BCG-打破生物制造的成本壁垒 Breaking the Cost Barrier in Biomanufacturing 2024

Breakingthe

CostBarrierin

Biomanufacturing

February2024

ByJean-FrançoisBobier,TristanCerisy,Anne-DouceCoulin,CrystalBleecher,

VictoriaSassoon,andBrentanAlexander

BreakingtheCostBarrierin

Biomanufacturing

SincetheUSFDAapprovedthefirstbiosyntheticdrug,insulin,fourdecadesago,themarketforproductscreatedthroughprecisionfer-mentationandbiomanufacturinghasgrownto$100billion.Thesec-tor’ssuccessledtopredictionsthatprecision-fermentedbioproductswoulddisruptindustriesfrompharmaceuticalstofoodtochemicals.

Butinareasotherthanpharma—whosebusinessmodelsarebuiltonhigh-margin,low-volumeproductswithlowsensitivitytocosts—innovationshavecreatedonlynichemarketsin

enzymes,fragrances,andfoodandfeedsupplements.

Thismaybeabouttochange.Demandissolidifyingfor

productsthatusebiologicalprocessesandgenetically

modifiedmicroorganismsinplaceoftraditionalproductionmethods,drivenbytheneedtoachievesustainabilityin

manufacturingwhilereducingcarbonemissions.At

COP28,nearly200nationssignedontomovingawayfromfossilfuelsand,therefore,petrochemicals.Morethan4,100oftheworld’slargestcompanieshaveestablishedemis-

sions-reductiontargets,accordingtotheScienceBased

Targetsinitiative,withmorethan2,600ofthemincludingnetzeroemissionscommitments.InitsMarch2023re-

port,BoldGoalsforUSBiotechnologyandBiomanufacturing,

theWhiteHousesetatargetofproducing“atleast30%oftheUSchemicaldemandviasustainableandcost-effectivebiomanufacturingpathways”within20years.

Butforchangetohappen,costsmustcomedown.Meetingthesustainabilityandemissions-reductionneedsofglobalindustrydependsonachievingeconomicallyviablepreci-

sion-fermentationbiomanufacturingatcommercialscale

andbringingproductioncostsintoparitywithexisting

methods.Theseinturnrequireconstructionandoptimiza-tionofbiofoundries—large-scale,standardizedbiomanu-

facturingfacilitiesthatcanmeetindustrial-leveldemand—andcontinuedimprovementsinstrainengineering.

Participantsallalongthevaluechainhaveimportantrolestoplay.Mostimmediately,corporatecustomers—thesamecompaniesthatneedtomeetsustainabilityandnetzero

pledges—mustdemonstratethatthedemandisrealby

committingtoofftakeagreementsforfuturedeliveryof

newingredientsandbyadaptingtheirsupplychainsandproductformulationsaccordingly.Policymakersandregu-latorscansmooththewaybyofferingincentivesandloanguaranteesandremovingredtape.Asdemandfornew

facilitiesgainstractionandfinancialrisksrecede,projectfinanceinvestorscanstepinwithnecessarycapital.

Aswehaveseenwithotheradvancedtechnologies,the

resultcanbeavirtuouscircle.Thefirstoptimizedlarge-

scalefacilitiescanlowerproductioncostsbyasmuchas

50%onexistingstrains,enablingsomecostparitywith

incumbenttechnologies.Moreandlargerfacilities,aswellasimprovedstrains,couldreduceproductioncostsbyupto90%,achievingorsurpassingpriceparitywithcurrent

incumbentmethodsformostproducts.

(SeeExhibit1.)

Infact,weestimatethatthemarketforbiomanufactured

ingredientsinthreeindustries—specialtychemicals,food,andchemicalprecursors—couldreach$200billionby

2040—ifthemanufacturingcapacityisthere.

BCGhasbeenresearchingandadvisingclientsforyearsondevelopmentsinadvancedtechnologies.Synonymisdevel-opingthephysical,digital,andfinancialinfrastructureto

catalyzeabiomanufacturingrevolution.Here’sourviewonhowbiomanufacturingcanfinallyfulfillitspromiseof

achievingcommercialscale.

1BREAKINGTHECOSTBARRIERINBIOMANUFACTURING

Exhibit1-TheThreeKeystoAchievingBiomanufacturing’sPotential

Nichemarkets

(hundredsoftons)

Massmarket

(millionoftons)

Pharmascale

(<100,000liters)

Megascale

(2millionliters)

Scale

Strains

Demand

Many,

designedfor

lab

Few,

designedfor

scale

Source:BCGanalysis.

BoostingBiomanufacturingSupplybyDrivingDownCosts

Twotruths:therangeandperformanceofprecisionfer-

mentedproductsarerelevantforalmostallmanufacturingcompanies,andbiomanufacturingisatriedandtested

technology.Thebigproblem—andthereasonthatpreci-

sionfermentationremainsanunderusedtechnologyde-

spitecontinuingadvancesingenomeengineeringand

straindevelopment—isthehighcostofproduction,whichstemsfromadherencetorigorousstandardstoensurehighquality.

(SeeExhibit2.)

Biomanufacturinginvolvesfermentationunderoptimal

conditions(pressure,temperature,pH,andconcentrationofoxygenandnutrients)inafermentorpurpose-builtfor

aerobicfermentationfollowedbydownstreamprocessing(DSP)toisolatetheendproductviaseparationandpurifi-cationstepssuchasfiltrationandspraydrying.Advances

todatehavebeendrivenprimarilybypharmaceutical

standards.Contractmanufacturingorganizations(CMOs),whichservethepharmaceuticalsindustry,havesmall

scale,highproductioncosts,andunprofitableuniteconom-icsformostnonpharmabioproductcompanies.Inaddi-

tion,customersmustinvestasignificantamountofup-

frontcapitaltofundDSP,makingtheeconomicseven

moreunfavorable.OnlyahandfulofCMOshaveavailablecapacityofmorethan100,000liters.

BOSTONCONSULTINGGROUP+SYNONYM2

Exhibit2-UnlikeStrainEngineering,BiomanufacturingHasImprovedOnlyIncrementallyinthePastCentury

Externaldrivers

.

1920

•Nopetrochemicalalternative

•Geopolitical(wartimebiomanufacturing)

.

1980

•Nopetrochemicalalternative

•Recombinantproteinsensuremorereliabilitythananimal

2010Present

•Ecologicalsustainability

•Localproductionandacceleratedsupplychain

Natural

RecombinantDNA

Digitalengineering

•Naturalstraindiscoveryand

•RecombinantDNA(manual

•GenomeengineeringandAI

Strain

engineering

selection

•Fermentationwithlimited

purification

process)

•LimitedDNAsequencing

•DNAsynthesisatscale

•DNAsequencingatscale

Biomanufacturing

Opportunity

Largescale

Smallandmediumscale

Manufacturingadvancesdrivenmainlybypharmaceuticalstandards:

•Smallscale1

•Optimizedforyieldandquality,notcosts

Endproducts

•Antibiotics(penicillin,etc.),vaccine

•Aminoacids,citricacid

•Acetone,butanol,ethanol

•Enzymes(laundryfood,etc.)

•Pharmaceuticalbiologics

(insulin,epoetin,antibodies)

•Proteins(textile,food,etc.)

•Enzymes(greenchemistry,food,etc.)

•Molecules(fragrance,dyes,etc.)

Source:BCGanalysis.

1Excludingaminoacids,someorganicacids,andalcohols(ABEfermentation),whichhavebeenproducedinlargescalefermentors.

Enterbiofoundries—facilitiesthataredesigned,built,

standardized,andoptimizedforefficientproductionof

nonpharmabioproducts.Eachsuchfacilitycanprovideatleast2millionlitersofcapacity,achievingcommercial

economicsandbridgingthecostgapforlargeproductioncategoriessuchasfoodsandbiomaterialsbyreducingunitcostsbyabout50%.

(SeeExhibit3.)

Someinnovationsthatmakebiofoundriespossible(such

astheuseofAIandhigh-precisionsensors)requiread-

vancesintechnology,butmanyotherimprovementsin-

volveonlycostoptimizationrelatedtoprocessengineering.Theseleversfocusonsuchhigh-costitemsasenergy

demandandlaborandmaintenance.Forexample,three

piecesofequipment—agitators,chillers,andaircompres-sors—accountforapproximately70%ofanentirefacility’selectricaldemand.Forsomestrains,companiescanreducetheserequirementsbyoptimizingmasstransferdesigntolowerthecombinedagitationandaircompressorelectricalloadsandbyimprovingthecoolingsystemdesigntolessenthechillersystemelectricalloads.Modulardesignreducesconstructiontimelinesandcostsandaugmentsutilizationratesbyaccommodatingvaryingcustomerneeds.

Companiescanimprovecostsinatleasttenspecificareasincategoriesrangingfromvariablecoststofactoryutiliza-tion.

(SeeExhibit4.)

Standardizationandoptimizationprovidebiofoundries

withsignificantadvantagesoverexistinglarge-scalebio-

manufacturingfacilities,particularlywithrespecttocost,timeline,andadaptability.Thebespokenatureoftradition-alfacilitiesresultsinelevatedcostsandprolongedtime-

lines.Thesefacilitiesdemandsubstantialupfrontcapitalinvestments,rangingfrom$300millionto$400million

each,andthetimerequiredfordesignandconstructionistypicallythreetofiveyears.

Incontrast,standardizedbiofoundrieshavethepotential

toreducecostsandconstructiontimes.Initialfacilitiesareexpensivebuttheyoffermultipurposefunctionalityand

adaptability.Standardizationcanreducethecapitalinvest-mentforlaterbiofoundriesbyupto30%.Thisapproach

notonlymitigatesrisksbutalsohelpsmakebiofoundriesaversatilesolutionthatcanmeetevolvingneedsandad-

vancesinfuturestrains.

3BREAKINGTHECOSTBARRIERINBIOMANUFACTURING

Exhibit3-OptimizedBiofoundrieswithaMinimumWorkingCapacityof2MillionLitersCanCutCostsbyAbout50%

Costofgoodssold($/kgproduced)

5.0x

2.5x

0.0x

Today'stypical

commercialcapacity

Optimalscale

(biofoundry)

012345

Totalfacilitycapacity(millionliters)1

Fermentorvolume150kL100kL150kL200kL300kL400kL

Sources:BCGanalysis;Synonymanalysis.

1Workingvolume.

Exhibit4-FacilityOptimizationCanDrasticallyReduceBiomanufacturingCosts

Fixedcosts($/year)

Facility

throughput

(kg/year)

Factory

utilization(%)1

+5–15

percentagepoints

Biomanufacturingcosts($/kg)

Costimprovementpotential

Variable

costs($/kg)

–20%

–20%

+20%

•Masstransferandcoolingsystem

optimization

•Wastebiomassvalorization

•Waterrecycling

•Highlyautomatedsystems

•Modular

standardizeddesign

•SensorsandAIforpredictive

maintenance

•Increased

downstream

processingproductrecovery

•Minimized

fermentor

turnaroundtime

•Standardizationtoallowmultiuse

•Equipment

redundancyand

flowparallelization

Sources:BCGanalysis;Synonymanalysis.

1Typicalutilizationtodayis80%–90%.

BOSTONCONSULTINGGROUP+SYNONYM4

APotential$200BillionMarket

Therearestrongfinancialreasonstopressforward.We

estimatethatscalingupindustrialprecisionfermentationcancreatea$200billionmarketby2040,seventimesthecurrentsize,ifcompaniesbuildenoughproductioncapaci-tytolowercosts.

(SeeExhibit5.)

Indeed,theprimarycon-straintonultimatemarketsizeisbiomanufacturingcapac-ity.Therearepracticallimitstohowmuchandhowfast

suchcapacitycanbebuilt.

Marketsizingestimatesbyothershaverunintothetril-

lionsofdollars.We,however,focusexclusivelyonthemar-ketforthebioproductsproducedbythenewbiofoundries,whicharemostoftenusedasingredientinputs,andnot

themarketforformulatedfinishedproducts,which(as

noted)includemostoftheproductsmadetoday.Threeofthebiggestnear-termopportunitiesinvolvespecialtychem-icals,food,andchemicalprecursors.

(SeeExhibit6.)

Stan-dardizedbiofoundriescanserveallofthesemarkets,withconstructionfocusingonhigher-margin,lower-volume

moleculesfirst.

SpecialtyChemicals.Moleculesincludeenzymes,noned-ibleproteins(suchascollagenandsilks)fromanimal

sources,pigments,fragrances,andchemicalactivephar-

maceuticalingredientssuchascertainantibioticsand

statins.Inthissegment,biomanufacturingcurrentlycom-mandsanaveragecostpremiumof30%to50%,dependingonthemoleculesinvolved.Thesegmentalsoencompassescosmeticsandactiveingredientsthatareregulatedand

thereforerequirelargeandlengthyR&Dinvestments(fivetotenyearsforcosmetics,forexample).Weestimatethesegment’s2040marketpotentialat$50billion.

Food.Thepotentialbioproductmarketforfoodsincludesdairy,meatandeggproteins,fats,additives,andfooddyesandflavors.Companiesalreadyproduceseveralmolecules(includingsomevitamins,aminoacids,andflavors)at

scale,provingthedemandforsuchproducts.Current

biomanufacturingcostsforsomeproductsaretwotothreetimesashighasforthesameproductsmanufacturedby

incumbentmethods,butbiofoundriescouldlowerthose

coststoparityorbelow.Animalagricultureisresponsiblefor15%ofgreenhousegasemissionsandsignificantwaterandlandusage.Itprovokesethicalconcernsrelatedto

animalcruelty.Biomanufacturingoffersacompetitive,sustainable,cruelty-freealternative.

(See“PrecisionFer-

mentedFoods:TheNextWave?”)

Exhibit5-ReducingCostsCanUnlock$200BillioninDemand

SoScalingopportunity

Description

•

Pharma

biologics

Biopharmabiologics(e.g.,mRNAvaccines,insulin,

hormones,CAR-Tcells,

genetherapy,orantibodies)

•

•

•

•

Specialty

chemicals

Enzymes

Animal-basedand

plant-basedproteins

andlipids1

PigmentsandfragrancesChemicalAPIs

•

•

•

•

Food

Dairy,meat,and

eggproteins

Fats

Additives

Dyesandflavors

Chemicals

precursors

•Monomersandresins

•Fertilizersandpesticides

•Lubricants

•Fibers

2040marketpotential

$50billion

$100billion

$50billion

Margin

Volume

Source:BCGanalysis.

Note:API=activepharmaceuticalingredients.

1Forexample,collagen,silk,andpalmoil.

5BREAKINGTHECOSTBARRIERINBIOMANUFACTURING

Exhibit6-PotentialBiomanufacturingDevelopmentToward2040

Price($/kg)

10,000.00

100.00

1.00

0.01

Pharmabiologics

Specialtychemicals

.

Food

Chemicalprecursors

1

Volume(kilotons/year)

100

10,000

Evolutionofbioalternativesby2040CurrentproductionpriceCurrentnon-bioalternative

Source:BCGanalysis.

Thetaskofbuildingdemandstillfacesplentyofchalleng-es,includingtheneedforwidespreadcustomereducationandfornewrulesandregulations(includingforfoodlabel-ingandmanufacturingfacilitiesinspections).Regulatory

authoritiessuchastheFDAintheUSandtheEuropean

FoodSafetyAuthoritymustalsodevelopvalidationand

inspectionrulesandprocedurestofacilitatethedevelop-

mentofnew,sustainable,andsafeproductswithoutin-

creasingtime-to-market.Byachievingbothpriceparityanddecreasedemissions,theoverallfermentationfoodmarketshouldgrowto$100billionby2040.

ChemicalPrecursors.Today,chemicalprecursorsconsistofpetrochemicalcompoundssuchasethylene(whichafterpolymerizationbecomesPETplastic).Theyarea$600

billionmarketthatisgrowingat3%ayearalongwithfossilfuelproduction.Theproductsarecheaptomake,since

theyusecompoundsfoundasbyproductsofthefuelrefin-ingprocess.Theyarefoundinanarrayofendproducts,

includingpolymers(suchasplastic),resins,fertilizers,

pesticides,lubricants,clothfibers(suchaspolyester),andevendrugs(aspirin,forexample)andfoodadditives(thinktruffleflavor).Inthepast70years,theyhavedisplaced

preexistingmethodsandproductsthatsometimesusedfermentation(suchasammunitionproducedduringthetwoworldwars).

Becausechemicalprecursorsaresoinexpensivetopro-

duce,earlybiofoundriesmaystruggletocompete.None-

theless,weexpectamarketof$50billiontodevelopovertime.Specificproductsforwhichcostparityorincreased

performanceisachievablewillemerge.Wealsoexpect

furtherregulationorevenrestrictionofpetrochemicaluse,increasingcustomerinterestinbioalternativessuchas

bioplastics.Ultimately,astherecentCOP28agreement

suggests,petrochemicalusewilldeclinealongwithoil

production,whichwillopenfurtheropportunitiesforalter-natives.

CarbonBenefits.Inadditiontoreducinggreenhousegasemissions,byusingbiogenicratherthanfossil-derived

inputs,biofoundriesimproveyieldandenergyefficiencies,makingbiomanufacturingatscaleamoreappealingalter-nativeforproducingmostmolecules,fromthestandpointofCO2emissions.

(SeeExhibit7.)

BOSTONCONSULTINGGROUP+SYNONYM6

PrecisionFermentedFoods:TheNextWave?

Companiesarealreadyusingprecisionfermentationatscaletoproducesomeadditives.Productsincludeflavorenhancers(glutamicacid),acidifiers(citricacid,fumaricacid,andmalicacid),low-caloriesweeteners(aspartic

acid),andthickeningagents(xanthangum).Decreasingcostscouldenablecompaniestotargetnewmarkets.

Severaldyesandflavormoleculesarecurrentlybeing

supplantedbybioproducedequivalents.Theseincludeflavorssuchvanillin,santalol,menthol,Nootkatone,lac-tones,alpha-ionene,andvalencene,anddyessuchas

carminicacid(usedinproductsrangingfromcandytoyogurttosausage),anthocyanin,andcarotenoids.

Weexpectprecisionfermentationtounlockthenextwaveofgrowthin

alternativefoods

.Asthegrowthofplant-basedfoodsplateaus,precisionfermentationisonthecuspof

offeringnewalternativesformeat,eggs,dairy,additives,dyes,andflavors.

Forexample,multiplecompaniesarenowfermenting

varioustypesofproteinstoformulatesuchdairyendprod-uctsasmilk(includinginfantmilk),cheese,butter,and

cream.

Fermentationisalsowellsuitedtotheproductionofani-malproteinreplacements,suchaseggproteinformakingcakes,andheme(aprecursortohemoglobin)togivemoremeatlikeflavortoplant-basedalternatives.

Thankstothelatestdevelopmentsinstrainengineering,

thecostofdevelopingastrainforaspecificmoleculehasfallendrastically.Thisopensthewayforprecisionfermen-tationtoproducemoremoleculesthanbefore,without

beingrestrictedtoaddressingonlyverylargemarkets.In

thefuture,weexpectprecisionfermentationtoentermanymidsizeandsmallermarkets.

7BREAKINGTHECOSTBARRIERINBIOMANUFACTURING

Exhibit7-BiofoundriesReduceGreenhouseGasEmissionsintheProductionofMostMolecules

Nonexhaustive

ImprovementofkgCO2equivalentemissionperkgofproductbetweenconventionalandcurrentbio-basedproductionmethodsforselectedmolecules,withafurtherpotentialfor65%improvementafterfuturescale-up

–92%

4,500

–90%

17.4

–73%

1,000

4.9

–76%

1.3

4.9

3.7

1.9

1.7

1.3

355

0.5

Vanillin

DairyOilsSuccinicacid

ConventionalCurrentbio-basedFuturescale-up

Sources:DOIFoundation;BCGanalysis.

InvestingintheInfrastructureoftheFuture

Breakingthroughthecostconundrumthathasbedeviledbiomanufacturingwilldependoninvestmentcoalescing

behindstandardizeddesignsforbiofoundries.Leadtimesarelong,socorporatecustomersandgovernmentsarekeyplayersintheseearlystagesofkickinginvestmentand

constructionintogear.

Ourestimatesshowthatservinga$200billionmarket

requiresa20-foldexpansionofcurrentproductioncapacity.

(SeeExhibit8.)

By2040,theworldwillneed6,000new

fermentorsspreadacross1,000biofoundriesthathave2.4billionlitersoftotalcapacity.

(See“FermentationEconom-

ics.”)

Supplyingtheprimaryfeedstock,sugar,wouldtake65,000squarekilometers(40,000squaremiles)orroughlyequivalenttothelandmassofBavariaorWestVirginia.

Althoughthisisamassivechallenge,itisnotoutofreach.Bioethanol,whichrepresents10%to15%ofUSgasoline

consumption,hasalmostreachedpriceparitywithfossil

fuelsinasingledecade(thanksinpartgovernmentsman-dates)andhasbuilttheinfrastructuretosustaina$100

billionmarket.Althoughbioethanolfacilitiesaresimpler

andcheapertoconstruct,theyarecloseenoughtopreci-sionfermentationfacilitiestodemonstratefeasibility.

(See

“TheCornEthanolGrowthWave.”)

Theeventualphase-outofgasolinecarsalsowillfreeupalargequantityofcorn

andsugarforprecisionfermentation.

Theshifttolarge-scale,standardizedbiomanufacturing

sitesrepresentsanenormousopportunityforinfrastruc-

tureinvestment.

(SeeExhibit9.)

Somepilotfacilitiesandafewcommercial-scalefacilitiesnowexist,butstandardizingtheassetclassinlinewithofftakedemandwillunlock

capitalfromlater-stageinvestors.Thereisalreadyaninfra-structureconstructionopportunitystemmingfromhigherdemandthansupply.

(See“AnEmergingInfrastructure

AssetClass.”)

BOSTONCONSULTINGGROUP+SYNONYM8

FermentationEconomics

Boththestandardizationofbiomanufacturingfacilitiesandthedevelopmentofnewstrainsthatmakefurtherinnova-tionpossiblewillreducethecostsofproductionforthe

bioeconomy.Asthecostofproductionforanindividualproductfalls,demandforitwillincrease.

Realizingeconomiesofscaleisamatternotjustofthe

facility’stotalcapacitybutalsoofthesizeofitsfermentors.Forexample,a2.4-million-literfacilitythatoperatessix

400,000-literfermentorshaslowercapexandopexthanafacilitythatrunssixteen150,000-literfermentors.Further-morethefacilitywiththesixteen150,000-literfermentorswillhavelowercapexandopexperliterofcapacitythana600,000-literfacilitywithonlyfour150,000-literfermentors.

Thereareothervariablestoconsideraswell.Inbiofound-

ries,costsfallastanksizeincreases—uptoapointof

diminishingreturns.Facilitiesincurbaselineproduction

costsnomatterhowlargethefermentationtankis:base-

linequantitiesofenergyandmaterialsareneededtosteril-izethetank,formulateandsterilizethemedium,and

maintaincoolingwater.Therearetradeoffswithlarger

fermentorsizes.Tankslargerthan150,000litersrequire

fabricationinthefieldratherthanintheshop,which

meanslessqualitycontrol.Largerfermentorshaveahigh-ervolume-to-surface-arearatio,makingheatandmass

transferdesignmorechallenging.Andwithlargerfermen-tors,eachbatchisveryexpensive.Today,asingle

400,000-literfermentationbatchrequiresabout$100,000inrawmaterialsalone—soasinglefailureiscostly.Startupcostsarehigh,too,ascompaniesmustspendseveral

milliondollarsbeforeafacilitycangeneraterevenue.

Companiesmusttakeallofthesefactorsandothers—in-cludingtherobustnessofthemicrobestrain,theproduct

demand(forthecurrenttenantaswellasforpotential

futurefacilityusers),productpricing(margin),andavail-

ablefinancing—intoaccountwhenselectingthesizeofthefacilityandofthefermentors.Forthisreason,wearelikelytoseeamixofsizeandmakeup,whichwillincreasethe

importanceofstandardizingplantdesignandfeaturestolimitconstructionandoperatingcosts.

9BREAKINGTHECOSTBARRIERINBIOMANUFACTURING

•>$300million–$400million

•>60months

Biofoundry

>2millionliters

24(8%)

•Commercialproduction

•Continuousimprovement

Industrialscale

>100,000liters

•Scalabilitydemonstration

•Processandyieldrefinement

Pilot/demoscale

20,000–100,000liters

Subscale(92%)

255(84%)

Proofofconcept

Fundamentalresearch

Labscale

<20,000liters

•

•

Exhibit8-A$200BillionMarketRequiresa20-foldExpansionofCurrentCapacity

7xmarket($)

20xcapacity(liters)

$30billion

200millionliters

Currentfootprint

$50billion

500millionliters

Specialtychemicals

$50billion

1.5billionliters

Chemicalprecursors

$100billion

1.5billionliters

Food

Sources:Synonymanalysis;BCGanalysis.

Exhibit9-BiomanufacturingFacilitiesCanBeaNewAssetClass

Numberof

bioreactorsglobally

Facility

Usage

Capexandbuildtime

•Large-scaleproduction

•Non-pharmarequirements

24(8%)

•>$200million

•30–60months(bespokefacilitybuiltin-house)

•$5million–$50million(equipmentupgrades)

•3–12months(dependingonCMOavailabilityand

equipmentrequirements)

•$1million–$5million

•<6months(dependingonresearchlaboratoriesand

Total

universityavailability)

Sources:StateofGlobalFermentationCapacity2023;BCGanalysis(includingcaptivefacilitiesoflargechemicalplayers).

Note:CMO=contractmanufacturingorganization.

BOSTONCONSULTINGGROUP+SYNONYM