstream processing of proteins
which currently demands discrete
and distinct unit operations for
removal of impurities removal
of contaminants concentration
of the products and formulation
each in separate controlled steps
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Celebrate Request your complimentary sample at sigma-aldrichcomCHOperformance
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EX-CELLreg ADVANCEDtrade CHO FED-BATCH SYSTEM
CELL CULTUREPERFORMANCE
copy2015 Sigma-Aldrich Co LLC All rights reserved Sigma-Aldrich SAFC and EX-CELL are trademarks of Sigma-Aldrich Co LLC registered in the US and other countries
NEXT GENERATION MEDIA PLATFORM
18 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources CROCMO Viewpoints
and which are not currently ame-
nable to continuous processing
the Rise of biosimilaRs
BioPharm What impact w i l l
biosimilar drugs have on bio-
pharma businesses bioprocessing
approaches and the contract ser-
vices market
Rogers (SGS Life Science Services)
The European biopharma land-
scape has already experienced
impact of the biosimilar drug mar-
ket leading to rapid expansion of
traditional small molecule generic
manufactures into the bio arena
Recent FDA approval of the Sandoz
biosimilar Zarixo may be the seed
for similar changes in the US pro-
viding a potential new line of busi-
ness for established pharmaceutical
companies Contract service pro-
viders such as SGS who already
have considerable experience with
biosimilars are able to offer exper-
tise to businesses new to this mar-
ket and will no doubt benefit from
such expansion in the US
Lively (PPD) Increased invest-
ment in biosimilars is driving
interest in improving and stream-
lining the development processes
as well as the sensitivity and scope
of characterization assays used to
compare biosimilars and innova-
tor drugs The expanding capac-
ity needs result in partnerships
between clients and their contrac-
tors with the systems experience
and expertise to achieve the qual-
ity and speed required while meet-
ing all regulatory expectations for
product approval
Chambers (SGS) With nearly
20 years exper ience perform-
ing biosimilar analysis the big-
gest impact had been the massive
increase in the characterization
needed for biosimilars compared
to innovators (although higher
standards are now needed for new
innovators too) This has resulted
CMOs Add Capabilities
Consolidation in the contract development and manufacturing market has resulted in new capabilities and facility expansions
In May 2015 CMC Biologics announced that it is expanding its Copenhagen Denmark facility to increase its manufacturing capacity through the installation of six 2000-L bioreactors The bioreactors can be run singly or in groups simultaneously or sequentially and are part of the companyrsquos signature Bioreactor 6Pack single-use program The Copenhagen installation will begin initial GMP production in November 2015 and will feature three bioreactors to start Three bioreactors will be added at a later date to complete the configuration Meanwhile the Bioreactor 6Pack at CMCrsquos Seattle facility will complete its first GMP run in mid-2015 and will be ready for commercial launch by the end of the year Through its recent expansions CMC plans to expand its global capacity by more than 30000 liters in the United States and Europe
Also in May 2015 SAFC announced an expansion to its St Louis MO facility to support the commercial-scale production of antibody-drug conjugates The facility which is expected to be online and operational in the third quarter of 2015 was designed to meet SafeBridge category 4 compound handling requirements for highly active or cytotoxic compounds The expansion of an existing Carlsbad CA location will enable SAFC to offer fillfinish capabilities of viral products to its clients in the gene therapy viral vaccine and immunotherapy sectors
Rentschler announced in March 2015 that a 2000-L bioreactor that the company commissioned and built in six months is up and running The bioreactor will be integrated into existing manufacturing suites containing two 1000-L single-use bioreactors according to a company statement The companyrsquos twin bioreactor systemmdashdesigned for running two main bioreactors in parallel with one shared downstream processing unitmdashwill be functional by 2017 The twin system is estimated to double the companyrsquos production capacities for cell culture-derived proteins
In December 2014 FUJIFILM Diosynth Biotechnologies USA (FDBU) acquired Kalon Biotherapeutics adding viral and cell-culture vaccine expertise and capabilities In other activity FDBU started construction of a three-story 62000-ft2 facility in Research Triangle Park NC in January 2015 to house the companyrsquos process and analytical research and development process sciences and stability groups The expected completion date is Q4 2015
In September 2014 PCI a provider of packaging services acquired Biotec Services International a provider of clinical-trial services and temperature-controlled pharmaceutical services headquartered in Bridgend Wales UK The addition expanded PCIrsquos presence in the European Union and added packaging storage and distribution capacity and consultative services for clinical-trial supplies In January 2015 Biotec announced the validation of its clinical supply facility expansion which added almost 50 to the companyrsquos clinical trial materials handling capacity
wwwbiopharminternationalcom June 2015 BioPharm International eBook 19
Outsourcing Resources CROCMO Viewpoints
in challenges in data handling
interpretation and data presenta-
tion Biosimilars have also caused
the re-emergence of orthogonal
techniques like size exclusion
chromatographyndashmulti-angle laser
light scattering (SEC-MALL) and
SV-AUC for aggregation and cir-
cular dichroism (CD) and fourier
transform infrared spectroscopy
(FTIR) for higher-order structure
as critical analyses to understand
and compare and detect subtle
higher-order structural differences
between innovator and biosimilar
samples
Hartzel (Catalent Pharma Solutions)
The rise of biosimilar drugs will
dawn the next generation of bio-
logic manufacturing and force
the industry to look at new ways
of manufacturing to drive down
costs Therefore the industry will
seek new manufacturing partners
with strong technical expertise to
drive out costs through innovation
and operational excellence
Lorimer (Patheon Biologics)
Genera l ly b ios imi la r d r ugs
will encourage competitiveness
within the biopharma sector
Biomanufacturers expect increased
pressure on cost of goods and
pricing Biopharmaceutical con-
tract service providers with a flex-
ible multi-product operation and
proven track record in the indus-
try are well placed to ensure care-
ful control of manufacturing costs
and product quality Processing
approaches wonrsquot change in terms
of technology but there will be a
greater emphasis on operational
excellence to reduce costly inef-
ficiencies and improve yields from
bioprocesses As more biosimilars
come to the forefront and as the
industry trend for outsourcing
continues increasing operational
flexibility while maintaining the
highest quality standards will be
the keys to success
business challenges
BioPharm What is the greatest
business challenge facing biophar-
maceutical companies today
Lively (PPD) As with all phar-
maceutical drug development the
greatest challenge is getting new
life-changing and potentially life-
saving drug candidates to mar-
ket Biopharmaceuticals face more
challenges than traditional small-
molecule drug products because
the science of characterization
of such biologic drugs is rapidly
evolving along with the regulatory
landscape Those companies that
are best able to successfully char-
acterize and differentiate innovator
and biosimilar products for safety
and efficacy will have the greatest
opportunity to benefit
the knowledge gap
BioPharm In what areas do you
see knowledge or expertise gaps in
current biopharmaceutical compa-
nies Why do these gaps exist
Lorimer (Patheon Biologics) There
is a gap in translating good sci-
ence to industrial applications of
technologies that provide for reli-
able efficient cost effective man-
ufacturing at commercial scale
Maintaining a focus during early
development on eventual commer-
cial manufacturing requirements
while balancing limited develop-
ment resources requires a broad
base of coordinated organiza-
tional skillsets and a disciplined
approach
Hartzel (Catalent Pharma Solutions)
Devicedelivery expertise is an
area that has a potential gap For
biologics the historic default con-
tainer closure has been a tradi-
tional glass vial As the healthcare
industry seeks ways to improve
patient care and reduce costs the
delivery to the patient needs to
adopt new technologies and this
is why we have seen a rise of pre-
filled syringes and autoinjectors
These technologies will continue
to evolve and so will the demand
for devicedelivery experts
Lively (PPD) One of the chal-
lenges we see is the various levels
of knowledge and expertise that
exist between biopharmaceutical
RampD and the testing and regula-
tory industries That differential is
impacting those industriesrsquo ability
to fully consider and effectively
implement expectations and guid-
ance for physicochemical and
functional characterization expec-
tations of biologic drugs
Lorimer (Patheon Biologics) The
commercial biopharmaceutical
industry demands global sourc-
ing of materials services supply
and ultimately distribution to each
patient This requires a robust inte-
grated supply chain to deliver high
value products to patients on-time
and at the right quality Doing this
reliably and efficiently with long
production lead times and uncer-
tain market sales forecasts is an
industry wide challenge
Speed-to-market remains a key
challenge to the development of
biopharmaceuticals Speedy first-
time-in-man clinical trials can be
a major hurdle for small biotech
companies and large pharma alike
Rogers (SGS Life Science Services)
I believe there continues to be a
significant problem in the level of
fundamental scientific expertise
within many biopharmaceutical
businesses In part this may be
attributed to the lsquokitrsquo and lsquoblack
boxrsquo approach of many modern
day technologies Due to the
complexity of many biopharma-
ceuticals their development and
success as therapeutics requires a
comprehensive range of scientific
disciplines and expertise which
can be difficult to fully realize
internally particularly for small
and mid-size companies bp
20 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources FillFinish
FillFinish Trends
Automation and disposables continue to reduce human error
Eric s LangEr
Fillfinish operations continue to be domi-
nated by trends in automation and the adop-
tion of single-use equipment But these are
by no means the only factors affecting these
high-value operations according to BioPlan
Associatesrsquo latest biomanufacturing study (1) Fill
finish processes are among the most outsourced
activities in biomanufacturing today and a service
providerrsquos capacity for vialing pre-filled devices
and lyophilization is crucial In a recently pub-
lished whitepaper (2) BioPlan Associates determined
that there is sufficient global in-house capacity
for biologics but the need continues to grow for
greater access to specialized outsourcing competence
Whatrsquos trending is significant improvements in auto-
mation and operations
AutomAtion And single use defining Cmo strAtegy
The top trends today involve automation and devel-
opment of better disposable technologies As part of
the BioPlan study biomanufacturers were asked to
select the trends they believe to be the most impor-
tant in fill and finish today The top three trends
are single-use equipment automation in full isolator
units and facilities becoming multi-product ori-
ented (see Figure 1)
Other important trends were noted including
bull Increased serialization and product labeling for
anti-counterfeiting
Eric s LangEr is president and managing partner at BioPlan Associates Inc elangerbioplanassociatescom tel 3019215979 wwwbioplanassociatescom
Ma
ria T
ou
tou
da
ki
Ge
tty Im
ag
es
WITH ALTHEA YOU HAVE THE POWER TO MAKE
You have the power to make a difference To make new therapeutics that improve quality of life and inspire a healthier world To do this you need a manufacturing partner who embraces your every challenge as its own who shares your unwavering tenacity and dedication from clinical studies through commercial success Thats The Power To Make
PLAY VIDEO
CONTRACT
MANUFACTURING
Q Development
Drug Substance
lj Drug Product
(D Al TH EA I THE POWER TO MAK A MEMBER OF THE AJINOMOTO GROUP
22 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources FillFinish
bull More f i l l f i n i sh fac i l i t ie s
o p e r a t i n g i n d e v e lo p i n g
regions
bull C o m p u t e r - b a s e d v i s u a l
i n s p e c t i o n a r t i f i c i a l
intelligence
bull Use of complex administration
systems
single-use equipment in fillfinish operAtionsT h e a d o p t i o n o f d i s p o s -
ab le e qu ipme nt i n f i l l f i n -
i s h o p e r a t i o n s e l i m i n a t e s
cross-contamination risks and
adds flexibility in process scale
While regulatory rest r ic t ions
may be increased by the adop-
tion of such equipment single-
use appl icat ions a lso enable
contract manufactur ing orga-
nizat ions (CMOs) to increase
fac i l i t y ut i l i z at ion t h rough
multi-product strategies which
can decrease their cost of goods
Experts in the f ield discussed
these trends
Peter Pekos CEO and president
of Dalton Pharma Services a fill
finish CMO says ldquoFor a CMO
disposables can be attractive hellip
For example a disposable isola-
tor can be packed and stored pre-
sterilized for use when needed
a f ixed isolator requires f ixed
space at all times Disposables
also allow a CMO to handle proj-
ects using specific systems for
non-typical project needs such
as disposable isolators without
going to the expense of buying
permanent isolator infrastruc-
ture Disposables do not obviate
the need for technical expertise
hellip so the need for a CMO isnrsquot
really reduced In fact CMOs
with expertise in single-use sys-
tems hellip can make them more
attractiverdquo
Mar t ina Fe r neman cor po -
rate development manager at
Recipharm bel ieves that the
adoption of single-usedispos-
able equipment is now impacting
f i l l and f inish ldquoIn mult ipur-
pose sites the cleaning proce-
dures will become more crucial
to avoid cross contamination
Single-use equipment [also] has
the advantage of shorter lead
t imes and lower procurement
costs Since no cleaning proce-
dure has to be established and
aseptic connections are easier to
be built-up the use of single-
use equipment is not only faster
but also safer than conventional
equipmentrdquo
AutomAtion in full isolAtor unitsW hi le s ing le -use equ ipment
adoption may be one of the hot-
test f i l lf inish trend automa-
tion technologies may actually
be experiencing more rapid rates
of implementation among bio-
manufacturers Indeed sepa-
rate results from BioPlanrsquos 12th
annual study suggest that the
industry wi l l be as l ikely to
implement automation technolo-
gies as they will use single-use
f i l l-f inish devices dur ing the
next 24 months
The removal of human factors
is a key to improving product
quality Isolators and automa-
tion are therefore key drivers
as facilities seek to improve their
i n f r a s t r u c t u r e I n nov a t io n
around equipment and facilities
able to handle multiple products
is going to continue Flexibility
is key as the reduced flexibility
of isolators (and higher cost) in
relation to traditional restricted
access barrier (RAB) systems may
deter some CMOs from adopt-
ing isolators The jury is st i l l
out because the decision fac-
tors between RAB and isolators
are complex and this tends to be
a high-cost decision often left
to the larger f illf inish CMOs
ldquoCMOs will adopt isolator tech-
nologies in their processes to
meet industry needs and reduce
r isk In some cases this wil l
also include disposable isolators
which can offer the benefits of
fixed isolators but add a degree
of f lexibil ity to the manufac-
turerrdquo Pekos notes
According to Ferneman adopt-
ing automat ion in ful l isola-
tor units to reduce the need for
operators is a trend seen in the
CMO market ldquoUse of barr ier
technology (RABS or isolators)
should ensure optimal protec-
t ion of ster i le areas Isolators
bear a better potential to prevent
biocontamination Since the iso-
lator is a closed system a lower
air quality than in RABS systems
can be usedrdquo For freeze-dried
products the RABS system is a
better choice because loading
has to be performed in class AB
surrounding
Fig
ur
e 1
is
co
ur
te
sy
oF
th
e a
ut
ho
r
Figure 1 selected bioprocessing fllfnish trends in 2015
Single-usedisposable equipment
adoption55
36
35Facilities becoming more multi-
product-use oriented
Automation in full isolator units
reduce need for operators
More compounds More accuratelyFaster than ever
Quantitation transformed
Todayrsquos range of possible therapeutic agents from small molecules to peptides to antibodies and
ADCrsquos makes quantitative bioanalysis a challenge Quantify potential therapeutics faster and more
accurately with our new portfolio of LC-MS instruments sample prep solutions and software HRAM
solutions using Thermo Scienti ctrade Orbitraptrade MS enables selectivity for complex molecules while
triple quadrupole MS delivers SRM sensitivity and speed to detect targeted compounds more quickly
Meet todayrsquos challenges with us and together wersquoll transform quantitative bioanalysis
Thermo Scienti ctrade Orbitrap Fusiontrade MSUnprecedented depth of analysis and
throughput for biological discovery
Thermo Scienti ctrade TSQ Quantivatrade MSLeading SRM sensitivity and speed
in a triple quadrupole MSMS
Thermo Scienti ctrade Q Exactivetrade MSScreen and quantify known and unknown targets with HRAM Orbitrap technology
copy 2
014
Ther
mo
Fish
er S
cien
tifi c
Inc
All
right
s re
serv
ed A
ll tr
adem
arks
are
th
e pr
oper
ty o
f The
rmo
Fish
er S
cien
tifi c
and
its
subs
idia
ries
bull Discover more at thermoscienti ccomquan-transformed
24 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources FillFinish
Cmos stAying
AheAd of the Curve
In the whitepaper on in-house
fillfinish operations for recom-
binant therapeutics (2) BioPlan
found relatively low average in-
house capacity utilization rates
for lyophilization (55) pre-filled
devices (58) and vialing (70)
This finding suggests that for fill
finish CMOs the real value isnrsquot
necessarily in providing additional
flexible capacity but rather in posi-
tioning themselves as providing
highly sophisticated and novel
technologies and expertise in fill
finish services Indeed CMOs are
expected to have state-of-the-art
equipment As Pekos notes ldquoCMOs
who implement flexible and inno-
vative technologies to make man-
ufacturing or development more
efficient faster compliant or more
economical all serve to make them
more attractive to customersrdquo
For CMOs that make use of
innovative fillfinish technologies
there appears to be a good deal
of demand Results from BioPlanrsquos
annual studies indicate that fill
finish services are among the most
widely and heavily outsourced
biomanufacturing activities today
and are also among the activities
that biomanufacturers are most
likely to outsource at significantly
higher levels in the future
Biomanufacturers and CMOs are
actively looking to their fillfin-
ish equipment suppliers and are
beginning to demand additional
new technologies innovation and
product development In 2014 for
example when the top areas that
biomanufacturers wanted their
suppliers to focus their develop-
ment efforts on were measured
fillfinish services topped the list
cited by 23 of biomanufacturers
Not only did that figure represent
a substantial increase from years
past (13 in 2011) but it was also
ahead of other services including
upstream and downstream process
development services
Fillfinish will continue
to be an area of
growth for CMOs
There are a number of areas in
which suppliers can add value to
fillfinish innovation according
to industry experts Jim Agalloco
president of Agalloco amp Associates
in Belle Mead NJ says ldquovendors of
equipment and components to fill
finish must continue their roles as
technology leaders Innovation in
this market has always been sup-
plier driven because the operating
firms do not have the necessary
expertise Collaboration between
equipment manufacturers and
component suppliers is essential
for implementation of new con-
tainer systems single-use dispos-
ables and other advancesrdquo
Ronald Malone senior principal
scientist at Novartis Vaccines says
ldquoBlow-fill-seal containerclosure
systems are beneficial for small-
volume parenterals However over-
all cost may still be higher per unit
than traditional vialstopper fill-
ing Vaccines and biologicals can
benefit from single-dose disposable
systems that drive down the cost
of the containerclosure system
This will assist the global supply to
developing world countries where
these products are truly neededrdquo
W B W i e d e r s e i m o f
PharmaBioSource in Wayne PA
states ldquoWe see smaller higher
technical facilities inclusive of dis-
posables (isolators and not RABS)
and advanced aseptic work cell
technology as the wave of the
futurerdquo
WhAt does the future hold
BioPlanrsquos survey data and indus-
try interviews indicate that fill
f inish will continue to be an
area of growth for CMOs that
maintain the required technical
quality and regulatory expertise
in this segment Experts have
taken note of CMOsrsquo introduc-
tion of smaller filling machines
for syringes or vials a trend that
may be in response to the indus-
try-wide move towards smaller-
scale manufactur ing projects
This shift may be accelerated by
the advent of biosimilars which
should provide an increasing
number of projects for fillfin-
ish CMOs although likely on a
smaller scale This increase in
projects could lead to potential
mergers and acquisitions with
some experts noting that fillfin-
ish CMOs are already engaging
in this trend toward larger capac-
ity and global operations
Indeed within the past 18
months a number of acquisi-
tions have occurred including
Pfizerrsquos acquisitions of Hospira
a nd In noPha r ma Pat heonrsquos
mergers in the contract services
space IDT Biolog ika invest-
ments Vet ter invest ing USD
$100 million to upgrade fill-fin-
ish facilities in the United States
a nd Ger ma ny a nd Ba xte r rsquos
investment in German facilities
and numerous others (3)
For CMOs to stay ahead of the
curve they will likely need to
continue to adopt disposables
technologies and advance their
automation in full isolators Ray
Cardin of PharMax Consulting
says ldquoIncreased use of dispos-
able pre-sterilized f illing tech-
nologies [are future trends] The
combination of these pre-ster-
ilized units with the coming of
age of ster i le connectors that
provide high sterility assurance
wwwbiopharminternationalcom June 2015 BioPharm International eBook 25
Outsourcing Resources FillFinish
Biologics Development and Manufacturing Trends Part II
Eric Langer Managing Partner BioPlan Associates talks about the results from BioPlan AssociatesOtilde 12th Annual Report and Survey of Biopharmaceutical Manufacturing Capacity and Production Langer discusses what respondents indicated as the number one trend in biologics manufacturing improving efficiencies and the biosimilars market
in less clean environments is
changing the way aseptic pro-
cesses are designedrdquo
Gordon Leichter PhD Eastern
r e g io n a l s a l e s m a n a ge r a t
Belimed in Charleston SC states
ldquoAutomat ion in fu l l i solators
wil l el iminate operator inter-
vention and laser-sealed vials
Automation will become more
integral to building automation
and enterprise systemsrdquo
Douglas Stockdale vice-presi-
dent CMCTechnical Operations
Hi l lhurst Biopharmaceut ica ls
Los Angeles CA says ldquoIndustry
will continue pushing the PAT
[process analytical technology]
envelope to f ind a lternat ive
methods to improve in-process
methodologies and processesrdquo
Fe r ne ma n add s ldquoCu r r e nt
trends in fillfinish innovation
will probably focus the market
authorization holders on a few
strategic products resulting in
outsourcing of a bigger share of
products overallrdquo
ConClusion
Until recently the handling of
ster i le l iquids in the pharma-
ceutical industry has relied on
relatively consistent techniques
during the past 100 years with
relatively slow changes in tech-
nologies and regulations result-
ing in incremental improvements
in safety efficiency and prod-
uct quality During the past 20
years however costly biologics
have taken a prominent indus-
try role The value of these drugs
can often be measured in tens of
thousands per dose This has put
greater pressure on these down-
stream fillfinish operations to
ensure quality safety and cost-
efficiency are not compromised
at this crucial late stage in manu-
facturing Trends in fillfinish for
recombinant therapeutics include
the increased use of isolator
technologies more high-speed
operations and other innovative
approaches including single-use
processing As a result of industry
research BioPlan expects more
outsourcing of fillfinish opera-
tions in coming years
referenCes 1 BioPlan Associates 12th Annual
Report and Survey of Biopharmaceutical
Manufacturing Capacity and Production
(Rockville MD April 2015) www
bioplanassociatescom
2 BioPlan Associates Trends in Aseptic
Bioprocessing Capacity for the Fill and
Finish of Recombinant Biologics An
Analysis of US and European In-house
Capacity and Capacity Utilization (BioPlan
Associates December 2014)
3 Information derived from BioPlan
Associatesrsquo BioFacilities Newsletters Bp
26 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Cell Therapy
Taking a ldquoDevelopment-by-Designrdquo
Approach to Cell Therapies
Whether outsourcing or developing cell therapies in-house success demands a focus on quality cost of goods
and sustainability from the start
Agnes shAnley
Cell therapies both autologous and allo-
geneic have come a long way in just a
few years Countries around the world
most recently Japan have passed regula-
tions designed to speed development of
these treatments which are now a big and growing
global business
In 2013 according to the Pharmaceutical Research
and Manufacturers Association 69 cell therapies six
of them autologous or patient-specific treatments
were in clinical trials or being reviewed in the United
States alone 15 of them in Phase III trials (1)
The road is littered with failures however often
in clinical stages This has been traced to problems
with manufacturing and failure to understand pro-
cess requirements earlier in the development process
Table I outlines manufacturing issues
As a growing number of Big Pharma companies
explore the potential for immune regenerative and
other cell therapies equipment manufacturers includ-
Agnes shAnley is senior editor of BioPharm International
SC
IEP
RO
GE
tt
y Im
aG
ES
wwwcytovancecomResponsive Reliable Resourceful
Your partner in biopharmaceutical contract manufacturing of therapeutic proteins and antibodies from mammalian cell culture and microbial fermentation
28 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Cell Therapy
ing Pall Corp EMD Millipore
and GE Biosystems have set up
centers of excellence to focus on
developing equipment for this
new market Engineering compa-
nies such as Invetech and Instrom
are developing equipment specific
to this niche
More CDMos are entering
Cell therapy Market niChe
Demand for spec ia l i zed ce l l
t he rapy ma nu fac t u r ing a nd
development serv ices is a lso
growing and has attracted Lonza
Bioservices Cognate BioServices
WuXi AppTech and Roslin Cells
among others
NeoStem is fol low ing t wo
paths pursuing its own cel l
therapy pipel ine and explor-
ing contract services through
its contract development and
manufac t u r ing organ i zat ion
(CDMO) subsidiary Progenitor
Cell Therapy (PCT) With bases
in Irvine and Mountain View CA
and Allendale NJ PCT is cur-
rently working with Intrexon and
Fibrocell on connective tissue
treatments and with the United
K ingdomrsquos Adapt immune on
oncology treatments
A new CEO David Mazzo with
a doctorate in analytical chemis-
try and experience running both
private and public international
biopharma companies assumed
NeoStemrsquos leadership in January
He sees no conflict between grow-
ing a pipeline and a contract man-
ufacturing business
ldquoWe are not trying to be two
di f ferent companies and we
do not see the two competing
with each otherrdquo says Mazzo
in an interview with BioPharm
Inte rnat ionalrsquos s i ster publ ica-
tion Pharmaceutical Technology
during his second week on the
job ldquoInstead there is a symbi-
otic relationship between themrdquo
As he sees it the companyrsquos
track record in developing prod-
ucts should attract more spon-
sors ldquoProblems in development
usually occur at the interfaces
Our unique experience of having
lsquodone that beforersquo should be help-
fulrdquo he says
In January PCT entered a
partnership with Invetech an
equipment design firm based in
Australia with offices in San Diego
to develop automated equipment
for cell therapy manufacturing Fig
ur
e 1
is
co
ur
te
sy
oF
in
ve
te
ch
Figure 1 Part of an automated solution being developed by neostem and invetech Automating processes is key to reducing costs
wwwbiopharminternationalcom June 2015 BioPharm International eBook 29
Outsourcing Resources Cell Therapy
The two companies have already
been working together for a year
now honing the design and speci-
fications for the instrumentation
says NeoStemrsquos Chief Scientific
Officer (CSO) Robert Preti The
equipment will tackle cell therapyrsquos
most challenging side autologous
treatments where the manufactur-
ing lot is the patient dose adminis-
tered at the patientrsquos bedside
As Preti notes there really isnrsquot
much available today in the way
of automated equipment for cell
therapy especially on the autolo-
gous side The equipment will sep-
arate and wash cells among other
functions
labor-intensive
proCesses aDD Cost
So far Preti says the company
is evaluating the evolving equip-
ment in NeoStemrsquos own manu-
facturing efforts ldquoOne of the
largest commercial bottlenecks
is the heavy labor required by
processes especially for patient-
specific uses where one batch is
one patientrdquo
The cost of goods i s ver y
high Preti says ldquoSuccess long-
term will require a whole new
approach to development The
goal is to provide high qual-
ity and sustainabilityrdquo he says
Removing manual operat ions
and human error from the pro-
cess will be crucial
Invetech has been work ing
on cell therapy process scale-up
automation for more than 10
years and has successfully com-
pleted projects in North America
Europe and Asia for companies
that include Argos Therapeutics
Aa s t rom CCR M Hu mac y te
Innovacell Janssen kSep Systems
MolMed Organovo and ViaCyte
accord ing to R ichard Grant
global VP of the companyrsquos bio-
pharma operations who has been
with the company for more than
14 years
ldquoThe goal is to develop a mix
of equipment and manufactur-
ing st rateg ies that maximize
quality scalability and sustain-
ability with an eye toward cost-
effect iveness and commercial
viabilityrdquo Grant says Invetechrsquos
solutions typically tailor a mix of
OEM and customized equipment
to the clientrsquos processes The com-
pany recently commercialized
equipment used to manufacture
Janssenrsquos macular degeneration
treatment
Costs of current manufactur-
ing processes for both autologous
and allogeneic therapies are dif-
ficult to peg Last year experts
at University College London
attempted to pinpoint the cost and
overall economics of allogeneic
cell therapy using single-use tech-
nologies (2)
What is clear for both alloge-
neic and autologous systems is
that cell therapy development
Table I Manufacturing scenarios for cell therapies
Attributes Off-the-shelf therapiesPatient-specifc
therapies
Source material Always allogeneic Autologous or matched allogeneic
Batch size Many patients One patient
Business model Similar to pharmabiopharma New
Scaling Scale up (Increased lot size) Scale out (Increased number of lots)
Comparability vs scale Higher concern Lower concern
Manufacturing design drivers
Mission critical success + +++
Optimized process yield +++ +
Dimensional efficiency ++ +-
Integration +- ++
Automation + ++
source invetech
Table II Measuring comparability risk
Risk level Example Timing
None Automated sterility test Before biologics license application
Low Change in process unit op and cell journey is the same
Before 50 accrual in pivotal trials
Medium Change in process unit op and cell journey is similar
Before initiation of pivotal clinical trials
High Change in process unit op and the cell journey is matched
Some Phase II clinical data
source invetech
30 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Cell Therapy
and manufacturing costs are cur-
rently prohibitive ldquoThe starting
points can vary dramaticallyrdquo
Grant says He recalls one cus-
tomer whose autologous process
ran to $80000 per patient in early
stage clinical trials Automation
he says could reduce costs by
40ndash90 depending on the ther-
apy involved
DevelopMent by Design
But before one can automate any
process one must understand it
NeoStem and PCT like a growing
number of companies are taking
the principle of quality by design
(QbD) to heart in their work
Mazzo arguably one of few
life-science company CEOs to
even articulate the QbD concept
explains that the company has
gone a step further and broadened
the International Conference on
Harmonization guidances adopted
by FDA into ldquodevelopment by
designrdquo (DbD)
ldquoWe say first consider the end-
point then take process as is and
understand its unit operations
Develop inputs and outputs and
discrete steps and define the pro-
cess in a way that promotes under-
standingrdquo he says
ldquoThis is challenging given prod-
uct complexity but there is a need
to understand the mechanism of
action very well so you put each
process in this overall envelope
of DbD and consider the cost of
goods scalability and sustainabil-
ityrdquo Preti adds ldquoYou consider the
process from the end only this
time each batch is an individual
patientrdquo
The critical part is defining and
measuring process needs he says
ldquoProduct definition is very impor-
tant particularly the quality target
product profilerdquo explains Brian
Hampson VP of manufacturing
development and engineering at
PCT in an Oct 22 2014 webcast
for the International Society for
Cell Therapy (3)
have the enD in MinD
Such t h ings a s for mulat ion
issues dosage potency impu-
rities residuals and microbial
assurance need to be thought out
clearly from the start Hampson
says as well as indications for
use geographic market projec-
tions cost-of-goods targets and
IP issues
The profile needs to be a liv-
ing document that changes as the
product takes shape Hampson
says There is a tendency for peo-
ple in the industry to ignore the
product profile until they have
all the answers says Hampson
ldquoInstead it needs to be developed
really early even when you donrsquot
have all or even many of the
answers hellip you can leave them
as blanks and continue to review
add to and updaterdquo
The result is not only a tool for
better understanding the prod-
uct process and mechanism of
action but a communication tool
for stakeholders
When to start DbD for cell ther-
apies ldquoThe temptation is to begin
later in the game when you need
reasonable COGS and you need
to be sure of sustainable manu-
facturingrdquo says Hampson ldquoThe
key thing is comparability and
anticipating its implications early
in the clinical program It needs
to be flexible at the early stagesrdquo
Hampson says ldquoBut as you near
Phase III you need to lock in your
equipment evolves
In the bioreactor area there is great interest in moving from 2-D to 3-D processing to enable the processing of the cell volumes required something that companies such as Israelrsquos Pluristem have been doing for some time
Equipment designer Instrom is partnering with companies including BRTI Life Sciences to focus on 3-D cell matrix technologies developed by Dr John Brekke EMD Millipore has been partnering with PharmaCell BV to use its Mobius bioreactor platform to expand and harvest HepRG cells GE Sciences is also evaluating Wave and other systems and set up a center of excellence in Wales recently
In other equipment areas Pall Corp has been partnering with CMDG LLC on cord blood processing technology Following are some of the equipment manufacturers and systems applied in cell therapy development and manufacturing
bull Beckman Coulter bull Corning Cell Stacks and Cell Cube
bull EMD Millipore bull GE Biosciences
bull Thermo Scientificrsquos Nunc Cell Factories bull Pall Corp
wwwbiopharminternationalcom June 2015 BioPharm International eBook 31
Outsourcing Resources Cell Therapy
processrdquo Table II summarizes issues
and points where changes will be
easier
Thus Hampson suggests that
companies whether work ing
with CDMOs or in house think
through such issues as cost of
goods scale and sustainabil-
ity much earlier than they typi-
cally do today ldquoYou donrsquot need to
spend money on these issues but
you do need to think about themrdquo
Hampson says ldquoQuality must be
a key issue even at Phase II trials
and early action pays off laterrdquo
In addition he suggests that
companies th ink about the
e nt i r e p r o c e s s c o mp r e he n -
sively ldquoThere is often a tendency
to focus on the core processing
stepsrdquo Hampson says ldquoBut you
really need to think about every-
thing from collection of mate-
rial through to administration
of product to the patient and all
steps in betweenrdquo
For ce l l therapies d ispos -
able equipment and closed pro-
cesses can be an effective way to
reduce costs and improve quality
and compliance ldquoThey can allow
you to isolate different processes
so that they can share a Class
100000 cleanroom environmentrdquo
Hampson says
ldquoInvesting in automated informa-
tion management can also pay offrdquo
he says ldquowhere an electronic batch
record system that is fully validated
can enable release-by-exception
reducing error documentation
time and overall quality assurance
costsrdquo Hampson says
In addition he notes it is
important to look at costs compre-
hensively an increase in one cost
can for example reduce overhead
improve process sustainability and
cost of goods Table III outlines the
issues
regulations evolve
Cell therapy is still a new area
for regulators and as Preti says
some guidelines are clear and oth-
ers arenrsquot ldquoDevelopment by design
is needed throughout the pro-
cess but the piece we still struggle
with the most is mode of action
(MOA) and product characteriza-
tion Regulatory agencies under-
stand that it is difficult to pinpoint
MOArdquo
Preti emphasizes the importance
of working with regulators ldquoYou
can be in a position to inform and
influence regulations as products
are developedrdquo he says
For any company moving into
this brave new world top-level ques-
tions are needed Preti says empha-
sizing the following ldquoDo you have
an understanding of scale Can you
scale up from very small Can you
characterize the process and control
it for reliability and qualityrdquo
In the stem cell area in particu-
lar this is crucial Preti said since
the product relies heavily on the
process ldquoManufacturing can be
thought of as patient administra-
tion It cannot be separated in
the same way that it can for tra-
ditional medicinesrdquo For contract
suppliers he adds demonstrated
success will be important and
sponsors should consider whether
a prospective partner will be able
to stay with them for the long run
referenCes 1 P Hourd et al Regulatory Challenges
for the Manufacture and Scale-
Out of Autologous Cell Therapies
Massachusetts General Hospital
(Cambridge MA 2013)
2 S Farid et al Biotechnol Bioeng
111(1) 69-83 (January 2014)
3 R Grant Building Deliverable Cell
Therapeutics A Methodical Approach
to Manufacturing Development
(Webinar Oct 22 2014) bp
source invetech
Justifcation driversChange in cost
doseDevelopment
estimate
Unit Op Ref
Change decription
Comparability risk
Quality COGs Scale Sustainability LaborMaterials outplant
Cost Time
P-2 Process change 1 Medium X X darr $ $$$ TT
P-3 Process change 2 High X X X darr $$$ $$$$ TTT
P-4 Process change 3 Low X X darr $$ $$ TTT
P-2 Process change 4 Low X $$ T
QC-4 In-house QC test None X TT
QA-1Electronic Batch
RecordNone X X X
darr $$$$
TTTT
Table III Process changes timing and comparability risks cogs is cost of goods Qc is quality control
32 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Intellectual Property
Protecting Intellectual Property
in Engagements with CMOs
Important IP contractual provisions should be included when working with CMOs
Jennifer L CoLLins
Biotechnology and pharmaceutical companies
often engage contract CMOs to assist with
the development of their drugs This type
of arrangement naturally involves the devel-
opment of intellectual property (IP) so it is
important for both the CMO and the sponsor to iden-
tify pre-existing intellectual property and also define
how rights to new IP will be allocated protected and
enforced by and between the companies
If the arrangement with the CMO is a traditional fee-
for-service arrangement where the company pays the
CMO service fees to perform development work on its
behalf then generally all new IP (other than improve-
ments to the CMOrsquos manufacturing technology) will be
owned by the biotechnology or pharmaceutical com-
pany that engaged the CMO On the other hand if the
arrangement between the CMO and the biotechnology
or pharmaceutical company is more of a collaborative
arrangement where both parties share the costs of devel-
opment as well as any profits from the commercializa-
tion then IP concerns become much more complicated
In that case in addition to describing which party will
Jennifer L CoLLins is a technology and licensing attorney with Morningstar Law Group jcollinsmorningstarlawgroupcom
Fa
na
tic S
tud
ioG
ett
y Im
ag
es
wwwbiopharminternationalcom June 2015 BioPharm International eBook 33
Outsourcing Resources Intellectual Property
own the new IP the contract should
sort out which party will be respon-
sible for obtaining and maintaining
patents on the new IP controlling
litigation against infringers and
defending the IP against challenges
In addition the parties should agree
upfront on how the IP may be used
by each party following various ter-
mination events so that the parties
are not left fighting about such mat-
ters at a time when they may not be
inclined to agree to anything
In both arrangements without
specific contractual provisions to
define and protect the new IP a
biotechnology company or phar-
maceutical company that uses a
CMO for development is at risk of
losing control of and possibly own-
ership of important improvements
to its drugs This article discusses
IP contractual provisions that
should be included in each type of
arrangement
Fee-For-service
development work
Traditionally CMOs perform fee-for-
service development work where
a biotechnology or pharmaceutical
company engages the CMO to per-
form this work for a fixed fee In this
type of arrangement the CMO is a
service provider and typically takes
no ownership interest in the drug or
product that is being developed or
in improvements to an existing drug
or product that is being tested or
developed The contract governing
the relationship nevertheless must
be clear about the IP rights that are
owned and licensed by each party
If the contract does not provide
for proper assignments of IP to the
biotechnology or pharmaceutical
company then it is likely that the
CMO will own any improvements
or other inventions that it develops
in the performance of the develop-
ment services even if that is not the
intent of the parties
Without signed written contracts
that state otherwise under United
States patent law the inventor of
a patentable invention or improve-
ment will own the invention or
improvement even if the inventor
is engaged to develop the invention
or the improvement for a customer
or other third party To ensure
that the biotechnology company or
pharmaceutical company obtains
all the patent and other IP rights
in developments inventions and
improvements created in the per-
formance of services by the CMO
the governing contract between the
biotechnology company or phar-
maceutical company and the CMO
must include written present assign-
ments of those IP rights from the
CMO to the company Indeed based
on recent cases it is crucial that the
assignment clause in the contract
be a ldquopresentrdquo assignment mean-
ing that it must state specifically
that the CMO ldquohereby assignshelliprdquo
rather than a clause stating that the
CMO ldquoagrees to assignrdquo rights in the
future Otherwise the contract will
be interpreted as a promise to assign
rights in the future and the bio
pharmaceutical company will have
to go back to the CMO at some later
point in time for a separate writ-
ten assignment of rights to obtain
all patent and other IP rights in the
developments
While it sounds logical and
straightforward that the CMO
would assign all inventions created
in the development work to its cus-
tomer it is not always that simple
in practice What if the CMO devel-
ops an improvement to its manu-
facturing process in the course of
the development work Most CMOs
will want to reserve ownership of
any improvements to the CMOrsquos
existing IP and confidential infor-
mation This position is not unrea-
sonable as long as the customer
ultimately has the rights it needs in
all new inventions including those
owned by the CMO to take the drug
forward through further develop-
ment and commercialization One
must sort out IP allocation by sub-
ject matter To achieve this allo-
cation the development contract
typically will state that each party
retains ownership of all IP that it
owns as of the date of the contract
(all pre-existing intellectual prop-
erty) It will also state that the cus-
tomer owns its proprietary drug
and all improvements to the drug
or the customerrsquos confidential infor-
mation developed by either or both
parties The development contract
also may state more generally that
the customer owns all inventions
improvements and IP rights related
to the customerrsquos drug With respect
to the CMO and its IP the develop-
ment contract may state that the
CMO owns all improvements to the
CMOrsquos manufacturing process and
to its other pre-existing intellectual
property Again this reservation is
not unreasonable The customer
however should determine whether
it requires access to those improve-
ments or inventions to complete the
development and commercialization
of its drug If such access is necessary
the customer should either negotiate
a license (which may be royalty-free
or royalty-based depending on the
circumstances) to use such improve-
ments or inventions to develop and
commercialize the drug or the cus-
tomer should negotiate the terms
under which the CMO will continue
to use the improvements or inven-
tions to perform development work
andor manufacture the drug for the
customer
In the fee-for-service arrange-
ment the assignment and licensing
of IP rights in new inventions and
improvements is the key intellectual
property issue Intellectual property
considerations become much more
complicated when the biotechnol-
34 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Intellectual Property
ogy or pharmaceutical company
partners with a CMO in the devel-
opment of a new drug or product
where the parties share development
costs and profits from commercial-
ization of the drug or product
cmo as collaborator
Although not as common as the
fee-for-service arrangement a CMO
may partner with a biotechnology
or pharmaceutical company in the
development and commercialization
of a drug or product Generally both
parties are bringing pre-existing IP
to the collaboration such as a drug
from a biopharmaceutical com-
pany and proprietary drug delivery
technology from the CMO In this
scenario the CMO is taking a long-
term interest and often a part-own-
ership interest in the success of the
drug product
Instead of getting paid an hourly
rate or fixed fee for development
work on the drug product the CMO
may share the cost of development
work with the biotechnology or
pharmaceutical partner in exchange
for a share of the profits when the
drug or product is commercialized
Other costs involved in the develop-
ment and commercialization of the
drug or product that may be shared
include the cost of patent prosecu-
tion and the cost of patent litigation
if the drug product is challenged or
if it is misappropriated or infringed
To secure its interest in the profits
from commercialization of the drug
product the CMO may want to take
an ownership interest in the intel-
lectual property rights in the drug
product All of these issues must be
carefully addressed in the develop-
ment contract to avoid both finan-
cial and IP disputes
As with the fee-for-serv ice
arrangement the parties must
allocate ownership of intellectual
property rights pertaining to the
drug product to be commercialized
These rights include both pre-exist-
ing IP rights and new inventions
and improvements developed in
the course of the development con-
tract As with the fee-for-service
arrangement the parties typically
will retain rights to their respec-
tive pre-existing IP Intellectual
property rights to new inventions
and improvements however may
be shared by giving each party a
co-ownership interest in the intel-
lectual property Alternatively such
rights may be allocated by inventor-
ship with each party taking owner-
ship of developments that it invents
and with the parties jointly own-
ing jointly developed inventions
As another alternative the IP rights
may be allocated by subject matter
as in the fee-for-service arrangement
with each party owning improve-
ments and inventions related to its
pre-existing IP regardless of which
party invents those improvements
and inventions
Depending on how the pat-
ent applications are drafted the
IP rights may be ldquosliced and dicedrdquo
more finely One party for example
could own patent rights for a drug
product for one indication while the
other party owns patent rights for
the same drug product for another
indication Decisions about how
to allocate the IP rights should be
made in consultation with intel-
lectual property counsel and must
take into account the manner in
which the drug will be commercial-
ized If one party for example is
to commercialize the product in
North America and Europe and
the other party is to commercialize
the product in the rest of the world
then either the patent ownership
should be allocated by territory or
the development contract should
include exclusive cross-licenses of
each partyrsquos rights in all the intel-
lectual property necessary to com-
mercialize the product with the first
party having an exclusive license to
commercialize the product in North
America and Europe and the second
party having an exclusive license to
commercialize the product in the
rest of the world
If the parties are going to share
ownership of the IP related to the
drug product then the develop-
ment contract also should specify
which party is responsible for pros-
ecuting and maintaining patents
on the drug product Regardless of
which party is responsible for patent
prosecution and maintenance the
other party should be consulted and
involved in key decisions regard-
ing patent prosecution and main-
tenance Unless there are multiple
patents for different indications that
will be commercialized exclusively
by one party and unless each party
has exclusive rights to commercial-
ize the drug product in particular
geographic areas it generally makes
sense for one party to take the pri-
mary responsibility for patent pros-
ecution and maintenance globally
with the other party consulting and
sharing in the cost of the prosecu-
tion and maintenance in accordance
with the profit sharing The party
that is not responsible for prosecu-
tion and maintenance should have
a contractual right to approve patent
counsel and review and approve pat-
ent filings office action responses
and other communications with
patent registries before they are filed
or submitted so that the parties
agree on the proper prosecution and
maintenance strategy
Likewise the development con-
tract should allocate the rights and
responsibilities for asserting and
defending the patents pertaining to
the product in litigation Often these
rights and responsibilities are allo-
cated by territory according to com-
mercialization rights If one party
for example has the exclusive right
to commercialize the drug product
wwwbiopharminternationalcom June 2015 BioPharm International eBook 35
Outsourcing Resources Intellectual Property
in the US then that party would
have the first right and responsibil-
ity to assert the patents on the drug
product against potential infringers
and defend the patents on the drug
product against infringement claims
in the US Likewise if one party has
the exclusive right to commercial-
ize the drug product for a particular
indication then that party would
have the first right and responsibility
to assert or defend the patents per-
taining to the product with respect
to that indication Both scenarios
can present challenges First some
courts will not recognize an exclu-
sive licensee as having standing to
assert a patent That court might
only allow the owner of the patent
(and not the exclusive licensee) to
bring a lawsuit asserting the patent
It is crucial therefore that contrac-
tual provisions relating to patent liti-
gation require the party that owns
the patent to cooperate in any litiga-
tion and to join the suit as a party if
necessary
Another potential problem is that
any litigation that asserts the pat-
ent is likely to draw a counterclaim
that the patent is invalid thus put-
ting the patent itself at risk of invali-
dation While one party might be
threatened by a potential infringer
in a particular market or for a partic-
ular indication and therefore might
want to assert the patent against the
potential infringer the other party
might not want to put the patent at
risk as to other markets and other
indications For these reasons the
contractual provisions pertaining
to patent litigation must be care-
fully drafted in consultation with
intellectual property counsel who
understands standing issues and
the potential areas for dispute The
contractual provisions also should
include dispute resolution provi-
sions for situations when the parties
do not agree on whether a patent
should be asserted
Finally while the parties may
want and expect their relationship
to continue for the full term of the
patents and the development con-
tract the parties must carefully
consider the IP ramifications of an
early termination of the develop-
ment contract and the relationship
particularly if the development con-
tract is terminated for breach If the
parties are sharing in the ownership
commercialization and profits gen-
erated by the drug product devel-
oped by the collaboration then
all of that must be unwound upon
termination The development
contract should be as specific as
possible with respect to the effect of
various types of termination on the
intellectual property and contin-
ued commercialization of the drug
product In particular the parties
may agree that if the development
contract is terminated due to breach
by one party then that breaching
party must relinquish and transfer
all of its rights with respect to the
drug product to the other party to
allow the non-breaching party to
continue the commercialization of
the drug product post-termination
Whether the necessary rights are
assigned or licensed whether the
terminated party should receive a
royalty for the transfer or license of
those rights and what if any pre-
existing IP is licensed to enable the
non-breaching party to continue
commercializing the drug product
are all key factors for negotiation
The development contract should
also address other types of termi-
nation such as termination for
insolvency and termination with-
out cause (ie if one party decides
it no longer wants to commercial-
ize the drug product) In each case
the effect of termination on the IP
rights should be carefully analyzed
and a competent IP counsel should
carefully draft post-termination
assignments and licenses
conclusion
While IP lawyers are not equipped
with crystal balls they can be
extremely helpful in analyzing par-
ticular development commercializa-
tion and post-termination scenarios
all of which affect IP in a drug devel-
opment arrangement Contractual
provisions related to IP must be
carefully drafted to align with the
strategic business objectives of any
relationship and particularly one
whose purpose is the development
and commercialization of intellec-
tual property Without a clear con-
tract each collaborator is at risk of
losing important rights bp
Ad Index
AJINOMOTO ALTHEA 21
AVID BIOSERVICES INC 15
CYTOVANCE BIOLOGICS 27
EMERGENT BIOSOLUTIONS 13
EUROFINS LANCASTER LABORATORIES 7
SAFC BIOSCIENCES SIGMA ALDRICH 17
THERMO FISHER SCIENTIFIC 23
TOSOH BIOSCIENCE 11
WATERS CORP 3
Company Page
![Page 14: OUOURT NG I C RESOURCESfiles.pharmtech.com/alfresco_images/pharma/2019/03/08/... · 2019-07-22 · VIDEO INTERVIEW Biologics Development and Manufacturing Trends: Part I ... Media](https://reader034.vdocuments.us/reader034/viewer/2022050113/5f4aca886c0d6724390eb040/html5/thumbnails/14.jpg)
14 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources CROCMO Viewpoints
McNally (PPD Consulting) FDA
establ ished a new Off ice of
Pharmaceutical Quality in 2014
which we anticipate will have major
impacts on the biopharmaceuti-
cal development and manufactur-
ing process This reorganization
was designed to enhance quality
drug assessment by realigning sev-
eral elements of the preapproval
and surveillance inspection pro-
cess Integrating risk-based review
GMP inspection implementation
of quality by design and the new
FDA process validation guidance
within one office is expected to
significantly change the biophar-
maceutical development and manu-
facturing process
H a r t z e l ( C a t a l e n t P h a r m a
Solutions) In todayrsquos market there
are significant manufacturing
challenges in traditional glass vial
filling applications These chal-
lenges manifest in quality issues
with the final container closure
and may be related to microbial
contamination glass particulates
and foreign materials that lead to
necessary market action causing
supply issues
Lorimer (Patheon Biologics) The
greatest regulatory change in recent
times is the acceptance and approval
of biosimilars
BioPharm What business trends
have posit ively or negatively
impacted biopharmaceutical devel-
opmentmanufacturing processes
H a r t z e l ( C a t a l e n t P h a r m a
Solutions) Today there is a stronger
emphasis in the development life-
cycle on the delivery of the mol-
ecule to the patient and not just
the molecule itself Deliverydevice
experts are being added to teams
at Phase II to improve the delivery
beyond the traditional vial
Lively (PPD) Growing interest
in biopharmaceutical drug devel-
opment necessitates partnering
between clients and contractors to
increase industry capacity breadth
of capabilities expertise and
the experience required to bring
these drugs to market The client
will receive the most benefit by
selecting a high-quality contract
research organization (CRO) lab
that is able to meet its needs and
work collaboratively with the cli-
ent to ensure timely development
Lorimer (Patheon Biologics) The
trend of small biotech partner-
ing with large pharma for clinical
manufacturing and development
has certainly facilitated the full
development of more novel mol-
ecules Also the increasing trend
toward outsourcing of GMP biolog-
ics manufacturing ensures biopro-
cessing and testing is performed
by expert manufacturers with
proven track records in quality and
biomanufacturing This helps to
reduce the risk to clinical programs
and product safety
technicalscientific tRendsBioPharm Can you describe pro-
ductivity improvements your com-
pany has experienced from new
technologies
Patel (Catalent Pharma Solutions)
Catalent Pharma Solutions has sig-
nificant ongoing investments in
enhancing our large-molecule ana-
lytical capabilities and productiv-
ity to meet and advance current
industry needs Recent invest-
ments include the updatednew
technologies new assay strategies
and updated electronic systems
and processes
Lively (PPD) Evolving character-
ization expectations for biologics
have driven improvements in ana-
lytical equipment processes and
systems Ultra performance liquid
chromatography (UPLC) systems
have improved resolution and sen-
sitivity while reducing run times
In addition 2D high-performance
liquid chromatography (HPLC)
high-resolution mass spectrom-
etry (MS) allows for analysis of
samples incompatible with tradi-
tional MS Reporter gene bioassays
apply genetically engineered cell
lines both to directly model mech-
anisms of action and to amplify
assays for improved performance
with shorter incubations and
increased signalnoise relative to
standard bioassays
Lorimer (Patheon Biologics) The
main productivity improvement
has been increasing the through-
put of products in Patheonrsquos mul-
tiproduct biopharmaceutical GMP
facilities Single-use disposable
bioreactors and similar single-use
bioprocess equipment minimize
plant downtime which is tradi-
tionally required for line clearance
and product changeover The com-
plexity of product changeovers is
reduced by single-use technology
which decreases the need for clean-
in-place steam-in-place and qual-
ity control testing Typically line
Approval of the first
biosimilar in the
United States as well
as consolidation in
the biopharma and
contract development
and manufacturing
markets are just
two indicators of the
ongoing evolution of
biopharmaceutical
development
YOUR PARTNER FROM CONCEPT TO COMMERCIAL
1
42
5
3CELL LINE DEVELOPMENT
bull Cell line development amp selection
bull Cell line characterization amp optimization
bull Subcloning
bull Suspension adaptation
PROCESS DEVELOPMENT
bull Upstream development amp optimization
bull Media optimization feeding strategyamp design including DoE approach
bull Downstream development ampoptimization
bull Process optimizationprocess scale-up
bull Viral inactivationremoval study design
bull Formulation development amp screening
bull Up to 100L controlled bioreactors
bull Process validation
ANALYTICAL METHODS DEVELOPMENT
bull Development feasibility optimizationtransfer qualification amp validation of methods
bull Identity purity potency safety ampcharacterization
cGMP BIOMANUFACTURING
bull Commercially-licensed facility
bull Flexible manufacturing capabilities
bull Stainless steel amp single-use systemsfrom 100L-1000L
bull FDA EU amp ANVISA inspected
QUALITY AND REGULATORY SERVICES
bull Regulatory strategy amp submissions
bull cGMP CMC Section 7 support
bull In-process amp release testing
bull Stability testing
bull Reference standard generation
For more information please visit us at wwwavidbiocom or
e-mail businessdevelopmentavidbiocom
THE AVID
ADVANTAGE
16 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources CROCMO Viewpoints
clearance time is reduced by sev-
eral days
R o g e r s ( S G S L i f e S c i e n c e
Services) As an analytical ser-
vice provider SGS is constantly
in search of means to improve
its laboratory efficiencies partic-
ularly those that enhance turn-
around time without adversely
effecting quality With this in
mind substitution of HPLC for
UPLC rapid microbiolog ica l
screening methods and invest-
ment in automated approaches to
complex analytical problems such
as protein sequencing are now
being used within the SGS labora-
tory network
Chambers (SGS) From a CRO
point of view the main produc-
tivity improvements in analytics
have been from higher through-
put systems and data analysis The
move to these faster systems with
semiautomated data processing has
allowed us to improve turnaround
times which are passed on to cli-
ents in terms who win on faster
to market times and faster gono
decisions
BioPharm What additional tech-
nology improvements are needed
to improve the efficiency of bio-
processing
Lorimer (Patheon Biologics)
Process analytical technology
(PAT) for continuous monitoring of
bioprocesses is helping reduce the
variability on biopharmaceutical
manufacturing
Also biopharmaceutical devel-
opment and process validation
have been accelerated by the use
of mini-bioreactor systems which
enable a large amount of process
development data to be gener-
ated within a very short timeline
These multi-bioreactor systems
can reduce process develop -
ment timelines by months when
applied to early-stage or late-stage
bioprocesses
Rogers (SGS Life Science Services)
The development of many tech-
nologies follows a common path
from academia to commercial
application and nowhere is this
more evident than in the field of
bioprocessing In almost all exam-
ples the key to this progression
lies in the ability to simplify opera-
tional aspects of the technology
and improve throughput This has
in the past been clearly demon-
strated in for example the field of
mass spectrometry and is currently
evolving with techniques involved
in biophysical characterization
BioPharm What is the greatest
technical challenge facing biophar-
maceutical companies today
Hartzel (Catalent Pharma Solutions)
Cost to manufacture will continue
to be a major challenge for the
industry especially with the rise
of biosimilars and market pressures
to drive down the cost of medi-
cines However the products that
are coming to market are more
targeted which leads to smaller
batch sizes This is counter to the
manufacturing adage of being able
to leverage economies of scale to
drive out costs hence the need to
focus on alternatives technologies
and innovation to reduce the man-
ufacturing costs versus economies
of scale
Lively (PPD) Application of ana-
lytical techniques to better char-
acterize innovator and biosimilar
or follow-on products by physico-
chemical and functional methods
are required and will continue to
be driven by the complexity of
biologics development For exam-
ple changes in formulations may
cause different leachable profiles
requiring increasing emphasis on
extractablesleachables techniques
(ie high-resolution MS) to sup-
port characterization of formu-
lation effects identification of
degradation and impurities and
determination of their potential
impact through application of
potency bioassays
Lorimer (Patheon Biologics) Most
of the technical challenges for
manufacturing have been over-
come and the technologies for
development and manufactur-
ing have been widely adopted
Perhaps the greatest challenge is in
clinical development of novel and
originator molecules where in-vitro
model systems are still not a great
predictor of clinical performance
Rogers (SGS Life Science Services)
To highlight one technical chal-
lenge above all others in todayrsquos
biopharmaceutical industry is
very difficult The complexity of
biotherapeutics often results in
considerable technical difficul-
ties as for example in the area
of impurities recognition of host-
cell proteins (HCPs) and identi-
fication of structural variants at
trace levels are certainly high on
the list of technical concerns The
necessary inclusion of relatively
elaborate analytical techniques
such as sedimentation velocity
analytical ultracentrifugation (SVndash
AUC) within a traditional qual-
ity control release environment is
also not without problems
BioPharm What are the pros-
pects for continuous manufac-
turing to be firmly established in
bioprocessing What are the road-
blocks to implementation
Lorimer (Patheon Biologics)
Continuous product ion f rom
mammalian cell cultures has been
operated in perfusion bioreactors
for many years The main road-
block for continuous processing is
downstream processing of proteins
which currently demands discrete
and distinct unit operations for
removal of impurities removal
of contaminants concentration
of the products and formulation
each in separate controlled steps
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NEXT GENERATION MEDIA PLATFORM
18 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources CROCMO Viewpoints
and which are not currently ame-
nable to continuous processing
the Rise of biosimilaRs
BioPharm What impact w i l l
biosimilar drugs have on bio-
pharma businesses bioprocessing
approaches and the contract ser-
vices market
Rogers (SGS Life Science Services)
The European biopharma land-
scape has already experienced
impact of the biosimilar drug mar-
ket leading to rapid expansion of
traditional small molecule generic
manufactures into the bio arena
Recent FDA approval of the Sandoz
biosimilar Zarixo may be the seed
for similar changes in the US pro-
viding a potential new line of busi-
ness for established pharmaceutical
companies Contract service pro-
viders such as SGS who already
have considerable experience with
biosimilars are able to offer exper-
tise to businesses new to this mar-
ket and will no doubt benefit from
such expansion in the US
Lively (PPD) Increased invest-
ment in biosimilars is driving
interest in improving and stream-
lining the development processes
as well as the sensitivity and scope
of characterization assays used to
compare biosimilars and innova-
tor drugs The expanding capac-
ity needs result in partnerships
between clients and their contrac-
tors with the systems experience
and expertise to achieve the qual-
ity and speed required while meet-
ing all regulatory expectations for
product approval
Chambers (SGS) With nearly
20 years exper ience perform-
ing biosimilar analysis the big-
gest impact had been the massive
increase in the characterization
needed for biosimilars compared
to innovators (although higher
standards are now needed for new
innovators too) This has resulted
CMOs Add Capabilities
Consolidation in the contract development and manufacturing market has resulted in new capabilities and facility expansions
In May 2015 CMC Biologics announced that it is expanding its Copenhagen Denmark facility to increase its manufacturing capacity through the installation of six 2000-L bioreactors The bioreactors can be run singly or in groups simultaneously or sequentially and are part of the companyrsquos signature Bioreactor 6Pack single-use program The Copenhagen installation will begin initial GMP production in November 2015 and will feature three bioreactors to start Three bioreactors will be added at a later date to complete the configuration Meanwhile the Bioreactor 6Pack at CMCrsquos Seattle facility will complete its first GMP run in mid-2015 and will be ready for commercial launch by the end of the year Through its recent expansions CMC plans to expand its global capacity by more than 30000 liters in the United States and Europe
Also in May 2015 SAFC announced an expansion to its St Louis MO facility to support the commercial-scale production of antibody-drug conjugates The facility which is expected to be online and operational in the third quarter of 2015 was designed to meet SafeBridge category 4 compound handling requirements for highly active or cytotoxic compounds The expansion of an existing Carlsbad CA location will enable SAFC to offer fillfinish capabilities of viral products to its clients in the gene therapy viral vaccine and immunotherapy sectors
Rentschler announced in March 2015 that a 2000-L bioreactor that the company commissioned and built in six months is up and running The bioreactor will be integrated into existing manufacturing suites containing two 1000-L single-use bioreactors according to a company statement The companyrsquos twin bioreactor systemmdashdesigned for running two main bioreactors in parallel with one shared downstream processing unitmdashwill be functional by 2017 The twin system is estimated to double the companyrsquos production capacities for cell culture-derived proteins
In December 2014 FUJIFILM Diosynth Biotechnologies USA (FDBU) acquired Kalon Biotherapeutics adding viral and cell-culture vaccine expertise and capabilities In other activity FDBU started construction of a three-story 62000-ft2 facility in Research Triangle Park NC in January 2015 to house the companyrsquos process and analytical research and development process sciences and stability groups The expected completion date is Q4 2015
In September 2014 PCI a provider of packaging services acquired Biotec Services International a provider of clinical-trial services and temperature-controlled pharmaceutical services headquartered in Bridgend Wales UK The addition expanded PCIrsquos presence in the European Union and added packaging storage and distribution capacity and consultative services for clinical-trial supplies In January 2015 Biotec announced the validation of its clinical supply facility expansion which added almost 50 to the companyrsquos clinical trial materials handling capacity
wwwbiopharminternationalcom June 2015 BioPharm International eBook 19
Outsourcing Resources CROCMO Viewpoints
in challenges in data handling
interpretation and data presenta-
tion Biosimilars have also caused
the re-emergence of orthogonal
techniques like size exclusion
chromatographyndashmulti-angle laser
light scattering (SEC-MALL) and
SV-AUC for aggregation and cir-
cular dichroism (CD) and fourier
transform infrared spectroscopy
(FTIR) for higher-order structure
as critical analyses to understand
and compare and detect subtle
higher-order structural differences
between innovator and biosimilar
samples
Hartzel (Catalent Pharma Solutions)
The rise of biosimilar drugs will
dawn the next generation of bio-
logic manufacturing and force
the industry to look at new ways
of manufacturing to drive down
costs Therefore the industry will
seek new manufacturing partners
with strong technical expertise to
drive out costs through innovation
and operational excellence
Lorimer (Patheon Biologics)
Genera l ly b ios imi la r d r ugs
will encourage competitiveness
within the biopharma sector
Biomanufacturers expect increased
pressure on cost of goods and
pricing Biopharmaceutical con-
tract service providers with a flex-
ible multi-product operation and
proven track record in the indus-
try are well placed to ensure care-
ful control of manufacturing costs
and product quality Processing
approaches wonrsquot change in terms
of technology but there will be a
greater emphasis on operational
excellence to reduce costly inef-
ficiencies and improve yields from
bioprocesses As more biosimilars
come to the forefront and as the
industry trend for outsourcing
continues increasing operational
flexibility while maintaining the
highest quality standards will be
the keys to success
business challenges
BioPharm What is the greatest
business challenge facing biophar-
maceutical companies today
Lively (PPD) As with all phar-
maceutical drug development the
greatest challenge is getting new
life-changing and potentially life-
saving drug candidates to mar-
ket Biopharmaceuticals face more
challenges than traditional small-
molecule drug products because
the science of characterization
of such biologic drugs is rapidly
evolving along with the regulatory
landscape Those companies that
are best able to successfully char-
acterize and differentiate innovator
and biosimilar products for safety
and efficacy will have the greatest
opportunity to benefit
the knowledge gap
BioPharm In what areas do you
see knowledge or expertise gaps in
current biopharmaceutical compa-
nies Why do these gaps exist
Lorimer (Patheon Biologics) There
is a gap in translating good sci-
ence to industrial applications of
technologies that provide for reli-
able efficient cost effective man-
ufacturing at commercial scale
Maintaining a focus during early
development on eventual commer-
cial manufacturing requirements
while balancing limited develop-
ment resources requires a broad
base of coordinated organiza-
tional skillsets and a disciplined
approach
Hartzel (Catalent Pharma Solutions)
Devicedelivery expertise is an
area that has a potential gap For
biologics the historic default con-
tainer closure has been a tradi-
tional glass vial As the healthcare
industry seeks ways to improve
patient care and reduce costs the
delivery to the patient needs to
adopt new technologies and this
is why we have seen a rise of pre-
filled syringes and autoinjectors
These technologies will continue
to evolve and so will the demand
for devicedelivery experts
Lively (PPD) One of the chal-
lenges we see is the various levels
of knowledge and expertise that
exist between biopharmaceutical
RampD and the testing and regula-
tory industries That differential is
impacting those industriesrsquo ability
to fully consider and effectively
implement expectations and guid-
ance for physicochemical and
functional characterization expec-
tations of biologic drugs
Lorimer (Patheon Biologics) The
commercial biopharmaceutical
industry demands global sourc-
ing of materials services supply
and ultimately distribution to each
patient This requires a robust inte-
grated supply chain to deliver high
value products to patients on-time
and at the right quality Doing this
reliably and efficiently with long
production lead times and uncer-
tain market sales forecasts is an
industry wide challenge
Speed-to-market remains a key
challenge to the development of
biopharmaceuticals Speedy first-
time-in-man clinical trials can be
a major hurdle for small biotech
companies and large pharma alike
Rogers (SGS Life Science Services)
I believe there continues to be a
significant problem in the level of
fundamental scientific expertise
within many biopharmaceutical
businesses In part this may be
attributed to the lsquokitrsquo and lsquoblack
boxrsquo approach of many modern
day technologies Due to the
complexity of many biopharma-
ceuticals their development and
success as therapeutics requires a
comprehensive range of scientific
disciplines and expertise which
can be difficult to fully realize
internally particularly for small
and mid-size companies bp
20 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources FillFinish
FillFinish Trends
Automation and disposables continue to reduce human error
Eric s LangEr
Fillfinish operations continue to be domi-
nated by trends in automation and the adop-
tion of single-use equipment But these are
by no means the only factors affecting these
high-value operations according to BioPlan
Associatesrsquo latest biomanufacturing study (1) Fill
finish processes are among the most outsourced
activities in biomanufacturing today and a service
providerrsquos capacity for vialing pre-filled devices
and lyophilization is crucial In a recently pub-
lished whitepaper (2) BioPlan Associates determined
that there is sufficient global in-house capacity
for biologics but the need continues to grow for
greater access to specialized outsourcing competence
Whatrsquos trending is significant improvements in auto-
mation and operations
AutomAtion And single use defining Cmo strAtegy
The top trends today involve automation and devel-
opment of better disposable technologies As part of
the BioPlan study biomanufacturers were asked to
select the trends they believe to be the most impor-
tant in fill and finish today The top three trends
are single-use equipment automation in full isolator
units and facilities becoming multi-product ori-
ented (see Figure 1)
Other important trends were noted including
bull Increased serialization and product labeling for
anti-counterfeiting
Eric s LangEr is president and managing partner at BioPlan Associates Inc elangerbioplanassociatescom tel 3019215979 wwwbioplanassociatescom
Ma
ria T
ou
tou
da
ki
Ge
tty Im
ag
es
WITH ALTHEA YOU HAVE THE POWER TO MAKE
You have the power to make a difference To make new therapeutics that improve quality of life and inspire a healthier world To do this you need a manufacturing partner who embraces your every challenge as its own who shares your unwavering tenacity and dedication from clinical studies through commercial success Thats The Power To Make
PLAY VIDEO
CONTRACT
MANUFACTURING
Q Development
Drug Substance
lj Drug Product
(D Al TH EA I THE POWER TO MAK A MEMBER OF THE AJINOMOTO GROUP
22 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources FillFinish
bull More f i l l f i n i sh fac i l i t ie s
o p e r a t i n g i n d e v e lo p i n g
regions
bull C o m p u t e r - b a s e d v i s u a l
i n s p e c t i o n a r t i f i c i a l
intelligence
bull Use of complex administration
systems
single-use equipment in fillfinish operAtionsT h e a d o p t i o n o f d i s p o s -
ab le e qu ipme nt i n f i l l f i n -
i s h o p e r a t i o n s e l i m i n a t e s
cross-contamination risks and
adds flexibility in process scale
While regulatory rest r ic t ions
may be increased by the adop-
tion of such equipment single-
use appl icat ions a lso enable
contract manufactur ing orga-
nizat ions (CMOs) to increase
fac i l i t y ut i l i z at ion t h rough
multi-product strategies which
can decrease their cost of goods
Experts in the f ield discussed
these trends
Peter Pekos CEO and president
of Dalton Pharma Services a fill
finish CMO says ldquoFor a CMO
disposables can be attractive hellip
For example a disposable isola-
tor can be packed and stored pre-
sterilized for use when needed
a f ixed isolator requires f ixed
space at all times Disposables
also allow a CMO to handle proj-
ects using specific systems for
non-typical project needs such
as disposable isolators without
going to the expense of buying
permanent isolator infrastruc-
ture Disposables do not obviate
the need for technical expertise
hellip so the need for a CMO isnrsquot
really reduced In fact CMOs
with expertise in single-use sys-
tems hellip can make them more
attractiverdquo
Mar t ina Fe r neman cor po -
rate development manager at
Recipharm bel ieves that the
adoption of single-usedispos-
able equipment is now impacting
f i l l and f inish ldquoIn mult ipur-
pose sites the cleaning proce-
dures will become more crucial
to avoid cross contamination
Single-use equipment [also] has
the advantage of shorter lead
t imes and lower procurement
costs Since no cleaning proce-
dure has to be established and
aseptic connections are easier to
be built-up the use of single-
use equipment is not only faster
but also safer than conventional
equipmentrdquo
AutomAtion in full isolAtor unitsW hi le s ing le -use equ ipment
adoption may be one of the hot-
test f i l lf inish trend automa-
tion technologies may actually
be experiencing more rapid rates
of implementation among bio-
manufacturers Indeed sepa-
rate results from BioPlanrsquos 12th
annual study suggest that the
industry wi l l be as l ikely to
implement automation technolo-
gies as they will use single-use
f i l l-f inish devices dur ing the
next 24 months
The removal of human factors
is a key to improving product
quality Isolators and automa-
tion are therefore key drivers
as facilities seek to improve their
i n f r a s t r u c t u r e I n nov a t io n
around equipment and facilities
able to handle multiple products
is going to continue Flexibility
is key as the reduced flexibility
of isolators (and higher cost) in
relation to traditional restricted
access barrier (RAB) systems may
deter some CMOs from adopt-
ing isolators The jury is st i l l
out because the decision fac-
tors between RAB and isolators
are complex and this tends to be
a high-cost decision often left
to the larger f illf inish CMOs
ldquoCMOs will adopt isolator tech-
nologies in their processes to
meet industry needs and reduce
r isk In some cases this wil l
also include disposable isolators
which can offer the benefits of
fixed isolators but add a degree
of f lexibil ity to the manufac-
turerrdquo Pekos notes
According to Ferneman adopt-
ing automat ion in ful l isola-
tor units to reduce the need for
operators is a trend seen in the
CMO market ldquoUse of barr ier
technology (RABS or isolators)
should ensure optimal protec-
t ion of ster i le areas Isolators
bear a better potential to prevent
biocontamination Since the iso-
lator is a closed system a lower
air quality than in RABS systems
can be usedrdquo For freeze-dried
products the RABS system is a
better choice because loading
has to be performed in class AB
surrounding
Fig
ur
e 1
is
co
ur
te
sy
oF
th
e a
ut
ho
r
Figure 1 selected bioprocessing fllfnish trends in 2015
Single-usedisposable equipment
adoption55
36
35Facilities becoming more multi-
product-use oriented
Automation in full isolator units
reduce need for operators
More compounds More accuratelyFaster than ever
Quantitation transformed
Todayrsquos range of possible therapeutic agents from small molecules to peptides to antibodies and
ADCrsquos makes quantitative bioanalysis a challenge Quantify potential therapeutics faster and more
accurately with our new portfolio of LC-MS instruments sample prep solutions and software HRAM
solutions using Thermo Scienti ctrade Orbitraptrade MS enables selectivity for complex molecules while
triple quadrupole MS delivers SRM sensitivity and speed to detect targeted compounds more quickly
Meet todayrsquos challenges with us and together wersquoll transform quantitative bioanalysis
Thermo Scienti ctrade Orbitrap Fusiontrade MSUnprecedented depth of analysis and
throughput for biological discovery
Thermo Scienti ctrade TSQ Quantivatrade MSLeading SRM sensitivity and speed
in a triple quadrupole MSMS
Thermo Scienti ctrade Q Exactivetrade MSScreen and quantify known and unknown targets with HRAM Orbitrap technology
copy 2
014
Ther
mo
Fish
er S
cien
tifi c
Inc
All
right
s re
serv
ed A
ll tr
adem
arks
are
th
e pr
oper
ty o
f The
rmo
Fish
er S
cien
tifi c
and
its
subs
idia
ries
bull Discover more at thermoscienti ccomquan-transformed
24 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources FillFinish
Cmos stAying
AheAd of the Curve
In the whitepaper on in-house
fillfinish operations for recom-
binant therapeutics (2) BioPlan
found relatively low average in-
house capacity utilization rates
for lyophilization (55) pre-filled
devices (58) and vialing (70)
This finding suggests that for fill
finish CMOs the real value isnrsquot
necessarily in providing additional
flexible capacity but rather in posi-
tioning themselves as providing
highly sophisticated and novel
technologies and expertise in fill
finish services Indeed CMOs are
expected to have state-of-the-art
equipment As Pekos notes ldquoCMOs
who implement flexible and inno-
vative technologies to make man-
ufacturing or development more
efficient faster compliant or more
economical all serve to make them
more attractive to customersrdquo
For CMOs that make use of
innovative fillfinish technologies
there appears to be a good deal
of demand Results from BioPlanrsquos
annual studies indicate that fill
finish services are among the most
widely and heavily outsourced
biomanufacturing activities today
and are also among the activities
that biomanufacturers are most
likely to outsource at significantly
higher levels in the future
Biomanufacturers and CMOs are
actively looking to their fillfin-
ish equipment suppliers and are
beginning to demand additional
new technologies innovation and
product development In 2014 for
example when the top areas that
biomanufacturers wanted their
suppliers to focus their develop-
ment efforts on were measured
fillfinish services topped the list
cited by 23 of biomanufacturers
Not only did that figure represent
a substantial increase from years
past (13 in 2011) but it was also
ahead of other services including
upstream and downstream process
development services
Fillfinish will continue
to be an area of
growth for CMOs
There are a number of areas in
which suppliers can add value to
fillfinish innovation according
to industry experts Jim Agalloco
president of Agalloco amp Associates
in Belle Mead NJ says ldquovendors of
equipment and components to fill
finish must continue their roles as
technology leaders Innovation in
this market has always been sup-
plier driven because the operating
firms do not have the necessary
expertise Collaboration between
equipment manufacturers and
component suppliers is essential
for implementation of new con-
tainer systems single-use dispos-
ables and other advancesrdquo
Ronald Malone senior principal
scientist at Novartis Vaccines says
ldquoBlow-fill-seal containerclosure
systems are beneficial for small-
volume parenterals However over-
all cost may still be higher per unit
than traditional vialstopper fill-
ing Vaccines and biologicals can
benefit from single-dose disposable
systems that drive down the cost
of the containerclosure system
This will assist the global supply to
developing world countries where
these products are truly neededrdquo
W B W i e d e r s e i m o f
PharmaBioSource in Wayne PA
states ldquoWe see smaller higher
technical facilities inclusive of dis-
posables (isolators and not RABS)
and advanced aseptic work cell
technology as the wave of the
futurerdquo
WhAt does the future hold
BioPlanrsquos survey data and indus-
try interviews indicate that fill
f inish will continue to be an
area of growth for CMOs that
maintain the required technical
quality and regulatory expertise
in this segment Experts have
taken note of CMOsrsquo introduc-
tion of smaller filling machines
for syringes or vials a trend that
may be in response to the indus-
try-wide move towards smaller-
scale manufactur ing projects
This shift may be accelerated by
the advent of biosimilars which
should provide an increasing
number of projects for fillfin-
ish CMOs although likely on a
smaller scale This increase in
projects could lead to potential
mergers and acquisitions with
some experts noting that fillfin-
ish CMOs are already engaging
in this trend toward larger capac-
ity and global operations
Indeed within the past 18
months a number of acquisi-
tions have occurred including
Pfizerrsquos acquisitions of Hospira
a nd In noPha r ma Pat heonrsquos
mergers in the contract services
space IDT Biolog ika invest-
ments Vet ter invest ing USD
$100 million to upgrade fill-fin-
ish facilities in the United States
a nd Ger ma ny a nd Ba xte r rsquos
investment in German facilities
and numerous others (3)
For CMOs to stay ahead of the
curve they will likely need to
continue to adopt disposables
technologies and advance their
automation in full isolators Ray
Cardin of PharMax Consulting
says ldquoIncreased use of dispos-
able pre-sterilized f illing tech-
nologies [are future trends] The
combination of these pre-ster-
ilized units with the coming of
age of ster i le connectors that
provide high sterility assurance
wwwbiopharminternationalcom June 2015 BioPharm International eBook 25
Outsourcing Resources FillFinish
Biologics Development and Manufacturing Trends Part II
Eric Langer Managing Partner BioPlan Associates talks about the results from BioPlan AssociatesOtilde 12th Annual Report and Survey of Biopharmaceutical Manufacturing Capacity and Production Langer discusses what respondents indicated as the number one trend in biologics manufacturing improving efficiencies and the biosimilars market
in less clean environments is
changing the way aseptic pro-
cesses are designedrdquo
Gordon Leichter PhD Eastern
r e g io n a l s a l e s m a n a ge r a t
Belimed in Charleston SC states
ldquoAutomat ion in fu l l i solators
wil l el iminate operator inter-
vention and laser-sealed vials
Automation will become more
integral to building automation
and enterprise systemsrdquo
Douglas Stockdale vice-presi-
dent CMCTechnical Operations
Hi l lhurst Biopharmaceut ica ls
Los Angeles CA says ldquoIndustry
will continue pushing the PAT
[process analytical technology]
envelope to f ind a lternat ive
methods to improve in-process
methodologies and processesrdquo
Fe r ne ma n add s ldquoCu r r e nt
trends in fillfinish innovation
will probably focus the market
authorization holders on a few
strategic products resulting in
outsourcing of a bigger share of
products overallrdquo
ConClusion
Until recently the handling of
ster i le l iquids in the pharma-
ceutical industry has relied on
relatively consistent techniques
during the past 100 years with
relatively slow changes in tech-
nologies and regulations result-
ing in incremental improvements
in safety efficiency and prod-
uct quality During the past 20
years however costly biologics
have taken a prominent indus-
try role The value of these drugs
can often be measured in tens of
thousands per dose This has put
greater pressure on these down-
stream fillfinish operations to
ensure quality safety and cost-
efficiency are not compromised
at this crucial late stage in manu-
facturing Trends in fillfinish for
recombinant therapeutics include
the increased use of isolator
technologies more high-speed
operations and other innovative
approaches including single-use
processing As a result of industry
research BioPlan expects more
outsourcing of fillfinish opera-
tions in coming years
referenCes 1 BioPlan Associates 12th Annual
Report and Survey of Biopharmaceutical
Manufacturing Capacity and Production
(Rockville MD April 2015) www
bioplanassociatescom
2 BioPlan Associates Trends in Aseptic
Bioprocessing Capacity for the Fill and
Finish of Recombinant Biologics An
Analysis of US and European In-house
Capacity and Capacity Utilization (BioPlan
Associates December 2014)
3 Information derived from BioPlan
Associatesrsquo BioFacilities Newsletters Bp
26 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Cell Therapy
Taking a ldquoDevelopment-by-Designrdquo
Approach to Cell Therapies
Whether outsourcing or developing cell therapies in-house success demands a focus on quality cost of goods
and sustainability from the start
Agnes shAnley
Cell therapies both autologous and allo-
geneic have come a long way in just a
few years Countries around the world
most recently Japan have passed regula-
tions designed to speed development of
these treatments which are now a big and growing
global business
In 2013 according to the Pharmaceutical Research
and Manufacturers Association 69 cell therapies six
of them autologous or patient-specific treatments
were in clinical trials or being reviewed in the United
States alone 15 of them in Phase III trials (1)
The road is littered with failures however often
in clinical stages This has been traced to problems
with manufacturing and failure to understand pro-
cess requirements earlier in the development process
Table I outlines manufacturing issues
As a growing number of Big Pharma companies
explore the potential for immune regenerative and
other cell therapies equipment manufacturers includ-
Agnes shAnley is senior editor of BioPharm International
SC
IEP
RO
GE
tt
y Im
aG
ES
wwwcytovancecomResponsive Reliable Resourceful
Your partner in biopharmaceutical contract manufacturing of therapeutic proteins and antibodies from mammalian cell culture and microbial fermentation
28 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Cell Therapy
ing Pall Corp EMD Millipore
and GE Biosystems have set up
centers of excellence to focus on
developing equipment for this
new market Engineering compa-
nies such as Invetech and Instrom
are developing equipment specific
to this niche
More CDMos are entering
Cell therapy Market niChe
Demand for spec ia l i zed ce l l
t he rapy ma nu fac t u r ing a nd
development serv ices is a lso
growing and has attracted Lonza
Bioservices Cognate BioServices
WuXi AppTech and Roslin Cells
among others
NeoStem is fol low ing t wo
paths pursuing its own cel l
therapy pipel ine and explor-
ing contract services through
its contract development and
manufac t u r ing organ i zat ion
(CDMO) subsidiary Progenitor
Cell Therapy (PCT) With bases
in Irvine and Mountain View CA
and Allendale NJ PCT is cur-
rently working with Intrexon and
Fibrocell on connective tissue
treatments and with the United
K ingdomrsquos Adapt immune on
oncology treatments
A new CEO David Mazzo with
a doctorate in analytical chemis-
try and experience running both
private and public international
biopharma companies assumed
NeoStemrsquos leadership in January
He sees no conflict between grow-
ing a pipeline and a contract man-
ufacturing business
ldquoWe are not trying to be two
di f ferent companies and we
do not see the two competing
with each otherrdquo says Mazzo
in an interview with BioPharm
Inte rnat ionalrsquos s i ster publ ica-
tion Pharmaceutical Technology
during his second week on the
job ldquoInstead there is a symbi-
otic relationship between themrdquo
As he sees it the companyrsquos
track record in developing prod-
ucts should attract more spon-
sors ldquoProblems in development
usually occur at the interfaces
Our unique experience of having
lsquodone that beforersquo should be help-
fulrdquo he says
In January PCT entered a
partnership with Invetech an
equipment design firm based in
Australia with offices in San Diego
to develop automated equipment
for cell therapy manufacturing Fig
ur
e 1
is
co
ur
te
sy
oF
in
ve
te
ch
Figure 1 Part of an automated solution being developed by neostem and invetech Automating processes is key to reducing costs
wwwbiopharminternationalcom June 2015 BioPharm International eBook 29
Outsourcing Resources Cell Therapy
The two companies have already
been working together for a year
now honing the design and speci-
fications for the instrumentation
says NeoStemrsquos Chief Scientific
Officer (CSO) Robert Preti The
equipment will tackle cell therapyrsquos
most challenging side autologous
treatments where the manufactur-
ing lot is the patient dose adminis-
tered at the patientrsquos bedside
As Preti notes there really isnrsquot
much available today in the way
of automated equipment for cell
therapy especially on the autolo-
gous side The equipment will sep-
arate and wash cells among other
functions
labor-intensive
proCesses aDD Cost
So far Preti says the company
is evaluating the evolving equip-
ment in NeoStemrsquos own manu-
facturing efforts ldquoOne of the
largest commercial bottlenecks
is the heavy labor required by
processes especially for patient-
specific uses where one batch is
one patientrdquo
The cost of goods i s ver y
high Preti says ldquoSuccess long-
term will require a whole new
approach to development The
goal is to provide high qual-
ity and sustainabilityrdquo he says
Removing manual operat ions
and human error from the pro-
cess will be crucial
Invetech has been work ing
on cell therapy process scale-up
automation for more than 10
years and has successfully com-
pleted projects in North America
Europe and Asia for companies
that include Argos Therapeutics
Aa s t rom CCR M Hu mac y te
Innovacell Janssen kSep Systems
MolMed Organovo and ViaCyte
accord ing to R ichard Grant
global VP of the companyrsquos bio-
pharma operations who has been
with the company for more than
14 years
ldquoThe goal is to develop a mix
of equipment and manufactur-
ing st rateg ies that maximize
quality scalability and sustain-
ability with an eye toward cost-
effect iveness and commercial
viabilityrdquo Grant says Invetechrsquos
solutions typically tailor a mix of
OEM and customized equipment
to the clientrsquos processes The com-
pany recently commercialized
equipment used to manufacture
Janssenrsquos macular degeneration
treatment
Costs of current manufactur-
ing processes for both autologous
and allogeneic therapies are dif-
ficult to peg Last year experts
at University College London
attempted to pinpoint the cost and
overall economics of allogeneic
cell therapy using single-use tech-
nologies (2)
What is clear for both alloge-
neic and autologous systems is
that cell therapy development
Table I Manufacturing scenarios for cell therapies
Attributes Off-the-shelf therapiesPatient-specifc
therapies
Source material Always allogeneic Autologous or matched allogeneic
Batch size Many patients One patient
Business model Similar to pharmabiopharma New
Scaling Scale up (Increased lot size) Scale out (Increased number of lots)
Comparability vs scale Higher concern Lower concern
Manufacturing design drivers
Mission critical success + +++
Optimized process yield +++ +
Dimensional efficiency ++ +-
Integration +- ++
Automation + ++
source invetech
Table II Measuring comparability risk
Risk level Example Timing
None Automated sterility test Before biologics license application
Low Change in process unit op and cell journey is the same
Before 50 accrual in pivotal trials
Medium Change in process unit op and cell journey is similar
Before initiation of pivotal clinical trials
High Change in process unit op and the cell journey is matched
Some Phase II clinical data
source invetech
30 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Cell Therapy
and manufacturing costs are cur-
rently prohibitive ldquoThe starting
points can vary dramaticallyrdquo
Grant says He recalls one cus-
tomer whose autologous process
ran to $80000 per patient in early
stage clinical trials Automation
he says could reduce costs by
40ndash90 depending on the ther-
apy involved
DevelopMent by Design
But before one can automate any
process one must understand it
NeoStem and PCT like a growing
number of companies are taking
the principle of quality by design
(QbD) to heart in their work
Mazzo arguably one of few
life-science company CEOs to
even articulate the QbD concept
explains that the company has
gone a step further and broadened
the International Conference on
Harmonization guidances adopted
by FDA into ldquodevelopment by
designrdquo (DbD)
ldquoWe say first consider the end-
point then take process as is and
understand its unit operations
Develop inputs and outputs and
discrete steps and define the pro-
cess in a way that promotes under-
standingrdquo he says
ldquoThis is challenging given prod-
uct complexity but there is a need
to understand the mechanism of
action very well so you put each
process in this overall envelope
of DbD and consider the cost of
goods scalability and sustainabil-
ityrdquo Preti adds ldquoYou consider the
process from the end only this
time each batch is an individual
patientrdquo
The critical part is defining and
measuring process needs he says
ldquoProduct definition is very impor-
tant particularly the quality target
product profilerdquo explains Brian
Hampson VP of manufacturing
development and engineering at
PCT in an Oct 22 2014 webcast
for the International Society for
Cell Therapy (3)
have the enD in MinD
Such t h ings a s for mulat ion
issues dosage potency impu-
rities residuals and microbial
assurance need to be thought out
clearly from the start Hampson
says as well as indications for
use geographic market projec-
tions cost-of-goods targets and
IP issues
The profile needs to be a liv-
ing document that changes as the
product takes shape Hampson
says There is a tendency for peo-
ple in the industry to ignore the
product profile until they have
all the answers says Hampson
ldquoInstead it needs to be developed
really early even when you donrsquot
have all or even many of the
answers hellip you can leave them
as blanks and continue to review
add to and updaterdquo
The result is not only a tool for
better understanding the prod-
uct process and mechanism of
action but a communication tool
for stakeholders
When to start DbD for cell ther-
apies ldquoThe temptation is to begin
later in the game when you need
reasonable COGS and you need
to be sure of sustainable manu-
facturingrdquo says Hampson ldquoThe
key thing is comparability and
anticipating its implications early
in the clinical program It needs
to be flexible at the early stagesrdquo
Hampson says ldquoBut as you near
Phase III you need to lock in your
equipment evolves
In the bioreactor area there is great interest in moving from 2-D to 3-D processing to enable the processing of the cell volumes required something that companies such as Israelrsquos Pluristem have been doing for some time
Equipment designer Instrom is partnering with companies including BRTI Life Sciences to focus on 3-D cell matrix technologies developed by Dr John Brekke EMD Millipore has been partnering with PharmaCell BV to use its Mobius bioreactor platform to expand and harvest HepRG cells GE Sciences is also evaluating Wave and other systems and set up a center of excellence in Wales recently
In other equipment areas Pall Corp has been partnering with CMDG LLC on cord blood processing technology Following are some of the equipment manufacturers and systems applied in cell therapy development and manufacturing
bull Beckman Coulter bull Corning Cell Stacks and Cell Cube
bull EMD Millipore bull GE Biosciences
bull Thermo Scientificrsquos Nunc Cell Factories bull Pall Corp
wwwbiopharminternationalcom June 2015 BioPharm International eBook 31
Outsourcing Resources Cell Therapy
processrdquo Table II summarizes issues
and points where changes will be
easier
Thus Hampson suggests that
companies whether work ing
with CDMOs or in house think
through such issues as cost of
goods scale and sustainabil-
ity much earlier than they typi-
cally do today ldquoYou donrsquot need to
spend money on these issues but
you do need to think about themrdquo
Hampson says ldquoQuality must be
a key issue even at Phase II trials
and early action pays off laterrdquo
In addition he suggests that
companies th ink about the
e nt i r e p r o c e s s c o mp r e he n -
sively ldquoThere is often a tendency
to focus on the core processing
stepsrdquo Hampson says ldquoBut you
really need to think about every-
thing from collection of mate-
rial through to administration
of product to the patient and all
steps in betweenrdquo
For ce l l therapies d ispos -
able equipment and closed pro-
cesses can be an effective way to
reduce costs and improve quality
and compliance ldquoThey can allow
you to isolate different processes
so that they can share a Class
100000 cleanroom environmentrdquo
Hampson says
ldquoInvesting in automated informa-
tion management can also pay offrdquo
he says ldquowhere an electronic batch
record system that is fully validated
can enable release-by-exception
reducing error documentation
time and overall quality assurance
costsrdquo Hampson says
In addition he notes it is
important to look at costs compre-
hensively an increase in one cost
can for example reduce overhead
improve process sustainability and
cost of goods Table III outlines the
issues
regulations evolve
Cell therapy is still a new area
for regulators and as Preti says
some guidelines are clear and oth-
ers arenrsquot ldquoDevelopment by design
is needed throughout the pro-
cess but the piece we still struggle
with the most is mode of action
(MOA) and product characteriza-
tion Regulatory agencies under-
stand that it is difficult to pinpoint
MOArdquo
Preti emphasizes the importance
of working with regulators ldquoYou
can be in a position to inform and
influence regulations as products
are developedrdquo he says
For any company moving into
this brave new world top-level ques-
tions are needed Preti says empha-
sizing the following ldquoDo you have
an understanding of scale Can you
scale up from very small Can you
characterize the process and control
it for reliability and qualityrdquo
In the stem cell area in particu-
lar this is crucial Preti said since
the product relies heavily on the
process ldquoManufacturing can be
thought of as patient administra-
tion It cannot be separated in
the same way that it can for tra-
ditional medicinesrdquo For contract
suppliers he adds demonstrated
success will be important and
sponsors should consider whether
a prospective partner will be able
to stay with them for the long run
referenCes 1 P Hourd et al Regulatory Challenges
for the Manufacture and Scale-
Out of Autologous Cell Therapies
Massachusetts General Hospital
(Cambridge MA 2013)
2 S Farid et al Biotechnol Bioeng
111(1) 69-83 (January 2014)
3 R Grant Building Deliverable Cell
Therapeutics A Methodical Approach
to Manufacturing Development
(Webinar Oct 22 2014) bp
source invetech
Justifcation driversChange in cost
doseDevelopment
estimate
Unit Op Ref
Change decription
Comparability risk
Quality COGs Scale Sustainability LaborMaterials outplant
Cost Time
P-2 Process change 1 Medium X X darr $ $$$ TT
P-3 Process change 2 High X X X darr $$$ $$$$ TTT
P-4 Process change 3 Low X X darr $$ $$ TTT
P-2 Process change 4 Low X $$ T
QC-4 In-house QC test None X TT
QA-1Electronic Batch
RecordNone X X X
darr $$$$
TTTT
Table III Process changes timing and comparability risks cogs is cost of goods Qc is quality control
32 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Intellectual Property
Protecting Intellectual Property
in Engagements with CMOs
Important IP contractual provisions should be included when working with CMOs
Jennifer L CoLLins
Biotechnology and pharmaceutical companies
often engage contract CMOs to assist with
the development of their drugs This type
of arrangement naturally involves the devel-
opment of intellectual property (IP) so it is
important for both the CMO and the sponsor to iden-
tify pre-existing intellectual property and also define
how rights to new IP will be allocated protected and
enforced by and between the companies
If the arrangement with the CMO is a traditional fee-
for-service arrangement where the company pays the
CMO service fees to perform development work on its
behalf then generally all new IP (other than improve-
ments to the CMOrsquos manufacturing technology) will be
owned by the biotechnology or pharmaceutical com-
pany that engaged the CMO On the other hand if the
arrangement between the CMO and the biotechnology
or pharmaceutical company is more of a collaborative
arrangement where both parties share the costs of devel-
opment as well as any profits from the commercializa-
tion then IP concerns become much more complicated
In that case in addition to describing which party will
Jennifer L CoLLins is a technology and licensing attorney with Morningstar Law Group jcollinsmorningstarlawgroupcom
Fa
na
tic S
tud
ioG
ett
y Im
ag
es
wwwbiopharminternationalcom June 2015 BioPharm International eBook 33
Outsourcing Resources Intellectual Property
own the new IP the contract should
sort out which party will be respon-
sible for obtaining and maintaining
patents on the new IP controlling
litigation against infringers and
defending the IP against challenges
In addition the parties should agree
upfront on how the IP may be used
by each party following various ter-
mination events so that the parties
are not left fighting about such mat-
ters at a time when they may not be
inclined to agree to anything
In both arrangements without
specific contractual provisions to
define and protect the new IP a
biotechnology company or phar-
maceutical company that uses a
CMO for development is at risk of
losing control of and possibly own-
ership of important improvements
to its drugs This article discusses
IP contractual provisions that
should be included in each type of
arrangement
Fee-For-service
development work
Traditionally CMOs perform fee-for-
service development work where
a biotechnology or pharmaceutical
company engages the CMO to per-
form this work for a fixed fee In this
type of arrangement the CMO is a
service provider and typically takes
no ownership interest in the drug or
product that is being developed or
in improvements to an existing drug
or product that is being tested or
developed The contract governing
the relationship nevertheless must
be clear about the IP rights that are
owned and licensed by each party
If the contract does not provide
for proper assignments of IP to the
biotechnology or pharmaceutical
company then it is likely that the
CMO will own any improvements
or other inventions that it develops
in the performance of the develop-
ment services even if that is not the
intent of the parties
Without signed written contracts
that state otherwise under United
States patent law the inventor of
a patentable invention or improve-
ment will own the invention or
improvement even if the inventor
is engaged to develop the invention
or the improvement for a customer
or other third party To ensure
that the biotechnology company or
pharmaceutical company obtains
all the patent and other IP rights
in developments inventions and
improvements created in the per-
formance of services by the CMO
the governing contract between the
biotechnology company or phar-
maceutical company and the CMO
must include written present assign-
ments of those IP rights from the
CMO to the company Indeed based
on recent cases it is crucial that the
assignment clause in the contract
be a ldquopresentrdquo assignment mean-
ing that it must state specifically
that the CMO ldquohereby assignshelliprdquo
rather than a clause stating that the
CMO ldquoagrees to assignrdquo rights in the
future Otherwise the contract will
be interpreted as a promise to assign
rights in the future and the bio
pharmaceutical company will have
to go back to the CMO at some later
point in time for a separate writ-
ten assignment of rights to obtain
all patent and other IP rights in the
developments
While it sounds logical and
straightforward that the CMO
would assign all inventions created
in the development work to its cus-
tomer it is not always that simple
in practice What if the CMO devel-
ops an improvement to its manu-
facturing process in the course of
the development work Most CMOs
will want to reserve ownership of
any improvements to the CMOrsquos
existing IP and confidential infor-
mation This position is not unrea-
sonable as long as the customer
ultimately has the rights it needs in
all new inventions including those
owned by the CMO to take the drug
forward through further develop-
ment and commercialization One
must sort out IP allocation by sub-
ject matter To achieve this allo-
cation the development contract
typically will state that each party
retains ownership of all IP that it
owns as of the date of the contract
(all pre-existing intellectual prop-
erty) It will also state that the cus-
tomer owns its proprietary drug
and all improvements to the drug
or the customerrsquos confidential infor-
mation developed by either or both
parties The development contract
also may state more generally that
the customer owns all inventions
improvements and IP rights related
to the customerrsquos drug With respect
to the CMO and its IP the develop-
ment contract may state that the
CMO owns all improvements to the
CMOrsquos manufacturing process and
to its other pre-existing intellectual
property Again this reservation is
not unreasonable The customer
however should determine whether
it requires access to those improve-
ments or inventions to complete the
development and commercialization
of its drug If such access is necessary
the customer should either negotiate
a license (which may be royalty-free
or royalty-based depending on the
circumstances) to use such improve-
ments or inventions to develop and
commercialize the drug or the cus-
tomer should negotiate the terms
under which the CMO will continue
to use the improvements or inven-
tions to perform development work
andor manufacture the drug for the
customer
In the fee-for-service arrange-
ment the assignment and licensing
of IP rights in new inventions and
improvements is the key intellectual
property issue Intellectual property
considerations become much more
complicated when the biotechnol-
34 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Intellectual Property
ogy or pharmaceutical company
partners with a CMO in the devel-
opment of a new drug or product
where the parties share development
costs and profits from commercial-
ization of the drug or product
cmo as collaborator
Although not as common as the
fee-for-service arrangement a CMO
may partner with a biotechnology
or pharmaceutical company in the
development and commercialization
of a drug or product Generally both
parties are bringing pre-existing IP
to the collaboration such as a drug
from a biopharmaceutical com-
pany and proprietary drug delivery
technology from the CMO In this
scenario the CMO is taking a long-
term interest and often a part-own-
ership interest in the success of the
drug product
Instead of getting paid an hourly
rate or fixed fee for development
work on the drug product the CMO
may share the cost of development
work with the biotechnology or
pharmaceutical partner in exchange
for a share of the profits when the
drug or product is commercialized
Other costs involved in the develop-
ment and commercialization of the
drug or product that may be shared
include the cost of patent prosecu-
tion and the cost of patent litigation
if the drug product is challenged or
if it is misappropriated or infringed
To secure its interest in the profits
from commercialization of the drug
product the CMO may want to take
an ownership interest in the intel-
lectual property rights in the drug
product All of these issues must be
carefully addressed in the develop-
ment contract to avoid both finan-
cial and IP disputes
As with the fee-for-serv ice
arrangement the parties must
allocate ownership of intellectual
property rights pertaining to the
drug product to be commercialized
These rights include both pre-exist-
ing IP rights and new inventions
and improvements developed in
the course of the development con-
tract As with the fee-for-service
arrangement the parties typically
will retain rights to their respec-
tive pre-existing IP Intellectual
property rights to new inventions
and improvements however may
be shared by giving each party a
co-ownership interest in the intel-
lectual property Alternatively such
rights may be allocated by inventor-
ship with each party taking owner-
ship of developments that it invents
and with the parties jointly own-
ing jointly developed inventions
As another alternative the IP rights
may be allocated by subject matter
as in the fee-for-service arrangement
with each party owning improve-
ments and inventions related to its
pre-existing IP regardless of which
party invents those improvements
and inventions
Depending on how the pat-
ent applications are drafted the
IP rights may be ldquosliced and dicedrdquo
more finely One party for example
could own patent rights for a drug
product for one indication while the
other party owns patent rights for
the same drug product for another
indication Decisions about how
to allocate the IP rights should be
made in consultation with intel-
lectual property counsel and must
take into account the manner in
which the drug will be commercial-
ized If one party for example is
to commercialize the product in
North America and Europe and
the other party is to commercialize
the product in the rest of the world
then either the patent ownership
should be allocated by territory or
the development contract should
include exclusive cross-licenses of
each partyrsquos rights in all the intel-
lectual property necessary to com-
mercialize the product with the first
party having an exclusive license to
commercialize the product in North
America and Europe and the second
party having an exclusive license to
commercialize the product in the
rest of the world
If the parties are going to share
ownership of the IP related to the
drug product then the develop-
ment contract also should specify
which party is responsible for pros-
ecuting and maintaining patents
on the drug product Regardless of
which party is responsible for patent
prosecution and maintenance the
other party should be consulted and
involved in key decisions regard-
ing patent prosecution and main-
tenance Unless there are multiple
patents for different indications that
will be commercialized exclusively
by one party and unless each party
has exclusive rights to commercial-
ize the drug product in particular
geographic areas it generally makes
sense for one party to take the pri-
mary responsibility for patent pros-
ecution and maintenance globally
with the other party consulting and
sharing in the cost of the prosecu-
tion and maintenance in accordance
with the profit sharing The party
that is not responsible for prosecu-
tion and maintenance should have
a contractual right to approve patent
counsel and review and approve pat-
ent filings office action responses
and other communications with
patent registries before they are filed
or submitted so that the parties
agree on the proper prosecution and
maintenance strategy
Likewise the development con-
tract should allocate the rights and
responsibilities for asserting and
defending the patents pertaining to
the product in litigation Often these
rights and responsibilities are allo-
cated by territory according to com-
mercialization rights If one party
for example has the exclusive right
to commercialize the drug product
wwwbiopharminternationalcom June 2015 BioPharm International eBook 35
Outsourcing Resources Intellectual Property
in the US then that party would
have the first right and responsibil-
ity to assert the patents on the drug
product against potential infringers
and defend the patents on the drug
product against infringement claims
in the US Likewise if one party has
the exclusive right to commercial-
ize the drug product for a particular
indication then that party would
have the first right and responsibility
to assert or defend the patents per-
taining to the product with respect
to that indication Both scenarios
can present challenges First some
courts will not recognize an exclu-
sive licensee as having standing to
assert a patent That court might
only allow the owner of the patent
(and not the exclusive licensee) to
bring a lawsuit asserting the patent
It is crucial therefore that contrac-
tual provisions relating to patent liti-
gation require the party that owns
the patent to cooperate in any litiga-
tion and to join the suit as a party if
necessary
Another potential problem is that
any litigation that asserts the pat-
ent is likely to draw a counterclaim
that the patent is invalid thus put-
ting the patent itself at risk of invali-
dation While one party might be
threatened by a potential infringer
in a particular market or for a partic-
ular indication and therefore might
want to assert the patent against the
potential infringer the other party
might not want to put the patent at
risk as to other markets and other
indications For these reasons the
contractual provisions pertaining
to patent litigation must be care-
fully drafted in consultation with
intellectual property counsel who
understands standing issues and
the potential areas for dispute The
contractual provisions also should
include dispute resolution provi-
sions for situations when the parties
do not agree on whether a patent
should be asserted
Finally while the parties may
want and expect their relationship
to continue for the full term of the
patents and the development con-
tract the parties must carefully
consider the IP ramifications of an
early termination of the develop-
ment contract and the relationship
particularly if the development con-
tract is terminated for breach If the
parties are sharing in the ownership
commercialization and profits gen-
erated by the drug product devel-
oped by the collaboration then
all of that must be unwound upon
termination The development
contract should be as specific as
possible with respect to the effect of
various types of termination on the
intellectual property and contin-
ued commercialization of the drug
product In particular the parties
may agree that if the development
contract is terminated due to breach
by one party then that breaching
party must relinquish and transfer
all of its rights with respect to the
drug product to the other party to
allow the non-breaching party to
continue the commercialization of
the drug product post-termination
Whether the necessary rights are
assigned or licensed whether the
terminated party should receive a
royalty for the transfer or license of
those rights and what if any pre-
existing IP is licensed to enable the
non-breaching party to continue
commercializing the drug product
are all key factors for negotiation
The development contract should
also address other types of termi-
nation such as termination for
insolvency and termination with-
out cause (ie if one party decides
it no longer wants to commercial-
ize the drug product) In each case
the effect of termination on the IP
rights should be carefully analyzed
and a competent IP counsel should
carefully draft post-termination
assignments and licenses
conclusion
While IP lawyers are not equipped
with crystal balls they can be
extremely helpful in analyzing par-
ticular development commercializa-
tion and post-termination scenarios
all of which affect IP in a drug devel-
opment arrangement Contractual
provisions related to IP must be
carefully drafted to align with the
strategic business objectives of any
relationship and particularly one
whose purpose is the development
and commercialization of intellec-
tual property Without a clear con-
tract each collaborator is at risk of
losing important rights bp
Ad Index
AJINOMOTO ALTHEA 21
AVID BIOSERVICES INC 15
CYTOVANCE BIOLOGICS 27
EMERGENT BIOSOLUTIONS 13
EUROFINS LANCASTER LABORATORIES 7
SAFC BIOSCIENCES SIGMA ALDRICH 17
THERMO FISHER SCIENTIFIC 23
TOSOH BIOSCIENCE 11
WATERS CORP 3
Company Page
![Page 15: OUOURT NG I C RESOURCESfiles.pharmtech.com/alfresco_images/pharma/2019/03/08/... · 2019-07-22 · VIDEO INTERVIEW Biologics Development and Manufacturing Trends: Part I ... Media](https://reader034.vdocuments.us/reader034/viewer/2022050113/5f4aca886c0d6724390eb040/html5/thumbnails/15.jpg)
YOUR PARTNER FROM CONCEPT TO COMMERCIAL
1
42
5
3CELL LINE DEVELOPMENT
bull Cell line development amp selection
bull Cell line characterization amp optimization
bull Subcloning
bull Suspension adaptation
PROCESS DEVELOPMENT
bull Upstream development amp optimization
bull Media optimization feeding strategyamp design including DoE approach
bull Downstream development ampoptimization
bull Process optimizationprocess scale-up
bull Viral inactivationremoval study design
bull Formulation development amp screening
bull Up to 100L controlled bioreactors
bull Process validation
ANALYTICAL METHODS DEVELOPMENT
bull Development feasibility optimizationtransfer qualification amp validation of methods
bull Identity purity potency safety ampcharacterization
cGMP BIOMANUFACTURING
bull Commercially-licensed facility
bull Flexible manufacturing capabilities
bull Stainless steel amp single-use systemsfrom 100L-1000L
bull FDA EU amp ANVISA inspected
QUALITY AND REGULATORY SERVICES
bull Regulatory strategy amp submissions
bull cGMP CMC Section 7 support
bull In-process amp release testing
bull Stability testing
bull Reference standard generation
For more information please visit us at wwwavidbiocom or
e-mail businessdevelopmentavidbiocom
THE AVID
ADVANTAGE
16 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources CROCMO Viewpoints
clearance time is reduced by sev-
eral days
R o g e r s ( S G S L i f e S c i e n c e
Services) As an analytical ser-
vice provider SGS is constantly
in search of means to improve
its laboratory efficiencies partic-
ularly those that enhance turn-
around time without adversely
effecting quality With this in
mind substitution of HPLC for
UPLC rapid microbiolog ica l
screening methods and invest-
ment in automated approaches to
complex analytical problems such
as protein sequencing are now
being used within the SGS labora-
tory network
Chambers (SGS) From a CRO
point of view the main produc-
tivity improvements in analytics
have been from higher through-
put systems and data analysis The
move to these faster systems with
semiautomated data processing has
allowed us to improve turnaround
times which are passed on to cli-
ents in terms who win on faster
to market times and faster gono
decisions
BioPharm What additional tech-
nology improvements are needed
to improve the efficiency of bio-
processing
Lorimer (Patheon Biologics)
Process analytical technology
(PAT) for continuous monitoring of
bioprocesses is helping reduce the
variability on biopharmaceutical
manufacturing
Also biopharmaceutical devel-
opment and process validation
have been accelerated by the use
of mini-bioreactor systems which
enable a large amount of process
development data to be gener-
ated within a very short timeline
These multi-bioreactor systems
can reduce process develop -
ment timelines by months when
applied to early-stage or late-stage
bioprocesses
Rogers (SGS Life Science Services)
The development of many tech-
nologies follows a common path
from academia to commercial
application and nowhere is this
more evident than in the field of
bioprocessing In almost all exam-
ples the key to this progression
lies in the ability to simplify opera-
tional aspects of the technology
and improve throughput This has
in the past been clearly demon-
strated in for example the field of
mass spectrometry and is currently
evolving with techniques involved
in biophysical characterization
BioPharm What is the greatest
technical challenge facing biophar-
maceutical companies today
Hartzel (Catalent Pharma Solutions)
Cost to manufacture will continue
to be a major challenge for the
industry especially with the rise
of biosimilars and market pressures
to drive down the cost of medi-
cines However the products that
are coming to market are more
targeted which leads to smaller
batch sizes This is counter to the
manufacturing adage of being able
to leverage economies of scale to
drive out costs hence the need to
focus on alternatives technologies
and innovation to reduce the man-
ufacturing costs versus economies
of scale
Lively (PPD) Application of ana-
lytical techniques to better char-
acterize innovator and biosimilar
or follow-on products by physico-
chemical and functional methods
are required and will continue to
be driven by the complexity of
biologics development For exam-
ple changes in formulations may
cause different leachable profiles
requiring increasing emphasis on
extractablesleachables techniques
(ie high-resolution MS) to sup-
port characterization of formu-
lation effects identification of
degradation and impurities and
determination of their potential
impact through application of
potency bioassays
Lorimer (Patheon Biologics) Most
of the technical challenges for
manufacturing have been over-
come and the technologies for
development and manufactur-
ing have been widely adopted
Perhaps the greatest challenge is in
clinical development of novel and
originator molecules where in-vitro
model systems are still not a great
predictor of clinical performance
Rogers (SGS Life Science Services)
To highlight one technical chal-
lenge above all others in todayrsquos
biopharmaceutical industry is
very difficult The complexity of
biotherapeutics often results in
considerable technical difficul-
ties as for example in the area
of impurities recognition of host-
cell proteins (HCPs) and identi-
fication of structural variants at
trace levels are certainly high on
the list of technical concerns The
necessary inclusion of relatively
elaborate analytical techniques
such as sedimentation velocity
analytical ultracentrifugation (SVndash
AUC) within a traditional qual-
ity control release environment is
also not without problems
BioPharm What are the pros-
pects for continuous manufac-
turing to be firmly established in
bioprocessing What are the road-
blocks to implementation
Lorimer (Patheon Biologics)
Continuous product ion f rom
mammalian cell cultures has been
operated in perfusion bioreactors
for many years The main road-
block for continuous processing is
downstream processing of proteins
which currently demands discrete
and distinct unit operations for
removal of impurities removal
of contaminants concentration
of the products and formulation
each in separate controlled steps
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NEXT GENERATION MEDIA PLATFORM
18 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources CROCMO Viewpoints
and which are not currently ame-
nable to continuous processing
the Rise of biosimilaRs
BioPharm What impact w i l l
biosimilar drugs have on bio-
pharma businesses bioprocessing
approaches and the contract ser-
vices market
Rogers (SGS Life Science Services)
The European biopharma land-
scape has already experienced
impact of the biosimilar drug mar-
ket leading to rapid expansion of
traditional small molecule generic
manufactures into the bio arena
Recent FDA approval of the Sandoz
biosimilar Zarixo may be the seed
for similar changes in the US pro-
viding a potential new line of busi-
ness for established pharmaceutical
companies Contract service pro-
viders such as SGS who already
have considerable experience with
biosimilars are able to offer exper-
tise to businesses new to this mar-
ket and will no doubt benefit from
such expansion in the US
Lively (PPD) Increased invest-
ment in biosimilars is driving
interest in improving and stream-
lining the development processes
as well as the sensitivity and scope
of characterization assays used to
compare biosimilars and innova-
tor drugs The expanding capac-
ity needs result in partnerships
between clients and their contrac-
tors with the systems experience
and expertise to achieve the qual-
ity and speed required while meet-
ing all regulatory expectations for
product approval
Chambers (SGS) With nearly
20 years exper ience perform-
ing biosimilar analysis the big-
gest impact had been the massive
increase in the characterization
needed for biosimilars compared
to innovators (although higher
standards are now needed for new
innovators too) This has resulted
CMOs Add Capabilities
Consolidation in the contract development and manufacturing market has resulted in new capabilities and facility expansions
In May 2015 CMC Biologics announced that it is expanding its Copenhagen Denmark facility to increase its manufacturing capacity through the installation of six 2000-L bioreactors The bioreactors can be run singly or in groups simultaneously or sequentially and are part of the companyrsquos signature Bioreactor 6Pack single-use program The Copenhagen installation will begin initial GMP production in November 2015 and will feature three bioreactors to start Three bioreactors will be added at a later date to complete the configuration Meanwhile the Bioreactor 6Pack at CMCrsquos Seattle facility will complete its first GMP run in mid-2015 and will be ready for commercial launch by the end of the year Through its recent expansions CMC plans to expand its global capacity by more than 30000 liters in the United States and Europe
Also in May 2015 SAFC announced an expansion to its St Louis MO facility to support the commercial-scale production of antibody-drug conjugates The facility which is expected to be online and operational in the third quarter of 2015 was designed to meet SafeBridge category 4 compound handling requirements for highly active or cytotoxic compounds The expansion of an existing Carlsbad CA location will enable SAFC to offer fillfinish capabilities of viral products to its clients in the gene therapy viral vaccine and immunotherapy sectors
Rentschler announced in March 2015 that a 2000-L bioreactor that the company commissioned and built in six months is up and running The bioreactor will be integrated into existing manufacturing suites containing two 1000-L single-use bioreactors according to a company statement The companyrsquos twin bioreactor systemmdashdesigned for running two main bioreactors in parallel with one shared downstream processing unitmdashwill be functional by 2017 The twin system is estimated to double the companyrsquos production capacities for cell culture-derived proteins
In December 2014 FUJIFILM Diosynth Biotechnologies USA (FDBU) acquired Kalon Biotherapeutics adding viral and cell-culture vaccine expertise and capabilities In other activity FDBU started construction of a three-story 62000-ft2 facility in Research Triangle Park NC in January 2015 to house the companyrsquos process and analytical research and development process sciences and stability groups The expected completion date is Q4 2015
In September 2014 PCI a provider of packaging services acquired Biotec Services International a provider of clinical-trial services and temperature-controlled pharmaceutical services headquartered in Bridgend Wales UK The addition expanded PCIrsquos presence in the European Union and added packaging storage and distribution capacity and consultative services for clinical-trial supplies In January 2015 Biotec announced the validation of its clinical supply facility expansion which added almost 50 to the companyrsquos clinical trial materials handling capacity
wwwbiopharminternationalcom June 2015 BioPharm International eBook 19
Outsourcing Resources CROCMO Viewpoints
in challenges in data handling
interpretation and data presenta-
tion Biosimilars have also caused
the re-emergence of orthogonal
techniques like size exclusion
chromatographyndashmulti-angle laser
light scattering (SEC-MALL) and
SV-AUC for aggregation and cir-
cular dichroism (CD) and fourier
transform infrared spectroscopy
(FTIR) for higher-order structure
as critical analyses to understand
and compare and detect subtle
higher-order structural differences
between innovator and biosimilar
samples
Hartzel (Catalent Pharma Solutions)
The rise of biosimilar drugs will
dawn the next generation of bio-
logic manufacturing and force
the industry to look at new ways
of manufacturing to drive down
costs Therefore the industry will
seek new manufacturing partners
with strong technical expertise to
drive out costs through innovation
and operational excellence
Lorimer (Patheon Biologics)
Genera l ly b ios imi la r d r ugs
will encourage competitiveness
within the biopharma sector
Biomanufacturers expect increased
pressure on cost of goods and
pricing Biopharmaceutical con-
tract service providers with a flex-
ible multi-product operation and
proven track record in the indus-
try are well placed to ensure care-
ful control of manufacturing costs
and product quality Processing
approaches wonrsquot change in terms
of technology but there will be a
greater emphasis on operational
excellence to reduce costly inef-
ficiencies and improve yields from
bioprocesses As more biosimilars
come to the forefront and as the
industry trend for outsourcing
continues increasing operational
flexibility while maintaining the
highest quality standards will be
the keys to success
business challenges
BioPharm What is the greatest
business challenge facing biophar-
maceutical companies today
Lively (PPD) As with all phar-
maceutical drug development the
greatest challenge is getting new
life-changing and potentially life-
saving drug candidates to mar-
ket Biopharmaceuticals face more
challenges than traditional small-
molecule drug products because
the science of characterization
of such biologic drugs is rapidly
evolving along with the regulatory
landscape Those companies that
are best able to successfully char-
acterize and differentiate innovator
and biosimilar products for safety
and efficacy will have the greatest
opportunity to benefit
the knowledge gap
BioPharm In what areas do you
see knowledge or expertise gaps in
current biopharmaceutical compa-
nies Why do these gaps exist
Lorimer (Patheon Biologics) There
is a gap in translating good sci-
ence to industrial applications of
technologies that provide for reli-
able efficient cost effective man-
ufacturing at commercial scale
Maintaining a focus during early
development on eventual commer-
cial manufacturing requirements
while balancing limited develop-
ment resources requires a broad
base of coordinated organiza-
tional skillsets and a disciplined
approach
Hartzel (Catalent Pharma Solutions)
Devicedelivery expertise is an
area that has a potential gap For
biologics the historic default con-
tainer closure has been a tradi-
tional glass vial As the healthcare
industry seeks ways to improve
patient care and reduce costs the
delivery to the patient needs to
adopt new technologies and this
is why we have seen a rise of pre-
filled syringes and autoinjectors
These technologies will continue
to evolve and so will the demand
for devicedelivery experts
Lively (PPD) One of the chal-
lenges we see is the various levels
of knowledge and expertise that
exist between biopharmaceutical
RampD and the testing and regula-
tory industries That differential is
impacting those industriesrsquo ability
to fully consider and effectively
implement expectations and guid-
ance for physicochemical and
functional characterization expec-
tations of biologic drugs
Lorimer (Patheon Biologics) The
commercial biopharmaceutical
industry demands global sourc-
ing of materials services supply
and ultimately distribution to each
patient This requires a robust inte-
grated supply chain to deliver high
value products to patients on-time
and at the right quality Doing this
reliably and efficiently with long
production lead times and uncer-
tain market sales forecasts is an
industry wide challenge
Speed-to-market remains a key
challenge to the development of
biopharmaceuticals Speedy first-
time-in-man clinical trials can be
a major hurdle for small biotech
companies and large pharma alike
Rogers (SGS Life Science Services)
I believe there continues to be a
significant problem in the level of
fundamental scientific expertise
within many biopharmaceutical
businesses In part this may be
attributed to the lsquokitrsquo and lsquoblack
boxrsquo approach of many modern
day technologies Due to the
complexity of many biopharma-
ceuticals their development and
success as therapeutics requires a
comprehensive range of scientific
disciplines and expertise which
can be difficult to fully realize
internally particularly for small
and mid-size companies bp
20 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources FillFinish
FillFinish Trends
Automation and disposables continue to reduce human error
Eric s LangEr
Fillfinish operations continue to be domi-
nated by trends in automation and the adop-
tion of single-use equipment But these are
by no means the only factors affecting these
high-value operations according to BioPlan
Associatesrsquo latest biomanufacturing study (1) Fill
finish processes are among the most outsourced
activities in biomanufacturing today and a service
providerrsquos capacity for vialing pre-filled devices
and lyophilization is crucial In a recently pub-
lished whitepaper (2) BioPlan Associates determined
that there is sufficient global in-house capacity
for biologics but the need continues to grow for
greater access to specialized outsourcing competence
Whatrsquos trending is significant improvements in auto-
mation and operations
AutomAtion And single use defining Cmo strAtegy
The top trends today involve automation and devel-
opment of better disposable technologies As part of
the BioPlan study biomanufacturers were asked to
select the trends they believe to be the most impor-
tant in fill and finish today The top three trends
are single-use equipment automation in full isolator
units and facilities becoming multi-product ori-
ented (see Figure 1)
Other important trends were noted including
bull Increased serialization and product labeling for
anti-counterfeiting
Eric s LangEr is president and managing partner at BioPlan Associates Inc elangerbioplanassociatescom tel 3019215979 wwwbioplanassociatescom
Ma
ria T
ou
tou
da
ki
Ge
tty Im
ag
es
WITH ALTHEA YOU HAVE THE POWER TO MAKE
You have the power to make a difference To make new therapeutics that improve quality of life and inspire a healthier world To do this you need a manufacturing partner who embraces your every challenge as its own who shares your unwavering tenacity and dedication from clinical studies through commercial success Thats The Power To Make
PLAY VIDEO
CONTRACT
MANUFACTURING
Q Development
Drug Substance
lj Drug Product
(D Al TH EA I THE POWER TO MAK A MEMBER OF THE AJINOMOTO GROUP
22 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources FillFinish
bull More f i l l f i n i sh fac i l i t ie s
o p e r a t i n g i n d e v e lo p i n g
regions
bull C o m p u t e r - b a s e d v i s u a l
i n s p e c t i o n a r t i f i c i a l
intelligence
bull Use of complex administration
systems
single-use equipment in fillfinish operAtionsT h e a d o p t i o n o f d i s p o s -
ab le e qu ipme nt i n f i l l f i n -
i s h o p e r a t i o n s e l i m i n a t e s
cross-contamination risks and
adds flexibility in process scale
While regulatory rest r ic t ions
may be increased by the adop-
tion of such equipment single-
use appl icat ions a lso enable
contract manufactur ing orga-
nizat ions (CMOs) to increase
fac i l i t y ut i l i z at ion t h rough
multi-product strategies which
can decrease their cost of goods
Experts in the f ield discussed
these trends
Peter Pekos CEO and president
of Dalton Pharma Services a fill
finish CMO says ldquoFor a CMO
disposables can be attractive hellip
For example a disposable isola-
tor can be packed and stored pre-
sterilized for use when needed
a f ixed isolator requires f ixed
space at all times Disposables
also allow a CMO to handle proj-
ects using specific systems for
non-typical project needs such
as disposable isolators without
going to the expense of buying
permanent isolator infrastruc-
ture Disposables do not obviate
the need for technical expertise
hellip so the need for a CMO isnrsquot
really reduced In fact CMOs
with expertise in single-use sys-
tems hellip can make them more
attractiverdquo
Mar t ina Fe r neman cor po -
rate development manager at
Recipharm bel ieves that the
adoption of single-usedispos-
able equipment is now impacting
f i l l and f inish ldquoIn mult ipur-
pose sites the cleaning proce-
dures will become more crucial
to avoid cross contamination
Single-use equipment [also] has
the advantage of shorter lead
t imes and lower procurement
costs Since no cleaning proce-
dure has to be established and
aseptic connections are easier to
be built-up the use of single-
use equipment is not only faster
but also safer than conventional
equipmentrdquo
AutomAtion in full isolAtor unitsW hi le s ing le -use equ ipment
adoption may be one of the hot-
test f i l lf inish trend automa-
tion technologies may actually
be experiencing more rapid rates
of implementation among bio-
manufacturers Indeed sepa-
rate results from BioPlanrsquos 12th
annual study suggest that the
industry wi l l be as l ikely to
implement automation technolo-
gies as they will use single-use
f i l l-f inish devices dur ing the
next 24 months
The removal of human factors
is a key to improving product
quality Isolators and automa-
tion are therefore key drivers
as facilities seek to improve their
i n f r a s t r u c t u r e I n nov a t io n
around equipment and facilities
able to handle multiple products
is going to continue Flexibility
is key as the reduced flexibility
of isolators (and higher cost) in
relation to traditional restricted
access barrier (RAB) systems may
deter some CMOs from adopt-
ing isolators The jury is st i l l
out because the decision fac-
tors between RAB and isolators
are complex and this tends to be
a high-cost decision often left
to the larger f illf inish CMOs
ldquoCMOs will adopt isolator tech-
nologies in their processes to
meet industry needs and reduce
r isk In some cases this wil l
also include disposable isolators
which can offer the benefits of
fixed isolators but add a degree
of f lexibil ity to the manufac-
turerrdquo Pekos notes
According to Ferneman adopt-
ing automat ion in ful l isola-
tor units to reduce the need for
operators is a trend seen in the
CMO market ldquoUse of barr ier
technology (RABS or isolators)
should ensure optimal protec-
t ion of ster i le areas Isolators
bear a better potential to prevent
biocontamination Since the iso-
lator is a closed system a lower
air quality than in RABS systems
can be usedrdquo For freeze-dried
products the RABS system is a
better choice because loading
has to be performed in class AB
surrounding
Fig
ur
e 1
is
co
ur
te
sy
oF
th
e a
ut
ho
r
Figure 1 selected bioprocessing fllfnish trends in 2015
Single-usedisposable equipment
adoption55
36
35Facilities becoming more multi-
product-use oriented
Automation in full isolator units
reduce need for operators
More compounds More accuratelyFaster than ever
Quantitation transformed
Todayrsquos range of possible therapeutic agents from small molecules to peptides to antibodies and
ADCrsquos makes quantitative bioanalysis a challenge Quantify potential therapeutics faster and more
accurately with our new portfolio of LC-MS instruments sample prep solutions and software HRAM
solutions using Thermo Scienti ctrade Orbitraptrade MS enables selectivity for complex molecules while
triple quadrupole MS delivers SRM sensitivity and speed to detect targeted compounds more quickly
Meet todayrsquos challenges with us and together wersquoll transform quantitative bioanalysis
Thermo Scienti ctrade Orbitrap Fusiontrade MSUnprecedented depth of analysis and
throughput for biological discovery
Thermo Scienti ctrade TSQ Quantivatrade MSLeading SRM sensitivity and speed
in a triple quadrupole MSMS
Thermo Scienti ctrade Q Exactivetrade MSScreen and quantify known and unknown targets with HRAM Orbitrap technology
copy 2
014
Ther
mo
Fish
er S
cien
tifi c
Inc
All
right
s re
serv
ed A
ll tr
adem
arks
are
th
e pr
oper
ty o
f The
rmo
Fish
er S
cien
tifi c
and
its
subs
idia
ries
bull Discover more at thermoscienti ccomquan-transformed
24 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources FillFinish
Cmos stAying
AheAd of the Curve
In the whitepaper on in-house
fillfinish operations for recom-
binant therapeutics (2) BioPlan
found relatively low average in-
house capacity utilization rates
for lyophilization (55) pre-filled
devices (58) and vialing (70)
This finding suggests that for fill
finish CMOs the real value isnrsquot
necessarily in providing additional
flexible capacity but rather in posi-
tioning themselves as providing
highly sophisticated and novel
technologies and expertise in fill
finish services Indeed CMOs are
expected to have state-of-the-art
equipment As Pekos notes ldquoCMOs
who implement flexible and inno-
vative technologies to make man-
ufacturing or development more
efficient faster compliant or more
economical all serve to make them
more attractive to customersrdquo
For CMOs that make use of
innovative fillfinish technologies
there appears to be a good deal
of demand Results from BioPlanrsquos
annual studies indicate that fill
finish services are among the most
widely and heavily outsourced
biomanufacturing activities today
and are also among the activities
that biomanufacturers are most
likely to outsource at significantly
higher levels in the future
Biomanufacturers and CMOs are
actively looking to their fillfin-
ish equipment suppliers and are
beginning to demand additional
new technologies innovation and
product development In 2014 for
example when the top areas that
biomanufacturers wanted their
suppliers to focus their develop-
ment efforts on were measured
fillfinish services topped the list
cited by 23 of biomanufacturers
Not only did that figure represent
a substantial increase from years
past (13 in 2011) but it was also
ahead of other services including
upstream and downstream process
development services
Fillfinish will continue
to be an area of
growth for CMOs
There are a number of areas in
which suppliers can add value to
fillfinish innovation according
to industry experts Jim Agalloco
president of Agalloco amp Associates
in Belle Mead NJ says ldquovendors of
equipment and components to fill
finish must continue their roles as
technology leaders Innovation in
this market has always been sup-
plier driven because the operating
firms do not have the necessary
expertise Collaboration between
equipment manufacturers and
component suppliers is essential
for implementation of new con-
tainer systems single-use dispos-
ables and other advancesrdquo
Ronald Malone senior principal
scientist at Novartis Vaccines says
ldquoBlow-fill-seal containerclosure
systems are beneficial for small-
volume parenterals However over-
all cost may still be higher per unit
than traditional vialstopper fill-
ing Vaccines and biologicals can
benefit from single-dose disposable
systems that drive down the cost
of the containerclosure system
This will assist the global supply to
developing world countries where
these products are truly neededrdquo
W B W i e d e r s e i m o f
PharmaBioSource in Wayne PA
states ldquoWe see smaller higher
technical facilities inclusive of dis-
posables (isolators and not RABS)
and advanced aseptic work cell
technology as the wave of the
futurerdquo
WhAt does the future hold
BioPlanrsquos survey data and indus-
try interviews indicate that fill
f inish will continue to be an
area of growth for CMOs that
maintain the required technical
quality and regulatory expertise
in this segment Experts have
taken note of CMOsrsquo introduc-
tion of smaller filling machines
for syringes or vials a trend that
may be in response to the indus-
try-wide move towards smaller-
scale manufactur ing projects
This shift may be accelerated by
the advent of biosimilars which
should provide an increasing
number of projects for fillfin-
ish CMOs although likely on a
smaller scale This increase in
projects could lead to potential
mergers and acquisitions with
some experts noting that fillfin-
ish CMOs are already engaging
in this trend toward larger capac-
ity and global operations
Indeed within the past 18
months a number of acquisi-
tions have occurred including
Pfizerrsquos acquisitions of Hospira
a nd In noPha r ma Pat heonrsquos
mergers in the contract services
space IDT Biolog ika invest-
ments Vet ter invest ing USD
$100 million to upgrade fill-fin-
ish facilities in the United States
a nd Ger ma ny a nd Ba xte r rsquos
investment in German facilities
and numerous others (3)
For CMOs to stay ahead of the
curve they will likely need to
continue to adopt disposables
technologies and advance their
automation in full isolators Ray
Cardin of PharMax Consulting
says ldquoIncreased use of dispos-
able pre-sterilized f illing tech-
nologies [are future trends] The
combination of these pre-ster-
ilized units with the coming of
age of ster i le connectors that
provide high sterility assurance
wwwbiopharminternationalcom June 2015 BioPharm International eBook 25
Outsourcing Resources FillFinish
Biologics Development and Manufacturing Trends Part II
Eric Langer Managing Partner BioPlan Associates talks about the results from BioPlan AssociatesOtilde 12th Annual Report and Survey of Biopharmaceutical Manufacturing Capacity and Production Langer discusses what respondents indicated as the number one trend in biologics manufacturing improving efficiencies and the biosimilars market
in less clean environments is
changing the way aseptic pro-
cesses are designedrdquo
Gordon Leichter PhD Eastern
r e g io n a l s a l e s m a n a ge r a t
Belimed in Charleston SC states
ldquoAutomat ion in fu l l i solators
wil l el iminate operator inter-
vention and laser-sealed vials
Automation will become more
integral to building automation
and enterprise systemsrdquo
Douglas Stockdale vice-presi-
dent CMCTechnical Operations
Hi l lhurst Biopharmaceut ica ls
Los Angeles CA says ldquoIndustry
will continue pushing the PAT
[process analytical technology]
envelope to f ind a lternat ive
methods to improve in-process
methodologies and processesrdquo
Fe r ne ma n add s ldquoCu r r e nt
trends in fillfinish innovation
will probably focus the market
authorization holders on a few
strategic products resulting in
outsourcing of a bigger share of
products overallrdquo
ConClusion
Until recently the handling of
ster i le l iquids in the pharma-
ceutical industry has relied on
relatively consistent techniques
during the past 100 years with
relatively slow changes in tech-
nologies and regulations result-
ing in incremental improvements
in safety efficiency and prod-
uct quality During the past 20
years however costly biologics
have taken a prominent indus-
try role The value of these drugs
can often be measured in tens of
thousands per dose This has put
greater pressure on these down-
stream fillfinish operations to
ensure quality safety and cost-
efficiency are not compromised
at this crucial late stage in manu-
facturing Trends in fillfinish for
recombinant therapeutics include
the increased use of isolator
technologies more high-speed
operations and other innovative
approaches including single-use
processing As a result of industry
research BioPlan expects more
outsourcing of fillfinish opera-
tions in coming years
referenCes 1 BioPlan Associates 12th Annual
Report and Survey of Biopharmaceutical
Manufacturing Capacity and Production
(Rockville MD April 2015) www
bioplanassociatescom
2 BioPlan Associates Trends in Aseptic
Bioprocessing Capacity for the Fill and
Finish of Recombinant Biologics An
Analysis of US and European In-house
Capacity and Capacity Utilization (BioPlan
Associates December 2014)
3 Information derived from BioPlan
Associatesrsquo BioFacilities Newsletters Bp
26 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Cell Therapy
Taking a ldquoDevelopment-by-Designrdquo
Approach to Cell Therapies
Whether outsourcing or developing cell therapies in-house success demands a focus on quality cost of goods
and sustainability from the start
Agnes shAnley
Cell therapies both autologous and allo-
geneic have come a long way in just a
few years Countries around the world
most recently Japan have passed regula-
tions designed to speed development of
these treatments which are now a big and growing
global business
In 2013 according to the Pharmaceutical Research
and Manufacturers Association 69 cell therapies six
of them autologous or patient-specific treatments
were in clinical trials or being reviewed in the United
States alone 15 of them in Phase III trials (1)
The road is littered with failures however often
in clinical stages This has been traced to problems
with manufacturing and failure to understand pro-
cess requirements earlier in the development process
Table I outlines manufacturing issues
As a growing number of Big Pharma companies
explore the potential for immune regenerative and
other cell therapies equipment manufacturers includ-
Agnes shAnley is senior editor of BioPharm International
SC
IEP
RO
GE
tt
y Im
aG
ES
wwwcytovancecomResponsive Reliable Resourceful
Your partner in biopharmaceutical contract manufacturing of therapeutic proteins and antibodies from mammalian cell culture and microbial fermentation
28 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Cell Therapy
ing Pall Corp EMD Millipore
and GE Biosystems have set up
centers of excellence to focus on
developing equipment for this
new market Engineering compa-
nies such as Invetech and Instrom
are developing equipment specific
to this niche
More CDMos are entering
Cell therapy Market niChe
Demand for spec ia l i zed ce l l
t he rapy ma nu fac t u r ing a nd
development serv ices is a lso
growing and has attracted Lonza
Bioservices Cognate BioServices
WuXi AppTech and Roslin Cells
among others
NeoStem is fol low ing t wo
paths pursuing its own cel l
therapy pipel ine and explor-
ing contract services through
its contract development and
manufac t u r ing organ i zat ion
(CDMO) subsidiary Progenitor
Cell Therapy (PCT) With bases
in Irvine and Mountain View CA
and Allendale NJ PCT is cur-
rently working with Intrexon and
Fibrocell on connective tissue
treatments and with the United
K ingdomrsquos Adapt immune on
oncology treatments
A new CEO David Mazzo with
a doctorate in analytical chemis-
try and experience running both
private and public international
biopharma companies assumed
NeoStemrsquos leadership in January
He sees no conflict between grow-
ing a pipeline and a contract man-
ufacturing business
ldquoWe are not trying to be two
di f ferent companies and we
do not see the two competing
with each otherrdquo says Mazzo
in an interview with BioPharm
Inte rnat ionalrsquos s i ster publ ica-
tion Pharmaceutical Technology
during his second week on the
job ldquoInstead there is a symbi-
otic relationship between themrdquo
As he sees it the companyrsquos
track record in developing prod-
ucts should attract more spon-
sors ldquoProblems in development
usually occur at the interfaces
Our unique experience of having
lsquodone that beforersquo should be help-
fulrdquo he says
In January PCT entered a
partnership with Invetech an
equipment design firm based in
Australia with offices in San Diego
to develop automated equipment
for cell therapy manufacturing Fig
ur
e 1
is
co
ur
te
sy
oF
in
ve
te
ch
Figure 1 Part of an automated solution being developed by neostem and invetech Automating processes is key to reducing costs
wwwbiopharminternationalcom June 2015 BioPharm International eBook 29
Outsourcing Resources Cell Therapy
The two companies have already
been working together for a year
now honing the design and speci-
fications for the instrumentation
says NeoStemrsquos Chief Scientific
Officer (CSO) Robert Preti The
equipment will tackle cell therapyrsquos
most challenging side autologous
treatments where the manufactur-
ing lot is the patient dose adminis-
tered at the patientrsquos bedside
As Preti notes there really isnrsquot
much available today in the way
of automated equipment for cell
therapy especially on the autolo-
gous side The equipment will sep-
arate and wash cells among other
functions
labor-intensive
proCesses aDD Cost
So far Preti says the company
is evaluating the evolving equip-
ment in NeoStemrsquos own manu-
facturing efforts ldquoOne of the
largest commercial bottlenecks
is the heavy labor required by
processes especially for patient-
specific uses where one batch is
one patientrdquo
The cost of goods i s ver y
high Preti says ldquoSuccess long-
term will require a whole new
approach to development The
goal is to provide high qual-
ity and sustainabilityrdquo he says
Removing manual operat ions
and human error from the pro-
cess will be crucial
Invetech has been work ing
on cell therapy process scale-up
automation for more than 10
years and has successfully com-
pleted projects in North America
Europe and Asia for companies
that include Argos Therapeutics
Aa s t rom CCR M Hu mac y te
Innovacell Janssen kSep Systems
MolMed Organovo and ViaCyte
accord ing to R ichard Grant
global VP of the companyrsquos bio-
pharma operations who has been
with the company for more than
14 years
ldquoThe goal is to develop a mix
of equipment and manufactur-
ing st rateg ies that maximize
quality scalability and sustain-
ability with an eye toward cost-
effect iveness and commercial
viabilityrdquo Grant says Invetechrsquos
solutions typically tailor a mix of
OEM and customized equipment
to the clientrsquos processes The com-
pany recently commercialized
equipment used to manufacture
Janssenrsquos macular degeneration
treatment
Costs of current manufactur-
ing processes for both autologous
and allogeneic therapies are dif-
ficult to peg Last year experts
at University College London
attempted to pinpoint the cost and
overall economics of allogeneic
cell therapy using single-use tech-
nologies (2)
What is clear for both alloge-
neic and autologous systems is
that cell therapy development
Table I Manufacturing scenarios for cell therapies
Attributes Off-the-shelf therapiesPatient-specifc
therapies
Source material Always allogeneic Autologous or matched allogeneic
Batch size Many patients One patient
Business model Similar to pharmabiopharma New
Scaling Scale up (Increased lot size) Scale out (Increased number of lots)
Comparability vs scale Higher concern Lower concern
Manufacturing design drivers
Mission critical success + +++
Optimized process yield +++ +
Dimensional efficiency ++ +-
Integration +- ++
Automation + ++
source invetech
Table II Measuring comparability risk
Risk level Example Timing
None Automated sterility test Before biologics license application
Low Change in process unit op and cell journey is the same
Before 50 accrual in pivotal trials
Medium Change in process unit op and cell journey is similar
Before initiation of pivotal clinical trials
High Change in process unit op and the cell journey is matched
Some Phase II clinical data
source invetech
30 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Cell Therapy
and manufacturing costs are cur-
rently prohibitive ldquoThe starting
points can vary dramaticallyrdquo
Grant says He recalls one cus-
tomer whose autologous process
ran to $80000 per patient in early
stage clinical trials Automation
he says could reduce costs by
40ndash90 depending on the ther-
apy involved
DevelopMent by Design
But before one can automate any
process one must understand it
NeoStem and PCT like a growing
number of companies are taking
the principle of quality by design
(QbD) to heart in their work
Mazzo arguably one of few
life-science company CEOs to
even articulate the QbD concept
explains that the company has
gone a step further and broadened
the International Conference on
Harmonization guidances adopted
by FDA into ldquodevelopment by
designrdquo (DbD)
ldquoWe say first consider the end-
point then take process as is and
understand its unit operations
Develop inputs and outputs and
discrete steps and define the pro-
cess in a way that promotes under-
standingrdquo he says
ldquoThis is challenging given prod-
uct complexity but there is a need
to understand the mechanism of
action very well so you put each
process in this overall envelope
of DbD and consider the cost of
goods scalability and sustainabil-
ityrdquo Preti adds ldquoYou consider the
process from the end only this
time each batch is an individual
patientrdquo
The critical part is defining and
measuring process needs he says
ldquoProduct definition is very impor-
tant particularly the quality target
product profilerdquo explains Brian
Hampson VP of manufacturing
development and engineering at
PCT in an Oct 22 2014 webcast
for the International Society for
Cell Therapy (3)
have the enD in MinD
Such t h ings a s for mulat ion
issues dosage potency impu-
rities residuals and microbial
assurance need to be thought out
clearly from the start Hampson
says as well as indications for
use geographic market projec-
tions cost-of-goods targets and
IP issues
The profile needs to be a liv-
ing document that changes as the
product takes shape Hampson
says There is a tendency for peo-
ple in the industry to ignore the
product profile until they have
all the answers says Hampson
ldquoInstead it needs to be developed
really early even when you donrsquot
have all or even many of the
answers hellip you can leave them
as blanks and continue to review
add to and updaterdquo
The result is not only a tool for
better understanding the prod-
uct process and mechanism of
action but a communication tool
for stakeholders
When to start DbD for cell ther-
apies ldquoThe temptation is to begin
later in the game when you need
reasonable COGS and you need
to be sure of sustainable manu-
facturingrdquo says Hampson ldquoThe
key thing is comparability and
anticipating its implications early
in the clinical program It needs
to be flexible at the early stagesrdquo
Hampson says ldquoBut as you near
Phase III you need to lock in your
equipment evolves
In the bioreactor area there is great interest in moving from 2-D to 3-D processing to enable the processing of the cell volumes required something that companies such as Israelrsquos Pluristem have been doing for some time
Equipment designer Instrom is partnering with companies including BRTI Life Sciences to focus on 3-D cell matrix technologies developed by Dr John Brekke EMD Millipore has been partnering with PharmaCell BV to use its Mobius bioreactor platform to expand and harvest HepRG cells GE Sciences is also evaluating Wave and other systems and set up a center of excellence in Wales recently
In other equipment areas Pall Corp has been partnering with CMDG LLC on cord blood processing technology Following are some of the equipment manufacturers and systems applied in cell therapy development and manufacturing
bull Beckman Coulter bull Corning Cell Stacks and Cell Cube
bull EMD Millipore bull GE Biosciences
bull Thermo Scientificrsquos Nunc Cell Factories bull Pall Corp
wwwbiopharminternationalcom June 2015 BioPharm International eBook 31
Outsourcing Resources Cell Therapy
processrdquo Table II summarizes issues
and points where changes will be
easier
Thus Hampson suggests that
companies whether work ing
with CDMOs or in house think
through such issues as cost of
goods scale and sustainabil-
ity much earlier than they typi-
cally do today ldquoYou donrsquot need to
spend money on these issues but
you do need to think about themrdquo
Hampson says ldquoQuality must be
a key issue even at Phase II trials
and early action pays off laterrdquo
In addition he suggests that
companies th ink about the
e nt i r e p r o c e s s c o mp r e he n -
sively ldquoThere is often a tendency
to focus on the core processing
stepsrdquo Hampson says ldquoBut you
really need to think about every-
thing from collection of mate-
rial through to administration
of product to the patient and all
steps in betweenrdquo
For ce l l therapies d ispos -
able equipment and closed pro-
cesses can be an effective way to
reduce costs and improve quality
and compliance ldquoThey can allow
you to isolate different processes
so that they can share a Class
100000 cleanroom environmentrdquo
Hampson says
ldquoInvesting in automated informa-
tion management can also pay offrdquo
he says ldquowhere an electronic batch
record system that is fully validated
can enable release-by-exception
reducing error documentation
time and overall quality assurance
costsrdquo Hampson says
In addition he notes it is
important to look at costs compre-
hensively an increase in one cost
can for example reduce overhead
improve process sustainability and
cost of goods Table III outlines the
issues
regulations evolve
Cell therapy is still a new area
for regulators and as Preti says
some guidelines are clear and oth-
ers arenrsquot ldquoDevelopment by design
is needed throughout the pro-
cess but the piece we still struggle
with the most is mode of action
(MOA) and product characteriza-
tion Regulatory agencies under-
stand that it is difficult to pinpoint
MOArdquo
Preti emphasizes the importance
of working with regulators ldquoYou
can be in a position to inform and
influence regulations as products
are developedrdquo he says
For any company moving into
this brave new world top-level ques-
tions are needed Preti says empha-
sizing the following ldquoDo you have
an understanding of scale Can you
scale up from very small Can you
characterize the process and control
it for reliability and qualityrdquo
In the stem cell area in particu-
lar this is crucial Preti said since
the product relies heavily on the
process ldquoManufacturing can be
thought of as patient administra-
tion It cannot be separated in
the same way that it can for tra-
ditional medicinesrdquo For contract
suppliers he adds demonstrated
success will be important and
sponsors should consider whether
a prospective partner will be able
to stay with them for the long run
referenCes 1 P Hourd et al Regulatory Challenges
for the Manufacture and Scale-
Out of Autologous Cell Therapies
Massachusetts General Hospital
(Cambridge MA 2013)
2 S Farid et al Biotechnol Bioeng
111(1) 69-83 (January 2014)
3 R Grant Building Deliverable Cell
Therapeutics A Methodical Approach
to Manufacturing Development
(Webinar Oct 22 2014) bp
source invetech
Justifcation driversChange in cost
doseDevelopment
estimate
Unit Op Ref
Change decription
Comparability risk
Quality COGs Scale Sustainability LaborMaterials outplant
Cost Time
P-2 Process change 1 Medium X X darr $ $$$ TT
P-3 Process change 2 High X X X darr $$$ $$$$ TTT
P-4 Process change 3 Low X X darr $$ $$ TTT
P-2 Process change 4 Low X $$ T
QC-4 In-house QC test None X TT
QA-1Electronic Batch
RecordNone X X X
darr $$$$
TTTT
Table III Process changes timing and comparability risks cogs is cost of goods Qc is quality control
32 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Intellectual Property
Protecting Intellectual Property
in Engagements with CMOs
Important IP contractual provisions should be included when working with CMOs
Jennifer L CoLLins
Biotechnology and pharmaceutical companies
often engage contract CMOs to assist with
the development of their drugs This type
of arrangement naturally involves the devel-
opment of intellectual property (IP) so it is
important for both the CMO and the sponsor to iden-
tify pre-existing intellectual property and also define
how rights to new IP will be allocated protected and
enforced by and between the companies
If the arrangement with the CMO is a traditional fee-
for-service arrangement where the company pays the
CMO service fees to perform development work on its
behalf then generally all new IP (other than improve-
ments to the CMOrsquos manufacturing technology) will be
owned by the biotechnology or pharmaceutical com-
pany that engaged the CMO On the other hand if the
arrangement between the CMO and the biotechnology
or pharmaceutical company is more of a collaborative
arrangement where both parties share the costs of devel-
opment as well as any profits from the commercializa-
tion then IP concerns become much more complicated
In that case in addition to describing which party will
Jennifer L CoLLins is a technology and licensing attorney with Morningstar Law Group jcollinsmorningstarlawgroupcom
Fa
na
tic S
tud
ioG
ett
y Im
ag
es
wwwbiopharminternationalcom June 2015 BioPharm International eBook 33
Outsourcing Resources Intellectual Property
own the new IP the contract should
sort out which party will be respon-
sible for obtaining and maintaining
patents on the new IP controlling
litigation against infringers and
defending the IP against challenges
In addition the parties should agree
upfront on how the IP may be used
by each party following various ter-
mination events so that the parties
are not left fighting about such mat-
ters at a time when they may not be
inclined to agree to anything
In both arrangements without
specific contractual provisions to
define and protect the new IP a
biotechnology company or phar-
maceutical company that uses a
CMO for development is at risk of
losing control of and possibly own-
ership of important improvements
to its drugs This article discusses
IP contractual provisions that
should be included in each type of
arrangement
Fee-For-service
development work
Traditionally CMOs perform fee-for-
service development work where
a biotechnology or pharmaceutical
company engages the CMO to per-
form this work for a fixed fee In this
type of arrangement the CMO is a
service provider and typically takes
no ownership interest in the drug or
product that is being developed or
in improvements to an existing drug
or product that is being tested or
developed The contract governing
the relationship nevertheless must
be clear about the IP rights that are
owned and licensed by each party
If the contract does not provide
for proper assignments of IP to the
biotechnology or pharmaceutical
company then it is likely that the
CMO will own any improvements
or other inventions that it develops
in the performance of the develop-
ment services even if that is not the
intent of the parties
Without signed written contracts
that state otherwise under United
States patent law the inventor of
a patentable invention or improve-
ment will own the invention or
improvement even if the inventor
is engaged to develop the invention
or the improvement for a customer
or other third party To ensure
that the biotechnology company or
pharmaceutical company obtains
all the patent and other IP rights
in developments inventions and
improvements created in the per-
formance of services by the CMO
the governing contract between the
biotechnology company or phar-
maceutical company and the CMO
must include written present assign-
ments of those IP rights from the
CMO to the company Indeed based
on recent cases it is crucial that the
assignment clause in the contract
be a ldquopresentrdquo assignment mean-
ing that it must state specifically
that the CMO ldquohereby assignshelliprdquo
rather than a clause stating that the
CMO ldquoagrees to assignrdquo rights in the
future Otherwise the contract will
be interpreted as a promise to assign
rights in the future and the bio
pharmaceutical company will have
to go back to the CMO at some later
point in time for a separate writ-
ten assignment of rights to obtain
all patent and other IP rights in the
developments
While it sounds logical and
straightforward that the CMO
would assign all inventions created
in the development work to its cus-
tomer it is not always that simple
in practice What if the CMO devel-
ops an improvement to its manu-
facturing process in the course of
the development work Most CMOs
will want to reserve ownership of
any improvements to the CMOrsquos
existing IP and confidential infor-
mation This position is not unrea-
sonable as long as the customer
ultimately has the rights it needs in
all new inventions including those
owned by the CMO to take the drug
forward through further develop-
ment and commercialization One
must sort out IP allocation by sub-
ject matter To achieve this allo-
cation the development contract
typically will state that each party
retains ownership of all IP that it
owns as of the date of the contract
(all pre-existing intellectual prop-
erty) It will also state that the cus-
tomer owns its proprietary drug
and all improvements to the drug
or the customerrsquos confidential infor-
mation developed by either or both
parties The development contract
also may state more generally that
the customer owns all inventions
improvements and IP rights related
to the customerrsquos drug With respect
to the CMO and its IP the develop-
ment contract may state that the
CMO owns all improvements to the
CMOrsquos manufacturing process and
to its other pre-existing intellectual
property Again this reservation is
not unreasonable The customer
however should determine whether
it requires access to those improve-
ments or inventions to complete the
development and commercialization
of its drug If such access is necessary
the customer should either negotiate
a license (which may be royalty-free
or royalty-based depending on the
circumstances) to use such improve-
ments or inventions to develop and
commercialize the drug or the cus-
tomer should negotiate the terms
under which the CMO will continue
to use the improvements or inven-
tions to perform development work
andor manufacture the drug for the
customer
In the fee-for-service arrange-
ment the assignment and licensing
of IP rights in new inventions and
improvements is the key intellectual
property issue Intellectual property
considerations become much more
complicated when the biotechnol-
34 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Intellectual Property
ogy or pharmaceutical company
partners with a CMO in the devel-
opment of a new drug or product
where the parties share development
costs and profits from commercial-
ization of the drug or product
cmo as collaborator
Although not as common as the
fee-for-service arrangement a CMO
may partner with a biotechnology
or pharmaceutical company in the
development and commercialization
of a drug or product Generally both
parties are bringing pre-existing IP
to the collaboration such as a drug
from a biopharmaceutical com-
pany and proprietary drug delivery
technology from the CMO In this
scenario the CMO is taking a long-
term interest and often a part-own-
ership interest in the success of the
drug product
Instead of getting paid an hourly
rate or fixed fee for development
work on the drug product the CMO
may share the cost of development
work with the biotechnology or
pharmaceutical partner in exchange
for a share of the profits when the
drug or product is commercialized
Other costs involved in the develop-
ment and commercialization of the
drug or product that may be shared
include the cost of patent prosecu-
tion and the cost of patent litigation
if the drug product is challenged or
if it is misappropriated or infringed
To secure its interest in the profits
from commercialization of the drug
product the CMO may want to take
an ownership interest in the intel-
lectual property rights in the drug
product All of these issues must be
carefully addressed in the develop-
ment contract to avoid both finan-
cial and IP disputes
As with the fee-for-serv ice
arrangement the parties must
allocate ownership of intellectual
property rights pertaining to the
drug product to be commercialized
These rights include both pre-exist-
ing IP rights and new inventions
and improvements developed in
the course of the development con-
tract As with the fee-for-service
arrangement the parties typically
will retain rights to their respec-
tive pre-existing IP Intellectual
property rights to new inventions
and improvements however may
be shared by giving each party a
co-ownership interest in the intel-
lectual property Alternatively such
rights may be allocated by inventor-
ship with each party taking owner-
ship of developments that it invents
and with the parties jointly own-
ing jointly developed inventions
As another alternative the IP rights
may be allocated by subject matter
as in the fee-for-service arrangement
with each party owning improve-
ments and inventions related to its
pre-existing IP regardless of which
party invents those improvements
and inventions
Depending on how the pat-
ent applications are drafted the
IP rights may be ldquosliced and dicedrdquo
more finely One party for example
could own patent rights for a drug
product for one indication while the
other party owns patent rights for
the same drug product for another
indication Decisions about how
to allocate the IP rights should be
made in consultation with intel-
lectual property counsel and must
take into account the manner in
which the drug will be commercial-
ized If one party for example is
to commercialize the product in
North America and Europe and
the other party is to commercialize
the product in the rest of the world
then either the patent ownership
should be allocated by territory or
the development contract should
include exclusive cross-licenses of
each partyrsquos rights in all the intel-
lectual property necessary to com-
mercialize the product with the first
party having an exclusive license to
commercialize the product in North
America and Europe and the second
party having an exclusive license to
commercialize the product in the
rest of the world
If the parties are going to share
ownership of the IP related to the
drug product then the develop-
ment contract also should specify
which party is responsible for pros-
ecuting and maintaining patents
on the drug product Regardless of
which party is responsible for patent
prosecution and maintenance the
other party should be consulted and
involved in key decisions regard-
ing patent prosecution and main-
tenance Unless there are multiple
patents for different indications that
will be commercialized exclusively
by one party and unless each party
has exclusive rights to commercial-
ize the drug product in particular
geographic areas it generally makes
sense for one party to take the pri-
mary responsibility for patent pros-
ecution and maintenance globally
with the other party consulting and
sharing in the cost of the prosecu-
tion and maintenance in accordance
with the profit sharing The party
that is not responsible for prosecu-
tion and maintenance should have
a contractual right to approve patent
counsel and review and approve pat-
ent filings office action responses
and other communications with
patent registries before they are filed
or submitted so that the parties
agree on the proper prosecution and
maintenance strategy
Likewise the development con-
tract should allocate the rights and
responsibilities for asserting and
defending the patents pertaining to
the product in litigation Often these
rights and responsibilities are allo-
cated by territory according to com-
mercialization rights If one party
for example has the exclusive right
to commercialize the drug product
wwwbiopharminternationalcom June 2015 BioPharm International eBook 35
Outsourcing Resources Intellectual Property
in the US then that party would
have the first right and responsibil-
ity to assert the patents on the drug
product against potential infringers
and defend the patents on the drug
product against infringement claims
in the US Likewise if one party has
the exclusive right to commercial-
ize the drug product for a particular
indication then that party would
have the first right and responsibility
to assert or defend the patents per-
taining to the product with respect
to that indication Both scenarios
can present challenges First some
courts will not recognize an exclu-
sive licensee as having standing to
assert a patent That court might
only allow the owner of the patent
(and not the exclusive licensee) to
bring a lawsuit asserting the patent
It is crucial therefore that contrac-
tual provisions relating to patent liti-
gation require the party that owns
the patent to cooperate in any litiga-
tion and to join the suit as a party if
necessary
Another potential problem is that
any litigation that asserts the pat-
ent is likely to draw a counterclaim
that the patent is invalid thus put-
ting the patent itself at risk of invali-
dation While one party might be
threatened by a potential infringer
in a particular market or for a partic-
ular indication and therefore might
want to assert the patent against the
potential infringer the other party
might not want to put the patent at
risk as to other markets and other
indications For these reasons the
contractual provisions pertaining
to patent litigation must be care-
fully drafted in consultation with
intellectual property counsel who
understands standing issues and
the potential areas for dispute The
contractual provisions also should
include dispute resolution provi-
sions for situations when the parties
do not agree on whether a patent
should be asserted
Finally while the parties may
want and expect their relationship
to continue for the full term of the
patents and the development con-
tract the parties must carefully
consider the IP ramifications of an
early termination of the develop-
ment contract and the relationship
particularly if the development con-
tract is terminated for breach If the
parties are sharing in the ownership
commercialization and profits gen-
erated by the drug product devel-
oped by the collaboration then
all of that must be unwound upon
termination The development
contract should be as specific as
possible with respect to the effect of
various types of termination on the
intellectual property and contin-
ued commercialization of the drug
product In particular the parties
may agree that if the development
contract is terminated due to breach
by one party then that breaching
party must relinquish and transfer
all of its rights with respect to the
drug product to the other party to
allow the non-breaching party to
continue the commercialization of
the drug product post-termination
Whether the necessary rights are
assigned or licensed whether the
terminated party should receive a
royalty for the transfer or license of
those rights and what if any pre-
existing IP is licensed to enable the
non-breaching party to continue
commercializing the drug product
are all key factors for negotiation
The development contract should
also address other types of termi-
nation such as termination for
insolvency and termination with-
out cause (ie if one party decides
it no longer wants to commercial-
ize the drug product) In each case
the effect of termination on the IP
rights should be carefully analyzed
and a competent IP counsel should
carefully draft post-termination
assignments and licenses
conclusion
While IP lawyers are not equipped
with crystal balls they can be
extremely helpful in analyzing par-
ticular development commercializa-
tion and post-termination scenarios
all of which affect IP in a drug devel-
opment arrangement Contractual
provisions related to IP must be
carefully drafted to align with the
strategic business objectives of any
relationship and particularly one
whose purpose is the development
and commercialization of intellec-
tual property Without a clear con-
tract each collaborator is at risk of
losing important rights bp
Ad Index
AJINOMOTO ALTHEA 21
AVID BIOSERVICES INC 15
CYTOVANCE BIOLOGICS 27
EMERGENT BIOSOLUTIONS 13
EUROFINS LANCASTER LABORATORIES 7
SAFC BIOSCIENCES SIGMA ALDRICH 17
THERMO FISHER SCIENTIFIC 23
TOSOH BIOSCIENCE 11
WATERS CORP 3
Company Page
![Page 16: OUOURT NG I C RESOURCESfiles.pharmtech.com/alfresco_images/pharma/2019/03/08/... · 2019-07-22 · VIDEO INTERVIEW Biologics Development and Manufacturing Trends: Part I ... Media](https://reader034.vdocuments.us/reader034/viewer/2022050113/5f4aca886c0d6724390eb040/html5/thumbnails/16.jpg)
16 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources CROCMO Viewpoints
clearance time is reduced by sev-
eral days
R o g e r s ( S G S L i f e S c i e n c e
Services) As an analytical ser-
vice provider SGS is constantly
in search of means to improve
its laboratory efficiencies partic-
ularly those that enhance turn-
around time without adversely
effecting quality With this in
mind substitution of HPLC for
UPLC rapid microbiolog ica l
screening methods and invest-
ment in automated approaches to
complex analytical problems such
as protein sequencing are now
being used within the SGS labora-
tory network
Chambers (SGS) From a CRO
point of view the main produc-
tivity improvements in analytics
have been from higher through-
put systems and data analysis The
move to these faster systems with
semiautomated data processing has
allowed us to improve turnaround
times which are passed on to cli-
ents in terms who win on faster
to market times and faster gono
decisions
BioPharm What additional tech-
nology improvements are needed
to improve the efficiency of bio-
processing
Lorimer (Patheon Biologics)
Process analytical technology
(PAT) for continuous monitoring of
bioprocesses is helping reduce the
variability on biopharmaceutical
manufacturing
Also biopharmaceutical devel-
opment and process validation
have been accelerated by the use
of mini-bioreactor systems which
enable a large amount of process
development data to be gener-
ated within a very short timeline
These multi-bioreactor systems
can reduce process develop -
ment timelines by months when
applied to early-stage or late-stage
bioprocesses
Rogers (SGS Life Science Services)
The development of many tech-
nologies follows a common path
from academia to commercial
application and nowhere is this
more evident than in the field of
bioprocessing In almost all exam-
ples the key to this progression
lies in the ability to simplify opera-
tional aspects of the technology
and improve throughput This has
in the past been clearly demon-
strated in for example the field of
mass spectrometry and is currently
evolving with techniques involved
in biophysical characterization
BioPharm What is the greatest
technical challenge facing biophar-
maceutical companies today
Hartzel (Catalent Pharma Solutions)
Cost to manufacture will continue
to be a major challenge for the
industry especially with the rise
of biosimilars and market pressures
to drive down the cost of medi-
cines However the products that
are coming to market are more
targeted which leads to smaller
batch sizes This is counter to the
manufacturing adage of being able
to leverage economies of scale to
drive out costs hence the need to
focus on alternatives technologies
and innovation to reduce the man-
ufacturing costs versus economies
of scale
Lively (PPD) Application of ana-
lytical techniques to better char-
acterize innovator and biosimilar
or follow-on products by physico-
chemical and functional methods
are required and will continue to
be driven by the complexity of
biologics development For exam-
ple changes in formulations may
cause different leachable profiles
requiring increasing emphasis on
extractablesleachables techniques
(ie high-resolution MS) to sup-
port characterization of formu-
lation effects identification of
degradation and impurities and
determination of their potential
impact through application of
potency bioassays
Lorimer (Patheon Biologics) Most
of the technical challenges for
manufacturing have been over-
come and the technologies for
development and manufactur-
ing have been widely adopted
Perhaps the greatest challenge is in
clinical development of novel and
originator molecules where in-vitro
model systems are still not a great
predictor of clinical performance
Rogers (SGS Life Science Services)
To highlight one technical chal-
lenge above all others in todayrsquos
biopharmaceutical industry is
very difficult The complexity of
biotherapeutics often results in
considerable technical difficul-
ties as for example in the area
of impurities recognition of host-
cell proteins (HCPs) and identi-
fication of structural variants at
trace levels are certainly high on
the list of technical concerns The
necessary inclusion of relatively
elaborate analytical techniques
such as sedimentation velocity
analytical ultracentrifugation (SVndash
AUC) within a traditional qual-
ity control release environment is
also not without problems
BioPharm What are the pros-
pects for continuous manufac-
turing to be firmly established in
bioprocessing What are the road-
blocks to implementation
Lorimer (Patheon Biologics)
Continuous product ion f rom
mammalian cell cultures has been
operated in perfusion bioreactors
for many years The main road-
block for continuous processing is
downstream processing of proteins
which currently demands discrete
and distinct unit operations for
removal of impurities removal
of contaminants concentration
of the products and formulation
each in separate controlled steps
Introducing a next generation chemically-defined CHO fed-batch media platform from SAFC Developed across a range of widely used industrial CHO cell lines this newest portfolio media delivers exceptional titers and economic efficiencies Adaptation is simple Celebrate performance and accelerate your bio-development process
Celebrate Request your complimentary sample at sigma-aldrichcomCHOperformance
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EX-CELLreg ADVANCEDtrade CHO FED-BATCH SYSTEM
CELL CULTUREPERFORMANCE
copy2015 Sigma-Aldrich Co LLC All rights reserved Sigma-Aldrich SAFC and EX-CELL are trademarks of Sigma-Aldrich Co LLC registered in the US and other countries
NEXT GENERATION MEDIA PLATFORM
18 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources CROCMO Viewpoints
and which are not currently ame-
nable to continuous processing
the Rise of biosimilaRs
BioPharm What impact w i l l
biosimilar drugs have on bio-
pharma businesses bioprocessing
approaches and the contract ser-
vices market
Rogers (SGS Life Science Services)
The European biopharma land-
scape has already experienced
impact of the biosimilar drug mar-
ket leading to rapid expansion of
traditional small molecule generic
manufactures into the bio arena
Recent FDA approval of the Sandoz
biosimilar Zarixo may be the seed
for similar changes in the US pro-
viding a potential new line of busi-
ness for established pharmaceutical
companies Contract service pro-
viders such as SGS who already
have considerable experience with
biosimilars are able to offer exper-
tise to businesses new to this mar-
ket and will no doubt benefit from
such expansion in the US
Lively (PPD) Increased invest-
ment in biosimilars is driving
interest in improving and stream-
lining the development processes
as well as the sensitivity and scope
of characterization assays used to
compare biosimilars and innova-
tor drugs The expanding capac-
ity needs result in partnerships
between clients and their contrac-
tors with the systems experience
and expertise to achieve the qual-
ity and speed required while meet-
ing all regulatory expectations for
product approval
Chambers (SGS) With nearly
20 years exper ience perform-
ing biosimilar analysis the big-
gest impact had been the massive
increase in the characterization
needed for biosimilars compared
to innovators (although higher
standards are now needed for new
innovators too) This has resulted
CMOs Add Capabilities
Consolidation in the contract development and manufacturing market has resulted in new capabilities and facility expansions
In May 2015 CMC Biologics announced that it is expanding its Copenhagen Denmark facility to increase its manufacturing capacity through the installation of six 2000-L bioreactors The bioreactors can be run singly or in groups simultaneously or sequentially and are part of the companyrsquos signature Bioreactor 6Pack single-use program The Copenhagen installation will begin initial GMP production in November 2015 and will feature three bioreactors to start Three bioreactors will be added at a later date to complete the configuration Meanwhile the Bioreactor 6Pack at CMCrsquos Seattle facility will complete its first GMP run in mid-2015 and will be ready for commercial launch by the end of the year Through its recent expansions CMC plans to expand its global capacity by more than 30000 liters in the United States and Europe
Also in May 2015 SAFC announced an expansion to its St Louis MO facility to support the commercial-scale production of antibody-drug conjugates The facility which is expected to be online and operational in the third quarter of 2015 was designed to meet SafeBridge category 4 compound handling requirements for highly active or cytotoxic compounds The expansion of an existing Carlsbad CA location will enable SAFC to offer fillfinish capabilities of viral products to its clients in the gene therapy viral vaccine and immunotherapy sectors
Rentschler announced in March 2015 that a 2000-L bioreactor that the company commissioned and built in six months is up and running The bioreactor will be integrated into existing manufacturing suites containing two 1000-L single-use bioreactors according to a company statement The companyrsquos twin bioreactor systemmdashdesigned for running two main bioreactors in parallel with one shared downstream processing unitmdashwill be functional by 2017 The twin system is estimated to double the companyrsquos production capacities for cell culture-derived proteins
In December 2014 FUJIFILM Diosynth Biotechnologies USA (FDBU) acquired Kalon Biotherapeutics adding viral and cell-culture vaccine expertise and capabilities In other activity FDBU started construction of a three-story 62000-ft2 facility in Research Triangle Park NC in January 2015 to house the companyrsquos process and analytical research and development process sciences and stability groups The expected completion date is Q4 2015
In September 2014 PCI a provider of packaging services acquired Biotec Services International a provider of clinical-trial services and temperature-controlled pharmaceutical services headquartered in Bridgend Wales UK The addition expanded PCIrsquos presence in the European Union and added packaging storage and distribution capacity and consultative services for clinical-trial supplies In January 2015 Biotec announced the validation of its clinical supply facility expansion which added almost 50 to the companyrsquos clinical trial materials handling capacity
wwwbiopharminternationalcom June 2015 BioPharm International eBook 19
Outsourcing Resources CROCMO Viewpoints
in challenges in data handling
interpretation and data presenta-
tion Biosimilars have also caused
the re-emergence of orthogonal
techniques like size exclusion
chromatographyndashmulti-angle laser
light scattering (SEC-MALL) and
SV-AUC for aggregation and cir-
cular dichroism (CD) and fourier
transform infrared spectroscopy
(FTIR) for higher-order structure
as critical analyses to understand
and compare and detect subtle
higher-order structural differences
between innovator and biosimilar
samples
Hartzel (Catalent Pharma Solutions)
The rise of biosimilar drugs will
dawn the next generation of bio-
logic manufacturing and force
the industry to look at new ways
of manufacturing to drive down
costs Therefore the industry will
seek new manufacturing partners
with strong technical expertise to
drive out costs through innovation
and operational excellence
Lorimer (Patheon Biologics)
Genera l ly b ios imi la r d r ugs
will encourage competitiveness
within the biopharma sector
Biomanufacturers expect increased
pressure on cost of goods and
pricing Biopharmaceutical con-
tract service providers with a flex-
ible multi-product operation and
proven track record in the indus-
try are well placed to ensure care-
ful control of manufacturing costs
and product quality Processing
approaches wonrsquot change in terms
of technology but there will be a
greater emphasis on operational
excellence to reduce costly inef-
ficiencies and improve yields from
bioprocesses As more biosimilars
come to the forefront and as the
industry trend for outsourcing
continues increasing operational
flexibility while maintaining the
highest quality standards will be
the keys to success
business challenges
BioPharm What is the greatest
business challenge facing biophar-
maceutical companies today
Lively (PPD) As with all phar-
maceutical drug development the
greatest challenge is getting new
life-changing and potentially life-
saving drug candidates to mar-
ket Biopharmaceuticals face more
challenges than traditional small-
molecule drug products because
the science of characterization
of such biologic drugs is rapidly
evolving along with the regulatory
landscape Those companies that
are best able to successfully char-
acterize and differentiate innovator
and biosimilar products for safety
and efficacy will have the greatest
opportunity to benefit
the knowledge gap
BioPharm In what areas do you
see knowledge or expertise gaps in
current biopharmaceutical compa-
nies Why do these gaps exist
Lorimer (Patheon Biologics) There
is a gap in translating good sci-
ence to industrial applications of
technologies that provide for reli-
able efficient cost effective man-
ufacturing at commercial scale
Maintaining a focus during early
development on eventual commer-
cial manufacturing requirements
while balancing limited develop-
ment resources requires a broad
base of coordinated organiza-
tional skillsets and a disciplined
approach
Hartzel (Catalent Pharma Solutions)
Devicedelivery expertise is an
area that has a potential gap For
biologics the historic default con-
tainer closure has been a tradi-
tional glass vial As the healthcare
industry seeks ways to improve
patient care and reduce costs the
delivery to the patient needs to
adopt new technologies and this
is why we have seen a rise of pre-
filled syringes and autoinjectors
These technologies will continue
to evolve and so will the demand
for devicedelivery experts
Lively (PPD) One of the chal-
lenges we see is the various levels
of knowledge and expertise that
exist between biopharmaceutical
RampD and the testing and regula-
tory industries That differential is
impacting those industriesrsquo ability
to fully consider and effectively
implement expectations and guid-
ance for physicochemical and
functional characterization expec-
tations of biologic drugs
Lorimer (Patheon Biologics) The
commercial biopharmaceutical
industry demands global sourc-
ing of materials services supply
and ultimately distribution to each
patient This requires a robust inte-
grated supply chain to deliver high
value products to patients on-time
and at the right quality Doing this
reliably and efficiently with long
production lead times and uncer-
tain market sales forecasts is an
industry wide challenge
Speed-to-market remains a key
challenge to the development of
biopharmaceuticals Speedy first-
time-in-man clinical trials can be
a major hurdle for small biotech
companies and large pharma alike
Rogers (SGS Life Science Services)
I believe there continues to be a
significant problem in the level of
fundamental scientific expertise
within many biopharmaceutical
businesses In part this may be
attributed to the lsquokitrsquo and lsquoblack
boxrsquo approach of many modern
day technologies Due to the
complexity of many biopharma-
ceuticals their development and
success as therapeutics requires a
comprehensive range of scientific
disciplines and expertise which
can be difficult to fully realize
internally particularly for small
and mid-size companies bp
20 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources FillFinish
FillFinish Trends
Automation and disposables continue to reduce human error
Eric s LangEr
Fillfinish operations continue to be domi-
nated by trends in automation and the adop-
tion of single-use equipment But these are
by no means the only factors affecting these
high-value operations according to BioPlan
Associatesrsquo latest biomanufacturing study (1) Fill
finish processes are among the most outsourced
activities in biomanufacturing today and a service
providerrsquos capacity for vialing pre-filled devices
and lyophilization is crucial In a recently pub-
lished whitepaper (2) BioPlan Associates determined
that there is sufficient global in-house capacity
for biologics but the need continues to grow for
greater access to specialized outsourcing competence
Whatrsquos trending is significant improvements in auto-
mation and operations
AutomAtion And single use defining Cmo strAtegy
The top trends today involve automation and devel-
opment of better disposable technologies As part of
the BioPlan study biomanufacturers were asked to
select the trends they believe to be the most impor-
tant in fill and finish today The top three trends
are single-use equipment automation in full isolator
units and facilities becoming multi-product ori-
ented (see Figure 1)
Other important trends were noted including
bull Increased serialization and product labeling for
anti-counterfeiting
Eric s LangEr is president and managing partner at BioPlan Associates Inc elangerbioplanassociatescom tel 3019215979 wwwbioplanassociatescom
Ma
ria T
ou
tou
da
ki
Ge
tty Im
ag
es
WITH ALTHEA YOU HAVE THE POWER TO MAKE
You have the power to make a difference To make new therapeutics that improve quality of life and inspire a healthier world To do this you need a manufacturing partner who embraces your every challenge as its own who shares your unwavering tenacity and dedication from clinical studies through commercial success Thats The Power To Make
PLAY VIDEO
CONTRACT
MANUFACTURING
Q Development
Drug Substance
lj Drug Product
(D Al TH EA I THE POWER TO MAK A MEMBER OF THE AJINOMOTO GROUP
22 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources FillFinish
bull More f i l l f i n i sh fac i l i t ie s
o p e r a t i n g i n d e v e lo p i n g
regions
bull C o m p u t e r - b a s e d v i s u a l
i n s p e c t i o n a r t i f i c i a l
intelligence
bull Use of complex administration
systems
single-use equipment in fillfinish operAtionsT h e a d o p t i o n o f d i s p o s -
ab le e qu ipme nt i n f i l l f i n -
i s h o p e r a t i o n s e l i m i n a t e s
cross-contamination risks and
adds flexibility in process scale
While regulatory rest r ic t ions
may be increased by the adop-
tion of such equipment single-
use appl icat ions a lso enable
contract manufactur ing orga-
nizat ions (CMOs) to increase
fac i l i t y ut i l i z at ion t h rough
multi-product strategies which
can decrease their cost of goods
Experts in the f ield discussed
these trends
Peter Pekos CEO and president
of Dalton Pharma Services a fill
finish CMO says ldquoFor a CMO
disposables can be attractive hellip
For example a disposable isola-
tor can be packed and stored pre-
sterilized for use when needed
a f ixed isolator requires f ixed
space at all times Disposables
also allow a CMO to handle proj-
ects using specific systems for
non-typical project needs such
as disposable isolators without
going to the expense of buying
permanent isolator infrastruc-
ture Disposables do not obviate
the need for technical expertise
hellip so the need for a CMO isnrsquot
really reduced In fact CMOs
with expertise in single-use sys-
tems hellip can make them more
attractiverdquo
Mar t ina Fe r neman cor po -
rate development manager at
Recipharm bel ieves that the
adoption of single-usedispos-
able equipment is now impacting
f i l l and f inish ldquoIn mult ipur-
pose sites the cleaning proce-
dures will become more crucial
to avoid cross contamination
Single-use equipment [also] has
the advantage of shorter lead
t imes and lower procurement
costs Since no cleaning proce-
dure has to be established and
aseptic connections are easier to
be built-up the use of single-
use equipment is not only faster
but also safer than conventional
equipmentrdquo
AutomAtion in full isolAtor unitsW hi le s ing le -use equ ipment
adoption may be one of the hot-
test f i l lf inish trend automa-
tion technologies may actually
be experiencing more rapid rates
of implementation among bio-
manufacturers Indeed sepa-
rate results from BioPlanrsquos 12th
annual study suggest that the
industry wi l l be as l ikely to
implement automation technolo-
gies as they will use single-use
f i l l-f inish devices dur ing the
next 24 months
The removal of human factors
is a key to improving product
quality Isolators and automa-
tion are therefore key drivers
as facilities seek to improve their
i n f r a s t r u c t u r e I n nov a t io n
around equipment and facilities
able to handle multiple products
is going to continue Flexibility
is key as the reduced flexibility
of isolators (and higher cost) in
relation to traditional restricted
access barrier (RAB) systems may
deter some CMOs from adopt-
ing isolators The jury is st i l l
out because the decision fac-
tors between RAB and isolators
are complex and this tends to be
a high-cost decision often left
to the larger f illf inish CMOs
ldquoCMOs will adopt isolator tech-
nologies in their processes to
meet industry needs and reduce
r isk In some cases this wil l
also include disposable isolators
which can offer the benefits of
fixed isolators but add a degree
of f lexibil ity to the manufac-
turerrdquo Pekos notes
According to Ferneman adopt-
ing automat ion in ful l isola-
tor units to reduce the need for
operators is a trend seen in the
CMO market ldquoUse of barr ier
technology (RABS or isolators)
should ensure optimal protec-
t ion of ster i le areas Isolators
bear a better potential to prevent
biocontamination Since the iso-
lator is a closed system a lower
air quality than in RABS systems
can be usedrdquo For freeze-dried
products the RABS system is a
better choice because loading
has to be performed in class AB
surrounding
Fig
ur
e 1
is
co
ur
te
sy
oF
th
e a
ut
ho
r
Figure 1 selected bioprocessing fllfnish trends in 2015
Single-usedisposable equipment
adoption55
36
35Facilities becoming more multi-
product-use oriented
Automation in full isolator units
reduce need for operators
More compounds More accuratelyFaster than ever
Quantitation transformed
Todayrsquos range of possible therapeutic agents from small molecules to peptides to antibodies and
ADCrsquos makes quantitative bioanalysis a challenge Quantify potential therapeutics faster and more
accurately with our new portfolio of LC-MS instruments sample prep solutions and software HRAM
solutions using Thermo Scienti ctrade Orbitraptrade MS enables selectivity for complex molecules while
triple quadrupole MS delivers SRM sensitivity and speed to detect targeted compounds more quickly
Meet todayrsquos challenges with us and together wersquoll transform quantitative bioanalysis
Thermo Scienti ctrade Orbitrap Fusiontrade MSUnprecedented depth of analysis and
throughput for biological discovery
Thermo Scienti ctrade TSQ Quantivatrade MSLeading SRM sensitivity and speed
in a triple quadrupole MSMS
Thermo Scienti ctrade Q Exactivetrade MSScreen and quantify known and unknown targets with HRAM Orbitrap technology
copy 2
014
Ther
mo
Fish
er S
cien
tifi c
Inc
All
right
s re
serv
ed A
ll tr
adem
arks
are
th
e pr
oper
ty o
f The
rmo
Fish
er S
cien
tifi c
and
its
subs
idia
ries
bull Discover more at thermoscienti ccomquan-transformed
24 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources FillFinish
Cmos stAying
AheAd of the Curve
In the whitepaper on in-house
fillfinish operations for recom-
binant therapeutics (2) BioPlan
found relatively low average in-
house capacity utilization rates
for lyophilization (55) pre-filled
devices (58) and vialing (70)
This finding suggests that for fill
finish CMOs the real value isnrsquot
necessarily in providing additional
flexible capacity but rather in posi-
tioning themselves as providing
highly sophisticated and novel
technologies and expertise in fill
finish services Indeed CMOs are
expected to have state-of-the-art
equipment As Pekos notes ldquoCMOs
who implement flexible and inno-
vative technologies to make man-
ufacturing or development more
efficient faster compliant or more
economical all serve to make them
more attractive to customersrdquo
For CMOs that make use of
innovative fillfinish technologies
there appears to be a good deal
of demand Results from BioPlanrsquos
annual studies indicate that fill
finish services are among the most
widely and heavily outsourced
biomanufacturing activities today
and are also among the activities
that biomanufacturers are most
likely to outsource at significantly
higher levels in the future
Biomanufacturers and CMOs are
actively looking to their fillfin-
ish equipment suppliers and are
beginning to demand additional
new technologies innovation and
product development In 2014 for
example when the top areas that
biomanufacturers wanted their
suppliers to focus their develop-
ment efforts on were measured
fillfinish services topped the list
cited by 23 of biomanufacturers
Not only did that figure represent
a substantial increase from years
past (13 in 2011) but it was also
ahead of other services including
upstream and downstream process
development services
Fillfinish will continue
to be an area of
growth for CMOs
There are a number of areas in
which suppliers can add value to
fillfinish innovation according
to industry experts Jim Agalloco
president of Agalloco amp Associates
in Belle Mead NJ says ldquovendors of
equipment and components to fill
finish must continue their roles as
technology leaders Innovation in
this market has always been sup-
plier driven because the operating
firms do not have the necessary
expertise Collaboration between
equipment manufacturers and
component suppliers is essential
for implementation of new con-
tainer systems single-use dispos-
ables and other advancesrdquo
Ronald Malone senior principal
scientist at Novartis Vaccines says
ldquoBlow-fill-seal containerclosure
systems are beneficial for small-
volume parenterals However over-
all cost may still be higher per unit
than traditional vialstopper fill-
ing Vaccines and biologicals can
benefit from single-dose disposable
systems that drive down the cost
of the containerclosure system
This will assist the global supply to
developing world countries where
these products are truly neededrdquo
W B W i e d e r s e i m o f
PharmaBioSource in Wayne PA
states ldquoWe see smaller higher
technical facilities inclusive of dis-
posables (isolators and not RABS)
and advanced aseptic work cell
technology as the wave of the
futurerdquo
WhAt does the future hold
BioPlanrsquos survey data and indus-
try interviews indicate that fill
f inish will continue to be an
area of growth for CMOs that
maintain the required technical
quality and regulatory expertise
in this segment Experts have
taken note of CMOsrsquo introduc-
tion of smaller filling machines
for syringes or vials a trend that
may be in response to the indus-
try-wide move towards smaller-
scale manufactur ing projects
This shift may be accelerated by
the advent of biosimilars which
should provide an increasing
number of projects for fillfin-
ish CMOs although likely on a
smaller scale This increase in
projects could lead to potential
mergers and acquisitions with
some experts noting that fillfin-
ish CMOs are already engaging
in this trend toward larger capac-
ity and global operations
Indeed within the past 18
months a number of acquisi-
tions have occurred including
Pfizerrsquos acquisitions of Hospira
a nd In noPha r ma Pat heonrsquos
mergers in the contract services
space IDT Biolog ika invest-
ments Vet ter invest ing USD
$100 million to upgrade fill-fin-
ish facilities in the United States
a nd Ger ma ny a nd Ba xte r rsquos
investment in German facilities
and numerous others (3)
For CMOs to stay ahead of the
curve they will likely need to
continue to adopt disposables
technologies and advance their
automation in full isolators Ray
Cardin of PharMax Consulting
says ldquoIncreased use of dispos-
able pre-sterilized f illing tech-
nologies [are future trends] The
combination of these pre-ster-
ilized units with the coming of
age of ster i le connectors that
provide high sterility assurance
wwwbiopharminternationalcom June 2015 BioPharm International eBook 25
Outsourcing Resources FillFinish
Biologics Development and Manufacturing Trends Part II
Eric Langer Managing Partner BioPlan Associates talks about the results from BioPlan AssociatesOtilde 12th Annual Report and Survey of Biopharmaceutical Manufacturing Capacity and Production Langer discusses what respondents indicated as the number one trend in biologics manufacturing improving efficiencies and the biosimilars market
in less clean environments is
changing the way aseptic pro-
cesses are designedrdquo
Gordon Leichter PhD Eastern
r e g io n a l s a l e s m a n a ge r a t
Belimed in Charleston SC states
ldquoAutomat ion in fu l l i solators
wil l el iminate operator inter-
vention and laser-sealed vials
Automation will become more
integral to building automation
and enterprise systemsrdquo
Douglas Stockdale vice-presi-
dent CMCTechnical Operations
Hi l lhurst Biopharmaceut ica ls
Los Angeles CA says ldquoIndustry
will continue pushing the PAT
[process analytical technology]
envelope to f ind a lternat ive
methods to improve in-process
methodologies and processesrdquo
Fe r ne ma n add s ldquoCu r r e nt
trends in fillfinish innovation
will probably focus the market
authorization holders on a few
strategic products resulting in
outsourcing of a bigger share of
products overallrdquo
ConClusion
Until recently the handling of
ster i le l iquids in the pharma-
ceutical industry has relied on
relatively consistent techniques
during the past 100 years with
relatively slow changes in tech-
nologies and regulations result-
ing in incremental improvements
in safety efficiency and prod-
uct quality During the past 20
years however costly biologics
have taken a prominent indus-
try role The value of these drugs
can often be measured in tens of
thousands per dose This has put
greater pressure on these down-
stream fillfinish operations to
ensure quality safety and cost-
efficiency are not compromised
at this crucial late stage in manu-
facturing Trends in fillfinish for
recombinant therapeutics include
the increased use of isolator
technologies more high-speed
operations and other innovative
approaches including single-use
processing As a result of industry
research BioPlan expects more
outsourcing of fillfinish opera-
tions in coming years
referenCes 1 BioPlan Associates 12th Annual
Report and Survey of Biopharmaceutical
Manufacturing Capacity and Production
(Rockville MD April 2015) www
bioplanassociatescom
2 BioPlan Associates Trends in Aseptic
Bioprocessing Capacity for the Fill and
Finish of Recombinant Biologics An
Analysis of US and European In-house
Capacity and Capacity Utilization (BioPlan
Associates December 2014)
3 Information derived from BioPlan
Associatesrsquo BioFacilities Newsletters Bp
26 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Cell Therapy
Taking a ldquoDevelopment-by-Designrdquo
Approach to Cell Therapies
Whether outsourcing or developing cell therapies in-house success demands a focus on quality cost of goods
and sustainability from the start
Agnes shAnley
Cell therapies both autologous and allo-
geneic have come a long way in just a
few years Countries around the world
most recently Japan have passed regula-
tions designed to speed development of
these treatments which are now a big and growing
global business
In 2013 according to the Pharmaceutical Research
and Manufacturers Association 69 cell therapies six
of them autologous or patient-specific treatments
were in clinical trials or being reviewed in the United
States alone 15 of them in Phase III trials (1)
The road is littered with failures however often
in clinical stages This has been traced to problems
with manufacturing and failure to understand pro-
cess requirements earlier in the development process
Table I outlines manufacturing issues
As a growing number of Big Pharma companies
explore the potential for immune regenerative and
other cell therapies equipment manufacturers includ-
Agnes shAnley is senior editor of BioPharm International
SC
IEP
RO
GE
tt
y Im
aG
ES
wwwcytovancecomResponsive Reliable Resourceful
Your partner in biopharmaceutical contract manufacturing of therapeutic proteins and antibodies from mammalian cell culture and microbial fermentation
28 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Cell Therapy
ing Pall Corp EMD Millipore
and GE Biosystems have set up
centers of excellence to focus on
developing equipment for this
new market Engineering compa-
nies such as Invetech and Instrom
are developing equipment specific
to this niche
More CDMos are entering
Cell therapy Market niChe
Demand for spec ia l i zed ce l l
t he rapy ma nu fac t u r ing a nd
development serv ices is a lso
growing and has attracted Lonza
Bioservices Cognate BioServices
WuXi AppTech and Roslin Cells
among others
NeoStem is fol low ing t wo
paths pursuing its own cel l
therapy pipel ine and explor-
ing contract services through
its contract development and
manufac t u r ing organ i zat ion
(CDMO) subsidiary Progenitor
Cell Therapy (PCT) With bases
in Irvine and Mountain View CA
and Allendale NJ PCT is cur-
rently working with Intrexon and
Fibrocell on connective tissue
treatments and with the United
K ingdomrsquos Adapt immune on
oncology treatments
A new CEO David Mazzo with
a doctorate in analytical chemis-
try and experience running both
private and public international
biopharma companies assumed
NeoStemrsquos leadership in January
He sees no conflict between grow-
ing a pipeline and a contract man-
ufacturing business
ldquoWe are not trying to be two
di f ferent companies and we
do not see the two competing
with each otherrdquo says Mazzo
in an interview with BioPharm
Inte rnat ionalrsquos s i ster publ ica-
tion Pharmaceutical Technology
during his second week on the
job ldquoInstead there is a symbi-
otic relationship between themrdquo
As he sees it the companyrsquos
track record in developing prod-
ucts should attract more spon-
sors ldquoProblems in development
usually occur at the interfaces
Our unique experience of having
lsquodone that beforersquo should be help-
fulrdquo he says
In January PCT entered a
partnership with Invetech an
equipment design firm based in
Australia with offices in San Diego
to develop automated equipment
for cell therapy manufacturing Fig
ur
e 1
is
co
ur
te
sy
oF
in
ve
te
ch
Figure 1 Part of an automated solution being developed by neostem and invetech Automating processes is key to reducing costs
wwwbiopharminternationalcom June 2015 BioPharm International eBook 29
Outsourcing Resources Cell Therapy
The two companies have already
been working together for a year
now honing the design and speci-
fications for the instrumentation
says NeoStemrsquos Chief Scientific
Officer (CSO) Robert Preti The
equipment will tackle cell therapyrsquos
most challenging side autologous
treatments where the manufactur-
ing lot is the patient dose adminis-
tered at the patientrsquos bedside
As Preti notes there really isnrsquot
much available today in the way
of automated equipment for cell
therapy especially on the autolo-
gous side The equipment will sep-
arate and wash cells among other
functions
labor-intensive
proCesses aDD Cost
So far Preti says the company
is evaluating the evolving equip-
ment in NeoStemrsquos own manu-
facturing efforts ldquoOne of the
largest commercial bottlenecks
is the heavy labor required by
processes especially for patient-
specific uses where one batch is
one patientrdquo
The cost of goods i s ver y
high Preti says ldquoSuccess long-
term will require a whole new
approach to development The
goal is to provide high qual-
ity and sustainabilityrdquo he says
Removing manual operat ions
and human error from the pro-
cess will be crucial
Invetech has been work ing
on cell therapy process scale-up
automation for more than 10
years and has successfully com-
pleted projects in North America
Europe and Asia for companies
that include Argos Therapeutics
Aa s t rom CCR M Hu mac y te
Innovacell Janssen kSep Systems
MolMed Organovo and ViaCyte
accord ing to R ichard Grant
global VP of the companyrsquos bio-
pharma operations who has been
with the company for more than
14 years
ldquoThe goal is to develop a mix
of equipment and manufactur-
ing st rateg ies that maximize
quality scalability and sustain-
ability with an eye toward cost-
effect iveness and commercial
viabilityrdquo Grant says Invetechrsquos
solutions typically tailor a mix of
OEM and customized equipment
to the clientrsquos processes The com-
pany recently commercialized
equipment used to manufacture
Janssenrsquos macular degeneration
treatment
Costs of current manufactur-
ing processes for both autologous
and allogeneic therapies are dif-
ficult to peg Last year experts
at University College London
attempted to pinpoint the cost and
overall economics of allogeneic
cell therapy using single-use tech-
nologies (2)
What is clear for both alloge-
neic and autologous systems is
that cell therapy development
Table I Manufacturing scenarios for cell therapies
Attributes Off-the-shelf therapiesPatient-specifc
therapies
Source material Always allogeneic Autologous or matched allogeneic
Batch size Many patients One patient
Business model Similar to pharmabiopharma New
Scaling Scale up (Increased lot size) Scale out (Increased number of lots)
Comparability vs scale Higher concern Lower concern
Manufacturing design drivers
Mission critical success + +++
Optimized process yield +++ +
Dimensional efficiency ++ +-
Integration +- ++
Automation + ++
source invetech
Table II Measuring comparability risk
Risk level Example Timing
None Automated sterility test Before biologics license application
Low Change in process unit op and cell journey is the same
Before 50 accrual in pivotal trials
Medium Change in process unit op and cell journey is similar
Before initiation of pivotal clinical trials
High Change in process unit op and the cell journey is matched
Some Phase II clinical data
source invetech
30 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Cell Therapy
and manufacturing costs are cur-
rently prohibitive ldquoThe starting
points can vary dramaticallyrdquo
Grant says He recalls one cus-
tomer whose autologous process
ran to $80000 per patient in early
stage clinical trials Automation
he says could reduce costs by
40ndash90 depending on the ther-
apy involved
DevelopMent by Design
But before one can automate any
process one must understand it
NeoStem and PCT like a growing
number of companies are taking
the principle of quality by design
(QbD) to heart in their work
Mazzo arguably one of few
life-science company CEOs to
even articulate the QbD concept
explains that the company has
gone a step further and broadened
the International Conference on
Harmonization guidances adopted
by FDA into ldquodevelopment by
designrdquo (DbD)
ldquoWe say first consider the end-
point then take process as is and
understand its unit operations
Develop inputs and outputs and
discrete steps and define the pro-
cess in a way that promotes under-
standingrdquo he says
ldquoThis is challenging given prod-
uct complexity but there is a need
to understand the mechanism of
action very well so you put each
process in this overall envelope
of DbD and consider the cost of
goods scalability and sustainabil-
ityrdquo Preti adds ldquoYou consider the
process from the end only this
time each batch is an individual
patientrdquo
The critical part is defining and
measuring process needs he says
ldquoProduct definition is very impor-
tant particularly the quality target
product profilerdquo explains Brian
Hampson VP of manufacturing
development and engineering at
PCT in an Oct 22 2014 webcast
for the International Society for
Cell Therapy (3)
have the enD in MinD
Such t h ings a s for mulat ion
issues dosage potency impu-
rities residuals and microbial
assurance need to be thought out
clearly from the start Hampson
says as well as indications for
use geographic market projec-
tions cost-of-goods targets and
IP issues
The profile needs to be a liv-
ing document that changes as the
product takes shape Hampson
says There is a tendency for peo-
ple in the industry to ignore the
product profile until they have
all the answers says Hampson
ldquoInstead it needs to be developed
really early even when you donrsquot
have all or even many of the
answers hellip you can leave them
as blanks and continue to review
add to and updaterdquo
The result is not only a tool for
better understanding the prod-
uct process and mechanism of
action but a communication tool
for stakeholders
When to start DbD for cell ther-
apies ldquoThe temptation is to begin
later in the game when you need
reasonable COGS and you need
to be sure of sustainable manu-
facturingrdquo says Hampson ldquoThe
key thing is comparability and
anticipating its implications early
in the clinical program It needs
to be flexible at the early stagesrdquo
Hampson says ldquoBut as you near
Phase III you need to lock in your
equipment evolves
In the bioreactor area there is great interest in moving from 2-D to 3-D processing to enable the processing of the cell volumes required something that companies such as Israelrsquos Pluristem have been doing for some time
Equipment designer Instrom is partnering with companies including BRTI Life Sciences to focus on 3-D cell matrix technologies developed by Dr John Brekke EMD Millipore has been partnering with PharmaCell BV to use its Mobius bioreactor platform to expand and harvest HepRG cells GE Sciences is also evaluating Wave and other systems and set up a center of excellence in Wales recently
In other equipment areas Pall Corp has been partnering with CMDG LLC on cord blood processing technology Following are some of the equipment manufacturers and systems applied in cell therapy development and manufacturing
bull Beckman Coulter bull Corning Cell Stacks and Cell Cube
bull EMD Millipore bull GE Biosciences
bull Thermo Scientificrsquos Nunc Cell Factories bull Pall Corp
wwwbiopharminternationalcom June 2015 BioPharm International eBook 31
Outsourcing Resources Cell Therapy
processrdquo Table II summarizes issues
and points where changes will be
easier
Thus Hampson suggests that
companies whether work ing
with CDMOs or in house think
through such issues as cost of
goods scale and sustainabil-
ity much earlier than they typi-
cally do today ldquoYou donrsquot need to
spend money on these issues but
you do need to think about themrdquo
Hampson says ldquoQuality must be
a key issue even at Phase II trials
and early action pays off laterrdquo
In addition he suggests that
companies th ink about the
e nt i r e p r o c e s s c o mp r e he n -
sively ldquoThere is often a tendency
to focus on the core processing
stepsrdquo Hampson says ldquoBut you
really need to think about every-
thing from collection of mate-
rial through to administration
of product to the patient and all
steps in betweenrdquo
For ce l l therapies d ispos -
able equipment and closed pro-
cesses can be an effective way to
reduce costs and improve quality
and compliance ldquoThey can allow
you to isolate different processes
so that they can share a Class
100000 cleanroom environmentrdquo
Hampson says
ldquoInvesting in automated informa-
tion management can also pay offrdquo
he says ldquowhere an electronic batch
record system that is fully validated
can enable release-by-exception
reducing error documentation
time and overall quality assurance
costsrdquo Hampson says
In addition he notes it is
important to look at costs compre-
hensively an increase in one cost
can for example reduce overhead
improve process sustainability and
cost of goods Table III outlines the
issues
regulations evolve
Cell therapy is still a new area
for regulators and as Preti says
some guidelines are clear and oth-
ers arenrsquot ldquoDevelopment by design
is needed throughout the pro-
cess but the piece we still struggle
with the most is mode of action
(MOA) and product characteriza-
tion Regulatory agencies under-
stand that it is difficult to pinpoint
MOArdquo
Preti emphasizes the importance
of working with regulators ldquoYou
can be in a position to inform and
influence regulations as products
are developedrdquo he says
For any company moving into
this brave new world top-level ques-
tions are needed Preti says empha-
sizing the following ldquoDo you have
an understanding of scale Can you
scale up from very small Can you
characterize the process and control
it for reliability and qualityrdquo
In the stem cell area in particu-
lar this is crucial Preti said since
the product relies heavily on the
process ldquoManufacturing can be
thought of as patient administra-
tion It cannot be separated in
the same way that it can for tra-
ditional medicinesrdquo For contract
suppliers he adds demonstrated
success will be important and
sponsors should consider whether
a prospective partner will be able
to stay with them for the long run
referenCes 1 P Hourd et al Regulatory Challenges
for the Manufacture and Scale-
Out of Autologous Cell Therapies
Massachusetts General Hospital
(Cambridge MA 2013)
2 S Farid et al Biotechnol Bioeng
111(1) 69-83 (January 2014)
3 R Grant Building Deliverable Cell
Therapeutics A Methodical Approach
to Manufacturing Development
(Webinar Oct 22 2014) bp
source invetech
Justifcation driversChange in cost
doseDevelopment
estimate
Unit Op Ref
Change decription
Comparability risk
Quality COGs Scale Sustainability LaborMaterials outplant
Cost Time
P-2 Process change 1 Medium X X darr $ $$$ TT
P-3 Process change 2 High X X X darr $$$ $$$$ TTT
P-4 Process change 3 Low X X darr $$ $$ TTT
P-2 Process change 4 Low X $$ T
QC-4 In-house QC test None X TT
QA-1Electronic Batch
RecordNone X X X
darr $$$$
TTTT
Table III Process changes timing and comparability risks cogs is cost of goods Qc is quality control
32 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Intellectual Property
Protecting Intellectual Property
in Engagements with CMOs
Important IP contractual provisions should be included when working with CMOs
Jennifer L CoLLins
Biotechnology and pharmaceutical companies
often engage contract CMOs to assist with
the development of their drugs This type
of arrangement naturally involves the devel-
opment of intellectual property (IP) so it is
important for both the CMO and the sponsor to iden-
tify pre-existing intellectual property and also define
how rights to new IP will be allocated protected and
enforced by and between the companies
If the arrangement with the CMO is a traditional fee-
for-service arrangement where the company pays the
CMO service fees to perform development work on its
behalf then generally all new IP (other than improve-
ments to the CMOrsquos manufacturing technology) will be
owned by the biotechnology or pharmaceutical com-
pany that engaged the CMO On the other hand if the
arrangement between the CMO and the biotechnology
or pharmaceutical company is more of a collaborative
arrangement where both parties share the costs of devel-
opment as well as any profits from the commercializa-
tion then IP concerns become much more complicated
In that case in addition to describing which party will
Jennifer L CoLLins is a technology and licensing attorney with Morningstar Law Group jcollinsmorningstarlawgroupcom
Fa
na
tic S
tud
ioG
ett
y Im
ag
es
wwwbiopharminternationalcom June 2015 BioPharm International eBook 33
Outsourcing Resources Intellectual Property
own the new IP the contract should
sort out which party will be respon-
sible for obtaining and maintaining
patents on the new IP controlling
litigation against infringers and
defending the IP against challenges
In addition the parties should agree
upfront on how the IP may be used
by each party following various ter-
mination events so that the parties
are not left fighting about such mat-
ters at a time when they may not be
inclined to agree to anything
In both arrangements without
specific contractual provisions to
define and protect the new IP a
biotechnology company or phar-
maceutical company that uses a
CMO for development is at risk of
losing control of and possibly own-
ership of important improvements
to its drugs This article discusses
IP contractual provisions that
should be included in each type of
arrangement
Fee-For-service
development work
Traditionally CMOs perform fee-for-
service development work where
a biotechnology or pharmaceutical
company engages the CMO to per-
form this work for a fixed fee In this
type of arrangement the CMO is a
service provider and typically takes
no ownership interest in the drug or
product that is being developed or
in improvements to an existing drug
or product that is being tested or
developed The contract governing
the relationship nevertheless must
be clear about the IP rights that are
owned and licensed by each party
If the contract does not provide
for proper assignments of IP to the
biotechnology or pharmaceutical
company then it is likely that the
CMO will own any improvements
or other inventions that it develops
in the performance of the develop-
ment services even if that is not the
intent of the parties
Without signed written contracts
that state otherwise under United
States patent law the inventor of
a patentable invention or improve-
ment will own the invention or
improvement even if the inventor
is engaged to develop the invention
or the improvement for a customer
or other third party To ensure
that the biotechnology company or
pharmaceutical company obtains
all the patent and other IP rights
in developments inventions and
improvements created in the per-
formance of services by the CMO
the governing contract between the
biotechnology company or phar-
maceutical company and the CMO
must include written present assign-
ments of those IP rights from the
CMO to the company Indeed based
on recent cases it is crucial that the
assignment clause in the contract
be a ldquopresentrdquo assignment mean-
ing that it must state specifically
that the CMO ldquohereby assignshelliprdquo
rather than a clause stating that the
CMO ldquoagrees to assignrdquo rights in the
future Otherwise the contract will
be interpreted as a promise to assign
rights in the future and the bio
pharmaceutical company will have
to go back to the CMO at some later
point in time for a separate writ-
ten assignment of rights to obtain
all patent and other IP rights in the
developments
While it sounds logical and
straightforward that the CMO
would assign all inventions created
in the development work to its cus-
tomer it is not always that simple
in practice What if the CMO devel-
ops an improvement to its manu-
facturing process in the course of
the development work Most CMOs
will want to reserve ownership of
any improvements to the CMOrsquos
existing IP and confidential infor-
mation This position is not unrea-
sonable as long as the customer
ultimately has the rights it needs in
all new inventions including those
owned by the CMO to take the drug
forward through further develop-
ment and commercialization One
must sort out IP allocation by sub-
ject matter To achieve this allo-
cation the development contract
typically will state that each party
retains ownership of all IP that it
owns as of the date of the contract
(all pre-existing intellectual prop-
erty) It will also state that the cus-
tomer owns its proprietary drug
and all improvements to the drug
or the customerrsquos confidential infor-
mation developed by either or both
parties The development contract
also may state more generally that
the customer owns all inventions
improvements and IP rights related
to the customerrsquos drug With respect
to the CMO and its IP the develop-
ment contract may state that the
CMO owns all improvements to the
CMOrsquos manufacturing process and
to its other pre-existing intellectual
property Again this reservation is
not unreasonable The customer
however should determine whether
it requires access to those improve-
ments or inventions to complete the
development and commercialization
of its drug If such access is necessary
the customer should either negotiate
a license (which may be royalty-free
or royalty-based depending on the
circumstances) to use such improve-
ments or inventions to develop and
commercialize the drug or the cus-
tomer should negotiate the terms
under which the CMO will continue
to use the improvements or inven-
tions to perform development work
andor manufacture the drug for the
customer
In the fee-for-service arrange-
ment the assignment and licensing
of IP rights in new inventions and
improvements is the key intellectual
property issue Intellectual property
considerations become much more
complicated when the biotechnol-
34 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Intellectual Property
ogy or pharmaceutical company
partners with a CMO in the devel-
opment of a new drug or product
where the parties share development
costs and profits from commercial-
ization of the drug or product
cmo as collaborator
Although not as common as the
fee-for-service arrangement a CMO
may partner with a biotechnology
or pharmaceutical company in the
development and commercialization
of a drug or product Generally both
parties are bringing pre-existing IP
to the collaboration such as a drug
from a biopharmaceutical com-
pany and proprietary drug delivery
technology from the CMO In this
scenario the CMO is taking a long-
term interest and often a part-own-
ership interest in the success of the
drug product
Instead of getting paid an hourly
rate or fixed fee for development
work on the drug product the CMO
may share the cost of development
work with the biotechnology or
pharmaceutical partner in exchange
for a share of the profits when the
drug or product is commercialized
Other costs involved in the develop-
ment and commercialization of the
drug or product that may be shared
include the cost of patent prosecu-
tion and the cost of patent litigation
if the drug product is challenged or
if it is misappropriated or infringed
To secure its interest in the profits
from commercialization of the drug
product the CMO may want to take
an ownership interest in the intel-
lectual property rights in the drug
product All of these issues must be
carefully addressed in the develop-
ment contract to avoid both finan-
cial and IP disputes
As with the fee-for-serv ice
arrangement the parties must
allocate ownership of intellectual
property rights pertaining to the
drug product to be commercialized
These rights include both pre-exist-
ing IP rights and new inventions
and improvements developed in
the course of the development con-
tract As with the fee-for-service
arrangement the parties typically
will retain rights to their respec-
tive pre-existing IP Intellectual
property rights to new inventions
and improvements however may
be shared by giving each party a
co-ownership interest in the intel-
lectual property Alternatively such
rights may be allocated by inventor-
ship with each party taking owner-
ship of developments that it invents
and with the parties jointly own-
ing jointly developed inventions
As another alternative the IP rights
may be allocated by subject matter
as in the fee-for-service arrangement
with each party owning improve-
ments and inventions related to its
pre-existing IP regardless of which
party invents those improvements
and inventions
Depending on how the pat-
ent applications are drafted the
IP rights may be ldquosliced and dicedrdquo
more finely One party for example
could own patent rights for a drug
product for one indication while the
other party owns patent rights for
the same drug product for another
indication Decisions about how
to allocate the IP rights should be
made in consultation with intel-
lectual property counsel and must
take into account the manner in
which the drug will be commercial-
ized If one party for example is
to commercialize the product in
North America and Europe and
the other party is to commercialize
the product in the rest of the world
then either the patent ownership
should be allocated by territory or
the development contract should
include exclusive cross-licenses of
each partyrsquos rights in all the intel-
lectual property necessary to com-
mercialize the product with the first
party having an exclusive license to
commercialize the product in North
America and Europe and the second
party having an exclusive license to
commercialize the product in the
rest of the world
If the parties are going to share
ownership of the IP related to the
drug product then the develop-
ment contract also should specify
which party is responsible for pros-
ecuting and maintaining patents
on the drug product Regardless of
which party is responsible for patent
prosecution and maintenance the
other party should be consulted and
involved in key decisions regard-
ing patent prosecution and main-
tenance Unless there are multiple
patents for different indications that
will be commercialized exclusively
by one party and unless each party
has exclusive rights to commercial-
ize the drug product in particular
geographic areas it generally makes
sense for one party to take the pri-
mary responsibility for patent pros-
ecution and maintenance globally
with the other party consulting and
sharing in the cost of the prosecu-
tion and maintenance in accordance
with the profit sharing The party
that is not responsible for prosecu-
tion and maintenance should have
a contractual right to approve patent
counsel and review and approve pat-
ent filings office action responses
and other communications with
patent registries before they are filed
or submitted so that the parties
agree on the proper prosecution and
maintenance strategy
Likewise the development con-
tract should allocate the rights and
responsibilities for asserting and
defending the patents pertaining to
the product in litigation Often these
rights and responsibilities are allo-
cated by territory according to com-
mercialization rights If one party
for example has the exclusive right
to commercialize the drug product
wwwbiopharminternationalcom June 2015 BioPharm International eBook 35
Outsourcing Resources Intellectual Property
in the US then that party would
have the first right and responsibil-
ity to assert the patents on the drug
product against potential infringers
and defend the patents on the drug
product against infringement claims
in the US Likewise if one party has
the exclusive right to commercial-
ize the drug product for a particular
indication then that party would
have the first right and responsibility
to assert or defend the patents per-
taining to the product with respect
to that indication Both scenarios
can present challenges First some
courts will not recognize an exclu-
sive licensee as having standing to
assert a patent That court might
only allow the owner of the patent
(and not the exclusive licensee) to
bring a lawsuit asserting the patent
It is crucial therefore that contrac-
tual provisions relating to patent liti-
gation require the party that owns
the patent to cooperate in any litiga-
tion and to join the suit as a party if
necessary
Another potential problem is that
any litigation that asserts the pat-
ent is likely to draw a counterclaim
that the patent is invalid thus put-
ting the patent itself at risk of invali-
dation While one party might be
threatened by a potential infringer
in a particular market or for a partic-
ular indication and therefore might
want to assert the patent against the
potential infringer the other party
might not want to put the patent at
risk as to other markets and other
indications For these reasons the
contractual provisions pertaining
to patent litigation must be care-
fully drafted in consultation with
intellectual property counsel who
understands standing issues and
the potential areas for dispute The
contractual provisions also should
include dispute resolution provi-
sions for situations when the parties
do not agree on whether a patent
should be asserted
Finally while the parties may
want and expect their relationship
to continue for the full term of the
patents and the development con-
tract the parties must carefully
consider the IP ramifications of an
early termination of the develop-
ment contract and the relationship
particularly if the development con-
tract is terminated for breach If the
parties are sharing in the ownership
commercialization and profits gen-
erated by the drug product devel-
oped by the collaboration then
all of that must be unwound upon
termination The development
contract should be as specific as
possible with respect to the effect of
various types of termination on the
intellectual property and contin-
ued commercialization of the drug
product In particular the parties
may agree that if the development
contract is terminated due to breach
by one party then that breaching
party must relinquish and transfer
all of its rights with respect to the
drug product to the other party to
allow the non-breaching party to
continue the commercialization of
the drug product post-termination
Whether the necessary rights are
assigned or licensed whether the
terminated party should receive a
royalty for the transfer or license of
those rights and what if any pre-
existing IP is licensed to enable the
non-breaching party to continue
commercializing the drug product
are all key factors for negotiation
The development contract should
also address other types of termi-
nation such as termination for
insolvency and termination with-
out cause (ie if one party decides
it no longer wants to commercial-
ize the drug product) In each case
the effect of termination on the IP
rights should be carefully analyzed
and a competent IP counsel should
carefully draft post-termination
assignments and licenses
conclusion
While IP lawyers are not equipped
with crystal balls they can be
extremely helpful in analyzing par-
ticular development commercializa-
tion and post-termination scenarios
all of which affect IP in a drug devel-
opment arrangement Contractual
provisions related to IP must be
carefully drafted to align with the
strategic business objectives of any
relationship and particularly one
whose purpose is the development
and commercialization of intellec-
tual property Without a clear con-
tract each collaborator is at risk of
losing important rights bp
Ad Index
AJINOMOTO ALTHEA 21
AVID BIOSERVICES INC 15
CYTOVANCE BIOLOGICS 27
EMERGENT BIOSOLUTIONS 13
EUROFINS LANCASTER LABORATORIES 7
SAFC BIOSCIENCES SIGMA ALDRICH 17
THERMO FISHER SCIENTIFIC 23
TOSOH BIOSCIENCE 11
WATERS CORP 3
Company Page
![Page 17: OUOURT NG I C RESOURCESfiles.pharmtech.com/alfresco_images/pharma/2019/03/08/... · 2019-07-22 · VIDEO INTERVIEW Biologics Development and Manufacturing Trends: Part I ... Media](https://reader034.vdocuments.us/reader034/viewer/2022050113/5f4aca886c0d6724390eb040/html5/thumbnails/17.jpg)
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18 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources CROCMO Viewpoints
and which are not currently ame-
nable to continuous processing
the Rise of biosimilaRs
BioPharm What impact w i l l
biosimilar drugs have on bio-
pharma businesses bioprocessing
approaches and the contract ser-
vices market
Rogers (SGS Life Science Services)
The European biopharma land-
scape has already experienced
impact of the biosimilar drug mar-
ket leading to rapid expansion of
traditional small molecule generic
manufactures into the bio arena
Recent FDA approval of the Sandoz
biosimilar Zarixo may be the seed
for similar changes in the US pro-
viding a potential new line of busi-
ness for established pharmaceutical
companies Contract service pro-
viders such as SGS who already
have considerable experience with
biosimilars are able to offer exper-
tise to businesses new to this mar-
ket and will no doubt benefit from
such expansion in the US
Lively (PPD) Increased invest-
ment in biosimilars is driving
interest in improving and stream-
lining the development processes
as well as the sensitivity and scope
of characterization assays used to
compare biosimilars and innova-
tor drugs The expanding capac-
ity needs result in partnerships
between clients and their contrac-
tors with the systems experience
and expertise to achieve the qual-
ity and speed required while meet-
ing all regulatory expectations for
product approval
Chambers (SGS) With nearly
20 years exper ience perform-
ing biosimilar analysis the big-
gest impact had been the massive
increase in the characterization
needed for biosimilars compared
to innovators (although higher
standards are now needed for new
innovators too) This has resulted
CMOs Add Capabilities
Consolidation in the contract development and manufacturing market has resulted in new capabilities and facility expansions
In May 2015 CMC Biologics announced that it is expanding its Copenhagen Denmark facility to increase its manufacturing capacity through the installation of six 2000-L bioreactors The bioreactors can be run singly or in groups simultaneously or sequentially and are part of the companyrsquos signature Bioreactor 6Pack single-use program The Copenhagen installation will begin initial GMP production in November 2015 and will feature three bioreactors to start Three bioreactors will be added at a later date to complete the configuration Meanwhile the Bioreactor 6Pack at CMCrsquos Seattle facility will complete its first GMP run in mid-2015 and will be ready for commercial launch by the end of the year Through its recent expansions CMC plans to expand its global capacity by more than 30000 liters in the United States and Europe
Also in May 2015 SAFC announced an expansion to its St Louis MO facility to support the commercial-scale production of antibody-drug conjugates The facility which is expected to be online and operational in the third quarter of 2015 was designed to meet SafeBridge category 4 compound handling requirements for highly active or cytotoxic compounds The expansion of an existing Carlsbad CA location will enable SAFC to offer fillfinish capabilities of viral products to its clients in the gene therapy viral vaccine and immunotherapy sectors
Rentschler announced in March 2015 that a 2000-L bioreactor that the company commissioned and built in six months is up and running The bioreactor will be integrated into existing manufacturing suites containing two 1000-L single-use bioreactors according to a company statement The companyrsquos twin bioreactor systemmdashdesigned for running two main bioreactors in parallel with one shared downstream processing unitmdashwill be functional by 2017 The twin system is estimated to double the companyrsquos production capacities for cell culture-derived proteins
In December 2014 FUJIFILM Diosynth Biotechnologies USA (FDBU) acquired Kalon Biotherapeutics adding viral and cell-culture vaccine expertise and capabilities In other activity FDBU started construction of a three-story 62000-ft2 facility in Research Triangle Park NC in January 2015 to house the companyrsquos process and analytical research and development process sciences and stability groups The expected completion date is Q4 2015
In September 2014 PCI a provider of packaging services acquired Biotec Services International a provider of clinical-trial services and temperature-controlled pharmaceutical services headquartered in Bridgend Wales UK The addition expanded PCIrsquos presence in the European Union and added packaging storage and distribution capacity and consultative services for clinical-trial supplies In January 2015 Biotec announced the validation of its clinical supply facility expansion which added almost 50 to the companyrsquos clinical trial materials handling capacity
wwwbiopharminternationalcom June 2015 BioPharm International eBook 19
Outsourcing Resources CROCMO Viewpoints
in challenges in data handling
interpretation and data presenta-
tion Biosimilars have also caused
the re-emergence of orthogonal
techniques like size exclusion
chromatographyndashmulti-angle laser
light scattering (SEC-MALL) and
SV-AUC for aggregation and cir-
cular dichroism (CD) and fourier
transform infrared spectroscopy
(FTIR) for higher-order structure
as critical analyses to understand
and compare and detect subtle
higher-order structural differences
between innovator and biosimilar
samples
Hartzel (Catalent Pharma Solutions)
The rise of biosimilar drugs will
dawn the next generation of bio-
logic manufacturing and force
the industry to look at new ways
of manufacturing to drive down
costs Therefore the industry will
seek new manufacturing partners
with strong technical expertise to
drive out costs through innovation
and operational excellence
Lorimer (Patheon Biologics)
Genera l ly b ios imi la r d r ugs
will encourage competitiveness
within the biopharma sector
Biomanufacturers expect increased
pressure on cost of goods and
pricing Biopharmaceutical con-
tract service providers with a flex-
ible multi-product operation and
proven track record in the indus-
try are well placed to ensure care-
ful control of manufacturing costs
and product quality Processing
approaches wonrsquot change in terms
of technology but there will be a
greater emphasis on operational
excellence to reduce costly inef-
ficiencies and improve yields from
bioprocesses As more biosimilars
come to the forefront and as the
industry trend for outsourcing
continues increasing operational
flexibility while maintaining the
highest quality standards will be
the keys to success
business challenges
BioPharm What is the greatest
business challenge facing biophar-
maceutical companies today
Lively (PPD) As with all phar-
maceutical drug development the
greatest challenge is getting new
life-changing and potentially life-
saving drug candidates to mar-
ket Biopharmaceuticals face more
challenges than traditional small-
molecule drug products because
the science of characterization
of such biologic drugs is rapidly
evolving along with the regulatory
landscape Those companies that
are best able to successfully char-
acterize and differentiate innovator
and biosimilar products for safety
and efficacy will have the greatest
opportunity to benefit
the knowledge gap
BioPharm In what areas do you
see knowledge or expertise gaps in
current biopharmaceutical compa-
nies Why do these gaps exist
Lorimer (Patheon Biologics) There
is a gap in translating good sci-
ence to industrial applications of
technologies that provide for reli-
able efficient cost effective man-
ufacturing at commercial scale
Maintaining a focus during early
development on eventual commer-
cial manufacturing requirements
while balancing limited develop-
ment resources requires a broad
base of coordinated organiza-
tional skillsets and a disciplined
approach
Hartzel (Catalent Pharma Solutions)
Devicedelivery expertise is an
area that has a potential gap For
biologics the historic default con-
tainer closure has been a tradi-
tional glass vial As the healthcare
industry seeks ways to improve
patient care and reduce costs the
delivery to the patient needs to
adopt new technologies and this
is why we have seen a rise of pre-
filled syringes and autoinjectors
These technologies will continue
to evolve and so will the demand
for devicedelivery experts
Lively (PPD) One of the chal-
lenges we see is the various levels
of knowledge and expertise that
exist between biopharmaceutical
RampD and the testing and regula-
tory industries That differential is
impacting those industriesrsquo ability
to fully consider and effectively
implement expectations and guid-
ance for physicochemical and
functional characterization expec-
tations of biologic drugs
Lorimer (Patheon Biologics) The
commercial biopharmaceutical
industry demands global sourc-
ing of materials services supply
and ultimately distribution to each
patient This requires a robust inte-
grated supply chain to deliver high
value products to patients on-time
and at the right quality Doing this
reliably and efficiently with long
production lead times and uncer-
tain market sales forecasts is an
industry wide challenge
Speed-to-market remains a key
challenge to the development of
biopharmaceuticals Speedy first-
time-in-man clinical trials can be
a major hurdle for small biotech
companies and large pharma alike
Rogers (SGS Life Science Services)
I believe there continues to be a
significant problem in the level of
fundamental scientific expertise
within many biopharmaceutical
businesses In part this may be
attributed to the lsquokitrsquo and lsquoblack
boxrsquo approach of many modern
day technologies Due to the
complexity of many biopharma-
ceuticals their development and
success as therapeutics requires a
comprehensive range of scientific
disciplines and expertise which
can be difficult to fully realize
internally particularly for small
and mid-size companies bp
20 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources FillFinish
FillFinish Trends
Automation and disposables continue to reduce human error
Eric s LangEr
Fillfinish operations continue to be domi-
nated by trends in automation and the adop-
tion of single-use equipment But these are
by no means the only factors affecting these
high-value operations according to BioPlan
Associatesrsquo latest biomanufacturing study (1) Fill
finish processes are among the most outsourced
activities in biomanufacturing today and a service
providerrsquos capacity for vialing pre-filled devices
and lyophilization is crucial In a recently pub-
lished whitepaper (2) BioPlan Associates determined
that there is sufficient global in-house capacity
for biologics but the need continues to grow for
greater access to specialized outsourcing competence
Whatrsquos trending is significant improvements in auto-
mation and operations
AutomAtion And single use defining Cmo strAtegy
The top trends today involve automation and devel-
opment of better disposable technologies As part of
the BioPlan study biomanufacturers were asked to
select the trends they believe to be the most impor-
tant in fill and finish today The top three trends
are single-use equipment automation in full isolator
units and facilities becoming multi-product ori-
ented (see Figure 1)
Other important trends were noted including
bull Increased serialization and product labeling for
anti-counterfeiting
Eric s LangEr is president and managing partner at BioPlan Associates Inc elangerbioplanassociatescom tel 3019215979 wwwbioplanassociatescom
Ma
ria T
ou
tou
da
ki
Ge
tty Im
ag
es
WITH ALTHEA YOU HAVE THE POWER TO MAKE
You have the power to make a difference To make new therapeutics that improve quality of life and inspire a healthier world To do this you need a manufacturing partner who embraces your every challenge as its own who shares your unwavering tenacity and dedication from clinical studies through commercial success Thats The Power To Make
PLAY VIDEO
CONTRACT
MANUFACTURING
Q Development
Drug Substance
lj Drug Product
(D Al TH EA I THE POWER TO MAK A MEMBER OF THE AJINOMOTO GROUP
22 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources FillFinish
bull More f i l l f i n i sh fac i l i t ie s
o p e r a t i n g i n d e v e lo p i n g
regions
bull C o m p u t e r - b a s e d v i s u a l
i n s p e c t i o n a r t i f i c i a l
intelligence
bull Use of complex administration
systems
single-use equipment in fillfinish operAtionsT h e a d o p t i o n o f d i s p o s -
ab le e qu ipme nt i n f i l l f i n -
i s h o p e r a t i o n s e l i m i n a t e s
cross-contamination risks and
adds flexibility in process scale
While regulatory rest r ic t ions
may be increased by the adop-
tion of such equipment single-
use appl icat ions a lso enable
contract manufactur ing orga-
nizat ions (CMOs) to increase
fac i l i t y ut i l i z at ion t h rough
multi-product strategies which
can decrease their cost of goods
Experts in the f ield discussed
these trends
Peter Pekos CEO and president
of Dalton Pharma Services a fill
finish CMO says ldquoFor a CMO
disposables can be attractive hellip
For example a disposable isola-
tor can be packed and stored pre-
sterilized for use when needed
a f ixed isolator requires f ixed
space at all times Disposables
also allow a CMO to handle proj-
ects using specific systems for
non-typical project needs such
as disposable isolators without
going to the expense of buying
permanent isolator infrastruc-
ture Disposables do not obviate
the need for technical expertise
hellip so the need for a CMO isnrsquot
really reduced In fact CMOs
with expertise in single-use sys-
tems hellip can make them more
attractiverdquo
Mar t ina Fe r neman cor po -
rate development manager at
Recipharm bel ieves that the
adoption of single-usedispos-
able equipment is now impacting
f i l l and f inish ldquoIn mult ipur-
pose sites the cleaning proce-
dures will become more crucial
to avoid cross contamination
Single-use equipment [also] has
the advantage of shorter lead
t imes and lower procurement
costs Since no cleaning proce-
dure has to be established and
aseptic connections are easier to
be built-up the use of single-
use equipment is not only faster
but also safer than conventional
equipmentrdquo
AutomAtion in full isolAtor unitsW hi le s ing le -use equ ipment
adoption may be one of the hot-
test f i l lf inish trend automa-
tion technologies may actually
be experiencing more rapid rates
of implementation among bio-
manufacturers Indeed sepa-
rate results from BioPlanrsquos 12th
annual study suggest that the
industry wi l l be as l ikely to
implement automation technolo-
gies as they will use single-use
f i l l-f inish devices dur ing the
next 24 months
The removal of human factors
is a key to improving product
quality Isolators and automa-
tion are therefore key drivers
as facilities seek to improve their
i n f r a s t r u c t u r e I n nov a t io n
around equipment and facilities
able to handle multiple products
is going to continue Flexibility
is key as the reduced flexibility
of isolators (and higher cost) in
relation to traditional restricted
access barrier (RAB) systems may
deter some CMOs from adopt-
ing isolators The jury is st i l l
out because the decision fac-
tors between RAB and isolators
are complex and this tends to be
a high-cost decision often left
to the larger f illf inish CMOs
ldquoCMOs will adopt isolator tech-
nologies in their processes to
meet industry needs and reduce
r isk In some cases this wil l
also include disposable isolators
which can offer the benefits of
fixed isolators but add a degree
of f lexibil ity to the manufac-
turerrdquo Pekos notes
According to Ferneman adopt-
ing automat ion in ful l isola-
tor units to reduce the need for
operators is a trend seen in the
CMO market ldquoUse of barr ier
technology (RABS or isolators)
should ensure optimal protec-
t ion of ster i le areas Isolators
bear a better potential to prevent
biocontamination Since the iso-
lator is a closed system a lower
air quality than in RABS systems
can be usedrdquo For freeze-dried
products the RABS system is a
better choice because loading
has to be performed in class AB
surrounding
Fig
ur
e 1
is
co
ur
te
sy
oF
th
e a
ut
ho
r
Figure 1 selected bioprocessing fllfnish trends in 2015
Single-usedisposable equipment
adoption55
36
35Facilities becoming more multi-
product-use oriented
Automation in full isolator units
reduce need for operators
More compounds More accuratelyFaster than ever
Quantitation transformed
Todayrsquos range of possible therapeutic agents from small molecules to peptides to antibodies and
ADCrsquos makes quantitative bioanalysis a challenge Quantify potential therapeutics faster and more
accurately with our new portfolio of LC-MS instruments sample prep solutions and software HRAM
solutions using Thermo Scienti ctrade Orbitraptrade MS enables selectivity for complex molecules while
triple quadrupole MS delivers SRM sensitivity and speed to detect targeted compounds more quickly
Meet todayrsquos challenges with us and together wersquoll transform quantitative bioanalysis
Thermo Scienti ctrade Orbitrap Fusiontrade MSUnprecedented depth of analysis and
throughput for biological discovery
Thermo Scienti ctrade TSQ Quantivatrade MSLeading SRM sensitivity and speed
in a triple quadrupole MSMS
Thermo Scienti ctrade Q Exactivetrade MSScreen and quantify known and unknown targets with HRAM Orbitrap technology
copy 2
014
Ther
mo
Fish
er S
cien
tifi c
Inc
All
right
s re
serv
ed A
ll tr
adem
arks
are
th
e pr
oper
ty o
f The
rmo
Fish
er S
cien
tifi c
and
its
subs
idia
ries
bull Discover more at thermoscienti ccomquan-transformed
24 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources FillFinish
Cmos stAying
AheAd of the Curve
In the whitepaper on in-house
fillfinish operations for recom-
binant therapeutics (2) BioPlan
found relatively low average in-
house capacity utilization rates
for lyophilization (55) pre-filled
devices (58) and vialing (70)
This finding suggests that for fill
finish CMOs the real value isnrsquot
necessarily in providing additional
flexible capacity but rather in posi-
tioning themselves as providing
highly sophisticated and novel
technologies and expertise in fill
finish services Indeed CMOs are
expected to have state-of-the-art
equipment As Pekos notes ldquoCMOs
who implement flexible and inno-
vative technologies to make man-
ufacturing or development more
efficient faster compliant or more
economical all serve to make them
more attractive to customersrdquo
For CMOs that make use of
innovative fillfinish technologies
there appears to be a good deal
of demand Results from BioPlanrsquos
annual studies indicate that fill
finish services are among the most
widely and heavily outsourced
biomanufacturing activities today
and are also among the activities
that biomanufacturers are most
likely to outsource at significantly
higher levels in the future
Biomanufacturers and CMOs are
actively looking to their fillfin-
ish equipment suppliers and are
beginning to demand additional
new technologies innovation and
product development In 2014 for
example when the top areas that
biomanufacturers wanted their
suppliers to focus their develop-
ment efforts on were measured
fillfinish services topped the list
cited by 23 of biomanufacturers
Not only did that figure represent
a substantial increase from years
past (13 in 2011) but it was also
ahead of other services including
upstream and downstream process
development services
Fillfinish will continue
to be an area of
growth for CMOs
There are a number of areas in
which suppliers can add value to
fillfinish innovation according
to industry experts Jim Agalloco
president of Agalloco amp Associates
in Belle Mead NJ says ldquovendors of
equipment and components to fill
finish must continue their roles as
technology leaders Innovation in
this market has always been sup-
plier driven because the operating
firms do not have the necessary
expertise Collaboration between
equipment manufacturers and
component suppliers is essential
for implementation of new con-
tainer systems single-use dispos-
ables and other advancesrdquo
Ronald Malone senior principal
scientist at Novartis Vaccines says
ldquoBlow-fill-seal containerclosure
systems are beneficial for small-
volume parenterals However over-
all cost may still be higher per unit
than traditional vialstopper fill-
ing Vaccines and biologicals can
benefit from single-dose disposable
systems that drive down the cost
of the containerclosure system
This will assist the global supply to
developing world countries where
these products are truly neededrdquo
W B W i e d e r s e i m o f
PharmaBioSource in Wayne PA
states ldquoWe see smaller higher
technical facilities inclusive of dis-
posables (isolators and not RABS)
and advanced aseptic work cell
technology as the wave of the
futurerdquo
WhAt does the future hold
BioPlanrsquos survey data and indus-
try interviews indicate that fill
f inish will continue to be an
area of growth for CMOs that
maintain the required technical
quality and regulatory expertise
in this segment Experts have
taken note of CMOsrsquo introduc-
tion of smaller filling machines
for syringes or vials a trend that
may be in response to the indus-
try-wide move towards smaller-
scale manufactur ing projects
This shift may be accelerated by
the advent of biosimilars which
should provide an increasing
number of projects for fillfin-
ish CMOs although likely on a
smaller scale This increase in
projects could lead to potential
mergers and acquisitions with
some experts noting that fillfin-
ish CMOs are already engaging
in this trend toward larger capac-
ity and global operations
Indeed within the past 18
months a number of acquisi-
tions have occurred including
Pfizerrsquos acquisitions of Hospira
a nd In noPha r ma Pat heonrsquos
mergers in the contract services
space IDT Biolog ika invest-
ments Vet ter invest ing USD
$100 million to upgrade fill-fin-
ish facilities in the United States
a nd Ger ma ny a nd Ba xte r rsquos
investment in German facilities
and numerous others (3)
For CMOs to stay ahead of the
curve they will likely need to
continue to adopt disposables
technologies and advance their
automation in full isolators Ray
Cardin of PharMax Consulting
says ldquoIncreased use of dispos-
able pre-sterilized f illing tech-
nologies [are future trends] The
combination of these pre-ster-
ilized units with the coming of
age of ster i le connectors that
provide high sterility assurance
wwwbiopharminternationalcom June 2015 BioPharm International eBook 25
Outsourcing Resources FillFinish
Biologics Development and Manufacturing Trends Part II
Eric Langer Managing Partner BioPlan Associates talks about the results from BioPlan AssociatesOtilde 12th Annual Report and Survey of Biopharmaceutical Manufacturing Capacity and Production Langer discusses what respondents indicated as the number one trend in biologics manufacturing improving efficiencies and the biosimilars market
in less clean environments is
changing the way aseptic pro-
cesses are designedrdquo
Gordon Leichter PhD Eastern
r e g io n a l s a l e s m a n a ge r a t
Belimed in Charleston SC states
ldquoAutomat ion in fu l l i solators
wil l el iminate operator inter-
vention and laser-sealed vials
Automation will become more
integral to building automation
and enterprise systemsrdquo
Douglas Stockdale vice-presi-
dent CMCTechnical Operations
Hi l lhurst Biopharmaceut ica ls
Los Angeles CA says ldquoIndustry
will continue pushing the PAT
[process analytical technology]
envelope to f ind a lternat ive
methods to improve in-process
methodologies and processesrdquo
Fe r ne ma n add s ldquoCu r r e nt
trends in fillfinish innovation
will probably focus the market
authorization holders on a few
strategic products resulting in
outsourcing of a bigger share of
products overallrdquo
ConClusion
Until recently the handling of
ster i le l iquids in the pharma-
ceutical industry has relied on
relatively consistent techniques
during the past 100 years with
relatively slow changes in tech-
nologies and regulations result-
ing in incremental improvements
in safety efficiency and prod-
uct quality During the past 20
years however costly biologics
have taken a prominent indus-
try role The value of these drugs
can often be measured in tens of
thousands per dose This has put
greater pressure on these down-
stream fillfinish operations to
ensure quality safety and cost-
efficiency are not compromised
at this crucial late stage in manu-
facturing Trends in fillfinish for
recombinant therapeutics include
the increased use of isolator
technologies more high-speed
operations and other innovative
approaches including single-use
processing As a result of industry
research BioPlan expects more
outsourcing of fillfinish opera-
tions in coming years
referenCes 1 BioPlan Associates 12th Annual
Report and Survey of Biopharmaceutical
Manufacturing Capacity and Production
(Rockville MD April 2015) www
bioplanassociatescom
2 BioPlan Associates Trends in Aseptic
Bioprocessing Capacity for the Fill and
Finish of Recombinant Biologics An
Analysis of US and European In-house
Capacity and Capacity Utilization (BioPlan
Associates December 2014)
3 Information derived from BioPlan
Associatesrsquo BioFacilities Newsletters Bp
26 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Cell Therapy
Taking a ldquoDevelopment-by-Designrdquo
Approach to Cell Therapies
Whether outsourcing or developing cell therapies in-house success demands a focus on quality cost of goods
and sustainability from the start
Agnes shAnley
Cell therapies both autologous and allo-
geneic have come a long way in just a
few years Countries around the world
most recently Japan have passed regula-
tions designed to speed development of
these treatments which are now a big and growing
global business
In 2013 according to the Pharmaceutical Research
and Manufacturers Association 69 cell therapies six
of them autologous or patient-specific treatments
were in clinical trials or being reviewed in the United
States alone 15 of them in Phase III trials (1)
The road is littered with failures however often
in clinical stages This has been traced to problems
with manufacturing and failure to understand pro-
cess requirements earlier in the development process
Table I outlines manufacturing issues
As a growing number of Big Pharma companies
explore the potential for immune regenerative and
other cell therapies equipment manufacturers includ-
Agnes shAnley is senior editor of BioPharm International
SC
IEP
RO
GE
tt
y Im
aG
ES
wwwcytovancecomResponsive Reliable Resourceful
Your partner in biopharmaceutical contract manufacturing of therapeutic proteins and antibodies from mammalian cell culture and microbial fermentation
28 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Cell Therapy
ing Pall Corp EMD Millipore
and GE Biosystems have set up
centers of excellence to focus on
developing equipment for this
new market Engineering compa-
nies such as Invetech and Instrom
are developing equipment specific
to this niche
More CDMos are entering
Cell therapy Market niChe
Demand for spec ia l i zed ce l l
t he rapy ma nu fac t u r ing a nd
development serv ices is a lso
growing and has attracted Lonza
Bioservices Cognate BioServices
WuXi AppTech and Roslin Cells
among others
NeoStem is fol low ing t wo
paths pursuing its own cel l
therapy pipel ine and explor-
ing contract services through
its contract development and
manufac t u r ing organ i zat ion
(CDMO) subsidiary Progenitor
Cell Therapy (PCT) With bases
in Irvine and Mountain View CA
and Allendale NJ PCT is cur-
rently working with Intrexon and
Fibrocell on connective tissue
treatments and with the United
K ingdomrsquos Adapt immune on
oncology treatments
A new CEO David Mazzo with
a doctorate in analytical chemis-
try and experience running both
private and public international
biopharma companies assumed
NeoStemrsquos leadership in January
He sees no conflict between grow-
ing a pipeline and a contract man-
ufacturing business
ldquoWe are not trying to be two
di f ferent companies and we
do not see the two competing
with each otherrdquo says Mazzo
in an interview with BioPharm
Inte rnat ionalrsquos s i ster publ ica-
tion Pharmaceutical Technology
during his second week on the
job ldquoInstead there is a symbi-
otic relationship between themrdquo
As he sees it the companyrsquos
track record in developing prod-
ucts should attract more spon-
sors ldquoProblems in development
usually occur at the interfaces
Our unique experience of having
lsquodone that beforersquo should be help-
fulrdquo he says
In January PCT entered a
partnership with Invetech an
equipment design firm based in
Australia with offices in San Diego
to develop automated equipment
for cell therapy manufacturing Fig
ur
e 1
is
co
ur
te
sy
oF
in
ve
te
ch
Figure 1 Part of an automated solution being developed by neostem and invetech Automating processes is key to reducing costs
wwwbiopharminternationalcom June 2015 BioPharm International eBook 29
Outsourcing Resources Cell Therapy
The two companies have already
been working together for a year
now honing the design and speci-
fications for the instrumentation
says NeoStemrsquos Chief Scientific
Officer (CSO) Robert Preti The
equipment will tackle cell therapyrsquos
most challenging side autologous
treatments where the manufactur-
ing lot is the patient dose adminis-
tered at the patientrsquos bedside
As Preti notes there really isnrsquot
much available today in the way
of automated equipment for cell
therapy especially on the autolo-
gous side The equipment will sep-
arate and wash cells among other
functions
labor-intensive
proCesses aDD Cost
So far Preti says the company
is evaluating the evolving equip-
ment in NeoStemrsquos own manu-
facturing efforts ldquoOne of the
largest commercial bottlenecks
is the heavy labor required by
processes especially for patient-
specific uses where one batch is
one patientrdquo
The cost of goods i s ver y
high Preti says ldquoSuccess long-
term will require a whole new
approach to development The
goal is to provide high qual-
ity and sustainabilityrdquo he says
Removing manual operat ions
and human error from the pro-
cess will be crucial
Invetech has been work ing
on cell therapy process scale-up
automation for more than 10
years and has successfully com-
pleted projects in North America
Europe and Asia for companies
that include Argos Therapeutics
Aa s t rom CCR M Hu mac y te
Innovacell Janssen kSep Systems
MolMed Organovo and ViaCyte
accord ing to R ichard Grant
global VP of the companyrsquos bio-
pharma operations who has been
with the company for more than
14 years
ldquoThe goal is to develop a mix
of equipment and manufactur-
ing st rateg ies that maximize
quality scalability and sustain-
ability with an eye toward cost-
effect iveness and commercial
viabilityrdquo Grant says Invetechrsquos
solutions typically tailor a mix of
OEM and customized equipment
to the clientrsquos processes The com-
pany recently commercialized
equipment used to manufacture
Janssenrsquos macular degeneration
treatment
Costs of current manufactur-
ing processes for both autologous
and allogeneic therapies are dif-
ficult to peg Last year experts
at University College London
attempted to pinpoint the cost and
overall economics of allogeneic
cell therapy using single-use tech-
nologies (2)
What is clear for both alloge-
neic and autologous systems is
that cell therapy development
Table I Manufacturing scenarios for cell therapies
Attributes Off-the-shelf therapiesPatient-specifc
therapies
Source material Always allogeneic Autologous or matched allogeneic
Batch size Many patients One patient
Business model Similar to pharmabiopharma New
Scaling Scale up (Increased lot size) Scale out (Increased number of lots)
Comparability vs scale Higher concern Lower concern
Manufacturing design drivers
Mission critical success + +++
Optimized process yield +++ +
Dimensional efficiency ++ +-
Integration +- ++
Automation + ++
source invetech
Table II Measuring comparability risk
Risk level Example Timing
None Automated sterility test Before biologics license application
Low Change in process unit op and cell journey is the same
Before 50 accrual in pivotal trials
Medium Change in process unit op and cell journey is similar
Before initiation of pivotal clinical trials
High Change in process unit op and the cell journey is matched
Some Phase II clinical data
source invetech
30 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Cell Therapy
and manufacturing costs are cur-
rently prohibitive ldquoThe starting
points can vary dramaticallyrdquo
Grant says He recalls one cus-
tomer whose autologous process
ran to $80000 per patient in early
stage clinical trials Automation
he says could reduce costs by
40ndash90 depending on the ther-
apy involved
DevelopMent by Design
But before one can automate any
process one must understand it
NeoStem and PCT like a growing
number of companies are taking
the principle of quality by design
(QbD) to heart in their work
Mazzo arguably one of few
life-science company CEOs to
even articulate the QbD concept
explains that the company has
gone a step further and broadened
the International Conference on
Harmonization guidances adopted
by FDA into ldquodevelopment by
designrdquo (DbD)
ldquoWe say first consider the end-
point then take process as is and
understand its unit operations
Develop inputs and outputs and
discrete steps and define the pro-
cess in a way that promotes under-
standingrdquo he says
ldquoThis is challenging given prod-
uct complexity but there is a need
to understand the mechanism of
action very well so you put each
process in this overall envelope
of DbD and consider the cost of
goods scalability and sustainabil-
ityrdquo Preti adds ldquoYou consider the
process from the end only this
time each batch is an individual
patientrdquo
The critical part is defining and
measuring process needs he says
ldquoProduct definition is very impor-
tant particularly the quality target
product profilerdquo explains Brian
Hampson VP of manufacturing
development and engineering at
PCT in an Oct 22 2014 webcast
for the International Society for
Cell Therapy (3)
have the enD in MinD
Such t h ings a s for mulat ion
issues dosage potency impu-
rities residuals and microbial
assurance need to be thought out
clearly from the start Hampson
says as well as indications for
use geographic market projec-
tions cost-of-goods targets and
IP issues
The profile needs to be a liv-
ing document that changes as the
product takes shape Hampson
says There is a tendency for peo-
ple in the industry to ignore the
product profile until they have
all the answers says Hampson
ldquoInstead it needs to be developed
really early even when you donrsquot
have all or even many of the
answers hellip you can leave them
as blanks and continue to review
add to and updaterdquo
The result is not only a tool for
better understanding the prod-
uct process and mechanism of
action but a communication tool
for stakeholders
When to start DbD for cell ther-
apies ldquoThe temptation is to begin
later in the game when you need
reasonable COGS and you need
to be sure of sustainable manu-
facturingrdquo says Hampson ldquoThe
key thing is comparability and
anticipating its implications early
in the clinical program It needs
to be flexible at the early stagesrdquo
Hampson says ldquoBut as you near
Phase III you need to lock in your
equipment evolves
In the bioreactor area there is great interest in moving from 2-D to 3-D processing to enable the processing of the cell volumes required something that companies such as Israelrsquos Pluristem have been doing for some time
Equipment designer Instrom is partnering with companies including BRTI Life Sciences to focus on 3-D cell matrix technologies developed by Dr John Brekke EMD Millipore has been partnering with PharmaCell BV to use its Mobius bioreactor platform to expand and harvest HepRG cells GE Sciences is also evaluating Wave and other systems and set up a center of excellence in Wales recently
In other equipment areas Pall Corp has been partnering with CMDG LLC on cord blood processing technology Following are some of the equipment manufacturers and systems applied in cell therapy development and manufacturing
bull Beckman Coulter bull Corning Cell Stacks and Cell Cube
bull EMD Millipore bull GE Biosciences
bull Thermo Scientificrsquos Nunc Cell Factories bull Pall Corp
wwwbiopharminternationalcom June 2015 BioPharm International eBook 31
Outsourcing Resources Cell Therapy
processrdquo Table II summarizes issues
and points where changes will be
easier
Thus Hampson suggests that
companies whether work ing
with CDMOs or in house think
through such issues as cost of
goods scale and sustainabil-
ity much earlier than they typi-
cally do today ldquoYou donrsquot need to
spend money on these issues but
you do need to think about themrdquo
Hampson says ldquoQuality must be
a key issue even at Phase II trials
and early action pays off laterrdquo
In addition he suggests that
companies th ink about the
e nt i r e p r o c e s s c o mp r e he n -
sively ldquoThere is often a tendency
to focus on the core processing
stepsrdquo Hampson says ldquoBut you
really need to think about every-
thing from collection of mate-
rial through to administration
of product to the patient and all
steps in betweenrdquo
For ce l l therapies d ispos -
able equipment and closed pro-
cesses can be an effective way to
reduce costs and improve quality
and compliance ldquoThey can allow
you to isolate different processes
so that they can share a Class
100000 cleanroom environmentrdquo
Hampson says
ldquoInvesting in automated informa-
tion management can also pay offrdquo
he says ldquowhere an electronic batch
record system that is fully validated
can enable release-by-exception
reducing error documentation
time and overall quality assurance
costsrdquo Hampson says
In addition he notes it is
important to look at costs compre-
hensively an increase in one cost
can for example reduce overhead
improve process sustainability and
cost of goods Table III outlines the
issues
regulations evolve
Cell therapy is still a new area
for regulators and as Preti says
some guidelines are clear and oth-
ers arenrsquot ldquoDevelopment by design
is needed throughout the pro-
cess but the piece we still struggle
with the most is mode of action
(MOA) and product characteriza-
tion Regulatory agencies under-
stand that it is difficult to pinpoint
MOArdquo
Preti emphasizes the importance
of working with regulators ldquoYou
can be in a position to inform and
influence regulations as products
are developedrdquo he says
For any company moving into
this brave new world top-level ques-
tions are needed Preti says empha-
sizing the following ldquoDo you have
an understanding of scale Can you
scale up from very small Can you
characterize the process and control
it for reliability and qualityrdquo
In the stem cell area in particu-
lar this is crucial Preti said since
the product relies heavily on the
process ldquoManufacturing can be
thought of as patient administra-
tion It cannot be separated in
the same way that it can for tra-
ditional medicinesrdquo For contract
suppliers he adds demonstrated
success will be important and
sponsors should consider whether
a prospective partner will be able
to stay with them for the long run
referenCes 1 P Hourd et al Regulatory Challenges
for the Manufacture and Scale-
Out of Autologous Cell Therapies
Massachusetts General Hospital
(Cambridge MA 2013)
2 S Farid et al Biotechnol Bioeng
111(1) 69-83 (January 2014)
3 R Grant Building Deliverable Cell
Therapeutics A Methodical Approach
to Manufacturing Development
(Webinar Oct 22 2014) bp
source invetech
Justifcation driversChange in cost
doseDevelopment
estimate
Unit Op Ref
Change decription
Comparability risk
Quality COGs Scale Sustainability LaborMaterials outplant
Cost Time
P-2 Process change 1 Medium X X darr $ $$$ TT
P-3 Process change 2 High X X X darr $$$ $$$$ TTT
P-4 Process change 3 Low X X darr $$ $$ TTT
P-2 Process change 4 Low X $$ T
QC-4 In-house QC test None X TT
QA-1Electronic Batch
RecordNone X X X
darr $$$$
TTTT
Table III Process changes timing and comparability risks cogs is cost of goods Qc is quality control
32 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Intellectual Property
Protecting Intellectual Property
in Engagements with CMOs
Important IP contractual provisions should be included when working with CMOs
Jennifer L CoLLins
Biotechnology and pharmaceutical companies
often engage contract CMOs to assist with
the development of their drugs This type
of arrangement naturally involves the devel-
opment of intellectual property (IP) so it is
important for both the CMO and the sponsor to iden-
tify pre-existing intellectual property and also define
how rights to new IP will be allocated protected and
enforced by and between the companies
If the arrangement with the CMO is a traditional fee-
for-service arrangement where the company pays the
CMO service fees to perform development work on its
behalf then generally all new IP (other than improve-
ments to the CMOrsquos manufacturing technology) will be
owned by the biotechnology or pharmaceutical com-
pany that engaged the CMO On the other hand if the
arrangement between the CMO and the biotechnology
or pharmaceutical company is more of a collaborative
arrangement where both parties share the costs of devel-
opment as well as any profits from the commercializa-
tion then IP concerns become much more complicated
In that case in addition to describing which party will
Jennifer L CoLLins is a technology and licensing attorney with Morningstar Law Group jcollinsmorningstarlawgroupcom
Fa
na
tic S
tud
ioG
ett
y Im
ag
es
wwwbiopharminternationalcom June 2015 BioPharm International eBook 33
Outsourcing Resources Intellectual Property
own the new IP the contract should
sort out which party will be respon-
sible for obtaining and maintaining
patents on the new IP controlling
litigation against infringers and
defending the IP against challenges
In addition the parties should agree
upfront on how the IP may be used
by each party following various ter-
mination events so that the parties
are not left fighting about such mat-
ters at a time when they may not be
inclined to agree to anything
In both arrangements without
specific contractual provisions to
define and protect the new IP a
biotechnology company or phar-
maceutical company that uses a
CMO for development is at risk of
losing control of and possibly own-
ership of important improvements
to its drugs This article discusses
IP contractual provisions that
should be included in each type of
arrangement
Fee-For-service
development work
Traditionally CMOs perform fee-for-
service development work where
a biotechnology or pharmaceutical
company engages the CMO to per-
form this work for a fixed fee In this
type of arrangement the CMO is a
service provider and typically takes
no ownership interest in the drug or
product that is being developed or
in improvements to an existing drug
or product that is being tested or
developed The contract governing
the relationship nevertheless must
be clear about the IP rights that are
owned and licensed by each party
If the contract does not provide
for proper assignments of IP to the
biotechnology or pharmaceutical
company then it is likely that the
CMO will own any improvements
or other inventions that it develops
in the performance of the develop-
ment services even if that is not the
intent of the parties
Without signed written contracts
that state otherwise under United
States patent law the inventor of
a patentable invention or improve-
ment will own the invention or
improvement even if the inventor
is engaged to develop the invention
or the improvement for a customer
or other third party To ensure
that the biotechnology company or
pharmaceutical company obtains
all the patent and other IP rights
in developments inventions and
improvements created in the per-
formance of services by the CMO
the governing contract between the
biotechnology company or phar-
maceutical company and the CMO
must include written present assign-
ments of those IP rights from the
CMO to the company Indeed based
on recent cases it is crucial that the
assignment clause in the contract
be a ldquopresentrdquo assignment mean-
ing that it must state specifically
that the CMO ldquohereby assignshelliprdquo
rather than a clause stating that the
CMO ldquoagrees to assignrdquo rights in the
future Otherwise the contract will
be interpreted as a promise to assign
rights in the future and the bio
pharmaceutical company will have
to go back to the CMO at some later
point in time for a separate writ-
ten assignment of rights to obtain
all patent and other IP rights in the
developments
While it sounds logical and
straightforward that the CMO
would assign all inventions created
in the development work to its cus-
tomer it is not always that simple
in practice What if the CMO devel-
ops an improvement to its manu-
facturing process in the course of
the development work Most CMOs
will want to reserve ownership of
any improvements to the CMOrsquos
existing IP and confidential infor-
mation This position is not unrea-
sonable as long as the customer
ultimately has the rights it needs in
all new inventions including those
owned by the CMO to take the drug
forward through further develop-
ment and commercialization One
must sort out IP allocation by sub-
ject matter To achieve this allo-
cation the development contract
typically will state that each party
retains ownership of all IP that it
owns as of the date of the contract
(all pre-existing intellectual prop-
erty) It will also state that the cus-
tomer owns its proprietary drug
and all improvements to the drug
or the customerrsquos confidential infor-
mation developed by either or both
parties The development contract
also may state more generally that
the customer owns all inventions
improvements and IP rights related
to the customerrsquos drug With respect
to the CMO and its IP the develop-
ment contract may state that the
CMO owns all improvements to the
CMOrsquos manufacturing process and
to its other pre-existing intellectual
property Again this reservation is
not unreasonable The customer
however should determine whether
it requires access to those improve-
ments or inventions to complete the
development and commercialization
of its drug If such access is necessary
the customer should either negotiate
a license (which may be royalty-free
or royalty-based depending on the
circumstances) to use such improve-
ments or inventions to develop and
commercialize the drug or the cus-
tomer should negotiate the terms
under which the CMO will continue
to use the improvements or inven-
tions to perform development work
andor manufacture the drug for the
customer
In the fee-for-service arrange-
ment the assignment and licensing
of IP rights in new inventions and
improvements is the key intellectual
property issue Intellectual property
considerations become much more
complicated when the biotechnol-
34 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Intellectual Property
ogy or pharmaceutical company
partners with a CMO in the devel-
opment of a new drug or product
where the parties share development
costs and profits from commercial-
ization of the drug or product
cmo as collaborator
Although not as common as the
fee-for-service arrangement a CMO
may partner with a biotechnology
or pharmaceutical company in the
development and commercialization
of a drug or product Generally both
parties are bringing pre-existing IP
to the collaboration such as a drug
from a biopharmaceutical com-
pany and proprietary drug delivery
technology from the CMO In this
scenario the CMO is taking a long-
term interest and often a part-own-
ership interest in the success of the
drug product
Instead of getting paid an hourly
rate or fixed fee for development
work on the drug product the CMO
may share the cost of development
work with the biotechnology or
pharmaceutical partner in exchange
for a share of the profits when the
drug or product is commercialized
Other costs involved in the develop-
ment and commercialization of the
drug or product that may be shared
include the cost of patent prosecu-
tion and the cost of patent litigation
if the drug product is challenged or
if it is misappropriated or infringed
To secure its interest in the profits
from commercialization of the drug
product the CMO may want to take
an ownership interest in the intel-
lectual property rights in the drug
product All of these issues must be
carefully addressed in the develop-
ment contract to avoid both finan-
cial and IP disputes
As with the fee-for-serv ice
arrangement the parties must
allocate ownership of intellectual
property rights pertaining to the
drug product to be commercialized
These rights include both pre-exist-
ing IP rights and new inventions
and improvements developed in
the course of the development con-
tract As with the fee-for-service
arrangement the parties typically
will retain rights to their respec-
tive pre-existing IP Intellectual
property rights to new inventions
and improvements however may
be shared by giving each party a
co-ownership interest in the intel-
lectual property Alternatively such
rights may be allocated by inventor-
ship with each party taking owner-
ship of developments that it invents
and with the parties jointly own-
ing jointly developed inventions
As another alternative the IP rights
may be allocated by subject matter
as in the fee-for-service arrangement
with each party owning improve-
ments and inventions related to its
pre-existing IP regardless of which
party invents those improvements
and inventions
Depending on how the pat-
ent applications are drafted the
IP rights may be ldquosliced and dicedrdquo
more finely One party for example
could own patent rights for a drug
product for one indication while the
other party owns patent rights for
the same drug product for another
indication Decisions about how
to allocate the IP rights should be
made in consultation with intel-
lectual property counsel and must
take into account the manner in
which the drug will be commercial-
ized If one party for example is
to commercialize the product in
North America and Europe and
the other party is to commercialize
the product in the rest of the world
then either the patent ownership
should be allocated by territory or
the development contract should
include exclusive cross-licenses of
each partyrsquos rights in all the intel-
lectual property necessary to com-
mercialize the product with the first
party having an exclusive license to
commercialize the product in North
America and Europe and the second
party having an exclusive license to
commercialize the product in the
rest of the world
If the parties are going to share
ownership of the IP related to the
drug product then the develop-
ment contract also should specify
which party is responsible for pros-
ecuting and maintaining patents
on the drug product Regardless of
which party is responsible for patent
prosecution and maintenance the
other party should be consulted and
involved in key decisions regard-
ing patent prosecution and main-
tenance Unless there are multiple
patents for different indications that
will be commercialized exclusively
by one party and unless each party
has exclusive rights to commercial-
ize the drug product in particular
geographic areas it generally makes
sense for one party to take the pri-
mary responsibility for patent pros-
ecution and maintenance globally
with the other party consulting and
sharing in the cost of the prosecu-
tion and maintenance in accordance
with the profit sharing The party
that is not responsible for prosecu-
tion and maintenance should have
a contractual right to approve patent
counsel and review and approve pat-
ent filings office action responses
and other communications with
patent registries before they are filed
or submitted so that the parties
agree on the proper prosecution and
maintenance strategy
Likewise the development con-
tract should allocate the rights and
responsibilities for asserting and
defending the patents pertaining to
the product in litigation Often these
rights and responsibilities are allo-
cated by territory according to com-
mercialization rights If one party
for example has the exclusive right
to commercialize the drug product
wwwbiopharminternationalcom June 2015 BioPharm International eBook 35
Outsourcing Resources Intellectual Property
in the US then that party would
have the first right and responsibil-
ity to assert the patents on the drug
product against potential infringers
and defend the patents on the drug
product against infringement claims
in the US Likewise if one party has
the exclusive right to commercial-
ize the drug product for a particular
indication then that party would
have the first right and responsibility
to assert or defend the patents per-
taining to the product with respect
to that indication Both scenarios
can present challenges First some
courts will not recognize an exclu-
sive licensee as having standing to
assert a patent That court might
only allow the owner of the patent
(and not the exclusive licensee) to
bring a lawsuit asserting the patent
It is crucial therefore that contrac-
tual provisions relating to patent liti-
gation require the party that owns
the patent to cooperate in any litiga-
tion and to join the suit as a party if
necessary
Another potential problem is that
any litigation that asserts the pat-
ent is likely to draw a counterclaim
that the patent is invalid thus put-
ting the patent itself at risk of invali-
dation While one party might be
threatened by a potential infringer
in a particular market or for a partic-
ular indication and therefore might
want to assert the patent against the
potential infringer the other party
might not want to put the patent at
risk as to other markets and other
indications For these reasons the
contractual provisions pertaining
to patent litigation must be care-
fully drafted in consultation with
intellectual property counsel who
understands standing issues and
the potential areas for dispute The
contractual provisions also should
include dispute resolution provi-
sions for situations when the parties
do not agree on whether a patent
should be asserted
Finally while the parties may
want and expect their relationship
to continue for the full term of the
patents and the development con-
tract the parties must carefully
consider the IP ramifications of an
early termination of the develop-
ment contract and the relationship
particularly if the development con-
tract is terminated for breach If the
parties are sharing in the ownership
commercialization and profits gen-
erated by the drug product devel-
oped by the collaboration then
all of that must be unwound upon
termination The development
contract should be as specific as
possible with respect to the effect of
various types of termination on the
intellectual property and contin-
ued commercialization of the drug
product In particular the parties
may agree that if the development
contract is terminated due to breach
by one party then that breaching
party must relinquish and transfer
all of its rights with respect to the
drug product to the other party to
allow the non-breaching party to
continue the commercialization of
the drug product post-termination
Whether the necessary rights are
assigned or licensed whether the
terminated party should receive a
royalty for the transfer or license of
those rights and what if any pre-
existing IP is licensed to enable the
non-breaching party to continue
commercializing the drug product
are all key factors for negotiation
The development contract should
also address other types of termi-
nation such as termination for
insolvency and termination with-
out cause (ie if one party decides
it no longer wants to commercial-
ize the drug product) In each case
the effect of termination on the IP
rights should be carefully analyzed
and a competent IP counsel should
carefully draft post-termination
assignments and licenses
conclusion
While IP lawyers are not equipped
with crystal balls they can be
extremely helpful in analyzing par-
ticular development commercializa-
tion and post-termination scenarios
all of which affect IP in a drug devel-
opment arrangement Contractual
provisions related to IP must be
carefully drafted to align with the
strategic business objectives of any
relationship and particularly one
whose purpose is the development
and commercialization of intellec-
tual property Without a clear con-
tract each collaborator is at risk of
losing important rights bp
Ad Index
AJINOMOTO ALTHEA 21
AVID BIOSERVICES INC 15
CYTOVANCE BIOLOGICS 27
EMERGENT BIOSOLUTIONS 13
EUROFINS LANCASTER LABORATORIES 7
SAFC BIOSCIENCES SIGMA ALDRICH 17
THERMO FISHER SCIENTIFIC 23
TOSOH BIOSCIENCE 11
WATERS CORP 3
Company Page
![Page 18: OUOURT NG I C RESOURCESfiles.pharmtech.com/alfresco_images/pharma/2019/03/08/... · 2019-07-22 · VIDEO INTERVIEW Biologics Development and Manufacturing Trends: Part I ... Media](https://reader034.vdocuments.us/reader034/viewer/2022050113/5f4aca886c0d6724390eb040/html5/thumbnails/18.jpg)
18 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources CROCMO Viewpoints
and which are not currently ame-
nable to continuous processing
the Rise of biosimilaRs
BioPharm What impact w i l l
biosimilar drugs have on bio-
pharma businesses bioprocessing
approaches and the contract ser-
vices market
Rogers (SGS Life Science Services)
The European biopharma land-
scape has already experienced
impact of the biosimilar drug mar-
ket leading to rapid expansion of
traditional small molecule generic
manufactures into the bio arena
Recent FDA approval of the Sandoz
biosimilar Zarixo may be the seed
for similar changes in the US pro-
viding a potential new line of busi-
ness for established pharmaceutical
companies Contract service pro-
viders such as SGS who already
have considerable experience with
biosimilars are able to offer exper-
tise to businesses new to this mar-
ket and will no doubt benefit from
such expansion in the US
Lively (PPD) Increased invest-
ment in biosimilars is driving
interest in improving and stream-
lining the development processes
as well as the sensitivity and scope
of characterization assays used to
compare biosimilars and innova-
tor drugs The expanding capac-
ity needs result in partnerships
between clients and their contrac-
tors with the systems experience
and expertise to achieve the qual-
ity and speed required while meet-
ing all regulatory expectations for
product approval
Chambers (SGS) With nearly
20 years exper ience perform-
ing biosimilar analysis the big-
gest impact had been the massive
increase in the characterization
needed for biosimilars compared
to innovators (although higher
standards are now needed for new
innovators too) This has resulted
CMOs Add Capabilities
Consolidation in the contract development and manufacturing market has resulted in new capabilities and facility expansions
In May 2015 CMC Biologics announced that it is expanding its Copenhagen Denmark facility to increase its manufacturing capacity through the installation of six 2000-L bioreactors The bioreactors can be run singly or in groups simultaneously or sequentially and are part of the companyrsquos signature Bioreactor 6Pack single-use program The Copenhagen installation will begin initial GMP production in November 2015 and will feature three bioreactors to start Three bioreactors will be added at a later date to complete the configuration Meanwhile the Bioreactor 6Pack at CMCrsquos Seattle facility will complete its first GMP run in mid-2015 and will be ready for commercial launch by the end of the year Through its recent expansions CMC plans to expand its global capacity by more than 30000 liters in the United States and Europe
Also in May 2015 SAFC announced an expansion to its St Louis MO facility to support the commercial-scale production of antibody-drug conjugates The facility which is expected to be online and operational in the third quarter of 2015 was designed to meet SafeBridge category 4 compound handling requirements for highly active or cytotoxic compounds The expansion of an existing Carlsbad CA location will enable SAFC to offer fillfinish capabilities of viral products to its clients in the gene therapy viral vaccine and immunotherapy sectors
Rentschler announced in March 2015 that a 2000-L bioreactor that the company commissioned and built in six months is up and running The bioreactor will be integrated into existing manufacturing suites containing two 1000-L single-use bioreactors according to a company statement The companyrsquos twin bioreactor systemmdashdesigned for running two main bioreactors in parallel with one shared downstream processing unitmdashwill be functional by 2017 The twin system is estimated to double the companyrsquos production capacities for cell culture-derived proteins
In December 2014 FUJIFILM Diosynth Biotechnologies USA (FDBU) acquired Kalon Biotherapeutics adding viral and cell-culture vaccine expertise and capabilities In other activity FDBU started construction of a three-story 62000-ft2 facility in Research Triangle Park NC in January 2015 to house the companyrsquos process and analytical research and development process sciences and stability groups The expected completion date is Q4 2015
In September 2014 PCI a provider of packaging services acquired Biotec Services International a provider of clinical-trial services and temperature-controlled pharmaceutical services headquartered in Bridgend Wales UK The addition expanded PCIrsquos presence in the European Union and added packaging storage and distribution capacity and consultative services for clinical-trial supplies In January 2015 Biotec announced the validation of its clinical supply facility expansion which added almost 50 to the companyrsquos clinical trial materials handling capacity
wwwbiopharminternationalcom June 2015 BioPharm International eBook 19
Outsourcing Resources CROCMO Viewpoints
in challenges in data handling
interpretation and data presenta-
tion Biosimilars have also caused
the re-emergence of orthogonal
techniques like size exclusion
chromatographyndashmulti-angle laser
light scattering (SEC-MALL) and
SV-AUC for aggregation and cir-
cular dichroism (CD) and fourier
transform infrared spectroscopy
(FTIR) for higher-order structure
as critical analyses to understand
and compare and detect subtle
higher-order structural differences
between innovator and biosimilar
samples
Hartzel (Catalent Pharma Solutions)
The rise of biosimilar drugs will
dawn the next generation of bio-
logic manufacturing and force
the industry to look at new ways
of manufacturing to drive down
costs Therefore the industry will
seek new manufacturing partners
with strong technical expertise to
drive out costs through innovation
and operational excellence
Lorimer (Patheon Biologics)
Genera l ly b ios imi la r d r ugs
will encourage competitiveness
within the biopharma sector
Biomanufacturers expect increased
pressure on cost of goods and
pricing Biopharmaceutical con-
tract service providers with a flex-
ible multi-product operation and
proven track record in the indus-
try are well placed to ensure care-
ful control of manufacturing costs
and product quality Processing
approaches wonrsquot change in terms
of technology but there will be a
greater emphasis on operational
excellence to reduce costly inef-
ficiencies and improve yields from
bioprocesses As more biosimilars
come to the forefront and as the
industry trend for outsourcing
continues increasing operational
flexibility while maintaining the
highest quality standards will be
the keys to success
business challenges
BioPharm What is the greatest
business challenge facing biophar-
maceutical companies today
Lively (PPD) As with all phar-
maceutical drug development the
greatest challenge is getting new
life-changing and potentially life-
saving drug candidates to mar-
ket Biopharmaceuticals face more
challenges than traditional small-
molecule drug products because
the science of characterization
of such biologic drugs is rapidly
evolving along with the regulatory
landscape Those companies that
are best able to successfully char-
acterize and differentiate innovator
and biosimilar products for safety
and efficacy will have the greatest
opportunity to benefit
the knowledge gap
BioPharm In what areas do you
see knowledge or expertise gaps in
current biopharmaceutical compa-
nies Why do these gaps exist
Lorimer (Patheon Biologics) There
is a gap in translating good sci-
ence to industrial applications of
technologies that provide for reli-
able efficient cost effective man-
ufacturing at commercial scale
Maintaining a focus during early
development on eventual commer-
cial manufacturing requirements
while balancing limited develop-
ment resources requires a broad
base of coordinated organiza-
tional skillsets and a disciplined
approach
Hartzel (Catalent Pharma Solutions)
Devicedelivery expertise is an
area that has a potential gap For
biologics the historic default con-
tainer closure has been a tradi-
tional glass vial As the healthcare
industry seeks ways to improve
patient care and reduce costs the
delivery to the patient needs to
adopt new technologies and this
is why we have seen a rise of pre-
filled syringes and autoinjectors
These technologies will continue
to evolve and so will the demand
for devicedelivery experts
Lively (PPD) One of the chal-
lenges we see is the various levels
of knowledge and expertise that
exist between biopharmaceutical
RampD and the testing and regula-
tory industries That differential is
impacting those industriesrsquo ability
to fully consider and effectively
implement expectations and guid-
ance for physicochemical and
functional characterization expec-
tations of biologic drugs
Lorimer (Patheon Biologics) The
commercial biopharmaceutical
industry demands global sourc-
ing of materials services supply
and ultimately distribution to each
patient This requires a robust inte-
grated supply chain to deliver high
value products to patients on-time
and at the right quality Doing this
reliably and efficiently with long
production lead times and uncer-
tain market sales forecasts is an
industry wide challenge
Speed-to-market remains a key
challenge to the development of
biopharmaceuticals Speedy first-
time-in-man clinical trials can be
a major hurdle for small biotech
companies and large pharma alike
Rogers (SGS Life Science Services)
I believe there continues to be a
significant problem in the level of
fundamental scientific expertise
within many biopharmaceutical
businesses In part this may be
attributed to the lsquokitrsquo and lsquoblack
boxrsquo approach of many modern
day technologies Due to the
complexity of many biopharma-
ceuticals their development and
success as therapeutics requires a
comprehensive range of scientific
disciplines and expertise which
can be difficult to fully realize
internally particularly for small
and mid-size companies bp
20 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources FillFinish
FillFinish Trends
Automation and disposables continue to reduce human error
Eric s LangEr
Fillfinish operations continue to be domi-
nated by trends in automation and the adop-
tion of single-use equipment But these are
by no means the only factors affecting these
high-value operations according to BioPlan
Associatesrsquo latest biomanufacturing study (1) Fill
finish processes are among the most outsourced
activities in biomanufacturing today and a service
providerrsquos capacity for vialing pre-filled devices
and lyophilization is crucial In a recently pub-
lished whitepaper (2) BioPlan Associates determined
that there is sufficient global in-house capacity
for biologics but the need continues to grow for
greater access to specialized outsourcing competence
Whatrsquos trending is significant improvements in auto-
mation and operations
AutomAtion And single use defining Cmo strAtegy
The top trends today involve automation and devel-
opment of better disposable technologies As part of
the BioPlan study biomanufacturers were asked to
select the trends they believe to be the most impor-
tant in fill and finish today The top three trends
are single-use equipment automation in full isolator
units and facilities becoming multi-product ori-
ented (see Figure 1)
Other important trends were noted including
bull Increased serialization and product labeling for
anti-counterfeiting
Eric s LangEr is president and managing partner at BioPlan Associates Inc elangerbioplanassociatescom tel 3019215979 wwwbioplanassociatescom
Ma
ria T
ou
tou
da
ki
Ge
tty Im
ag
es
WITH ALTHEA YOU HAVE THE POWER TO MAKE
You have the power to make a difference To make new therapeutics that improve quality of life and inspire a healthier world To do this you need a manufacturing partner who embraces your every challenge as its own who shares your unwavering tenacity and dedication from clinical studies through commercial success Thats The Power To Make
PLAY VIDEO
CONTRACT
MANUFACTURING
Q Development
Drug Substance
lj Drug Product
(D Al TH EA I THE POWER TO MAK A MEMBER OF THE AJINOMOTO GROUP
22 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources FillFinish
bull More f i l l f i n i sh fac i l i t ie s
o p e r a t i n g i n d e v e lo p i n g
regions
bull C o m p u t e r - b a s e d v i s u a l
i n s p e c t i o n a r t i f i c i a l
intelligence
bull Use of complex administration
systems
single-use equipment in fillfinish operAtionsT h e a d o p t i o n o f d i s p o s -
ab le e qu ipme nt i n f i l l f i n -
i s h o p e r a t i o n s e l i m i n a t e s
cross-contamination risks and
adds flexibility in process scale
While regulatory rest r ic t ions
may be increased by the adop-
tion of such equipment single-
use appl icat ions a lso enable
contract manufactur ing orga-
nizat ions (CMOs) to increase
fac i l i t y ut i l i z at ion t h rough
multi-product strategies which
can decrease their cost of goods
Experts in the f ield discussed
these trends
Peter Pekos CEO and president
of Dalton Pharma Services a fill
finish CMO says ldquoFor a CMO
disposables can be attractive hellip
For example a disposable isola-
tor can be packed and stored pre-
sterilized for use when needed
a f ixed isolator requires f ixed
space at all times Disposables
also allow a CMO to handle proj-
ects using specific systems for
non-typical project needs such
as disposable isolators without
going to the expense of buying
permanent isolator infrastruc-
ture Disposables do not obviate
the need for technical expertise
hellip so the need for a CMO isnrsquot
really reduced In fact CMOs
with expertise in single-use sys-
tems hellip can make them more
attractiverdquo
Mar t ina Fe r neman cor po -
rate development manager at
Recipharm bel ieves that the
adoption of single-usedispos-
able equipment is now impacting
f i l l and f inish ldquoIn mult ipur-
pose sites the cleaning proce-
dures will become more crucial
to avoid cross contamination
Single-use equipment [also] has
the advantage of shorter lead
t imes and lower procurement
costs Since no cleaning proce-
dure has to be established and
aseptic connections are easier to
be built-up the use of single-
use equipment is not only faster
but also safer than conventional
equipmentrdquo
AutomAtion in full isolAtor unitsW hi le s ing le -use equ ipment
adoption may be one of the hot-
test f i l lf inish trend automa-
tion technologies may actually
be experiencing more rapid rates
of implementation among bio-
manufacturers Indeed sepa-
rate results from BioPlanrsquos 12th
annual study suggest that the
industry wi l l be as l ikely to
implement automation technolo-
gies as they will use single-use
f i l l-f inish devices dur ing the
next 24 months
The removal of human factors
is a key to improving product
quality Isolators and automa-
tion are therefore key drivers
as facilities seek to improve their
i n f r a s t r u c t u r e I n nov a t io n
around equipment and facilities
able to handle multiple products
is going to continue Flexibility
is key as the reduced flexibility
of isolators (and higher cost) in
relation to traditional restricted
access barrier (RAB) systems may
deter some CMOs from adopt-
ing isolators The jury is st i l l
out because the decision fac-
tors between RAB and isolators
are complex and this tends to be
a high-cost decision often left
to the larger f illf inish CMOs
ldquoCMOs will adopt isolator tech-
nologies in their processes to
meet industry needs and reduce
r isk In some cases this wil l
also include disposable isolators
which can offer the benefits of
fixed isolators but add a degree
of f lexibil ity to the manufac-
turerrdquo Pekos notes
According to Ferneman adopt-
ing automat ion in ful l isola-
tor units to reduce the need for
operators is a trend seen in the
CMO market ldquoUse of barr ier
technology (RABS or isolators)
should ensure optimal protec-
t ion of ster i le areas Isolators
bear a better potential to prevent
biocontamination Since the iso-
lator is a closed system a lower
air quality than in RABS systems
can be usedrdquo For freeze-dried
products the RABS system is a
better choice because loading
has to be performed in class AB
surrounding
Fig
ur
e 1
is
co
ur
te
sy
oF
th
e a
ut
ho
r
Figure 1 selected bioprocessing fllfnish trends in 2015
Single-usedisposable equipment
adoption55
36
35Facilities becoming more multi-
product-use oriented
Automation in full isolator units
reduce need for operators
More compounds More accuratelyFaster than ever
Quantitation transformed
Todayrsquos range of possible therapeutic agents from small molecules to peptides to antibodies and
ADCrsquos makes quantitative bioanalysis a challenge Quantify potential therapeutics faster and more
accurately with our new portfolio of LC-MS instruments sample prep solutions and software HRAM
solutions using Thermo Scienti ctrade Orbitraptrade MS enables selectivity for complex molecules while
triple quadrupole MS delivers SRM sensitivity and speed to detect targeted compounds more quickly
Meet todayrsquos challenges with us and together wersquoll transform quantitative bioanalysis
Thermo Scienti ctrade Orbitrap Fusiontrade MSUnprecedented depth of analysis and
throughput for biological discovery
Thermo Scienti ctrade TSQ Quantivatrade MSLeading SRM sensitivity and speed
in a triple quadrupole MSMS
Thermo Scienti ctrade Q Exactivetrade MSScreen and quantify known and unknown targets with HRAM Orbitrap technology
copy 2
014
Ther
mo
Fish
er S
cien
tifi c
Inc
All
right
s re
serv
ed A
ll tr
adem
arks
are
th
e pr
oper
ty o
f The
rmo
Fish
er S
cien
tifi c
and
its
subs
idia
ries
bull Discover more at thermoscienti ccomquan-transformed
24 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources FillFinish
Cmos stAying
AheAd of the Curve
In the whitepaper on in-house
fillfinish operations for recom-
binant therapeutics (2) BioPlan
found relatively low average in-
house capacity utilization rates
for lyophilization (55) pre-filled
devices (58) and vialing (70)
This finding suggests that for fill
finish CMOs the real value isnrsquot
necessarily in providing additional
flexible capacity but rather in posi-
tioning themselves as providing
highly sophisticated and novel
technologies and expertise in fill
finish services Indeed CMOs are
expected to have state-of-the-art
equipment As Pekos notes ldquoCMOs
who implement flexible and inno-
vative technologies to make man-
ufacturing or development more
efficient faster compliant or more
economical all serve to make them
more attractive to customersrdquo
For CMOs that make use of
innovative fillfinish technologies
there appears to be a good deal
of demand Results from BioPlanrsquos
annual studies indicate that fill
finish services are among the most
widely and heavily outsourced
biomanufacturing activities today
and are also among the activities
that biomanufacturers are most
likely to outsource at significantly
higher levels in the future
Biomanufacturers and CMOs are
actively looking to their fillfin-
ish equipment suppliers and are
beginning to demand additional
new technologies innovation and
product development In 2014 for
example when the top areas that
biomanufacturers wanted their
suppliers to focus their develop-
ment efforts on were measured
fillfinish services topped the list
cited by 23 of biomanufacturers
Not only did that figure represent
a substantial increase from years
past (13 in 2011) but it was also
ahead of other services including
upstream and downstream process
development services
Fillfinish will continue
to be an area of
growth for CMOs
There are a number of areas in
which suppliers can add value to
fillfinish innovation according
to industry experts Jim Agalloco
president of Agalloco amp Associates
in Belle Mead NJ says ldquovendors of
equipment and components to fill
finish must continue their roles as
technology leaders Innovation in
this market has always been sup-
plier driven because the operating
firms do not have the necessary
expertise Collaboration between
equipment manufacturers and
component suppliers is essential
for implementation of new con-
tainer systems single-use dispos-
ables and other advancesrdquo
Ronald Malone senior principal
scientist at Novartis Vaccines says
ldquoBlow-fill-seal containerclosure
systems are beneficial for small-
volume parenterals However over-
all cost may still be higher per unit
than traditional vialstopper fill-
ing Vaccines and biologicals can
benefit from single-dose disposable
systems that drive down the cost
of the containerclosure system
This will assist the global supply to
developing world countries where
these products are truly neededrdquo
W B W i e d e r s e i m o f
PharmaBioSource in Wayne PA
states ldquoWe see smaller higher
technical facilities inclusive of dis-
posables (isolators and not RABS)
and advanced aseptic work cell
technology as the wave of the
futurerdquo
WhAt does the future hold
BioPlanrsquos survey data and indus-
try interviews indicate that fill
f inish will continue to be an
area of growth for CMOs that
maintain the required technical
quality and regulatory expertise
in this segment Experts have
taken note of CMOsrsquo introduc-
tion of smaller filling machines
for syringes or vials a trend that
may be in response to the indus-
try-wide move towards smaller-
scale manufactur ing projects
This shift may be accelerated by
the advent of biosimilars which
should provide an increasing
number of projects for fillfin-
ish CMOs although likely on a
smaller scale This increase in
projects could lead to potential
mergers and acquisitions with
some experts noting that fillfin-
ish CMOs are already engaging
in this trend toward larger capac-
ity and global operations
Indeed within the past 18
months a number of acquisi-
tions have occurred including
Pfizerrsquos acquisitions of Hospira
a nd In noPha r ma Pat heonrsquos
mergers in the contract services
space IDT Biolog ika invest-
ments Vet ter invest ing USD
$100 million to upgrade fill-fin-
ish facilities in the United States
a nd Ger ma ny a nd Ba xte r rsquos
investment in German facilities
and numerous others (3)
For CMOs to stay ahead of the
curve they will likely need to
continue to adopt disposables
technologies and advance their
automation in full isolators Ray
Cardin of PharMax Consulting
says ldquoIncreased use of dispos-
able pre-sterilized f illing tech-
nologies [are future trends] The
combination of these pre-ster-
ilized units with the coming of
age of ster i le connectors that
provide high sterility assurance
wwwbiopharminternationalcom June 2015 BioPharm International eBook 25
Outsourcing Resources FillFinish
Biologics Development and Manufacturing Trends Part II
Eric Langer Managing Partner BioPlan Associates talks about the results from BioPlan AssociatesOtilde 12th Annual Report and Survey of Biopharmaceutical Manufacturing Capacity and Production Langer discusses what respondents indicated as the number one trend in biologics manufacturing improving efficiencies and the biosimilars market
in less clean environments is
changing the way aseptic pro-
cesses are designedrdquo
Gordon Leichter PhD Eastern
r e g io n a l s a l e s m a n a ge r a t
Belimed in Charleston SC states
ldquoAutomat ion in fu l l i solators
wil l el iminate operator inter-
vention and laser-sealed vials
Automation will become more
integral to building automation
and enterprise systemsrdquo
Douglas Stockdale vice-presi-
dent CMCTechnical Operations
Hi l lhurst Biopharmaceut ica ls
Los Angeles CA says ldquoIndustry
will continue pushing the PAT
[process analytical technology]
envelope to f ind a lternat ive
methods to improve in-process
methodologies and processesrdquo
Fe r ne ma n add s ldquoCu r r e nt
trends in fillfinish innovation
will probably focus the market
authorization holders on a few
strategic products resulting in
outsourcing of a bigger share of
products overallrdquo
ConClusion
Until recently the handling of
ster i le l iquids in the pharma-
ceutical industry has relied on
relatively consistent techniques
during the past 100 years with
relatively slow changes in tech-
nologies and regulations result-
ing in incremental improvements
in safety efficiency and prod-
uct quality During the past 20
years however costly biologics
have taken a prominent indus-
try role The value of these drugs
can often be measured in tens of
thousands per dose This has put
greater pressure on these down-
stream fillfinish operations to
ensure quality safety and cost-
efficiency are not compromised
at this crucial late stage in manu-
facturing Trends in fillfinish for
recombinant therapeutics include
the increased use of isolator
technologies more high-speed
operations and other innovative
approaches including single-use
processing As a result of industry
research BioPlan expects more
outsourcing of fillfinish opera-
tions in coming years
referenCes 1 BioPlan Associates 12th Annual
Report and Survey of Biopharmaceutical
Manufacturing Capacity and Production
(Rockville MD April 2015) www
bioplanassociatescom
2 BioPlan Associates Trends in Aseptic
Bioprocessing Capacity for the Fill and
Finish of Recombinant Biologics An
Analysis of US and European In-house
Capacity and Capacity Utilization (BioPlan
Associates December 2014)
3 Information derived from BioPlan
Associatesrsquo BioFacilities Newsletters Bp
26 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Cell Therapy
Taking a ldquoDevelopment-by-Designrdquo
Approach to Cell Therapies
Whether outsourcing or developing cell therapies in-house success demands a focus on quality cost of goods
and sustainability from the start
Agnes shAnley
Cell therapies both autologous and allo-
geneic have come a long way in just a
few years Countries around the world
most recently Japan have passed regula-
tions designed to speed development of
these treatments which are now a big and growing
global business
In 2013 according to the Pharmaceutical Research
and Manufacturers Association 69 cell therapies six
of them autologous or patient-specific treatments
were in clinical trials or being reviewed in the United
States alone 15 of them in Phase III trials (1)
The road is littered with failures however often
in clinical stages This has been traced to problems
with manufacturing and failure to understand pro-
cess requirements earlier in the development process
Table I outlines manufacturing issues
As a growing number of Big Pharma companies
explore the potential for immune regenerative and
other cell therapies equipment manufacturers includ-
Agnes shAnley is senior editor of BioPharm International
SC
IEP
RO
GE
tt
y Im
aG
ES
wwwcytovancecomResponsive Reliable Resourceful
Your partner in biopharmaceutical contract manufacturing of therapeutic proteins and antibodies from mammalian cell culture and microbial fermentation
28 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Cell Therapy
ing Pall Corp EMD Millipore
and GE Biosystems have set up
centers of excellence to focus on
developing equipment for this
new market Engineering compa-
nies such as Invetech and Instrom
are developing equipment specific
to this niche
More CDMos are entering
Cell therapy Market niChe
Demand for spec ia l i zed ce l l
t he rapy ma nu fac t u r ing a nd
development serv ices is a lso
growing and has attracted Lonza
Bioservices Cognate BioServices
WuXi AppTech and Roslin Cells
among others
NeoStem is fol low ing t wo
paths pursuing its own cel l
therapy pipel ine and explor-
ing contract services through
its contract development and
manufac t u r ing organ i zat ion
(CDMO) subsidiary Progenitor
Cell Therapy (PCT) With bases
in Irvine and Mountain View CA
and Allendale NJ PCT is cur-
rently working with Intrexon and
Fibrocell on connective tissue
treatments and with the United
K ingdomrsquos Adapt immune on
oncology treatments
A new CEO David Mazzo with
a doctorate in analytical chemis-
try and experience running both
private and public international
biopharma companies assumed
NeoStemrsquos leadership in January
He sees no conflict between grow-
ing a pipeline and a contract man-
ufacturing business
ldquoWe are not trying to be two
di f ferent companies and we
do not see the two competing
with each otherrdquo says Mazzo
in an interview with BioPharm
Inte rnat ionalrsquos s i ster publ ica-
tion Pharmaceutical Technology
during his second week on the
job ldquoInstead there is a symbi-
otic relationship between themrdquo
As he sees it the companyrsquos
track record in developing prod-
ucts should attract more spon-
sors ldquoProblems in development
usually occur at the interfaces
Our unique experience of having
lsquodone that beforersquo should be help-
fulrdquo he says
In January PCT entered a
partnership with Invetech an
equipment design firm based in
Australia with offices in San Diego
to develop automated equipment
for cell therapy manufacturing Fig
ur
e 1
is
co
ur
te
sy
oF
in
ve
te
ch
Figure 1 Part of an automated solution being developed by neostem and invetech Automating processes is key to reducing costs
wwwbiopharminternationalcom June 2015 BioPharm International eBook 29
Outsourcing Resources Cell Therapy
The two companies have already
been working together for a year
now honing the design and speci-
fications for the instrumentation
says NeoStemrsquos Chief Scientific
Officer (CSO) Robert Preti The
equipment will tackle cell therapyrsquos
most challenging side autologous
treatments where the manufactur-
ing lot is the patient dose adminis-
tered at the patientrsquos bedside
As Preti notes there really isnrsquot
much available today in the way
of automated equipment for cell
therapy especially on the autolo-
gous side The equipment will sep-
arate and wash cells among other
functions
labor-intensive
proCesses aDD Cost
So far Preti says the company
is evaluating the evolving equip-
ment in NeoStemrsquos own manu-
facturing efforts ldquoOne of the
largest commercial bottlenecks
is the heavy labor required by
processes especially for patient-
specific uses where one batch is
one patientrdquo
The cost of goods i s ver y
high Preti says ldquoSuccess long-
term will require a whole new
approach to development The
goal is to provide high qual-
ity and sustainabilityrdquo he says
Removing manual operat ions
and human error from the pro-
cess will be crucial
Invetech has been work ing
on cell therapy process scale-up
automation for more than 10
years and has successfully com-
pleted projects in North America
Europe and Asia for companies
that include Argos Therapeutics
Aa s t rom CCR M Hu mac y te
Innovacell Janssen kSep Systems
MolMed Organovo and ViaCyte
accord ing to R ichard Grant
global VP of the companyrsquos bio-
pharma operations who has been
with the company for more than
14 years
ldquoThe goal is to develop a mix
of equipment and manufactur-
ing st rateg ies that maximize
quality scalability and sustain-
ability with an eye toward cost-
effect iveness and commercial
viabilityrdquo Grant says Invetechrsquos
solutions typically tailor a mix of
OEM and customized equipment
to the clientrsquos processes The com-
pany recently commercialized
equipment used to manufacture
Janssenrsquos macular degeneration
treatment
Costs of current manufactur-
ing processes for both autologous
and allogeneic therapies are dif-
ficult to peg Last year experts
at University College London
attempted to pinpoint the cost and
overall economics of allogeneic
cell therapy using single-use tech-
nologies (2)
What is clear for both alloge-
neic and autologous systems is
that cell therapy development
Table I Manufacturing scenarios for cell therapies
Attributes Off-the-shelf therapiesPatient-specifc
therapies
Source material Always allogeneic Autologous or matched allogeneic
Batch size Many patients One patient
Business model Similar to pharmabiopharma New
Scaling Scale up (Increased lot size) Scale out (Increased number of lots)
Comparability vs scale Higher concern Lower concern
Manufacturing design drivers
Mission critical success + +++
Optimized process yield +++ +
Dimensional efficiency ++ +-
Integration +- ++
Automation + ++
source invetech
Table II Measuring comparability risk
Risk level Example Timing
None Automated sterility test Before biologics license application
Low Change in process unit op and cell journey is the same
Before 50 accrual in pivotal trials
Medium Change in process unit op and cell journey is similar
Before initiation of pivotal clinical trials
High Change in process unit op and the cell journey is matched
Some Phase II clinical data
source invetech
30 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Cell Therapy
and manufacturing costs are cur-
rently prohibitive ldquoThe starting
points can vary dramaticallyrdquo
Grant says He recalls one cus-
tomer whose autologous process
ran to $80000 per patient in early
stage clinical trials Automation
he says could reduce costs by
40ndash90 depending on the ther-
apy involved
DevelopMent by Design
But before one can automate any
process one must understand it
NeoStem and PCT like a growing
number of companies are taking
the principle of quality by design
(QbD) to heart in their work
Mazzo arguably one of few
life-science company CEOs to
even articulate the QbD concept
explains that the company has
gone a step further and broadened
the International Conference on
Harmonization guidances adopted
by FDA into ldquodevelopment by
designrdquo (DbD)
ldquoWe say first consider the end-
point then take process as is and
understand its unit operations
Develop inputs and outputs and
discrete steps and define the pro-
cess in a way that promotes under-
standingrdquo he says
ldquoThis is challenging given prod-
uct complexity but there is a need
to understand the mechanism of
action very well so you put each
process in this overall envelope
of DbD and consider the cost of
goods scalability and sustainabil-
ityrdquo Preti adds ldquoYou consider the
process from the end only this
time each batch is an individual
patientrdquo
The critical part is defining and
measuring process needs he says
ldquoProduct definition is very impor-
tant particularly the quality target
product profilerdquo explains Brian
Hampson VP of manufacturing
development and engineering at
PCT in an Oct 22 2014 webcast
for the International Society for
Cell Therapy (3)
have the enD in MinD
Such t h ings a s for mulat ion
issues dosage potency impu-
rities residuals and microbial
assurance need to be thought out
clearly from the start Hampson
says as well as indications for
use geographic market projec-
tions cost-of-goods targets and
IP issues
The profile needs to be a liv-
ing document that changes as the
product takes shape Hampson
says There is a tendency for peo-
ple in the industry to ignore the
product profile until they have
all the answers says Hampson
ldquoInstead it needs to be developed
really early even when you donrsquot
have all or even many of the
answers hellip you can leave them
as blanks and continue to review
add to and updaterdquo
The result is not only a tool for
better understanding the prod-
uct process and mechanism of
action but a communication tool
for stakeholders
When to start DbD for cell ther-
apies ldquoThe temptation is to begin
later in the game when you need
reasonable COGS and you need
to be sure of sustainable manu-
facturingrdquo says Hampson ldquoThe
key thing is comparability and
anticipating its implications early
in the clinical program It needs
to be flexible at the early stagesrdquo
Hampson says ldquoBut as you near
Phase III you need to lock in your
equipment evolves
In the bioreactor area there is great interest in moving from 2-D to 3-D processing to enable the processing of the cell volumes required something that companies such as Israelrsquos Pluristem have been doing for some time
Equipment designer Instrom is partnering with companies including BRTI Life Sciences to focus on 3-D cell matrix technologies developed by Dr John Brekke EMD Millipore has been partnering with PharmaCell BV to use its Mobius bioreactor platform to expand and harvest HepRG cells GE Sciences is also evaluating Wave and other systems and set up a center of excellence in Wales recently
In other equipment areas Pall Corp has been partnering with CMDG LLC on cord blood processing technology Following are some of the equipment manufacturers and systems applied in cell therapy development and manufacturing
bull Beckman Coulter bull Corning Cell Stacks and Cell Cube
bull EMD Millipore bull GE Biosciences
bull Thermo Scientificrsquos Nunc Cell Factories bull Pall Corp
wwwbiopharminternationalcom June 2015 BioPharm International eBook 31
Outsourcing Resources Cell Therapy
processrdquo Table II summarizes issues
and points where changes will be
easier
Thus Hampson suggests that
companies whether work ing
with CDMOs or in house think
through such issues as cost of
goods scale and sustainabil-
ity much earlier than they typi-
cally do today ldquoYou donrsquot need to
spend money on these issues but
you do need to think about themrdquo
Hampson says ldquoQuality must be
a key issue even at Phase II trials
and early action pays off laterrdquo
In addition he suggests that
companies th ink about the
e nt i r e p r o c e s s c o mp r e he n -
sively ldquoThere is often a tendency
to focus on the core processing
stepsrdquo Hampson says ldquoBut you
really need to think about every-
thing from collection of mate-
rial through to administration
of product to the patient and all
steps in betweenrdquo
For ce l l therapies d ispos -
able equipment and closed pro-
cesses can be an effective way to
reduce costs and improve quality
and compliance ldquoThey can allow
you to isolate different processes
so that they can share a Class
100000 cleanroom environmentrdquo
Hampson says
ldquoInvesting in automated informa-
tion management can also pay offrdquo
he says ldquowhere an electronic batch
record system that is fully validated
can enable release-by-exception
reducing error documentation
time and overall quality assurance
costsrdquo Hampson says
In addition he notes it is
important to look at costs compre-
hensively an increase in one cost
can for example reduce overhead
improve process sustainability and
cost of goods Table III outlines the
issues
regulations evolve
Cell therapy is still a new area
for regulators and as Preti says
some guidelines are clear and oth-
ers arenrsquot ldquoDevelopment by design
is needed throughout the pro-
cess but the piece we still struggle
with the most is mode of action
(MOA) and product characteriza-
tion Regulatory agencies under-
stand that it is difficult to pinpoint
MOArdquo
Preti emphasizes the importance
of working with regulators ldquoYou
can be in a position to inform and
influence regulations as products
are developedrdquo he says
For any company moving into
this brave new world top-level ques-
tions are needed Preti says empha-
sizing the following ldquoDo you have
an understanding of scale Can you
scale up from very small Can you
characterize the process and control
it for reliability and qualityrdquo
In the stem cell area in particu-
lar this is crucial Preti said since
the product relies heavily on the
process ldquoManufacturing can be
thought of as patient administra-
tion It cannot be separated in
the same way that it can for tra-
ditional medicinesrdquo For contract
suppliers he adds demonstrated
success will be important and
sponsors should consider whether
a prospective partner will be able
to stay with them for the long run
referenCes 1 P Hourd et al Regulatory Challenges
for the Manufacture and Scale-
Out of Autologous Cell Therapies
Massachusetts General Hospital
(Cambridge MA 2013)
2 S Farid et al Biotechnol Bioeng
111(1) 69-83 (January 2014)
3 R Grant Building Deliverable Cell
Therapeutics A Methodical Approach
to Manufacturing Development
(Webinar Oct 22 2014) bp
source invetech
Justifcation driversChange in cost
doseDevelopment
estimate
Unit Op Ref
Change decription
Comparability risk
Quality COGs Scale Sustainability LaborMaterials outplant
Cost Time
P-2 Process change 1 Medium X X darr $ $$$ TT
P-3 Process change 2 High X X X darr $$$ $$$$ TTT
P-4 Process change 3 Low X X darr $$ $$ TTT
P-2 Process change 4 Low X $$ T
QC-4 In-house QC test None X TT
QA-1Electronic Batch
RecordNone X X X
darr $$$$
TTTT
Table III Process changes timing and comparability risks cogs is cost of goods Qc is quality control
32 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Intellectual Property
Protecting Intellectual Property
in Engagements with CMOs
Important IP contractual provisions should be included when working with CMOs
Jennifer L CoLLins
Biotechnology and pharmaceutical companies
often engage contract CMOs to assist with
the development of their drugs This type
of arrangement naturally involves the devel-
opment of intellectual property (IP) so it is
important for both the CMO and the sponsor to iden-
tify pre-existing intellectual property and also define
how rights to new IP will be allocated protected and
enforced by and between the companies
If the arrangement with the CMO is a traditional fee-
for-service arrangement where the company pays the
CMO service fees to perform development work on its
behalf then generally all new IP (other than improve-
ments to the CMOrsquos manufacturing technology) will be
owned by the biotechnology or pharmaceutical com-
pany that engaged the CMO On the other hand if the
arrangement between the CMO and the biotechnology
or pharmaceutical company is more of a collaborative
arrangement where both parties share the costs of devel-
opment as well as any profits from the commercializa-
tion then IP concerns become much more complicated
In that case in addition to describing which party will
Jennifer L CoLLins is a technology and licensing attorney with Morningstar Law Group jcollinsmorningstarlawgroupcom
Fa
na
tic S
tud
ioG
ett
y Im
ag
es
wwwbiopharminternationalcom June 2015 BioPharm International eBook 33
Outsourcing Resources Intellectual Property
own the new IP the contract should
sort out which party will be respon-
sible for obtaining and maintaining
patents on the new IP controlling
litigation against infringers and
defending the IP against challenges
In addition the parties should agree
upfront on how the IP may be used
by each party following various ter-
mination events so that the parties
are not left fighting about such mat-
ters at a time when they may not be
inclined to agree to anything
In both arrangements without
specific contractual provisions to
define and protect the new IP a
biotechnology company or phar-
maceutical company that uses a
CMO for development is at risk of
losing control of and possibly own-
ership of important improvements
to its drugs This article discusses
IP contractual provisions that
should be included in each type of
arrangement
Fee-For-service
development work
Traditionally CMOs perform fee-for-
service development work where
a biotechnology or pharmaceutical
company engages the CMO to per-
form this work for a fixed fee In this
type of arrangement the CMO is a
service provider and typically takes
no ownership interest in the drug or
product that is being developed or
in improvements to an existing drug
or product that is being tested or
developed The contract governing
the relationship nevertheless must
be clear about the IP rights that are
owned and licensed by each party
If the contract does not provide
for proper assignments of IP to the
biotechnology or pharmaceutical
company then it is likely that the
CMO will own any improvements
or other inventions that it develops
in the performance of the develop-
ment services even if that is not the
intent of the parties
Without signed written contracts
that state otherwise under United
States patent law the inventor of
a patentable invention or improve-
ment will own the invention or
improvement even if the inventor
is engaged to develop the invention
or the improvement for a customer
or other third party To ensure
that the biotechnology company or
pharmaceutical company obtains
all the patent and other IP rights
in developments inventions and
improvements created in the per-
formance of services by the CMO
the governing contract between the
biotechnology company or phar-
maceutical company and the CMO
must include written present assign-
ments of those IP rights from the
CMO to the company Indeed based
on recent cases it is crucial that the
assignment clause in the contract
be a ldquopresentrdquo assignment mean-
ing that it must state specifically
that the CMO ldquohereby assignshelliprdquo
rather than a clause stating that the
CMO ldquoagrees to assignrdquo rights in the
future Otherwise the contract will
be interpreted as a promise to assign
rights in the future and the bio
pharmaceutical company will have
to go back to the CMO at some later
point in time for a separate writ-
ten assignment of rights to obtain
all patent and other IP rights in the
developments
While it sounds logical and
straightforward that the CMO
would assign all inventions created
in the development work to its cus-
tomer it is not always that simple
in practice What if the CMO devel-
ops an improvement to its manu-
facturing process in the course of
the development work Most CMOs
will want to reserve ownership of
any improvements to the CMOrsquos
existing IP and confidential infor-
mation This position is not unrea-
sonable as long as the customer
ultimately has the rights it needs in
all new inventions including those
owned by the CMO to take the drug
forward through further develop-
ment and commercialization One
must sort out IP allocation by sub-
ject matter To achieve this allo-
cation the development contract
typically will state that each party
retains ownership of all IP that it
owns as of the date of the contract
(all pre-existing intellectual prop-
erty) It will also state that the cus-
tomer owns its proprietary drug
and all improvements to the drug
or the customerrsquos confidential infor-
mation developed by either or both
parties The development contract
also may state more generally that
the customer owns all inventions
improvements and IP rights related
to the customerrsquos drug With respect
to the CMO and its IP the develop-
ment contract may state that the
CMO owns all improvements to the
CMOrsquos manufacturing process and
to its other pre-existing intellectual
property Again this reservation is
not unreasonable The customer
however should determine whether
it requires access to those improve-
ments or inventions to complete the
development and commercialization
of its drug If such access is necessary
the customer should either negotiate
a license (which may be royalty-free
or royalty-based depending on the
circumstances) to use such improve-
ments or inventions to develop and
commercialize the drug or the cus-
tomer should negotiate the terms
under which the CMO will continue
to use the improvements or inven-
tions to perform development work
andor manufacture the drug for the
customer
In the fee-for-service arrange-
ment the assignment and licensing
of IP rights in new inventions and
improvements is the key intellectual
property issue Intellectual property
considerations become much more
complicated when the biotechnol-
34 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Intellectual Property
ogy or pharmaceutical company
partners with a CMO in the devel-
opment of a new drug or product
where the parties share development
costs and profits from commercial-
ization of the drug or product
cmo as collaborator
Although not as common as the
fee-for-service arrangement a CMO
may partner with a biotechnology
or pharmaceutical company in the
development and commercialization
of a drug or product Generally both
parties are bringing pre-existing IP
to the collaboration such as a drug
from a biopharmaceutical com-
pany and proprietary drug delivery
technology from the CMO In this
scenario the CMO is taking a long-
term interest and often a part-own-
ership interest in the success of the
drug product
Instead of getting paid an hourly
rate or fixed fee for development
work on the drug product the CMO
may share the cost of development
work with the biotechnology or
pharmaceutical partner in exchange
for a share of the profits when the
drug or product is commercialized
Other costs involved in the develop-
ment and commercialization of the
drug or product that may be shared
include the cost of patent prosecu-
tion and the cost of patent litigation
if the drug product is challenged or
if it is misappropriated or infringed
To secure its interest in the profits
from commercialization of the drug
product the CMO may want to take
an ownership interest in the intel-
lectual property rights in the drug
product All of these issues must be
carefully addressed in the develop-
ment contract to avoid both finan-
cial and IP disputes
As with the fee-for-serv ice
arrangement the parties must
allocate ownership of intellectual
property rights pertaining to the
drug product to be commercialized
These rights include both pre-exist-
ing IP rights and new inventions
and improvements developed in
the course of the development con-
tract As with the fee-for-service
arrangement the parties typically
will retain rights to their respec-
tive pre-existing IP Intellectual
property rights to new inventions
and improvements however may
be shared by giving each party a
co-ownership interest in the intel-
lectual property Alternatively such
rights may be allocated by inventor-
ship with each party taking owner-
ship of developments that it invents
and with the parties jointly own-
ing jointly developed inventions
As another alternative the IP rights
may be allocated by subject matter
as in the fee-for-service arrangement
with each party owning improve-
ments and inventions related to its
pre-existing IP regardless of which
party invents those improvements
and inventions
Depending on how the pat-
ent applications are drafted the
IP rights may be ldquosliced and dicedrdquo
more finely One party for example
could own patent rights for a drug
product for one indication while the
other party owns patent rights for
the same drug product for another
indication Decisions about how
to allocate the IP rights should be
made in consultation with intel-
lectual property counsel and must
take into account the manner in
which the drug will be commercial-
ized If one party for example is
to commercialize the product in
North America and Europe and
the other party is to commercialize
the product in the rest of the world
then either the patent ownership
should be allocated by territory or
the development contract should
include exclusive cross-licenses of
each partyrsquos rights in all the intel-
lectual property necessary to com-
mercialize the product with the first
party having an exclusive license to
commercialize the product in North
America and Europe and the second
party having an exclusive license to
commercialize the product in the
rest of the world
If the parties are going to share
ownership of the IP related to the
drug product then the develop-
ment contract also should specify
which party is responsible for pros-
ecuting and maintaining patents
on the drug product Regardless of
which party is responsible for patent
prosecution and maintenance the
other party should be consulted and
involved in key decisions regard-
ing patent prosecution and main-
tenance Unless there are multiple
patents for different indications that
will be commercialized exclusively
by one party and unless each party
has exclusive rights to commercial-
ize the drug product in particular
geographic areas it generally makes
sense for one party to take the pri-
mary responsibility for patent pros-
ecution and maintenance globally
with the other party consulting and
sharing in the cost of the prosecu-
tion and maintenance in accordance
with the profit sharing The party
that is not responsible for prosecu-
tion and maintenance should have
a contractual right to approve patent
counsel and review and approve pat-
ent filings office action responses
and other communications with
patent registries before they are filed
or submitted so that the parties
agree on the proper prosecution and
maintenance strategy
Likewise the development con-
tract should allocate the rights and
responsibilities for asserting and
defending the patents pertaining to
the product in litigation Often these
rights and responsibilities are allo-
cated by territory according to com-
mercialization rights If one party
for example has the exclusive right
to commercialize the drug product
wwwbiopharminternationalcom June 2015 BioPharm International eBook 35
Outsourcing Resources Intellectual Property
in the US then that party would
have the first right and responsibil-
ity to assert the patents on the drug
product against potential infringers
and defend the patents on the drug
product against infringement claims
in the US Likewise if one party has
the exclusive right to commercial-
ize the drug product for a particular
indication then that party would
have the first right and responsibility
to assert or defend the patents per-
taining to the product with respect
to that indication Both scenarios
can present challenges First some
courts will not recognize an exclu-
sive licensee as having standing to
assert a patent That court might
only allow the owner of the patent
(and not the exclusive licensee) to
bring a lawsuit asserting the patent
It is crucial therefore that contrac-
tual provisions relating to patent liti-
gation require the party that owns
the patent to cooperate in any litiga-
tion and to join the suit as a party if
necessary
Another potential problem is that
any litigation that asserts the pat-
ent is likely to draw a counterclaim
that the patent is invalid thus put-
ting the patent itself at risk of invali-
dation While one party might be
threatened by a potential infringer
in a particular market or for a partic-
ular indication and therefore might
want to assert the patent against the
potential infringer the other party
might not want to put the patent at
risk as to other markets and other
indications For these reasons the
contractual provisions pertaining
to patent litigation must be care-
fully drafted in consultation with
intellectual property counsel who
understands standing issues and
the potential areas for dispute The
contractual provisions also should
include dispute resolution provi-
sions for situations when the parties
do not agree on whether a patent
should be asserted
Finally while the parties may
want and expect their relationship
to continue for the full term of the
patents and the development con-
tract the parties must carefully
consider the IP ramifications of an
early termination of the develop-
ment contract and the relationship
particularly if the development con-
tract is terminated for breach If the
parties are sharing in the ownership
commercialization and profits gen-
erated by the drug product devel-
oped by the collaboration then
all of that must be unwound upon
termination The development
contract should be as specific as
possible with respect to the effect of
various types of termination on the
intellectual property and contin-
ued commercialization of the drug
product In particular the parties
may agree that if the development
contract is terminated due to breach
by one party then that breaching
party must relinquish and transfer
all of its rights with respect to the
drug product to the other party to
allow the non-breaching party to
continue the commercialization of
the drug product post-termination
Whether the necessary rights are
assigned or licensed whether the
terminated party should receive a
royalty for the transfer or license of
those rights and what if any pre-
existing IP is licensed to enable the
non-breaching party to continue
commercializing the drug product
are all key factors for negotiation
The development contract should
also address other types of termi-
nation such as termination for
insolvency and termination with-
out cause (ie if one party decides
it no longer wants to commercial-
ize the drug product) In each case
the effect of termination on the IP
rights should be carefully analyzed
and a competent IP counsel should
carefully draft post-termination
assignments and licenses
conclusion
While IP lawyers are not equipped
with crystal balls they can be
extremely helpful in analyzing par-
ticular development commercializa-
tion and post-termination scenarios
all of which affect IP in a drug devel-
opment arrangement Contractual
provisions related to IP must be
carefully drafted to align with the
strategic business objectives of any
relationship and particularly one
whose purpose is the development
and commercialization of intellec-
tual property Without a clear con-
tract each collaborator is at risk of
losing important rights bp
Ad Index
AJINOMOTO ALTHEA 21
AVID BIOSERVICES INC 15
CYTOVANCE BIOLOGICS 27
EMERGENT BIOSOLUTIONS 13
EUROFINS LANCASTER LABORATORIES 7
SAFC BIOSCIENCES SIGMA ALDRICH 17
THERMO FISHER SCIENTIFIC 23
TOSOH BIOSCIENCE 11
WATERS CORP 3
Company Page
![Page 19: OUOURT NG I C RESOURCESfiles.pharmtech.com/alfresco_images/pharma/2019/03/08/... · 2019-07-22 · VIDEO INTERVIEW Biologics Development and Manufacturing Trends: Part I ... Media](https://reader034.vdocuments.us/reader034/viewer/2022050113/5f4aca886c0d6724390eb040/html5/thumbnails/19.jpg)
wwwbiopharminternationalcom June 2015 BioPharm International eBook 19
Outsourcing Resources CROCMO Viewpoints
in challenges in data handling
interpretation and data presenta-
tion Biosimilars have also caused
the re-emergence of orthogonal
techniques like size exclusion
chromatographyndashmulti-angle laser
light scattering (SEC-MALL) and
SV-AUC for aggregation and cir-
cular dichroism (CD) and fourier
transform infrared spectroscopy
(FTIR) for higher-order structure
as critical analyses to understand
and compare and detect subtle
higher-order structural differences
between innovator and biosimilar
samples
Hartzel (Catalent Pharma Solutions)
The rise of biosimilar drugs will
dawn the next generation of bio-
logic manufacturing and force
the industry to look at new ways
of manufacturing to drive down
costs Therefore the industry will
seek new manufacturing partners
with strong technical expertise to
drive out costs through innovation
and operational excellence
Lorimer (Patheon Biologics)
Genera l ly b ios imi la r d r ugs
will encourage competitiveness
within the biopharma sector
Biomanufacturers expect increased
pressure on cost of goods and
pricing Biopharmaceutical con-
tract service providers with a flex-
ible multi-product operation and
proven track record in the indus-
try are well placed to ensure care-
ful control of manufacturing costs
and product quality Processing
approaches wonrsquot change in terms
of technology but there will be a
greater emphasis on operational
excellence to reduce costly inef-
ficiencies and improve yields from
bioprocesses As more biosimilars
come to the forefront and as the
industry trend for outsourcing
continues increasing operational
flexibility while maintaining the
highest quality standards will be
the keys to success
business challenges
BioPharm What is the greatest
business challenge facing biophar-
maceutical companies today
Lively (PPD) As with all phar-
maceutical drug development the
greatest challenge is getting new
life-changing and potentially life-
saving drug candidates to mar-
ket Biopharmaceuticals face more
challenges than traditional small-
molecule drug products because
the science of characterization
of such biologic drugs is rapidly
evolving along with the regulatory
landscape Those companies that
are best able to successfully char-
acterize and differentiate innovator
and biosimilar products for safety
and efficacy will have the greatest
opportunity to benefit
the knowledge gap
BioPharm In what areas do you
see knowledge or expertise gaps in
current biopharmaceutical compa-
nies Why do these gaps exist
Lorimer (Patheon Biologics) There
is a gap in translating good sci-
ence to industrial applications of
technologies that provide for reli-
able efficient cost effective man-
ufacturing at commercial scale
Maintaining a focus during early
development on eventual commer-
cial manufacturing requirements
while balancing limited develop-
ment resources requires a broad
base of coordinated organiza-
tional skillsets and a disciplined
approach
Hartzel (Catalent Pharma Solutions)
Devicedelivery expertise is an
area that has a potential gap For
biologics the historic default con-
tainer closure has been a tradi-
tional glass vial As the healthcare
industry seeks ways to improve
patient care and reduce costs the
delivery to the patient needs to
adopt new technologies and this
is why we have seen a rise of pre-
filled syringes and autoinjectors
These technologies will continue
to evolve and so will the demand
for devicedelivery experts
Lively (PPD) One of the chal-
lenges we see is the various levels
of knowledge and expertise that
exist between biopharmaceutical
RampD and the testing and regula-
tory industries That differential is
impacting those industriesrsquo ability
to fully consider and effectively
implement expectations and guid-
ance for physicochemical and
functional characterization expec-
tations of biologic drugs
Lorimer (Patheon Biologics) The
commercial biopharmaceutical
industry demands global sourc-
ing of materials services supply
and ultimately distribution to each
patient This requires a robust inte-
grated supply chain to deliver high
value products to patients on-time
and at the right quality Doing this
reliably and efficiently with long
production lead times and uncer-
tain market sales forecasts is an
industry wide challenge
Speed-to-market remains a key
challenge to the development of
biopharmaceuticals Speedy first-
time-in-man clinical trials can be
a major hurdle for small biotech
companies and large pharma alike
Rogers (SGS Life Science Services)
I believe there continues to be a
significant problem in the level of
fundamental scientific expertise
within many biopharmaceutical
businesses In part this may be
attributed to the lsquokitrsquo and lsquoblack
boxrsquo approach of many modern
day technologies Due to the
complexity of many biopharma-
ceuticals their development and
success as therapeutics requires a
comprehensive range of scientific
disciplines and expertise which
can be difficult to fully realize
internally particularly for small
and mid-size companies bp
20 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources FillFinish
FillFinish Trends
Automation and disposables continue to reduce human error
Eric s LangEr
Fillfinish operations continue to be domi-
nated by trends in automation and the adop-
tion of single-use equipment But these are
by no means the only factors affecting these
high-value operations according to BioPlan
Associatesrsquo latest biomanufacturing study (1) Fill
finish processes are among the most outsourced
activities in biomanufacturing today and a service
providerrsquos capacity for vialing pre-filled devices
and lyophilization is crucial In a recently pub-
lished whitepaper (2) BioPlan Associates determined
that there is sufficient global in-house capacity
for biologics but the need continues to grow for
greater access to specialized outsourcing competence
Whatrsquos trending is significant improvements in auto-
mation and operations
AutomAtion And single use defining Cmo strAtegy
The top trends today involve automation and devel-
opment of better disposable technologies As part of
the BioPlan study biomanufacturers were asked to
select the trends they believe to be the most impor-
tant in fill and finish today The top three trends
are single-use equipment automation in full isolator
units and facilities becoming multi-product ori-
ented (see Figure 1)
Other important trends were noted including
bull Increased serialization and product labeling for
anti-counterfeiting
Eric s LangEr is president and managing partner at BioPlan Associates Inc elangerbioplanassociatescom tel 3019215979 wwwbioplanassociatescom
Ma
ria T
ou
tou
da
ki
Ge
tty Im
ag
es
WITH ALTHEA YOU HAVE THE POWER TO MAKE
You have the power to make a difference To make new therapeutics that improve quality of life and inspire a healthier world To do this you need a manufacturing partner who embraces your every challenge as its own who shares your unwavering tenacity and dedication from clinical studies through commercial success Thats The Power To Make
PLAY VIDEO
CONTRACT
MANUFACTURING
Q Development
Drug Substance
lj Drug Product
(D Al TH EA I THE POWER TO MAK A MEMBER OF THE AJINOMOTO GROUP
22 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources FillFinish
bull More f i l l f i n i sh fac i l i t ie s
o p e r a t i n g i n d e v e lo p i n g
regions
bull C o m p u t e r - b a s e d v i s u a l
i n s p e c t i o n a r t i f i c i a l
intelligence
bull Use of complex administration
systems
single-use equipment in fillfinish operAtionsT h e a d o p t i o n o f d i s p o s -
ab le e qu ipme nt i n f i l l f i n -
i s h o p e r a t i o n s e l i m i n a t e s
cross-contamination risks and
adds flexibility in process scale
While regulatory rest r ic t ions
may be increased by the adop-
tion of such equipment single-
use appl icat ions a lso enable
contract manufactur ing orga-
nizat ions (CMOs) to increase
fac i l i t y ut i l i z at ion t h rough
multi-product strategies which
can decrease their cost of goods
Experts in the f ield discussed
these trends
Peter Pekos CEO and president
of Dalton Pharma Services a fill
finish CMO says ldquoFor a CMO
disposables can be attractive hellip
For example a disposable isola-
tor can be packed and stored pre-
sterilized for use when needed
a f ixed isolator requires f ixed
space at all times Disposables
also allow a CMO to handle proj-
ects using specific systems for
non-typical project needs such
as disposable isolators without
going to the expense of buying
permanent isolator infrastruc-
ture Disposables do not obviate
the need for technical expertise
hellip so the need for a CMO isnrsquot
really reduced In fact CMOs
with expertise in single-use sys-
tems hellip can make them more
attractiverdquo
Mar t ina Fe r neman cor po -
rate development manager at
Recipharm bel ieves that the
adoption of single-usedispos-
able equipment is now impacting
f i l l and f inish ldquoIn mult ipur-
pose sites the cleaning proce-
dures will become more crucial
to avoid cross contamination
Single-use equipment [also] has
the advantage of shorter lead
t imes and lower procurement
costs Since no cleaning proce-
dure has to be established and
aseptic connections are easier to
be built-up the use of single-
use equipment is not only faster
but also safer than conventional
equipmentrdquo
AutomAtion in full isolAtor unitsW hi le s ing le -use equ ipment
adoption may be one of the hot-
test f i l lf inish trend automa-
tion technologies may actually
be experiencing more rapid rates
of implementation among bio-
manufacturers Indeed sepa-
rate results from BioPlanrsquos 12th
annual study suggest that the
industry wi l l be as l ikely to
implement automation technolo-
gies as they will use single-use
f i l l-f inish devices dur ing the
next 24 months
The removal of human factors
is a key to improving product
quality Isolators and automa-
tion are therefore key drivers
as facilities seek to improve their
i n f r a s t r u c t u r e I n nov a t io n
around equipment and facilities
able to handle multiple products
is going to continue Flexibility
is key as the reduced flexibility
of isolators (and higher cost) in
relation to traditional restricted
access barrier (RAB) systems may
deter some CMOs from adopt-
ing isolators The jury is st i l l
out because the decision fac-
tors between RAB and isolators
are complex and this tends to be
a high-cost decision often left
to the larger f illf inish CMOs
ldquoCMOs will adopt isolator tech-
nologies in their processes to
meet industry needs and reduce
r isk In some cases this wil l
also include disposable isolators
which can offer the benefits of
fixed isolators but add a degree
of f lexibil ity to the manufac-
turerrdquo Pekos notes
According to Ferneman adopt-
ing automat ion in ful l isola-
tor units to reduce the need for
operators is a trend seen in the
CMO market ldquoUse of barr ier
technology (RABS or isolators)
should ensure optimal protec-
t ion of ster i le areas Isolators
bear a better potential to prevent
biocontamination Since the iso-
lator is a closed system a lower
air quality than in RABS systems
can be usedrdquo For freeze-dried
products the RABS system is a
better choice because loading
has to be performed in class AB
surrounding
Fig
ur
e 1
is
co
ur
te
sy
oF
th
e a
ut
ho
r
Figure 1 selected bioprocessing fllfnish trends in 2015
Single-usedisposable equipment
adoption55
36
35Facilities becoming more multi-
product-use oriented
Automation in full isolator units
reduce need for operators
More compounds More accuratelyFaster than ever
Quantitation transformed
Todayrsquos range of possible therapeutic agents from small molecules to peptides to antibodies and
ADCrsquos makes quantitative bioanalysis a challenge Quantify potential therapeutics faster and more
accurately with our new portfolio of LC-MS instruments sample prep solutions and software HRAM
solutions using Thermo Scienti ctrade Orbitraptrade MS enables selectivity for complex molecules while
triple quadrupole MS delivers SRM sensitivity and speed to detect targeted compounds more quickly
Meet todayrsquos challenges with us and together wersquoll transform quantitative bioanalysis
Thermo Scienti ctrade Orbitrap Fusiontrade MSUnprecedented depth of analysis and
throughput for biological discovery
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in a triple quadrupole MSMS
Thermo Scienti ctrade Q Exactivetrade MSScreen and quantify known and unknown targets with HRAM Orbitrap technology
copy 2
014
Ther
mo
Fish
er S
cien
tifi c
Inc
All
right
s re
serv
ed A
ll tr
adem
arks
are
th
e pr
oper
ty o
f The
rmo
Fish
er S
cien
tifi c
and
its
subs
idia
ries
bull Discover more at thermoscienti ccomquan-transformed
24 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources FillFinish
Cmos stAying
AheAd of the Curve
In the whitepaper on in-house
fillfinish operations for recom-
binant therapeutics (2) BioPlan
found relatively low average in-
house capacity utilization rates
for lyophilization (55) pre-filled
devices (58) and vialing (70)
This finding suggests that for fill
finish CMOs the real value isnrsquot
necessarily in providing additional
flexible capacity but rather in posi-
tioning themselves as providing
highly sophisticated and novel
technologies and expertise in fill
finish services Indeed CMOs are
expected to have state-of-the-art
equipment As Pekos notes ldquoCMOs
who implement flexible and inno-
vative technologies to make man-
ufacturing or development more
efficient faster compliant or more
economical all serve to make them
more attractive to customersrdquo
For CMOs that make use of
innovative fillfinish technologies
there appears to be a good deal
of demand Results from BioPlanrsquos
annual studies indicate that fill
finish services are among the most
widely and heavily outsourced
biomanufacturing activities today
and are also among the activities
that biomanufacturers are most
likely to outsource at significantly
higher levels in the future
Biomanufacturers and CMOs are
actively looking to their fillfin-
ish equipment suppliers and are
beginning to demand additional
new technologies innovation and
product development In 2014 for
example when the top areas that
biomanufacturers wanted their
suppliers to focus their develop-
ment efforts on were measured
fillfinish services topped the list
cited by 23 of biomanufacturers
Not only did that figure represent
a substantial increase from years
past (13 in 2011) but it was also
ahead of other services including
upstream and downstream process
development services
Fillfinish will continue
to be an area of
growth for CMOs
There are a number of areas in
which suppliers can add value to
fillfinish innovation according
to industry experts Jim Agalloco
president of Agalloco amp Associates
in Belle Mead NJ says ldquovendors of
equipment and components to fill
finish must continue their roles as
technology leaders Innovation in
this market has always been sup-
plier driven because the operating
firms do not have the necessary
expertise Collaboration between
equipment manufacturers and
component suppliers is essential
for implementation of new con-
tainer systems single-use dispos-
ables and other advancesrdquo
Ronald Malone senior principal
scientist at Novartis Vaccines says
ldquoBlow-fill-seal containerclosure
systems are beneficial for small-
volume parenterals However over-
all cost may still be higher per unit
than traditional vialstopper fill-
ing Vaccines and biologicals can
benefit from single-dose disposable
systems that drive down the cost
of the containerclosure system
This will assist the global supply to
developing world countries where
these products are truly neededrdquo
W B W i e d e r s e i m o f
PharmaBioSource in Wayne PA
states ldquoWe see smaller higher
technical facilities inclusive of dis-
posables (isolators and not RABS)
and advanced aseptic work cell
technology as the wave of the
futurerdquo
WhAt does the future hold
BioPlanrsquos survey data and indus-
try interviews indicate that fill
f inish will continue to be an
area of growth for CMOs that
maintain the required technical
quality and regulatory expertise
in this segment Experts have
taken note of CMOsrsquo introduc-
tion of smaller filling machines
for syringes or vials a trend that
may be in response to the indus-
try-wide move towards smaller-
scale manufactur ing projects
This shift may be accelerated by
the advent of biosimilars which
should provide an increasing
number of projects for fillfin-
ish CMOs although likely on a
smaller scale This increase in
projects could lead to potential
mergers and acquisitions with
some experts noting that fillfin-
ish CMOs are already engaging
in this trend toward larger capac-
ity and global operations
Indeed within the past 18
months a number of acquisi-
tions have occurred including
Pfizerrsquos acquisitions of Hospira
a nd In noPha r ma Pat heonrsquos
mergers in the contract services
space IDT Biolog ika invest-
ments Vet ter invest ing USD
$100 million to upgrade fill-fin-
ish facilities in the United States
a nd Ger ma ny a nd Ba xte r rsquos
investment in German facilities
and numerous others (3)
For CMOs to stay ahead of the
curve they will likely need to
continue to adopt disposables
technologies and advance their
automation in full isolators Ray
Cardin of PharMax Consulting
says ldquoIncreased use of dispos-
able pre-sterilized f illing tech-
nologies [are future trends] The
combination of these pre-ster-
ilized units with the coming of
age of ster i le connectors that
provide high sterility assurance
wwwbiopharminternationalcom June 2015 BioPharm International eBook 25
Outsourcing Resources FillFinish
Biologics Development and Manufacturing Trends Part II
Eric Langer Managing Partner BioPlan Associates talks about the results from BioPlan AssociatesOtilde 12th Annual Report and Survey of Biopharmaceutical Manufacturing Capacity and Production Langer discusses what respondents indicated as the number one trend in biologics manufacturing improving efficiencies and the biosimilars market
in less clean environments is
changing the way aseptic pro-
cesses are designedrdquo
Gordon Leichter PhD Eastern
r e g io n a l s a l e s m a n a ge r a t
Belimed in Charleston SC states
ldquoAutomat ion in fu l l i solators
wil l el iminate operator inter-
vention and laser-sealed vials
Automation will become more
integral to building automation
and enterprise systemsrdquo
Douglas Stockdale vice-presi-
dent CMCTechnical Operations
Hi l lhurst Biopharmaceut ica ls
Los Angeles CA says ldquoIndustry
will continue pushing the PAT
[process analytical technology]
envelope to f ind a lternat ive
methods to improve in-process
methodologies and processesrdquo
Fe r ne ma n add s ldquoCu r r e nt
trends in fillfinish innovation
will probably focus the market
authorization holders on a few
strategic products resulting in
outsourcing of a bigger share of
products overallrdquo
ConClusion
Until recently the handling of
ster i le l iquids in the pharma-
ceutical industry has relied on
relatively consistent techniques
during the past 100 years with
relatively slow changes in tech-
nologies and regulations result-
ing in incremental improvements
in safety efficiency and prod-
uct quality During the past 20
years however costly biologics
have taken a prominent indus-
try role The value of these drugs
can often be measured in tens of
thousands per dose This has put
greater pressure on these down-
stream fillfinish operations to
ensure quality safety and cost-
efficiency are not compromised
at this crucial late stage in manu-
facturing Trends in fillfinish for
recombinant therapeutics include
the increased use of isolator
technologies more high-speed
operations and other innovative
approaches including single-use
processing As a result of industry
research BioPlan expects more
outsourcing of fillfinish opera-
tions in coming years
referenCes 1 BioPlan Associates 12th Annual
Report and Survey of Biopharmaceutical
Manufacturing Capacity and Production
(Rockville MD April 2015) www
bioplanassociatescom
2 BioPlan Associates Trends in Aseptic
Bioprocessing Capacity for the Fill and
Finish of Recombinant Biologics An
Analysis of US and European In-house
Capacity and Capacity Utilization (BioPlan
Associates December 2014)
3 Information derived from BioPlan
Associatesrsquo BioFacilities Newsletters Bp
26 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Cell Therapy
Taking a ldquoDevelopment-by-Designrdquo
Approach to Cell Therapies
Whether outsourcing or developing cell therapies in-house success demands a focus on quality cost of goods
and sustainability from the start
Agnes shAnley
Cell therapies both autologous and allo-
geneic have come a long way in just a
few years Countries around the world
most recently Japan have passed regula-
tions designed to speed development of
these treatments which are now a big and growing
global business
In 2013 according to the Pharmaceutical Research
and Manufacturers Association 69 cell therapies six
of them autologous or patient-specific treatments
were in clinical trials or being reviewed in the United
States alone 15 of them in Phase III trials (1)
The road is littered with failures however often
in clinical stages This has been traced to problems
with manufacturing and failure to understand pro-
cess requirements earlier in the development process
Table I outlines manufacturing issues
As a growing number of Big Pharma companies
explore the potential for immune regenerative and
other cell therapies equipment manufacturers includ-
Agnes shAnley is senior editor of BioPharm International
SC
IEP
RO
GE
tt
y Im
aG
ES
wwwcytovancecomResponsive Reliable Resourceful
Your partner in biopharmaceutical contract manufacturing of therapeutic proteins and antibodies from mammalian cell culture and microbial fermentation
28 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Cell Therapy
ing Pall Corp EMD Millipore
and GE Biosystems have set up
centers of excellence to focus on
developing equipment for this
new market Engineering compa-
nies such as Invetech and Instrom
are developing equipment specific
to this niche
More CDMos are entering
Cell therapy Market niChe
Demand for spec ia l i zed ce l l
t he rapy ma nu fac t u r ing a nd
development serv ices is a lso
growing and has attracted Lonza
Bioservices Cognate BioServices
WuXi AppTech and Roslin Cells
among others
NeoStem is fol low ing t wo
paths pursuing its own cel l
therapy pipel ine and explor-
ing contract services through
its contract development and
manufac t u r ing organ i zat ion
(CDMO) subsidiary Progenitor
Cell Therapy (PCT) With bases
in Irvine and Mountain View CA
and Allendale NJ PCT is cur-
rently working with Intrexon and
Fibrocell on connective tissue
treatments and with the United
K ingdomrsquos Adapt immune on
oncology treatments
A new CEO David Mazzo with
a doctorate in analytical chemis-
try and experience running both
private and public international
biopharma companies assumed
NeoStemrsquos leadership in January
He sees no conflict between grow-
ing a pipeline and a contract man-
ufacturing business
ldquoWe are not trying to be two
di f ferent companies and we
do not see the two competing
with each otherrdquo says Mazzo
in an interview with BioPharm
Inte rnat ionalrsquos s i ster publ ica-
tion Pharmaceutical Technology
during his second week on the
job ldquoInstead there is a symbi-
otic relationship between themrdquo
As he sees it the companyrsquos
track record in developing prod-
ucts should attract more spon-
sors ldquoProblems in development
usually occur at the interfaces
Our unique experience of having
lsquodone that beforersquo should be help-
fulrdquo he says
In January PCT entered a
partnership with Invetech an
equipment design firm based in
Australia with offices in San Diego
to develop automated equipment
for cell therapy manufacturing Fig
ur
e 1
is
co
ur
te
sy
oF
in
ve
te
ch
Figure 1 Part of an automated solution being developed by neostem and invetech Automating processes is key to reducing costs
wwwbiopharminternationalcom June 2015 BioPharm International eBook 29
Outsourcing Resources Cell Therapy
The two companies have already
been working together for a year
now honing the design and speci-
fications for the instrumentation
says NeoStemrsquos Chief Scientific
Officer (CSO) Robert Preti The
equipment will tackle cell therapyrsquos
most challenging side autologous
treatments where the manufactur-
ing lot is the patient dose adminis-
tered at the patientrsquos bedside
As Preti notes there really isnrsquot
much available today in the way
of automated equipment for cell
therapy especially on the autolo-
gous side The equipment will sep-
arate and wash cells among other
functions
labor-intensive
proCesses aDD Cost
So far Preti says the company
is evaluating the evolving equip-
ment in NeoStemrsquos own manu-
facturing efforts ldquoOne of the
largest commercial bottlenecks
is the heavy labor required by
processes especially for patient-
specific uses where one batch is
one patientrdquo
The cost of goods i s ver y
high Preti says ldquoSuccess long-
term will require a whole new
approach to development The
goal is to provide high qual-
ity and sustainabilityrdquo he says
Removing manual operat ions
and human error from the pro-
cess will be crucial
Invetech has been work ing
on cell therapy process scale-up
automation for more than 10
years and has successfully com-
pleted projects in North America
Europe and Asia for companies
that include Argos Therapeutics
Aa s t rom CCR M Hu mac y te
Innovacell Janssen kSep Systems
MolMed Organovo and ViaCyte
accord ing to R ichard Grant
global VP of the companyrsquos bio-
pharma operations who has been
with the company for more than
14 years
ldquoThe goal is to develop a mix
of equipment and manufactur-
ing st rateg ies that maximize
quality scalability and sustain-
ability with an eye toward cost-
effect iveness and commercial
viabilityrdquo Grant says Invetechrsquos
solutions typically tailor a mix of
OEM and customized equipment
to the clientrsquos processes The com-
pany recently commercialized
equipment used to manufacture
Janssenrsquos macular degeneration
treatment
Costs of current manufactur-
ing processes for both autologous
and allogeneic therapies are dif-
ficult to peg Last year experts
at University College London
attempted to pinpoint the cost and
overall economics of allogeneic
cell therapy using single-use tech-
nologies (2)
What is clear for both alloge-
neic and autologous systems is
that cell therapy development
Table I Manufacturing scenarios for cell therapies
Attributes Off-the-shelf therapiesPatient-specifc
therapies
Source material Always allogeneic Autologous or matched allogeneic
Batch size Many patients One patient
Business model Similar to pharmabiopharma New
Scaling Scale up (Increased lot size) Scale out (Increased number of lots)
Comparability vs scale Higher concern Lower concern
Manufacturing design drivers
Mission critical success + +++
Optimized process yield +++ +
Dimensional efficiency ++ +-
Integration +- ++
Automation + ++
source invetech
Table II Measuring comparability risk
Risk level Example Timing
None Automated sterility test Before biologics license application
Low Change in process unit op and cell journey is the same
Before 50 accrual in pivotal trials
Medium Change in process unit op and cell journey is similar
Before initiation of pivotal clinical trials
High Change in process unit op and the cell journey is matched
Some Phase II clinical data
source invetech
30 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Cell Therapy
and manufacturing costs are cur-
rently prohibitive ldquoThe starting
points can vary dramaticallyrdquo
Grant says He recalls one cus-
tomer whose autologous process
ran to $80000 per patient in early
stage clinical trials Automation
he says could reduce costs by
40ndash90 depending on the ther-
apy involved
DevelopMent by Design
But before one can automate any
process one must understand it
NeoStem and PCT like a growing
number of companies are taking
the principle of quality by design
(QbD) to heart in their work
Mazzo arguably one of few
life-science company CEOs to
even articulate the QbD concept
explains that the company has
gone a step further and broadened
the International Conference on
Harmonization guidances adopted
by FDA into ldquodevelopment by
designrdquo (DbD)
ldquoWe say first consider the end-
point then take process as is and
understand its unit operations
Develop inputs and outputs and
discrete steps and define the pro-
cess in a way that promotes under-
standingrdquo he says
ldquoThis is challenging given prod-
uct complexity but there is a need
to understand the mechanism of
action very well so you put each
process in this overall envelope
of DbD and consider the cost of
goods scalability and sustainabil-
ityrdquo Preti adds ldquoYou consider the
process from the end only this
time each batch is an individual
patientrdquo
The critical part is defining and
measuring process needs he says
ldquoProduct definition is very impor-
tant particularly the quality target
product profilerdquo explains Brian
Hampson VP of manufacturing
development and engineering at
PCT in an Oct 22 2014 webcast
for the International Society for
Cell Therapy (3)
have the enD in MinD
Such t h ings a s for mulat ion
issues dosage potency impu-
rities residuals and microbial
assurance need to be thought out
clearly from the start Hampson
says as well as indications for
use geographic market projec-
tions cost-of-goods targets and
IP issues
The profile needs to be a liv-
ing document that changes as the
product takes shape Hampson
says There is a tendency for peo-
ple in the industry to ignore the
product profile until they have
all the answers says Hampson
ldquoInstead it needs to be developed
really early even when you donrsquot
have all or even many of the
answers hellip you can leave them
as blanks and continue to review
add to and updaterdquo
The result is not only a tool for
better understanding the prod-
uct process and mechanism of
action but a communication tool
for stakeholders
When to start DbD for cell ther-
apies ldquoThe temptation is to begin
later in the game when you need
reasonable COGS and you need
to be sure of sustainable manu-
facturingrdquo says Hampson ldquoThe
key thing is comparability and
anticipating its implications early
in the clinical program It needs
to be flexible at the early stagesrdquo
Hampson says ldquoBut as you near
Phase III you need to lock in your
equipment evolves
In the bioreactor area there is great interest in moving from 2-D to 3-D processing to enable the processing of the cell volumes required something that companies such as Israelrsquos Pluristem have been doing for some time
Equipment designer Instrom is partnering with companies including BRTI Life Sciences to focus on 3-D cell matrix technologies developed by Dr John Brekke EMD Millipore has been partnering with PharmaCell BV to use its Mobius bioreactor platform to expand and harvest HepRG cells GE Sciences is also evaluating Wave and other systems and set up a center of excellence in Wales recently
In other equipment areas Pall Corp has been partnering with CMDG LLC on cord blood processing technology Following are some of the equipment manufacturers and systems applied in cell therapy development and manufacturing
bull Beckman Coulter bull Corning Cell Stacks and Cell Cube
bull EMD Millipore bull GE Biosciences
bull Thermo Scientificrsquos Nunc Cell Factories bull Pall Corp
wwwbiopharminternationalcom June 2015 BioPharm International eBook 31
Outsourcing Resources Cell Therapy
processrdquo Table II summarizes issues
and points where changes will be
easier
Thus Hampson suggests that
companies whether work ing
with CDMOs or in house think
through such issues as cost of
goods scale and sustainabil-
ity much earlier than they typi-
cally do today ldquoYou donrsquot need to
spend money on these issues but
you do need to think about themrdquo
Hampson says ldquoQuality must be
a key issue even at Phase II trials
and early action pays off laterrdquo
In addition he suggests that
companies th ink about the
e nt i r e p r o c e s s c o mp r e he n -
sively ldquoThere is often a tendency
to focus on the core processing
stepsrdquo Hampson says ldquoBut you
really need to think about every-
thing from collection of mate-
rial through to administration
of product to the patient and all
steps in betweenrdquo
For ce l l therapies d ispos -
able equipment and closed pro-
cesses can be an effective way to
reduce costs and improve quality
and compliance ldquoThey can allow
you to isolate different processes
so that they can share a Class
100000 cleanroom environmentrdquo
Hampson says
ldquoInvesting in automated informa-
tion management can also pay offrdquo
he says ldquowhere an electronic batch
record system that is fully validated
can enable release-by-exception
reducing error documentation
time and overall quality assurance
costsrdquo Hampson says
In addition he notes it is
important to look at costs compre-
hensively an increase in one cost
can for example reduce overhead
improve process sustainability and
cost of goods Table III outlines the
issues
regulations evolve
Cell therapy is still a new area
for regulators and as Preti says
some guidelines are clear and oth-
ers arenrsquot ldquoDevelopment by design
is needed throughout the pro-
cess but the piece we still struggle
with the most is mode of action
(MOA) and product characteriza-
tion Regulatory agencies under-
stand that it is difficult to pinpoint
MOArdquo
Preti emphasizes the importance
of working with regulators ldquoYou
can be in a position to inform and
influence regulations as products
are developedrdquo he says
For any company moving into
this brave new world top-level ques-
tions are needed Preti says empha-
sizing the following ldquoDo you have
an understanding of scale Can you
scale up from very small Can you
characterize the process and control
it for reliability and qualityrdquo
In the stem cell area in particu-
lar this is crucial Preti said since
the product relies heavily on the
process ldquoManufacturing can be
thought of as patient administra-
tion It cannot be separated in
the same way that it can for tra-
ditional medicinesrdquo For contract
suppliers he adds demonstrated
success will be important and
sponsors should consider whether
a prospective partner will be able
to stay with them for the long run
referenCes 1 P Hourd et al Regulatory Challenges
for the Manufacture and Scale-
Out of Autologous Cell Therapies
Massachusetts General Hospital
(Cambridge MA 2013)
2 S Farid et al Biotechnol Bioeng
111(1) 69-83 (January 2014)
3 R Grant Building Deliverable Cell
Therapeutics A Methodical Approach
to Manufacturing Development
(Webinar Oct 22 2014) bp
source invetech
Justifcation driversChange in cost
doseDevelopment
estimate
Unit Op Ref
Change decription
Comparability risk
Quality COGs Scale Sustainability LaborMaterials outplant
Cost Time
P-2 Process change 1 Medium X X darr $ $$$ TT
P-3 Process change 2 High X X X darr $$$ $$$$ TTT
P-4 Process change 3 Low X X darr $$ $$ TTT
P-2 Process change 4 Low X $$ T
QC-4 In-house QC test None X TT
QA-1Electronic Batch
RecordNone X X X
darr $$$$
TTTT
Table III Process changes timing and comparability risks cogs is cost of goods Qc is quality control
32 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Intellectual Property
Protecting Intellectual Property
in Engagements with CMOs
Important IP contractual provisions should be included when working with CMOs
Jennifer L CoLLins
Biotechnology and pharmaceutical companies
often engage contract CMOs to assist with
the development of their drugs This type
of arrangement naturally involves the devel-
opment of intellectual property (IP) so it is
important for both the CMO and the sponsor to iden-
tify pre-existing intellectual property and also define
how rights to new IP will be allocated protected and
enforced by and between the companies
If the arrangement with the CMO is a traditional fee-
for-service arrangement where the company pays the
CMO service fees to perform development work on its
behalf then generally all new IP (other than improve-
ments to the CMOrsquos manufacturing technology) will be
owned by the biotechnology or pharmaceutical com-
pany that engaged the CMO On the other hand if the
arrangement between the CMO and the biotechnology
or pharmaceutical company is more of a collaborative
arrangement where both parties share the costs of devel-
opment as well as any profits from the commercializa-
tion then IP concerns become much more complicated
In that case in addition to describing which party will
Jennifer L CoLLins is a technology and licensing attorney with Morningstar Law Group jcollinsmorningstarlawgroupcom
Fa
na
tic S
tud
ioG
ett
y Im
ag
es
wwwbiopharminternationalcom June 2015 BioPharm International eBook 33
Outsourcing Resources Intellectual Property
own the new IP the contract should
sort out which party will be respon-
sible for obtaining and maintaining
patents on the new IP controlling
litigation against infringers and
defending the IP against challenges
In addition the parties should agree
upfront on how the IP may be used
by each party following various ter-
mination events so that the parties
are not left fighting about such mat-
ters at a time when they may not be
inclined to agree to anything
In both arrangements without
specific contractual provisions to
define and protect the new IP a
biotechnology company or phar-
maceutical company that uses a
CMO for development is at risk of
losing control of and possibly own-
ership of important improvements
to its drugs This article discusses
IP contractual provisions that
should be included in each type of
arrangement
Fee-For-service
development work
Traditionally CMOs perform fee-for-
service development work where
a biotechnology or pharmaceutical
company engages the CMO to per-
form this work for a fixed fee In this
type of arrangement the CMO is a
service provider and typically takes
no ownership interest in the drug or
product that is being developed or
in improvements to an existing drug
or product that is being tested or
developed The contract governing
the relationship nevertheless must
be clear about the IP rights that are
owned and licensed by each party
If the contract does not provide
for proper assignments of IP to the
biotechnology or pharmaceutical
company then it is likely that the
CMO will own any improvements
or other inventions that it develops
in the performance of the develop-
ment services even if that is not the
intent of the parties
Without signed written contracts
that state otherwise under United
States patent law the inventor of
a patentable invention or improve-
ment will own the invention or
improvement even if the inventor
is engaged to develop the invention
or the improvement for a customer
or other third party To ensure
that the biotechnology company or
pharmaceutical company obtains
all the patent and other IP rights
in developments inventions and
improvements created in the per-
formance of services by the CMO
the governing contract between the
biotechnology company or phar-
maceutical company and the CMO
must include written present assign-
ments of those IP rights from the
CMO to the company Indeed based
on recent cases it is crucial that the
assignment clause in the contract
be a ldquopresentrdquo assignment mean-
ing that it must state specifically
that the CMO ldquohereby assignshelliprdquo
rather than a clause stating that the
CMO ldquoagrees to assignrdquo rights in the
future Otherwise the contract will
be interpreted as a promise to assign
rights in the future and the bio
pharmaceutical company will have
to go back to the CMO at some later
point in time for a separate writ-
ten assignment of rights to obtain
all patent and other IP rights in the
developments
While it sounds logical and
straightforward that the CMO
would assign all inventions created
in the development work to its cus-
tomer it is not always that simple
in practice What if the CMO devel-
ops an improvement to its manu-
facturing process in the course of
the development work Most CMOs
will want to reserve ownership of
any improvements to the CMOrsquos
existing IP and confidential infor-
mation This position is not unrea-
sonable as long as the customer
ultimately has the rights it needs in
all new inventions including those
owned by the CMO to take the drug
forward through further develop-
ment and commercialization One
must sort out IP allocation by sub-
ject matter To achieve this allo-
cation the development contract
typically will state that each party
retains ownership of all IP that it
owns as of the date of the contract
(all pre-existing intellectual prop-
erty) It will also state that the cus-
tomer owns its proprietary drug
and all improvements to the drug
or the customerrsquos confidential infor-
mation developed by either or both
parties The development contract
also may state more generally that
the customer owns all inventions
improvements and IP rights related
to the customerrsquos drug With respect
to the CMO and its IP the develop-
ment contract may state that the
CMO owns all improvements to the
CMOrsquos manufacturing process and
to its other pre-existing intellectual
property Again this reservation is
not unreasonable The customer
however should determine whether
it requires access to those improve-
ments or inventions to complete the
development and commercialization
of its drug If such access is necessary
the customer should either negotiate
a license (which may be royalty-free
or royalty-based depending on the
circumstances) to use such improve-
ments or inventions to develop and
commercialize the drug or the cus-
tomer should negotiate the terms
under which the CMO will continue
to use the improvements or inven-
tions to perform development work
andor manufacture the drug for the
customer
In the fee-for-service arrange-
ment the assignment and licensing
of IP rights in new inventions and
improvements is the key intellectual
property issue Intellectual property
considerations become much more
complicated when the biotechnol-
34 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Intellectual Property
ogy or pharmaceutical company
partners with a CMO in the devel-
opment of a new drug or product
where the parties share development
costs and profits from commercial-
ization of the drug or product
cmo as collaborator
Although not as common as the
fee-for-service arrangement a CMO
may partner with a biotechnology
or pharmaceutical company in the
development and commercialization
of a drug or product Generally both
parties are bringing pre-existing IP
to the collaboration such as a drug
from a biopharmaceutical com-
pany and proprietary drug delivery
technology from the CMO In this
scenario the CMO is taking a long-
term interest and often a part-own-
ership interest in the success of the
drug product
Instead of getting paid an hourly
rate or fixed fee for development
work on the drug product the CMO
may share the cost of development
work with the biotechnology or
pharmaceutical partner in exchange
for a share of the profits when the
drug or product is commercialized
Other costs involved in the develop-
ment and commercialization of the
drug or product that may be shared
include the cost of patent prosecu-
tion and the cost of patent litigation
if the drug product is challenged or
if it is misappropriated or infringed
To secure its interest in the profits
from commercialization of the drug
product the CMO may want to take
an ownership interest in the intel-
lectual property rights in the drug
product All of these issues must be
carefully addressed in the develop-
ment contract to avoid both finan-
cial and IP disputes
As with the fee-for-serv ice
arrangement the parties must
allocate ownership of intellectual
property rights pertaining to the
drug product to be commercialized
These rights include both pre-exist-
ing IP rights and new inventions
and improvements developed in
the course of the development con-
tract As with the fee-for-service
arrangement the parties typically
will retain rights to their respec-
tive pre-existing IP Intellectual
property rights to new inventions
and improvements however may
be shared by giving each party a
co-ownership interest in the intel-
lectual property Alternatively such
rights may be allocated by inventor-
ship with each party taking owner-
ship of developments that it invents
and with the parties jointly own-
ing jointly developed inventions
As another alternative the IP rights
may be allocated by subject matter
as in the fee-for-service arrangement
with each party owning improve-
ments and inventions related to its
pre-existing IP regardless of which
party invents those improvements
and inventions
Depending on how the pat-
ent applications are drafted the
IP rights may be ldquosliced and dicedrdquo
more finely One party for example
could own patent rights for a drug
product for one indication while the
other party owns patent rights for
the same drug product for another
indication Decisions about how
to allocate the IP rights should be
made in consultation with intel-
lectual property counsel and must
take into account the manner in
which the drug will be commercial-
ized If one party for example is
to commercialize the product in
North America and Europe and
the other party is to commercialize
the product in the rest of the world
then either the patent ownership
should be allocated by territory or
the development contract should
include exclusive cross-licenses of
each partyrsquos rights in all the intel-
lectual property necessary to com-
mercialize the product with the first
party having an exclusive license to
commercialize the product in North
America and Europe and the second
party having an exclusive license to
commercialize the product in the
rest of the world
If the parties are going to share
ownership of the IP related to the
drug product then the develop-
ment contract also should specify
which party is responsible for pros-
ecuting and maintaining patents
on the drug product Regardless of
which party is responsible for patent
prosecution and maintenance the
other party should be consulted and
involved in key decisions regard-
ing patent prosecution and main-
tenance Unless there are multiple
patents for different indications that
will be commercialized exclusively
by one party and unless each party
has exclusive rights to commercial-
ize the drug product in particular
geographic areas it generally makes
sense for one party to take the pri-
mary responsibility for patent pros-
ecution and maintenance globally
with the other party consulting and
sharing in the cost of the prosecu-
tion and maintenance in accordance
with the profit sharing The party
that is not responsible for prosecu-
tion and maintenance should have
a contractual right to approve patent
counsel and review and approve pat-
ent filings office action responses
and other communications with
patent registries before they are filed
or submitted so that the parties
agree on the proper prosecution and
maintenance strategy
Likewise the development con-
tract should allocate the rights and
responsibilities for asserting and
defending the patents pertaining to
the product in litigation Often these
rights and responsibilities are allo-
cated by territory according to com-
mercialization rights If one party
for example has the exclusive right
to commercialize the drug product
wwwbiopharminternationalcom June 2015 BioPharm International eBook 35
Outsourcing Resources Intellectual Property
in the US then that party would
have the first right and responsibil-
ity to assert the patents on the drug
product against potential infringers
and defend the patents on the drug
product against infringement claims
in the US Likewise if one party has
the exclusive right to commercial-
ize the drug product for a particular
indication then that party would
have the first right and responsibility
to assert or defend the patents per-
taining to the product with respect
to that indication Both scenarios
can present challenges First some
courts will not recognize an exclu-
sive licensee as having standing to
assert a patent That court might
only allow the owner of the patent
(and not the exclusive licensee) to
bring a lawsuit asserting the patent
It is crucial therefore that contrac-
tual provisions relating to patent liti-
gation require the party that owns
the patent to cooperate in any litiga-
tion and to join the suit as a party if
necessary
Another potential problem is that
any litigation that asserts the pat-
ent is likely to draw a counterclaim
that the patent is invalid thus put-
ting the patent itself at risk of invali-
dation While one party might be
threatened by a potential infringer
in a particular market or for a partic-
ular indication and therefore might
want to assert the patent against the
potential infringer the other party
might not want to put the patent at
risk as to other markets and other
indications For these reasons the
contractual provisions pertaining
to patent litigation must be care-
fully drafted in consultation with
intellectual property counsel who
understands standing issues and
the potential areas for dispute The
contractual provisions also should
include dispute resolution provi-
sions for situations when the parties
do not agree on whether a patent
should be asserted
Finally while the parties may
want and expect their relationship
to continue for the full term of the
patents and the development con-
tract the parties must carefully
consider the IP ramifications of an
early termination of the develop-
ment contract and the relationship
particularly if the development con-
tract is terminated for breach If the
parties are sharing in the ownership
commercialization and profits gen-
erated by the drug product devel-
oped by the collaboration then
all of that must be unwound upon
termination The development
contract should be as specific as
possible with respect to the effect of
various types of termination on the
intellectual property and contin-
ued commercialization of the drug
product In particular the parties
may agree that if the development
contract is terminated due to breach
by one party then that breaching
party must relinquish and transfer
all of its rights with respect to the
drug product to the other party to
allow the non-breaching party to
continue the commercialization of
the drug product post-termination
Whether the necessary rights are
assigned or licensed whether the
terminated party should receive a
royalty for the transfer or license of
those rights and what if any pre-
existing IP is licensed to enable the
non-breaching party to continue
commercializing the drug product
are all key factors for negotiation
The development contract should
also address other types of termi-
nation such as termination for
insolvency and termination with-
out cause (ie if one party decides
it no longer wants to commercial-
ize the drug product) In each case
the effect of termination on the IP
rights should be carefully analyzed
and a competent IP counsel should
carefully draft post-termination
assignments and licenses
conclusion
While IP lawyers are not equipped
with crystal balls they can be
extremely helpful in analyzing par-
ticular development commercializa-
tion and post-termination scenarios
all of which affect IP in a drug devel-
opment arrangement Contractual
provisions related to IP must be
carefully drafted to align with the
strategic business objectives of any
relationship and particularly one
whose purpose is the development
and commercialization of intellec-
tual property Without a clear con-
tract each collaborator is at risk of
losing important rights bp
Ad Index
AJINOMOTO ALTHEA 21
AVID BIOSERVICES INC 15
CYTOVANCE BIOLOGICS 27
EMERGENT BIOSOLUTIONS 13
EUROFINS LANCASTER LABORATORIES 7
SAFC BIOSCIENCES SIGMA ALDRICH 17
THERMO FISHER SCIENTIFIC 23
TOSOH BIOSCIENCE 11
WATERS CORP 3
Company Page
![Page 20: OUOURT NG I C RESOURCESfiles.pharmtech.com/alfresco_images/pharma/2019/03/08/... · 2019-07-22 · VIDEO INTERVIEW Biologics Development and Manufacturing Trends: Part I ... Media](https://reader034.vdocuments.us/reader034/viewer/2022050113/5f4aca886c0d6724390eb040/html5/thumbnails/20.jpg)
20 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources FillFinish
FillFinish Trends
Automation and disposables continue to reduce human error
Eric s LangEr
Fillfinish operations continue to be domi-
nated by trends in automation and the adop-
tion of single-use equipment But these are
by no means the only factors affecting these
high-value operations according to BioPlan
Associatesrsquo latest biomanufacturing study (1) Fill
finish processes are among the most outsourced
activities in biomanufacturing today and a service
providerrsquos capacity for vialing pre-filled devices
and lyophilization is crucial In a recently pub-
lished whitepaper (2) BioPlan Associates determined
that there is sufficient global in-house capacity
for biologics but the need continues to grow for
greater access to specialized outsourcing competence
Whatrsquos trending is significant improvements in auto-
mation and operations
AutomAtion And single use defining Cmo strAtegy
The top trends today involve automation and devel-
opment of better disposable technologies As part of
the BioPlan study biomanufacturers were asked to
select the trends they believe to be the most impor-
tant in fill and finish today The top three trends
are single-use equipment automation in full isolator
units and facilities becoming multi-product ori-
ented (see Figure 1)
Other important trends were noted including
bull Increased serialization and product labeling for
anti-counterfeiting
Eric s LangEr is president and managing partner at BioPlan Associates Inc elangerbioplanassociatescom tel 3019215979 wwwbioplanassociatescom
Ma
ria T
ou
tou
da
ki
Ge
tty Im
ag
es
WITH ALTHEA YOU HAVE THE POWER TO MAKE
You have the power to make a difference To make new therapeutics that improve quality of life and inspire a healthier world To do this you need a manufacturing partner who embraces your every challenge as its own who shares your unwavering tenacity and dedication from clinical studies through commercial success Thats The Power To Make
PLAY VIDEO
CONTRACT
MANUFACTURING
Q Development
Drug Substance
lj Drug Product
(D Al TH EA I THE POWER TO MAK A MEMBER OF THE AJINOMOTO GROUP
22 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources FillFinish
bull More f i l l f i n i sh fac i l i t ie s
o p e r a t i n g i n d e v e lo p i n g
regions
bull C o m p u t e r - b a s e d v i s u a l
i n s p e c t i o n a r t i f i c i a l
intelligence
bull Use of complex administration
systems
single-use equipment in fillfinish operAtionsT h e a d o p t i o n o f d i s p o s -
ab le e qu ipme nt i n f i l l f i n -
i s h o p e r a t i o n s e l i m i n a t e s
cross-contamination risks and
adds flexibility in process scale
While regulatory rest r ic t ions
may be increased by the adop-
tion of such equipment single-
use appl icat ions a lso enable
contract manufactur ing orga-
nizat ions (CMOs) to increase
fac i l i t y ut i l i z at ion t h rough
multi-product strategies which
can decrease their cost of goods
Experts in the f ield discussed
these trends
Peter Pekos CEO and president
of Dalton Pharma Services a fill
finish CMO says ldquoFor a CMO
disposables can be attractive hellip
For example a disposable isola-
tor can be packed and stored pre-
sterilized for use when needed
a f ixed isolator requires f ixed
space at all times Disposables
also allow a CMO to handle proj-
ects using specific systems for
non-typical project needs such
as disposable isolators without
going to the expense of buying
permanent isolator infrastruc-
ture Disposables do not obviate
the need for technical expertise
hellip so the need for a CMO isnrsquot
really reduced In fact CMOs
with expertise in single-use sys-
tems hellip can make them more
attractiverdquo
Mar t ina Fe r neman cor po -
rate development manager at
Recipharm bel ieves that the
adoption of single-usedispos-
able equipment is now impacting
f i l l and f inish ldquoIn mult ipur-
pose sites the cleaning proce-
dures will become more crucial
to avoid cross contamination
Single-use equipment [also] has
the advantage of shorter lead
t imes and lower procurement
costs Since no cleaning proce-
dure has to be established and
aseptic connections are easier to
be built-up the use of single-
use equipment is not only faster
but also safer than conventional
equipmentrdquo
AutomAtion in full isolAtor unitsW hi le s ing le -use equ ipment
adoption may be one of the hot-
test f i l lf inish trend automa-
tion technologies may actually
be experiencing more rapid rates
of implementation among bio-
manufacturers Indeed sepa-
rate results from BioPlanrsquos 12th
annual study suggest that the
industry wi l l be as l ikely to
implement automation technolo-
gies as they will use single-use
f i l l-f inish devices dur ing the
next 24 months
The removal of human factors
is a key to improving product
quality Isolators and automa-
tion are therefore key drivers
as facilities seek to improve their
i n f r a s t r u c t u r e I n nov a t io n
around equipment and facilities
able to handle multiple products
is going to continue Flexibility
is key as the reduced flexibility
of isolators (and higher cost) in
relation to traditional restricted
access barrier (RAB) systems may
deter some CMOs from adopt-
ing isolators The jury is st i l l
out because the decision fac-
tors between RAB and isolators
are complex and this tends to be
a high-cost decision often left
to the larger f illf inish CMOs
ldquoCMOs will adopt isolator tech-
nologies in their processes to
meet industry needs and reduce
r isk In some cases this wil l
also include disposable isolators
which can offer the benefits of
fixed isolators but add a degree
of f lexibil ity to the manufac-
turerrdquo Pekos notes
According to Ferneman adopt-
ing automat ion in ful l isola-
tor units to reduce the need for
operators is a trend seen in the
CMO market ldquoUse of barr ier
technology (RABS or isolators)
should ensure optimal protec-
t ion of ster i le areas Isolators
bear a better potential to prevent
biocontamination Since the iso-
lator is a closed system a lower
air quality than in RABS systems
can be usedrdquo For freeze-dried
products the RABS system is a
better choice because loading
has to be performed in class AB
surrounding
Fig
ur
e 1
is
co
ur
te
sy
oF
th
e a
ut
ho
r
Figure 1 selected bioprocessing fllfnish trends in 2015
Single-usedisposable equipment
adoption55
36
35Facilities becoming more multi-
product-use oriented
Automation in full isolator units
reduce need for operators
More compounds More accuratelyFaster than ever
Quantitation transformed
Todayrsquos range of possible therapeutic agents from small molecules to peptides to antibodies and
ADCrsquos makes quantitative bioanalysis a challenge Quantify potential therapeutics faster and more
accurately with our new portfolio of LC-MS instruments sample prep solutions and software HRAM
solutions using Thermo Scienti ctrade Orbitraptrade MS enables selectivity for complex molecules while
triple quadrupole MS delivers SRM sensitivity and speed to detect targeted compounds more quickly
Meet todayrsquos challenges with us and together wersquoll transform quantitative bioanalysis
Thermo Scienti ctrade Orbitrap Fusiontrade MSUnprecedented depth of analysis and
throughput for biological discovery
Thermo Scienti ctrade TSQ Quantivatrade MSLeading SRM sensitivity and speed
in a triple quadrupole MSMS
Thermo Scienti ctrade Q Exactivetrade MSScreen and quantify known and unknown targets with HRAM Orbitrap technology
copy 2
014
Ther
mo
Fish
er S
cien
tifi c
Inc
All
right
s re
serv
ed A
ll tr
adem
arks
are
th
e pr
oper
ty o
f The
rmo
Fish
er S
cien
tifi c
and
its
subs
idia
ries
bull Discover more at thermoscienti ccomquan-transformed
24 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources FillFinish
Cmos stAying
AheAd of the Curve
In the whitepaper on in-house
fillfinish operations for recom-
binant therapeutics (2) BioPlan
found relatively low average in-
house capacity utilization rates
for lyophilization (55) pre-filled
devices (58) and vialing (70)
This finding suggests that for fill
finish CMOs the real value isnrsquot
necessarily in providing additional
flexible capacity but rather in posi-
tioning themselves as providing
highly sophisticated and novel
technologies and expertise in fill
finish services Indeed CMOs are
expected to have state-of-the-art
equipment As Pekos notes ldquoCMOs
who implement flexible and inno-
vative technologies to make man-
ufacturing or development more
efficient faster compliant or more
economical all serve to make them
more attractive to customersrdquo
For CMOs that make use of
innovative fillfinish technologies
there appears to be a good deal
of demand Results from BioPlanrsquos
annual studies indicate that fill
finish services are among the most
widely and heavily outsourced
biomanufacturing activities today
and are also among the activities
that biomanufacturers are most
likely to outsource at significantly
higher levels in the future
Biomanufacturers and CMOs are
actively looking to their fillfin-
ish equipment suppliers and are
beginning to demand additional
new technologies innovation and
product development In 2014 for
example when the top areas that
biomanufacturers wanted their
suppliers to focus their develop-
ment efforts on were measured
fillfinish services topped the list
cited by 23 of biomanufacturers
Not only did that figure represent
a substantial increase from years
past (13 in 2011) but it was also
ahead of other services including
upstream and downstream process
development services
Fillfinish will continue
to be an area of
growth for CMOs
There are a number of areas in
which suppliers can add value to
fillfinish innovation according
to industry experts Jim Agalloco
president of Agalloco amp Associates
in Belle Mead NJ says ldquovendors of
equipment and components to fill
finish must continue their roles as
technology leaders Innovation in
this market has always been sup-
plier driven because the operating
firms do not have the necessary
expertise Collaboration between
equipment manufacturers and
component suppliers is essential
for implementation of new con-
tainer systems single-use dispos-
ables and other advancesrdquo
Ronald Malone senior principal
scientist at Novartis Vaccines says
ldquoBlow-fill-seal containerclosure
systems are beneficial for small-
volume parenterals However over-
all cost may still be higher per unit
than traditional vialstopper fill-
ing Vaccines and biologicals can
benefit from single-dose disposable
systems that drive down the cost
of the containerclosure system
This will assist the global supply to
developing world countries where
these products are truly neededrdquo
W B W i e d e r s e i m o f
PharmaBioSource in Wayne PA
states ldquoWe see smaller higher
technical facilities inclusive of dis-
posables (isolators and not RABS)
and advanced aseptic work cell
technology as the wave of the
futurerdquo
WhAt does the future hold
BioPlanrsquos survey data and indus-
try interviews indicate that fill
f inish will continue to be an
area of growth for CMOs that
maintain the required technical
quality and regulatory expertise
in this segment Experts have
taken note of CMOsrsquo introduc-
tion of smaller filling machines
for syringes or vials a trend that
may be in response to the indus-
try-wide move towards smaller-
scale manufactur ing projects
This shift may be accelerated by
the advent of biosimilars which
should provide an increasing
number of projects for fillfin-
ish CMOs although likely on a
smaller scale This increase in
projects could lead to potential
mergers and acquisitions with
some experts noting that fillfin-
ish CMOs are already engaging
in this trend toward larger capac-
ity and global operations
Indeed within the past 18
months a number of acquisi-
tions have occurred including
Pfizerrsquos acquisitions of Hospira
a nd In noPha r ma Pat heonrsquos
mergers in the contract services
space IDT Biolog ika invest-
ments Vet ter invest ing USD
$100 million to upgrade fill-fin-
ish facilities in the United States
a nd Ger ma ny a nd Ba xte r rsquos
investment in German facilities
and numerous others (3)
For CMOs to stay ahead of the
curve they will likely need to
continue to adopt disposables
technologies and advance their
automation in full isolators Ray
Cardin of PharMax Consulting
says ldquoIncreased use of dispos-
able pre-sterilized f illing tech-
nologies [are future trends] The
combination of these pre-ster-
ilized units with the coming of
age of ster i le connectors that
provide high sterility assurance
wwwbiopharminternationalcom June 2015 BioPharm International eBook 25
Outsourcing Resources FillFinish
Biologics Development and Manufacturing Trends Part II
Eric Langer Managing Partner BioPlan Associates talks about the results from BioPlan AssociatesOtilde 12th Annual Report and Survey of Biopharmaceutical Manufacturing Capacity and Production Langer discusses what respondents indicated as the number one trend in biologics manufacturing improving efficiencies and the biosimilars market
in less clean environments is
changing the way aseptic pro-
cesses are designedrdquo
Gordon Leichter PhD Eastern
r e g io n a l s a l e s m a n a ge r a t
Belimed in Charleston SC states
ldquoAutomat ion in fu l l i solators
wil l el iminate operator inter-
vention and laser-sealed vials
Automation will become more
integral to building automation
and enterprise systemsrdquo
Douglas Stockdale vice-presi-
dent CMCTechnical Operations
Hi l lhurst Biopharmaceut ica ls
Los Angeles CA says ldquoIndustry
will continue pushing the PAT
[process analytical technology]
envelope to f ind a lternat ive
methods to improve in-process
methodologies and processesrdquo
Fe r ne ma n add s ldquoCu r r e nt
trends in fillfinish innovation
will probably focus the market
authorization holders on a few
strategic products resulting in
outsourcing of a bigger share of
products overallrdquo
ConClusion
Until recently the handling of
ster i le l iquids in the pharma-
ceutical industry has relied on
relatively consistent techniques
during the past 100 years with
relatively slow changes in tech-
nologies and regulations result-
ing in incremental improvements
in safety efficiency and prod-
uct quality During the past 20
years however costly biologics
have taken a prominent indus-
try role The value of these drugs
can often be measured in tens of
thousands per dose This has put
greater pressure on these down-
stream fillfinish operations to
ensure quality safety and cost-
efficiency are not compromised
at this crucial late stage in manu-
facturing Trends in fillfinish for
recombinant therapeutics include
the increased use of isolator
technologies more high-speed
operations and other innovative
approaches including single-use
processing As a result of industry
research BioPlan expects more
outsourcing of fillfinish opera-
tions in coming years
referenCes 1 BioPlan Associates 12th Annual
Report and Survey of Biopharmaceutical
Manufacturing Capacity and Production
(Rockville MD April 2015) www
bioplanassociatescom
2 BioPlan Associates Trends in Aseptic
Bioprocessing Capacity for the Fill and
Finish of Recombinant Biologics An
Analysis of US and European In-house
Capacity and Capacity Utilization (BioPlan
Associates December 2014)
3 Information derived from BioPlan
Associatesrsquo BioFacilities Newsletters Bp
26 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Cell Therapy
Taking a ldquoDevelopment-by-Designrdquo
Approach to Cell Therapies
Whether outsourcing or developing cell therapies in-house success demands a focus on quality cost of goods
and sustainability from the start
Agnes shAnley
Cell therapies both autologous and allo-
geneic have come a long way in just a
few years Countries around the world
most recently Japan have passed regula-
tions designed to speed development of
these treatments which are now a big and growing
global business
In 2013 according to the Pharmaceutical Research
and Manufacturers Association 69 cell therapies six
of them autologous or patient-specific treatments
were in clinical trials or being reviewed in the United
States alone 15 of them in Phase III trials (1)
The road is littered with failures however often
in clinical stages This has been traced to problems
with manufacturing and failure to understand pro-
cess requirements earlier in the development process
Table I outlines manufacturing issues
As a growing number of Big Pharma companies
explore the potential for immune regenerative and
other cell therapies equipment manufacturers includ-
Agnes shAnley is senior editor of BioPharm International
SC
IEP
RO
GE
tt
y Im
aG
ES
wwwcytovancecomResponsive Reliable Resourceful
Your partner in biopharmaceutical contract manufacturing of therapeutic proteins and antibodies from mammalian cell culture and microbial fermentation
28 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Cell Therapy
ing Pall Corp EMD Millipore
and GE Biosystems have set up
centers of excellence to focus on
developing equipment for this
new market Engineering compa-
nies such as Invetech and Instrom
are developing equipment specific
to this niche
More CDMos are entering
Cell therapy Market niChe
Demand for spec ia l i zed ce l l
t he rapy ma nu fac t u r ing a nd
development serv ices is a lso
growing and has attracted Lonza
Bioservices Cognate BioServices
WuXi AppTech and Roslin Cells
among others
NeoStem is fol low ing t wo
paths pursuing its own cel l
therapy pipel ine and explor-
ing contract services through
its contract development and
manufac t u r ing organ i zat ion
(CDMO) subsidiary Progenitor
Cell Therapy (PCT) With bases
in Irvine and Mountain View CA
and Allendale NJ PCT is cur-
rently working with Intrexon and
Fibrocell on connective tissue
treatments and with the United
K ingdomrsquos Adapt immune on
oncology treatments
A new CEO David Mazzo with
a doctorate in analytical chemis-
try and experience running both
private and public international
biopharma companies assumed
NeoStemrsquos leadership in January
He sees no conflict between grow-
ing a pipeline and a contract man-
ufacturing business
ldquoWe are not trying to be two
di f ferent companies and we
do not see the two competing
with each otherrdquo says Mazzo
in an interview with BioPharm
Inte rnat ionalrsquos s i ster publ ica-
tion Pharmaceutical Technology
during his second week on the
job ldquoInstead there is a symbi-
otic relationship between themrdquo
As he sees it the companyrsquos
track record in developing prod-
ucts should attract more spon-
sors ldquoProblems in development
usually occur at the interfaces
Our unique experience of having
lsquodone that beforersquo should be help-
fulrdquo he says
In January PCT entered a
partnership with Invetech an
equipment design firm based in
Australia with offices in San Diego
to develop automated equipment
for cell therapy manufacturing Fig
ur
e 1
is
co
ur
te
sy
oF
in
ve
te
ch
Figure 1 Part of an automated solution being developed by neostem and invetech Automating processes is key to reducing costs
wwwbiopharminternationalcom June 2015 BioPharm International eBook 29
Outsourcing Resources Cell Therapy
The two companies have already
been working together for a year
now honing the design and speci-
fications for the instrumentation
says NeoStemrsquos Chief Scientific
Officer (CSO) Robert Preti The
equipment will tackle cell therapyrsquos
most challenging side autologous
treatments where the manufactur-
ing lot is the patient dose adminis-
tered at the patientrsquos bedside
As Preti notes there really isnrsquot
much available today in the way
of automated equipment for cell
therapy especially on the autolo-
gous side The equipment will sep-
arate and wash cells among other
functions
labor-intensive
proCesses aDD Cost
So far Preti says the company
is evaluating the evolving equip-
ment in NeoStemrsquos own manu-
facturing efforts ldquoOne of the
largest commercial bottlenecks
is the heavy labor required by
processes especially for patient-
specific uses where one batch is
one patientrdquo
The cost of goods i s ver y
high Preti says ldquoSuccess long-
term will require a whole new
approach to development The
goal is to provide high qual-
ity and sustainabilityrdquo he says
Removing manual operat ions
and human error from the pro-
cess will be crucial
Invetech has been work ing
on cell therapy process scale-up
automation for more than 10
years and has successfully com-
pleted projects in North America
Europe and Asia for companies
that include Argos Therapeutics
Aa s t rom CCR M Hu mac y te
Innovacell Janssen kSep Systems
MolMed Organovo and ViaCyte
accord ing to R ichard Grant
global VP of the companyrsquos bio-
pharma operations who has been
with the company for more than
14 years
ldquoThe goal is to develop a mix
of equipment and manufactur-
ing st rateg ies that maximize
quality scalability and sustain-
ability with an eye toward cost-
effect iveness and commercial
viabilityrdquo Grant says Invetechrsquos
solutions typically tailor a mix of
OEM and customized equipment
to the clientrsquos processes The com-
pany recently commercialized
equipment used to manufacture
Janssenrsquos macular degeneration
treatment
Costs of current manufactur-
ing processes for both autologous
and allogeneic therapies are dif-
ficult to peg Last year experts
at University College London
attempted to pinpoint the cost and
overall economics of allogeneic
cell therapy using single-use tech-
nologies (2)
What is clear for both alloge-
neic and autologous systems is
that cell therapy development
Table I Manufacturing scenarios for cell therapies
Attributes Off-the-shelf therapiesPatient-specifc
therapies
Source material Always allogeneic Autologous or matched allogeneic
Batch size Many patients One patient
Business model Similar to pharmabiopharma New
Scaling Scale up (Increased lot size) Scale out (Increased number of lots)
Comparability vs scale Higher concern Lower concern
Manufacturing design drivers
Mission critical success + +++
Optimized process yield +++ +
Dimensional efficiency ++ +-
Integration +- ++
Automation + ++
source invetech
Table II Measuring comparability risk
Risk level Example Timing
None Automated sterility test Before biologics license application
Low Change in process unit op and cell journey is the same
Before 50 accrual in pivotal trials
Medium Change in process unit op and cell journey is similar
Before initiation of pivotal clinical trials
High Change in process unit op and the cell journey is matched
Some Phase II clinical data
source invetech
30 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Cell Therapy
and manufacturing costs are cur-
rently prohibitive ldquoThe starting
points can vary dramaticallyrdquo
Grant says He recalls one cus-
tomer whose autologous process
ran to $80000 per patient in early
stage clinical trials Automation
he says could reduce costs by
40ndash90 depending on the ther-
apy involved
DevelopMent by Design
But before one can automate any
process one must understand it
NeoStem and PCT like a growing
number of companies are taking
the principle of quality by design
(QbD) to heart in their work
Mazzo arguably one of few
life-science company CEOs to
even articulate the QbD concept
explains that the company has
gone a step further and broadened
the International Conference on
Harmonization guidances adopted
by FDA into ldquodevelopment by
designrdquo (DbD)
ldquoWe say first consider the end-
point then take process as is and
understand its unit operations
Develop inputs and outputs and
discrete steps and define the pro-
cess in a way that promotes under-
standingrdquo he says
ldquoThis is challenging given prod-
uct complexity but there is a need
to understand the mechanism of
action very well so you put each
process in this overall envelope
of DbD and consider the cost of
goods scalability and sustainabil-
ityrdquo Preti adds ldquoYou consider the
process from the end only this
time each batch is an individual
patientrdquo
The critical part is defining and
measuring process needs he says
ldquoProduct definition is very impor-
tant particularly the quality target
product profilerdquo explains Brian
Hampson VP of manufacturing
development and engineering at
PCT in an Oct 22 2014 webcast
for the International Society for
Cell Therapy (3)
have the enD in MinD
Such t h ings a s for mulat ion
issues dosage potency impu-
rities residuals and microbial
assurance need to be thought out
clearly from the start Hampson
says as well as indications for
use geographic market projec-
tions cost-of-goods targets and
IP issues
The profile needs to be a liv-
ing document that changes as the
product takes shape Hampson
says There is a tendency for peo-
ple in the industry to ignore the
product profile until they have
all the answers says Hampson
ldquoInstead it needs to be developed
really early even when you donrsquot
have all or even many of the
answers hellip you can leave them
as blanks and continue to review
add to and updaterdquo
The result is not only a tool for
better understanding the prod-
uct process and mechanism of
action but a communication tool
for stakeholders
When to start DbD for cell ther-
apies ldquoThe temptation is to begin
later in the game when you need
reasonable COGS and you need
to be sure of sustainable manu-
facturingrdquo says Hampson ldquoThe
key thing is comparability and
anticipating its implications early
in the clinical program It needs
to be flexible at the early stagesrdquo
Hampson says ldquoBut as you near
Phase III you need to lock in your
equipment evolves
In the bioreactor area there is great interest in moving from 2-D to 3-D processing to enable the processing of the cell volumes required something that companies such as Israelrsquos Pluristem have been doing for some time
Equipment designer Instrom is partnering with companies including BRTI Life Sciences to focus on 3-D cell matrix technologies developed by Dr John Brekke EMD Millipore has been partnering with PharmaCell BV to use its Mobius bioreactor platform to expand and harvest HepRG cells GE Sciences is also evaluating Wave and other systems and set up a center of excellence in Wales recently
In other equipment areas Pall Corp has been partnering with CMDG LLC on cord blood processing technology Following are some of the equipment manufacturers and systems applied in cell therapy development and manufacturing
bull Beckman Coulter bull Corning Cell Stacks and Cell Cube
bull EMD Millipore bull GE Biosciences
bull Thermo Scientificrsquos Nunc Cell Factories bull Pall Corp
wwwbiopharminternationalcom June 2015 BioPharm International eBook 31
Outsourcing Resources Cell Therapy
processrdquo Table II summarizes issues
and points where changes will be
easier
Thus Hampson suggests that
companies whether work ing
with CDMOs or in house think
through such issues as cost of
goods scale and sustainabil-
ity much earlier than they typi-
cally do today ldquoYou donrsquot need to
spend money on these issues but
you do need to think about themrdquo
Hampson says ldquoQuality must be
a key issue even at Phase II trials
and early action pays off laterrdquo
In addition he suggests that
companies th ink about the
e nt i r e p r o c e s s c o mp r e he n -
sively ldquoThere is often a tendency
to focus on the core processing
stepsrdquo Hampson says ldquoBut you
really need to think about every-
thing from collection of mate-
rial through to administration
of product to the patient and all
steps in betweenrdquo
For ce l l therapies d ispos -
able equipment and closed pro-
cesses can be an effective way to
reduce costs and improve quality
and compliance ldquoThey can allow
you to isolate different processes
so that they can share a Class
100000 cleanroom environmentrdquo
Hampson says
ldquoInvesting in automated informa-
tion management can also pay offrdquo
he says ldquowhere an electronic batch
record system that is fully validated
can enable release-by-exception
reducing error documentation
time and overall quality assurance
costsrdquo Hampson says
In addition he notes it is
important to look at costs compre-
hensively an increase in one cost
can for example reduce overhead
improve process sustainability and
cost of goods Table III outlines the
issues
regulations evolve
Cell therapy is still a new area
for regulators and as Preti says
some guidelines are clear and oth-
ers arenrsquot ldquoDevelopment by design
is needed throughout the pro-
cess but the piece we still struggle
with the most is mode of action
(MOA) and product characteriza-
tion Regulatory agencies under-
stand that it is difficult to pinpoint
MOArdquo
Preti emphasizes the importance
of working with regulators ldquoYou
can be in a position to inform and
influence regulations as products
are developedrdquo he says
For any company moving into
this brave new world top-level ques-
tions are needed Preti says empha-
sizing the following ldquoDo you have
an understanding of scale Can you
scale up from very small Can you
characterize the process and control
it for reliability and qualityrdquo
In the stem cell area in particu-
lar this is crucial Preti said since
the product relies heavily on the
process ldquoManufacturing can be
thought of as patient administra-
tion It cannot be separated in
the same way that it can for tra-
ditional medicinesrdquo For contract
suppliers he adds demonstrated
success will be important and
sponsors should consider whether
a prospective partner will be able
to stay with them for the long run
referenCes 1 P Hourd et al Regulatory Challenges
for the Manufacture and Scale-
Out of Autologous Cell Therapies
Massachusetts General Hospital
(Cambridge MA 2013)
2 S Farid et al Biotechnol Bioeng
111(1) 69-83 (January 2014)
3 R Grant Building Deliverable Cell
Therapeutics A Methodical Approach
to Manufacturing Development
(Webinar Oct 22 2014) bp
source invetech
Justifcation driversChange in cost
doseDevelopment
estimate
Unit Op Ref
Change decription
Comparability risk
Quality COGs Scale Sustainability LaborMaterials outplant
Cost Time
P-2 Process change 1 Medium X X darr $ $$$ TT
P-3 Process change 2 High X X X darr $$$ $$$$ TTT
P-4 Process change 3 Low X X darr $$ $$ TTT
P-2 Process change 4 Low X $$ T
QC-4 In-house QC test None X TT
QA-1Electronic Batch
RecordNone X X X
darr $$$$
TTTT
Table III Process changes timing and comparability risks cogs is cost of goods Qc is quality control
32 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Intellectual Property
Protecting Intellectual Property
in Engagements with CMOs
Important IP contractual provisions should be included when working with CMOs
Jennifer L CoLLins
Biotechnology and pharmaceutical companies
often engage contract CMOs to assist with
the development of their drugs This type
of arrangement naturally involves the devel-
opment of intellectual property (IP) so it is
important for both the CMO and the sponsor to iden-
tify pre-existing intellectual property and also define
how rights to new IP will be allocated protected and
enforced by and between the companies
If the arrangement with the CMO is a traditional fee-
for-service arrangement where the company pays the
CMO service fees to perform development work on its
behalf then generally all new IP (other than improve-
ments to the CMOrsquos manufacturing technology) will be
owned by the biotechnology or pharmaceutical com-
pany that engaged the CMO On the other hand if the
arrangement between the CMO and the biotechnology
or pharmaceutical company is more of a collaborative
arrangement where both parties share the costs of devel-
opment as well as any profits from the commercializa-
tion then IP concerns become much more complicated
In that case in addition to describing which party will
Jennifer L CoLLins is a technology and licensing attorney with Morningstar Law Group jcollinsmorningstarlawgroupcom
Fa
na
tic S
tud
ioG
ett
y Im
ag
es
wwwbiopharminternationalcom June 2015 BioPharm International eBook 33
Outsourcing Resources Intellectual Property
own the new IP the contract should
sort out which party will be respon-
sible for obtaining and maintaining
patents on the new IP controlling
litigation against infringers and
defending the IP against challenges
In addition the parties should agree
upfront on how the IP may be used
by each party following various ter-
mination events so that the parties
are not left fighting about such mat-
ters at a time when they may not be
inclined to agree to anything
In both arrangements without
specific contractual provisions to
define and protect the new IP a
biotechnology company or phar-
maceutical company that uses a
CMO for development is at risk of
losing control of and possibly own-
ership of important improvements
to its drugs This article discusses
IP contractual provisions that
should be included in each type of
arrangement
Fee-For-service
development work
Traditionally CMOs perform fee-for-
service development work where
a biotechnology or pharmaceutical
company engages the CMO to per-
form this work for a fixed fee In this
type of arrangement the CMO is a
service provider and typically takes
no ownership interest in the drug or
product that is being developed or
in improvements to an existing drug
or product that is being tested or
developed The contract governing
the relationship nevertheless must
be clear about the IP rights that are
owned and licensed by each party
If the contract does not provide
for proper assignments of IP to the
biotechnology or pharmaceutical
company then it is likely that the
CMO will own any improvements
or other inventions that it develops
in the performance of the develop-
ment services even if that is not the
intent of the parties
Without signed written contracts
that state otherwise under United
States patent law the inventor of
a patentable invention or improve-
ment will own the invention or
improvement even if the inventor
is engaged to develop the invention
or the improvement for a customer
or other third party To ensure
that the biotechnology company or
pharmaceutical company obtains
all the patent and other IP rights
in developments inventions and
improvements created in the per-
formance of services by the CMO
the governing contract between the
biotechnology company or phar-
maceutical company and the CMO
must include written present assign-
ments of those IP rights from the
CMO to the company Indeed based
on recent cases it is crucial that the
assignment clause in the contract
be a ldquopresentrdquo assignment mean-
ing that it must state specifically
that the CMO ldquohereby assignshelliprdquo
rather than a clause stating that the
CMO ldquoagrees to assignrdquo rights in the
future Otherwise the contract will
be interpreted as a promise to assign
rights in the future and the bio
pharmaceutical company will have
to go back to the CMO at some later
point in time for a separate writ-
ten assignment of rights to obtain
all patent and other IP rights in the
developments
While it sounds logical and
straightforward that the CMO
would assign all inventions created
in the development work to its cus-
tomer it is not always that simple
in practice What if the CMO devel-
ops an improvement to its manu-
facturing process in the course of
the development work Most CMOs
will want to reserve ownership of
any improvements to the CMOrsquos
existing IP and confidential infor-
mation This position is not unrea-
sonable as long as the customer
ultimately has the rights it needs in
all new inventions including those
owned by the CMO to take the drug
forward through further develop-
ment and commercialization One
must sort out IP allocation by sub-
ject matter To achieve this allo-
cation the development contract
typically will state that each party
retains ownership of all IP that it
owns as of the date of the contract
(all pre-existing intellectual prop-
erty) It will also state that the cus-
tomer owns its proprietary drug
and all improvements to the drug
or the customerrsquos confidential infor-
mation developed by either or both
parties The development contract
also may state more generally that
the customer owns all inventions
improvements and IP rights related
to the customerrsquos drug With respect
to the CMO and its IP the develop-
ment contract may state that the
CMO owns all improvements to the
CMOrsquos manufacturing process and
to its other pre-existing intellectual
property Again this reservation is
not unreasonable The customer
however should determine whether
it requires access to those improve-
ments or inventions to complete the
development and commercialization
of its drug If such access is necessary
the customer should either negotiate
a license (which may be royalty-free
or royalty-based depending on the
circumstances) to use such improve-
ments or inventions to develop and
commercialize the drug or the cus-
tomer should negotiate the terms
under which the CMO will continue
to use the improvements or inven-
tions to perform development work
andor manufacture the drug for the
customer
In the fee-for-service arrange-
ment the assignment and licensing
of IP rights in new inventions and
improvements is the key intellectual
property issue Intellectual property
considerations become much more
complicated when the biotechnol-
34 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Intellectual Property
ogy or pharmaceutical company
partners with a CMO in the devel-
opment of a new drug or product
where the parties share development
costs and profits from commercial-
ization of the drug or product
cmo as collaborator
Although not as common as the
fee-for-service arrangement a CMO
may partner with a biotechnology
or pharmaceutical company in the
development and commercialization
of a drug or product Generally both
parties are bringing pre-existing IP
to the collaboration such as a drug
from a biopharmaceutical com-
pany and proprietary drug delivery
technology from the CMO In this
scenario the CMO is taking a long-
term interest and often a part-own-
ership interest in the success of the
drug product
Instead of getting paid an hourly
rate or fixed fee for development
work on the drug product the CMO
may share the cost of development
work with the biotechnology or
pharmaceutical partner in exchange
for a share of the profits when the
drug or product is commercialized
Other costs involved in the develop-
ment and commercialization of the
drug or product that may be shared
include the cost of patent prosecu-
tion and the cost of patent litigation
if the drug product is challenged or
if it is misappropriated or infringed
To secure its interest in the profits
from commercialization of the drug
product the CMO may want to take
an ownership interest in the intel-
lectual property rights in the drug
product All of these issues must be
carefully addressed in the develop-
ment contract to avoid both finan-
cial and IP disputes
As with the fee-for-serv ice
arrangement the parties must
allocate ownership of intellectual
property rights pertaining to the
drug product to be commercialized
These rights include both pre-exist-
ing IP rights and new inventions
and improvements developed in
the course of the development con-
tract As with the fee-for-service
arrangement the parties typically
will retain rights to their respec-
tive pre-existing IP Intellectual
property rights to new inventions
and improvements however may
be shared by giving each party a
co-ownership interest in the intel-
lectual property Alternatively such
rights may be allocated by inventor-
ship with each party taking owner-
ship of developments that it invents
and with the parties jointly own-
ing jointly developed inventions
As another alternative the IP rights
may be allocated by subject matter
as in the fee-for-service arrangement
with each party owning improve-
ments and inventions related to its
pre-existing IP regardless of which
party invents those improvements
and inventions
Depending on how the pat-
ent applications are drafted the
IP rights may be ldquosliced and dicedrdquo
more finely One party for example
could own patent rights for a drug
product for one indication while the
other party owns patent rights for
the same drug product for another
indication Decisions about how
to allocate the IP rights should be
made in consultation with intel-
lectual property counsel and must
take into account the manner in
which the drug will be commercial-
ized If one party for example is
to commercialize the product in
North America and Europe and
the other party is to commercialize
the product in the rest of the world
then either the patent ownership
should be allocated by territory or
the development contract should
include exclusive cross-licenses of
each partyrsquos rights in all the intel-
lectual property necessary to com-
mercialize the product with the first
party having an exclusive license to
commercialize the product in North
America and Europe and the second
party having an exclusive license to
commercialize the product in the
rest of the world
If the parties are going to share
ownership of the IP related to the
drug product then the develop-
ment contract also should specify
which party is responsible for pros-
ecuting and maintaining patents
on the drug product Regardless of
which party is responsible for patent
prosecution and maintenance the
other party should be consulted and
involved in key decisions regard-
ing patent prosecution and main-
tenance Unless there are multiple
patents for different indications that
will be commercialized exclusively
by one party and unless each party
has exclusive rights to commercial-
ize the drug product in particular
geographic areas it generally makes
sense for one party to take the pri-
mary responsibility for patent pros-
ecution and maintenance globally
with the other party consulting and
sharing in the cost of the prosecu-
tion and maintenance in accordance
with the profit sharing The party
that is not responsible for prosecu-
tion and maintenance should have
a contractual right to approve patent
counsel and review and approve pat-
ent filings office action responses
and other communications with
patent registries before they are filed
or submitted so that the parties
agree on the proper prosecution and
maintenance strategy
Likewise the development con-
tract should allocate the rights and
responsibilities for asserting and
defending the patents pertaining to
the product in litigation Often these
rights and responsibilities are allo-
cated by territory according to com-
mercialization rights If one party
for example has the exclusive right
to commercialize the drug product
wwwbiopharminternationalcom June 2015 BioPharm International eBook 35
Outsourcing Resources Intellectual Property
in the US then that party would
have the first right and responsibil-
ity to assert the patents on the drug
product against potential infringers
and defend the patents on the drug
product against infringement claims
in the US Likewise if one party has
the exclusive right to commercial-
ize the drug product for a particular
indication then that party would
have the first right and responsibility
to assert or defend the patents per-
taining to the product with respect
to that indication Both scenarios
can present challenges First some
courts will not recognize an exclu-
sive licensee as having standing to
assert a patent That court might
only allow the owner of the patent
(and not the exclusive licensee) to
bring a lawsuit asserting the patent
It is crucial therefore that contrac-
tual provisions relating to patent liti-
gation require the party that owns
the patent to cooperate in any litiga-
tion and to join the suit as a party if
necessary
Another potential problem is that
any litigation that asserts the pat-
ent is likely to draw a counterclaim
that the patent is invalid thus put-
ting the patent itself at risk of invali-
dation While one party might be
threatened by a potential infringer
in a particular market or for a partic-
ular indication and therefore might
want to assert the patent against the
potential infringer the other party
might not want to put the patent at
risk as to other markets and other
indications For these reasons the
contractual provisions pertaining
to patent litigation must be care-
fully drafted in consultation with
intellectual property counsel who
understands standing issues and
the potential areas for dispute The
contractual provisions also should
include dispute resolution provi-
sions for situations when the parties
do not agree on whether a patent
should be asserted
Finally while the parties may
want and expect their relationship
to continue for the full term of the
patents and the development con-
tract the parties must carefully
consider the IP ramifications of an
early termination of the develop-
ment contract and the relationship
particularly if the development con-
tract is terminated for breach If the
parties are sharing in the ownership
commercialization and profits gen-
erated by the drug product devel-
oped by the collaboration then
all of that must be unwound upon
termination The development
contract should be as specific as
possible with respect to the effect of
various types of termination on the
intellectual property and contin-
ued commercialization of the drug
product In particular the parties
may agree that if the development
contract is terminated due to breach
by one party then that breaching
party must relinquish and transfer
all of its rights with respect to the
drug product to the other party to
allow the non-breaching party to
continue the commercialization of
the drug product post-termination
Whether the necessary rights are
assigned or licensed whether the
terminated party should receive a
royalty for the transfer or license of
those rights and what if any pre-
existing IP is licensed to enable the
non-breaching party to continue
commercializing the drug product
are all key factors for negotiation
The development contract should
also address other types of termi-
nation such as termination for
insolvency and termination with-
out cause (ie if one party decides
it no longer wants to commercial-
ize the drug product) In each case
the effect of termination on the IP
rights should be carefully analyzed
and a competent IP counsel should
carefully draft post-termination
assignments and licenses
conclusion
While IP lawyers are not equipped
with crystal balls they can be
extremely helpful in analyzing par-
ticular development commercializa-
tion and post-termination scenarios
all of which affect IP in a drug devel-
opment arrangement Contractual
provisions related to IP must be
carefully drafted to align with the
strategic business objectives of any
relationship and particularly one
whose purpose is the development
and commercialization of intellec-
tual property Without a clear con-
tract each collaborator is at risk of
losing important rights bp
Ad Index
AJINOMOTO ALTHEA 21
AVID BIOSERVICES INC 15
CYTOVANCE BIOLOGICS 27
EMERGENT BIOSOLUTIONS 13
EUROFINS LANCASTER LABORATORIES 7
SAFC BIOSCIENCES SIGMA ALDRICH 17
THERMO FISHER SCIENTIFIC 23
TOSOH BIOSCIENCE 11
WATERS CORP 3
Company Page
![Page 21: OUOURT NG I C RESOURCESfiles.pharmtech.com/alfresco_images/pharma/2019/03/08/... · 2019-07-22 · VIDEO INTERVIEW Biologics Development and Manufacturing Trends: Part I ... Media](https://reader034.vdocuments.us/reader034/viewer/2022050113/5f4aca886c0d6724390eb040/html5/thumbnails/21.jpg)
WITH ALTHEA YOU HAVE THE POWER TO MAKE
You have the power to make a difference To make new therapeutics that improve quality of life and inspire a healthier world To do this you need a manufacturing partner who embraces your every challenge as its own who shares your unwavering tenacity and dedication from clinical studies through commercial success Thats The Power To Make
PLAY VIDEO
CONTRACT
MANUFACTURING
Q Development
Drug Substance
lj Drug Product
(D Al TH EA I THE POWER TO MAK A MEMBER OF THE AJINOMOTO GROUP
22 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources FillFinish
bull More f i l l f i n i sh fac i l i t ie s
o p e r a t i n g i n d e v e lo p i n g
regions
bull C o m p u t e r - b a s e d v i s u a l
i n s p e c t i o n a r t i f i c i a l
intelligence
bull Use of complex administration
systems
single-use equipment in fillfinish operAtionsT h e a d o p t i o n o f d i s p o s -
ab le e qu ipme nt i n f i l l f i n -
i s h o p e r a t i o n s e l i m i n a t e s
cross-contamination risks and
adds flexibility in process scale
While regulatory rest r ic t ions
may be increased by the adop-
tion of such equipment single-
use appl icat ions a lso enable
contract manufactur ing orga-
nizat ions (CMOs) to increase
fac i l i t y ut i l i z at ion t h rough
multi-product strategies which
can decrease their cost of goods
Experts in the f ield discussed
these trends
Peter Pekos CEO and president
of Dalton Pharma Services a fill
finish CMO says ldquoFor a CMO
disposables can be attractive hellip
For example a disposable isola-
tor can be packed and stored pre-
sterilized for use when needed
a f ixed isolator requires f ixed
space at all times Disposables
also allow a CMO to handle proj-
ects using specific systems for
non-typical project needs such
as disposable isolators without
going to the expense of buying
permanent isolator infrastruc-
ture Disposables do not obviate
the need for technical expertise
hellip so the need for a CMO isnrsquot
really reduced In fact CMOs
with expertise in single-use sys-
tems hellip can make them more
attractiverdquo
Mar t ina Fe r neman cor po -
rate development manager at
Recipharm bel ieves that the
adoption of single-usedispos-
able equipment is now impacting
f i l l and f inish ldquoIn mult ipur-
pose sites the cleaning proce-
dures will become more crucial
to avoid cross contamination
Single-use equipment [also] has
the advantage of shorter lead
t imes and lower procurement
costs Since no cleaning proce-
dure has to be established and
aseptic connections are easier to
be built-up the use of single-
use equipment is not only faster
but also safer than conventional
equipmentrdquo
AutomAtion in full isolAtor unitsW hi le s ing le -use equ ipment
adoption may be one of the hot-
test f i l lf inish trend automa-
tion technologies may actually
be experiencing more rapid rates
of implementation among bio-
manufacturers Indeed sepa-
rate results from BioPlanrsquos 12th
annual study suggest that the
industry wi l l be as l ikely to
implement automation technolo-
gies as they will use single-use
f i l l-f inish devices dur ing the
next 24 months
The removal of human factors
is a key to improving product
quality Isolators and automa-
tion are therefore key drivers
as facilities seek to improve their
i n f r a s t r u c t u r e I n nov a t io n
around equipment and facilities
able to handle multiple products
is going to continue Flexibility
is key as the reduced flexibility
of isolators (and higher cost) in
relation to traditional restricted
access barrier (RAB) systems may
deter some CMOs from adopt-
ing isolators The jury is st i l l
out because the decision fac-
tors between RAB and isolators
are complex and this tends to be
a high-cost decision often left
to the larger f illf inish CMOs
ldquoCMOs will adopt isolator tech-
nologies in their processes to
meet industry needs and reduce
r isk In some cases this wil l
also include disposable isolators
which can offer the benefits of
fixed isolators but add a degree
of f lexibil ity to the manufac-
turerrdquo Pekos notes
According to Ferneman adopt-
ing automat ion in ful l isola-
tor units to reduce the need for
operators is a trend seen in the
CMO market ldquoUse of barr ier
technology (RABS or isolators)
should ensure optimal protec-
t ion of ster i le areas Isolators
bear a better potential to prevent
biocontamination Since the iso-
lator is a closed system a lower
air quality than in RABS systems
can be usedrdquo For freeze-dried
products the RABS system is a
better choice because loading
has to be performed in class AB
surrounding
Fig
ur
e 1
is
co
ur
te
sy
oF
th
e a
ut
ho
r
Figure 1 selected bioprocessing fllfnish trends in 2015
Single-usedisposable equipment
adoption55
36
35Facilities becoming more multi-
product-use oriented
Automation in full isolator units
reduce need for operators
More compounds More accuratelyFaster than ever
Quantitation transformed
Todayrsquos range of possible therapeutic agents from small molecules to peptides to antibodies and
ADCrsquos makes quantitative bioanalysis a challenge Quantify potential therapeutics faster and more
accurately with our new portfolio of LC-MS instruments sample prep solutions and software HRAM
solutions using Thermo Scienti ctrade Orbitraptrade MS enables selectivity for complex molecules while
triple quadrupole MS delivers SRM sensitivity and speed to detect targeted compounds more quickly
Meet todayrsquos challenges with us and together wersquoll transform quantitative bioanalysis
Thermo Scienti ctrade Orbitrap Fusiontrade MSUnprecedented depth of analysis and
throughput for biological discovery
Thermo Scienti ctrade TSQ Quantivatrade MSLeading SRM sensitivity and speed
in a triple quadrupole MSMS
Thermo Scienti ctrade Q Exactivetrade MSScreen and quantify known and unknown targets with HRAM Orbitrap technology
copy 2
014
Ther
mo
Fish
er S
cien
tifi c
Inc
All
right
s re
serv
ed A
ll tr
adem
arks
are
th
e pr
oper
ty o
f The
rmo
Fish
er S
cien
tifi c
and
its
subs
idia
ries
bull Discover more at thermoscienti ccomquan-transformed
24 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources FillFinish
Cmos stAying
AheAd of the Curve
In the whitepaper on in-house
fillfinish operations for recom-
binant therapeutics (2) BioPlan
found relatively low average in-
house capacity utilization rates
for lyophilization (55) pre-filled
devices (58) and vialing (70)
This finding suggests that for fill
finish CMOs the real value isnrsquot
necessarily in providing additional
flexible capacity but rather in posi-
tioning themselves as providing
highly sophisticated and novel
technologies and expertise in fill
finish services Indeed CMOs are
expected to have state-of-the-art
equipment As Pekos notes ldquoCMOs
who implement flexible and inno-
vative technologies to make man-
ufacturing or development more
efficient faster compliant or more
economical all serve to make them
more attractive to customersrdquo
For CMOs that make use of
innovative fillfinish technologies
there appears to be a good deal
of demand Results from BioPlanrsquos
annual studies indicate that fill
finish services are among the most
widely and heavily outsourced
biomanufacturing activities today
and are also among the activities
that biomanufacturers are most
likely to outsource at significantly
higher levels in the future
Biomanufacturers and CMOs are
actively looking to their fillfin-
ish equipment suppliers and are
beginning to demand additional
new technologies innovation and
product development In 2014 for
example when the top areas that
biomanufacturers wanted their
suppliers to focus their develop-
ment efforts on were measured
fillfinish services topped the list
cited by 23 of biomanufacturers
Not only did that figure represent
a substantial increase from years
past (13 in 2011) but it was also
ahead of other services including
upstream and downstream process
development services
Fillfinish will continue
to be an area of
growth for CMOs
There are a number of areas in
which suppliers can add value to
fillfinish innovation according
to industry experts Jim Agalloco
president of Agalloco amp Associates
in Belle Mead NJ says ldquovendors of
equipment and components to fill
finish must continue their roles as
technology leaders Innovation in
this market has always been sup-
plier driven because the operating
firms do not have the necessary
expertise Collaboration between
equipment manufacturers and
component suppliers is essential
for implementation of new con-
tainer systems single-use dispos-
ables and other advancesrdquo
Ronald Malone senior principal
scientist at Novartis Vaccines says
ldquoBlow-fill-seal containerclosure
systems are beneficial for small-
volume parenterals However over-
all cost may still be higher per unit
than traditional vialstopper fill-
ing Vaccines and biologicals can
benefit from single-dose disposable
systems that drive down the cost
of the containerclosure system
This will assist the global supply to
developing world countries where
these products are truly neededrdquo
W B W i e d e r s e i m o f
PharmaBioSource in Wayne PA
states ldquoWe see smaller higher
technical facilities inclusive of dis-
posables (isolators and not RABS)
and advanced aseptic work cell
technology as the wave of the
futurerdquo
WhAt does the future hold
BioPlanrsquos survey data and indus-
try interviews indicate that fill
f inish will continue to be an
area of growth for CMOs that
maintain the required technical
quality and regulatory expertise
in this segment Experts have
taken note of CMOsrsquo introduc-
tion of smaller filling machines
for syringes or vials a trend that
may be in response to the indus-
try-wide move towards smaller-
scale manufactur ing projects
This shift may be accelerated by
the advent of biosimilars which
should provide an increasing
number of projects for fillfin-
ish CMOs although likely on a
smaller scale This increase in
projects could lead to potential
mergers and acquisitions with
some experts noting that fillfin-
ish CMOs are already engaging
in this trend toward larger capac-
ity and global operations
Indeed within the past 18
months a number of acquisi-
tions have occurred including
Pfizerrsquos acquisitions of Hospira
a nd In noPha r ma Pat heonrsquos
mergers in the contract services
space IDT Biolog ika invest-
ments Vet ter invest ing USD
$100 million to upgrade fill-fin-
ish facilities in the United States
a nd Ger ma ny a nd Ba xte r rsquos
investment in German facilities
and numerous others (3)
For CMOs to stay ahead of the
curve they will likely need to
continue to adopt disposables
technologies and advance their
automation in full isolators Ray
Cardin of PharMax Consulting
says ldquoIncreased use of dispos-
able pre-sterilized f illing tech-
nologies [are future trends] The
combination of these pre-ster-
ilized units with the coming of
age of ster i le connectors that
provide high sterility assurance
wwwbiopharminternationalcom June 2015 BioPharm International eBook 25
Outsourcing Resources FillFinish
Biologics Development and Manufacturing Trends Part II
Eric Langer Managing Partner BioPlan Associates talks about the results from BioPlan AssociatesOtilde 12th Annual Report and Survey of Biopharmaceutical Manufacturing Capacity and Production Langer discusses what respondents indicated as the number one trend in biologics manufacturing improving efficiencies and the biosimilars market
in less clean environments is
changing the way aseptic pro-
cesses are designedrdquo
Gordon Leichter PhD Eastern
r e g io n a l s a l e s m a n a ge r a t
Belimed in Charleston SC states
ldquoAutomat ion in fu l l i solators
wil l el iminate operator inter-
vention and laser-sealed vials
Automation will become more
integral to building automation
and enterprise systemsrdquo
Douglas Stockdale vice-presi-
dent CMCTechnical Operations
Hi l lhurst Biopharmaceut ica ls
Los Angeles CA says ldquoIndustry
will continue pushing the PAT
[process analytical technology]
envelope to f ind a lternat ive
methods to improve in-process
methodologies and processesrdquo
Fe r ne ma n add s ldquoCu r r e nt
trends in fillfinish innovation
will probably focus the market
authorization holders on a few
strategic products resulting in
outsourcing of a bigger share of
products overallrdquo
ConClusion
Until recently the handling of
ster i le l iquids in the pharma-
ceutical industry has relied on
relatively consistent techniques
during the past 100 years with
relatively slow changes in tech-
nologies and regulations result-
ing in incremental improvements
in safety efficiency and prod-
uct quality During the past 20
years however costly biologics
have taken a prominent indus-
try role The value of these drugs
can often be measured in tens of
thousands per dose This has put
greater pressure on these down-
stream fillfinish operations to
ensure quality safety and cost-
efficiency are not compromised
at this crucial late stage in manu-
facturing Trends in fillfinish for
recombinant therapeutics include
the increased use of isolator
technologies more high-speed
operations and other innovative
approaches including single-use
processing As a result of industry
research BioPlan expects more
outsourcing of fillfinish opera-
tions in coming years
referenCes 1 BioPlan Associates 12th Annual
Report and Survey of Biopharmaceutical
Manufacturing Capacity and Production
(Rockville MD April 2015) www
bioplanassociatescom
2 BioPlan Associates Trends in Aseptic
Bioprocessing Capacity for the Fill and
Finish of Recombinant Biologics An
Analysis of US and European In-house
Capacity and Capacity Utilization (BioPlan
Associates December 2014)
3 Information derived from BioPlan
Associatesrsquo BioFacilities Newsletters Bp
26 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Cell Therapy
Taking a ldquoDevelopment-by-Designrdquo
Approach to Cell Therapies
Whether outsourcing or developing cell therapies in-house success demands a focus on quality cost of goods
and sustainability from the start
Agnes shAnley
Cell therapies both autologous and allo-
geneic have come a long way in just a
few years Countries around the world
most recently Japan have passed regula-
tions designed to speed development of
these treatments which are now a big and growing
global business
In 2013 according to the Pharmaceutical Research
and Manufacturers Association 69 cell therapies six
of them autologous or patient-specific treatments
were in clinical trials or being reviewed in the United
States alone 15 of them in Phase III trials (1)
The road is littered with failures however often
in clinical stages This has been traced to problems
with manufacturing and failure to understand pro-
cess requirements earlier in the development process
Table I outlines manufacturing issues
As a growing number of Big Pharma companies
explore the potential for immune regenerative and
other cell therapies equipment manufacturers includ-
Agnes shAnley is senior editor of BioPharm International
SC
IEP
RO
GE
tt
y Im
aG
ES
wwwcytovancecomResponsive Reliable Resourceful
Your partner in biopharmaceutical contract manufacturing of therapeutic proteins and antibodies from mammalian cell culture and microbial fermentation
28 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Cell Therapy
ing Pall Corp EMD Millipore
and GE Biosystems have set up
centers of excellence to focus on
developing equipment for this
new market Engineering compa-
nies such as Invetech and Instrom
are developing equipment specific
to this niche
More CDMos are entering
Cell therapy Market niChe
Demand for spec ia l i zed ce l l
t he rapy ma nu fac t u r ing a nd
development serv ices is a lso
growing and has attracted Lonza
Bioservices Cognate BioServices
WuXi AppTech and Roslin Cells
among others
NeoStem is fol low ing t wo
paths pursuing its own cel l
therapy pipel ine and explor-
ing contract services through
its contract development and
manufac t u r ing organ i zat ion
(CDMO) subsidiary Progenitor
Cell Therapy (PCT) With bases
in Irvine and Mountain View CA
and Allendale NJ PCT is cur-
rently working with Intrexon and
Fibrocell on connective tissue
treatments and with the United
K ingdomrsquos Adapt immune on
oncology treatments
A new CEO David Mazzo with
a doctorate in analytical chemis-
try and experience running both
private and public international
biopharma companies assumed
NeoStemrsquos leadership in January
He sees no conflict between grow-
ing a pipeline and a contract man-
ufacturing business
ldquoWe are not trying to be two
di f ferent companies and we
do not see the two competing
with each otherrdquo says Mazzo
in an interview with BioPharm
Inte rnat ionalrsquos s i ster publ ica-
tion Pharmaceutical Technology
during his second week on the
job ldquoInstead there is a symbi-
otic relationship between themrdquo
As he sees it the companyrsquos
track record in developing prod-
ucts should attract more spon-
sors ldquoProblems in development
usually occur at the interfaces
Our unique experience of having
lsquodone that beforersquo should be help-
fulrdquo he says
In January PCT entered a
partnership with Invetech an
equipment design firm based in
Australia with offices in San Diego
to develop automated equipment
for cell therapy manufacturing Fig
ur
e 1
is
co
ur
te
sy
oF
in
ve
te
ch
Figure 1 Part of an automated solution being developed by neostem and invetech Automating processes is key to reducing costs
wwwbiopharminternationalcom June 2015 BioPharm International eBook 29
Outsourcing Resources Cell Therapy
The two companies have already
been working together for a year
now honing the design and speci-
fications for the instrumentation
says NeoStemrsquos Chief Scientific
Officer (CSO) Robert Preti The
equipment will tackle cell therapyrsquos
most challenging side autologous
treatments where the manufactur-
ing lot is the patient dose adminis-
tered at the patientrsquos bedside
As Preti notes there really isnrsquot
much available today in the way
of automated equipment for cell
therapy especially on the autolo-
gous side The equipment will sep-
arate and wash cells among other
functions
labor-intensive
proCesses aDD Cost
So far Preti says the company
is evaluating the evolving equip-
ment in NeoStemrsquos own manu-
facturing efforts ldquoOne of the
largest commercial bottlenecks
is the heavy labor required by
processes especially for patient-
specific uses where one batch is
one patientrdquo
The cost of goods i s ver y
high Preti says ldquoSuccess long-
term will require a whole new
approach to development The
goal is to provide high qual-
ity and sustainabilityrdquo he says
Removing manual operat ions
and human error from the pro-
cess will be crucial
Invetech has been work ing
on cell therapy process scale-up
automation for more than 10
years and has successfully com-
pleted projects in North America
Europe and Asia for companies
that include Argos Therapeutics
Aa s t rom CCR M Hu mac y te
Innovacell Janssen kSep Systems
MolMed Organovo and ViaCyte
accord ing to R ichard Grant
global VP of the companyrsquos bio-
pharma operations who has been
with the company for more than
14 years
ldquoThe goal is to develop a mix
of equipment and manufactur-
ing st rateg ies that maximize
quality scalability and sustain-
ability with an eye toward cost-
effect iveness and commercial
viabilityrdquo Grant says Invetechrsquos
solutions typically tailor a mix of
OEM and customized equipment
to the clientrsquos processes The com-
pany recently commercialized
equipment used to manufacture
Janssenrsquos macular degeneration
treatment
Costs of current manufactur-
ing processes for both autologous
and allogeneic therapies are dif-
ficult to peg Last year experts
at University College London
attempted to pinpoint the cost and
overall economics of allogeneic
cell therapy using single-use tech-
nologies (2)
What is clear for both alloge-
neic and autologous systems is
that cell therapy development
Table I Manufacturing scenarios for cell therapies
Attributes Off-the-shelf therapiesPatient-specifc
therapies
Source material Always allogeneic Autologous or matched allogeneic
Batch size Many patients One patient
Business model Similar to pharmabiopharma New
Scaling Scale up (Increased lot size) Scale out (Increased number of lots)
Comparability vs scale Higher concern Lower concern
Manufacturing design drivers
Mission critical success + +++
Optimized process yield +++ +
Dimensional efficiency ++ +-
Integration +- ++
Automation + ++
source invetech
Table II Measuring comparability risk
Risk level Example Timing
None Automated sterility test Before biologics license application
Low Change in process unit op and cell journey is the same
Before 50 accrual in pivotal trials
Medium Change in process unit op and cell journey is similar
Before initiation of pivotal clinical trials
High Change in process unit op and the cell journey is matched
Some Phase II clinical data
source invetech
30 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Cell Therapy
and manufacturing costs are cur-
rently prohibitive ldquoThe starting
points can vary dramaticallyrdquo
Grant says He recalls one cus-
tomer whose autologous process
ran to $80000 per patient in early
stage clinical trials Automation
he says could reduce costs by
40ndash90 depending on the ther-
apy involved
DevelopMent by Design
But before one can automate any
process one must understand it
NeoStem and PCT like a growing
number of companies are taking
the principle of quality by design
(QbD) to heart in their work
Mazzo arguably one of few
life-science company CEOs to
even articulate the QbD concept
explains that the company has
gone a step further and broadened
the International Conference on
Harmonization guidances adopted
by FDA into ldquodevelopment by
designrdquo (DbD)
ldquoWe say first consider the end-
point then take process as is and
understand its unit operations
Develop inputs and outputs and
discrete steps and define the pro-
cess in a way that promotes under-
standingrdquo he says
ldquoThis is challenging given prod-
uct complexity but there is a need
to understand the mechanism of
action very well so you put each
process in this overall envelope
of DbD and consider the cost of
goods scalability and sustainabil-
ityrdquo Preti adds ldquoYou consider the
process from the end only this
time each batch is an individual
patientrdquo
The critical part is defining and
measuring process needs he says
ldquoProduct definition is very impor-
tant particularly the quality target
product profilerdquo explains Brian
Hampson VP of manufacturing
development and engineering at
PCT in an Oct 22 2014 webcast
for the International Society for
Cell Therapy (3)
have the enD in MinD
Such t h ings a s for mulat ion
issues dosage potency impu-
rities residuals and microbial
assurance need to be thought out
clearly from the start Hampson
says as well as indications for
use geographic market projec-
tions cost-of-goods targets and
IP issues
The profile needs to be a liv-
ing document that changes as the
product takes shape Hampson
says There is a tendency for peo-
ple in the industry to ignore the
product profile until they have
all the answers says Hampson
ldquoInstead it needs to be developed
really early even when you donrsquot
have all or even many of the
answers hellip you can leave them
as blanks and continue to review
add to and updaterdquo
The result is not only a tool for
better understanding the prod-
uct process and mechanism of
action but a communication tool
for stakeholders
When to start DbD for cell ther-
apies ldquoThe temptation is to begin
later in the game when you need
reasonable COGS and you need
to be sure of sustainable manu-
facturingrdquo says Hampson ldquoThe
key thing is comparability and
anticipating its implications early
in the clinical program It needs
to be flexible at the early stagesrdquo
Hampson says ldquoBut as you near
Phase III you need to lock in your
equipment evolves
In the bioreactor area there is great interest in moving from 2-D to 3-D processing to enable the processing of the cell volumes required something that companies such as Israelrsquos Pluristem have been doing for some time
Equipment designer Instrom is partnering with companies including BRTI Life Sciences to focus on 3-D cell matrix technologies developed by Dr John Brekke EMD Millipore has been partnering with PharmaCell BV to use its Mobius bioreactor platform to expand and harvest HepRG cells GE Sciences is also evaluating Wave and other systems and set up a center of excellence in Wales recently
In other equipment areas Pall Corp has been partnering with CMDG LLC on cord blood processing technology Following are some of the equipment manufacturers and systems applied in cell therapy development and manufacturing
bull Beckman Coulter bull Corning Cell Stacks and Cell Cube
bull EMD Millipore bull GE Biosciences
bull Thermo Scientificrsquos Nunc Cell Factories bull Pall Corp
wwwbiopharminternationalcom June 2015 BioPharm International eBook 31
Outsourcing Resources Cell Therapy
processrdquo Table II summarizes issues
and points where changes will be
easier
Thus Hampson suggests that
companies whether work ing
with CDMOs or in house think
through such issues as cost of
goods scale and sustainabil-
ity much earlier than they typi-
cally do today ldquoYou donrsquot need to
spend money on these issues but
you do need to think about themrdquo
Hampson says ldquoQuality must be
a key issue even at Phase II trials
and early action pays off laterrdquo
In addition he suggests that
companies th ink about the
e nt i r e p r o c e s s c o mp r e he n -
sively ldquoThere is often a tendency
to focus on the core processing
stepsrdquo Hampson says ldquoBut you
really need to think about every-
thing from collection of mate-
rial through to administration
of product to the patient and all
steps in betweenrdquo
For ce l l therapies d ispos -
able equipment and closed pro-
cesses can be an effective way to
reduce costs and improve quality
and compliance ldquoThey can allow
you to isolate different processes
so that they can share a Class
100000 cleanroom environmentrdquo
Hampson says
ldquoInvesting in automated informa-
tion management can also pay offrdquo
he says ldquowhere an electronic batch
record system that is fully validated
can enable release-by-exception
reducing error documentation
time and overall quality assurance
costsrdquo Hampson says
In addition he notes it is
important to look at costs compre-
hensively an increase in one cost
can for example reduce overhead
improve process sustainability and
cost of goods Table III outlines the
issues
regulations evolve
Cell therapy is still a new area
for regulators and as Preti says
some guidelines are clear and oth-
ers arenrsquot ldquoDevelopment by design
is needed throughout the pro-
cess but the piece we still struggle
with the most is mode of action
(MOA) and product characteriza-
tion Regulatory agencies under-
stand that it is difficult to pinpoint
MOArdquo
Preti emphasizes the importance
of working with regulators ldquoYou
can be in a position to inform and
influence regulations as products
are developedrdquo he says
For any company moving into
this brave new world top-level ques-
tions are needed Preti says empha-
sizing the following ldquoDo you have
an understanding of scale Can you
scale up from very small Can you
characterize the process and control
it for reliability and qualityrdquo
In the stem cell area in particu-
lar this is crucial Preti said since
the product relies heavily on the
process ldquoManufacturing can be
thought of as patient administra-
tion It cannot be separated in
the same way that it can for tra-
ditional medicinesrdquo For contract
suppliers he adds demonstrated
success will be important and
sponsors should consider whether
a prospective partner will be able
to stay with them for the long run
referenCes 1 P Hourd et al Regulatory Challenges
for the Manufacture and Scale-
Out of Autologous Cell Therapies
Massachusetts General Hospital
(Cambridge MA 2013)
2 S Farid et al Biotechnol Bioeng
111(1) 69-83 (January 2014)
3 R Grant Building Deliverable Cell
Therapeutics A Methodical Approach
to Manufacturing Development
(Webinar Oct 22 2014) bp
source invetech
Justifcation driversChange in cost
doseDevelopment
estimate
Unit Op Ref
Change decription
Comparability risk
Quality COGs Scale Sustainability LaborMaterials outplant
Cost Time
P-2 Process change 1 Medium X X darr $ $$$ TT
P-3 Process change 2 High X X X darr $$$ $$$$ TTT
P-4 Process change 3 Low X X darr $$ $$ TTT
P-2 Process change 4 Low X $$ T
QC-4 In-house QC test None X TT
QA-1Electronic Batch
RecordNone X X X
darr $$$$
TTTT
Table III Process changes timing and comparability risks cogs is cost of goods Qc is quality control
32 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Intellectual Property
Protecting Intellectual Property
in Engagements with CMOs
Important IP contractual provisions should be included when working with CMOs
Jennifer L CoLLins
Biotechnology and pharmaceutical companies
often engage contract CMOs to assist with
the development of their drugs This type
of arrangement naturally involves the devel-
opment of intellectual property (IP) so it is
important for both the CMO and the sponsor to iden-
tify pre-existing intellectual property and also define
how rights to new IP will be allocated protected and
enforced by and between the companies
If the arrangement with the CMO is a traditional fee-
for-service arrangement where the company pays the
CMO service fees to perform development work on its
behalf then generally all new IP (other than improve-
ments to the CMOrsquos manufacturing technology) will be
owned by the biotechnology or pharmaceutical com-
pany that engaged the CMO On the other hand if the
arrangement between the CMO and the biotechnology
or pharmaceutical company is more of a collaborative
arrangement where both parties share the costs of devel-
opment as well as any profits from the commercializa-
tion then IP concerns become much more complicated
In that case in addition to describing which party will
Jennifer L CoLLins is a technology and licensing attorney with Morningstar Law Group jcollinsmorningstarlawgroupcom
Fa
na
tic S
tud
ioG
ett
y Im
ag
es
wwwbiopharminternationalcom June 2015 BioPharm International eBook 33
Outsourcing Resources Intellectual Property
own the new IP the contract should
sort out which party will be respon-
sible for obtaining and maintaining
patents on the new IP controlling
litigation against infringers and
defending the IP against challenges
In addition the parties should agree
upfront on how the IP may be used
by each party following various ter-
mination events so that the parties
are not left fighting about such mat-
ters at a time when they may not be
inclined to agree to anything
In both arrangements without
specific contractual provisions to
define and protect the new IP a
biotechnology company or phar-
maceutical company that uses a
CMO for development is at risk of
losing control of and possibly own-
ership of important improvements
to its drugs This article discusses
IP contractual provisions that
should be included in each type of
arrangement
Fee-For-service
development work
Traditionally CMOs perform fee-for-
service development work where
a biotechnology or pharmaceutical
company engages the CMO to per-
form this work for a fixed fee In this
type of arrangement the CMO is a
service provider and typically takes
no ownership interest in the drug or
product that is being developed or
in improvements to an existing drug
or product that is being tested or
developed The contract governing
the relationship nevertheless must
be clear about the IP rights that are
owned and licensed by each party
If the contract does not provide
for proper assignments of IP to the
biotechnology or pharmaceutical
company then it is likely that the
CMO will own any improvements
or other inventions that it develops
in the performance of the develop-
ment services even if that is not the
intent of the parties
Without signed written contracts
that state otherwise under United
States patent law the inventor of
a patentable invention or improve-
ment will own the invention or
improvement even if the inventor
is engaged to develop the invention
or the improvement for a customer
or other third party To ensure
that the biotechnology company or
pharmaceutical company obtains
all the patent and other IP rights
in developments inventions and
improvements created in the per-
formance of services by the CMO
the governing contract between the
biotechnology company or phar-
maceutical company and the CMO
must include written present assign-
ments of those IP rights from the
CMO to the company Indeed based
on recent cases it is crucial that the
assignment clause in the contract
be a ldquopresentrdquo assignment mean-
ing that it must state specifically
that the CMO ldquohereby assignshelliprdquo
rather than a clause stating that the
CMO ldquoagrees to assignrdquo rights in the
future Otherwise the contract will
be interpreted as a promise to assign
rights in the future and the bio
pharmaceutical company will have
to go back to the CMO at some later
point in time for a separate writ-
ten assignment of rights to obtain
all patent and other IP rights in the
developments
While it sounds logical and
straightforward that the CMO
would assign all inventions created
in the development work to its cus-
tomer it is not always that simple
in practice What if the CMO devel-
ops an improvement to its manu-
facturing process in the course of
the development work Most CMOs
will want to reserve ownership of
any improvements to the CMOrsquos
existing IP and confidential infor-
mation This position is not unrea-
sonable as long as the customer
ultimately has the rights it needs in
all new inventions including those
owned by the CMO to take the drug
forward through further develop-
ment and commercialization One
must sort out IP allocation by sub-
ject matter To achieve this allo-
cation the development contract
typically will state that each party
retains ownership of all IP that it
owns as of the date of the contract
(all pre-existing intellectual prop-
erty) It will also state that the cus-
tomer owns its proprietary drug
and all improvements to the drug
or the customerrsquos confidential infor-
mation developed by either or both
parties The development contract
also may state more generally that
the customer owns all inventions
improvements and IP rights related
to the customerrsquos drug With respect
to the CMO and its IP the develop-
ment contract may state that the
CMO owns all improvements to the
CMOrsquos manufacturing process and
to its other pre-existing intellectual
property Again this reservation is
not unreasonable The customer
however should determine whether
it requires access to those improve-
ments or inventions to complete the
development and commercialization
of its drug If such access is necessary
the customer should either negotiate
a license (which may be royalty-free
or royalty-based depending on the
circumstances) to use such improve-
ments or inventions to develop and
commercialize the drug or the cus-
tomer should negotiate the terms
under which the CMO will continue
to use the improvements or inven-
tions to perform development work
andor manufacture the drug for the
customer
In the fee-for-service arrange-
ment the assignment and licensing
of IP rights in new inventions and
improvements is the key intellectual
property issue Intellectual property
considerations become much more
complicated when the biotechnol-
34 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Intellectual Property
ogy or pharmaceutical company
partners with a CMO in the devel-
opment of a new drug or product
where the parties share development
costs and profits from commercial-
ization of the drug or product
cmo as collaborator
Although not as common as the
fee-for-service arrangement a CMO
may partner with a biotechnology
or pharmaceutical company in the
development and commercialization
of a drug or product Generally both
parties are bringing pre-existing IP
to the collaboration such as a drug
from a biopharmaceutical com-
pany and proprietary drug delivery
technology from the CMO In this
scenario the CMO is taking a long-
term interest and often a part-own-
ership interest in the success of the
drug product
Instead of getting paid an hourly
rate or fixed fee for development
work on the drug product the CMO
may share the cost of development
work with the biotechnology or
pharmaceutical partner in exchange
for a share of the profits when the
drug or product is commercialized
Other costs involved in the develop-
ment and commercialization of the
drug or product that may be shared
include the cost of patent prosecu-
tion and the cost of patent litigation
if the drug product is challenged or
if it is misappropriated or infringed
To secure its interest in the profits
from commercialization of the drug
product the CMO may want to take
an ownership interest in the intel-
lectual property rights in the drug
product All of these issues must be
carefully addressed in the develop-
ment contract to avoid both finan-
cial and IP disputes
As with the fee-for-serv ice
arrangement the parties must
allocate ownership of intellectual
property rights pertaining to the
drug product to be commercialized
These rights include both pre-exist-
ing IP rights and new inventions
and improvements developed in
the course of the development con-
tract As with the fee-for-service
arrangement the parties typically
will retain rights to their respec-
tive pre-existing IP Intellectual
property rights to new inventions
and improvements however may
be shared by giving each party a
co-ownership interest in the intel-
lectual property Alternatively such
rights may be allocated by inventor-
ship with each party taking owner-
ship of developments that it invents
and with the parties jointly own-
ing jointly developed inventions
As another alternative the IP rights
may be allocated by subject matter
as in the fee-for-service arrangement
with each party owning improve-
ments and inventions related to its
pre-existing IP regardless of which
party invents those improvements
and inventions
Depending on how the pat-
ent applications are drafted the
IP rights may be ldquosliced and dicedrdquo
more finely One party for example
could own patent rights for a drug
product for one indication while the
other party owns patent rights for
the same drug product for another
indication Decisions about how
to allocate the IP rights should be
made in consultation with intel-
lectual property counsel and must
take into account the manner in
which the drug will be commercial-
ized If one party for example is
to commercialize the product in
North America and Europe and
the other party is to commercialize
the product in the rest of the world
then either the patent ownership
should be allocated by territory or
the development contract should
include exclusive cross-licenses of
each partyrsquos rights in all the intel-
lectual property necessary to com-
mercialize the product with the first
party having an exclusive license to
commercialize the product in North
America and Europe and the second
party having an exclusive license to
commercialize the product in the
rest of the world
If the parties are going to share
ownership of the IP related to the
drug product then the develop-
ment contract also should specify
which party is responsible for pros-
ecuting and maintaining patents
on the drug product Regardless of
which party is responsible for patent
prosecution and maintenance the
other party should be consulted and
involved in key decisions regard-
ing patent prosecution and main-
tenance Unless there are multiple
patents for different indications that
will be commercialized exclusively
by one party and unless each party
has exclusive rights to commercial-
ize the drug product in particular
geographic areas it generally makes
sense for one party to take the pri-
mary responsibility for patent pros-
ecution and maintenance globally
with the other party consulting and
sharing in the cost of the prosecu-
tion and maintenance in accordance
with the profit sharing The party
that is not responsible for prosecu-
tion and maintenance should have
a contractual right to approve patent
counsel and review and approve pat-
ent filings office action responses
and other communications with
patent registries before they are filed
or submitted so that the parties
agree on the proper prosecution and
maintenance strategy
Likewise the development con-
tract should allocate the rights and
responsibilities for asserting and
defending the patents pertaining to
the product in litigation Often these
rights and responsibilities are allo-
cated by territory according to com-
mercialization rights If one party
for example has the exclusive right
to commercialize the drug product
wwwbiopharminternationalcom June 2015 BioPharm International eBook 35
Outsourcing Resources Intellectual Property
in the US then that party would
have the first right and responsibil-
ity to assert the patents on the drug
product against potential infringers
and defend the patents on the drug
product against infringement claims
in the US Likewise if one party has
the exclusive right to commercial-
ize the drug product for a particular
indication then that party would
have the first right and responsibility
to assert or defend the patents per-
taining to the product with respect
to that indication Both scenarios
can present challenges First some
courts will not recognize an exclu-
sive licensee as having standing to
assert a patent That court might
only allow the owner of the patent
(and not the exclusive licensee) to
bring a lawsuit asserting the patent
It is crucial therefore that contrac-
tual provisions relating to patent liti-
gation require the party that owns
the patent to cooperate in any litiga-
tion and to join the suit as a party if
necessary
Another potential problem is that
any litigation that asserts the pat-
ent is likely to draw a counterclaim
that the patent is invalid thus put-
ting the patent itself at risk of invali-
dation While one party might be
threatened by a potential infringer
in a particular market or for a partic-
ular indication and therefore might
want to assert the patent against the
potential infringer the other party
might not want to put the patent at
risk as to other markets and other
indications For these reasons the
contractual provisions pertaining
to patent litigation must be care-
fully drafted in consultation with
intellectual property counsel who
understands standing issues and
the potential areas for dispute The
contractual provisions also should
include dispute resolution provi-
sions for situations when the parties
do not agree on whether a patent
should be asserted
Finally while the parties may
want and expect their relationship
to continue for the full term of the
patents and the development con-
tract the parties must carefully
consider the IP ramifications of an
early termination of the develop-
ment contract and the relationship
particularly if the development con-
tract is terminated for breach If the
parties are sharing in the ownership
commercialization and profits gen-
erated by the drug product devel-
oped by the collaboration then
all of that must be unwound upon
termination The development
contract should be as specific as
possible with respect to the effect of
various types of termination on the
intellectual property and contin-
ued commercialization of the drug
product In particular the parties
may agree that if the development
contract is terminated due to breach
by one party then that breaching
party must relinquish and transfer
all of its rights with respect to the
drug product to the other party to
allow the non-breaching party to
continue the commercialization of
the drug product post-termination
Whether the necessary rights are
assigned or licensed whether the
terminated party should receive a
royalty for the transfer or license of
those rights and what if any pre-
existing IP is licensed to enable the
non-breaching party to continue
commercializing the drug product
are all key factors for negotiation
The development contract should
also address other types of termi-
nation such as termination for
insolvency and termination with-
out cause (ie if one party decides
it no longer wants to commercial-
ize the drug product) In each case
the effect of termination on the IP
rights should be carefully analyzed
and a competent IP counsel should
carefully draft post-termination
assignments and licenses
conclusion
While IP lawyers are not equipped
with crystal balls they can be
extremely helpful in analyzing par-
ticular development commercializa-
tion and post-termination scenarios
all of which affect IP in a drug devel-
opment arrangement Contractual
provisions related to IP must be
carefully drafted to align with the
strategic business objectives of any
relationship and particularly one
whose purpose is the development
and commercialization of intellec-
tual property Without a clear con-
tract each collaborator is at risk of
losing important rights bp
Ad Index
AJINOMOTO ALTHEA 21
AVID BIOSERVICES INC 15
CYTOVANCE BIOLOGICS 27
EMERGENT BIOSOLUTIONS 13
EUROFINS LANCASTER LABORATORIES 7
SAFC BIOSCIENCES SIGMA ALDRICH 17
THERMO FISHER SCIENTIFIC 23
TOSOH BIOSCIENCE 11
WATERS CORP 3
Company Page
![Page 22: OUOURT NG I C RESOURCESfiles.pharmtech.com/alfresco_images/pharma/2019/03/08/... · 2019-07-22 · VIDEO INTERVIEW Biologics Development and Manufacturing Trends: Part I ... Media](https://reader034.vdocuments.us/reader034/viewer/2022050113/5f4aca886c0d6724390eb040/html5/thumbnails/22.jpg)
22 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources FillFinish
bull More f i l l f i n i sh fac i l i t ie s
o p e r a t i n g i n d e v e lo p i n g
regions
bull C o m p u t e r - b a s e d v i s u a l
i n s p e c t i o n a r t i f i c i a l
intelligence
bull Use of complex administration
systems
single-use equipment in fillfinish operAtionsT h e a d o p t i o n o f d i s p o s -
ab le e qu ipme nt i n f i l l f i n -
i s h o p e r a t i o n s e l i m i n a t e s
cross-contamination risks and
adds flexibility in process scale
While regulatory rest r ic t ions
may be increased by the adop-
tion of such equipment single-
use appl icat ions a lso enable
contract manufactur ing orga-
nizat ions (CMOs) to increase
fac i l i t y ut i l i z at ion t h rough
multi-product strategies which
can decrease their cost of goods
Experts in the f ield discussed
these trends
Peter Pekos CEO and president
of Dalton Pharma Services a fill
finish CMO says ldquoFor a CMO
disposables can be attractive hellip
For example a disposable isola-
tor can be packed and stored pre-
sterilized for use when needed
a f ixed isolator requires f ixed
space at all times Disposables
also allow a CMO to handle proj-
ects using specific systems for
non-typical project needs such
as disposable isolators without
going to the expense of buying
permanent isolator infrastruc-
ture Disposables do not obviate
the need for technical expertise
hellip so the need for a CMO isnrsquot
really reduced In fact CMOs
with expertise in single-use sys-
tems hellip can make them more
attractiverdquo
Mar t ina Fe r neman cor po -
rate development manager at
Recipharm bel ieves that the
adoption of single-usedispos-
able equipment is now impacting
f i l l and f inish ldquoIn mult ipur-
pose sites the cleaning proce-
dures will become more crucial
to avoid cross contamination
Single-use equipment [also] has
the advantage of shorter lead
t imes and lower procurement
costs Since no cleaning proce-
dure has to be established and
aseptic connections are easier to
be built-up the use of single-
use equipment is not only faster
but also safer than conventional
equipmentrdquo
AutomAtion in full isolAtor unitsW hi le s ing le -use equ ipment
adoption may be one of the hot-
test f i l lf inish trend automa-
tion technologies may actually
be experiencing more rapid rates
of implementation among bio-
manufacturers Indeed sepa-
rate results from BioPlanrsquos 12th
annual study suggest that the
industry wi l l be as l ikely to
implement automation technolo-
gies as they will use single-use
f i l l-f inish devices dur ing the
next 24 months
The removal of human factors
is a key to improving product
quality Isolators and automa-
tion are therefore key drivers
as facilities seek to improve their
i n f r a s t r u c t u r e I n nov a t io n
around equipment and facilities
able to handle multiple products
is going to continue Flexibility
is key as the reduced flexibility
of isolators (and higher cost) in
relation to traditional restricted
access barrier (RAB) systems may
deter some CMOs from adopt-
ing isolators The jury is st i l l
out because the decision fac-
tors between RAB and isolators
are complex and this tends to be
a high-cost decision often left
to the larger f illf inish CMOs
ldquoCMOs will adopt isolator tech-
nologies in their processes to
meet industry needs and reduce
r isk In some cases this wil l
also include disposable isolators
which can offer the benefits of
fixed isolators but add a degree
of f lexibil ity to the manufac-
turerrdquo Pekos notes
According to Ferneman adopt-
ing automat ion in ful l isola-
tor units to reduce the need for
operators is a trend seen in the
CMO market ldquoUse of barr ier
technology (RABS or isolators)
should ensure optimal protec-
t ion of ster i le areas Isolators
bear a better potential to prevent
biocontamination Since the iso-
lator is a closed system a lower
air quality than in RABS systems
can be usedrdquo For freeze-dried
products the RABS system is a
better choice because loading
has to be performed in class AB
surrounding
Fig
ur
e 1
is
co
ur
te
sy
oF
th
e a
ut
ho
r
Figure 1 selected bioprocessing fllfnish trends in 2015
Single-usedisposable equipment
adoption55
36
35Facilities becoming more multi-
product-use oriented
Automation in full isolator units
reduce need for operators
More compounds More accuratelyFaster than ever
Quantitation transformed
Todayrsquos range of possible therapeutic agents from small molecules to peptides to antibodies and
ADCrsquos makes quantitative bioanalysis a challenge Quantify potential therapeutics faster and more
accurately with our new portfolio of LC-MS instruments sample prep solutions and software HRAM
solutions using Thermo Scienti ctrade Orbitraptrade MS enables selectivity for complex molecules while
triple quadrupole MS delivers SRM sensitivity and speed to detect targeted compounds more quickly
Meet todayrsquos challenges with us and together wersquoll transform quantitative bioanalysis
Thermo Scienti ctrade Orbitrap Fusiontrade MSUnprecedented depth of analysis and
throughput for biological discovery
Thermo Scienti ctrade TSQ Quantivatrade MSLeading SRM sensitivity and speed
in a triple quadrupole MSMS
Thermo Scienti ctrade Q Exactivetrade MSScreen and quantify known and unknown targets with HRAM Orbitrap technology
copy 2
014
Ther
mo
Fish
er S
cien
tifi c
Inc
All
right
s re
serv
ed A
ll tr
adem
arks
are
th
e pr
oper
ty o
f The
rmo
Fish
er S
cien
tifi c
and
its
subs
idia
ries
bull Discover more at thermoscienti ccomquan-transformed
24 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources FillFinish
Cmos stAying
AheAd of the Curve
In the whitepaper on in-house
fillfinish operations for recom-
binant therapeutics (2) BioPlan
found relatively low average in-
house capacity utilization rates
for lyophilization (55) pre-filled
devices (58) and vialing (70)
This finding suggests that for fill
finish CMOs the real value isnrsquot
necessarily in providing additional
flexible capacity but rather in posi-
tioning themselves as providing
highly sophisticated and novel
technologies and expertise in fill
finish services Indeed CMOs are
expected to have state-of-the-art
equipment As Pekos notes ldquoCMOs
who implement flexible and inno-
vative technologies to make man-
ufacturing or development more
efficient faster compliant or more
economical all serve to make them
more attractive to customersrdquo
For CMOs that make use of
innovative fillfinish technologies
there appears to be a good deal
of demand Results from BioPlanrsquos
annual studies indicate that fill
finish services are among the most
widely and heavily outsourced
biomanufacturing activities today
and are also among the activities
that biomanufacturers are most
likely to outsource at significantly
higher levels in the future
Biomanufacturers and CMOs are
actively looking to their fillfin-
ish equipment suppliers and are
beginning to demand additional
new technologies innovation and
product development In 2014 for
example when the top areas that
biomanufacturers wanted their
suppliers to focus their develop-
ment efforts on were measured
fillfinish services topped the list
cited by 23 of biomanufacturers
Not only did that figure represent
a substantial increase from years
past (13 in 2011) but it was also
ahead of other services including
upstream and downstream process
development services
Fillfinish will continue
to be an area of
growth for CMOs
There are a number of areas in
which suppliers can add value to
fillfinish innovation according
to industry experts Jim Agalloco
president of Agalloco amp Associates
in Belle Mead NJ says ldquovendors of
equipment and components to fill
finish must continue their roles as
technology leaders Innovation in
this market has always been sup-
plier driven because the operating
firms do not have the necessary
expertise Collaboration between
equipment manufacturers and
component suppliers is essential
for implementation of new con-
tainer systems single-use dispos-
ables and other advancesrdquo
Ronald Malone senior principal
scientist at Novartis Vaccines says
ldquoBlow-fill-seal containerclosure
systems are beneficial for small-
volume parenterals However over-
all cost may still be higher per unit
than traditional vialstopper fill-
ing Vaccines and biologicals can
benefit from single-dose disposable
systems that drive down the cost
of the containerclosure system
This will assist the global supply to
developing world countries where
these products are truly neededrdquo
W B W i e d e r s e i m o f
PharmaBioSource in Wayne PA
states ldquoWe see smaller higher
technical facilities inclusive of dis-
posables (isolators and not RABS)
and advanced aseptic work cell
technology as the wave of the
futurerdquo
WhAt does the future hold
BioPlanrsquos survey data and indus-
try interviews indicate that fill
f inish will continue to be an
area of growth for CMOs that
maintain the required technical
quality and regulatory expertise
in this segment Experts have
taken note of CMOsrsquo introduc-
tion of smaller filling machines
for syringes or vials a trend that
may be in response to the indus-
try-wide move towards smaller-
scale manufactur ing projects
This shift may be accelerated by
the advent of biosimilars which
should provide an increasing
number of projects for fillfin-
ish CMOs although likely on a
smaller scale This increase in
projects could lead to potential
mergers and acquisitions with
some experts noting that fillfin-
ish CMOs are already engaging
in this trend toward larger capac-
ity and global operations
Indeed within the past 18
months a number of acquisi-
tions have occurred including
Pfizerrsquos acquisitions of Hospira
a nd In noPha r ma Pat heonrsquos
mergers in the contract services
space IDT Biolog ika invest-
ments Vet ter invest ing USD
$100 million to upgrade fill-fin-
ish facilities in the United States
a nd Ger ma ny a nd Ba xte r rsquos
investment in German facilities
and numerous others (3)
For CMOs to stay ahead of the
curve they will likely need to
continue to adopt disposables
technologies and advance their
automation in full isolators Ray
Cardin of PharMax Consulting
says ldquoIncreased use of dispos-
able pre-sterilized f illing tech-
nologies [are future trends] The
combination of these pre-ster-
ilized units with the coming of
age of ster i le connectors that
provide high sterility assurance
wwwbiopharminternationalcom June 2015 BioPharm International eBook 25
Outsourcing Resources FillFinish
Biologics Development and Manufacturing Trends Part II
Eric Langer Managing Partner BioPlan Associates talks about the results from BioPlan AssociatesOtilde 12th Annual Report and Survey of Biopharmaceutical Manufacturing Capacity and Production Langer discusses what respondents indicated as the number one trend in biologics manufacturing improving efficiencies and the biosimilars market
in less clean environments is
changing the way aseptic pro-
cesses are designedrdquo
Gordon Leichter PhD Eastern
r e g io n a l s a l e s m a n a ge r a t
Belimed in Charleston SC states
ldquoAutomat ion in fu l l i solators
wil l el iminate operator inter-
vention and laser-sealed vials
Automation will become more
integral to building automation
and enterprise systemsrdquo
Douglas Stockdale vice-presi-
dent CMCTechnical Operations
Hi l lhurst Biopharmaceut ica ls
Los Angeles CA says ldquoIndustry
will continue pushing the PAT
[process analytical technology]
envelope to f ind a lternat ive
methods to improve in-process
methodologies and processesrdquo
Fe r ne ma n add s ldquoCu r r e nt
trends in fillfinish innovation
will probably focus the market
authorization holders on a few
strategic products resulting in
outsourcing of a bigger share of
products overallrdquo
ConClusion
Until recently the handling of
ster i le l iquids in the pharma-
ceutical industry has relied on
relatively consistent techniques
during the past 100 years with
relatively slow changes in tech-
nologies and regulations result-
ing in incremental improvements
in safety efficiency and prod-
uct quality During the past 20
years however costly biologics
have taken a prominent indus-
try role The value of these drugs
can often be measured in tens of
thousands per dose This has put
greater pressure on these down-
stream fillfinish operations to
ensure quality safety and cost-
efficiency are not compromised
at this crucial late stage in manu-
facturing Trends in fillfinish for
recombinant therapeutics include
the increased use of isolator
technologies more high-speed
operations and other innovative
approaches including single-use
processing As a result of industry
research BioPlan expects more
outsourcing of fillfinish opera-
tions in coming years
referenCes 1 BioPlan Associates 12th Annual
Report and Survey of Biopharmaceutical
Manufacturing Capacity and Production
(Rockville MD April 2015) www
bioplanassociatescom
2 BioPlan Associates Trends in Aseptic
Bioprocessing Capacity for the Fill and
Finish of Recombinant Biologics An
Analysis of US and European In-house
Capacity and Capacity Utilization (BioPlan
Associates December 2014)
3 Information derived from BioPlan
Associatesrsquo BioFacilities Newsletters Bp
26 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Cell Therapy
Taking a ldquoDevelopment-by-Designrdquo
Approach to Cell Therapies
Whether outsourcing or developing cell therapies in-house success demands a focus on quality cost of goods
and sustainability from the start
Agnes shAnley
Cell therapies both autologous and allo-
geneic have come a long way in just a
few years Countries around the world
most recently Japan have passed regula-
tions designed to speed development of
these treatments which are now a big and growing
global business
In 2013 according to the Pharmaceutical Research
and Manufacturers Association 69 cell therapies six
of them autologous or patient-specific treatments
were in clinical trials or being reviewed in the United
States alone 15 of them in Phase III trials (1)
The road is littered with failures however often
in clinical stages This has been traced to problems
with manufacturing and failure to understand pro-
cess requirements earlier in the development process
Table I outlines manufacturing issues
As a growing number of Big Pharma companies
explore the potential for immune regenerative and
other cell therapies equipment manufacturers includ-
Agnes shAnley is senior editor of BioPharm International
SC
IEP
RO
GE
tt
y Im
aG
ES
wwwcytovancecomResponsive Reliable Resourceful
Your partner in biopharmaceutical contract manufacturing of therapeutic proteins and antibodies from mammalian cell culture and microbial fermentation
28 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Cell Therapy
ing Pall Corp EMD Millipore
and GE Biosystems have set up
centers of excellence to focus on
developing equipment for this
new market Engineering compa-
nies such as Invetech and Instrom
are developing equipment specific
to this niche
More CDMos are entering
Cell therapy Market niChe
Demand for spec ia l i zed ce l l
t he rapy ma nu fac t u r ing a nd
development serv ices is a lso
growing and has attracted Lonza
Bioservices Cognate BioServices
WuXi AppTech and Roslin Cells
among others
NeoStem is fol low ing t wo
paths pursuing its own cel l
therapy pipel ine and explor-
ing contract services through
its contract development and
manufac t u r ing organ i zat ion
(CDMO) subsidiary Progenitor
Cell Therapy (PCT) With bases
in Irvine and Mountain View CA
and Allendale NJ PCT is cur-
rently working with Intrexon and
Fibrocell on connective tissue
treatments and with the United
K ingdomrsquos Adapt immune on
oncology treatments
A new CEO David Mazzo with
a doctorate in analytical chemis-
try and experience running both
private and public international
biopharma companies assumed
NeoStemrsquos leadership in January
He sees no conflict between grow-
ing a pipeline and a contract man-
ufacturing business
ldquoWe are not trying to be two
di f ferent companies and we
do not see the two competing
with each otherrdquo says Mazzo
in an interview with BioPharm
Inte rnat ionalrsquos s i ster publ ica-
tion Pharmaceutical Technology
during his second week on the
job ldquoInstead there is a symbi-
otic relationship between themrdquo
As he sees it the companyrsquos
track record in developing prod-
ucts should attract more spon-
sors ldquoProblems in development
usually occur at the interfaces
Our unique experience of having
lsquodone that beforersquo should be help-
fulrdquo he says
In January PCT entered a
partnership with Invetech an
equipment design firm based in
Australia with offices in San Diego
to develop automated equipment
for cell therapy manufacturing Fig
ur
e 1
is
co
ur
te
sy
oF
in
ve
te
ch
Figure 1 Part of an automated solution being developed by neostem and invetech Automating processes is key to reducing costs
wwwbiopharminternationalcom June 2015 BioPharm International eBook 29
Outsourcing Resources Cell Therapy
The two companies have already
been working together for a year
now honing the design and speci-
fications for the instrumentation
says NeoStemrsquos Chief Scientific
Officer (CSO) Robert Preti The
equipment will tackle cell therapyrsquos
most challenging side autologous
treatments where the manufactur-
ing lot is the patient dose adminis-
tered at the patientrsquos bedside
As Preti notes there really isnrsquot
much available today in the way
of automated equipment for cell
therapy especially on the autolo-
gous side The equipment will sep-
arate and wash cells among other
functions
labor-intensive
proCesses aDD Cost
So far Preti says the company
is evaluating the evolving equip-
ment in NeoStemrsquos own manu-
facturing efforts ldquoOne of the
largest commercial bottlenecks
is the heavy labor required by
processes especially for patient-
specific uses where one batch is
one patientrdquo
The cost of goods i s ver y
high Preti says ldquoSuccess long-
term will require a whole new
approach to development The
goal is to provide high qual-
ity and sustainabilityrdquo he says
Removing manual operat ions
and human error from the pro-
cess will be crucial
Invetech has been work ing
on cell therapy process scale-up
automation for more than 10
years and has successfully com-
pleted projects in North America
Europe and Asia for companies
that include Argos Therapeutics
Aa s t rom CCR M Hu mac y te
Innovacell Janssen kSep Systems
MolMed Organovo and ViaCyte
accord ing to R ichard Grant
global VP of the companyrsquos bio-
pharma operations who has been
with the company for more than
14 years
ldquoThe goal is to develop a mix
of equipment and manufactur-
ing st rateg ies that maximize
quality scalability and sustain-
ability with an eye toward cost-
effect iveness and commercial
viabilityrdquo Grant says Invetechrsquos
solutions typically tailor a mix of
OEM and customized equipment
to the clientrsquos processes The com-
pany recently commercialized
equipment used to manufacture
Janssenrsquos macular degeneration
treatment
Costs of current manufactur-
ing processes for both autologous
and allogeneic therapies are dif-
ficult to peg Last year experts
at University College London
attempted to pinpoint the cost and
overall economics of allogeneic
cell therapy using single-use tech-
nologies (2)
What is clear for both alloge-
neic and autologous systems is
that cell therapy development
Table I Manufacturing scenarios for cell therapies
Attributes Off-the-shelf therapiesPatient-specifc
therapies
Source material Always allogeneic Autologous or matched allogeneic
Batch size Many patients One patient
Business model Similar to pharmabiopharma New
Scaling Scale up (Increased lot size) Scale out (Increased number of lots)
Comparability vs scale Higher concern Lower concern
Manufacturing design drivers
Mission critical success + +++
Optimized process yield +++ +
Dimensional efficiency ++ +-
Integration +- ++
Automation + ++
source invetech
Table II Measuring comparability risk
Risk level Example Timing
None Automated sterility test Before biologics license application
Low Change in process unit op and cell journey is the same
Before 50 accrual in pivotal trials
Medium Change in process unit op and cell journey is similar
Before initiation of pivotal clinical trials
High Change in process unit op and the cell journey is matched
Some Phase II clinical data
source invetech
30 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Cell Therapy
and manufacturing costs are cur-
rently prohibitive ldquoThe starting
points can vary dramaticallyrdquo
Grant says He recalls one cus-
tomer whose autologous process
ran to $80000 per patient in early
stage clinical trials Automation
he says could reduce costs by
40ndash90 depending on the ther-
apy involved
DevelopMent by Design
But before one can automate any
process one must understand it
NeoStem and PCT like a growing
number of companies are taking
the principle of quality by design
(QbD) to heart in their work
Mazzo arguably one of few
life-science company CEOs to
even articulate the QbD concept
explains that the company has
gone a step further and broadened
the International Conference on
Harmonization guidances adopted
by FDA into ldquodevelopment by
designrdquo (DbD)
ldquoWe say first consider the end-
point then take process as is and
understand its unit operations
Develop inputs and outputs and
discrete steps and define the pro-
cess in a way that promotes under-
standingrdquo he says
ldquoThis is challenging given prod-
uct complexity but there is a need
to understand the mechanism of
action very well so you put each
process in this overall envelope
of DbD and consider the cost of
goods scalability and sustainabil-
ityrdquo Preti adds ldquoYou consider the
process from the end only this
time each batch is an individual
patientrdquo
The critical part is defining and
measuring process needs he says
ldquoProduct definition is very impor-
tant particularly the quality target
product profilerdquo explains Brian
Hampson VP of manufacturing
development and engineering at
PCT in an Oct 22 2014 webcast
for the International Society for
Cell Therapy (3)
have the enD in MinD
Such t h ings a s for mulat ion
issues dosage potency impu-
rities residuals and microbial
assurance need to be thought out
clearly from the start Hampson
says as well as indications for
use geographic market projec-
tions cost-of-goods targets and
IP issues
The profile needs to be a liv-
ing document that changes as the
product takes shape Hampson
says There is a tendency for peo-
ple in the industry to ignore the
product profile until they have
all the answers says Hampson
ldquoInstead it needs to be developed
really early even when you donrsquot
have all or even many of the
answers hellip you can leave them
as blanks and continue to review
add to and updaterdquo
The result is not only a tool for
better understanding the prod-
uct process and mechanism of
action but a communication tool
for stakeholders
When to start DbD for cell ther-
apies ldquoThe temptation is to begin
later in the game when you need
reasonable COGS and you need
to be sure of sustainable manu-
facturingrdquo says Hampson ldquoThe
key thing is comparability and
anticipating its implications early
in the clinical program It needs
to be flexible at the early stagesrdquo
Hampson says ldquoBut as you near
Phase III you need to lock in your
equipment evolves
In the bioreactor area there is great interest in moving from 2-D to 3-D processing to enable the processing of the cell volumes required something that companies such as Israelrsquos Pluristem have been doing for some time
Equipment designer Instrom is partnering with companies including BRTI Life Sciences to focus on 3-D cell matrix technologies developed by Dr John Brekke EMD Millipore has been partnering with PharmaCell BV to use its Mobius bioreactor platform to expand and harvest HepRG cells GE Sciences is also evaluating Wave and other systems and set up a center of excellence in Wales recently
In other equipment areas Pall Corp has been partnering with CMDG LLC on cord blood processing technology Following are some of the equipment manufacturers and systems applied in cell therapy development and manufacturing
bull Beckman Coulter bull Corning Cell Stacks and Cell Cube
bull EMD Millipore bull GE Biosciences
bull Thermo Scientificrsquos Nunc Cell Factories bull Pall Corp
wwwbiopharminternationalcom June 2015 BioPharm International eBook 31
Outsourcing Resources Cell Therapy
processrdquo Table II summarizes issues
and points where changes will be
easier
Thus Hampson suggests that
companies whether work ing
with CDMOs or in house think
through such issues as cost of
goods scale and sustainabil-
ity much earlier than they typi-
cally do today ldquoYou donrsquot need to
spend money on these issues but
you do need to think about themrdquo
Hampson says ldquoQuality must be
a key issue even at Phase II trials
and early action pays off laterrdquo
In addition he suggests that
companies th ink about the
e nt i r e p r o c e s s c o mp r e he n -
sively ldquoThere is often a tendency
to focus on the core processing
stepsrdquo Hampson says ldquoBut you
really need to think about every-
thing from collection of mate-
rial through to administration
of product to the patient and all
steps in betweenrdquo
For ce l l therapies d ispos -
able equipment and closed pro-
cesses can be an effective way to
reduce costs and improve quality
and compliance ldquoThey can allow
you to isolate different processes
so that they can share a Class
100000 cleanroom environmentrdquo
Hampson says
ldquoInvesting in automated informa-
tion management can also pay offrdquo
he says ldquowhere an electronic batch
record system that is fully validated
can enable release-by-exception
reducing error documentation
time and overall quality assurance
costsrdquo Hampson says
In addition he notes it is
important to look at costs compre-
hensively an increase in one cost
can for example reduce overhead
improve process sustainability and
cost of goods Table III outlines the
issues
regulations evolve
Cell therapy is still a new area
for regulators and as Preti says
some guidelines are clear and oth-
ers arenrsquot ldquoDevelopment by design
is needed throughout the pro-
cess but the piece we still struggle
with the most is mode of action
(MOA) and product characteriza-
tion Regulatory agencies under-
stand that it is difficult to pinpoint
MOArdquo
Preti emphasizes the importance
of working with regulators ldquoYou
can be in a position to inform and
influence regulations as products
are developedrdquo he says
For any company moving into
this brave new world top-level ques-
tions are needed Preti says empha-
sizing the following ldquoDo you have
an understanding of scale Can you
scale up from very small Can you
characterize the process and control
it for reliability and qualityrdquo
In the stem cell area in particu-
lar this is crucial Preti said since
the product relies heavily on the
process ldquoManufacturing can be
thought of as patient administra-
tion It cannot be separated in
the same way that it can for tra-
ditional medicinesrdquo For contract
suppliers he adds demonstrated
success will be important and
sponsors should consider whether
a prospective partner will be able
to stay with them for the long run
referenCes 1 P Hourd et al Regulatory Challenges
for the Manufacture and Scale-
Out of Autologous Cell Therapies
Massachusetts General Hospital
(Cambridge MA 2013)
2 S Farid et al Biotechnol Bioeng
111(1) 69-83 (January 2014)
3 R Grant Building Deliverable Cell
Therapeutics A Methodical Approach
to Manufacturing Development
(Webinar Oct 22 2014) bp
source invetech
Justifcation driversChange in cost
doseDevelopment
estimate
Unit Op Ref
Change decription
Comparability risk
Quality COGs Scale Sustainability LaborMaterials outplant
Cost Time
P-2 Process change 1 Medium X X darr $ $$$ TT
P-3 Process change 2 High X X X darr $$$ $$$$ TTT
P-4 Process change 3 Low X X darr $$ $$ TTT
P-2 Process change 4 Low X $$ T
QC-4 In-house QC test None X TT
QA-1Electronic Batch
RecordNone X X X
darr $$$$
TTTT
Table III Process changes timing and comparability risks cogs is cost of goods Qc is quality control
32 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Intellectual Property
Protecting Intellectual Property
in Engagements with CMOs
Important IP contractual provisions should be included when working with CMOs
Jennifer L CoLLins
Biotechnology and pharmaceutical companies
often engage contract CMOs to assist with
the development of their drugs This type
of arrangement naturally involves the devel-
opment of intellectual property (IP) so it is
important for both the CMO and the sponsor to iden-
tify pre-existing intellectual property and also define
how rights to new IP will be allocated protected and
enforced by and between the companies
If the arrangement with the CMO is a traditional fee-
for-service arrangement where the company pays the
CMO service fees to perform development work on its
behalf then generally all new IP (other than improve-
ments to the CMOrsquos manufacturing technology) will be
owned by the biotechnology or pharmaceutical com-
pany that engaged the CMO On the other hand if the
arrangement between the CMO and the biotechnology
or pharmaceutical company is more of a collaborative
arrangement where both parties share the costs of devel-
opment as well as any profits from the commercializa-
tion then IP concerns become much more complicated
In that case in addition to describing which party will
Jennifer L CoLLins is a technology and licensing attorney with Morningstar Law Group jcollinsmorningstarlawgroupcom
Fa
na
tic S
tud
ioG
ett
y Im
ag
es
wwwbiopharminternationalcom June 2015 BioPharm International eBook 33
Outsourcing Resources Intellectual Property
own the new IP the contract should
sort out which party will be respon-
sible for obtaining and maintaining
patents on the new IP controlling
litigation against infringers and
defending the IP against challenges
In addition the parties should agree
upfront on how the IP may be used
by each party following various ter-
mination events so that the parties
are not left fighting about such mat-
ters at a time when they may not be
inclined to agree to anything
In both arrangements without
specific contractual provisions to
define and protect the new IP a
biotechnology company or phar-
maceutical company that uses a
CMO for development is at risk of
losing control of and possibly own-
ership of important improvements
to its drugs This article discusses
IP contractual provisions that
should be included in each type of
arrangement
Fee-For-service
development work
Traditionally CMOs perform fee-for-
service development work where
a biotechnology or pharmaceutical
company engages the CMO to per-
form this work for a fixed fee In this
type of arrangement the CMO is a
service provider and typically takes
no ownership interest in the drug or
product that is being developed or
in improvements to an existing drug
or product that is being tested or
developed The contract governing
the relationship nevertheless must
be clear about the IP rights that are
owned and licensed by each party
If the contract does not provide
for proper assignments of IP to the
biotechnology or pharmaceutical
company then it is likely that the
CMO will own any improvements
or other inventions that it develops
in the performance of the develop-
ment services even if that is not the
intent of the parties
Without signed written contracts
that state otherwise under United
States patent law the inventor of
a patentable invention or improve-
ment will own the invention or
improvement even if the inventor
is engaged to develop the invention
or the improvement for a customer
or other third party To ensure
that the biotechnology company or
pharmaceutical company obtains
all the patent and other IP rights
in developments inventions and
improvements created in the per-
formance of services by the CMO
the governing contract between the
biotechnology company or phar-
maceutical company and the CMO
must include written present assign-
ments of those IP rights from the
CMO to the company Indeed based
on recent cases it is crucial that the
assignment clause in the contract
be a ldquopresentrdquo assignment mean-
ing that it must state specifically
that the CMO ldquohereby assignshelliprdquo
rather than a clause stating that the
CMO ldquoagrees to assignrdquo rights in the
future Otherwise the contract will
be interpreted as a promise to assign
rights in the future and the bio
pharmaceutical company will have
to go back to the CMO at some later
point in time for a separate writ-
ten assignment of rights to obtain
all patent and other IP rights in the
developments
While it sounds logical and
straightforward that the CMO
would assign all inventions created
in the development work to its cus-
tomer it is not always that simple
in practice What if the CMO devel-
ops an improvement to its manu-
facturing process in the course of
the development work Most CMOs
will want to reserve ownership of
any improvements to the CMOrsquos
existing IP and confidential infor-
mation This position is not unrea-
sonable as long as the customer
ultimately has the rights it needs in
all new inventions including those
owned by the CMO to take the drug
forward through further develop-
ment and commercialization One
must sort out IP allocation by sub-
ject matter To achieve this allo-
cation the development contract
typically will state that each party
retains ownership of all IP that it
owns as of the date of the contract
(all pre-existing intellectual prop-
erty) It will also state that the cus-
tomer owns its proprietary drug
and all improvements to the drug
or the customerrsquos confidential infor-
mation developed by either or both
parties The development contract
also may state more generally that
the customer owns all inventions
improvements and IP rights related
to the customerrsquos drug With respect
to the CMO and its IP the develop-
ment contract may state that the
CMO owns all improvements to the
CMOrsquos manufacturing process and
to its other pre-existing intellectual
property Again this reservation is
not unreasonable The customer
however should determine whether
it requires access to those improve-
ments or inventions to complete the
development and commercialization
of its drug If such access is necessary
the customer should either negotiate
a license (which may be royalty-free
or royalty-based depending on the
circumstances) to use such improve-
ments or inventions to develop and
commercialize the drug or the cus-
tomer should negotiate the terms
under which the CMO will continue
to use the improvements or inven-
tions to perform development work
andor manufacture the drug for the
customer
In the fee-for-service arrange-
ment the assignment and licensing
of IP rights in new inventions and
improvements is the key intellectual
property issue Intellectual property
considerations become much more
complicated when the biotechnol-
34 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Intellectual Property
ogy or pharmaceutical company
partners with a CMO in the devel-
opment of a new drug or product
where the parties share development
costs and profits from commercial-
ization of the drug or product
cmo as collaborator
Although not as common as the
fee-for-service arrangement a CMO
may partner with a biotechnology
or pharmaceutical company in the
development and commercialization
of a drug or product Generally both
parties are bringing pre-existing IP
to the collaboration such as a drug
from a biopharmaceutical com-
pany and proprietary drug delivery
technology from the CMO In this
scenario the CMO is taking a long-
term interest and often a part-own-
ership interest in the success of the
drug product
Instead of getting paid an hourly
rate or fixed fee for development
work on the drug product the CMO
may share the cost of development
work with the biotechnology or
pharmaceutical partner in exchange
for a share of the profits when the
drug or product is commercialized
Other costs involved in the develop-
ment and commercialization of the
drug or product that may be shared
include the cost of patent prosecu-
tion and the cost of patent litigation
if the drug product is challenged or
if it is misappropriated or infringed
To secure its interest in the profits
from commercialization of the drug
product the CMO may want to take
an ownership interest in the intel-
lectual property rights in the drug
product All of these issues must be
carefully addressed in the develop-
ment contract to avoid both finan-
cial and IP disputes
As with the fee-for-serv ice
arrangement the parties must
allocate ownership of intellectual
property rights pertaining to the
drug product to be commercialized
These rights include both pre-exist-
ing IP rights and new inventions
and improvements developed in
the course of the development con-
tract As with the fee-for-service
arrangement the parties typically
will retain rights to their respec-
tive pre-existing IP Intellectual
property rights to new inventions
and improvements however may
be shared by giving each party a
co-ownership interest in the intel-
lectual property Alternatively such
rights may be allocated by inventor-
ship with each party taking owner-
ship of developments that it invents
and with the parties jointly own-
ing jointly developed inventions
As another alternative the IP rights
may be allocated by subject matter
as in the fee-for-service arrangement
with each party owning improve-
ments and inventions related to its
pre-existing IP regardless of which
party invents those improvements
and inventions
Depending on how the pat-
ent applications are drafted the
IP rights may be ldquosliced and dicedrdquo
more finely One party for example
could own patent rights for a drug
product for one indication while the
other party owns patent rights for
the same drug product for another
indication Decisions about how
to allocate the IP rights should be
made in consultation with intel-
lectual property counsel and must
take into account the manner in
which the drug will be commercial-
ized If one party for example is
to commercialize the product in
North America and Europe and
the other party is to commercialize
the product in the rest of the world
then either the patent ownership
should be allocated by territory or
the development contract should
include exclusive cross-licenses of
each partyrsquos rights in all the intel-
lectual property necessary to com-
mercialize the product with the first
party having an exclusive license to
commercialize the product in North
America and Europe and the second
party having an exclusive license to
commercialize the product in the
rest of the world
If the parties are going to share
ownership of the IP related to the
drug product then the develop-
ment contract also should specify
which party is responsible for pros-
ecuting and maintaining patents
on the drug product Regardless of
which party is responsible for patent
prosecution and maintenance the
other party should be consulted and
involved in key decisions regard-
ing patent prosecution and main-
tenance Unless there are multiple
patents for different indications that
will be commercialized exclusively
by one party and unless each party
has exclusive rights to commercial-
ize the drug product in particular
geographic areas it generally makes
sense for one party to take the pri-
mary responsibility for patent pros-
ecution and maintenance globally
with the other party consulting and
sharing in the cost of the prosecu-
tion and maintenance in accordance
with the profit sharing The party
that is not responsible for prosecu-
tion and maintenance should have
a contractual right to approve patent
counsel and review and approve pat-
ent filings office action responses
and other communications with
patent registries before they are filed
or submitted so that the parties
agree on the proper prosecution and
maintenance strategy
Likewise the development con-
tract should allocate the rights and
responsibilities for asserting and
defending the patents pertaining to
the product in litigation Often these
rights and responsibilities are allo-
cated by territory according to com-
mercialization rights If one party
for example has the exclusive right
to commercialize the drug product
wwwbiopharminternationalcom June 2015 BioPharm International eBook 35
Outsourcing Resources Intellectual Property
in the US then that party would
have the first right and responsibil-
ity to assert the patents on the drug
product against potential infringers
and defend the patents on the drug
product against infringement claims
in the US Likewise if one party has
the exclusive right to commercial-
ize the drug product for a particular
indication then that party would
have the first right and responsibility
to assert or defend the patents per-
taining to the product with respect
to that indication Both scenarios
can present challenges First some
courts will not recognize an exclu-
sive licensee as having standing to
assert a patent That court might
only allow the owner of the patent
(and not the exclusive licensee) to
bring a lawsuit asserting the patent
It is crucial therefore that contrac-
tual provisions relating to patent liti-
gation require the party that owns
the patent to cooperate in any litiga-
tion and to join the suit as a party if
necessary
Another potential problem is that
any litigation that asserts the pat-
ent is likely to draw a counterclaim
that the patent is invalid thus put-
ting the patent itself at risk of invali-
dation While one party might be
threatened by a potential infringer
in a particular market or for a partic-
ular indication and therefore might
want to assert the patent against the
potential infringer the other party
might not want to put the patent at
risk as to other markets and other
indications For these reasons the
contractual provisions pertaining
to patent litigation must be care-
fully drafted in consultation with
intellectual property counsel who
understands standing issues and
the potential areas for dispute The
contractual provisions also should
include dispute resolution provi-
sions for situations when the parties
do not agree on whether a patent
should be asserted
Finally while the parties may
want and expect their relationship
to continue for the full term of the
patents and the development con-
tract the parties must carefully
consider the IP ramifications of an
early termination of the develop-
ment contract and the relationship
particularly if the development con-
tract is terminated for breach If the
parties are sharing in the ownership
commercialization and profits gen-
erated by the drug product devel-
oped by the collaboration then
all of that must be unwound upon
termination The development
contract should be as specific as
possible with respect to the effect of
various types of termination on the
intellectual property and contin-
ued commercialization of the drug
product In particular the parties
may agree that if the development
contract is terminated due to breach
by one party then that breaching
party must relinquish and transfer
all of its rights with respect to the
drug product to the other party to
allow the non-breaching party to
continue the commercialization of
the drug product post-termination
Whether the necessary rights are
assigned or licensed whether the
terminated party should receive a
royalty for the transfer or license of
those rights and what if any pre-
existing IP is licensed to enable the
non-breaching party to continue
commercializing the drug product
are all key factors for negotiation
The development contract should
also address other types of termi-
nation such as termination for
insolvency and termination with-
out cause (ie if one party decides
it no longer wants to commercial-
ize the drug product) In each case
the effect of termination on the IP
rights should be carefully analyzed
and a competent IP counsel should
carefully draft post-termination
assignments and licenses
conclusion
While IP lawyers are not equipped
with crystal balls they can be
extremely helpful in analyzing par-
ticular development commercializa-
tion and post-termination scenarios
all of which affect IP in a drug devel-
opment arrangement Contractual
provisions related to IP must be
carefully drafted to align with the
strategic business objectives of any
relationship and particularly one
whose purpose is the development
and commercialization of intellec-
tual property Without a clear con-
tract each collaborator is at risk of
losing important rights bp
Ad Index
AJINOMOTO ALTHEA 21
AVID BIOSERVICES INC 15
CYTOVANCE BIOLOGICS 27
EMERGENT BIOSOLUTIONS 13
EUROFINS LANCASTER LABORATORIES 7
SAFC BIOSCIENCES SIGMA ALDRICH 17
THERMO FISHER SCIENTIFIC 23
TOSOH BIOSCIENCE 11
WATERS CORP 3
Company Page
![Page 23: OUOURT NG I C RESOURCESfiles.pharmtech.com/alfresco_images/pharma/2019/03/08/... · 2019-07-22 · VIDEO INTERVIEW Biologics Development and Manufacturing Trends: Part I ... Media](https://reader034.vdocuments.us/reader034/viewer/2022050113/5f4aca886c0d6724390eb040/html5/thumbnails/23.jpg)
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accurately with our new portfolio of LC-MS instruments sample prep solutions and software HRAM
solutions using Thermo Scienti ctrade Orbitraptrade MS enables selectivity for complex molecules while
triple quadrupole MS delivers SRM sensitivity and speed to detect targeted compounds more quickly
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in a triple quadrupole MSMS
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copy 2
014
Ther
mo
Fish
er S
cien
tifi c
Inc
All
right
s re
serv
ed A
ll tr
adem
arks
are
th
e pr
oper
ty o
f The
rmo
Fish
er S
cien
tifi c
and
its
subs
idia
ries
bull Discover more at thermoscienti ccomquan-transformed
24 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources FillFinish
Cmos stAying
AheAd of the Curve
In the whitepaper on in-house
fillfinish operations for recom-
binant therapeutics (2) BioPlan
found relatively low average in-
house capacity utilization rates
for lyophilization (55) pre-filled
devices (58) and vialing (70)
This finding suggests that for fill
finish CMOs the real value isnrsquot
necessarily in providing additional
flexible capacity but rather in posi-
tioning themselves as providing
highly sophisticated and novel
technologies and expertise in fill
finish services Indeed CMOs are
expected to have state-of-the-art
equipment As Pekos notes ldquoCMOs
who implement flexible and inno-
vative technologies to make man-
ufacturing or development more
efficient faster compliant or more
economical all serve to make them
more attractive to customersrdquo
For CMOs that make use of
innovative fillfinish technologies
there appears to be a good deal
of demand Results from BioPlanrsquos
annual studies indicate that fill
finish services are among the most
widely and heavily outsourced
biomanufacturing activities today
and are also among the activities
that biomanufacturers are most
likely to outsource at significantly
higher levels in the future
Biomanufacturers and CMOs are
actively looking to their fillfin-
ish equipment suppliers and are
beginning to demand additional
new technologies innovation and
product development In 2014 for
example when the top areas that
biomanufacturers wanted their
suppliers to focus their develop-
ment efforts on were measured
fillfinish services topped the list
cited by 23 of biomanufacturers
Not only did that figure represent
a substantial increase from years
past (13 in 2011) but it was also
ahead of other services including
upstream and downstream process
development services
Fillfinish will continue
to be an area of
growth for CMOs
There are a number of areas in
which suppliers can add value to
fillfinish innovation according
to industry experts Jim Agalloco
president of Agalloco amp Associates
in Belle Mead NJ says ldquovendors of
equipment and components to fill
finish must continue their roles as
technology leaders Innovation in
this market has always been sup-
plier driven because the operating
firms do not have the necessary
expertise Collaboration between
equipment manufacturers and
component suppliers is essential
for implementation of new con-
tainer systems single-use dispos-
ables and other advancesrdquo
Ronald Malone senior principal
scientist at Novartis Vaccines says
ldquoBlow-fill-seal containerclosure
systems are beneficial for small-
volume parenterals However over-
all cost may still be higher per unit
than traditional vialstopper fill-
ing Vaccines and biologicals can
benefit from single-dose disposable
systems that drive down the cost
of the containerclosure system
This will assist the global supply to
developing world countries where
these products are truly neededrdquo
W B W i e d e r s e i m o f
PharmaBioSource in Wayne PA
states ldquoWe see smaller higher
technical facilities inclusive of dis-
posables (isolators and not RABS)
and advanced aseptic work cell
technology as the wave of the
futurerdquo
WhAt does the future hold
BioPlanrsquos survey data and indus-
try interviews indicate that fill
f inish will continue to be an
area of growth for CMOs that
maintain the required technical
quality and regulatory expertise
in this segment Experts have
taken note of CMOsrsquo introduc-
tion of smaller filling machines
for syringes or vials a trend that
may be in response to the indus-
try-wide move towards smaller-
scale manufactur ing projects
This shift may be accelerated by
the advent of biosimilars which
should provide an increasing
number of projects for fillfin-
ish CMOs although likely on a
smaller scale This increase in
projects could lead to potential
mergers and acquisitions with
some experts noting that fillfin-
ish CMOs are already engaging
in this trend toward larger capac-
ity and global operations
Indeed within the past 18
months a number of acquisi-
tions have occurred including
Pfizerrsquos acquisitions of Hospira
a nd In noPha r ma Pat heonrsquos
mergers in the contract services
space IDT Biolog ika invest-
ments Vet ter invest ing USD
$100 million to upgrade fill-fin-
ish facilities in the United States
a nd Ger ma ny a nd Ba xte r rsquos
investment in German facilities
and numerous others (3)
For CMOs to stay ahead of the
curve they will likely need to
continue to adopt disposables
technologies and advance their
automation in full isolators Ray
Cardin of PharMax Consulting
says ldquoIncreased use of dispos-
able pre-sterilized f illing tech-
nologies [are future trends] The
combination of these pre-ster-
ilized units with the coming of
age of ster i le connectors that
provide high sterility assurance
wwwbiopharminternationalcom June 2015 BioPharm International eBook 25
Outsourcing Resources FillFinish
Biologics Development and Manufacturing Trends Part II
Eric Langer Managing Partner BioPlan Associates talks about the results from BioPlan AssociatesOtilde 12th Annual Report and Survey of Biopharmaceutical Manufacturing Capacity and Production Langer discusses what respondents indicated as the number one trend in biologics manufacturing improving efficiencies and the biosimilars market
in less clean environments is
changing the way aseptic pro-
cesses are designedrdquo
Gordon Leichter PhD Eastern
r e g io n a l s a l e s m a n a ge r a t
Belimed in Charleston SC states
ldquoAutomat ion in fu l l i solators
wil l el iminate operator inter-
vention and laser-sealed vials
Automation will become more
integral to building automation
and enterprise systemsrdquo
Douglas Stockdale vice-presi-
dent CMCTechnical Operations
Hi l lhurst Biopharmaceut ica ls
Los Angeles CA says ldquoIndustry
will continue pushing the PAT
[process analytical technology]
envelope to f ind a lternat ive
methods to improve in-process
methodologies and processesrdquo
Fe r ne ma n add s ldquoCu r r e nt
trends in fillfinish innovation
will probably focus the market
authorization holders on a few
strategic products resulting in
outsourcing of a bigger share of
products overallrdquo
ConClusion
Until recently the handling of
ster i le l iquids in the pharma-
ceutical industry has relied on
relatively consistent techniques
during the past 100 years with
relatively slow changes in tech-
nologies and regulations result-
ing in incremental improvements
in safety efficiency and prod-
uct quality During the past 20
years however costly biologics
have taken a prominent indus-
try role The value of these drugs
can often be measured in tens of
thousands per dose This has put
greater pressure on these down-
stream fillfinish operations to
ensure quality safety and cost-
efficiency are not compromised
at this crucial late stage in manu-
facturing Trends in fillfinish for
recombinant therapeutics include
the increased use of isolator
technologies more high-speed
operations and other innovative
approaches including single-use
processing As a result of industry
research BioPlan expects more
outsourcing of fillfinish opera-
tions in coming years
referenCes 1 BioPlan Associates 12th Annual
Report and Survey of Biopharmaceutical
Manufacturing Capacity and Production
(Rockville MD April 2015) www
bioplanassociatescom
2 BioPlan Associates Trends in Aseptic
Bioprocessing Capacity for the Fill and
Finish of Recombinant Biologics An
Analysis of US and European In-house
Capacity and Capacity Utilization (BioPlan
Associates December 2014)
3 Information derived from BioPlan
Associatesrsquo BioFacilities Newsletters Bp
26 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Cell Therapy
Taking a ldquoDevelopment-by-Designrdquo
Approach to Cell Therapies
Whether outsourcing or developing cell therapies in-house success demands a focus on quality cost of goods
and sustainability from the start
Agnes shAnley
Cell therapies both autologous and allo-
geneic have come a long way in just a
few years Countries around the world
most recently Japan have passed regula-
tions designed to speed development of
these treatments which are now a big and growing
global business
In 2013 according to the Pharmaceutical Research
and Manufacturers Association 69 cell therapies six
of them autologous or patient-specific treatments
were in clinical trials or being reviewed in the United
States alone 15 of them in Phase III trials (1)
The road is littered with failures however often
in clinical stages This has been traced to problems
with manufacturing and failure to understand pro-
cess requirements earlier in the development process
Table I outlines manufacturing issues
As a growing number of Big Pharma companies
explore the potential for immune regenerative and
other cell therapies equipment manufacturers includ-
Agnes shAnley is senior editor of BioPharm International
SC
IEP
RO
GE
tt
y Im
aG
ES
wwwcytovancecomResponsive Reliable Resourceful
Your partner in biopharmaceutical contract manufacturing of therapeutic proteins and antibodies from mammalian cell culture and microbial fermentation
28 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Cell Therapy
ing Pall Corp EMD Millipore
and GE Biosystems have set up
centers of excellence to focus on
developing equipment for this
new market Engineering compa-
nies such as Invetech and Instrom
are developing equipment specific
to this niche
More CDMos are entering
Cell therapy Market niChe
Demand for spec ia l i zed ce l l
t he rapy ma nu fac t u r ing a nd
development serv ices is a lso
growing and has attracted Lonza
Bioservices Cognate BioServices
WuXi AppTech and Roslin Cells
among others
NeoStem is fol low ing t wo
paths pursuing its own cel l
therapy pipel ine and explor-
ing contract services through
its contract development and
manufac t u r ing organ i zat ion
(CDMO) subsidiary Progenitor
Cell Therapy (PCT) With bases
in Irvine and Mountain View CA
and Allendale NJ PCT is cur-
rently working with Intrexon and
Fibrocell on connective tissue
treatments and with the United
K ingdomrsquos Adapt immune on
oncology treatments
A new CEO David Mazzo with
a doctorate in analytical chemis-
try and experience running both
private and public international
biopharma companies assumed
NeoStemrsquos leadership in January
He sees no conflict between grow-
ing a pipeline and a contract man-
ufacturing business
ldquoWe are not trying to be two
di f ferent companies and we
do not see the two competing
with each otherrdquo says Mazzo
in an interview with BioPharm
Inte rnat ionalrsquos s i ster publ ica-
tion Pharmaceutical Technology
during his second week on the
job ldquoInstead there is a symbi-
otic relationship between themrdquo
As he sees it the companyrsquos
track record in developing prod-
ucts should attract more spon-
sors ldquoProblems in development
usually occur at the interfaces
Our unique experience of having
lsquodone that beforersquo should be help-
fulrdquo he says
In January PCT entered a
partnership with Invetech an
equipment design firm based in
Australia with offices in San Diego
to develop automated equipment
for cell therapy manufacturing Fig
ur
e 1
is
co
ur
te
sy
oF
in
ve
te
ch
Figure 1 Part of an automated solution being developed by neostem and invetech Automating processes is key to reducing costs
wwwbiopharminternationalcom June 2015 BioPharm International eBook 29
Outsourcing Resources Cell Therapy
The two companies have already
been working together for a year
now honing the design and speci-
fications for the instrumentation
says NeoStemrsquos Chief Scientific
Officer (CSO) Robert Preti The
equipment will tackle cell therapyrsquos
most challenging side autologous
treatments where the manufactur-
ing lot is the patient dose adminis-
tered at the patientrsquos bedside
As Preti notes there really isnrsquot
much available today in the way
of automated equipment for cell
therapy especially on the autolo-
gous side The equipment will sep-
arate and wash cells among other
functions
labor-intensive
proCesses aDD Cost
So far Preti says the company
is evaluating the evolving equip-
ment in NeoStemrsquos own manu-
facturing efforts ldquoOne of the
largest commercial bottlenecks
is the heavy labor required by
processes especially for patient-
specific uses where one batch is
one patientrdquo
The cost of goods i s ver y
high Preti says ldquoSuccess long-
term will require a whole new
approach to development The
goal is to provide high qual-
ity and sustainabilityrdquo he says
Removing manual operat ions
and human error from the pro-
cess will be crucial
Invetech has been work ing
on cell therapy process scale-up
automation for more than 10
years and has successfully com-
pleted projects in North America
Europe and Asia for companies
that include Argos Therapeutics
Aa s t rom CCR M Hu mac y te
Innovacell Janssen kSep Systems
MolMed Organovo and ViaCyte
accord ing to R ichard Grant
global VP of the companyrsquos bio-
pharma operations who has been
with the company for more than
14 years
ldquoThe goal is to develop a mix
of equipment and manufactur-
ing st rateg ies that maximize
quality scalability and sustain-
ability with an eye toward cost-
effect iveness and commercial
viabilityrdquo Grant says Invetechrsquos
solutions typically tailor a mix of
OEM and customized equipment
to the clientrsquos processes The com-
pany recently commercialized
equipment used to manufacture
Janssenrsquos macular degeneration
treatment
Costs of current manufactur-
ing processes for both autologous
and allogeneic therapies are dif-
ficult to peg Last year experts
at University College London
attempted to pinpoint the cost and
overall economics of allogeneic
cell therapy using single-use tech-
nologies (2)
What is clear for both alloge-
neic and autologous systems is
that cell therapy development
Table I Manufacturing scenarios for cell therapies
Attributes Off-the-shelf therapiesPatient-specifc
therapies
Source material Always allogeneic Autologous or matched allogeneic
Batch size Many patients One patient
Business model Similar to pharmabiopharma New
Scaling Scale up (Increased lot size) Scale out (Increased number of lots)
Comparability vs scale Higher concern Lower concern
Manufacturing design drivers
Mission critical success + +++
Optimized process yield +++ +
Dimensional efficiency ++ +-
Integration +- ++
Automation + ++
source invetech
Table II Measuring comparability risk
Risk level Example Timing
None Automated sterility test Before biologics license application
Low Change in process unit op and cell journey is the same
Before 50 accrual in pivotal trials
Medium Change in process unit op and cell journey is similar
Before initiation of pivotal clinical trials
High Change in process unit op and the cell journey is matched
Some Phase II clinical data
source invetech
30 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Cell Therapy
and manufacturing costs are cur-
rently prohibitive ldquoThe starting
points can vary dramaticallyrdquo
Grant says He recalls one cus-
tomer whose autologous process
ran to $80000 per patient in early
stage clinical trials Automation
he says could reduce costs by
40ndash90 depending on the ther-
apy involved
DevelopMent by Design
But before one can automate any
process one must understand it
NeoStem and PCT like a growing
number of companies are taking
the principle of quality by design
(QbD) to heart in their work
Mazzo arguably one of few
life-science company CEOs to
even articulate the QbD concept
explains that the company has
gone a step further and broadened
the International Conference on
Harmonization guidances adopted
by FDA into ldquodevelopment by
designrdquo (DbD)
ldquoWe say first consider the end-
point then take process as is and
understand its unit operations
Develop inputs and outputs and
discrete steps and define the pro-
cess in a way that promotes under-
standingrdquo he says
ldquoThis is challenging given prod-
uct complexity but there is a need
to understand the mechanism of
action very well so you put each
process in this overall envelope
of DbD and consider the cost of
goods scalability and sustainabil-
ityrdquo Preti adds ldquoYou consider the
process from the end only this
time each batch is an individual
patientrdquo
The critical part is defining and
measuring process needs he says
ldquoProduct definition is very impor-
tant particularly the quality target
product profilerdquo explains Brian
Hampson VP of manufacturing
development and engineering at
PCT in an Oct 22 2014 webcast
for the International Society for
Cell Therapy (3)
have the enD in MinD
Such t h ings a s for mulat ion
issues dosage potency impu-
rities residuals and microbial
assurance need to be thought out
clearly from the start Hampson
says as well as indications for
use geographic market projec-
tions cost-of-goods targets and
IP issues
The profile needs to be a liv-
ing document that changes as the
product takes shape Hampson
says There is a tendency for peo-
ple in the industry to ignore the
product profile until they have
all the answers says Hampson
ldquoInstead it needs to be developed
really early even when you donrsquot
have all or even many of the
answers hellip you can leave them
as blanks and continue to review
add to and updaterdquo
The result is not only a tool for
better understanding the prod-
uct process and mechanism of
action but a communication tool
for stakeholders
When to start DbD for cell ther-
apies ldquoThe temptation is to begin
later in the game when you need
reasonable COGS and you need
to be sure of sustainable manu-
facturingrdquo says Hampson ldquoThe
key thing is comparability and
anticipating its implications early
in the clinical program It needs
to be flexible at the early stagesrdquo
Hampson says ldquoBut as you near
Phase III you need to lock in your
equipment evolves
In the bioreactor area there is great interest in moving from 2-D to 3-D processing to enable the processing of the cell volumes required something that companies such as Israelrsquos Pluristem have been doing for some time
Equipment designer Instrom is partnering with companies including BRTI Life Sciences to focus on 3-D cell matrix technologies developed by Dr John Brekke EMD Millipore has been partnering with PharmaCell BV to use its Mobius bioreactor platform to expand and harvest HepRG cells GE Sciences is also evaluating Wave and other systems and set up a center of excellence in Wales recently
In other equipment areas Pall Corp has been partnering with CMDG LLC on cord blood processing technology Following are some of the equipment manufacturers and systems applied in cell therapy development and manufacturing
bull Beckman Coulter bull Corning Cell Stacks and Cell Cube
bull EMD Millipore bull GE Biosciences
bull Thermo Scientificrsquos Nunc Cell Factories bull Pall Corp
wwwbiopharminternationalcom June 2015 BioPharm International eBook 31
Outsourcing Resources Cell Therapy
processrdquo Table II summarizes issues
and points where changes will be
easier
Thus Hampson suggests that
companies whether work ing
with CDMOs or in house think
through such issues as cost of
goods scale and sustainabil-
ity much earlier than they typi-
cally do today ldquoYou donrsquot need to
spend money on these issues but
you do need to think about themrdquo
Hampson says ldquoQuality must be
a key issue even at Phase II trials
and early action pays off laterrdquo
In addition he suggests that
companies th ink about the
e nt i r e p r o c e s s c o mp r e he n -
sively ldquoThere is often a tendency
to focus on the core processing
stepsrdquo Hampson says ldquoBut you
really need to think about every-
thing from collection of mate-
rial through to administration
of product to the patient and all
steps in betweenrdquo
For ce l l therapies d ispos -
able equipment and closed pro-
cesses can be an effective way to
reduce costs and improve quality
and compliance ldquoThey can allow
you to isolate different processes
so that they can share a Class
100000 cleanroom environmentrdquo
Hampson says
ldquoInvesting in automated informa-
tion management can also pay offrdquo
he says ldquowhere an electronic batch
record system that is fully validated
can enable release-by-exception
reducing error documentation
time and overall quality assurance
costsrdquo Hampson says
In addition he notes it is
important to look at costs compre-
hensively an increase in one cost
can for example reduce overhead
improve process sustainability and
cost of goods Table III outlines the
issues
regulations evolve
Cell therapy is still a new area
for regulators and as Preti says
some guidelines are clear and oth-
ers arenrsquot ldquoDevelopment by design
is needed throughout the pro-
cess but the piece we still struggle
with the most is mode of action
(MOA) and product characteriza-
tion Regulatory agencies under-
stand that it is difficult to pinpoint
MOArdquo
Preti emphasizes the importance
of working with regulators ldquoYou
can be in a position to inform and
influence regulations as products
are developedrdquo he says
For any company moving into
this brave new world top-level ques-
tions are needed Preti says empha-
sizing the following ldquoDo you have
an understanding of scale Can you
scale up from very small Can you
characterize the process and control
it for reliability and qualityrdquo
In the stem cell area in particu-
lar this is crucial Preti said since
the product relies heavily on the
process ldquoManufacturing can be
thought of as patient administra-
tion It cannot be separated in
the same way that it can for tra-
ditional medicinesrdquo For contract
suppliers he adds demonstrated
success will be important and
sponsors should consider whether
a prospective partner will be able
to stay with them for the long run
referenCes 1 P Hourd et al Regulatory Challenges
for the Manufacture and Scale-
Out of Autologous Cell Therapies
Massachusetts General Hospital
(Cambridge MA 2013)
2 S Farid et al Biotechnol Bioeng
111(1) 69-83 (January 2014)
3 R Grant Building Deliverable Cell
Therapeutics A Methodical Approach
to Manufacturing Development
(Webinar Oct 22 2014) bp
source invetech
Justifcation driversChange in cost
doseDevelopment
estimate
Unit Op Ref
Change decription
Comparability risk
Quality COGs Scale Sustainability LaborMaterials outplant
Cost Time
P-2 Process change 1 Medium X X darr $ $$$ TT
P-3 Process change 2 High X X X darr $$$ $$$$ TTT
P-4 Process change 3 Low X X darr $$ $$ TTT
P-2 Process change 4 Low X $$ T
QC-4 In-house QC test None X TT
QA-1Electronic Batch
RecordNone X X X
darr $$$$
TTTT
Table III Process changes timing and comparability risks cogs is cost of goods Qc is quality control
32 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Intellectual Property
Protecting Intellectual Property
in Engagements with CMOs
Important IP contractual provisions should be included when working with CMOs
Jennifer L CoLLins
Biotechnology and pharmaceutical companies
often engage contract CMOs to assist with
the development of their drugs This type
of arrangement naturally involves the devel-
opment of intellectual property (IP) so it is
important for both the CMO and the sponsor to iden-
tify pre-existing intellectual property and also define
how rights to new IP will be allocated protected and
enforced by and between the companies
If the arrangement with the CMO is a traditional fee-
for-service arrangement where the company pays the
CMO service fees to perform development work on its
behalf then generally all new IP (other than improve-
ments to the CMOrsquos manufacturing technology) will be
owned by the biotechnology or pharmaceutical com-
pany that engaged the CMO On the other hand if the
arrangement between the CMO and the biotechnology
or pharmaceutical company is more of a collaborative
arrangement where both parties share the costs of devel-
opment as well as any profits from the commercializa-
tion then IP concerns become much more complicated
In that case in addition to describing which party will
Jennifer L CoLLins is a technology and licensing attorney with Morningstar Law Group jcollinsmorningstarlawgroupcom
Fa
na
tic S
tud
ioG
ett
y Im
ag
es
wwwbiopharminternationalcom June 2015 BioPharm International eBook 33
Outsourcing Resources Intellectual Property
own the new IP the contract should
sort out which party will be respon-
sible for obtaining and maintaining
patents on the new IP controlling
litigation against infringers and
defending the IP against challenges
In addition the parties should agree
upfront on how the IP may be used
by each party following various ter-
mination events so that the parties
are not left fighting about such mat-
ters at a time when they may not be
inclined to agree to anything
In both arrangements without
specific contractual provisions to
define and protect the new IP a
biotechnology company or phar-
maceutical company that uses a
CMO for development is at risk of
losing control of and possibly own-
ership of important improvements
to its drugs This article discusses
IP contractual provisions that
should be included in each type of
arrangement
Fee-For-service
development work
Traditionally CMOs perform fee-for-
service development work where
a biotechnology or pharmaceutical
company engages the CMO to per-
form this work for a fixed fee In this
type of arrangement the CMO is a
service provider and typically takes
no ownership interest in the drug or
product that is being developed or
in improvements to an existing drug
or product that is being tested or
developed The contract governing
the relationship nevertheless must
be clear about the IP rights that are
owned and licensed by each party
If the contract does not provide
for proper assignments of IP to the
biotechnology or pharmaceutical
company then it is likely that the
CMO will own any improvements
or other inventions that it develops
in the performance of the develop-
ment services even if that is not the
intent of the parties
Without signed written contracts
that state otherwise under United
States patent law the inventor of
a patentable invention or improve-
ment will own the invention or
improvement even if the inventor
is engaged to develop the invention
or the improvement for a customer
or other third party To ensure
that the biotechnology company or
pharmaceutical company obtains
all the patent and other IP rights
in developments inventions and
improvements created in the per-
formance of services by the CMO
the governing contract between the
biotechnology company or phar-
maceutical company and the CMO
must include written present assign-
ments of those IP rights from the
CMO to the company Indeed based
on recent cases it is crucial that the
assignment clause in the contract
be a ldquopresentrdquo assignment mean-
ing that it must state specifically
that the CMO ldquohereby assignshelliprdquo
rather than a clause stating that the
CMO ldquoagrees to assignrdquo rights in the
future Otherwise the contract will
be interpreted as a promise to assign
rights in the future and the bio
pharmaceutical company will have
to go back to the CMO at some later
point in time for a separate writ-
ten assignment of rights to obtain
all patent and other IP rights in the
developments
While it sounds logical and
straightforward that the CMO
would assign all inventions created
in the development work to its cus-
tomer it is not always that simple
in practice What if the CMO devel-
ops an improvement to its manu-
facturing process in the course of
the development work Most CMOs
will want to reserve ownership of
any improvements to the CMOrsquos
existing IP and confidential infor-
mation This position is not unrea-
sonable as long as the customer
ultimately has the rights it needs in
all new inventions including those
owned by the CMO to take the drug
forward through further develop-
ment and commercialization One
must sort out IP allocation by sub-
ject matter To achieve this allo-
cation the development contract
typically will state that each party
retains ownership of all IP that it
owns as of the date of the contract
(all pre-existing intellectual prop-
erty) It will also state that the cus-
tomer owns its proprietary drug
and all improvements to the drug
or the customerrsquos confidential infor-
mation developed by either or both
parties The development contract
also may state more generally that
the customer owns all inventions
improvements and IP rights related
to the customerrsquos drug With respect
to the CMO and its IP the develop-
ment contract may state that the
CMO owns all improvements to the
CMOrsquos manufacturing process and
to its other pre-existing intellectual
property Again this reservation is
not unreasonable The customer
however should determine whether
it requires access to those improve-
ments or inventions to complete the
development and commercialization
of its drug If such access is necessary
the customer should either negotiate
a license (which may be royalty-free
or royalty-based depending on the
circumstances) to use such improve-
ments or inventions to develop and
commercialize the drug or the cus-
tomer should negotiate the terms
under which the CMO will continue
to use the improvements or inven-
tions to perform development work
andor manufacture the drug for the
customer
In the fee-for-service arrange-
ment the assignment and licensing
of IP rights in new inventions and
improvements is the key intellectual
property issue Intellectual property
considerations become much more
complicated when the biotechnol-
34 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Intellectual Property
ogy or pharmaceutical company
partners with a CMO in the devel-
opment of a new drug or product
where the parties share development
costs and profits from commercial-
ization of the drug or product
cmo as collaborator
Although not as common as the
fee-for-service arrangement a CMO
may partner with a biotechnology
or pharmaceutical company in the
development and commercialization
of a drug or product Generally both
parties are bringing pre-existing IP
to the collaboration such as a drug
from a biopharmaceutical com-
pany and proprietary drug delivery
technology from the CMO In this
scenario the CMO is taking a long-
term interest and often a part-own-
ership interest in the success of the
drug product
Instead of getting paid an hourly
rate or fixed fee for development
work on the drug product the CMO
may share the cost of development
work with the biotechnology or
pharmaceutical partner in exchange
for a share of the profits when the
drug or product is commercialized
Other costs involved in the develop-
ment and commercialization of the
drug or product that may be shared
include the cost of patent prosecu-
tion and the cost of patent litigation
if the drug product is challenged or
if it is misappropriated or infringed
To secure its interest in the profits
from commercialization of the drug
product the CMO may want to take
an ownership interest in the intel-
lectual property rights in the drug
product All of these issues must be
carefully addressed in the develop-
ment contract to avoid both finan-
cial and IP disputes
As with the fee-for-serv ice
arrangement the parties must
allocate ownership of intellectual
property rights pertaining to the
drug product to be commercialized
These rights include both pre-exist-
ing IP rights and new inventions
and improvements developed in
the course of the development con-
tract As with the fee-for-service
arrangement the parties typically
will retain rights to their respec-
tive pre-existing IP Intellectual
property rights to new inventions
and improvements however may
be shared by giving each party a
co-ownership interest in the intel-
lectual property Alternatively such
rights may be allocated by inventor-
ship with each party taking owner-
ship of developments that it invents
and with the parties jointly own-
ing jointly developed inventions
As another alternative the IP rights
may be allocated by subject matter
as in the fee-for-service arrangement
with each party owning improve-
ments and inventions related to its
pre-existing IP regardless of which
party invents those improvements
and inventions
Depending on how the pat-
ent applications are drafted the
IP rights may be ldquosliced and dicedrdquo
more finely One party for example
could own patent rights for a drug
product for one indication while the
other party owns patent rights for
the same drug product for another
indication Decisions about how
to allocate the IP rights should be
made in consultation with intel-
lectual property counsel and must
take into account the manner in
which the drug will be commercial-
ized If one party for example is
to commercialize the product in
North America and Europe and
the other party is to commercialize
the product in the rest of the world
then either the patent ownership
should be allocated by territory or
the development contract should
include exclusive cross-licenses of
each partyrsquos rights in all the intel-
lectual property necessary to com-
mercialize the product with the first
party having an exclusive license to
commercialize the product in North
America and Europe and the second
party having an exclusive license to
commercialize the product in the
rest of the world
If the parties are going to share
ownership of the IP related to the
drug product then the develop-
ment contract also should specify
which party is responsible for pros-
ecuting and maintaining patents
on the drug product Regardless of
which party is responsible for patent
prosecution and maintenance the
other party should be consulted and
involved in key decisions regard-
ing patent prosecution and main-
tenance Unless there are multiple
patents for different indications that
will be commercialized exclusively
by one party and unless each party
has exclusive rights to commercial-
ize the drug product in particular
geographic areas it generally makes
sense for one party to take the pri-
mary responsibility for patent pros-
ecution and maintenance globally
with the other party consulting and
sharing in the cost of the prosecu-
tion and maintenance in accordance
with the profit sharing The party
that is not responsible for prosecu-
tion and maintenance should have
a contractual right to approve patent
counsel and review and approve pat-
ent filings office action responses
and other communications with
patent registries before they are filed
or submitted so that the parties
agree on the proper prosecution and
maintenance strategy
Likewise the development con-
tract should allocate the rights and
responsibilities for asserting and
defending the patents pertaining to
the product in litigation Often these
rights and responsibilities are allo-
cated by territory according to com-
mercialization rights If one party
for example has the exclusive right
to commercialize the drug product
wwwbiopharminternationalcom June 2015 BioPharm International eBook 35
Outsourcing Resources Intellectual Property
in the US then that party would
have the first right and responsibil-
ity to assert the patents on the drug
product against potential infringers
and defend the patents on the drug
product against infringement claims
in the US Likewise if one party has
the exclusive right to commercial-
ize the drug product for a particular
indication then that party would
have the first right and responsibility
to assert or defend the patents per-
taining to the product with respect
to that indication Both scenarios
can present challenges First some
courts will not recognize an exclu-
sive licensee as having standing to
assert a patent That court might
only allow the owner of the patent
(and not the exclusive licensee) to
bring a lawsuit asserting the patent
It is crucial therefore that contrac-
tual provisions relating to patent liti-
gation require the party that owns
the patent to cooperate in any litiga-
tion and to join the suit as a party if
necessary
Another potential problem is that
any litigation that asserts the pat-
ent is likely to draw a counterclaim
that the patent is invalid thus put-
ting the patent itself at risk of invali-
dation While one party might be
threatened by a potential infringer
in a particular market or for a partic-
ular indication and therefore might
want to assert the patent against the
potential infringer the other party
might not want to put the patent at
risk as to other markets and other
indications For these reasons the
contractual provisions pertaining
to patent litigation must be care-
fully drafted in consultation with
intellectual property counsel who
understands standing issues and
the potential areas for dispute The
contractual provisions also should
include dispute resolution provi-
sions for situations when the parties
do not agree on whether a patent
should be asserted
Finally while the parties may
want and expect their relationship
to continue for the full term of the
patents and the development con-
tract the parties must carefully
consider the IP ramifications of an
early termination of the develop-
ment contract and the relationship
particularly if the development con-
tract is terminated for breach If the
parties are sharing in the ownership
commercialization and profits gen-
erated by the drug product devel-
oped by the collaboration then
all of that must be unwound upon
termination The development
contract should be as specific as
possible with respect to the effect of
various types of termination on the
intellectual property and contin-
ued commercialization of the drug
product In particular the parties
may agree that if the development
contract is terminated due to breach
by one party then that breaching
party must relinquish and transfer
all of its rights with respect to the
drug product to the other party to
allow the non-breaching party to
continue the commercialization of
the drug product post-termination
Whether the necessary rights are
assigned or licensed whether the
terminated party should receive a
royalty for the transfer or license of
those rights and what if any pre-
existing IP is licensed to enable the
non-breaching party to continue
commercializing the drug product
are all key factors for negotiation
The development contract should
also address other types of termi-
nation such as termination for
insolvency and termination with-
out cause (ie if one party decides
it no longer wants to commercial-
ize the drug product) In each case
the effect of termination on the IP
rights should be carefully analyzed
and a competent IP counsel should
carefully draft post-termination
assignments and licenses
conclusion
While IP lawyers are not equipped
with crystal balls they can be
extremely helpful in analyzing par-
ticular development commercializa-
tion and post-termination scenarios
all of which affect IP in a drug devel-
opment arrangement Contractual
provisions related to IP must be
carefully drafted to align with the
strategic business objectives of any
relationship and particularly one
whose purpose is the development
and commercialization of intellec-
tual property Without a clear con-
tract each collaborator is at risk of
losing important rights bp
Ad Index
AJINOMOTO ALTHEA 21
AVID BIOSERVICES INC 15
CYTOVANCE BIOLOGICS 27
EMERGENT BIOSOLUTIONS 13
EUROFINS LANCASTER LABORATORIES 7
SAFC BIOSCIENCES SIGMA ALDRICH 17
THERMO FISHER SCIENTIFIC 23
TOSOH BIOSCIENCE 11
WATERS CORP 3
Company Page
![Page 24: OUOURT NG I C RESOURCESfiles.pharmtech.com/alfresco_images/pharma/2019/03/08/... · 2019-07-22 · VIDEO INTERVIEW Biologics Development and Manufacturing Trends: Part I ... Media](https://reader034.vdocuments.us/reader034/viewer/2022050113/5f4aca886c0d6724390eb040/html5/thumbnails/24.jpg)
24 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources FillFinish
Cmos stAying
AheAd of the Curve
In the whitepaper on in-house
fillfinish operations for recom-
binant therapeutics (2) BioPlan
found relatively low average in-
house capacity utilization rates
for lyophilization (55) pre-filled
devices (58) and vialing (70)
This finding suggests that for fill
finish CMOs the real value isnrsquot
necessarily in providing additional
flexible capacity but rather in posi-
tioning themselves as providing
highly sophisticated and novel
technologies and expertise in fill
finish services Indeed CMOs are
expected to have state-of-the-art
equipment As Pekos notes ldquoCMOs
who implement flexible and inno-
vative technologies to make man-
ufacturing or development more
efficient faster compliant or more
economical all serve to make them
more attractive to customersrdquo
For CMOs that make use of
innovative fillfinish technologies
there appears to be a good deal
of demand Results from BioPlanrsquos
annual studies indicate that fill
finish services are among the most
widely and heavily outsourced
biomanufacturing activities today
and are also among the activities
that biomanufacturers are most
likely to outsource at significantly
higher levels in the future
Biomanufacturers and CMOs are
actively looking to their fillfin-
ish equipment suppliers and are
beginning to demand additional
new technologies innovation and
product development In 2014 for
example when the top areas that
biomanufacturers wanted their
suppliers to focus their develop-
ment efforts on were measured
fillfinish services topped the list
cited by 23 of biomanufacturers
Not only did that figure represent
a substantial increase from years
past (13 in 2011) but it was also
ahead of other services including
upstream and downstream process
development services
Fillfinish will continue
to be an area of
growth for CMOs
There are a number of areas in
which suppliers can add value to
fillfinish innovation according
to industry experts Jim Agalloco
president of Agalloco amp Associates
in Belle Mead NJ says ldquovendors of
equipment and components to fill
finish must continue their roles as
technology leaders Innovation in
this market has always been sup-
plier driven because the operating
firms do not have the necessary
expertise Collaboration between
equipment manufacturers and
component suppliers is essential
for implementation of new con-
tainer systems single-use dispos-
ables and other advancesrdquo
Ronald Malone senior principal
scientist at Novartis Vaccines says
ldquoBlow-fill-seal containerclosure
systems are beneficial for small-
volume parenterals However over-
all cost may still be higher per unit
than traditional vialstopper fill-
ing Vaccines and biologicals can
benefit from single-dose disposable
systems that drive down the cost
of the containerclosure system
This will assist the global supply to
developing world countries where
these products are truly neededrdquo
W B W i e d e r s e i m o f
PharmaBioSource in Wayne PA
states ldquoWe see smaller higher
technical facilities inclusive of dis-
posables (isolators and not RABS)
and advanced aseptic work cell
technology as the wave of the
futurerdquo
WhAt does the future hold
BioPlanrsquos survey data and indus-
try interviews indicate that fill
f inish will continue to be an
area of growth for CMOs that
maintain the required technical
quality and regulatory expertise
in this segment Experts have
taken note of CMOsrsquo introduc-
tion of smaller filling machines
for syringes or vials a trend that
may be in response to the indus-
try-wide move towards smaller-
scale manufactur ing projects
This shift may be accelerated by
the advent of biosimilars which
should provide an increasing
number of projects for fillfin-
ish CMOs although likely on a
smaller scale This increase in
projects could lead to potential
mergers and acquisitions with
some experts noting that fillfin-
ish CMOs are already engaging
in this trend toward larger capac-
ity and global operations
Indeed within the past 18
months a number of acquisi-
tions have occurred including
Pfizerrsquos acquisitions of Hospira
a nd In noPha r ma Pat heonrsquos
mergers in the contract services
space IDT Biolog ika invest-
ments Vet ter invest ing USD
$100 million to upgrade fill-fin-
ish facilities in the United States
a nd Ger ma ny a nd Ba xte r rsquos
investment in German facilities
and numerous others (3)
For CMOs to stay ahead of the
curve they will likely need to
continue to adopt disposables
technologies and advance their
automation in full isolators Ray
Cardin of PharMax Consulting
says ldquoIncreased use of dispos-
able pre-sterilized f illing tech-
nologies [are future trends] The
combination of these pre-ster-
ilized units with the coming of
age of ster i le connectors that
provide high sterility assurance
wwwbiopharminternationalcom June 2015 BioPharm International eBook 25
Outsourcing Resources FillFinish
Biologics Development and Manufacturing Trends Part II
Eric Langer Managing Partner BioPlan Associates talks about the results from BioPlan AssociatesOtilde 12th Annual Report and Survey of Biopharmaceutical Manufacturing Capacity and Production Langer discusses what respondents indicated as the number one trend in biologics manufacturing improving efficiencies and the biosimilars market
in less clean environments is
changing the way aseptic pro-
cesses are designedrdquo
Gordon Leichter PhD Eastern
r e g io n a l s a l e s m a n a ge r a t
Belimed in Charleston SC states
ldquoAutomat ion in fu l l i solators
wil l el iminate operator inter-
vention and laser-sealed vials
Automation will become more
integral to building automation
and enterprise systemsrdquo
Douglas Stockdale vice-presi-
dent CMCTechnical Operations
Hi l lhurst Biopharmaceut ica ls
Los Angeles CA says ldquoIndustry
will continue pushing the PAT
[process analytical technology]
envelope to f ind a lternat ive
methods to improve in-process
methodologies and processesrdquo
Fe r ne ma n add s ldquoCu r r e nt
trends in fillfinish innovation
will probably focus the market
authorization holders on a few
strategic products resulting in
outsourcing of a bigger share of
products overallrdquo
ConClusion
Until recently the handling of
ster i le l iquids in the pharma-
ceutical industry has relied on
relatively consistent techniques
during the past 100 years with
relatively slow changes in tech-
nologies and regulations result-
ing in incremental improvements
in safety efficiency and prod-
uct quality During the past 20
years however costly biologics
have taken a prominent indus-
try role The value of these drugs
can often be measured in tens of
thousands per dose This has put
greater pressure on these down-
stream fillfinish operations to
ensure quality safety and cost-
efficiency are not compromised
at this crucial late stage in manu-
facturing Trends in fillfinish for
recombinant therapeutics include
the increased use of isolator
technologies more high-speed
operations and other innovative
approaches including single-use
processing As a result of industry
research BioPlan expects more
outsourcing of fillfinish opera-
tions in coming years
referenCes 1 BioPlan Associates 12th Annual
Report and Survey of Biopharmaceutical
Manufacturing Capacity and Production
(Rockville MD April 2015) www
bioplanassociatescom
2 BioPlan Associates Trends in Aseptic
Bioprocessing Capacity for the Fill and
Finish of Recombinant Biologics An
Analysis of US and European In-house
Capacity and Capacity Utilization (BioPlan
Associates December 2014)
3 Information derived from BioPlan
Associatesrsquo BioFacilities Newsletters Bp
26 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Cell Therapy
Taking a ldquoDevelopment-by-Designrdquo
Approach to Cell Therapies
Whether outsourcing or developing cell therapies in-house success demands a focus on quality cost of goods
and sustainability from the start
Agnes shAnley
Cell therapies both autologous and allo-
geneic have come a long way in just a
few years Countries around the world
most recently Japan have passed regula-
tions designed to speed development of
these treatments which are now a big and growing
global business
In 2013 according to the Pharmaceutical Research
and Manufacturers Association 69 cell therapies six
of them autologous or patient-specific treatments
were in clinical trials or being reviewed in the United
States alone 15 of them in Phase III trials (1)
The road is littered with failures however often
in clinical stages This has been traced to problems
with manufacturing and failure to understand pro-
cess requirements earlier in the development process
Table I outlines manufacturing issues
As a growing number of Big Pharma companies
explore the potential for immune regenerative and
other cell therapies equipment manufacturers includ-
Agnes shAnley is senior editor of BioPharm International
SC
IEP
RO
GE
tt
y Im
aG
ES
wwwcytovancecomResponsive Reliable Resourceful
Your partner in biopharmaceutical contract manufacturing of therapeutic proteins and antibodies from mammalian cell culture and microbial fermentation
28 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Cell Therapy
ing Pall Corp EMD Millipore
and GE Biosystems have set up
centers of excellence to focus on
developing equipment for this
new market Engineering compa-
nies such as Invetech and Instrom
are developing equipment specific
to this niche
More CDMos are entering
Cell therapy Market niChe
Demand for spec ia l i zed ce l l
t he rapy ma nu fac t u r ing a nd
development serv ices is a lso
growing and has attracted Lonza
Bioservices Cognate BioServices
WuXi AppTech and Roslin Cells
among others
NeoStem is fol low ing t wo
paths pursuing its own cel l
therapy pipel ine and explor-
ing contract services through
its contract development and
manufac t u r ing organ i zat ion
(CDMO) subsidiary Progenitor
Cell Therapy (PCT) With bases
in Irvine and Mountain View CA
and Allendale NJ PCT is cur-
rently working with Intrexon and
Fibrocell on connective tissue
treatments and with the United
K ingdomrsquos Adapt immune on
oncology treatments
A new CEO David Mazzo with
a doctorate in analytical chemis-
try and experience running both
private and public international
biopharma companies assumed
NeoStemrsquos leadership in January
He sees no conflict between grow-
ing a pipeline and a contract man-
ufacturing business
ldquoWe are not trying to be two
di f ferent companies and we
do not see the two competing
with each otherrdquo says Mazzo
in an interview with BioPharm
Inte rnat ionalrsquos s i ster publ ica-
tion Pharmaceutical Technology
during his second week on the
job ldquoInstead there is a symbi-
otic relationship between themrdquo
As he sees it the companyrsquos
track record in developing prod-
ucts should attract more spon-
sors ldquoProblems in development
usually occur at the interfaces
Our unique experience of having
lsquodone that beforersquo should be help-
fulrdquo he says
In January PCT entered a
partnership with Invetech an
equipment design firm based in
Australia with offices in San Diego
to develop automated equipment
for cell therapy manufacturing Fig
ur
e 1
is
co
ur
te
sy
oF
in
ve
te
ch
Figure 1 Part of an automated solution being developed by neostem and invetech Automating processes is key to reducing costs
wwwbiopharminternationalcom June 2015 BioPharm International eBook 29
Outsourcing Resources Cell Therapy
The two companies have already
been working together for a year
now honing the design and speci-
fications for the instrumentation
says NeoStemrsquos Chief Scientific
Officer (CSO) Robert Preti The
equipment will tackle cell therapyrsquos
most challenging side autologous
treatments where the manufactur-
ing lot is the patient dose adminis-
tered at the patientrsquos bedside
As Preti notes there really isnrsquot
much available today in the way
of automated equipment for cell
therapy especially on the autolo-
gous side The equipment will sep-
arate and wash cells among other
functions
labor-intensive
proCesses aDD Cost
So far Preti says the company
is evaluating the evolving equip-
ment in NeoStemrsquos own manu-
facturing efforts ldquoOne of the
largest commercial bottlenecks
is the heavy labor required by
processes especially for patient-
specific uses where one batch is
one patientrdquo
The cost of goods i s ver y
high Preti says ldquoSuccess long-
term will require a whole new
approach to development The
goal is to provide high qual-
ity and sustainabilityrdquo he says
Removing manual operat ions
and human error from the pro-
cess will be crucial
Invetech has been work ing
on cell therapy process scale-up
automation for more than 10
years and has successfully com-
pleted projects in North America
Europe and Asia for companies
that include Argos Therapeutics
Aa s t rom CCR M Hu mac y te
Innovacell Janssen kSep Systems
MolMed Organovo and ViaCyte
accord ing to R ichard Grant
global VP of the companyrsquos bio-
pharma operations who has been
with the company for more than
14 years
ldquoThe goal is to develop a mix
of equipment and manufactur-
ing st rateg ies that maximize
quality scalability and sustain-
ability with an eye toward cost-
effect iveness and commercial
viabilityrdquo Grant says Invetechrsquos
solutions typically tailor a mix of
OEM and customized equipment
to the clientrsquos processes The com-
pany recently commercialized
equipment used to manufacture
Janssenrsquos macular degeneration
treatment
Costs of current manufactur-
ing processes for both autologous
and allogeneic therapies are dif-
ficult to peg Last year experts
at University College London
attempted to pinpoint the cost and
overall economics of allogeneic
cell therapy using single-use tech-
nologies (2)
What is clear for both alloge-
neic and autologous systems is
that cell therapy development
Table I Manufacturing scenarios for cell therapies
Attributes Off-the-shelf therapiesPatient-specifc
therapies
Source material Always allogeneic Autologous or matched allogeneic
Batch size Many patients One patient
Business model Similar to pharmabiopharma New
Scaling Scale up (Increased lot size) Scale out (Increased number of lots)
Comparability vs scale Higher concern Lower concern
Manufacturing design drivers
Mission critical success + +++
Optimized process yield +++ +
Dimensional efficiency ++ +-
Integration +- ++
Automation + ++
source invetech
Table II Measuring comparability risk
Risk level Example Timing
None Automated sterility test Before biologics license application
Low Change in process unit op and cell journey is the same
Before 50 accrual in pivotal trials
Medium Change in process unit op and cell journey is similar
Before initiation of pivotal clinical trials
High Change in process unit op and the cell journey is matched
Some Phase II clinical data
source invetech
30 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Cell Therapy
and manufacturing costs are cur-
rently prohibitive ldquoThe starting
points can vary dramaticallyrdquo
Grant says He recalls one cus-
tomer whose autologous process
ran to $80000 per patient in early
stage clinical trials Automation
he says could reduce costs by
40ndash90 depending on the ther-
apy involved
DevelopMent by Design
But before one can automate any
process one must understand it
NeoStem and PCT like a growing
number of companies are taking
the principle of quality by design
(QbD) to heart in their work
Mazzo arguably one of few
life-science company CEOs to
even articulate the QbD concept
explains that the company has
gone a step further and broadened
the International Conference on
Harmonization guidances adopted
by FDA into ldquodevelopment by
designrdquo (DbD)
ldquoWe say first consider the end-
point then take process as is and
understand its unit operations
Develop inputs and outputs and
discrete steps and define the pro-
cess in a way that promotes under-
standingrdquo he says
ldquoThis is challenging given prod-
uct complexity but there is a need
to understand the mechanism of
action very well so you put each
process in this overall envelope
of DbD and consider the cost of
goods scalability and sustainabil-
ityrdquo Preti adds ldquoYou consider the
process from the end only this
time each batch is an individual
patientrdquo
The critical part is defining and
measuring process needs he says
ldquoProduct definition is very impor-
tant particularly the quality target
product profilerdquo explains Brian
Hampson VP of manufacturing
development and engineering at
PCT in an Oct 22 2014 webcast
for the International Society for
Cell Therapy (3)
have the enD in MinD
Such t h ings a s for mulat ion
issues dosage potency impu-
rities residuals and microbial
assurance need to be thought out
clearly from the start Hampson
says as well as indications for
use geographic market projec-
tions cost-of-goods targets and
IP issues
The profile needs to be a liv-
ing document that changes as the
product takes shape Hampson
says There is a tendency for peo-
ple in the industry to ignore the
product profile until they have
all the answers says Hampson
ldquoInstead it needs to be developed
really early even when you donrsquot
have all or even many of the
answers hellip you can leave them
as blanks and continue to review
add to and updaterdquo
The result is not only a tool for
better understanding the prod-
uct process and mechanism of
action but a communication tool
for stakeholders
When to start DbD for cell ther-
apies ldquoThe temptation is to begin
later in the game when you need
reasonable COGS and you need
to be sure of sustainable manu-
facturingrdquo says Hampson ldquoThe
key thing is comparability and
anticipating its implications early
in the clinical program It needs
to be flexible at the early stagesrdquo
Hampson says ldquoBut as you near
Phase III you need to lock in your
equipment evolves
In the bioreactor area there is great interest in moving from 2-D to 3-D processing to enable the processing of the cell volumes required something that companies such as Israelrsquos Pluristem have been doing for some time
Equipment designer Instrom is partnering with companies including BRTI Life Sciences to focus on 3-D cell matrix technologies developed by Dr John Brekke EMD Millipore has been partnering with PharmaCell BV to use its Mobius bioreactor platform to expand and harvest HepRG cells GE Sciences is also evaluating Wave and other systems and set up a center of excellence in Wales recently
In other equipment areas Pall Corp has been partnering with CMDG LLC on cord blood processing technology Following are some of the equipment manufacturers and systems applied in cell therapy development and manufacturing
bull Beckman Coulter bull Corning Cell Stacks and Cell Cube
bull EMD Millipore bull GE Biosciences
bull Thermo Scientificrsquos Nunc Cell Factories bull Pall Corp
wwwbiopharminternationalcom June 2015 BioPharm International eBook 31
Outsourcing Resources Cell Therapy
processrdquo Table II summarizes issues
and points where changes will be
easier
Thus Hampson suggests that
companies whether work ing
with CDMOs or in house think
through such issues as cost of
goods scale and sustainabil-
ity much earlier than they typi-
cally do today ldquoYou donrsquot need to
spend money on these issues but
you do need to think about themrdquo
Hampson says ldquoQuality must be
a key issue even at Phase II trials
and early action pays off laterrdquo
In addition he suggests that
companies th ink about the
e nt i r e p r o c e s s c o mp r e he n -
sively ldquoThere is often a tendency
to focus on the core processing
stepsrdquo Hampson says ldquoBut you
really need to think about every-
thing from collection of mate-
rial through to administration
of product to the patient and all
steps in betweenrdquo
For ce l l therapies d ispos -
able equipment and closed pro-
cesses can be an effective way to
reduce costs and improve quality
and compliance ldquoThey can allow
you to isolate different processes
so that they can share a Class
100000 cleanroom environmentrdquo
Hampson says
ldquoInvesting in automated informa-
tion management can also pay offrdquo
he says ldquowhere an electronic batch
record system that is fully validated
can enable release-by-exception
reducing error documentation
time and overall quality assurance
costsrdquo Hampson says
In addition he notes it is
important to look at costs compre-
hensively an increase in one cost
can for example reduce overhead
improve process sustainability and
cost of goods Table III outlines the
issues
regulations evolve
Cell therapy is still a new area
for regulators and as Preti says
some guidelines are clear and oth-
ers arenrsquot ldquoDevelopment by design
is needed throughout the pro-
cess but the piece we still struggle
with the most is mode of action
(MOA) and product characteriza-
tion Regulatory agencies under-
stand that it is difficult to pinpoint
MOArdquo
Preti emphasizes the importance
of working with regulators ldquoYou
can be in a position to inform and
influence regulations as products
are developedrdquo he says
For any company moving into
this brave new world top-level ques-
tions are needed Preti says empha-
sizing the following ldquoDo you have
an understanding of scale Can you
scale up from very small Can you
characterize the process and control
it for reliability and qualityrdquo
In the stem cell area in particu-
lar this is crucial Preti said since
the product relies heavily on the
process ldquoManufacturing can be
thought of as patient administra-
tion It cannot be separated in
the same way that it can for tra-
ditional medicinesrdquo For contract
suppliers he adds demonstrated
success will be important and
sponsors should consider whether
a prospective partner will be able
to stay with them for the long run
referenCes 1 P Hourd et al Regulatory Challenges
for the Manufacture and Scale-
Out of Autologous Cell Therapies
Massachusetts General Hospital
(Cambridge MA 2013)
2 S Farid et al Biotechnol Bioeng
111(1) 69-83 (January 2014)
3 R Grant Building Deliverable Cell
Therapeutics A Methodical Approach
to Manufacturing Development
(Webinar Oct 22 2014) bp
source invetech
Justifcation driversChange in cost
doseDevelopment
estimate
Unit Op Ref
Change decription
Comparability risk
Quality COGs Scale Sustainability LaborMaterials outplant
Cost Time
P-2 Process change 1 Medium X X darr $ $$$ TT
P-3 Process change 2 High X X X darr $$$ $$$$ TTT
P-4 Process change 3 Low X X darr $$ $$ TTT
P-2 Process change 4 Low X $$ T
QC-4 In-house QC test None X TT
QA-1Electronic Batch
RecordNone X X X
darr $$$$
TTTT
Table III Process changes timing and comparability risks cogs is cost of goods Qc is quality control
32 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Intellectual Property
Protecting Intellectual Property
in Engagements with CMOs
Important IP contractual provisions should be included when working with CMOs
Jennifer L CoLLins
Biotechnology and pharmaceutical companies
often engage contract CMOs to assist with
the development of their drugs This type
of arrangement naturally involves the devel-
opment of intellectual property (IP) so it is
important for both the CMO and the sponsor to iden-
tify pre-existing intellectual property and also define
how rights to new IP will be allocated protected and
enforced by and between the companies
If the arrangement with the CMO is a traditional fee-
for-service arrangement where the company pays the
CMO service fees to perform development work on its
behalf then generally all new IP (other than improve-
ments to the CMOrsquos manufacturing technology) will be
owned by the biotechnology or pharmaceutical com-
pany that engaged the CMO On the other hand if the
arrangement between the CMO and the biotechnology
or pharmaceutical company is more of a collaborative
arrangement where both parties share the costs of devel-
opment as well as any profits from the commercializa-
tion then IP concerns become much more complicated
In that case in addition to describing which party will
Jennifer L CoLLins is a technology and licensing attorney with Morningstar Law Group jcollinsmorningstarlawgroupcom
Fa
na
tic S
tud
ioG
ett
y Im
ag
es
wwwbiopharminternationalcom June 2015 BioPharm International eBook 33
Outsourcing Resources Intellectual Property
own the new IP the contract should
sort out which party will be respon-
sible for obtaining and maintaining
patents on the new IP controlling
litigation against infringers and
defending the IP against challenges
In addition the parties should agree
upfront on how the IP may be used
by each party following various ter-
mination events so that the parties
are not left fighting about such mat-
ters at a time when they may not be
inclined to agree to anything
In both arrangements without
specific contractual provisions to
define and protect the new IP a
biotechnology company or phar-
maceutical company that uses a
CMO for development is at risk of
losing control of and possibly own-
ership of important improvements
to its drugs This article discusses
IP contractual provisions that
should be included in each type of
arrangement
Fee-For-service
development work
Traditionally CMOs perform fee-for-
service development work where
a biotechnology or pharmaceutical
company engages the CMO to per-
form this work for a fixed fee In this
type of arrangement the CMO is a
service provider and typically takes
no ownership interest in the drug or
product that is being developed or
in improvements to an existing drug
or product that is being tested or
developed The contract governing
the relationship nevertheless must
be clear about the IP rights that are
owned and licensed by each party
If the contract does not provide
for proper assignments of IP to the
biotechnology or pharmaceutical
company then it is likely that the
CMO will own any improvements
or other inventions that it develops
in the performance of the develop-
ment services even if that is not the
intent of the parties
Without signed written contracts
that state otherwise under United
States patent law the inventor of
a patentable invention or improve-
ment will own the invention or
improvement even if the inventor
is engaged to develop the invention
or the improvement for a customer
or other third party To ensure
that the biotechnology company or
pharmaceutical company obtains
all the patent and other IP rights
in developments inventions and
improvements created in the per-
formance of services by the CMO
the governing contract between the
biotechnology company or phar-
maceutical company and the CMO
must include written present assign-
ments of those IP rights from the
CMO to the company Indeed based
on recent cases it is crucial that the
assignment clause in the contract
be a ldquopresentrdquo assignment mean-
ing that it must state specifically
that the CMO ldquohereby assignshelliprdquo
rather than a clause stating that the
CMO ldquoagrees to assignrdquo rights in the
future Otherwise the contract will
be interpreted as a promise to assign
rights in the future and the bio
pharmaceutical company will have
to go back to the CMO at some later
point in time for a separate writ-
ten assignment of rights to obtain
all patent and other IP rights in the
developments
While it sounds logical and
straightforward that the CMO
would assign all inventions created
in the development work to its cus-
tomer it is not always that simple
in practice What if the CMO devel-
ops an improvement to its manu-
facturing process in the course of
the development work Most CMOs
will want to reserve ownership of
any improvements to the CMOrsquos
existing IP and confidential infor-
mation This position is not unrea-
sonable as long as the customer
ultimately has the rights it needs in
all new inventions including those
owned by the CMO to take the drug
forward through further develop-
ment and commercialization One
must sort out IP allocation by sub-
ject matter To achieve this allo-
cation the development contract
typically will state that each party
retains ownership of all IP that it
owns as of the date of the contract
(all pre-existing intellectual prop-
erty) It will also state that the cus-
tomer owns its proprietary drug
and all improvements to the drug
or the customerrsquos confidential infor-
mation developed by either or both
parties The development contract
also may state more generally that
the customer owns all inventions
improvements and IP rights related
to the customerrsquos drug With respect
to the CMO and its IP the develop-
ment contract may state that the
CMO owns all improvements to the
CMOrsquos manufacturing process and
to its other pre-existing intellectual
property Again this reservation is
not unreasonable The customer
however should determine whether
it requires access to those improve-
ments or inventions to complete the
development and commercialization
of its drug If such access is necessary
the customer should either negotiate
a license (which may be royalty-free
or royalty-based depending on the
circumstances) to use such improve-
ments or inventions to develop and
commercialize the drug or the cus-
tomer should negotiate the terms
under which the CMO will continue
to use the improvements or inven-
tions to perform development work
andor manufacture the drug for the
customer
In the fee-for-service arrange-
ment the assignment and licensing
of IP rights in new inventions and
improvements is the key intellectual
property issue Intellectual property
considerations become much more
complicated when the biotechnol-
34 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Intellectual Property
ogy or pharmaceutical company
partners with a CMO in the devel-
opment of a new drug or product
where the parties share development
costs and profits from commercial-
ization of the drug or product
cmo as collaborator
Although not as common as the
fee-for-service arrangement a CMO
may partner with a biotechnology
or pharmaceutical company in the
development and commercialization
of a drug or product Generally both
parties are bringing pre-existing IP
to the collaboration such as a drug
from a biopharmaceutical com-
pany and proprietary drug delivery
technology from the CMO In this
scenario the CMO is taking a long-
term interest and often a part-own-
ership interest in the success of the
drug product
Instead of getting paid an hourly
rate or fixed fee for development
work on the drug product the CMO
may share the cost of development
work with the biotechnology or
pharmaceutical partner in exchange
for a share of the profits when the
drug or product is commercialized
Other costs involved in the develop-
ment and commercialization of the
drug or product that may be shared
include the cost of patent prosecu-
tion and the cost of patent litigation
if the drug product is challenged or
if it is misappropriated or infringed
To secure its interest in the profits
from commercialization of the drug
product the CMO may want to take
an ownership interest in the intel-
lectual property rights in the drug
product All of these issues must be
carefully addressed in the develop-
ment contract to avoid both finan-
cial and IP disputes
As with the fee-for-serv ice
arrangement the parties must
allocate ownership of intellectual
property rights pertaining to the
drug product to be commercialized
These rights include both pre-exist-
ing IP rights and new inventions
and improvements developed in
the course of the development con-
tract As with the fee-for-service
arrangement the parties typically
will retain rights to their respec-
tive pre-existing IP Intellectual
property rights to new inventions
and improvements however may
be shared by giving each party a
co-ownership interest in the intel-
lectual property Alternatively such
rights may be allocated by inventor-
ship with each party taking owner-
ship of developments that it invents
and with the parties jointly own-
ing jointly developed inventions
As another alternative the IP rights
may be allocated by subject matter
as in the fee-for-service arrangement
with each party owning improve-
ments and inventions related to its
pre-existing IP regardless of which
party invents those improvements
and inventions
Depending on how the pat-
ent applications are drafted the
IP rights may be ldquosliced and dicedrdquo
more finely One party for example
could own patent rights for a drug
product for one indication while the
other party owns patent rights for
the same drug product for another
indication Decisions about how
to allocate the IP rights should be
made in consultation with intel-
lectual property counsel and must
take into account the manner in
which the drug will be commercial-
ized If one party for example is
to commercialize the product in
North America and Europe and
the other party is to commercialize
the product in the rest of the world
then either the patent ownership
should be allocated by territory or
the development contract should
include exclusive cross-licenses of
each partyrsquos rights in all the intel-
lectual property necessary to com-
mercialize the product with the first
party having an exclusive license to
commercialize the product in North
America and Europe and the second
party having an exclusive license to
commercialize the product in the
rest of the world
If the parties are going to share
ownership of the IP related to the
drug product then the develop-
ment contract also should specify
which party is responsible for pros-
ecuting and maintaining patents
on the drug product Regardless of
which party is responsible for patent
prosecution and maintenance the
other party should be consulted and
involved in key decisions regard-
ing patent prosecution and main-
tenance Unless there are multiple
patents for different indications that
will be commercialized exclusively
by one party and unless each party
has exclusive rights to commercial-
ize the drug product in particular
geographic areas it generally makes
sense for one party to take the pri-
mary responsibility for patent pros-
ecution and maintenance globally
with the other party consulting and
sharing in the cost of the prosecu-
tion and maintenance in accordance
with the profit sharing The party
that is not responsible for prosecu-
tion and maintenance should have
a contractual right to approve patent
counsel and review and approve pat-
ent filings office action responses
and other communications with
patent registries before they are filed
or submitted so that the parties
agree on the proper prosecution and
maintenance strategy
Likewise the development con-
tract should allocate the rights and
responsibilities for asserting and
defending the patents pertaining to
the product in litigation Often these
rights and responsibilities are allo-
cated by territory according to com-
mercialization rights If one party
for example has the exclusive right
to commercialize the drug product
wwwbiopharminternationalcom June 2015 BioPharm International eBook 35
Outsourcing Resources Intellectual Property
in the US then that party would
have the first right and responsibil-
ity to assert the patents on the drug
product against potential infringers
and defend the patents on the drug
product against infringement claims
in the US Likewise if one party has
the exclusive right to commercial-
ize the drug product for a particular
indication then that party would
have the first right and responsibility
to assert or defend the patents per-
taining to the product with respect
to that indication Both scenarios
can present challenges First some
courts will not recognize an exclu-
sive licensee as having standing to
assert a patent That court might
only allow the owner of the patent
(and not the exclusive licensee) to
bring a lawsuit asserting the patent
It is crucial therefore that contrac-
tual provisions relating to patent liti-
gation require the party that owns
the patent to cooperate in any litiga-
tion and to join the suit as a party if
necessary
Another potential problem is that
any litigation that asserts the pat-
ent is likely to draw a counterclaim
that the patent is invalid thus put-
ting the patent itself at risk of invali-
dation While one party might be
threatened by a potential infringer
in a particular market or for a partic-
ular indication and therefore might
want to assert the patent against the
potential infringer the other party
might not want to put the patent at
risk as to other markets and other
indications For these reasons the
contractual provisions pertaining
to patent litigation must be care-
fully drafted in consultation with
intellectual property counsel who
understands standing issues and
the potential areas for dispute The
contractual provisions also should
include dispute resolution provi-
sions for situations when the parties
do not agree on whether a patent
should be asserted
Finally while the parties may
want and expect their relationship
to continue for the full term of the
patents and the development con-
tract the parties must carefully
consider the IP ramifications of an
early termination of the develop-
ment contract and the relationship
particularly if the development con-
tract is terminated for breach If the
parties are sharing in the ownership
commercialization and profits gen-
erated by the drug product devel-
oped by the collaboration then
all of that must be unwound upon
termination The development
contract should be as specific as
possible with respect to the effect of
various types of termination on the
intellectual property and contin-
ued commercialization of the drug
product In particular the parties
may agree that if the development
contract is terminated due to breach
by one party then that breaching
party must relinquish and transfer
all of its rights with respect to the
drug product to the other party to
allow the non-breaching party to
continue the commercialization of
the drug product post-termination
Whether the necessary rights are
assigned or licensed whether the
terminated party should receive a
royalty for the transfer or license of
those rights and what if any pre-
existing IP is licensed to enable the
non-breaching party to continue
commercializing the drug product
are all key factors for negotiation
The development contract should
also address other types of termi-
nation such as termination for
insolvency and termination with-
out cause (ie if one party decides
it no longer wants to commercial-
ize the drug product) In each case
the effect of termination on the IP
rights should be carefully analyzed
and a competent IP counsel should
carefully draft post-termination
assignments and licenses
conclusion
While IP lawyers are not equipped
with crystal balls they can be
extremely helpful in analyzing par-
ticular development commercializa-
tion and post-termination scenarios
all of which affect IP in a drug devel-
opment arrangement Contractual
provisions related to IP must be
carefully drafted to align with the
strategic business objectives of any
relationship and particularly one
whose purpose is the development
and commercialization of intellec-
tual property Without a clear con-
tract each collaborator is at risk of
losing important rights bp
Ad Index
AJINOMOTO ALTHEA 21
AVID BIOSERVICES INC 15
CYTOVANCE BIOLOGICS 27
EMERGENT BIOSOLUTIONS 13
EUROFINS LANCASTER LABORATORIES 7
SAFC BIOSCIENCES SIGMA ALDRICH 17
THERMO FISHER SCIENTIFIC 23
TOSOH BIOSCIENCE 11
WATERS CORP 3
Company Page
![Page 25: OUOURT NG I C RESOURCESfiles.pharmtech.com/alfresco_images/pharma/2019/03/08/... · 2019-07-22 · VIDEO INTERVIEW Biologics Development and Manufacturing Trends: Part I ... Media](https://reader034.vdocuments.us/reader034/viewer/2022050113/5f4aca886c0d6724390eb040/html5/thumbnails/25.jpg)
wwwbiopharminternationalcom June 2015 BioPharm International eBook 25
Outsourcing Resources FillFinish
Biologics Development and Manufacturing Trends Part II
Eric Langer Managing Partner BioPlan Associates talks about the results from BioPlan AssociatesOtilde 12th Annual Report and Survey of Biopharmaceutical Manufacturing Capacity and Production Langer discusses what respondents indicated as the number one trend in biologics manufacturing improving efficiencies and the biosimilars market
in less clean environments is
changing the way aseptic pro-
cesses are designedrdquo
Gordon Leichter PhD Eastern
r e g io n a l s a l e s m a n a ge r a t
Belimed in Charleston SC states
ldquoAutomat ion in fu l l i solators
wil l el iminate operator inter-
vention and laser-sealed vials
Automation will become more
integral to building automation
and enterprise systemsrdquo
Douglas Stockdale vice-presi-
dent CMCTechnical Operations
Hi l lhurst Biopharmaceut ica ls
Los Angeles CA says ldquoIndustry
will continue pushing the PAT
[process analytical technology]
envelope to f ind a lternat ive
methods to improve in-process
methodologies and processesrdquo
Fe r ne ma n add s ldquoCu r r e nt
trends in fillfinish innovation
will probably focus the market
authorization holders on a few
strategic products resulting in
outsourcing of a bigger share of
products overallrdquo
ConClusion
Until recently the handling of
ster i le l iquids in the pharma-
ceutical industry has relied on
relatively consistent techniques
during the past 100 years with
relatively slow changes in tech-
nologies and regulations result-
ing in incremental improvements
in safety efficiency and prod-
uct quality During the past 20
years however costly biologics
have taken a prominent indus-
try role The value of these drugs
can often be measured in tens of
thousands per dose This has put
greater pressure on these down-
stream fillfinish operations to
ensure quality safety and cost-
efficiency are not compromised
at this crucial late stage in manu-
facturing Trends in fillfinish for
recombinant therapeutics include
the increased use of isolator
technologies more high-speed
operations and other innovative
approaches including single-use
processing As a result of industry
research BioPlan expects more
outsourcing of fillfinish opera-
tions in coming years
referenCes 1 BioPlan Associates 12th Annual
Report and Survey of Biopharmaceutical
Manufacturing Capacity and Production
(Rockville MD April 2015) www
bioplanassociatescom
2 BioPlan Associates Trends in Aseptic
Bioprocessing Capacity for the Fill and
Finish of Recombinant Biologics An
Analysis of US and European In-house
Capacity and Capacity Utilization (BioPlan
Associates December 2014)
3 Information derived from BioPlan
Associatesrsquo BioFacilities Newsletters Bp
26 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Cell Therapy
Taking a ldquoDevelopment-by-Designrdquo
Approach to Cell Therapies
Whether outsourcing or developing cell therapies in-house success demands a focus on quality cost of goods
and sustainability from the start
Agnes shAnley
Cell therapies both autologous and allo-
geneic have come a long way in just a
few years Countries around the world
most recently Japan have passed regula-
tions designed to speed development of
these treatments which are now a big and growing
global business
In 2013 according to the Pharmaceutical Research
and Manufacturers Association 69 cell therapies six
of them autologous or patient-specific treatments
were in clinical trials or being reviewed in the United
States alone 15 of them in Phase III trials (1)
The road is littered with failures however often
in clinical stages This has been traced to problems
with manufacturing and failure to understand pro-
cess requirements earlier in the development process
Table I outlines manufacturing issues
As a growing number of Big Pharma companies
explore the potential for immune regenerative and
other cell therapies equipment manufacturers includ-
Agnes shAnley is senior editor of BioPharm International
SC
IEP
RO
GE
tt
y Im
aG
ES
wwwcytovancecomResponsive Reliable Resourceful
Your partner in biopharmaceutical contract manufacturing of therapeutic proteins and antibodies from mammalian cell culture and microbial fermentation
28 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Cell Therapy
ing Pall Corp EMD Millipore
and GE Biosystems have set up
centers of excellence to focus on
developing equipment for this
new market Engineering compa-
nies such as Invetech and Instrom
are developing equipment specific
to this niche
More CDMos are entering
Cell therapy Market niChe
Demand for spec ia l i zed ce l l
t he rapy ma nu fac t u r ing a nd
development serv ices is a lso
growing and has attracted Lonza
Bioservices Cognate BioServices
WuXi AppTech and Roslin Cells
among others
NeoStem is fol low ing t wo
paths pursuing its own cel l
therapy pipel ine and explor-
ing contract services through
its contract development and
manufac t u r ing organ i zat ion
(CDMO) subsidiary Progenitor
Cell Therapy (PCT) With bases
in Irvine and Mountain View CA
and Allendale NJ PCT is cur-
rently working with Intrexon and
Fibrocell on connective tissue
treatments and with the United
K ingdomrsquos Adapt immune on
oncology treatments
A new CEO David Mazzo with
a doctorate in analytical chemis-
try and experience running both
private and public international
biopharma companies assumed
NeoStemrsquos leadership in January
He sees no conflict between grow-
ing a pipeline and a contract man-
ufacturing business
ldquoWe are not trying to be two
di f ferent companies and we
do not see the two competing
with each otherrdquo says Mazzo
in an interview with BioPharm
Inte rnat ionalrsquos s i ster publ ica-
tion Pharmaceutical Technology
during his second week on the
job ldquoInstead there is a symbi-
otic relationship between themrdquo
As he sees it the companyrsquos
track record in developing prod-
ucts should attract more spon-
sors ldquoProblems in development
usually occur at the interfaces
Our unique experience of having
lsquodone that beforersquo should be help-
fulrdquo he says
In January PCT entered a
partnership with Invetech an
equipment design firm based in
Australia with offices in San Diego
to develop automated equipment
for cell therapy manufacturing Fig
ur
e 1
is
co
ur
te
sy
oF
in
ve
te
ch
Figure 1 Part of an automated solution being developed by neostem and invetech Automating processes is key to reducing costs
wwwbiopharminternationalcom June 2015 BioPharm International eBook 29
Outsourcing Resources Cell Therapy
The two companies have already
been working together for a year
now honing the design and speci-
fications for the instrumentation
says NeoStemrsquos Chief Scientific
Officer (CSO) Robert Preti The
equipment will tackle cell therapyrsquos
most challenging side autologous
treatments where the manufactur-
ing lot is the patient dose adminis-
tered at the patientrsquos bedside
As Preti notes there really isnrsquot
much available today in the way
of automated equipment for cell
therapy especially on the autolo-
gous side The equipment will sep-
arate and wash cells among other
functions
labor-intensive
proCesses aDD Cost
So far Preti says the company
is evaluating the evolving equip-
ment in NeoStemrsquos own manu-
facturing efforts ldquoOne of the
largest commercial bottlenecks
is the heavy labor required by
processes especially for patient-
specific uses where one batch is
one patientrdquo
The cost of goods i s ver y
high Preti says ldquoSuccess long-
term will require a whole new
approach to development The
goal is to provide high qual-
ity and sustainabilityrdquo he says
Removing manual operat ions
and human error from the pro-
cess will be crucial
Invetech has been work ing
on cell therapy process scale-up
automation for more than 10
years and has successfully com-
pleted projects in North America
Europe and Asia for companies
that include Argos Therapeutics
Aa s t rom CCR M Hu mac y te
Innovacell Janssen kSep Systems
MolMed Organovo and ViaCyte
accord ing to R ichard Grant
global VP of the companyrsquos bio-
pharma operations who has been
with the company for more than
14 years
ldquoThe goal is to develop a mix
of equipment and manufactur-
ing st rateg ies that maximize
quality scalability and sustain-
ability with an eye toward cost-
effect iveness and commercial
viabilityrdquo Grant says Invetechrsquos
solutions typically tailor a mix of
OEM and customized equipment
to the clientrsquos processes The com-
pany recently commercialized
equipment used to manufacture
Janssenrsquos macular degeneration
treatment
Costs of current manufactur-
ing processes for both autologous
and allogeneic therapies are dif-
ficult to peg Last year experts
at University College London
attempted to pinpoint the cost and
overall economics of allogeneic
cell therapy using single-use tech-
nologies (2)
What is clear for both alloge-
neic and autologous systems is
that cell therapy development
Table I Manufacturing scenarios for cell therapies
Attributes Off-the-shelf therapiesPatient-specifc
therapies
Source material Always allogeneic Autologous or matched allogeneic
Batch size Many patients One patient
Business model Similar to pharmabiopharma New
Scaling Scale up (Increased lot size) Scale out (Increased number of lots)
Comparability vs scale Higher concern Lower concern
Manufacturing design drivers
Mission critical success + +++
Optimized process yield +++ +
Dimensional efficiency ++ +-
Integration +- ++
Automation + ++
source invetech
Table II Measuring comparability risk
Risk level Example Timing
None Automated sterility test Before biologics license application
Low Change in process unit op and cell journey is the same
Before 50 accrual in pivotal trials
Medium Change in process unit op and cell journey is similar
Before initiation of pivotal clinical trials
High Change in process unit op and the cell journey is matched
Some Phase II clinical data
source invetech
30 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Cell Therapy
and manufacturing costs are cur-
rently prohibitive ldquoThe starting
points can vary dramaticallyrdquo
Grant says He recalls one cus-
tomer whose autologous process
ran to $80000 per patient in early
stage clinical trials Automation
he says could reduce costs by
40ndash90 depending on the ther-
apy involved
DevelopMent by Design
But before one can automate any
process one must understand it
NeoStem and PCT like a growing
number of companies are taking
the principle of quality by design
(QbD) to heart in their work
Mazzo arguably one of few
life-science company CEOs to
even articulate the QbD concept
explains that the company has
gone a step further and broadened
the International Conference on
Harmonization guidances adopted
by FDA into ldquodevelopment by
designrdquo (DbD)
ldquoWe say first consider the end-
point then take process as is and
understand its unit operations
Develop inputs and outputs and
discrete steps and define the pro-
cess in a way that promotes under-
standingrdquo he says
ldquoThis is challenging given prod-
uct complexity but there is a need
to understand the mechanism of
action very well so you put each
process in this overall envelope
of DbD and consider the cost of
goods scalability and sustainabil-
ityrdquo Preti adds ldquoYou consider the
process from the end only this
time each batch is an individual
patientrdquo
The critical part is defining and
measuring process needs he says
ldquoProduct definition is very impor-
tant particularly the quality target
product profilerdquo explains Brian
Hampson VP of manufacturing
development and engineering at
PCT in an Oct 22 2014 webcast
for the International Society for
Cell Therapy (3)
have the enD in MinD
Such t h ings a s for mulat ion
issues dosage potency impu-
rities residuals and microbial
assurance need to be thought out
clearly from the start Hampson
says as well as indications for
use geographic market projec-
tions cost-of-goods targets and
IP issues
The profile needs to be a liv-
ing document that changes as the
product takes shape Hampson
says There is a tendency for peo-
ple in the industry to ignore the
product profile until they have
all the answers says Hampson
ldquoInstead it needs to be developed
really early even when you donrsquot
have all or even many of the
answers hellip you can leave them
as blanks and continue to review
add to and updaterdquo
The result is not only a tool for
better understanding the prod-
uct process and mechanism of
action but a communication tool
for stakeholders
When to start DbD for cell ther-
apies ldquoThe temptation is to begin
later in the game when you need
reasonable COGS and you need
to be sure of sustainable manu-
facturingrdquo says Hampson ldquoThe
key thing is comparability and
anticipating its implications early
in the clinical program It needs
to be flexible at the early stagesrdquo
Hampson says ldquoBut as you near
Phase III you need to lock in your
equipment evolves
In the bioreactor area there is great interest in moving from 2-D to 3-D processing to enable the processing of the cell volumes required something that companies such as Israelrsquos Pluristem have been doing for some time
Equipment designer Instrom is partnering with companies including BRTI Life Sciences to focus on 3-D cell matrix technologies developed by Dr John Brekke EMD Millipore has been partnering with PharmaCell BV to use its Mobius bioreactor platform to expand and harvest HepRG cells GE Sciences is also evaluating Wave and other systems and set up a center of excellence in Wales recently
In other equipment areas Pall Corp has been partnering with CMDG LLC on cord blood processing technology Following are some of the equipment manufacturers and systems applied in cell therapy development and manufacturing
bull Beckman Coulter bull Corning Cell Stacks and Cell Cube
bull EMD Millipore bull GE Biosciences
bull Thermo Scientificrsquos Nunc Cell Factories bull Pall Corp
wwwbiopharminternationalcom June 2015 BioPharm International eBook 31
Outsourcing Resources Cell Therapy
processrdquo Table II summarizes issues
and points where changes will be
easier
Thus Hampson suggests that
companies whether work ing
with CDMOs or in house think
through such issues as cost of
goods scale and sustainabil-
ity much earlier than they typi-
cally do today ldquoYou donrsquot need to
spend money on these issues but
you do need to think about themrdquo
Hampson says ldquoQuality must be
a key issue even at Phase II trials
and early action pays off laterrdquo
In addition he suggests that
companies th ink about the
e nt i r e p r o c e s s c o mp r e he n -
sively ldquoThere is often a tendency
to focus on the core processing
stepsrdquo Hampson says ldquoBut you
really need to think about every-
thing from collection of mate-
rial through to administration
of product to the patient and all
steps in betweenrdquo
For ce l l therapies d ispos -
able equipment and closed pro-
cesses can be an effective way to
reduce costs and improve quality
and compliance ldquoThey can allow
you to isolate different processes
so that they can share a Class
100000 cleanroom environmentrdquo
Hampson says
ldquoInvesting in automated informa-
tion management can also pay offrdquo
he says ldquowhere an electronic batch
record system that is fully validated
can enable release-by-exception
reducing error documentation
time and overall quality assurance
costsrdquo Hampson says
In addition he notes it is
important to look at costs compre-
hensively an increase in one cost
can for example reduce overhead
improve process sustainability and
cost of goods Table III outlines the
issues
regulations evolve
Cell therapy is still a new area
for regulators and as Preti says
some guidelines are clear and oth-
ers arenrsquot ldquoDevelopment by design
is needed throughout the pro-
cess but the piece we still struggle
with the most is mode of action
(MOA) and product characteriza-
tion Regulatory agencies under-
stand that it is difficult to pinpoint
MOArdquo
Preti emphasizes the importance
of working with regulators ldquoYou
can be in a position to inform and
influence regulations as products
are developedrdquo he says
For any company moving into
this brave new world top-level ques-
tions are needed Preti says empha-
sizing the following ldquoDo you have
an understanding of scale Can you
scale up from very small Can you
characterize the process and control
it for reliability and qualityrdquo
In the stem cell area in particu-
lar this is crucial Preti said since
the product relies heavily on the
process ldquoManufacturing can be
thought of as patient administra-
tion It cannot be separated in
the same way that it can for tra-
ditional medicinesrdquo For contract
suppliers he adds demonstrated
success will be important and
sponsors should consider whether
a prospective partner will be able
to stay with them for the long run
referenCes 1 P Hourd et al Regulatory Challenges
for the Manufacture and Scale-
Out of Autologous Cell Therapies
Massachusetts General Hospital
(Cambridge MA 2013)
2 S Farid et al Biotechnol Bioeng
111(1) 69-83 (January 2014)
3 R Grant Building Deliverable Cell
Therapeutics A Methodical Approach
to Manufacturing Development
(Webinar Oct 22 2014) bp
source invetech
Justifcation driversChange in cost
doseDevelopment
estimate
Unit Op Ref
Change decription
Comparability risk
Quality COGs Scale Sustainability LaborMaterials outplant
Cost Time
P-2 Process change 1 Medium X X darr $ $$$ TT
P-3 Process change 2 High X X X darr $$$ $$$$ TTT
P-4 Process change 3 Low X X darr $$ $$ TTT
P-2 Process change 4 Low X $$ T
QC-4 In-house QC test None X TT
QA-1Electronic Batch
RecordNone X X X
darr $$$$
TTTT
Table III Process changes timing and comparability risks cogs is cost of goods Qc is quality control
32 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Intellectual Property
Protecting Intellectual Property
in Engagements with CMOs
Important IP contractual provisions should be included when working with CMOs
Jennifer L CoLLins
Biotechnology and pharmaceutical companies
often engage contract CMOs to assist with
the development of their drugs This type
of arrangement naturally involves the devel-
opment of intellectual property (IP) so it is
important for both the CMO and the sponsor to iden-
tify pre-existing intellectual property and also define
how rights to new IP will be allocated protected and
enforced by and between the companies
If the arrangement with the CMO is a traditional fee-
for-service arrangement where the company pays the
CMO service fees to perform development work on its
behalf then generally all new IP (other than improve-
ments to the CMOrsquos manufacturing technology) will be
owned by the biotechnology or pharmaceutical com-
pany that engaged the CMO On the other hand if the
arrangement between the CMO and the biotechnology
or pharmaceutical company is more of a collaborative
arrangement where both parties share the costs of devel-
opment as well as any profits from the commercializa-
tion then IP concerns become much more complicated
In that case in addition to describing which party will
Jennifer L CoLLins is a technology and licensing attorney with Morningstar Law Group jcollinsmorningstarlawgroupcom
Fa
na
tic S
tud
ioG
ett
y Im
ag
es
wwwbiopharminternationalcom June 2015 BioPharm International eBook 33
Outsourcing Resources Intellectual Property
own the new IP the contract should
sort out which party will be respon-
sible for obtaining and maintaining
patents on the new IP controlling
litigation against infringers and
defending the IP against challenges
In addition the parties should agree
upfront on how the IP may be used
by each party following various ter-
mination events so that the parties
are not left fighting about such mat-
ters at a time when they may not be
inclined to agree to anything
In both arrangements without
specific contractual provisions to
define and protect the new IP a
biotechnology company or phar-
maceutical company that uses a
CMO for development is at risk of
losing control of and possibly own-
ership of important improvements
to its drugs This article discusses
IP contractual provisions that
should be included in each type of
arrangement
Fee-For-service
development work
Traditionally CMOs perform fee-for-
service development work where
a biotechnology or pharmaceutical
company engages the CMO to per-
form this work for a fixed fee In this
type of arrangement the CMO is a
service provider and typically takes
no ownership interest in the drug or
product that is being developed or
in improvements to an existing drug
or product that is being tested or
developed The contract governing
the relationship nevertheless must
be clear about the IP rights that are
owned and licensed by each party
If the contract does not provide
for proper assignments of IP to the
biotechnology or pharmaceutical
company then it is likely that the
CMO will own any improvements
or other inventions that it develops
in the performance of the develop-
ment services even if that is not the
intent of the parties
Without signed written contracts
that state otherwise under United
States patent law the inventor of
a patentable invention or improve-
ment will own the invention or
improvement even if the inventor
is engaged to develop the invention
or the improvement for a customer
or other third party To ensure
that the biotechnology company or
pharmaceutical company obtains
all the patent and other IP rights
in developments inventions and
improvements created in the per-
formance of services by the CMO
the governing contract between the
biotechnology company or phar-
maceutical company and the CMO
must include written present assign-
ments of those IP rights from the
CMO to the company Indeed based
on recent cases it is crucial that the
assignment clause in the contract
be a ldquopresentrdquo assignment mean-
ing that it must state specifically
that the CMO ldquohereby assignshelliprdquo
rather than a clause stating that the
CMO ldquoagrees to assignrdquo rights in the
future Otherwise the contract will
be interpreted as a promise to assign
rights in the future and the bio
pharmaceutical company will have
to go back to the CMO at some later
point in time for a separate writ-
ten assignment of rights to obtain
all patent and other IP rights in the
developments
While it sounds logical and
straightforward that the CMO
would assign all inventions created
in the development work to its cus-
tomer it is not always that simple
in practice What if the CMO devel-
ops an improvement to its manu-
facturing process in the course of
the development work Most CMOs
will want to reserve ownership of
any improvements to the CMOrsquos
existing IP and confidential infor-
mation This position is not unrea-
sonable as long as the customer
ultimately has the rights it needs in
all new inventions including those
owned by the CMO to take the drug
forward through further develop-
ment and commercialization One
must sort out IP allocation by sub-
ject matter To achieve this allo-
cation the development contract
typically will state that each party
retains ownership of all IP that it
owns as of the date of the contract
(all pre-existing intellectual prop-
erty) It will also state that the cus-
tomer owns its proprietary drug
and all improvements to the drug
or the customerrsquos confidential infor-
mation developed by either or both
parties The development contract
also may state more generally that
the customer owns all inventions
improvements and IP rights related
to the customerrsquos drug With respect
to the CMO and its IP the develop-
ment contract may state that the
CMO owns all improvements to the
CMOrsquos manufacturing process and
to its other pre-existing intellectual
property Again this reservation is
not unreasonable The customer
however should determine whether
it requires access to those improve-
ments or inventions to complete the
development and commercialization
of its drug If such access is necessary
the customer should either negotiate
a license (which may be royalty-free
or royalty-based depending on the
circumstances) to use such improve-
ments or inventions to develop and
commercialize the drug or the cus-
tomer should negotiate the terms
under which the CMO will continue
to use the improvements or inven-
tions to perform development work
andor manufacture the drug for the
customer
In the fee-for-service arrange-
ment the assignment and licensing
of IP rights in new inventions and
improvements is the key intellectual
property issue Intellectual property
considerations become much more
complicated when the biotechnol-
34 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Intellectual Property
ogy or pharmaceutical company
partners with a CMO in the devel-
opment of a new drug or product
where the parties share development
costs and profits from commercial-
ization of the drug or product
cmo as collaborator
Although not as common as the
fee-for-service arrangement a CMO
may partner with a biotechnology
or pharmaceutical company in the
development and commercialization
of a drug or product Generally both
parties are bringing pre-existing IP
to the collaboration such as a drug
from a biopharmaceutical com-
pany and proprietary drug delivery
technology from the CMO In this
scenario the CMO is taking a long-
term interest and often a part-own-
ership interest in the success of the
drug product
Instead of getting paid an hourly
rate or fixed fee for development
work on the drug product the CMO
may share the cost of development
work with the biotechnology or
pharmaceutical partner in exchange
for a share of the profits when the
drug or product is commercialized
Other costs involved in the develop-
ment and commercialization of the
drug or product that may be shared
include the cost of patent prosecu-
tion and the cost of patent litigation
if the drug product is challenged or
if it is misappropriated or infringed
To secure its interest in the profits
from commercialization of the drug
product the CMO may want to take
an ownership interest in the intel-
lectual property rights in the drug
product All of these issues must be
carefully addressed in the develop-
ment contract to avoid both finan-
cial and IP disputes
As with the fee-for-serv ice
arrangement the parties must
allocate ownership of intellectual
property rights pertaining to the
drug product to be commercialized
These rights include both pre-exist-
ing IP rights and new inventions
and improvements developed in
the course of the development con-
tract As with the fee-for-service
arrangement the parties typically
will retain rights to their respec-
tive pre-existing IP Intellectual
property rights to new inventions
and improvements however may
be shared by giving each party a
co-ownership interest in the intel-
lectual property Alternatively such
rights may be allocated by inventor-
ship with each party taking owner-
ship of developments that it invents
and with the parties jointly own-
ing jointly developed inventions
As another alternative the IP rights
may be allocated by subject matter
as in the fee-for-service arrangement
with each party owning improve-
ments and inventions related to its
pre-existing IP regardless of which
party invents those improvements
and inventions
Depending on how the pat-
ent applications are drafted the
IP rights may be ldquosliced and dicedrdquo
more finely One party for example
could own patent rights for a drug
product for one indication while the
other party owns patent rights for
the same drug product for another
indication Decisions about how
to allocate the IP rights should be
made in consultation with intel-
lectual property counsel and must
take into account the manner in
which the drug will be commercial-
ized If one party for example is
to commercialize the product in
North America and Europe and
the other party is to commercialize
the product in the rest of the world
then either the patent ownership
should be allocated by territory or
the development contract should
include exclusive cross-licenses of
each partyrsquos rights in all the intel-
lectual property necessary to com-
mercialize the product with the first
party having an exclusive license to
commercialize the product in North
America and Europe and the second
party having an exclusive license to
commercialize the product in the
rest of the world
If the parties are going to share
ownership of the IP related to the
drug product then the develop-
ment contract also should specify
which party is responsible for pros-
ecuting and maintaining patents
on the drug product Regardless of
which party is responsible for patent
prosecution and maintenance the
other party should be consulted and
involved in key decisions regard-
ing patent prosecution and main-
tenance Unless there are multiple
patents for different indications that
will be commercialized exclusively
by one party and unless each party
has exclusive rights to commercial-
ize the drug product in particular
geographic areas it generally makes
sense for one party to take the pri-
mary responsibility for patent pros-
ecution and maintenance globally
with the other party consulting and
sharing in the cost of the prosecu-
tion and maintenance in accordance
with the profit sharing The party
that is not responsible for prosecu-
tion and maintenance should have
a contractual right to approve patent
counsel and review and approve pat-
ent filings office action responses
and other communications with
patent registries before they are filed
or submitted so that the parties
agree on the proper prosecution and
maintenance strategy
Likewise the development con-
tract should allocate the rights and
responsibilities for asserting and
defending the patents pertaining to
the product in litigation Often these
rights and responsibilities are allo-
cated by territory according to com-
mercialization rights If one party
for example has the exclusive right
to commercialize the drug product
wwwbiopharminternationalcom June 2015 BioPharm International eBook 35
Outsourcing Resources Intellectual Property
in the US then that party would
have the first right and responsibil-
ity to assert the patents on the drug
product against potential infringers
and defend the patents on the drug
product against infringement claims
in the US Likewise if one party has
the exclusive right to commercial-
ize the drug product for a particular
indication then that party would
have the first right and responsibility
to assert or defend the patents per-
taining to the product with respect
to that indication Both scenarios
can present challenges First some
courts will not recognize an exclu-
sive licensee as having standing to
assert a patent That court might
only allow the owner of the patent
(and not the exclusive licensee) to
bring a lawsuit asserting the patent
It is crucial therefore that contrac-
tual provisions relating to patent liti-
gation require the party that owns
the patent to cooperate in any litiga-
tion and to join the suit as a party if
necessary
Another potential problem is that
any litigation that asserts the pat-
ent is likely to draw a counterclaim
that the patent is invalid thus put-
ting the patent itself at risk of invali-
dation While one party might be
threatened by a potential infringer
in a particular market or for a partic-
ular indication and therefore might
want to assert the patent against the
potential infringer the other party
might not want to put the patent at
risk as to other markets and other
indications For these reasons the
contractual provisions pertaining
to patent litigation must be care-
fully drafted in consultation with
intellectual property counsel who
understands standing issues and
the potential areas for dispute The
contractual provisions also should
include dispute resolution provi-
sions for situations when the parties
do not agree on whether a patent
should be asserted
Finally while the parties may
want and expect their relationship
to continue for the full term of the
patents and the development con-
tract the parties must carefully
consider the IP ramifications of an
early termination of the develop-
ment contract and the relationship
particularly if the development con-
tract is terminated for breach If the
parties are sharing in the ownership
commercialization and profits gen-
erated by the drug product devel-
oped by the collaboration then
all of that must be unwound upon
termination The development
contract should be as specific as
possible with respect to the effect of
various types of termination on the
intellectual property and contin-
ued commercialization of the drug
product In particular the parties
may agree that if the development
contract is terminated due to breach
by one party then that breaching
party must relinquish and transfer
all of its rights with respect to the
drug product to the other party to
allow the non-breaching party to
continue the commercialization of
the drug product post-termination
Whether the necessary rights are
assigned or licensed whether the
terminated party should receive a
royalty for the transfer or license of
those rights and what if any pre-
existing IP is licensed to enable the
non-breaching party to continue
commercializing the drug product
are all key factors for negotiation
The development contract should
also address other types of termi-
nation such as termination for
insolvency and termination with-
out cause (ie if one party decides
it no longer wants to commercial-
ize the drug product) In each case
the effect of termination on the IP
rights should be carefully analyzed
and a competent IP counsel should
carefully draft post-termination
assignments and licenses
conclusion
While IP lawyers are not equipped
with crystal balls they can be
extremely helpful in analyzing par-
ticular development commercializa-
tion and post-termination scenarios
all of which affect IP in a drug devel-
opment arrangement Contractual
provisions related to IP must be
carefully drafted to align with the
strategic business objectives of any
relationship and particularly one
whose purpose is the development
and commercialization of intellec-
tual property Without a clear con-
tract each collaborator is at risk of
losing important rights bp
Ad Index
AJINOMOTO ALTHEA 21
AVID BIOSERVICES INC 15
CYTOVANCE BIOLOGICS 27
EMERGENT BIOSOLUTIONS 13
EUROFINS LANCASTER LABORATORIES 7
SAFC BIOSCIENCES SIGMA ALDRICH 17
THERMO FISHER SCIENTIFIC 23
TOSOH BIOSCIENCE 11
WATERS CORP 3
Company Page
![Page 26: OUOURT NG I C RESOURCESfiles.pharmtech.com/alfresco_images/pharma/2019/03/08/... · 2019-07-22 · VIDEO INTERVIEW Biologics Development and Manufacturing Trends: Part I ... Media](https://reader034.vdocuments.us/reader034/viewer/2022050113/5f4aca886c0d6724390eb040/html5/thumbnails/26.jpg)
26 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Cell Therapy
Taking a ldquoDevelopment-by-Designrdquo
Approach to Cell Therapies
Whether outsourcing or developing cell therapies in-house success demands a focus on quality cost of goods
and sustainability from the start
Agnes shAnley
Cell therapies both autologous and allo-
geneic have come a long way in just a
few years Countries around the world
most recently Japan have passed regula-
tions designed to speed development of
these treatments which are now a big and growing
global business
In 2013 according to the Pharmaceutical Research
and Manufacturers Association 69 cell therapies six
of them autologous or patient-specific treatments
were in clinical trials or being reviewed in the United
States alone 15 of them in Phase III trials (1)
The road is littered with failures however often
in clinical stages This has been traced to problems
with manufacturing and failure to understand pro-
cess requirements earlier in the development process
Table I outlines manufacturing issues
As a growing number of Big Pharma companies
explore the potential for immune regenerative and
other cell therapies equipment manufacturers includ-
Agnes shAnley is senior editor of BioPharm International
SC
IEP
RO
GE
tt
y Im
aG
ES
wwwcytovancecomResponsive Reliable Resourceful
Your partner in biopharmaceutical contract manufacturing of therapeutic proteins and antibodies from mammalian cell culture and microbial fermentation
28 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Cell Therapy
ing Pall Corp EMD Millipore
and GE Biosystems have set up
centers of excellence to focus on
developing equipment for this
new market Engineering compa-
nies such as Invetech and Instrom
are developing equipment specific
to this niche
More CDMos are entering
Cell therapy Market niChe
Demand for spec ia l i zed ce l l
t he rapy ma nu fac t u r ing a nd
development serv ices is a lso
growing and has attracted Lonza
Bioservices Cognate BioServices
WuXi AppTech and Roslin Cells
among others
NeoStem is fol low ing t wo
paths pursuing its own cel l
therapy pipel ine and explor-
ing contract services through
its contract development and
manufac t u r ing organ i zat ion
(CDMO) subsidiary Progenitor
Cell Therapy (PCT) With bases
in Irvine and Mountain View CA
and Allendale NJ PCT is cur-
rently working with Intrexon and
Fibrocell on connective tissue
treatments and with the United
K ingdomrsquos Adapt immune on
oncology treatments
A new CEO David Mazzo with
a doctorate in analytical chemis-
try and experience running both
private and public international
biopharma companies assumed
NeoStemrsquos leadership in January
He sees no conflict between grow-
ing a pipeline and a contract man-
ufacturing business
ldquoWe are not trying to be two
di f ferent companies and we
do not see the two competing
with each otherrdquo says Mazzo
in an interview with BioPharm
Inte rnat ionalrsquos s i ster publ ica-
tion Pharmaceutical Technology
during his second week on the
job ldquoInstead there is a symbi-
otic relationship between themrdquo
As he sees it the companyrsquos
track record in developing prod-
ucts should attract more spon-
sors ldquoProblems in development
usually occur at the interfaces
Our unique experience of having
lsquodone that beforersquo should be help-
fulrdquo he says
In January PCT entered a
partnership with Invetech an
equipment design firm based in
Australia with offices in San Diego
to develop automated equipment
for cell therapy manufacturing Fig
ur
e 1
is
co
ur
te
sy
oF
in
ve
te
ch
Figure 1 Part of an automated solution being developed by neostem and invetech Automating processes is key to reducing costs
wwwbiopharminternationalcom June 2015 BioPharm International eBook 29
Outsourcing Resources Cell Therapy
The two companies have already
been working together for a year
now honing the design and speci-
fications for the instrumentation
says NeoStemrsquos Chief Scientific
Officer (CSO) Robert Preti The
equipment will tackle cell therapyrsquos
most challenging side autologous
treatments where the manufactur-
ing lot is the patient dose adminis-
tered at the patientrsquos bedside
As Preti notes there really isnrsquot
much available today in the way
of automated equipment for cell
therapy especially on the autolo-
gous side The equipment will sep-
arate and wash cells among other
functions
labor-intensive
proCesses aDD Cost
So far Preti says the company
is evaluating the evolving equip-
ment in NeoStemrsquos own manu-
facturing efforts ldquoOne of the
largest commercial bottlenecks
is the heavy labor required by
processes especially for patient-
specific uses where one batch is
one patientrdquo
The cost of goods i s ver y
high Preti says ldquoSuccess long-
term will require a whole new
approach to development The
goal is to provide high qual-
ity and sustainabilityrdquo he says
Removing manual operat ions
and human error from the pro-
cess will be crucial
Invetech has been work ing
on cell therapy process scale-up
automation for more than 10
years and has successfully com-
pleted projects in North America
Europe and Asia for companies
that include Argos Therapeutics
Aa s t rom CCR M Hu mac y te
Innovacell Janssen kSep Systems
MolMed Organovo and ViaCyte
accord ing to R ichard Grant
global VP of the companyrsquos bio-
pharma operations who has been
with the company for more than
14 years
ldquoThe goal is to develop a mix
of equipment and manufactur-
ing st rateg ies that maximize
quality scalability and sustain-
ability with an eye toward cost-
effect iveness and commercial
viabilityrdquo Grant says Invetechrsquos
solutions typically tailor a mix of
OEM and customized equipment
to the clientrsquos processes The com-
pany recently commercialized
equipment used to manufacture
Janssenrsquos macular degeneration
treatment
Costs of current manufactur-
ing processes for both autologous
and allogeneic therapies are dif-
ficult to peg Last year experts
at University College London
attempted to pinpoint the cost and
overall economics of allogeneic
cell therapy using single-use tech-
nologies (2)
What is clear for both alloge-
neic and autologous systems is
that cell therapy development
Table I Manufacturing scenarios for cell therapies
Attributes Off-the-shelf therapiesPatient-specifc
therapies
Source material Always allogeneic Autologous or matched allogeneic
Batch size Many patients One patient
Business model Similar to pharmabiopharma New
Scaling Scale up (Increased lot size) Scale out (Increased number of lots)
Comparability vs scale Higher concern Lower concern
Manufacturing design drivers
Mission critical success + +++
Optimized process yield +++ +
Dimensional efficiency ++ +-
Integration +- ++
Automation + ++
source invetech
Table II Measuring comparability risk
Risk level Example Timing
None Automated sterility test Before biologics license application
Low Change in process unit op and cell journey is the same
Before 50 accrual in pivotal trials
Medium Change in process unit op and cell journey is similar
Before initiation of pivotal clinical trials
High Change in process unit op and the cell journey is matched
Some Phase II clinical data
source invetech
30 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Cell Therapy
and manufacturing costs are cur-
rently prohibitive ldquoThe starting
points can vary dramaticallyrdquo
Grant says He recalls one cus-
tomer whose autologous process
ran to $80000 per patient in early
stage clinical trials Automation
he says could reduce costs by
40ndash90 depending on the ther-
apy involved
DevelopMent by Design
But before one can automate any
process one must understand it
NeoStem and PCT like a growing
number of companies are taking
the principle of quality by design
(QbD) to heart in their work
Mazzo arguably one of few
life-science company CEOs to
even articulate the QbD concept
explains that the company has
gone a step further and broadened
the International Conference on
Harmonization guidances adopted
by FDA into ldquodevelopment by
designrdquo (DbD)
ldquoWe say first consider the end-
point then take process as is and
understand its unit operations
Develop inputs and outputs and
discrete steps and define the pro-
cess in a way that promotes under-
standingrdquo he says
ldquoThis is challenging given prod-
uct complexity but there is a need
to understand the mechanism of
action very well so you put each
process in this overall envelope
of DbD and consider the cost of
goods scalability and sustainabil-
ityrdquo Preti adds ldquoYou consider the
process from the end only this
time each batch is an individual
patientrdquo
The critical part is defining and
measuring process needs he says
ldquoProduct definition is very impor-
tant particularly the quality target
product profilerdquo explains Brian
Hampson VP of manufacturing
development and engineering at
PCT in an Oct 22 2014 webcast
for the International Society for
Cell Therapy (3)
have the enD in MinD
Such t h ings a s for mulat ion
issues dosage potency impu-
rities residuals and microbial
assurance need to be thought out
clearly from the start Hampson
says as well as indications for
use geographic market projec-
tions cost-of-goods targets and
IP issues
The profile needs to be a liv-
ing document that changes as the
product takes shape Hampson
says There is a tendency for peo-
ple in the industry to ignore the
product profile until they have
all the answers says Hampson
ldquoInstead it needs to be developed
really early even when you donrsquot
have all or even many of the
answers hellip you can leave them
as blanks and continue to review
add to and updaterdquo
The result is not only a tool for
better understanding the prod-
uct process and mechanism of
action but a communication tool
for stakeholders
When to start DbD for cell ther-
apies ldquoThe temptation is to begin
later in the game when you need
reasonable COGS and you need
to be sure of sustainable manu-
facturingrdquo says Hampson ldquoThe
key thing is comparability and
anticipating its implications early
in the clinical program It needs
to be flexible at the early stagesrdquo
Hampson says ldquoBut as you near
Phase III you need to lock in your
equipment evolves
In the bioreactor area there is great interest in moving from 2-D to 3-D processing to enable the processing of the cell volumes required something that companies such as Israelrsquos Pluristem have been doing for some time
Equipment designer Instrom is partnering with companies including BRTI Life Sciences to focus on 3-D cell matrix technologies developed by Dr John Brekke EMD Millipore has been partnering with PharmaCell BV to use its Mobius bioreactor platform to expand and harvest HepRG cells GE Sciences is also evaluating Wave and other systems and set up a center of excellence in Wales recently
In other equipment areas Pall Corp has been partnering with CMDG LLC on cord blood processing technology Following are some of the equipment manufacturers and systems applied in cell therapy development and manufacturing
bull Beckman Coulter bull Corning Cell Stacks and Cell Cube
bull EMD Millipore bull GE Biosciences
bull Thermo Scientificrsquos Nunc Cell Factories bull Pall Corp
wwwbiopharminternationalcom June 2015 BioPharm International eBook 31
Outsourcing Resources Cell Therapy
processrdquo Table II summarizes issues
and points where changes will be
easier
Thus Hampson suggests that
companies whether work ing
with CDMOs or in house think
through such issues as cost of
goods scale and sustainabil-
ity much earlier than they typi-
cally do today ldquoYou donrsquot need to
spend money on these issues but
you do need to think about themrdquo
Hampson says ldquoQuality must be
a key issue even at Phase II trials
and early action pays off laterrdquo
In addition he suggests that
companies th ink about the
e nt i r e p r o c e s s c o mp r e he n -
sively ldquoThere is often a tendency
to focus on the core processing
stepsrdquo Hampson says ldquoBut you
really need to think about every-
thing from collection of mate-
rial through to administration
of product to the patient and all
steps in betweenrdquo
For ce l l therapies d ispos -
able equipment and closed pro-
cesses can be an effective way to
reduce costs and improve quality
and compliance ldquoThey can allow
you to isolate different processes
so that they can share a Class
100000 cleanroom environmentrdquo
Hampson says
ldquoInvesting in automated informa-
tion management can also pay offrdquo
he says ldquowhere an electronic batch
record system that is fully validated
can enable release-by-exception
reducing error documentation
time and overall quality assurance
costsrdquo Hampson says
In addition he notes it is
important to look at costs compre-
hensively an increase in one cost
can for example reduce overhead
improve process sustainability and
cost of goods Table III outlines the
issues
regulations evolve
Cell therapy is still a new area
for regulators and as Preti says
some guidelines are clear and oth-
ers arenrsquot ldquoDevelopment by design
is needed throughout the pro-
cess but the piece we still struggle
with the most is mode of action
(MOA) and product characteriza-
tion Regulatory agencies under-
stand that it is difficult to pinpoint
MOArdquo
Preti emphasizes the importance
of working with regulators ldquoYou
can be in a position to inform and
influence regulations as products
are developedrdquo he says
For any company moving into
this brave new world top-level ques-
tions are needed Preti says empha-
sizing the following ldquoDo you have
an understanding of scale Can you
scale up from very small Can you
characterize the process and control
it for reliability and qualityrdquo
In the stem cell area in particu-
lar this is crucial Preti said since
the product relies heavily on the
process ldquoManufacturing can be
thought of as patient administra-
tion It cannot be separated in
the same way that it can for tra-
ditional medicinesrdquo For contract
suppliers he adds demonstrated
success will be important and
sponsors should consider whether
a prospective partner will be able
to stay with them for the long run
referenCes 1 P Hourd et al Regulatory Challenges
for the Manufacture and Scale-
Out of Autologous Cell Therapies
Massachusetts General Hospital
(Cambridge MA 2013)
2 S Farid et al Biotechnol Bioeng
111(1) 69-83 (January 2014)
3 R Grant Building Deliverable Cell
Therapeutics A Methodical Approach
to Manufacturing Development
(Webinar Oct 22 2014) bp
source invetech
Justifcation driversChange in cost
doseDevelopment
estimate
Unit Op Ref
Change decription
Comparability risk
Quality COGs Scale Sustainability LaborMaterials outplant
Cost Time
P-2 Process change 1 Medium X X darr $ $$$ TT
P-3 Process change 2 High X X X darr $$$ $$$$ TTT
P-4 Process change 3 Low X X darr $$ $$ TTT
P-2 Process change 4 Low X $$ T
QC-4 In-house QC test None X TT
QA-1Electronic Batch
RecordNone X X X
darr $$$$
TTTT
Table III Process changes timing and comparability risks cogs is cost of goods Qc is quality control
32 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Intellectual Property
Protecting Intellectual Property
in Engagements with CMOs
Important IP contractual provisions should be included when working with CMOs
Jennifer L CoLLins
Biotechnology and pharmaceutical companies
often engage contract CMOs to assist with
the development of their drugs This type
of arrangement naturally involves the devel-
opment of intellectual property (IP) so it is
important for both the CMO and the sponsor to iden-
tify pre-existing intellectual property and also define
how rights to new IP will be allocated protected and
enforced by and between the companies
If the arrangement with the CMO is a traditional fee-
for-service arrangement where the company pays the
CMO service fees to perform development work on its
behalf then generally all new IP (other than improve-
ments to the CMOrsquos manufacturing technology) will be
owned by the biotechnology or pharmaceutical com-
pany that engaged the CMO On the other hand if the
arrangement between the CMO and the biotechnology
or pharmaceutical company is more of a collaborative
arrangement where both parties share the costs of devel-
opment as well as any profits from the commercializa-
tion then IP concerns become much more complicated
In that case in addition to describing which party will
Jennifer L CoLLins is a technology and licensing attorney with Morningstar Law Group jcollinsmorningstarlawgroupcom
Fa
na
tic S
tud
ioG
ett
y Im
ag
es
wwwbiopharminternationalcom June 2015 BioPharm International eBook 33
Outsourcing Resources Intellectual Property
own the new IP the contract should
sort out which party will be respon-
sible for obtaining and maintaining
patents on the new IP controlling
litigation against infringers and
defending the IP against challenges
In addition the parties should agree
upfront on how the IP may be used
by each party following various ter-
mination events so that the parties
are not left fighting about such mat-
ters at a time when they may not be
inclined to agree to anything
In both arrangements without
specific contractual provisions to
define and protect the new IP a
biotechnology company or phar-
maceutical company that uses a
CMO for development is at risk of
losing control of and possibly own-
ership of important improvements
to its drugs This article discusses
IP contractual provisions that
should be included in each type of
arrangement
Fee-For-service
development work
Traditionally CMOs perform fee-for-
service development work where
a biotechnology or pharmaceutical
company engages the CMO to per-
form this work for a fixed fee In this
type of arrangement the CMO is a
service provider and typically takes
no ownership interest in the drug or
product that is being developed or
in improvements to an existing drug
or product that is being tested or
developed The contract governing
the relationship nevertheless must
be clear about the IP rights that are
owned and licensed by each party
If the contract does not provide
for proper assignments of IP to the
biotechnology or pharmaceutical
company then it is likely that the
CMO will own any improvements
or other inventions that it develops
in the performance of the develop-
ment services even if that is not the
intent of the parties
Without signed written contracts
that state otherwise under United
States patent law the inventor of
a patentable invention or improve-
ment will own the invention or
improvement even if the inventor
is engaged to develop the invention
or the improvement for a customer
or other third party To ensure
that the biotechnology company or
pharmaceutical company obtains
all the patent and other IP rights
in developments inventions and
improvements created in the per-
formance of services by the CMO
the governing contract between the
biotechnology company or phar-
maceutical company and the CMO
must include written present assign-
ments of those IP rights from the
CMO to the company Indeed based
on recent cases it is crucial that the
assignment clause in the contract
be a ldquopresentrdquo assignment mean-
ing that it must state specifically
that the CMO ldquohereby assignshelliprdquo
rather than a clause stating that the
CMO ldquoagrees to assignrdquo rights in the
future Otherwise the contract will
be interpreted as a promise to assign
rights in the future and the bio
pharmaceutical company will have
to go back to the CMO at some later
point in time for a separate writ-
ten assignment of rights to obtain
all patent and other IP rights in the
developments
While it sounds logical and
straightforward that the CMO
would assign all inventions created
in the development work to its cus-
tomer it is not always that simple
in practice What if the CMO devel-
ops an improvement to its manu-
facturing process in the course of
the development work Most CMOs
will want to reserve ownership of
any improvements to the CMOrsquos
existing IP and confidential infor-
mation This position is not unrea-
sonable as long as the customer
ultimately has the rights it needs in
all new inventions including those
owned by the CMO to take the drug
forward through further develop-
ment and commercialization One
must sort out IP allocation by sub-
ject matter To achieve this allo-
cation the development contract
typically will state that each party
retains ownership of all IP that it
owns as of the date of the contract
(all pre-existing intellectual prop-
erty) It will also state that the cus-
tomer owns its proprietary drug
and all improvements to the drug
or the customerrsquos confidential infor-
mation developed by either or both
parties The development contract
also may state more generally that
the customer owns all inventions
improvements and IP rights related
to the customerrsquos drug With respect
to the CMO and its IP the develop-
ment contract may state that the
CMO owns all improvements to the
CMOrsquos manufacturing process and
to its other pre-existing intellectual
property Again this reservation is
not unreasonable The customer
however should determine whether
it requires access to those improve-
ments or inventions to complete the
development and commercialization
of its drug If such access is necessary
the customer should either negotiate
a license (which may be royalty-free
or royalty-based depending on the
circumstances) to use such improve-
ments or inventions to develop and
commercialize the drug or the cus-
tomer should negotiate the terms
under which the CMO will continue
to use the improvements or inven-
tions to perform development work
andor manufacture the drug for the
customer
In the fee-for-service arrange-
ment the assignment and licensing
of IP rights in new inventions and
improvements is the key intellectual
property issue Intellectual property
considerations become much more
complicated when the biotechnol-
34 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Intellectual Property
ogy or pharmaceutical company
partners with a CMO in the devel-
opment of a new drug or product
where the parties share development
costs and profits from commercial-
ization of the drug or product
cmo as collaborator
Although not as common as the
fee-for-service arrangement a CMO
may partner with a biotechnology
or pharmaceutical company in the
development and commercialization
of a drug or product Generally both
parties are bringing pre-existing IP
to the collaboration such as a drug
from a biopharmaceutical com-
pany and proprietary drug delivery
technology from the CMO In this
scenario the CMO is taking a long-
term interest and often a part-own-
ership interest in the success of the
drug product
Instead of getting paid an hourly
rate or fixed fee for development
work on the drug product the CMO
may share the cost of development
work with the biotechnology or
pharmaceutical partner in exchange
for a share of the profits when the
drug or product is commercialized
Other costs involved in the develop-
ment and commercialization of the
drug or product that may be shared
include the cost of patent prosecu-
tion and the cost of patent litigation
if the drug product is challenged or
if it is misappropriated or infringed
To secure its interest in the profits
from commercialization of the drug
product the CMO may want to take
an ownership interest in the intel-
lectual property rights in the drug
product All of these issues must be
carefully addressed in the develop-
ment contract to avoid both finan-
cial and IP disputes
As with the fee-for-serv ice
arrangement the parties must
allocate ownership of intellectual
property rights pertaining to the
drug product to be commercialized
These rights include both pre-exist-
ing IP rights and new inventions
and improvements developed in
the course of the development con-
tract As with the fee-for-service
arrangement the parties typically
will retain rights to their respec-
tive pre-existing IP Intellectual
property rights to new inventions
and improvements however may
be shared by giving each party a
co-ownership interest in the intel-
lectual property Alternatively such
rights may be allocated by inventor-
ship with each party taking owner-
ship of developments that it invents
and with the parties jointly own-
ing jointly developed inventions
As another alternative the IP rights
may be allocated by subject matter
as in the fee-for-service arrangement
with each party owning improve-
ments and inventions related to its
pre-existing IP regardless of which
party invents those improvements
and inventions
Depending on how the pat-
ent applications are drafted the
IP rights may be ldquosliced and dicedrdquo
more finely One party for example
could own patent rights for a drug
product for one indication while the
other party owns patent rights for
the same drug product for another
indication Decisions about how
to allocate the IP rights should be
made in consultation with intel-
lectual property counsel and must
take into account the manner in
which the drug will be commercial-
ized If one party for example is
to commercialize the product in
North America and Europe and
the other party is to commercialize
the product in the rest of the world
then either the patent ownership
should be allocated by territory or
the development contract should
include exclusive cross-licenses of
each partyrsquos rights in all the intel-
lectual property necessary to com-
mercialize the product with the first
party having an exclusive license to
commercialize the product in North
America and Europe and the second
party having an exclusive license to
commercialize the product in the
rest of the world
If the parties are going to share
ownership of the IP related to the
drug product then the develop-
ment contract also should specify
which party is responsible for pros-
ecuting and maintaining patents
on the drug product Regardless of
which party is responsible for patent
prosecution and maintenance the
other party should be consulted and
involved in key decisions regard-
ing patent prosecution and main-
tenance Unless there are multiple
patents for different indications that
will be commercialized exclusively
by one party and unless each party
has exclusive rights to commercial-
ize the drug product in particular
geographic areas it generally makes
sense for one party to take the pri-
mary responsibility for patent pros-
ecution and maintenance globally
with the other party consulting and
sharing in the cost of the prosecu-
tion and maintenance in accordance
with the profit sharing The party
that is not responsible for prosecu-
tion and maintenance should have
a contractual right to approve patent
counsel and review and approve pat-
ent filings office action responses
and other communications with
patent registries before they are filed
or submitted so that the parties
agree on the proper prosecution and
maintenance strategy
Likewise the development con-
tract should allocate the rights and
responsibilities for asserting and
defending the patents pertaining to
the product in litigation Often these
rights and responsibilities are allo-
cated by territory according to com-
mercialization rights If one party
for example has the exclusive right
to commercialize the drug product
wwwbiopharminternationalcom June 2015 BioPharm International eBook 35
Outsourcing Resources Intellectual Property
in the US then that party would
have the first right and responsibil-
ity to assert the patents on the drug
product against potential infringers
and defend the patents on the drug
product against infringement claims
in the US Likewise if one party has
the exclusive right to commercial-
ize the drug product for a particular
indication then that party would
have the first right and responsibility
to assert or defend the patents per-
taining to the product with respect
to that indication Both scenarios
can present challenges First some
courts will not recognize an exclu-
sive licensee as having standing to
assert a patent That court might
only allow the owner of the patent
(and not the exclusive licensee) to
bring a lawsuit asserting the patent
It is crucial therefore that contrac-
tual provisions relating to patent liti-
gation require the party that owns
the patent to cooperate in any litiga-
tion and to join the suit as a party if
necessary
Another potential problem is that
any litigation that asserts the pat-
ent is likely to draw a counterclaim
that the patent is invalid thus put-
ting the patent itself at risk of invali-
dation While one party might be
threatened by a potential infringer
in a particular market or for a partic-
ular indication and therefore might
want to assert the patent against the
potential infringer the other party
might not want to put the patent at
risk as to other markets and other
indications For these reasons the
contractual provisions pertaining
to patent litigation must be care-
fully drafted in consultation with
intellectual property counsel who
understands standing issues and
the potential areas for dispute The
contractual provisions also should
include dispute resolution provi-
sions for situations when the parties
do not agree on whether a patent
should be asserted
Finally while the parties may
want and expect their relationship
to continue for the full term of the
patents and the development con-
tract the parties must carefully
consider the IP ramifications of an
early termination of the develop-
ment contract and the relationship
particularly if the development con-
tract is terminated for breach If the
parties are sharing in the ownership
commercialization and profits gen-
erated by the drug product devel-
oped by the collaboration then
all of that must be unwound upon
termination The development
contract should be as specific as
possible with respect to the effect of
various types of termination on the
intellectual property and contin-
ued commercialization of the drug
product In particular the parties
may agree that if the development
contract is terminated due to breach
by one party then that breaching
party must relinquish and transfer
all of its rights with respect to the
drug product to the other party to
allow the non-breaching party to
continue the commercialization of
the drug product post-termination
Whether the necessary rights are
assigned or licensed whether the
terminated party should receive a
royalty for the transfer or license of
those rights and what if any pre-
existing IP is licensed to enable the
non-breaching party to continue
commercializing the drug product
are all key factors for negotiation
The development contract should
also address other types of termi-
nation such as termination for
insolvency and termination with-
out cause (ie if one party decides
it no longer wants to commercial-
ize the drug product) In each case
the effect of termination on the IP
rights should be carefully analyzed
and a competent IP counsel should
carefully draft post-termination
assignments and licenses
conclusion
While IP lawyers are not equipped
with crystal balls they can be
extremely helpful in analyzing par-
ticular development commercializa-
tion and post-termination scenarios
all of which affect IP in a drug devel-
opment arrangement Contractual
provisions related to IP must be
carefully drafted to align with the
strategic business objectives of any
relationship and particularly one
whose purpose is the development
and commercialization of intellec-
tual property Without a clear con-
tract each collaborator is at risk of
losing important rights bp
Ad Index
AJINOMOTO ALTHEA 21
AVID BIOSERVICES INC 15
CYTOVANCE BIOLOGICS 27
EMERGENT BIOSOLUTIONS 13
EUROFINS LANCASTER LABORATORIES 7
SAFC BIOSCIENCES SIGMA ALDRICH 17
THERMO FISHER SCIENTIFIC 23
TOSOH BIOSCIENCE 11
WATERS CORP 3
Company Page
![Page 27: OUOURT NG I C RESOURCESfiles.pharmtech.com/alfresco_images/pharma/2019/03/08/... · 2019-07-22 · VIDEO INTERVIEW Biologics Development and Manufacturing Trends: Part I ... Media](https://reader034.vdocuments.us/reader034/viewer/2022050113/5f4aca886c0d6724390eb040/html5/thumbnails/27.jpg)
wwwcytovancecomResponsive Reliable Resourceful
Your partner in biopharmaceutical contract manufacturing of therapeutic proteins and antibodies from mammalian cell culture and microbial fermentation
28 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Cell Therapy
ing Pall Corp EMD Millipore
and GE Biosystems have set up
centers of excellence to focus on
developing equipment for this
new market Engineering compa-
nies such as Invetech and Instrom
are developing equipment specific
to this niche
More CDMos are entering
Cell therapy Market niChe
Demand for spec ia l i zed ce l l
t he rapy ma nu fac t u r ing a nd
development serv ices is a lso
growing and has attracted Lonza
Bioservices Cognate BioServices
WuXi AppTech and Roslin Cells
among others
NeoStem is fol low ing t wo
paths pursuing its own cel l
therapy pipel ine and explor-
ing contract services through
its contract development and
manufac t u r ing organ i zat ion
(CDMO) subsidiary Progenitor
Cell Therapy (PCT) With bases
in Irvine and Mountain View CA
and Allendale NJ PCT is cur-
rently working with Intrexon and
Fibrocell on connective tissue
treatments and with the United
K ingdomrsquos Adapt immune on
oncology treatments
A new CEO David Mazzo with
a doctorate in analytical chemis-
try and experience running both
private and public international
biopharma companies assumed
NeoStemrsquos leadership in January
He sees no conflict between grow-
ing a pipeline and a contract man-
ufacturing business
ldquoWe are not trying to be two
di f ferent companies and we
do not see the two competing
with each otherrdquo says Mazzo
in an interview with BioPharm
Inte rnat ionalrsquos s i ster publ ica-
tion Pharmaceutical Technology
during his second week on the
job ldquoInstead there is a symbi-
otic relationship between themrdquo
As he sees it the companyrsquos
track record in developing prod-
ucts should attract more spon-
sors ldquoProblems in development
usually occur at the interfaces
Our unique experience of having
lsquodone that beforersquo should be help-
fulrdquo he says
In January PCT entered a
partnership with Invetech an
equipment design firm based in
Australia with offices in San Diego
to develop automated equipment
for cell therapy manufacturing Fig
ur
e 1
is
co
ur
te
sy
oF
in
ve
te
ch
Figure 1 Part of an automated solution being developed by neostem and invetech Automating processes is key to reducing costs
wwwbiopharminternationalcom June 2015 BioPharm International eBook 29
Outsourcing Resources Cell Therapy
The two companies have already
been working together for a year
now honing the design and speci-
fications for the instrumentation
says NeoStemrsquos Chief Scientific
Officer (CSO) Robert Preti The
equipment will tackle cell therapyrsquos
most challenging side autologous
treatments where the manufactur-
ing lot is the patient dose adminis-
tered at the patientrsquos bedside
As Preti notes there really isnrsquot
much available today in the way
of automated equipment for cell
therapy especially on the autolo-
gous side The equipment will sep-
arate and wash cells among other
functions
labor-intensive
proCesses aDD Cost
So far Preti says the company
is evaluating the evolving equip-
ment in NeoStemrsquos own manu-
facturing efforts ldquoOne of the
largest commercial bottlenecks
is the heavy labor required by
processes especially for patient-
specific uses where one batch is
one patientrdquo
The cost of goods i s ver y
high Preti says ldquoSuccess long-
term will require a whole new
approach to development The
goal is to provide high qual-
ity and sustainabilityrdquo he says
Removing manual operat ions
and human error from the pro-
cess will be crucial
Invetech has been work ing
on cell therapy process scale-up
automation for more than 10
years and has successfully com-
pleted projects in North America
Europe and Asia for companies
that include Argos Therapeutics
Aa s t rom CCR M Hu mac y te
Innovacell Janssen kSep Systems
MolMed Organovo and ViaCyte
accord ing to R ichard Grant
global VP of the companyrsquos bio-
pharma operations who has been
with the company for more than
14 years
ldquoThe goal is to develop a mix
of equipment and manufactur-
ing st rateg ies that maximize
quality scalability and sustain-
ability with an eye toward cost-
effect iveness and commercial
viabilityrdquo Grant says Invetechrsquos
solutions typically tailor a mix of
OEM and customized equipment
to the clientrsquos processes The com-
pany recently commercialized
equipment used to manufacture
Janssenrsquos macular degeneration
treatment
Costs of current manufactur-
ing processes for both autologous
and allogeneic therapies are dif-
ficult to peg Last year experts
at University College London
attempted to pinpoint the cost and
overall economics of allogeneic
cell therapy using single-use tech-
nologies (2)
What is clear for both alloge-
neic and autologous systems is
that cell therapy development
Table I Manufacturing scenarios for cell therapies
Attributes Off-the-shelf therapiesPatient-specifc
therapies
Source material Always allogeneic Autologous or matched allogeneic
Batch size Many patients One patient
Business model Similar to pharmabiopharma New
Scaling Scale up (Increased lot size) Scale out (Increased number of lots)
Comparability vs scale Higher concern Lower concern
Manufacturing design drivers
Mission critical success + +++
Optimized process yield +++ +
Dimensional efficiency ++ +-
Integration +- ++
Automation + ++
source invetech
Table II Measuring comparability risk
Risk level Example Timing
None Automated sterility test Before biologics license application
Low Change in process unit op and cell journey is the same
Before 50 accrual in pivotal trials
Medium Change in process unit op and cell journey is similar
Before initiation of pivotal clinical trials
High Change in process unit op and the cell journey is matched
Some Phase II clinical data
source invetech
30 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Cell Therapy
and manufacturing costs are cur-
rently prohibitive ldquoThe starting
points can vary dramaticallyrdquo
Grant says He recalls one cus-
tomer whose autologous process
ran to $80000 per patient in early
stage clinical trials Automation
he says could reduce costs by
40ndash90 depending on the ther-
apy involved
DevelopMent by Design
But before one can automate any
process one must understand it
NeoStem and PCT like a growing
number of companies are taking
the principle of quality by design
(QbD) to heart in their work
Mazzo arguably one of few
life-science company CEOs to
even articulate the QbD concept
explains that the company has
gone a step further and broadened
the International Conference on
Harmonization guidances adopted
by FDA into ldquodevelopment by
designrdquo (DbD)
ldquoWe say first consider the end-
point then take process as is and
understand its unit operations
Develop inputs and outputs and
discrete steps and define the pro-
cess in a way that promotes under-
standingrdquo he says
ldquoThis is challenging given prod-
uct complexity but there is a need
to understand the mechanism of
action very well so you put each
process in this overall envelope
of DbD and consider the cost of
goods scalability and sustainabil-
ityrdquo Preti adds ldquoYou consider the
process from the end only this
time each batch is an individual
patientrdquo
The critical part is defining and
measuring process needs he says
ldquoProduct definition is very impor-
tant particularly the quality target
product profilerdquo explains Brian
Hampson VP of manufacturing
development and engineering at
PCT in an Oct 22 2014 webcast
for the International Society for
Cell Therapy (3)
have the enD in MinD
Such t h ings a s for mulat ion
issues dosage potency impu-
rities residuals and microbial
assurance need to be thought out
clearly from the start Hampson
says as well as indications for
use geographic market projec-
tions cost-of-goods targets and
IP issues
The profile needs to be a liv-
ing document that changes as the
product takes shape Hampson
says There is a tendency for peo-
ple in the industry to ignore the
product profile until they have
all the answers says Hampson
ldquoInstead it needs to be developed
really early even when you donrsquot
have all or even many of the
answers hellip you can leave them
as blanks and continue to review
add to and updaterdquo
The result is not only a tool for
better understanding the prod-
uct process and mechanism of
action but a communication tool
for stakeholders
When to start DbD for cell ther-
apies ldquoThe temptation is to begin
later in the game when you need
reasonable COGS and you need
to be sure of sustainable manu-
facturingrdquo says Hampson ldquoThe
key thing is comparability and
anticipating its implications early
in the clinical program It needs
to be flexible at the early stagesrdquo
Hampson says ldquoBut as you near
Phase III you need to lock in your
equipment evolves
In the bioreactor area there is great interest in moving from 2-D to 3-D processing to enable the processing of the cell volumes required something that companies such as Israelrsquos Pluristem have been doing for some time
Equipment designer Instrom is partnering with companies including BRTI Life Sciences to focus on 3-D cell matrix technologies developed by Dr John Brekke EMD Millipore has been partnering with PharmaCell BV to use its Mobius bioreactor platform to expand and harvest HepRG cells GE Sciences is also evaluating Wave and other systems and set up a center of excellence in Wales recently
In other equipment areas Pall Corp has been partnering with CMDG LLC on cord blood processing technology Following are some of the equipment manufacturers and systems applied in cell therapy development and manufacturing
bull Beckman Coulter bull Corning Cell Stacks and Cell Cube
bull EMD Millipore bull GE Biosciences
bull Thermo Scientificrsquos Nunc Cell Factories bull Pall Corp
wwwbiopharminternationalcom June 2015 BioPharm International eBook 31
Outsourcing Resources Cell Therapy
processrdquo Table II summarizes issues
and points where changes will be
easier
Thus Hampson suggests that
companies whether work ing
with CDMOs or in house think
through such issues as cost of
goods scale and sustainabil-
ity much earlier than they typi-
cally do today ldquoYou donrsquot need to
spend money on these issues but
you do need to think about themrdquo
Hampson says ldquoQuality must be
a key issue even at Phase II trials
and early action pays off laterrdquo
In addition he suggests that
companies th ink about the
e nt i r e p r o c e s s c o mp r e he n -
sively ldquoThere is often a tendency
to focus on the core processing
stepsrdquo Hampson says ldquoBut you
really need to think about every-
thing from collection of mate-
rial through to administration
of product to the patient and all
steps in betweenrdquo
For ce l l therapies d ispos -
able equipment and closed pro-
cesses can be an effective way to
reduce costs and improve quality
and compliance ldquoThey can allow
you to isolate different processes
so that they can share a Class
100000 cleanroom environmentrdquo
Hampson says
ldquoInvesting in automated informa-
tion management can also pay offrdquo
he says ldquowhere an electronic batch
record system that is fully validated
can enable release-by-exception
reducing error documentation
time and overall quality assurance
costsrdquo Hampson says
In addition he notes it is
important to look at costs compre-
hensively an increase in one cost
can for example reduce overhead
improve process sustainability and
cost of goods Table III outlines the
issues
regulations evolve
Cell therapy is still a new area
for regulators and as Preti says
some guidelines are clear and oth-
ers arenrsquot ldquoDevelopment by design
is needed throughout the pro-
cess but the piece we still struggle
with the most is mode of action
(MOA) and product characteriza-
tion Regulatory agencies under-
stand that it is difficult to pinpoint
MOArdquo
Preti emphasizes the importance
of working with regulators ldquoYou
can be in a position to inform and
influence regulations as products
are developedrdquo he says
For any company moving into
this brave new world top-level ques-
tions are needed Preti says empha-
sizing the following ldquoDo you have
an understanding of scale Can you
scale up from very small Can you
characterize the process and control
it for reliability and qualityrdquo
In the stem cell area in particu-
lar this is crucial Preti said since
the product relies heavily on the
process ldquoManufacturing can be
thought of as patient administra-
tion It cannot be separated in
the same way that it can for tra-
ditional medicinesrdquo For contract
suppliers he adds demonstrated
success will be important and
sponsors should consider whether
a prospective partner will be able
to stay with them for the long run
referenCes 1 P Hourd et al Regulatory Challenges
for the Manufacture and Scale-
Out of Autologous Cell Therapies
Massachusetts General Hospital
(Cambridge MA 2013)
2 S Farid et al Biotechnol Bioeng
111(1) 69-83 (January 2014)
3 R Grant Building Deliverable Cell
Therapeutics A Methodical Approach
to Manufacturing Development
(Webinar Oct 22 2014) bp
source invetech
Justifcation driversChange in cost
doseDevelopment
estimate
Unit Op Ref
Change decription
Comparability risk
Quality COGs Scale Sustainability LaborMaterials outplant
Cost Time
P-2 Process change 1 Medium X X darr $ $$$ TT
P-3 Process change 2 High X X X darr $$$ $$$$ TTT
P-4 Process change 3 Low X X darr $$ $$ TTT
P-2 Process change 4 Low X $$ T
QC-4 In-house QC test None X TT
QA-1Electronic Batch
RecordNone X X X
darr $$$$
TTTT
Table III Process changes timing and comparability risks cogs is cost of goods Qc is quality control
32 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Intellectual Property
Protecting Intellectual Property
in Engagements with CMOs
Important IP contractual provisions should be included when working with CMOs
Jennifer L CoLLins
Biotechnology and pharmaceutical companies
often engage contract CMOs to assist with
the development of their drugs This type
of arrangement naturally involves the devel-
opment of intellectual property (IP) so it is
important for both the CMO and the sponsor to iden-
tify pre-existing intellectual property and also define
how rights to new IP will be allocated protected and
enforced by and between the companies
If the arrangement with the CMO is a traditional fee-
for-service arrangement where the company pays the
CMO service fees to perform development work on its
behalf then generally all new IP (other than improve-
ments to the CMOrsquos manufacturing technology) will be
owned by the biotechnology or pharmaceutical com-
pany that engaged the CMO On the other hand if the
arrangement between the CMO and the biotechnology
or pharmaceutical company is more of a collaborative
arrangement where both parties share the costs of devel-
opment as well as any profits from the commercializa-
tion then IP concerns become much more complicated
In that case in addition to describing which party will
Jennifer L CoLLins is a technology and licensing attorney with Morningstar Law Group jcollinsmorningstarlawgroupcom
Fa
na
tic S
tud
ioG
ett
y Im
ag
es
wwwbiopharminternationalcom June 2015 BioPharm International eBook 33
Outsourcing Resources Intellectual Property
own the new IP the contract should
sort out which party will be respon-
sible for obtaining and maintaining
patents on the new IP controlling
litigation against infringers and
defending the IP against challenges
In addition the parties should agree
upfront on how the IP may be used
by each party following various ter-
mination events so that the parties
are not left fighting about such mat-
ters at a time when they may not be
inclined to agree to anything
In both arrangements without
specific contractual provisions to
define and protect the new IP a
biotechnology company or phar-
maceutical company that uses a
CMO for development is at risk of
losing control of and possibly own-
ership of important improvements
to its drugs This article discusses
IP contractual provisions that
should be included in each type of
arrangement
Fee-For-service
development work
Traditionally CMOs perform fee-for-
service development work where
a biotechnology or pharmaceutical
company engages the CMO to per-
form this work for a fixed fee In this
type of arrangement the CMO is a
service provider and typically takes
no ownership interest in the drug or
product that is being developed or
in improvements to an existing drug
or product that is being tested or
developed The contract governing
the relationship nevertheless must
be clear about the IP rights that are
owned and licensed by each party
If the contract does not provide
for proper assignments of IP to the
biotechnology or pharmaceutical
company then it is likely that the
CMO will own any improvements
or other inventions that it develops
in the performance of the develop-
ment services even if that is not the
intent of the parties
Without signed written contracts
that state otherwise under United
States patent law the inventor of
a patentable invention or improve-
ment will own the invention or
improvement even if the inventor
is engaged to develop the invention
or the improvement for a customer
or other third party To ensure
that the biotechnology company or
pharmaceutical company obtains
all the patent and other IP rights
in developments inventions and
improvements created in the per-
formance of services by the CMO
the governing contract between the
biotechnology company or phar-
maceutical company and the CMO
must include written present assign-
ments of those IP rights from the
CMO to the company Indeed based
on recent cases it is crucial that the
assignment clause in the contract
be a ldquopresentrdquo assignment mean-
ing that it must state specifically
that the CMO ldquohereby assignshelliprdquo
rather than a clause stating that the
CMO ldquoagrees to assignrdquo rights in the
future Otherwise the contract will
be interpreted as a promise to assign
rights in the future and the bio
pharmaceutical company will have
to go back to the CMO at some later
point in time for a separate writ-
ten assignment of rights to obtain
all patent and other IP rights in the
developments
While it sounds logical and
straightforward that the CMO
would assign all inventions created
in the development work to its cus-
tomer it is not always that simple
in practice What if the CMO devel-
ops an improvement to its manu-
facturing process in the course of
the development work Most CMOs
will want to reserve ownership of
any improvements to the CMOrsquos
existing IP and confidential infor-
mation This position is not unrea-
sonable as long as the customer
ultimately has the rights it needs in
all new inventions including those
owned by the CMO to take the drug
forward through further develop-
ment and commercialization One
must sort out IP allocation by sub-
ject matter To achieve this allo-
cation the development contract
typically will state that each party
retains ownership of all IP that it
owns as of the date of the contract
(all pre-existing intellectual prop-
erty) It will also state that the cus-
tomer owns its proprietary drug
and all improvements to the drug
or the customerrsquos confidential infor-
mation developed by either or both
parties The development contract
also may state more generally that
the customer owns all inventions
improvements and IP rights related
to the customerrsquos drug With respect
to the CMO and its IP the develop-
ment contract may state that the
CMO owns all improvements to the
CMOrsquos manufacturing process and
to its other pre-existing intellectual
property Again this reservation is
not unreasonable The customer
however should determine whether
it requires access to those improve-
ments or inventions to complete the
development and commercialization
of its drug If such access is necessary
the customer should either negotiate
a license (which may be royalty-free
or royalty-based depending on the
circumstances) to use such improve-
ments or inventions to develop and
commercialize the drug or the cus-
tomer should negotiate the terms
under which the CMO will continue
to use the improvements or inven-
tions to perform development work
andor manufacture the drug for the
customer
In the fee-for-service arrange-
ment the assignment and licensing
of IP rights in new inventions and
improvements is the key intellectual
property issue Intellectual property
considerations become much more
complicated when the biotechnol-
34 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Intellectual Property
ogy or pharmaceutical company
partners with a CMO in the devel-
opment of a new drug or product
where the parties share development
costs and profits from commercial-
ization of the drug or product
cmo as collaborator
Although not as common as the
fee-for-service arrangement a CMO
may partner with a biotechnology
or pharmaceutical company in the
development and commercialization
of a drug or product Generally both
parties are bringing pre-existing IP
to the collaboration such as a drug
from a biopharmaceutical com-
pany and proprietary drug delivery
technology from the CMO In this
scenario the CMO is taking a long-
term interest and often a part-own-
ership interest in the success of the
drug product
Instead of getting paid an hourly
rate or fixed fee for development
work on the drug product the CMO
may share the cost of development
work with the biotechnology or
pharmaceutical partner in exchange
for a share of the profits when the
drug or product is commercialized
Other costs involved in the develop-
ment and commercialization of the
drug or product that may be shared
include the cost of patent prosecu-
tion and the cost of patent litigation
if the drug product is challenged or
if it is misappropriated or infringed
To secure its interest in the profits
from commercialization of the drug
product the CMO may want to take
an ownership interest in the intel-
lectual property rights in the drug
product All of these issues must be
carefully addressed in the develop-
ment contract to avoid both finan-
cial and IP disputes
As with the fee-for-serv ice
arrangement the parties must
allocate ownership of intellectual
property rights pertaining to the
drug product to be commercialized
These rights include both pre-exist-
ing IP rights and new inventions
and improvements developed in
the course of the development con-
tract As with the fee-for-service
arrangement the parties typically
will retain rights to their respec-
tive pre-existing IP Intellectual
property rights to new inventions
and improvements however may
be shared by giving each party a
co-ownership interest in the intel-
lectual property Alternatively such
rights may be allocated by inventor-
ship with each party taking owner-
ship of developments that it invents
and with the parties jointly own-
ing jointly developed inventions
As another alternative the IP rights
may be allocated by subject matter
as in the fee-for-service arrangement
with each party owning improve-
ments and inventions related to its
pre-existing IP regardless of which
party invents those improvements
and inventions
Depending on how the pat-
ent applications are drafted the
IP rights may be ldquosliced and dicedrdquo
more finely One party for example
could own patent rights for a drug
product for one indication while the
other party owns patent rights for
the same drug product for another
indication Decisions about how
to allocate the IP rights should be
made in consultation with intel-
lectual property counsel and must
take into account the manner in
which the drug will be commercial-
ized If one party for example is
to commercialize the product in
North America and Europe and
the other party is to commercialize
the product in the rest of the world
then either the patent ownership
should be allocated by territory or
the development contract should
include exclusive cross-licenses of
each partyrsquos rights in all the intel-
lectual property necessary to com-
mercialize the product with the first
party having an exclusive license to
commercialize the product in North
America and Europe and the second
party having an exclusive license to
commercialize the product in the
rest of the world
If the parties are going to share
ownership of the IP related to the
drug product then the develop-
ment contract also should specify
which party is responsible for pros-
ecuting and maintaining patents
on the drug product Regardless of
which party is responsible for patent
prosecution and maintenance the
other party should be consulted and
involved in key decisions regard-
ing patent prosecution and main-
tenance Unless there are multiple
patents for different indications that
will be commercialized exclusively
by one party and unless each party
has exclusive rights to commercial-
ize the drug product in particular
geographic areas it generally makes
sense for one party to take the pri-
mary responsibility for patent pros-
ecution and maintenance globally
with the other party consulting and
sharing in the cost of the prosecu-
tion and maintenance in accordance
with the profit sharing The party
that is not responsible for prosecu-
tion and maintenance should have
a contractual right to approve patent
counsel and review and approve pat-
ent filings office action responses
and other communications with
patent registries before they are filed
or submitted so that the parties
agree on the proper prosecution and
maintenance strategy
Likewise the development con-
tract should allocate the rights and
responsibilities for asserting and
defending the patents pertaining to
the product in litigation Often these
rights and responsibilities are allo-
cated by territory according to com-
mercialization rights If one party
for example has the exclusive right
to commercialize the drug product
wwwbiopharminternationalcom June 2015 BioPharm International eBook 35
Outsourcing Resources Intellectual Property
in the US then that party would
have the first right and responsibil-
ity to assert the patents on the drug
product against potential infringers
and defend the patents on the drug
product against infringement claims
in the US Likewise if one party has
the exclusive right to commercial-
ize the drug product for a particular
indication then that party would
have the first right and responsibility
to assert or defend the patents per-
taining to the product with respect
to that indication Both scenarios
can present challenges First some
courts will not recognize an exclu-
sive licensee as having standing to
assert a patent That court might
only allow the owner of the patent
(and not the exclusive licensee) to
bring a lawsuit asserting the patent
It is crucial therefore that contrac-
tual provisions relating to patent liti-
gation require the party that owns
the patent to cooperate in any litiga-
tion and to join the suit as a party if
necessary
Another potential problem is that
any litigation that asserts the pat-
ent is likely to draw a counterclaim
that the patent is invalid thus put-
ting the patent itself at risk of invali-
dation While one party might be
threatened by a potential infringer
in a particular market or for a partic-
ular indication and therefore might
want to assert the patent against the
potential infringer the other party
might not want to put the patent at
risk as to other markets and other
indications For these reasons the
contractual provisions pertaining
to patent litigation must be care-
fully drafted in consultation with
intellectual property counsel who
understands standing issues and
the potential areas for dispute The
contractual provisions also should
include dispute resolution provi-
sions for situations when the parties
do not agree on whether a patent
should be asserted
Finally while the parties may
want and expect their relationship
to continue for the full term of the
patents and the development con-
tract the parties must carefully
consider the IP ramifications of an
early termination of the develop-
ment contract and the relationship
particularly if the development con-
tract is terminated for breach If the
parties are sharing in the ownership
commercialization and profits gen-
erated by the drug product devel-
oped by the collaboration then
all of that must be unwound upon
termination The development
contract should be as specific as
possible with respect to the effect of
various types of termination on the
intellectual property and contin-
ued commercialization of the drug
product In particular the parties
may agree that if the development
contract is terminated due to breach
by one party then that breaching
party must relinquish and transfer
all of its rights with respect to the
drug product to the other party to
allow the non-breaching party to
continue the commercialization of
the drug product post-termination
Whether the necessary rights are
assigned or licensed whether the
terminated party should receive a
royalty for the transfer or license of
those rights and what if any pre-
existing IP is licensed to enable the
non-breaching party to continue
commercializing the drug product
are all key factors for negotiation
The development contract should
also address other types of termi-
nation such as termination for
insolvency and termination with-
out cause (ie if one party decides
it no longer wants to commercial-
ize the drug product) In each case
the effect of termination on the IP
rights should be carefully analyzed
and a competent IP counsel should
carefully draft post-termination
assignments and licenses
conclusion
While IP lawyers are not equipped
with crystal balls they can be
extremely helpful in analyzing par-
ticular development commercializa-
tion and post-termination scenarios
all of which affect IP in a drug devel-
opment arrangement Contractual
provisions related to IP must be
carefully drafted to align with the
strategic business objectives of any
relationship and particularly one
whose purpose is the development
and commercialization of intellec-
tual property Without a clear con-
tract each collaborator is at risk of
losing important rights bp
Ad Index
AJINOMOTO ALTHEA 21
AVID BIOSERVICES INC 15
CYTOVANCE BIOLOGICS 27
EMERGENT BIOSOLUTIONS 13
EUROFINS LANCASTER LABORATORIES 7
SAFC BIOSCIENCES SIGMA ALDRICH 17
THERMO FISHER SCIENTIFIC 23
TOSOH BIOSCIENCE 11
WATERS CORP 3
Company Page
![Page 28: OUOURT NG I C RESOURCESfiles.pharmtech.com/alfresco_images/pharma/2019/03/08/... · 2019-07-22 · VIDEO INTERVIEW Biologics Development and Manufacturing Trends: Part I ... Media](https://reader034.vdocuments.us/reader034/viewer/2022050113/5f4aca886c0d6724390eb040/html5/thumbnails/28.jpg)
28 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Cell Therapy
ing Pall Corp EMD Millipore
and GE Biosystems have set up
centers of excellence to focus on
developing equipment for this
new market Engineering compa-
nies such as Invetech and Instrom
are developing equipment specific
to this niche
More CDMos are entering
Cell therapy Market niChe
Demand for spec ia l i zed ce l l
t he rapy ma nu fac t u r ing a nd
development serv ices is a lso
growing and has attracted Lonza
Bioservices Cognate BioServices
WuXi AppTech and Roslin Cells
among others
NeoStem is fol low ing t wo
paths pursuing its own cel l
therapy pipel ine and explor-
ing contract services through
its contract development and
manufac t u r ing organ i zat ion
(CDMO) subsidiary Progenitor
Cell Therapy (PCT) With bases
in Irvine and Mountain View CA
and Allendale NJ PCT is cur-
rently working with Intrexon and
Fibrocell on connective tissue
treatments and with the United
K ingdomrsquos Adapt immune on
oncology treatments
A new CEO David Mazzo with
a doctorate in analytical chemis-
try and experience running both
private and public international
biopharma companies assumed
NeoStemrsquos leadership in January
He sees no conflict between grow-
ing a pipeline and a contract man-
ufacturing business
ldquoWe are not trying to be two
di f ferent companies and we
do not see the two competing
with each otherrdquo says Mazzo
in an interview with BioPharm
Inte rnat ionalrsquos s i ster publ ica-
tion Pharmaceutical Technology
during his second week on the
job ldquoInstead there is a symbi-
otic relationship between themrdquo
As he sees it the companyrsquos
track record in developing prod-
ucts should attract more spon-
sors ldquoProblems in development
usually occur at the interfaces
Our unique experience of having
lsquodone that beforersquo should be help-
fulrdquo he says
In January PCT entered a
partnership with Invetech an
equipment design firm based in
Australia with offices in San Diego
to develop automated equipment
for cell therapy manufacturing Fig
ur
e 1
is
co
ur
te
sy
oF
in
ve
te
ch
Figure 1 Part of an automated solution being developed by neostem and invetech Automating processes is key to reducing costs
wwwbiopharminternationalcom June 2015 BioPharm International eBook 29
Outsourcing Resources Cell Therapy
The two companies have already
been working together for a year
now honing the design and speci-
fications for the instrumentation
says NeoStemrsquos Chief Scientific
Officer (CSO) Robert Preti The
equipment will tackle cell therapyrsquos
most challenging side autologous
treatments where the manufactur-
ing lot is the patient dose adminis-
tered at the patientrsquos bedside
As Preti notes there really isnrsquot
much available today in the way
of automated equipment for cell
therapy especially on the autolo-
gous side The equipment will sep-
arate and wash cells among other
functions
labor-intensive
proCesses aDD Cost
So far Preti says the company
is evaluating the evolving equip-
ment in NeoStemrsquos own manu-
facturing efforts ldquoOne of the
largest commercial bottlenecks
is the heavy labor required by
processes especially for patient-
specific uses where one batch is
one patientrdquo
The cost of goods i s ver y
high Preti says ldquoSuccess long-
term will require a whole new
approach to development The
goal is to provide high qual-
ity and sustainabilityrdquo he says
Removing manual operat ions
and human error from the pro-
cess will be crucial
Invetech has been work ing
on cell therapy process scale-up
automation for more than 10
years and has successfully com-
pleted projects in North America
Europe and Asia for companies
that include Argos Therapeutics
Aa s t rom CCR M Hu mac y te
Innovacell Janssen kSep Systems
MolMed Organovo and ViaCyte
accord ing to R ichard Grant
global VP of the companyrsquos bio-
pharma operations who has been
with the company for more than
14 years
ldquoThe goal is to develop a mix
of equipment and manufactur-
ing st rateg ies that maximize
quality scalability and sustain-
ability with an eye toward cost-
effect iveness and commercial
viabilityrdquo Grant says Invetechrsquos
solutions typically tailor a mix of
OEM and customized equipment
to the clientrsquos processes The com-
pany recently commercialized
equipment used to manufacture
Janssenrsquos macular degeneration
treatment
Costs of current manufactur-
ing processes for both autologous
and allogeneic therapies are dif-
ficult to peg Last year experts
at University College London
attempted to pinpoint the cost and
overall economics of allogeneic
cell therapy using single-use tech-
nologies (2)
What is clear for both alloge-
neic and autologous systems is
that cell therapy development
Table I Manufacturing scenarios for cell therapies
Attributes Off-the-shelf therapiesPatient-specifc
therapies
Source material Always allogeneic Autologous or matched allogeneic
Batch size Many patients One patient
Business model Similar to pharmabiopharma New
Scaling Scale up (Increased lot size) Scale out (Increased number of lots)
Comparability vs scale Higher concern Lower concern
Manufacturing design drivers
Mission critical success + +++
Optimized process yield +++ +
Dimensional efficiency ++ +-
Integration +- ++
Automation + ++
source invetech
Table II Measuring comparability risk
Risk level Example Timing
None Automated sterility test Before biologics license application
Low Change in process unit op and cell journey is the same
Before 50 accrual in pivotal trials
Medium Change in process unit op and cell journey is similar
Before initiation of pivotal clinical trials
High Change in process unit op and the cell journey is matched
Some Phase II clinical data
source invetech
30 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Cell Therapy
and manufacturing costs are cur-
rently prohibitive ldquoThe starting
points can vary dramaticallyrdquo
Grant says He recalls one cus-
tomer whose autologous process
ran to $80000 per patient in early
stage clinical trials Automation
he says could reduce costs by
40ndash90 depending on the ther-
apy involved
DevelopMent by Design
But before one can automate any
process one must understand it
NeoStem and PCT like a growing
number of companies are taking
the principle of quality by design
(QbD) to heart in their work
Mazzo arguably one of few
life-science company CEOs to
even articulate the QbD concept
explains that the company has
gone a step further and broadened
the International Conference on
Harmonization guidances adopted
by FDA into ldquodevelopment by
designrdquo (DbD)
ldquoWe say first consider the end-
point then take process as is and
understand its unit operations
Develop inputs and outputs and
discrete steps and define the pro-
cess in a way that promotes under-
standingrdquo he says
ldquoThis is challenging given prod-
uct complexity but there is a need
to understand the mechanism of
action very well so you put each
process in this overall envelope
of DbD and consider the cost of
goods scalability and sustainabil-
ityrdquo Preti adds ldquoYou consider the
process from the end only this
time each batch is an individual
patientrdquo
The critical part is defining and
measuring process needs he says
ldquoProduct definition is very impor-
tant particularly the quality target
product profilerdquo explains Brian
Hampson VP of manufacturing
development and engineering at
PCT in an Oct 22 2014 webcast
for the International Society for
Cell Therapy (3)
have the enD in MinD
Such t h ings a s for mulat ion
issues dosage potency impu-
rities residuals and microbial
assurance need to be thought out
clearly from the start Hampson
says as well as indications for
use geographic market projec-
tions cost-of-goods targets and
IP issues
The profile needs to be a liv-
ing document that changes as the
product takes shape Hampson
says There is a tendency for peo-
ple in the industry to ignore the
product profile until they have
all the answers says Hampson
ldquoInstead it needs to be developed
really early even when you donrsquot
have all or even many of the
answers hellip you can leave them
as blanks and continue to review
add to and updaterdquo
The result is not only a tool for
better understanding the prod-
uct process and mechanism of
action but a communication tool
for stakeholders
When to start DbD for cell ther-
apies ldquoThe temptation is to begin
later in the game when you need
reasonable COGS and you need
to be sure of sustainable manu-
facturingrdquo says Hampson ldquoThe
key thing is comparability and
anticipating its implications early
in the clinical program It needs
to be flexible at the early stagesrdquo
Hampson says ldquoBut as you near
Phase III you need to lock in your
equipment evolves
In the bioreactor area there is great interest in moving from 2-D to 3-D processing to enable the processing of the cell volumes required something that companies such as Israelrsquos Pluristem have been doing for some time
Equipment designer Instrom is partnering with companies including BRTI Life Sciences to focus on 3-D cell matrix technologies developed by Dr John Brekke EMD Millipore has been partnering with PharmaCell BV to use its Mobius bioreactor platform to expand and harvest HepRG cells GE Sciences is also evaluating Wave and other systems and set up a center of excellence in Wales recently
In other equipment areas Pall Corp has been partnering with CMDG LLC on cord blood processing technology Following are some of the equipment manufacturers and systems applied in cell therapy development and manufacturing
bull Beckman Coulter bull Corning Cell Stacks and Cell Cube
bull EMD Millipore bull GE Biosciences
bull Thermo Scientificrsquos Nunc Cell Factories bull Pall Corp
wwwbiopharminternationalcom June 2015 BioPharm International eBook 31
Outsourcing Resources Cell Therapy
processrdquo Table II summarizes issues
and points where changes will be
easier
Thus Hampson suggests that
companies whether work ing
with CDMOs or in house think
through such issues as cost of
goods scale and sustainabil-
ity much earlier than they typi-
cally do today ldquoYou donrsquot need to
spend money on these issues but
you do need to think about themrdquo
Hampson says ldquoQuality must be
a key issue even at Phase II trials
and early action pays off laterrdquo
In addition he suggests that
companies th ink about the
e nt i r e p r o c e s s c o mp r e he n -
sively ldquoThere is often a tendency
to focus on the core processing
stepsrdquo Hampson says ldquoBut you
really need to think about every-
thing from collection of mate-
rial through to administration
of product to the patient and all
steps in betweenrdquo
For ce l l therapies d ispos -
able equipment and closed pro-
cesses can be an effective way to
reduce costs and improve quality
and compliance ldquoThey can allow
you to isolate different processes
so that they can share a Class
100000 cleanroom environmentrdquo
Hampson says
ldquoInvesting in automated informa-
tion management can also pay offrdquo
he says ldquowhere an electronic batch
record system that is fully validated
can enable release-by-exception
reducing error documentation
time and overall quality assurance
costsrdquo Hampson says
In addition he notes it is
important to look at costs compre-
hensively an increase in one cost
can for example reduce overhead
improve process sustainability and
cost of goods Table III outlines the
issues
regulations evolve
Cell therapy is still a new area
for regulators and as Preti says
some guidelines are clear and oth-
ers arenrsquot ldquoDevelopment by design
is needed throughout the pro-
cess but the piece we still struggle
with the most is mode of action
(MOA) and product characteriza-
tion Regulatory agencies under-
stand that it is difficult to pinpoint
MOArdquo
Preti emphasizes the importance
of working with regulators ldquoYou
can be in a position to inform and
influence regulations as products
are developedrdquo he says
For any company moving into
this brave new world top-level ques-
tions are needed Preti says empha-
sizing the following ldquoDo you have
an understanding of scale Can you
scale up from very small Can you
characterize the process and control
it for reliability and qualityrdquo
In the stem cell area in particu-
lar this is crucial Preti said since
the product relies heavily on the
process ldquoManufacturing can be
thought of as patient administra-
tion It cannot be separated in
the same way that it can for tra-
ditional medicinesrdquo For contract
suppliers he adds demonstrated
success will be important and
sponsors should consider whether
a prospective partner will be able
to stay with them for the long run
referenCes 1 P Hourd et al Regulatory Challenges
for the Manufacture and Scale-
Out of Autologous Cell Therapies
Massachusetts General Hospital
(Cambridge MA 2013)
2 S Farid et al Biotechnol Bioeng
111(1) 69-83 (January 2014)
3 R Grant Building Deliverable Cell
Therapeutics A Methodical Approach
to Manufacturing Development
(Webinar Oct 22 2014) bp
source invetech
Justifcation driversChange in cost
doseDevelopment
estimate
Unit Op Ref
Change decription
Comparability risk
Quality COGs Scale Sustainability LaborMaterials outplant
Cost Time
P-2 Process change 1 Medium X X darr $ $$$ TT
P-3 Process change 2 High X X X darr $$$ $$$$ TTT
P-4 Process change 3 Low X X darr $$ $$ TTT
P-2 Process change 4 Low X $$ T
QC-4 In-house QC test None X TT
QA-1Electronic Batch
RecordNone X X X
darr $$$$
TTTT
Table III Process changes timing and comparability risks cogs is cost of goods Qc is quality control
32 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Intellectual Property
Protecting Intellectual Property
in Engagements with CMOs
Important IP contractual provisions should be included when working with CMOs
Jennifer L CoLLins
Biotechnology and pharmaceutical companies
often engage contract CMOs to assist with
the development of their drugs This type
of arrangement naturally involves the devel-
opment of intellectual property (IP) so it is
important for both the CMO and the sponsor to iden-
tify pre-existing intellectual property and also define
how rights to new IP will be allocated protected and
enforced by and between the companies
If the arrangement with the CMO is a traditional fee-
for-service arrangement where the company pays the
CMO service fees to perform development work on its
behalf then generally all new IP (other than improve-
ments to the CMOrsquos manufacturing technology) will be
owned by the biotechnology or pharmaceutical com-
pany that engaged the CMO On the other hand if the
arrangement between the CMO and the biotechnology
or pharmaceutical company is more of a collaborative
arrangement where both parties share the costs of devel-
opment as well as any profits from the commercializa-
tion then IP concerns become much more complicated
In that case in addition to describing which party will
Jennifer L CoLLins is a technology and licensing attorney with Morningstar Law Group jcollinsmorningstarlawgroupcom
Fa
na
tic S
tud
ioG
ett
y Im
ag
es
wwwbiopharminternationalcom June 2015 BioPharm International eBook 33
Outsourcing Resources Intellectual Property
own the new IP the contract should
sort out which party will be respon-
sible for obtaining and maintaining
patents on the new IP controlling
litigation against infringers and
defending the IP against challenges
In addition the parties should agree
upfront on how the IP may be used
by each party following various ter-
mination events so that the parties
are not left fighting about such mat-
ters at a time when they may not be
inclined to agree to anything
In both arrangements without
specific contractual provisions to
define and protect the new IP a
biotechnology company or phar-
maceutical company that uses a
CMO for development is at risk of
losing control of and possibly own-
ership of important improvements
to its drugs This article discusses
IP contractual provisions that
should be included in each type of
arrangement
Fee-For-service
development work
Traditionally CMOs perform fee-for-
service development work where
a biotechnology or pharmaceutical
company engages the CMO to per-
form this work for a fixed fee In this
type of arrangement the CMO is a
service provider and typically takes
no ownership interest in the drug or
product that is being developed or
in improvements to an existing drug
or product that is being tested or
developed The contract governing
the relationship nevertheless must
be clear about the IP rights that are
owned and licensed by each party
If the contract does not provide
for proper assignments of IP to the
biotechnology or pharmaceutical
company then it is likely that the
CMO will own any improvements
or other inventions that it develops
in the performance of the develop-
ment services even if that is not the
intent of the parties
Without signed written contracts
that state otherwise under United
States patent law the inventor of
a patentable invention or improve-
ment will own the invention or
improvement even if the inventor
is engaged to develop the invention
or the improvement for a customer
or other third party To ensure
that the biotechnology company or
pharmaceutical company obtains
all the patent and other IP rights
in developments inventions and
improvements created in the per-
formance of services by the CMO
the governing contract between the
biotechnology company or phar-
maceutical company and the CMO
must include written present assign-
ments of those IP rights from the
CMO to the company Indeed based
on recent cases it is crucial that the
assignment clause in the contract
be a ldquopresentrdquo assignment mean-
ing that it must state specifically
that the CMO ldquohereby assignshelliprdquo
rather than a clause stating that the
CMO ldquoagrees to assignrdquo rights in the
future Otherwise the contract will
be interpreted as a promise to assign
rights in the future and the bio
pharmaceutical company will have
to go back to the CMO at some later
point in time for a separate writ-
ten assignment of rights to obtain
all patent and other IP rights in the
developments
While it sounds logical and
straightforward that the CMO
would assign all inventions created
in the development work to its cus-
tomer it is not always that simple
in practice What if the CMO devel-
ops an improvement to its manu-
facturing process in the course of
the development work Most CMOs
will want to reserve ownership of
any improvements to the CMOrsquos
existing IP and confidential infor-
mation This position is not unrea-
sonable as long as the customer
ultimately has the rights it needs in
all new inventions including those
owned by the CMO to take the drug
forward through further develop-
ment and commercialization One
must sort out IP allocation by sub-
ject matter To achieve this allo-
cation the development contract
typically will state that each party
retains ownership of all IP that it
owns as of the date of the contract
(all pre-existing intellectual prop-
erty) It will also state that the cus-
tomer owns its proprietary drug
and all improvements to the drug
or the customerrsquos confidential infor-
mation developed by either or both
parties The development contract
also may state more generally that
the customer owns all inventions
improvements and IP rights related
to the customerrsquos drug With respect
to the CMO and its IP the develop-
ment contract may state that the
CMO owns all improvements to the
CMOrsquos manufacturing process and
to its other pre-existing intellectual
property Again this reservation is
not unreasonable The customer
however should determine whether
it requires access to those improve-
ments or inventions to complete the
development and commercialization
of its drug If such access is necessary
the customer should either negotiate
a license (which may be royalty-free
or royalty-based depending on the
circumstances) to use such improve-
ments or inventions to develop and
commercialize the drug or the cus-
tomer should negotiate the terms
under which the CMO will continue
to use the improvements or inven-
tions to perform development work
andor manufacture the drug for the
customer
In the fee-for-service arrange-
ment the assignment and licensing
of IP rights in new inventions and
improvements is the key intellectual
property issue Intellectual property
considerations become much more
complicated when the biotechnol-
34 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Intellectual Property
ogy or pharmaceutical company
partners with a CMO in the devel-
opment of a new drug or product
where the parties share development
costs and profits from commercial-
ization of the drug or product
cmo as collaborator
Although not as common as the
fee-for-service arrangement a CMO
may partner with a biotechnology
or pharmaceutical company in the
development and commercialization
of a drug or product Generally both
parties are bringing pre-existing IP
to the collaboration such as a drug
from a biopharmaceutical com-
pany and proprietary drug delivery
technology from the CMO In this
scenario the CMO is taking a long-
term interest and often a part-own-
ership interest in the success of the
drug product
Instead of getting paid an hourly
rate or fixed fee for development
work on the drug product the CMO
may share the cost of development
work with the biotechnology or
pharmaceutical partner in exchange
for a share of the profits when the
drug or product is commercialized
Other costs involved in the develop-
ment and commercialization of the
drug or product that may be shared
include the cost of patent prosecu-
tion and the cost of patent litigation
if the drug product is challenged or
if it is misappropriated or infringed
To secure its interest in the profits
from commercialization of the drug
product the CMO may want to take
an ownership interest in the intel-
lectual property rights in the drug
product All of these issues must be
carefully addressed in the develop-
ment contract to avoid both finan-
cial and IP disputes
As with the fee-for-serv ice
arrangement the parties must
allocate ownership of intellectual
property rights pertaining to the
drug product to be commercialized
These rights include both pre-exist-
ing IP rights and new inventions
and improvements developed in
the course of the development con-
tract As with the fee-for-service
arrangement the parties typically
will retain rights to their respec-
tive pre-existing IP Intellectual
property rights to new inventions
and improvements however may
be shared by giving each party a
co-ownership interest in the intel-
lectual property Alternatively such
rights may be allocated by inventor-
ship with each party taking owner-
ship of developments that it invents
and with the parties jointly own-
ing jointly developed inventions
As another alternative the IP rights
may be allocated by subject matter
as in the fee-for-service arrangement
with each party owning improve-
ments and inventions related to its
pre-existing IP regardless of which
party invents those improvements
and inventions
Depending on how the pat-
ent applications are drafted the
IP rights may be ldquosliced and dicedrdquo
more finely One party for example
could own patent rights for a drug
product for one indication while the
other party owns patent rights for
the same drug product for another
indication Decisions about how
to allocate the IP rights should be
made in consultation with intel-
lectual property counsel and must
take into account the manner in
which the drug will be commercial-
ized If one party for example is
to commercialize the product in
North America and Europe and
the other party is to commercialize
the product in the rest of the world
then either the patent ownership
should be allocated by territory or
the development contract should
include exclusive cross-licenses of
each partyrsquos rights in all the intel-
lectual property necessary to com-
mercialize the product with the first
party having an exclusive license to
commercialize the product in North
America and Europe and the second
party having an exclusive license to
commercialize the product in the
rest of the world
If the parties are going to share
ownership of the IP related to the
drug product then the develop-
ment contract also should specify
which party is responsible for pros-
ecuting and maintaining patents
on the drug product Regardless of
which party is responsible for patent
prosecution and maintenance the
other party should be consulted and
involved in key decisions regard-
ing patent prosecution and main-
tenance Unless there are multiple
patents for different indications that
will be commercialized exclusively
by one party and unless each party
has exclusive rights to commercial-
ize the drug product in particular
geographic areas it generally makes
sense for one party to take the pri-
mary responsibility for patent pros-
ecution and maintenance globally
with the other party consulting and
sharing in the cost of the prosecu-
tion and maintenance in accordance
with the profit sharing The party
that is not responsible for prosecu-
tion and maintenance should have
a contractual right to approve patent
counsel and review and approve pat-
ent filings office action responses
and other communications with
patent registries before they are filed
or submitted so that the parties
agree on the proper prosecution and
maintenance strategy
Likewise the development con-
tract should allocate the rights and
responsibilities for asserting and
defending the patents pertaining to
the product in litigation Often these
rights and responsibilities are allo-
cated by territory according to com-
mercialization rights If one party
for example has the exclusive right
to commercialize the drug product
wwwbiopharminternationalcom June 2015 BioPharm International eBook 35
Outsourcing Resources Intellectual Property
in the US then that party would
have the first right and responsibil-
ity to assert the patents on the drug
product against potential infringers
and defend the patents on the drug
product against infringement claims
in the US Likewise if one party has
the exclusive right to commercial-
ize the drug product for a particular
indication then that party would
have the first right and responsibility
to assert or defend the patents per-
taining to the product with respect
to that indication Both scenarios
can present challenges First some
courts will not recognize an exclu-
sive licensee as having standing to
assert a patent That court might
only allow the owner of the patent
(and not the exclusive licensee) to
bring a lawsuit asserting the patent
It is crucial therefore that contrac-
tual provisions relating to patent liti-
gation require the party that owns
the patent to cooperate in any litiga-
tion and to join the suit as a party if
necessary
Another potential problem is that
any litigation that asserts the pat-
ent is likely to draw a counterclaim
that the patent is invalid thus put-
ting the patent itself at risk of invali-
dation While one party might be
threatened by a potential infringer
in a particular market or for a partic-
ular indication and therefore might
want to assert the patent against the
potential infringer the other party
might not want to put the patent at
risk as to other markets and other
indications For these reasons the
contractual provisions pertaining
to patent litigation must be care-
fully drafted in consultation with
intellectual property counsel who
understands standing issues and
the potential areas for dispute The
contractual provisions also should
include dispute resolution provi-
sions for situations when the parties
do not agree on whether a patent
should be asserted
Finally while the parties may
want and expect their relationship
to continue for the full term of the
patents and the development con-
tract the parties must carefully
consider the IP ramifications of an
early termination of the develop-
ment contract and the relationship
particularly if the development con-
tract is terminated for breach If the
parties are sharing in the ownership
commercialization and profits gen-
erated by the drug product devel-
oped by the collaboration then
all of that must be unwound upon
termination The development
contract should be as specific as
possible with respect to the effect of
various types of termination on the
intellectual property and contin-
ued commercialization of the drug
product In particular the parties
may agree that if the development
contract is terminated due to breach
by one party then that breaching
party must relinquish and transfer
all of its rights with respect to the
drug product to the other party to
allow the non-breaching party to
continue the commercialization of
the drug product post-termination
Whether the necessary rights are
assigned or licensed whether the
terminated party should receive a
royalty for the transfer or license of
those rights and what if any pre-
existing IP is licensed to enable the
non-breaching party to continue
commercializing the drug product
are all key factors for negotiation
The development contract should
also address other types of termi-
nation such as termination for
insolvency and termination with-
out cause (ie if one party decides
it no longer wants to commercial-
ize the drug product) In each case
the effect of termination on the IP
rights should be carefully analyzed
and a competent IP counsel should
carefully draft post-termination
assignments and licenses
conclusion
While IP lawyers are not equipped
with crystal balls they can be
extremely helpful in analyzing par-
ticular development commercializa-
tion and post-termination scenarios
all of which affect IP in a drug devel-
opment arrangement Contractual
provisions related to IP must be
carefully drafted to align with the
strategic business objectives of any
relationship and particularly one
whose purpose is the development
and commercialization of intellec-
tual property Without a clear con-
tract each collaborator is at risk of
losing important rights bp
Ad Index
AJINOMOTO ALTHEA 21
AVID BIOSERVICES INC 15
CYTOVANCE BIOLOGICS 27
EMERGENT BIOSOLUTIONS 13
EUROFINS LANCASTER LABORATORIES 7
SAFC BIOSCIENCES SIGMA ALDRICH 17
THERMO FISHER SCIENTIFIC 23
TOSOH BIOSCIENCE 11
WATERS CORP 3
Company Page
![Page 29: OUOURT NG I C RESOURCESfiles.pharmtech.com/alfresco_images/pharma/2019/03/08/... · 2019-07-22 · VIDEO INTERVIEW Biologics Development and Manufacturing Trends: Part I ... Media](https://reader034.vdocuments.us/reader034/viewer/2022050113/5f4aca886c0d6724390eb040/html5/thumbnails/29.jpg)
wwwbiopharminternationalcom June 2015 BioPharm International eBook 29
Outsourcing Resources Cell Therapy
The two companies have already
been working together for a year
now honing the design and speci-
fications for the instrumentation
says NeoStemrsquos Chief Scientific
Officer (CSO) Robert Preti The
equipment will tackle cell therapyrsquos
most challenging side autologous
treatments where the manufactur-
ing lot is the patient dose adminis-
tered at the patientrsquos bedside
As Preti notes there really isnrsquot
much available today in the way
of automated equipment for cell
therapy especially on the autolo-
gous side The equipment will sep-
arate and wash cells among other
functions
labor-intensive
proCesses aDD Cost
So far Preti says the company
is evaluating the evolving equip-
ment in NeoStemrsquos own manu-
facturing efforts ldquoOne of the
largest commercial bottlenecks
is the heavy labor required by
processes especially for patient-
specific uses where one batch is
one patientrdquo
The cost of goods i s ver y
high Preti says ldquoSuccess long-
term will require a whole new
approach to development The
goal is to provide high qual-
ity and sustainabilityrdquo he says
Removing manual operat ions
and human error from the pro-
cess will be crucial
Invetech has been work ing
on cell therapy process scale-up
automation for more than 10
years and has successfully com-
pleted projects in North America
Europe and Asia for companies
that include Argos Therapeutics
Aa s t rom CCR M Hu mac y te
Innovacell Janssen kSep Systems
MolMed Organovo and ViaCyte
accord ing to R ichard Grant
global VP of the companyrsquos bio-
pharma operations who has been
with the company for more than
14 years
ldquoThe goal is to develop a mix
of equipment and manufactur-
ing st rateg ies that maximize
quality scalability and sustain-
ability with an eye toward cost-
effect iveness and commercial
viabilityrdquo Grant says Invetechrsquos
solutions typically tailor a mix of
OEM and customized equipment
to the clientrsquos processes The com-
pany recently commercialized
equipment used to manufacture
Janssenrsquos macular degeneration
treatment
Costs of current manufactur-
ing processes for both autologous
and allogeneic therapies are dif-
ficult to peg Last year experts
at University College London
attempted to pinpoint the cost and
overall economics of allogeneic
cell therapy using single-use tech-
nologies (2)
What is clear for both alloge-
neic and autologous systems is
that cell therapy development
Table I Manufacturing scenarios for cell therapies
Attributes Off-the-shelf therapiesPatient-specifc
therapies
Source material Always allogeneic Autologous or matched allogeneic
Batch size Many patients One patient
Business model Similar to pharmabiopharma New
Scaling Scale up (Increased lot size) Scale out (Increased number of lots)
Comparability vs scale Higher concern Lower concern
Manufacturing design drivers
Mission critical success + +++
Optimized process yield +++ +
Dimensional efficiency ++ +-
Integration +- ++
Automation + ++
source invetech
Table II Measuring comparability risk
Risk level Example Timing
None Automated sterility test Before biologics license application
Low Change in process unit op and cell journey is the same
Before 50 accrual in pivotal trials
Medium Change in process unit op and cell journey is similar
Before initiation of pivotal clinical trials
High Change in process unit op and the cell journey is matched
Some Phase II clinical data
source invetech
30 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Cell Therapy
and manufacturing costs are cur-
rently prohibitive ldquoThe starting
points can vary dramaticallyrdquo
Grant says He recalls one cus-
tomer whose autologous process
ran to $80000 per patient in early
stage clinical trials Automation
he says could reduce costs by
40ndash90 depending on the ther-
apy involved
DevelopMent by Design
But before one can automate any
process one must understand it
NeoStem and PCT like a growing
number of companies are taking
the principle of quality by design
(QbD) to heart in their work
Mazzo arguably one of few
life-science company CEOs to
even articulate the QbD concept
explains that the company has
gone a step further and broadened
the International Conference on
Harmonization guidances adopted
by FDA into ldquodevelopment by
designrdquo (DbD)
ldquoWe say first consider the end-
point then take process as is and
understand its unit operations
Develop inputs and outputs and
discrete steps and define the pro-
cess in a way that promotes under-
standingrdquo he says
ldquoThis is challenging given prod-
uct complexity but there is a need
to understand the mechanism of
action very well so you put each
process in this overall envelope
of DbD and consider the cost of
goods scalability and sustainabil-
ityrdquo Preti adds ldquoYou consider the
process from the end only this
time each batch is an individual
patientrdquo
The critical part is defining and
measuring process needs he says
ldquoProduct definition is very impor-
tant particularly the quality target
product profilerdquo explains Brian
Hampson VP of manufacturing
development and engineering at
PCT in an Oct 22 2014 webcast
for the International Society for
Cell Therapy (3)
have the enD in MinD
Such t h ings a s for mulat ion
issues dosage potency impu-
rities residuals and microbial
assurance need to be thought out
clearly from the start Hampson
says as well as indications for
use geographic market projec-
tions cost-of-goods targets and
IP issues
The profile needs to be a liv-
ing document that changes as the
product takes shape Hampson
says There is a tendency for peo-
ple in the industry to ignore the
product profile until they have
all the answers says Hampson
ldquoInstead it needs to be developed
really early even when you donrsquot
have all or even many of the
answers hellip you can leave them
as blanks and continue to review
add to and updaterdquo
The result is not only a tool for
better understanding the prod-
uct process and mechanism of
action but a communication tool
for stakeholders
When to start DbD for cell ther-
apies ldquoThe temptation is to begin
later in the game when you need
reasonable COGS and you need
to be sure of sustainable manu-
facturingrdquo says Hampson ldquoThe
key thing is comparability and
anticipating its implications early
in the clinical program It needs
to be flexible at the early stagesrdquo
Hampson says ldquoBut as you near
Phase III you need to lock in your
equipment evolves
In the bioreactor area there is great interest in moving from 2-D to 3-D processing to enable the processing of the cell volumes required something that companies such as Israelrsquos Pluristem have been doing for some time
Equipment designer Instrom is partnering with companies including BRTI Life Sciences to focus on 3-D cell matrix technologies developed by Dr John Brekke EMD Millipore has been partnering with PharmaCell BV to use its Mobius bioreactor platform to expand and harvest HepRG cells GE Sciences is also evaluating Wave and other systems and set up a center of excellence in Wales recently
In other equipment areas Pall Corp has been partnering with CMDG LLC on cord blood processing technology Following are some of the equipment manufacturers and systems applied in cell therapy development and manufacturing
bull Beckman Coulter bull Corning Cell Stacks and Cell Cube
bull EMD Millipore bull GE Biosciences
bull Thermo Scientificrsquos Nunc Cell Factories bull Pall Corp
wwwbiopharminternationalcom June 2015 BioPharm International eBook 31
Outsourcing Resources Cell Therapy
processrdquo Table II summarizes issues
and points where changes will be
easier
Thus Hampson suggests that
companies whether work ing
with CDMOs or in house think
through such issues as cost of
goods scale and sustainabil-
ity much earlier than they typi-
cally do today ldquoYou donrsquot need to
spend money on these issues but
you do need to think about themrdquo
Hampson says ldquoQuality must be
a key issue even at Phase II trials
and early action pays off laterrdquo
In addition he suggests that
companies th ink about the
e nt i r e p r o c e s s c o mp r e he n -
sively ldquoThere is often a tendency
to focus on the core processing
stepsrdquo Hampson says ldquoBut you
really need to think about every-
thing from collection of mate-
rial through to administration
of product to the patient and all
steps in betweenrdquo
For ce l l therapies d ispos -
able equipment and closed pro-
cesses can be an effective way to
reduce costs and improve quality
and compliance ldquoThey can allow
you to isolate different processes
so that they can share a Class
100000 cleanroom environmentrdquo
Hampson says
ldquoInvesting in automated informa-
tion management can also pay offrdquo
he says ldquowhere an electronic batch
record system that is fully validated
can enable release-by-exception
reducing error documentation
time and overall quality assurance
costsrdquo Hampson says
In addition he notes it is
important to look at costs compre-
hensively an increase in one cost
can for example reduce overhead
improve process sustainability and
cost of goods Table III outlines the
issues
regulations evolve
Cell therapy is still a new area
for regulators and as Preti says
some guidelines are clear and oth-
ers arenrsquot ldquoDevelopment by design
is needed throughout the pro-
cess but the piece we still struggle
with the most is mode of action
(MOA) and product characteriza-
tion Regulatory agencies under-
stand that it is difficult to pinpoint
MOArdquo
Preti emphasizes the importance
of working with regulators ldquoYou
can be in a position to inform and
influence regulations as products
are developedrdquo he says
For any company moving into
this brave new world top-level ques-
tions are needed Preti says empha-
sizing the following ldquoDo you have
an understanding of scale Can you
scale up from very small Can you
characterize the process and control
it for reliability and qualityrdquo
In the stem cell area in particu-
lar this is crucial Preti said since
the product relies heavily on the
process ldquoManufacturing can be
thought of as patient administra-
tion It cannot be separated in
the same way that it can for tra-
ditional medicinesrdquo For contract
suppliers he adds demonstrated
success will be important and
sponsors should consider whether
a prospective partner will be able
to stay with them for the long run
referenCes 1 P Hourd et al Regulatory Challenges
for the Manufacture and Scale-
Out of Autologous Cell Therapies
Massachusetts General Hospital
(Cambridge MA 2013)
2 S Farid et al Biotechnol Bioeng
111(1) 69-83 (January 2014)
3 R Grant Building Deliverable Cell
Therapeutics A Methodical Approach
to Manufacturing Development
(Webinar Oct 22 2014) bp
source invetech
Justifcation driversChange in cost
doseDevelopment
estimate
Unit Op Ref
Change decription
Comparability risk
Quality COGs Scale Sustainability LaborMaterials outplant
Cost Time
P-2 Process change 1 Medium X X darr $ $$$ TT
P-3 Process change 2 High X X X darr $$$ $$$$ TTT
P-4 Process change 3 Low X X darr $$ $$ TTT
P-2 Process change 4 Low X $$ T
QC-4 In-house QC test None X TT
QA-1Electronic Batch
RecordNone X X X
darr $$$$
TTTT
Table III Process changes timing and comparability risks cogs is cost of goods Qc is quality control
32 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Intellectual Property
Protecting Intellectual Property
in Engagements with CMOs
Important IP contractual provisions should be included when working with CMOs
Jennifer L CoLLins
Biotechnology and pharmaceutical companies
often engage contract CMOs to assist with
the development of their drugs This type
of arrangement naturally involves the devel-
opment of intellectual property (IP) so it is
important for both the CMO and the sponsor to iden-
tify pre-existing intellectual property and also define
how rights to new IP will be allocated protected and
enforced by and between the companies
If the arrangement with the CMO is a traditional fee-
for-service arrangement where the company pays the
CMO service fees to perform development work on its
behalf then generally all new IP (other than improve-
ments to the CMOrsquos manufacturing technology) will be
owned by the biotechnology or pharmaceutical com-
pany that engaged the CMO On the other hand if the
arrangement between the CMO and the biotechnology
or pharmaceutical company is more of a collaborative
arrangement where both parties share the costs of devel-
opment as well as any profits from the commercializa-
tion then IP concerns become much more complicated
In that case in addition to describing which party will
Jennifer L CoLLins is a technology and licensing attorney with Morningstar Law Group jcollinsmorningstarlawgroupcom
Fa
na
tic S
tud
ioG
ett
y Im
ag
es
wwwbiopharminternationalcom June 2015 BioPharm International eBook 33
Outsourcing Resources Intellectual Property
own the new IP the contract should
sort out which party will be respon-
sible for obtaining and maintaining
patents on the new IP controlling
litigation against infringers and
defending the IP against challenges
In addition the parties should agree
upfront on how the IP may be used
by each party following various ter-
mination events so that the parties
are not left fighting about such mat-
ters at a time when they may not be
inclined to agree to anything
In both arrangements without
specific contractual provisions to
define and protect the new IP a
biotechnology company or phar-
maceutical company that uses a
CMO for development is at risk of
losing control of and possibly own-
ership of important improvements
to its drugs This article discusses
IP contractual provisions that
should be included in each type of
arrangement
Fee-For-service
development work
Traditionally CMOs perform fee-for-
service development work where
a biotechnology or pharmaceutical
company engages the CMO to per-
form this work for a fixed fee In this
type of arrangement the CMO is a
service provider and typically takes
no ownership interest in the drug or
product that is being developed or
in improvements to an existing drug
or product that is being tested or
developed The contract governing
the relationship nevertheless must
be clear about the IP rights that are
owned and licensed by each party
If the contract does not provide
for proper assignments of IP to the
biotechnology or pharmaceutical
company then it is likely that the
CMO will own any improvements
or other inventions that it develops
in the performance of the develop-
ment services even if that is not the
intent of the parties
Without signed written contracts
that state otherwise under United
States patent law the inventor of
a patentable invention or improve-
ment will own the invention or
improvement even if the inventor
is engaged to develop the invention
or the improvement for a customer
or other third party To ensure
that the biotechnology company or
pharmaceutical company obtains
all the patent and other IP rights
in developments inventions and
improvements created in the per-
formance of services by the CMO
the governing contract between the
biotechnology company or phar-
maceutical company and the CMO
must include written present assign-
ments of those IP rights from the
CMO to the company Indeed based
on recent cases it is crucial that the
assignment clause in the contract
be a ldquopresentrdquo assignment mean-
ing that it must state specifically
that the CMO ldquohereby assignshelliprdquo
rather than a clause stating that the
CMO ldquoagrees to assignrdquo rights in the
future Otherwise the contract will
be interpreted as a promise to assign
rights in the future and the bio
pharmaceutical company will have
to go back to the CMO at some later
point in time for a separate writ-
ten assignment of rights to obtain
all patent and other IP rights in the
developments
While it sounds logical and
straightforward that the CMO
would assign all inventions created
in the development work to its cus-
tomer it is not always that simple
in practice What if the CMO devel-
ops an improvement to its manu-
facturing process in the course of
the development work Most CMOs
will want to reserve ownership of
any improvements to the CMOrsquos
existing IP and confidential infor-
mation This position is not unrea-
sonable as long as the customer
ultimately has the rights it needs in
all new inventions including those
owned by the CMO to take the drug
forward through further develop-
ment and commercialization One
must sort out IP allocation by sub-
ject matter To achieve this allo-
cation the development contract
typically will state that each party
retains ownership of all IP that it
owns as of the date of the contract
(all pre-existing intellectual prop-
erty) It will also state that the cus-
tomer owns its proprietary drug
and all improvements to the drug
or the customerrsquos confidential infor-
mation developed by either or both
parties The development contract
also may state more generally that
the customer owns all inventions
improvements and IP rights related
to the customerrsquos drug With respect
to the CMO and its IP the develop-
ment contract may state that the
CMO owns all improvements to the
CMOrsquos manufacturing process and
to its other pre-existing intellectual
property Again this reservation is
not unreasonable The customer
however should determine whether
it requires access to those improve-
ments or inventions to complete the
development and commercialization
of its drug If such access is necessary
the customer should either negotiate
a license (which may be royalty-free
or royalty-based depending on the
circumstances) to use such improve-
ments or inventions to develop and
commercialize the drug or the cus-
tomer should negotiate the terms
under which the CMO will continue
to use the improvements or inven-
tions to perform development work
andor manufacture the drug for the
customer
In the fee-for-service arrange-
ment the assignment and licensing
of IP rights in new inventions and
improvements is the key intellectual
property issue Intellectual property
considerations become much more
complicated when the biotechnol-
34 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Intellectual Property
ogy or pharmaceutical company
partners with a CMO in the devel-
opment of a new drug or product
where the parties share development
costs and profits from commercial-
ization of the drug or product
cmo as collaborator
Although not as common as the
fee-for-service arrangement a CMO
may partner with a biotechnology
or pharmaceutical company in the
development and commercialization
of a drug or product Generally both
parties are bringing pre-existing IP
to the collaboration such as a drug
from a biopharmaceutical com-
pany and proprietary drug delivery
technology from the CMO In this
scenario the CMO is taking a long-
term interest and often a part-own-
ership interest in the success of the
drug product
Instead of getting paid an hourly
rate or fixed fee for development
work on the drug product the CMO
may share the cost of development
work with the biotechnology or
pharmaceutical partner in exchange
for a share of the profits when the
drug or product is commercialized
Other costs involved in the develop-
ment and commercialization of the
drug or product that may be shared
include the cost of patent prosecu-
tion and the cost of patent litigation
if the drug product is challenged or
if it is misappropriated or infringed
To secure its interest in the profits
from commercialization of the drug
product the CMO may want to take
an ownership interest in the intel-
lectual property rights in the drug
product All of these issues must be
carefully addressed in the develop-
ment contract to avoid both finan-
cial and IP disputes
As with the fee-for-serv ice
arrangement the parties must
allocate ownership of intellectual
property rights pertaining to the
drug product to be commercialized
These rights include both pre-exist-
ing IP rights and new inventions
and improvements developed in
the course of the development con-
tract As with the fee-for-service
arrangement the parties typically
will retain rights to their respec-
tive pre-existing IP Intellectual
property rights to new inventions
and improvements however may
be shared by giving each party a
co-ownership interest in the intel-
lectual property Alternatively such
rights may be allocated by inventor-
ship with each party taking owner-
ship of developments that it invents
and with the parties jointly own-
ing jointly developed inventions
As another alternative the IP rights
may be allocated by subject matter
as in the fee-for-service arrangement
with each party owning improve-
ments and inventions related to its
pre-existing IP regardless of which
party invents those improvements
and inventions
Depending on how the pat-
ent applications are drafted the
IP rights may be ldquosliced and dicedrdquo
more finely One party for example
could own patent rights for a drug
product for one indication while the
other party owns patent rights for
the same drug product for another
indication Decisions about how
to allocate the IP rights should be
made in consultation with intel-
lectual property counsel and must
take into account the manner in
which the drug will be commercial-
ized If one party for example is
to commercialize the product in
North America and Europe and
the other party is to commercialize
the product in the rest of the world
then either the patent ownership
should be allocated by territory or
the development contract should
include exclusive cross-licenses of
each partyrsquos rights in all the intel-
lectual property necessary to com-
mercialize the product with the first
party having an exclusive license to
commercialize the product in North
America and Europe and the second
party having an exclusive license to
commercialize the product in the
rest of the world
If the parties are going to share
ownership of the IP related to the
drug product then the develop-
ment contract also should specify
which party is responsible for pros-
ecuting and maintaining patents
on the drug product Regardless of
which party is responsible for patent
prosecution and maintenance the
other party should be consulted and
involved in key decisions regard-
ing patent prosecution and main-
tenance Unless there are multiple
patents for different indications that
will be commercialized exclusively
by one party and unless each party
has exclusive rights to commercial-
ize the drug product in particular
geographic areas it generally makes
sense for one party to take the pri-
mary responsibility for patent pros-
ecution and maintenance globally
with the other party consulting and
sharing in the cost of the prosecu-
tion and maintenance in accordance
with the profit sharing The party
that is not responsible for prosecu-
tion and maintenance should have
a contractual right to approve patent
counsel and review and approve pat-
ent filings office action responses
and other communications with
patent registries before they are filed
or submitted so that the parties
agree on the proper prosecution and
maintenance strategy
Likewise the development con-
tract should allocate the rights and
responsibilities for asserting and
defending the patents pertaining to
the product in litigation Often these
rights and responsibilities are allo-
cated by territory according to com-
mercialization rights If one party
for example has the exclusive right
to commercialize the drug product
wwwbiopharminternationalcom June 2015 BioPharm International eBook 35
Outsourcing Resources Intellectual Property
in the US then that party would
have the first right and responsibil-
ity to assert the patents on the drug
product against potential infringers
and defend the patents on the drug
product against infringement claims
in the US Likewise if one party has
the exclusive right to commercial-
ize the drug product for a particular
indication then that party would
have the first right and responsibility
to assert or defend the patents per-
taining to the product with respect
to that indication Both scenarios
can present challenges First some
courts will not recognize an exclu-
sive licensee as having standing to
assert a patent That court might
only allow the owner of the patent
(and not the exclusive licensee) to
bring a lawsuit asserting the patent
It is crucial therefore that contrac-
tual provisions relating to patent liti-
gation require the party that owns
the patent to cooperate in any litiga-
tion and to join the suit as a party if
necessary
Another potential problem is that
any litigation that asserts the pat-
ent is likely to draw a counterclaim
that the patent is invalid thus put-
ting the patent itself at risk of invali-
dation While one party might be
threatened by a potential infringer
in a particular market or for a partic-
ular indication and therefore might
want to assert the patent against the
potential infringer the other party
might not want to put the patent at
risk as to other markets and other
indications For these reasons the
contractual provisions pertaining
to patent litigation must be care-
fully drafted in consultation with
intellectual property counsel who
understands standing issues and
the potential areas for dispute The
contractual provisions also should
include dispute resolution provi-
sions for situations when the parties
do not agree on whether a patent
should be asserted
Finally while the parties may
want and expect their relationship
to continue for the full term of the
patents and the development con-
tract the parties must carefully
consider the IP ramifications of an
early termination of the develop-
ment contract and the relationship
particularly if the development con-
tract is terminated for breach If the
parties are sharing in the ownership
commercialization and profits gen-
erated by the drug product devel-
oped by the collaboration then
all of that must be unwound upon
termination The development
contract should be as specific as
possible with respect to the effect of
various types of termination on the
intellectual property and contin-
ued commercialization of the drug
product In particular the parties
may agree that if the development
contract is terminated due to breach
by one party then that breaching
party must relinquish and transfer
all of its rights with respect to the
drug product to the other party to
allow the non-breaching party to
continue the commercialization of
the drug product post-termination
Whether the necessary rights are
assigned or licensed whether the
terminated party should receive a
royalty for the transfer or license of
those rights and what if any pre-
existing IP is licensed to enable the
non-breaching party to continue
commercializing the drug product
are all key factors for negotiation
The development contract should
also address other types of termi-
nation such as termination for
insolvency and termination with-
out cause (ie if one party decides
it no longer wants to commercial-
ize the drug product) In each case
the effect of termination on the IP
rights should be carefully analyzed
and a competent IP counsel should
carefully draft post-termination
assignments and licenses
conclusion
While IP lawyers are not equipped
with crystal balls they can be
extremely helpful in analyzing par-
ticular development commercializa-
tion and post-termination scenarios
all of which affect IP in a drug devel-
opment arrangement Contractual
provisions related to IP must be
carefully drafted to align with the
strategic business objectives of any
relationship and particularly one
whose purpose is the development
and commercialization of intellec-
tual property Without a clear con-
tract each collaborator is at risk of
losing important rights bp
Ad Index
AJINOMOTO ALTHEA 21
AVID BIOSERVICES INC 15
CYTOVANCE BIOLOGICS 27
EMERGENT BIOSOLUTIONS 13
EUROFINS LANCASTER LABORATORIES 7
SAFC BIOSCIENCES SIGMA ALDRICH 17
THERMO FISHER SCIENTIFIC 23
TOSOH BIOSCIENCE 11
WATERS CORP 3
Company Page
![Page 30: OUOURT NG I C RESOURCESfiles.pharmtech.com/alfresco_images/pharma/2019/03/08/... · 2019-07-22 · VIDEO INTERVIEW Biologics Development and Manufacturing Trends: Part I ... Media](https://reader034.vdocuments.us/reader034/viewer/2022050113/5f4aca886c0d6724390eb040/html5/thumbnails/30.jpg)
30 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Cell Therapy
and manufacturing costs are cur-
rently prohibitive ldquoThe starting
points can vary dramaticallyrdquo
Grant says He recalls one cus-
tomer whose autologous process
ran to $80000 per patient in early
stage clinical trials Automation
he says could reduce costs by
40ndash90 depending on the ther-
apy involved
DevelopMent by Design
But before one can automate any
process one must understand it
NeoStem and PCT like a growing
number of companies are taking
the principle of quality by design
(QbD) to heart in their work
Mazzo arguably one of few
life-science company CEOs to
even articulate the QbD concept
explains that the company has
gone a step further and broadened
the International Conference on
Harmonization guidances adopted
by FDA into ldquodevelopment by
designrdquo (DbD)
ldquoWe say first consider the end-
point then take process as is and
understand its unit operations
Develop inputs and outputs and
discrete steps and define the pro-
cess in a way that promotes under-
standingrdquo he says
ldquoThis is challenging given prod-
uct complexity but there is a need
to understand the mechanism of
action very well so you put each
process in this overall envelope
of DbD and consider the cost of
goods scalability and sustainabil-
ityrdquo Preti adds ldquoYou consider the
process from the end only this
time each batch is an individual
patientrdquo
The critical part is defining and
measuring process needs he says
ldquoProduct definition is very impor-
tant particularly the quality target
product profilerdquo explains Brian
Hampson VP of manufacturing
development and engineering at
PCT in an Oct 22 2014 webcast
for the International Society for
Cell Therapy (3)
have the enD in MinD
Such t h ings a s for mulat ion
issues dosage potency impu-
rities residuals and microbial
assurance need to be thought out
clearly from the start Hampson
says as well as indications for
use geographic market projec-
tions cost-of-goods targets and
IP issues
The profile needs to be a liv-
ing document that changes as the
product takes shape Hampson
says There is a tendency for peo-
ple in the industry to ignore the
product profile until they have
all the answers says Hampson
ldquoInstead it needs to be developed
really early even when you donrsquot
have all or even many of the
answers hellip you can leave them
as blanks and continue to review
add to and updaterdquo
The result is not only a tool for
better understanding the prod-
uct process and mechanism of
action but a communication tool
for stakeholders
When to start DbD for cell ther-
apies ldquoThe temptation is to begin
later in the game when you need
reasonable COGS and you need
to be sure of sustainable manu-
facturingrdquo says Hampson ldquoThe
key thing is comparability and
anticipating its implications early
in the clinical program It needs
to be flexible at the early stagesrdquo
Hampson says ldquoBut as you near
Phase III you need to lock in your
equipment evolves
In the bioreactor area there is great interest in moving from 2-D to 3-D processing to enable the processing of the cell volumes required something that companies such as Israelrsquos Pluristem have been doing for some time
Equipment designer Instrom is partnering with companies including BRTI Life Sciences to focus on 3-D cell matrix technologies developed by Dr John Brekke EMD Millipore has been partnering with PharmaCell BV to use its Mobius bioreactor platform to expand and harvest HepRG cells GE Sciences is also evaluating Wave and other systems and set up a center of excellence in Wales recently
In other equipment areas Pall Corp has been partnering with CMDG LLC on cord blood processing technology Following are some of the equipment manufacturers and systems applied in cell therapy development and manufacturing
bull Beckman Coulter bull Corning Cell Stacks and Cell Cube
bull EMD Millipore bull GE Biosciences
bull Thermo Scientificrsquos Nunc Cell Factories bull Pall Corp
wwwbiopharminternationalcom June 2015 BioPharm International eBook 31
Outsourcing Resources Cell Therapy
processrdquo Table II summarizes issues
and points where changes will be
easier
Thus Hampson suggests that
companies whether work ing
with CDMOs or in house think
through such issues as cost of
goods scale and sustainabil-
ity much earlier than they typi-
cally do today ldquoYou donrsquot need to
spend money on these issues but
you do need to think about themrdquo
Hampson says ldquoQuality must be
a key issue even at Phase II trials
and early action pays off laterrdquo
In addition he suggests that
companies th ink about the
e nt i r e p r o c e s s c o mp r e he n -
sively ldquoThere is often a tendency
to focus on the core processing
stepsrdquo Hampson says ldquoBut you
really need to think about every-
thing from collection of mate-
rial through to administration
of product to the patient and all
steps in betweenrdquo
For ce l l therapies d ispos -
able equipment and closed pro-
cesses can be an effective way to
reduce costs and improve quality
and compliance ldquoThey can allow
you to isolate different processes
so that they can share a Class
100000 cleanroom environmentrdquo
Hampson says
ldquoInvesting in automated informa-
tion management can also pay offrdquo
he says ldquowhere an electronic batch
record system that is fully validated
can enable release-by-exception
reducing error documentation
time and overall quality assurance
costsrdquo Hampson says
In addition he notes it is
important to look at costs compre-
hensively an increase in one cost
can for example reduce overhead
improve process sustainability and
cost of goods Table III outlines the
issues
regulations evolve
Cell therapy is still a new area
for regulators and as Preti says
some guidelines are clear and oth-
ers arenrsquot ldquoDevelopment by design
is needed throughout the pro-
cess but the piece we still struggle
with the most is mode of action
(MOA) and product characteriza-
tion Regulatory agencies under-
stand that it is difficult to pinpoint
MOArdquo
Preti emphasizes the importance
of working with regulators ldquoYou
can be in a position to inform and
influence regulations as products
are developedrdquo he says
For any company moving into
this brave new world top-level ques-
tions are needed Preti says empha-
sizing the following ldquoDo you have
an understanding of scale Can you
scale up from very small Can you
characterize the process and control
it for reliability and qualityrdquo
In the stem cell area in particu-
lar this is crucial Preti said since
the product relies heavily on the
process ldquoManufacturing can be
thought of as patient administra-
tion It cannot be separated in
the same way that it can for tra-
ditional medicinesrdquo For contract
suppliers he adds demonstrated
success will be important and
sponsors should consider whether
a prospective partner will be able
to stay with them for the long run
referenCes 1 P Hourd et al Regulatory Challenges
for the Manufacture and Scale-
Out of Autologous Cell Therapies
Massachusetts General Hospital
(Cambridge MA 2013)
2 S Farid et al Biotechnol Bioeng
111(1) 69-83 (January 2014)
3 R Grant Building Deliverable Cell
Therapeutics A Methodical Approach
to Manufacturing Development
(Webinar Oct 22 2014) bp
source invetech
Justifcation driversChange in cost
doseDevelopment
estimate
Unit Op Ref
Change decription
Comparability risk
Quality COGs Scale Sustainability LaborMaterials outplant
Cost Time
P-2 Process change 1 Medium X X darr $ $$$ TT
P-3 Process change 2 High X X X darr $$$ $$$$ TTT
P-4 Process change 3 Low X X darr $$ $$ TTT
P-2 Process change 4 Low X $$ T
QC-4 In-house QC test None X TT
QA-1Electronic Batch
RecordNone X X X
darr $$$$
TTTT
Table III Process changes timing and comparability risks cogs is cost of goods Qc is quality control
32 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Intellectual Property
Protecting Intellectual Property
in Engagements with CMOs
Important IP contractual provisions should be included when working with CMOs
Jennifer L CoLLins
Biotechnology and pharmaceutical companies
often engage contract CMOs to assist with
the development of their drugs This type
of arrangement naturally involves the devel-
opment of intellectual property (IP) so it is
important for both the CMO and the sponsor to iden-
tify pre-existing intellectual property and also define
how rights to new IP will be allocated protected and
enforced by and between the companies
If the arrangement with the CMO is a traditional fee-
for-service arrangement where the company pays the
CMO service fees to perform development work on its
behalf then generally all new IP (other than improve-
ments to the CMOrsquos manufacturing technology) will be
owned by the biotechnology or pharmaceutical com-
pany that engaged the CMO On the other hand if the
arrangement between the CMO and the biotechnology
or pharmaceutical company is more of a collaborative
arrangement where both parties share the costs of devel-
opment as well as any profits from the commercializa-
tion then IP concerns become much more complicated
In that case in addition to describing which party will
Jennifer L CoLLins is a technology and licensing attorney with Morningstar Law Group jcollinsmorningstarlawgroupcom
Fa
na
tic S
tud
ioG
ett
y Im
ag
es
wwwbiopharminternationalcom June 2015 BioPharm International eBook 33
Outsourcing Resources Intellectual Property
own the new IP the contract should
sort out which party will be respon-
sible for obtaining and maintaining
patents on the new IP controlling
litigation against infringers and
defending the IP against challenges
In addition the parties should agree
upfront on how the IP may be used
by each party following various ter-
mination events so that the parties
are not left fighting about such mat-
ters at a time when they may not be
inclined to agree to anything
In both arrangements without
specific contractual provisions to
define and protect the new IP a
biotechnology company or phar-
maceutical company that uses a
CMO for development is at risk of
losing control of and possibly own-
ership of important improvements
to its drugs This article discusses
IP contractual provisions that
should be included in each type of
arrangement
Fee-For-service
development work
Traditionally CMOs perform fee-for-
service development work where
a biotechnology or pharmaceutical
company engages the CMO to per-
form this work for a fixed fee In this
type of arrangement the CMO is a
service provider and typically takes
no ownership interest in the drug or
product that is being developed or
in improvements to an existing drug
or product that is being tested or
developed The contract governing
the relationship nevertheless must
be clear about the IP rights that are
owned and licensed by each party
If the contract does not provide
for proper assignments of IP to the
biotechnology or pharmaceutical
company then it is likely that the
CMO will own any improvements
or other inventions that it develops
in the performance of the develop-
ment services even if that is not the
intent of the parties
Without signed written contracts
that state otherwise under United
States patent law the inventor of
a patentable invention or improve-
ment will own the invention or
improvement even if the inventor
is engaged to develop the invention
or the improvement for a customer
or other third party To ensure
that the biotechnology company or
pharmaceutical company obtains
all the patent and other IP rights
in developments inventions and
improvements created in the per-
formance of services by the CMO
the governing contract between the
biotechnology company or phar-
maceutical company and the CMO
must include written present assign-
ments of those IP rights from the
CMO to the company Indeed based
on recent cases it is crucial that the
assignment clause in the contract
be a ldquopresentrdquo assignment mean-
ing that it must state specifically
that the CMO ldquohereby assignshelliprdquo
rather than a clause stating that the
CMO ldquoagrees to assignrdquo rights in the
future Otherwise the contract will
be interpreted as a promise to assign
rights in the future and the bio
pharmaceutical company will have
to go back to the CMO at some later
point in time for a separate writ-
ten assignment of rights to obtain
all patent and other IP rights in the
developments
While it sounds logical and
straightforward that the CMO
would assign all inventions created
in the development work to its cus-
tomer it is not always that simple
in practice What if the CMO devel-
ops an improvement to its manu-
facturing process in the course of
the development work Most CMOs
will want to reserve ownership of
any improvements to the CMOrsquos
existing IP and confidential infor-
mation This position is not unrea-
sonable as long as the customer
ultimately has the rights it needs in
all new inventions including those
owned by the CMO to take the drug
forward through further develop-
ment and commercialization One
must sort out IP allocation by sub-
ject matter To achieve this allo-
cation the development contract
typically will state that each party
retains ownership of all IP that it
owns as of the date of the contract
(all pre-existing intellectual prop-
erty) It will also state that the cus-
tomer owns its proprietary drug
and all improvements to the drug
or the customerrsquos confidential infor-
mation developed by either or both
parties The development contract
also may state more generally that
the customer owns all inventions
improvements and IP rights related
to the customerrsquos drug With respect
to the CMO and its IP the develop-
ment contract may state that the
CMO owns all improvements to the
CMOrsquos manufacturing process and
to its other pre-existing intellectual
property Again this reservation is
not unreasonable The customer
however should determine whether
it requires access to those improve-
ments or inventions to complete the
development and commercialization
of its drug If such access is necessary
the customer should either negotiate
a license (which may be royalty-free
or royalty-based depending on the
circumstances) to use such improve-
ments or inventions to develop and
commercialize the drug or the cus-
tomer should negotiate the terms
under which the CMO will continue
to use the improvements or inven-
tions to perform development work
andor manufacture the drug for the
customer
In the fee-for-service arrange-
ment the assignment and licensing
of IP rights in new inventions and
improvements is the key intellectual
property issue Intellectual property
considerations become much more
complicated when the biotechnol-
34 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Intellectual Property
ogy or pharmaceutical company
partners with a CMO in the devel-
opment of a new drug or product
where the parties share development
costs and profits from commercial-
ization of the drug or product
cmo as collaborator
Although not as common as the
fee-for-service arrangement a CMO
may partner with a biotechnology
or pharmaceutical company in the
development and commercialization
of a drug or product Generally both
parties are bringing pre-existing IP
to the collaboration such as a drug
from a biopharmaceutical com-
pany and proprietary drug delivery
technology from the CMO In this
scenario the CMO is taking a long-
term interest and often a part-own-
ership interest in the success of the
drug product
Instead of getting paid an hourly
rate or fixed fee for development
work on the drug product the CMO
may share the cost of development
work with the biotechnology or
pharmaceutical partner in exchange
for a share of the profits when the
drug or product is commercialized
Other costs involved in the develop-
ment and commercialization of the
drug or product that may be shared
include the cost of patent prosecu-
tion and the cost of patent litigation
if the drug product is challenged or
if it is misappropriated or infringed
To secure its interest in the profits
from commercialization of the drug
product the CMO may want to take
an ownership interest in the intel-
lectual property rights in the drug
product All of these issues must be
carefully addressed in the develop-
ment contract to avoid both finan-
cial and IP disputes
As with the fee-for-serv ice
arrangement the parties must
allocate ownership of intellectual
property rights pertaining to the
drug product to be commercialized
These rights include both pre-exist-
ing IP rights and new inventions
and improvements developed in
the course of the development con-
tract As with the fee-for-service
arrangement the parties typically
will retain rights to their respec-
tive pre-existing IP Intellectual
property rights to new inventions
and improvements however may
be shared by giving each party a
co-ownership interest in the intel-
lectual property Alternatively such
rights may be allocated by inventor-
ship with each party taking owner-
ship of developments that it invents
and with the parties jointly own-
ing jointly developed inventions
As another alternative the IP rights
may be allocated by subject matter
as in the fee-for-service arrangement
with each party owning improve-
ments and inventions related to its
pre-existing IP regardless of which
party invents those improvements
and inventions
Depending on how the pat-
ent applications are drafted the
IP rights may be ldquosliced and dicedrdquo
more finely One party for example
could own patent rights for a drug
product for one indication while the
other party owns patent rights for
the same drug product for another
indication Decisions about how
to allocate the IP rights should be
made in consultation with intel-
lectual property counsel and must
take into account the manner in
which the drug will be commercial-
ized If one party for example is
to commercialize the product in
North America and Europe and
the other party is to commercialize
the product in the rest of the world
then either the patent ownership
should be allocated by territory or
the development contract should
include exclusive cross-licenses of
each partyrsquos rights in all the intel-
lectual property necessary to com-
mercialize the product with the first
party having an exclusive license to
commercialize the product in North
America and Europe and the second
party having an exclusive license to
commercialize the product in the
rest of the world
If the parties are going to share
ownership of the IP related to the
drug product then the develop-
ment contract also should specify
which party is responsible for pros-
ecuting and maintaining patents
on the drug product Regardless of
which party is responsible for patent
prosecution and maintenance the
other party should be consulted and
involved in key decisions regard-
ing patent prosecution and main-
tenance Unless there are multiple
patents for different indications that
will be commercialized exclusively
by one party and unless each party
has exclusive rights to commercial-
ize the drug product in particular
geographic areas it generally makes
sense for one party to take the pri-
mary responsibility for patent pros-
ecution and maintenance globally
with the other party consulting and
sharing in the cost of the prosecu-
tion and maintenance in accordance
with the profit sharing The party
that is not responsible for prosecu-
tion and maintenance should have
a contractual right to approve patent
counsel and review and approve pat-
ent filings office action responses
and other communications with
patent registries before they are filed
or submitted so that the parties
agree on the proper prosecution and
maintenance strategy
Likewise the development con-
tract should allocate the rights and
responsibilities for asserting and
defending the patents pertaining to
the product in litigation Often these
rights and responsibilities are allo-
cated by territory according to com-
mercialization rights If one party
for example has the exclusive right
to commercialize the drug product
wwwbiopharminternationalcom June 2015 BioPharm International eBook 35
Outsourcing Resources Intellectual Property
in the US then that party would
have the first right and responsibil-
ity to assert the patents on the drug
product against potential infringers
and defend the patents on the drug
product against infringement claims
in the US Likewise if one party has
the exclusive right to commercial-
ize the drug product for a particular
indication then that party would
have the first right and responsibility
to assert or defend the patents per-
taining to the product with respect
to that indication Both scenarios
can present challenges First some
courts will not recognize an exclu-
sive licensee as having standing to
assert a patent That court might
only allow the owner of the patent
(and not the exclusive licensee) to
bring a lawsuit asserting the patent
It is crucial therefore that contrac-
tual provisions relating to patent liti-
gation require the party that owns
the patent to cooperate in any litiga-
tion and to join the suit as a party if
necessary
Another potential problem is that
any litigation that asserts the pat-
ent is likely to draw a counterclaim
that the patent is invalid thus put-
ting the patent itself at risk of invali-
dation While one party might be
threatened by a potential infringer
in a particular market or for a partic-
ular indication and therefore might
want to assert the patent against the
potential infringer the other party
might not want to put the patent at
risk as to other markets and other
indications For these reasons the
contractual provisions pertaining
to patent litigation must be care-
fully drafted in consultation with
intellectual property counsel who
understands standing issues and
the potential areas for dispute The
contractual provisions also should
include dispute resolution provi-
sions for situations when the parties
do not agree on whether a patent
should be asserted
Finally while the parties may
want and expect their relationship
to continue for the full term of the
patents and the development con-
tract the parties must carefully
consider the IP ramifications of an
early termination of the develop-
ment contract and the relationship
particularly if the development con-
tract is terminated for breach If the
parties are sharing in the ownership
commercialization and profits gen-
erated by the drug product devel-
oped by the collaboration then
all of that must be unwound upon
termination The development
contract should be as specific as
possible with respect to the effect of
various types of termination on the
intellectual property and contin-
ued commercialization of the drug
product In particular the parties
may agree that if the development
contract is terminated due to breach
by one party then that breaching
party must relinquish and transfer
all of its rights with respect to the
drug product to the other party to
allow the non-breaching party to
continue the commercialization of
the drug product post-termination
Whether the necessary rights are
assigned or licensed whether the
terminated party should receive a
royalty for the transfer or license of
those rights and what if any pre-
existing IP is licensed to enable the
non-breaching party to continue
commercializing the drug product
are all key factors for negotiation
The development contract should
also address other types of termi-
nation such as termination for
insolvency and termination with-
out cause (ie if one party decides
it no longer wants to commercial-
ize the drug product) In each case
the effect of termination on the IP
rights should be carefully analyzed
and a competent IP counsel should
carefully draft post-termination
assignments and licenses
conclusion
While IP lawyers are not equipped
with crystal balls they can be
extremely helpful in analyzing par-
ticular development commercializa-
tion and post-termination scenarios
all of which affect IP in a drug devel-
opment arrangement Contractual
provisions related to IP must be
carefully drafted to align with the
strategic business objectives of any
relationship and particularly one
whose purpose is the development
and commercialization of intellec-
tual property Without a clear con-
tract each collaborator is at risk of
losing important rights bp
Ad Index
AJINOMOTO ALTHEA 21
AVID BIOSERVICES INC 15
CYTOVANCE BIOLOGICS 27
EMERGENT BIOSOLUTIONS 13
EUROFINS LANCASTER LABORATORIES 7
SAFC BIOSCIENCES SIGMA ALDRICH 17
THERMO FISHER SCIENTIFIC 23
TOSOH BIOSCIENCE 11
WATERS CORP 3
Company Page
![Page 31: OUOURT NG I C RESOURCESfiles.pharmtech.com/alfresco_images/pharma/2019/03/08/... · 2019-07-22 · VIDEO INTERVIEW Biologics Development and Manufacturing Trends: Part I ... Media](https://reader034.vdocuments.us/reader034/viewer/2022050113/5f4aca886c0d6724390eb040/html5/thumbnails/31.jpg)
wwwbiopharminternationalcom June 2015 BioPharm International eBook 31
Outsourcing Resources Cell Therapy
processrdquo Table II summarizes issues
and points where changes will be
easier
Thus Hampson suggests that
companies whether work ing
with CDMOs or in house think
through such issues as cost of
goods scale and sustainabil-
ity much earlier than they typi-
cally do today ldquoYou donrsquot need to
spend money on these issues but
you do need to think about themrdquo
Hampson says ldquoQuality must be
a key issue even at Phase II trials
and early action pays off laterrdquo
In addition he suggests that
companies th ink about the
e nt i r e p r o c e s s c o mp r e he n -
sively ldquoThere is often a tendency
to focus on the core processing
stepsrdquo Hampson says ldquoBut you
really need to think about every-
thing from collection of mate-
rial through to administration
of product to the patient and all
steps in betweenrdquo
For ce l l therapies d ispos -
able equipment and closed pro-
cesses can be an effective way to
reduce costs and improve quality
and compliance ldquoThey can allow
you to isolate different processes
so that they can share a Class
100000 cleanroom environmentrdquo
Hampson says
ldquoInvesting in automated informa-
tion management can also pay offrdquo
he says ldquowhere an electronic batch
record system that is fully validated
can enable release-by-exception
reducing error documentation
time and overall quality assurance
costsrdquo Hampson says
In addition he notes it is
important to look at costs compre-
hensively an increase in one cost
can for example reduce overhead
improve process sustainability and
cost of goods Table III outlines the
issues
regulations evolve
Cell therapy is still a new area
for regulators and as Preti says
some guidelines are clear and oth-
ers arenrsquot ldquoDevelopment by design
is needed throughout the pro-
cess but the piece we still struggle
with the most is mode of action
(MOA) and product characteriza-
tion Regulatory agencies under-
stand that it is difficult to pinpoint
MOArdquo
Preti emphasizes the importance
of working with regulators ldquoYou
can be in a position to inform and
influence regulations as products
are developedrdquo he says
For any company moving into
this brave new world top-level ques-
tions are needed Preti says empha-
sizing the following ldquoDo you have
an understanding of scale Can you
scale up from very small Can you
characterize the process and control
it for reliability and qualityrdquo
In the stem cell area in particu-
lar this is crucial Preti said since
the product relies heavily on the
process ldquoManufacturing can be
thought of as patient administra-
tion It cannot be separated in
the same way that it can for tra-
ditional medicinesrdquo For contract
suppliers he adds demonstrated
success will be important and
sponsors should consider whether
a prospective partner will be able
to stay with them for the long run
referenCes 1 P Hourd et al Regulatory Challenges
for the Manufacture and Scale-
Out of Autologous Cell Therapies
Massachusetts General Hospital
(Cambridge MA 2013)
2 S Farid et al Biotechnol Bioeng
111(1) 69-83 (January 2014)
3 R Grant Building Deliverable Cell
Therapeutics A Methodical Approach
to Manufacturing Development
(Webinar Oct 22 2014) bp
source invetech
Justifcation driversChange in cost
doseDevelopment
estimate
Unit Op Ref
Change decription
Comparability risk
Quality COGs Scale Sustainability LaborMaterials outplant
Cost Time
P-2 Process change 1 Medium X X darr $ $$$ TT
P-3 Process change 2 High X X X darr $$$ $$$$ TTT
P-4 Process change 3 Low X X darr $$ $$ TTT
P-2 Process change 4 Low X $$ T
QC-4 In-house QC test None X TT
QA-1Electronic Batch
RecordNone X X X
darr $$$$
TTTT
Table III Process changes timing and comparability risks cogs is cost of goods Qc is quality control
32 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Intellectual Property
Protecting Intellectual Property
in Engagements with CMOs
Important IP contractual provisions should be included when working with CMOs
Jennifer L CoLLins
Biotechnology and pharmaceutical companies
often engage contract CMOs to assist with
the development of their drugs This type
of arrangement naturally involves the devel-
opment of intellectual property (IP) so it is
important for both the CMO and the sponsor to iden-
tify pre-existing intellectual property and also define
how rights to new IP will be allocated protected and
enforced by and between the companies
If the arrangement with the CMO is a traditional fee-
for-service arrangement where the company pays the
CMO service fees to perform development work on its
behalf then generally all new IP (other than improve-
ments to the CMOrsquos manufacturing technology) will be
owned by the biotechnology or pharmaceutical com-
pany that engaged the CMO On the other hand if the
arrangement between the CMO and the biotechnology
or pharmaceutical company is more of a collaborative
arrangement where both parties share the costs of devel-
opment as well as any profits from the commercializa-
tion then IP concerns become much more complicated
In that case in addition to describing which party will
Jennifer L CoLLins is a technology and licensing attorney with Morningstar Law Group jcollinsmorningstarlawgroupcom
Fa
na
tic S
tud
ioG
ett
y Im
ag
es
wwwbiopharminternationalcom June 2015 BioPharm International eBook 33
Outsourcing Resources Intellectual Property
own the new IP the contract should
sort out which party will be respon-
sible for obtaining and maintaining
patents on the new IP controlling
litigation against infringers and
defending the IP against challenges
In addition the parties should agree
upfront on how the IP may be used
by each party following various ter-
mination events so that the parties
are not left fighting about such mat-
ters at a time when they may not be
inclined to agree to anything
In both arrangements without
specific contractual provisions to
define and protect the new IP a
biotechnology company or phar-
maceutical company that uses a
CMO for development is at risk of
losing control of and possibly own-
ership of important improvements
to its drugs This article discusses
IP contractual provisions that
should be included in each type of
arrangement
Fee-For-service
development work
Traditionally CMOs perform fee-for-
service development work where
a biotechnology or pharmaceutical
company engages the CMO to per-
form this work for a fixed fee In this
type of arrangement the CMO is a
service provider and typically takes
no ownership interest in the drug or
product that is being developed or
in improvements to an existing drug
or product that is being tested or
developed The contract governing
the relationship nevertheless must
be clear about the IP rights that are
owned and licensed by each party
If the contract does not provide
for proper assignments of IP to the
biotechnology or pharmaceutical
company then it is likely that the
CMO will own any improvements
or other inventions that it develops
in the performance of the develop-
ment services even if that is not the
intent of the parties
Without signed written contracts
that state otherwise under United
States patent law the inventor of
a patentable invention or improve-
ment will own the invention or
improvement even if the inventor
is engaged to develop the invention
or the improvement for a customer
or other third party To ensure
that the biotechnology company or
pharmaceutical company obtains
all the patent and other IP rights
in developments inventions and
improvements created in the per-
formance of services by the CMO
the governing contract between the
biotechnology company or phar-
maceutical company and the CMO
must include written present assign-
ments of those IP rights from the
CMO to the company Indeed based
on recent cases it is crucial that the
assignment clause in the contract
be a ldquopresentrdquo assignment mean-
ing that it must state specifically
that the CMO ldquohereby assignshelliprdquo
rather than a clause stating that the
CMO ldquoagrees to assignrdquo rights in the
future Otherwise the contract will
be interpreted as a promise to assign
rights in the future and the bio
pharmaceutical company will have
to go back to the CMO at some later
point in time for a separate writ-
ten assignment of rights to obtain
all patent and other IP rights in the
developments
While it sounds logical and
straightforward that the CMO
would assign all inventions created
in the development work to its cus-
tomer it is not always that simple
in practice What if the CMO devel-
ops an improvement to its manu-
facturing process in the course of
the development work Most CMOs
will want to reserve ownership of
any improvements to the CMOrsquos
existing IP and confidential infor-
mation This position is not unrea-
sonable as long as the customer
ultimately has the rights it needs in
all new inventions including those
owned by the CMO to take the drug
forward through further develop-
ment and commercialization One
must sort out IP allocation by sub-
ject matter To achieve this allo-
cation the development contract
typically will state that each party
retains ownership of all IP that it
owns as of the date of the contract
(all pre-existing intellectual prop-
erty) It will also state that the cus-
tomer owns its proprietary drug
and all improvements to the drug
or the customerrsquos confidential infor-
mation developed by either or both
parties The development contract
also may state more generally that
the customer owns all inventions
improvements and IP rights related
to the customerrsquos drug With respect
to the CMO and its IP the develop-
ment contract may state that the
CMO owns all improvements to the
CMOrsquos manufacturing process and
to its other pre-existing intellectual
property Again this reservation is
not unreasonable The customer
however should determine whether
it requires access to those improve-
ments or inventions to complete the
development and commercialization
of its drug If such access is necessary
the customer should either negotiate
a license (which may be royalty-free
or royalty-based depending on the
circumstances) to use such improve-
ments or inventions to develop and
commercialize the drug or the cus-
tomer should negotiate the terms
under which the CMO will continue
to use the improvements or inven-
tions to perform development work
andor manufacture the drug for the
customer
In the fee-for-service arrange-
ment the assignment and licensing
of IP rights in new inventions and
improvements is the key intellectual
property issue Intellectual property
considerations become much more
complicated when the biotechnol-
34 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Intellectual Property
ogy or pharmaceutical company
partners with a CMO in the devel-
opment of a new drug or product
where the parties share development
costs and profits from commercial-
ization of the drug or product
cmo as collaborator
Although not as common as the
fee-for-service arrangement a CMO
may partner with a biotechnology
or pharmaceutical company in the
development and commercialization
of a drug or product Generally both
parties are bringing pre-existing IP
to the collaboration such as a drug
from a biopharmaceutical com-
pany and proprietary drug delivery
technology from the CMO In this
scenario the CMO is taking a long-
term interest and often a part-own-
ership interest in the success of the
drug product
Instead of getting paid an hourly
rate or fixed fee for development
work on the drug product the CMO
may share the cost of development
work with the biotechnology or
pharmaceutical partner in exchange
for a share of the profits when the
drug or product is commercialized
Other costs involved in the develop-
ment and commercialization of the
drug or product that may be shared
include the cost of patent prosecu-
tion and the cost of patent litigation
if the drug product is challenged or
if it is misappropriated or infringed
To secure its interest in the profits
from commercialization of the drug
product the CMO may want to take
an ownership interest in the intel-
lectual property rights in the drug
product All of these issues must be
carefully addressed in the develop-
ment contract to avoid both finan-
cial and IP disputes
As with the fee-for-serv ice
arrangement the parties must
allocate ownership of intellectual
property rights pertaining to the
drug product to be commercialized
These rights include both pre-exist-
ing IP rights and new inventions
and improvements developed in
the course of the development con-
tract As with the fee-for-service
arrangement the parties typically
will retain rights to their respec-
tive pre-existing IP Intellectual
property rights to new inventions
and improvements however may
be shared by giving each party a
co-ownership interest in the intel-
lectual property Alternatively such
rights may be allocated by inventor-
ship with each party taking owner-
ship of developments that it invents
and with the parties jointly own-
ing jointly developed inventions
As another alternative the IP rights
may be allocated by subject matter
as in the fee-for-service arrangement
with each party owning improve-
ments and inventions related to its
pre-existing IP regardless of which
party invents those improvements
and inventions
Depending on how the pat-
ent applications are drafted the
IP rights may be ldquosliced and dicedrdquo
more finely One party for example
could own patent rights for a drug
product for one indication while the
other party owns patent rights for
the same drug product for another
indication Decisions about how
to allocate the IP rights should be
made in consultation with intel-
lectual property counsel and must
take into account the manner in
which the drug will be commercial-
ized If one party for example is
to commercialize the product in
North America and Europe and
the other party is to commercialize
the product in the rest of the world
then either the patent ownership
should be allocated by territory or
the development contract should
include exclusive cross-licenses of
each partyrsquos rights in all the intel-
lectual property necessary to com-
mercialize the product with the first
party having an exclusive license to
commercialize the product in North
America and Europe and the second
party having an exclusive license to
commercialize the product in the
rest of the world
If the parties are going to share
ownership of the IP related to the
drug product then the develop-
ment contract also should specify
which party is responsible for pros-
ecuting and maintaining patents
on the drug product Regardless of
which party is responsible for patent
prosecution and maintenance the
other party should be consulted and
involved in key decisions regard-
ing patent prosecution and main-
tenance Unless there are multiple
patents for different indications that
will be commercialized exclusively
by one party and unless each party
has exclusive rights to commercial-
ize the drug product in particular
geographic areas it generally makes
sense for one party to take the pri-
mary responsibility for patent pros-
ecution and maintenance globally
with the other party consulting and
sharing in the cost of the prosecu-
tion and maintenance in accordance
with the profit sharing The party
that is not responsible for prosecu-
tion and maintenance should have
a contractual right to approve patent
counsel and review and approve pat-
ent filings office action responses
and other communications with
patent registries before they are filed
or submitted so that the parties
agree on the proper prosecution and
maintenance strategy
Likewise the development con-
tract should allocate the rights and
responsibilities for asserting and
defending the patents pertaining to
the product in litigation Often these
rights and responsibilities are allo-
cated by territory according to com-
mercialization rights If one party
for example has the exclusive right
to commercialize the drug product
wwwbiopharminternationalcom June 2015 BioPharm International eBook 35
Outsourcing Resources Intellectual Property
in the US then that party would
have the first right and responsibil-
ity to assert the patents on the drug
product against potential infringers
and defend the patents on the drug
product against infringement claims
in the US Likewise if one party has
the exclusive right to commercial-
ize the drug product for a particular
indication then that party would
have the first right and responsibility
to assert or defend the patents per-
taining to the product with respect
to that indication Both scenarios
can present challenges First some
courts will not recognize an exclu-
sive licensee as having standing to
assert a patent That court might
only allow the owner of the patent
(and not the exclusive licensee) to
bring a lawsuit asserting the patent
It is crucial therefore that contrac-
tual provisions relating to patent liti-
gation require the party that owns
the patent to cooperate in any litiga-
tion and to join the suit as a party if
necessary
Another potential problem is that
any litigation that asserts the pat-
ent is likely to draw a counterclaim
that the patent is invalid thus put-
ting the patent itself at risk of invali-
dation While one party might be
threatened by a potential infringer
in a particular market or for a partic-
ular indication and therefore might
want to assert the patent against the
potential infringer the other party
might not want to put the patent at
risk as to other markets and other
indications For these reasons the
contractual provisions pertaining
to patent litigation must be care-
fully drafted in consultation with
intellectual property counsel who
understands standing issues and
the potential areas for dispute The
contractual provisions also should
include dispute resolution provi-
sions for situations when the parties
do not agree on whether a patent
should be asserted
Finally while the parties may
want and expect their relationship
to continue for the full term of the
patents and the development con-
tract the parties must carefully
consider the IP ramifications of an
early termination of the develop-
ment contract and the relationship
particularly if the development con-
tract is terminated for breach If the
parties are sharing in the ownership
commercialization and profits gen-
erated by the drug product devel-
oped by the collaboration then
all of that must be unwound upon
termination The development
contract should be as specific as
possible with respect to the effect of
various types of termination on the
intellectual property and contin-
ued commercialization of the drug
product In particular the parties
may agree that if the development
contract is terminated due to breach
by one party then that breaching
party must relinquish and transfer
all of its rights with respect to the
drug product to the other party to
allow the non-breaching party to
continue the commercialization of
the drug product post-termination
Whether the necessary rights are
assigned or licensed whether the
terminated party should receive a
royalty for the transfer or license of
those rights and what if any pre-
existing IP is licensed to enable the
non-breaching party to continue
commercializing the drug product
are all key factors for negotiation
The development contract should
also address other types of termi-
nation such as termination for
insolvency and termination with-
out cause (ie if one party decides
it no longer wants to commercial-
ize the drug product) In each case
the effect of termination on the IP
rights should be carefully analyzed
and a competent IP counsel should
carefully draft post-termination
assignments and licenses
conclusion
While IP lawyers are not equipped
with crystal balls they can be
extremely helpful in analyzing par-
ticular development commercializa-
tion and post-termination scenarios
all of which affect IP in a drug devel-
opment arrangement Contractual
provisions related to IP must be
carefully drafted to align with the
strategic business objectives of any
relationship and particularly one
whose purpose is the development
and commercialization of intellec-
tual property Without a clear con-
tract each collaborator is at risk of
losing important rights bp
Ad Index
AJINOMOTO ALTHEA 21
AVID BIOSERVICES INC 15
CYTOVANCE BIOLOGICS 27
EMERGENT BIOSOLUTIONS 13
EUROFINS LANCASTER LABORATORIES 7
SAFC BIOSCIENCES SIGMA ALDRICH 17
THERMO FISHER SCIENTIFIC 23
TOSOH BIOSCIENCE 11
WATERS CORP 3
Company Page
![Page 32: OUOURT NG I C RESOURCESfiles.pharmtech.com/alfresco_images/pharma/2019/03/08/... · 2019-07-22 · VIDEO INTERVIEW Biologics Development and Manufacturing Trends: Part I ... Media](https://reader034.vdocuments.us/reader034/viewer/2022050113/5f4aca886c0d6724390eb040/html5/thumbnails/32.jpg)
32 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Intellectual Property
Protecting Intellectual Property
in Engagements with CMOs
Important IP contractual provisions should be included when working with CMOs
Jennifer L CoLLins
Biotechnology and pharmaceutical companies
often engage contract CMOs to assist with
the development of their drugs This type
of arrangement naturally involves the devel-
opment of intellectual property (IP) so it is
important for both the CMO and the sponsor to iden-
tify pre-existing intellectual property and also define
how rights to new IP will be allocated protected and
enforced by and between the companies
If the arrangement with the CMO is a traditional fee-
for-service arrangement where the company pays the
CMO service fees to perform development work on its
behalf then generally all new IP (other than improve-
ments to the CMOrsquos manufacturing technology) will be
owned by the biotechnology or pharmaceutical com-
pany that engaged the CMO On the other hand if the
arrangement between the CMO and the biotechnology
or pharmaceutical company is more of a collaborative
arrangement where both parties share the costs of devel-
opment as well as any profits from the commercializa-
tion then IP concerns become much more complicated
In that case in addition to describing which party will
Jennifer L CoLLins is a technology and licensing attorney with Morningstar Law Group jcollinsmorningstarlawgroupcom
Fa
na
tic S
tud
ioG
ett
y Im
ag
es
wwwbiopharminternationalcom June 2015 BioPharm International eBook 33
Outsourcing Resources Intellectual Property
own the new IP the contract should
sort out which party will be respon-
sible for obtaining and maintaining
patents on the new IP controlling
litigation against infringers and
defending the IP against challenges
In addition the parties should agree
upfront on how the IP may be used
by each party following various ter-
mination events so that the parties
are not left fighting about such mat-
ters at a time when they may not be
inclined to agree to anything
In both arrangements without
specific contractual provisions to
define and protect the new IP a
biotechnology company or phar-
maceutical company that uses a
CMO for development is at risk of
losing control of and possibly own-
ership of important improvements
to its drugs This article discusses
IP contractual provisions that
should be included in each type of
arrangement
Fee-For-service
development work
Traditionally CMOs perform fee-for-
service development work where
a biotechnology or pharmaceutical
company engages the CMO to per-
form this work for a fixed fee In this
type of arrangement the CMO is a
service provider and typically takes
no ownership interest in the drug or
product that is being developed or
in improvements to an existing drug
or product that is being tested or
developed The contract governing
the relationship nevertheless must
be clear about the IP rights that are
owned and licensed by each party
If the contract does not provide
for proper assignments of IP to the
biotechnology or pharmaceutical
company then it is likely that the
CMO will own any improvements
or other inventions that it develops
in the performance of the develop-
ment services even if that is not the
intent of the parties
Without signed written contracts
that state otherwise under United
States patent law the inventor of
a patentable invention or improve-
ment will own the invention or
improvement even if the inventor
is engaged to develop the invention
or the improvement for a customer
or other third party To ensure
that the biotechnology company or
pharmaceutical company obtains
all the patent and other IP rights
in developments inventions and
improvements created in the per-
formance of services by the CMO
the governing contract between the
biotechnology company or phar-
maceutical company and the CMO
must include written present assign-
ments of those IP rights from the
CMO to the company Indeed based
on recent cases it is crucial that the
assignment clause in the contract
be a ldquopresentrdquo assignment mean-
ing that it must state specifically
that the CMO ldquohereby assignshelliprdquo
rather than a clause stating that the
CMO ldquoagrees to assignrdquo rights in the
future Otherwise the contract will
be interpreted as a promise to assign
rights in the future and the bio
pharmaceutical company will have
to go back to the CMO at some later
point in time for a separate writ-
ten assignment of rights to obtain
all patent and other IP rights in the
developments
While it sounds logical and
straightforward that the CMO
would assign all inventions created
in the development work to its cus-
tomer it is not always that simple
in practice What if the CMO devel-
ops an improvement to its manu-
facturing process in the course of
the development work Most CMOs
will want to reserve ownership of
any improvements to the CMOrsquos
existing IP and confidential infor-
mation This position is not unrea-
sonable as long as the customer
ultimately has the rights it needs in
all new inventions including those
owned by the CMO to take the drug
forward through further develop-
ment and commercialization One
must sort out IP allocation by sub-
ject matter To achieve this allo-
cation the development contract
typically will state that each party
retains ownership of all IP that it
owns as of the date of the contract
(all pre-existing intellectual prop-
erty) It will also state that the cus-
tomer owns its proprietary drug
and all improvements to the drug
or the customerrsquos confidential infor-
mation developed by either or both
parties The development contract
also may state more generally that
the customer owns all inventions
improvements and IP rights related
to the customerrsquos drug With respect
to the CMO and its IP the develop-
ment contract may state that the
CMO owns all improvements to the
CMOrsquos manufacturing process and
to its other pre-existing intellectual
property Again this reservation is
not unreasonable The customer
however should determine whether
it requires access to those improve-
ments or inventions to complete the
development and commercialization
of its drug If such access is necessary
the customer should either negotiate
a license (which may be royalty-free
or royalty-based depending on the
circumstances) to use such improve-
ments or inventions to develop and
commercialize the drug or the cus-
tomer should negotiate the terms
under which the CMO will continue
to use the improvements or inven-
tions to perform development work
andor manufacture the drug for the
customer
In the fee-for-service arrange-
ment the assignment and licensing
of IP rights in new inventions and
improvements is the key intellectual
property issue Intellectual property
considerations become much more
complicated when the biotechnol-
34 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Intellectual Property
ogy or pharmaceutical company
partners with a CMO in the devel-
opment of a new drug or product
where the parties share development
costs and profits from commercial-
ization of the drug or product
cmo as collaborator
Although not as common as the
fee-for-service arrangement a CMO
may partner with a biotechnology
or pharmaceutical company in the
development and commercialization
of a drug or product Generally both
parties are bringing pre-existing IP
to the collaboration such as a drug
from a biopharmaceutical com-
pany and proprietary drug delivery
technology from the CMO In this
scenario the CMO is taking a long-
term interest and often a part-own-
ership interest in the success of the
drug product
Instead of getting paid an hourly
rate or fixed fee for development
work on the drug product the CMO
may share the cost of development
work with the biotechnology or
pharmaceutical partner in exchange
for a share of the profits when the
drug or product is commercialized
Other costs involved in the develop-
ment and commercialization of the
drug or product that may be shared
include the cost of patent prosecu-
tion and the cost of patent litigation
if the drug product is challenged or
if it is misappropriated or infringed
To secure its interest in the profits
from commercialization of the drug
product the CMO may want to take
an ownership interest in the intel-
lectual property rights in the drug
product All of these issues must be
carefully addressed in the develop-
ment contract to avoid both finan-
cial and IP disputes
As with the fee-for-serv ice
arrangement the parties must
allocate ownership of intellectual
property rights pertaining to the
drug product to be commercialized
These rights include both pre-exist-
ing IP rights and new inventions
and improvements developed in
the course of the development con-
tract As with the fee-for-service
arrangement the parties typically
will retain rights to their respec-
tive pre-existing IP Intellectual
property rights to new inventions
and improvements however may
be shared by giving each party a
co-ownership interest in the intel-
lectual property Alternatively such
rights may be allocated by inventor-
ship with each party taking owner-
ship of developments that it invents
and with the parties jointly own-
ing jointly developed inventions
As another alternative the IP rights
may be allocated by subject matter
as in the fee-for-service arrangement
with each party owning improve-
ments and inventions related to its
pre-existing IP regardless of which
party invents those improvements
and inventions
Depending on how the pat-
ent applications are drafted the
IP rights may be ldquosliced and dicedrdquo
more finely One party for example
could own patent rights for a drug
product for one indication while the
other party owns patent rights for
the same drug product for another
indication Decisions about how
to allocate the IP rights should be
made in consultation with intel-
lectual property counsel and must
take into account the manner in
which the drug will be commercial-
ized If one party for example is
to commercialize the product in
North America and Europe and
the other party is to commercialize
the product in the rest of the world
then either the patent ownership
should be allocated by territory or
the development contract should
include exclusive cross-licenses of
each partyrsquos rights in all the intel-
lectual property necessary to com-
mercialize the product with the first
party having an exclusive license to
commercialize the product in North
America and Europe and the second
party having an exclusive license to
commercialize the product in the
rest of the world
If the parties are going to share
ownership of the IP related to the
drug product then the develop-
ment contract also should specify
which party is responsible for pros-
ecuting and maintaining patents
on the drug product Regardless of
which party is responsible for patent
prosecution and maintenance the
other party should be consulted and
involved in key decisions regard-
ing patent prosecution and main-
tenance Unless there are multiple
patents for different indications that
will be commercialized exclusively
by one party and unless each party
has exclusive rights to commercial-
ize the drug product in particular
geographic areas it generally makes
sense for one party to take the pri-
mary responsibility for patent pros-
ecution and maintenance globally
with the other party consulting and
sharing in the cost of the prosecu-
tion and maintenance in accordance
with the profit sharing The party
that is not responsible for prosecu-
tion and maintenance should have
a contractual right to approve patent
counsel and review and approve pat-
ent filings office action responses
and other communications with
patent registries before they are filed
or submitted so that the parties
agree on the proper prosecution and
maintenance strategy
Likewise the development con-
tract should allocate the rights and
responsibilities for asserting and
defending the patents pertaining to
the product in litigation Often these
rights and responsibilities are allo-
cated by territory according to com-
mercialization rights If one party
for example has the exclusive right
to commercialize the drug product
wwwbiopharminternationalcom June 2015 BioPharm International eBook 35
Outsourcing Resources Intellectual Property
in the US then that party would
have the first right and responsibil-
ity to assert the patents on the drug
product against potential infringers
and defend the patents on the drug
product against infringement claims
in the US Likewise if one party has
the exclusive right to commercial-
ize the drug product for a particular
indication then that party would
have the first right and responsibility
to assert or defend the patents per-
taining to the product with respect
to that indication Both scenarios
can present challenges First some
courts will not recognize an exclu-
sive licensee as having standing to
assert a patent That court might
only allow the owner of the patent
(and not the exclusive licensee) to
bring a lawsuit asserting the patent
It is crucial therefore that contrac-
tual provisions relating to patent liti-
gation require the party that owns
the patent to cooperate in any litiga-
tion and to join the suit as a party if
necessary
Another potential problem is that
any litigation that asserts the pat-
ent is likely to draw a counterclaim
that the patent is invalid thus put-
ting the patent itself at risk of invali-
dation While one party might be
threatened by a potential infringer
in a particular market or for a partic-
ular indication and therefore might
want to assert the patent against the
potential infringer the other party
might not want to put the patent at
risk as to other markets and other
indications For these reasons the
contractual provisions pertaining
to patent litigation must be care-
fully drafted in consultation with
intellectual property counsel who
understands standing issues and
the potential areas for dispute The
contractual provisions also should
include dispute resolution provi-
sions for situations when the parties
do not agree on whether a patent
should be asserted
Finally while the parties may
want and expect their relationship
to continue for the full term of the
patents and the development con-
tract the parties must carefully
consider the IP ramifications of an
early termination of the develop-
ment contract and the relationship
particularly if the development con-
tract is terminated for breach If the
parties are sharing in the ownership
commercialization and profits gen-
erated by the drug product devel-
oped by the collaboration then
all of that must be unwound upon
termination The development
contract should be as specific as
possible with respect to the effect of
various types of termination on the
intellectual property and contin-
ued commercialization of the drug
product In particular the parties
may agree that if the development
contract is terminated due to breach
by one party then that breaching
party must relinquish and transfer
all of its rights with respect to the
drug product to the other party to
allow the non-breaching party to
continue the commercialization of
the drug product post-termination
Whether the necessary rights are
assigned or licensed whether the
terminated party should receive a
royalty for the transfer or license of
those rights and what if any pre-
existing IP is licensed to enable the
non-breaching party to continue
commercializing the drug product
are all key factors for negotiation
The development contract should
also address other types of termi-
nation such as termination for
insolvency and termination with-
out cause (ie if one party decides
it no longer wants to commercial-
ize the drug product) In each case
the effect of termination on the IP
rights should be carefully analyzed
and a competent IP counsel should
carefully draft post-termination
assignments and licenses
conclusion
While IP lawyers are not equipped
with crystal balls they can be
extremely helpful in analyzing par-
ticular development commercializa-
tion and post-termination scenarios
all of which affect IP in a drug devel-
opment arrangement Contractual
provisions related to IP must be
carefully drafted to align with the
strategic business objectives of any
relationship and particularly one
whose purpose is the development
and commercialization of intellec-
tual property Without a clear con-
tract each collaborator is at risk of
losing important rights bp
Ad Index
AJINOMOTO ALTHEA 21
AVID BIOSERVICES INC 15
CYTOVANCE BIOLOGICS 27
EMERGENT BIOSOLUTIONS 13
EUROFINS LANCASTER LABORATORIES 7
SAFC BIOSCIENCES SIGMA ALDRICH 17
THERMO FISHER SCIENTIFIC 23
TOSOH BIOSCIENCE 11
WATERS CORP 3
Company Page
![Page 33: OUOURT NG I C RESOURCESfiles.pharmtech.com/alfresco_images/pharma/2019/03/08/... · 2019-07-22 · VIDEO INTERVIEW Biologics Development and Manufacturing Trends: Part I ... Media](https://reader034.vdocuments.us/reader034/viewer/2022050113/5f4aca886c0d6724390eb040/html5/thumbnails/33.jpg)
wwwbiopharminternationalcom June 2015 BioPharm International eBook 33
Outsourcing Resources Intellectual Property
own the new IP the contract should
sort out which party will be respon-
sible for obtaining and maintaining
patents on the new IP controlling
litigation against infringers and
defending the IP against challenges
In addition the parties should agree
upfront on how the IP may be used
by each party following various ter-
mination events so that the parties
are not left fighting about such mat-
ters at a time when they may not be
inclined to agree to anything
In both arrangements without
specific contractual provisions to
define and protect the new IP a
biotechnology company or phar-
maceutical company that uses a
CMO for development is at risk of
losing control of and possibly own-
ership of important improvements
to its drugs This article discusses
IP contractual provisions that
should be included in each type of
arrangement
Fee-For-service
development work
Traditionally CMOs perform fee-for-
service development work where
a biotechnology or pharmaceutical
company engages the CMO to per-
form this work for a fixed fee In this
type of arrangement the CMO is a
service provider and typically takes
no ownership interest in the drug or
product that is being developed or
in improvements to an existing drug
or product that is being tested or
developed The contract governing
the relationship nevertheless must
be clear about the IP rights that are
owned and licensed by each party
If the contract does not provide
for proper assignments of IP to the
biotechnology or pharmaceutical
company then it is likely that the
CMO will own any improvements
or other inventions that it develops
in the performance of the develop-
ment services even if that is not the
intent of the parties
Without signed written contracts
that state otherwise under United
States patent law the inventor of
a patentable invention or improve-
ment will own the invention or
improvement even if the inventor
is engaged to develop the invention
or the improvement for a customer
or other third party To ensure
that the biotechnology company or
pharmaceutical company obtains
all the patent and other IP rights
in developments inventions and
improvements created in the per-
formance of services by the CMO
the governing contract between the
biotechnology company or phar-
maceutical company and the CMO
must include written present assign-
ments of those IP rights from the
CMO to the company Indeed based
on recent cases it is crucial that the
assignment clause in the contract
be a ldquopresentrdquo assignment mean-
ing that it must state specifically
that the CMO ldquohereby assignshelliprdquo
rather than a clause stating that the
CMO ldquoagrees to assignrdquo rights in the
future Otherwise the contract will
be interpreted as a promise to assign
rights in the future and the bio
pharmaceutical company will have
to go back to the CMO at some later
point in time for a separate writ-
ten assignment of rights to obtain
all patent and other IP rights in the
developments
While it sounds logical and
straightforward that the CMO
would assign all inventions created
in the development work to its cus-
tomer it is not always that simple
in practice What if the CMO devel-
ops an improvement to its manu-
facturing process in the course of
the development work Most CMOs
will want to reserve ownership of
any improvements to the CMOrsquos
existing IP and confidential infor-
mation This position is not unrea-
sonable as long as the customer
ultimately has the rights it needs in
all new inventions including those
owned by the CMO to take the drug
forward through further develop-
ment and commercialization One
must sort out IP allocation by sub-
ject matter To achieve this allo-
cation the development contract
typically will state that each party
retains ownership of all IP that it
owns as of the date of the contract
(all pre-existing intellectual prop-
erty) It will also state that the cus-
tomer owns its proprietary drug
and all improvements to the drug
or the customerrsquos confidential infor-
mation developed by either or both
parties The development contract
also may state more generally that
the customer owns all inventions
improvements and IP rights related
to the customerrsquos drug With respect
to the CMO and its IP the develop-
ment contract may state that the
CMO owns all improvements to the
CMOrsquos manufacturing process and
to its other pre-existing intellectual
property Again this reservation is
not unreasonable The customer
however should determine whether
it requires access to those improve-
ments or inventions to complete the
development and commercialization
of its drug If such access is necessary
the customer should either negotiate
a license (which may be royalty-free
or royalty-based depending on the
circumstances) to use such improve-
ments or inventions to develop and
commercialize the drug or the cus-
tomer should negotiate the terms
under which the CMO will continue
to use the improvements or inven-
tions to perform development work
andor manufacture the drug for the
customer
In the fee-for-service arrange-
ment the assignment and licensing
of IP rights in new inventions and
improvements is the key intellectual
property issue Intellectual property
considerations become much more
complicated when the biotechnol-
34 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Intellectual Property
ogy or pharmaceutical company
partners with a CMO in the devel-
opment of a new drug or product
where the parties share development
costs and profits from commercial-
ization of the drug or product
cmo as collaborator
Although not as common as the
fee-for-service arrangement a CMO
may partner with a biotechnology
or pharmaceutical company in the
development and commercialization
of a drug or product Generally both
parties are bringing pre-existing IP
to the collaboration such as a drug
from a biopharmaceutical com-
pany and proprietary drug delivery
technology from the CMO In this
scenario the CMO is taking a long-
term interest and often a part-own-
ership interest in the success of the
drug product
Instead of getting paid an hourly
rate or fixed fee for development
work on the drug product the CMO
may share the cost of development
work with the biotechnology or
pharmaceutical partner in exchange
for a share of the profits when the
drug or product is commercialized
Other costs involved in the develop-
ment and commercialization of the
drug or product that may be shared
include the cost of patent prosecu-
tion and the cost of patent litigation
if the drug product is challenged or
if it is misappropriated or infringed
To secure its interest in the profits
from commercialization of the drug
product the CMO may want to take
an ownership interest in the intel-
lectual property rights in the drug
product All of these issues must be
carefully addressed in the develop-
ment contract to avoid both finan-
cial and IP disputes
As with the fee-for-serv ice
arrangement the parties must
allocate ownership of intellectual
property rights pertaining to the
drug product to be commercialized
These rights include both pre-exist-
ing IP rights and new inventions
and improvements developed in
the course of the development con-
tract As with the fee-for-service
arrangement the parties typically
will retain rights to their respec-
tive pre-existing IP Intellectual
property rights to new inventions
and improvements however may
be shared by giving each party a
co-ownership interest in the intel-
lectual property Alternatively such
rights may be allocated by inventor-
ship with each party taking owner-
ship of developments that it invents
and with the parties jointly own-
ing jointly developed inventions
As another alternative the IP rights
may be allocated by subject matter
as in the fee-for-service arrangement
with each party owning improve-
ments and inventions related to its
pre-existing IP regardless of which
party invents those improvements
and inventions
Depending on how the pat-
ent applications are drafted the
IP rights may be ldquosliced and dicedrdquo
more finely One party for example
could own patent rights for a drug
product for one indication while the
other party owns patent rights for
the same drug product for another
indication Decisions about how
to allocate the IP rights should be
made in consultation with intel-
lectual property counsel and must
take into account the manner in
which the drug will be commercial-
ized If one party for example is
to commercialize the product in
North America and Europe and
the other party is to commercialize
the product in the rest of the world
then either the patent ownership
should be allocated by territory or
the development contract should
include exclusive cross-licenses of
each partyrsquos rights in all the intel-
lectual property necessary to com-
mercialize the product with the first
party having an exclusive license to
commercialize the product in North
America and Europe and the second
party having an exclusive license to
commercialize the product in the
rest of the world
If the parties are going to share
ownership of the IP related to the
drug product then the develop-
ment contract also should specify
which party is responsible for pros-
ecuting and maintaining patents
on the drug product Regardless of
which party is responsible for patent
prosecution and maintenance the
other party should be consulted and
involved in key decisions regard-
ing patent prosecution and main-
tenance Unless there are multiple
patents for different indications that
will be commercialized exclusively
by one party and unless each party
has exclusive rights to commercial-
ize the drug product in particular
geographic areas it generally makes
sense for one party to take the pri-
mary responsibility for patent pros-
ecution and maintenance globally
with the other party consulting and
sharing in the cost of the prosecu-
tion and maintenance in accordance
with the profit sharing The party
that is not responsible for prosecu-
tion and maintenance should have
a contractual right to approve patent
counsel and review and approve pat-
ent filings office action responses
and other communications with
patent registries before they are filed
or submitted so that the parties
agree on the proper prosecution and
maintenance strategy
Likewise the development con-
tract should allocate the rights and
responsibilities for asserting and
defending the patents pertaining to
the product in litigation Often these
rights and responsibilities are allo-
cated by territory according to com-
mercialization rights If one party
for example has the exclusive right
to commercialize the drug product
wwwbiopharminternationalcom June 2015 BioPharm International eBook 35
Outsourcing Resources Intellectual Property
in the US then that party would
have the first right and responsibil-
ity to assert the patents on the drug
product against potential infringers
and defend the patents on the drug
product against infringement claims
in the US Likewise if one party has
the exclusive right to commercial-
ize the drug product for a particular
indication then that party would
have the first right and responsibility
to assert or defend the patents per-
taining to the product with respect
to that indication Both scenarios
can present challenges First some
courts will not recognize an exclu-
sive licensee as having standing to
assert a patent That court might
only allow the owner of the patent
(and not the exclusive licensee) to
bring a lawsuit asserting the patent
It is crucial therefore that contrac-
tual provisions relating to patent liti-
gation require the party that owns
the patent to cooperate in any litiga-
tion and to join the suit as a party if
necessary
Another potential problem is that
any litigation that asserts the pat-
ent is likely to draw a counterclaim
that the patent is invalid thus put-
ting the patent itself at risk of invali-
dation While one party might be
threatened by a potential infringer
in a particular market or for a partic-
ular indication and therefore might
want to assert the patent against the
potential infringer the other party
might not want to put the patent at
risk as to other markets and other
indications For these reasons the
contractual provisions pertaining
to patent litigation must be care-
fully drafted in consultation with
intellectual property counsel who
understands standing issues and
the potential areas for dispute The
contractual provisions also should
include dispute resolution provi-
sions for situations when the parties
do not agree on whether a patent
should be asserted
Finally while the parties may
want and expect their relationship
to continue for the full term of the
patents and the development con-
tract the parties must carefully
consider the IP ramifications of an
early termination of the develop-
ment contract and the relationship
particularly if the development con-
tract is terminated for breach If the
parties are sharing in the ownership
commercialization and profits gen-
erated by the drug product devel-
oped by the collaboration then
all of that must be unwound upon
termination The development
contract should be as specific as
possible with respect to the effect of
various types of termination on the
intellectual property and contin-
ued commercialization of the drug
product In particular the parties
may agree that if the development
contract is terminated due to breach
by one party then that breaching
party must relinquish and transfer
all of its rights with respect to the
drug product to the other party to
allow the non-breaching party to
continue the commercialization of
the drug product post-termination
Whether the necessary rights are
assigned or licensed whether the
terminated party should receive a
royalty for the transfer or license of
those rights and what if any pre-
existing IP is licensed to enable the
non-breaching party to continue
commercializing the drug product
are all key factors for negotiation
The development contract should
also address other types of termi-
nation such as termination for
insolvency and termination with-
out cause (ie if one party decides
it no longer wants to commercial-
ize the drug product) In each case
the effect of termination on the IP
rights should be carefully analyzed
and a competent IP counsel should
carefully draft post-termination
assignments and licenses
conclusion
While IP lawyers are not equipped
with crystal balls they can be
extremely helpful in analyzing par-
ticular development commercializa-
tion and post-termination scenarios
all of which affect IP in a drug devel-
opment arrangement Contractual
provisions related to IP must be
carefully drafted to align with the
strategic business objectives of any
relationship and particularly one
whose purpose is the development
and commercialization of intellec-
tual property Without a clear con-
tract each collaborator is at risk of
losing important rights bp
Ad Index
AJINOMOTO ALTHEA 21
AVID BIOSERVICES INC 15
CYTOVANCE BIOLOGICS 27
EMERGENT BIOSOLUTIONS 13
EUROFINS LANCASTER LABORATORIES 7
SAFC BIOSCIENCES SIGMA ALDRICH 17
THERMO FISHER SCIENTIFIC 23
TOSOH BIOSCIENCE 11
WATERS CORP 3
Company Page
![Page 34: OUOURT NG I C RESOURCESfiles.pharmtech.com/alfresco_images/pharma/2019/03/08/... · 2019-07-22 · VIDEO INTERVIEW Biologics Development and Manufacturing Trends: Part I ... Media](https://reader034.vdocuments.us/reader034/viewer/2022050113/5f4aca886c0d6724390eb040/html5/thumbnails/34.jpg)
34 BioPharm International eBook June 2015 wwwbiopharminternationalcom
Outsourcing Resources Intellectual Property
ogy or pharmaceutical company
partners with a CMO in the devel-
opment of a new drug or product
where the parties share development
costs and profits from commercial-
ization of the drug or product
cmo as collaborator
Although not as common as the
fee-for-service arrangement a CMO
may partner with a biotechnology
or pharmaceutical company in the
development and commercialization
of a drug or product Generally both
parties are bringing pre-existing IP
to the collaboration such as a drug
from a biopharmaceutical com-
pany and proprietary drug delivery
technology from the CMO In this
scenario the CMO is taking a long-
term interest and often a part-own-
ership interest in the success of the
drug product
Instead of getting paid an hourly
rate or fixed fee for development
work on the drug product the CMO
may share the cost of development
work with the biotechnology or
pharmaceutical partner in exchange
for a share of the profits when the
drug or product is commercialized
Other costs involved in the develop-
ment and commercialization of the
drug or product that may be shared
include the cost of patent prosecu-
tion and the cost of patent litigation
if the drug product is challenged or
if it is misappropriated or infringed
To secure its interest in the profits
from commercialization of the drug
product the CMO may want to take
an ownership interest in the intel-
lectual property rights in the drug
product All of these issues must be
carefully addressed in the develop-
ment contract to avoid both finan-
cial and IP disputes
As with the fee-for-serv ice
arrangement the parties must
allocate ownership of intellectual
property rights pertaining to the
drug product to be commercialized
These rights include both pre-exist-
ing IP rights and new inventions
and improvements developed in
the course of the development con-
tract As with the fee-for-service
arrangement the parties typically
will retain rights to their respec-
tive pre-existing IP Intellectual
property rights to new inventions
and improvements however may
be shared by giving each party a
co-ownership interest in the intel-
lectual property Alternatively such
rights may be allocated by inventor-
ship with each party taking owner-
ship of developments that it invents
and with the parties jointly own-
ing jointly developed inventions
As another alternative the IP rights
may be allocated by subject matter
as in the fee-for-service arrangement
with each party owning improve-
ments and inventions related to its
pre-existing IP regardless of which
party invents those improvements
and inventions
Depending on how the pat-
ent applications are drafted the
IP rights may be ldquosliced and dicedrdquo
more finely One party for example
could own patent rights for a drug
product for one indication while the
other party owns patent rights for
the same drug product for another
indication Decisions about how
to allocate the IP rights should be
made in consultation with intel-
lectual property counsel and must
take into account the manner in
which the drug will be commercial-
ized If one party for example is
to commercialize the product in
North America and Europe and
the other party is to commercialize
the product in the rest of the world
then either the patent ownership
should be allocated by territory or
the development contract should
include exclusive cross-licenses of
each partyrsquos rights in all the intel-
lectual property necessary to com-
mercialize the product with the first
party having an exclusive license to
commercialize the product in North
America and Europe and the second
party having an exclusive license to
commercialize the product in the
rest of the world
If the parties are going to share
ownership of the IP related to the
drug product then the develop-
ment contract also should specify
which party is responsible for pros-
ecuting and maintaining patents
on the drug product Regardless of
which party is responsible for patent
prosecution and maintenance the
other party should be consulted and
involved in key decisions regard-
ing patent prosecution and main-
tenance Unless there are multiple
patents for different indications that
will be commercialized exclusively
by one party and unless each party
has exclusive rights to commercial-
ize the drug product in particular
geographic areas it generally makes
sense for one party to take the pri-
mary responsibility for patent pros-
ecution and maintenance globally
with the other party consulting and
sharing in the cost of the prosecu-
tion and maintenance in accordance
with the profit sharing The party
that is not responsible for prosecu-
tion and maintenance should have
a contractual right to approve patent
counsel and review and approve pat-
ent filings office action responses
and other communications with
patent registries before they are filed
or submitted so that the parties
agree on the proper prosecution and
maintenance strategy
Likewise the development con-
tract should allocate the rights and
responsibilities for asserting and
defending the patents pertaining to
the product in litigation Often these
rights and responsibilities are allo-
cated by territory according to com-
mercialization rights If one party
for example has the exclusive right
to commercialize the drug product
wwwbiopharminternationalcom June 2015 BioPharm International eBook 35
Outsourcing Resources Intellectual Property
in the US then that party would
have the first right and responsibil-
ity to assert the patents on the drug
product against potential infringers
and defend the patents on the drug
product against infringement claims
in the US Likewise if one party has
the exclusive right to commercial-
ize the drug product for a particular
indication then that party would
have the first right and responsibility
to assert or defend the patents per-
taining to the product with respect
to that indication Both scenarios
can present challenges First some
courts will not recognize an exclu-
sive licensee as having standing to
assert a patent That court might
only allow the owner of the patent
(and not the exclusive licensee) to
bring a lawsuit asserting the patent
It is crucial therefore that contrac-
tual provisions relating to patent liti-
gation require the party that owns
the patent to cooperate in any litiga-
tion and to join the suit as a party if
necessary
Another potential problem is that
any litigation that asserts the pat-
ent is likely to draw a counterclaim
that the patent is invalid thus put-
ting the patent itself at risk of invali-
dation While one party might be
threatened by a potential infringer
in a particular market or for a partic-
ular indication and therefore might
want to assert the patent against the
potential infringer the other party
might not want to put the patent at
risk as to other markets and other
indications For these reasons the
contractual provisions pertaining
to patent litigation must be care-
fully drafted in consultation with
intellectual property counsel who
understands standing issues and
the potential areas for dispute The
contractual provisions also should
include dispute resolution provi-
sions for situations when the parties
do not agree on whether a patent
should be asserted
Finally while the parties may
want and expect their relationship
to continue for the full term of the
patents and the development con-
tract the parties must carefully
consider the IP ramifications of an
early termination of the develop-
ment contract and the relationship
particularly if the development con-
tract is terminated for breach If the
parties are sharing in the ownership
commercialization and profits gen-
erated by the drug product devel-
oped by the collaboration then
all of that must be unwound upon
termination The development
contract should be as specific as
possible with respect to the effect of
various types of termination on the
intellectual property and contin-
ued commercialization of the drug
product In particular the parties
may agree that if the development
contract is terminated due to breach
by one party then that breaching
party must relinquish and transfer
all of its rights with respect to the
drug product to the other party to
allow the non-breaching party to
continue the commercialization of
the drug product post-termination
Whether the necessary rights are
assigned or licensed whether the
terminated party should receive a
royalty for the transfer or license of
those rights and what if any pre-
existing IP is licensed to enable the
non-breaching party to continue
commercializing the drug product
are all key factors for negotiation
The development contract should
also address other types of termi-
nation such as termination for
insolvency and termination with-
out cause (ie if one party decides
it no longer wants to commercial-
ize the drug product) In each case
the effect of termination on the IP
rights should be carefully analyzed
and a competent IP counsel should
carefully draft post-termination
assignments and licenses
conclusion
While IP lawyers are not equipped
with crystal balls they can be
extremely helpful in analyzing par-
ticular development commercializa-
tion and post-termination scenarios
all of which affect IP in a drug devel-
opment arrangement Contractual
provisions related to IP must be
carefully drafted to align with the
strategic business objectives of any
relationship and particularly one
whose purpose is the development
and commercialization of intellec-
tual property Without a clear con-
tract each collaborator is at risk of
losing important rights bp
Ad Index
AJINOMOTO ALTHEA 21
AVID BIOSERVICES INC 15
CYTOVANCE BIOLOGICS 27
EMERGENT BIOSOLUTIONS 13
EUROFINS LANCASTER LABORATORIES 7
SAFC BIOSCIENCES SIGMA ALDRICH 17
THERMO FISHER SCIENTIFIC 23
TOSOH BIOSCIENCE 11
WATERS CORP 3
Company Page
![Page 35: OUOURT NG I C RESOURCESfiles.pharmtech.com/alfresco_images/pharma/2019/03/08/... · 2019-07-22 · VIDEO INTERVIEW Biologics Development and Manufacturing Trends: Part I ... Media](https://reader034.vdocuments.us/reader034/viewer/2022050113/5f4aca886c0d6724390eb040/html5/thumbnails/35.jpg)
wwwbiopharminternationalcom June 2015 BioPharm International eBook 35
Outsourcing Resources Intellectual Property
in the US then that party would
have the first right and responsibil-
ity to assert the patents on the drug
product against potential infringers
and defend the patents on the drug
product against infringement claims
in the US Likewise if one party has
the exclusive right to commercial-
ize the drug product for a particular
indication then that party would
have the first right and responsibility
to assert or defend the patents per-
taining to the product with respect
to that indication Both scenarios
can present challenges First some
courts will not recognize an exclu-
sive licensee as having standing to
assert a patent That court might
only allow the owner of the patent
(and not the exclusive licensee) to
bring a lawsuit asserting the patent
It is crucial therefore that contrac-
tual provisions relating to patent liti-
gation require the party that owns
the patent to cooperate in any litiga-
tion and to join the suit as a party if
necessary
Another potential problem is that
any litigation that asserts the pat-
ent is likely to draw a counterclaim
that the patent is invalid thus put-
ting the patent itself at risk of invali-
dation While one party might be
threatened by a potential infringer
in a particular market or for a partic-
ular indication and therefore might
want to assert the patent against the
potential infringer the other party
might not want to put the patent at
risk as to other markets and other
indications For these reasons the
contractual provisions pertaining
to patent litigation must be care-
fully drafted in consultation with
intellectual property counsel who
understands standing issues and
the potential areas for dispute The
contractual provisions also should
include dispute resolution provi-
sions for situations when the parties
do not agree on whether a patent
should be asserted
Finally while the parties may
want and expect their relationship
to continue for the full term of the
patents and the development con-
tract the parties must carefully
consider the IP ramifications of an
early termination of the develop-
ment contract and the relationship
particularly if the development con-
tract is terminated for breach If the
parties are sharing in the ownership
commercialization and profits gen-
erated by the drug product devel-
oped by the collaboration then
all of that must be unwound upon
termination The development
contract should be as specific as
possible with respect to the effect of
various types of termination on the
intellectual property and contin-
ued commercialization of the drug
product In particular the parties
may agree that if the development
contract is terminated due to breach
by one party then that breaching
party must relinquish and transfer
all of its rights with respect to the
drug product to the other party to
allow the non-breaching party to
continue the commercialization of
the drug product post-termination
Whether the necessary rights are
assigned or licensed whether the
terminated party should receive a
royalty for the transfer or license of
those rights and what if any pre-
existing IP is licensed to enable the
non-breaching party to continue
commercializing the drug product
are all key factors for negotiation
The development contract should
also address other types of termi-
nation such as termination for
insolvency and termination with-
out cause (ie if one party decides
it no longer wants to commercial-
ize the drug product) In each case
the effect of termination on the IP
rights should be carefully analyzed
and a competent IP counsel should
carefully draft post-termination
assignments and licenses
conclusion
While IP lawyers are not equipped
with crystal balls they can be
extremely helpful in analyzing par-
ticular development commercializa-
tion and post-termination scenarios
all of which affect IP in a drug devel-
opment arrangement Contractual
provisions related to IP must be
carefully drafted to align with the
strategic business objectives of any
relationship and particularly one
whose purpose is the development
and commercialization of intellec-
tual property Without a clear con-
tract each collaborator is at risk of
losing important rights bp
Ad Index
AJINOMOTO ALTHEA 21
AVID BIOSERVICES INC 15
CYTOVANCE BIOLOGICS 27
EMERGENT BIOSOLUTIONS 13
EUROFINS LANCASTER LABORATORIES 7
SAFC BIOSCIENCES SIGMA ALDRICH 17
THERMO FISHER SCIENTIFIC 23
TOSOH BIOSCIENCE 11
WATERS CORP 3
Company Page