4c.1 4c.2 The presentation on the innovation part of DSM • Chapter 3: Technology leadership Nutritional Products contains the following This chapter shows examples of DSM Nutritional subjects: Products’ capabilities on innovation of new formulations and new synthetic routes and • Chapter 1: The innovation process processes. These examples confirm DSM Chapter 1 describes the overall innovation Nutritional Products’ position as a technology process from the discovery phase of a new leader. product or formulation, to its further development, the registration/approval process and finally the launch. • Chapter 2: Market needs and DSM Nutritional Products’ solutions Chapter 2 gives examples on how the important needs in the market of nutritional products drive the innovation process. In the area of Human Nutrition and Health solutions for risk reduction in diabetes, and cardiovascular disease are described. In the area of Animal Nutrition and Health solutions like alternative growth promoters for enhanced feed conversion, and emission reducers are presented, and in the area of Personal Care a unique product for UV protection is illustrated. 4c.3 • DSM Nutritional Products’ target innovation health and performance of animals, and at the areas are defined as solutions to the needs of the same time address animal welfare issues. market, provided by DSM Nutritional Products’ In addition, there is an increasing concern about technology base. the phosphate and ammonia amounts in the excretion of farming animals. Feed additive • The major industry trends and needs in the solutions that help to reduce these emissions are Human Nutrition and Health markets are the key needed and will help to provide a healthier drivers for the development of new products and environment. concepts at DSM Nutritional Products. The growing health awareness, the changing of • The dominant trends in the Personal Care market peoples lifestyles and the aging population are driven by the aging population and an ever increase the demand for health ingredients and better educated consumer. There is a growing for new scientific concepts to prevent diseases evidence showing that lifelong exposure to UV- such as diabetes, cardiovascular, cancer, etc. radiation strongly damages skin and hair. A growing body of scientific evidence suggests The trend in cosmetics is changing from ‘covering that functional foods will help to reduce risks of and mimicking’ to ‘curing and preventing’. diseases. • DSM Nutritional Products is capable to find • In Animal Nutrition and Health there is a tailor-made solutions for each application to meet continuous challenge to increase the feed the customers specific needs. DSM Nutritional conversion rate. Since the use of antibiotics as Products’ competences are key for delivering growth promoters is going to be banned as of new products, forms and applications. 2006, there is a growing demand for alternative products. An important alternative to antibiotics • DSM Nutritional Products aims to launch a are eubiotics. Eubiotics are products based on number of ingredients and forms for each segment natural substances that maintain or enhance the every year to generate a sustainable growth. 4c.4 • The innovation machine is systematically filled • Examples of recently introduced innovative from different sources. Ideas and opportunities products that were developed in house are are generated in-house, or sourced externally in a TeavigoTM and Lycopene for the Human Nutrition systematic way to ensure a constant flow through and Health segment, and HyD® for our innovation pipeline. These ideas and the Animal Nutrition and Health segment. opportunities are translated via the innovation Other products like LAFTI® for gut health and machine into new compounds, new forms and Vevovitall® for pig feed are examples of products applications and even into new business models. that are produced by DSM Food Specialties and DSM Fine Chemicals respectively, and are • There is a strong interaction between the various brought to the market through DSM Nutritional marketing, sales and R&D departments. Products’ broad marketing network. The trends and needs in the market are continuously monitored by the marketing and • DSM Nutritional Products has a strong sales staff. These trends and needs are innovation track record and continues to build on subsequently matched with the available this through the well established innovation scientific tools at DSM Nutritional Products. process. The combination of market and scientific information is used to determine business models and plans. 4c.5 • DSM Nutritional Products has established a very • After the launch of a new product or formulation well defined innovation process. The process is the market success is reviewed, additional R&D divided in several project phases that as a and market research might be performed and the combination will lead to an efficient translation production process is further optimized. of an idea into the launch of a new product or formulation. • During the overall innovation process a governing practice is in place to ensure that • In the discovery phase opportunities are project milestones are met and critical issues are generated, identified and subsequently described quickly addressed. and recorded in a specified and well defined document. These opportunities are evaluated on • Registration is a key factor in developing new their possibilities and future success factors. products and forms for Human Nutrition, Animal Already in this phase there is a strong focus on Nutrition and Personal Case. Safety assessments the possibilities for differentiation through are in a number of cases the time determining various product formulations. factor. This key factor is addressed in an early phase of the process to ensure that the • During the feasibility study key topics are requirements of regulatory authorities are met. resolved and the concept is proven through a limited number of laboratory experiments. • Whereas a typical project in our process lasts only When necessary some small adjustments to the 3-4 years and the related costs are in the range of overall business plan are implemented. € 15-30 million, the costs related to the development of a new pharmaceutical are up to a • After successful feasibility testing, the project will factor of 20 higher. proceed to its research and development phase in which many lab experiments are performed and • Throughout the innovation process we the production process is developed. In the next continuously build our patent position in phase the registration is prepared and processes, form technologies and applications. subsequently the launch. 4c.6 • For each health segment (like diabetes, Using well designed and specific assays the cardiovascular, bone health, etc.) specific activity levels of a large variety of compounds are screening assays are established, targeting a measured. In a rapid automated process the specific health benefit. To this extent the critical natural product library is screened against the biochemical pathway is determined for each assay and the highest potential future product health segment, in order to be able to specifically candidates for various applications are accurately target that pathway on a molecular level. selected. Once the targeted pathway has been determined, new active compounds need to be identified that • Each active candidate targets a specific health can interact with the most important receptors segment to which it will give beneficial effects. within this biochemical pathway, in order to These health benefits may include risk reduction prevent specific disorders and diseases. for chronic impairments, the prevention of certain diseases or the enhancement of the body’s • In the identification of new products for Human functioning and well-being. Nutrition and Health, Animal Nutrition and Health and Personal Care there is a strong focus • In the follow-up step the carefully screened on products from nature. Nature has optimized candidates are evaluated for further compounds over thousands and thousands of development. years. The initial compounds considered for development are those that are ideally a part of the food chain and have a history of safe use. • For this purpose DSM has a library of over 80,000 natural products and extracts. These are pure compounds of extracts from natural biosources like fruits, vegetables and other tools. 4c.7 • Before a new active compound is registered a At the same time these studies form a high entry complete registration dossier needs to be barrier for competitors. delivered to the various authorities. The dossier combines the results from an extensive series of • Regarding the efficacy studies several animal and safety and appropriate efficacy studies. Safety is a human tests are performed to not only measure key point in the registration of new active the effect but also to understand the mechanism compounds for the food and feed industries. behind the effect. This should result in a plausible explanation of the measured effects and • DSM Nutritional Products’ safety package should elucidate the exact working mechanism. complements the history of safe use of its products by state-of-the-art scientific evidence. • The registration files have to meet different During the safety studies in-vivo experiments are regulatory frameworks all over the world. performed to measure the effect of the active The framework in the US is best defined and the compound on the Adsorption in the body, the most efficient, whereas in Europe it differs Distribution in the body, its effects on the substantially per country. Metabolism of the body and finally the Excretion of the compound. This is summarized as ADME. • The efficacy effects in the nutritional field are The safety studies are performed in two different more difficult to demonstrate than the effects in phases. The so-called subchronic studies are the pharmaceutical field. Since our nutritional relatively short studies of a couple of months, products already have a safe history due to their whereas the subsequent chronic studies, i.e. natural origin, nutritional products can be multi-generation studies, are generally performed developed faster than pharmaceuticals. in about 2-3 years. Overall, the duration and costs involved in the nutritional field are much less than for pharma. • These safety studies test if a specific active A typical project in the nutritional process lasts compound can be used safely for an extended only 3-4 years, including the registration process, period of time. In the nutritional field safety is and the related costs are in the range of key and DSM Nutritional Products delivers a € 15-30 million, which is less than 10% of the sound and extensive safety package. costs that is spent on a new pharmaceutical. 4c.8 4c.9 • During the last century, progress in nutrition and that an increasing number of this group relates to hygiene have increased peoples life expectancy. very young people. In total chronic diseases In parallel, however, changes in human behavior already account for more than 60% of the overall and lifestyle have resulted in a dramatic increase health costs and this will only increase in the in chronic diseases. Especially the past two years to come. Healthcare costs the consumer a decades have seen an explosive increase in the major part of the GDP. number of people diagnosed with diabetes, cardiovascular diseases (CVD) and obesity. • Longer periods of elevated glucose levels in the An increasing percentage of cardiac and diabetes blood will lead to a complex range of patients are overweight, have increased blood malfunctions and serious diseases like diabetes sugar, dyslipidemia and hypertension. type II and CVD. Diabetes type II (Non-Insulin This condition is called the metabolic syndrome. Dependent Diabetes Mellitus, NIDDM) is a It is a cluster of risk factors that is responsible for growing problem in many developed and much of the excess cardiovascular disease developing countries. It accounts for 90% of the morbidity among overweight and obese people, global cases of diabetes. Onset of diabetes type II and people with diabetes type II. In conjunction is characterized by progressive loss of control with genetic susceptibility the metabolic over the blood glucose level. syndrome is brought on by environmental and behavioral factors such as sedentary lifestyle, • Individual lifestyles and nutrition plays a key role overrich nutrition and obesity. in preventing these diseases. Nutritional science can help to find solutions to the increase of • The support of healthy aging, by a.o. the chronic diseases. Nutritional science has proven prevention of this syndrome, is seen as one of the that chronic diseases can be delayed or even greatest challenges of the 21st century. Currently, prevented by adapting peoples nutrition to their a quarter of the US population suffers from the genes. On the consecutive pages two examples metabolic syndrome and other populations show relating to diabetes and cardiovascular diseases a similar trend. Even more worrying is the fact are described. 4c.10 • For each health segment DSM Nutritional A library of pure compounds and several libraries Products established screening assays targeting a of plant extracts were screened for PPARγ- specific health benefit. Generally these health agonists on the molecular level. It is well benefits are the result of interactions between an documented that PPARγ is a key regulator of active compound and specific malfunctions in the glucose control and energy metabolism. PPARγ biochemical pathway that is responsible for a agonists lead directly to lower blood glucose certain disease. levels. • For each health segment the critical biochemical • Often the initial screen is not sufficiently pathway is determined in order to be able to selective, and a highly sophisticated combination specifically target that pathway on a molecular of additional filters is necessary and will finally level. These molecular targets are used to screen lead to the identification of product candidates a library of natural compounds on their activity for further development. and selectivity levels. • An appropriate molecular target is selected to run through the high throughput screening. The lead candidate compounds are further evaluated by in- vitro assays, in-vivo animal experiments and eventually in human studies. • On the right side an example is given for glucose metabolism. Blood glucose control is one of the prominent target segments in DSM Nutritional Products’ business strategy for Human Nutrition and Health. 4c.11 • The selection criteria in the overall screening • The result of this screen is a convincing proof of process are rational step-by-step filters. DSM Nutritional Products’ R&D approach in the For the target segment blood glucose control, search for new nutraceuticals with strong health DSM Nutritional Products can look back how the benefits. With this highly sophisticated discovery step-by-step selection to the developmental platform DSM Nutritional Products created a compound has been successfully completed. unique position within its industry. DSM Nutritional Products has established a library of extracts with a high diversity. Besides choosing the appropriate molecular target, such a library is key for successful high throughput screening. • In a first broad screening, starting from more than 80,000 plant extracts, the primary hits were selected. These primary hits still amount to about 5% of the total number of compounds of the overall library. These primary hits were screened in a consecutive phase of validation experiments that lead to a series of validated compounds. The overall combination of several high throughput screening assays lead to 100 validated compounds. • Additional selection criteria like safety, accessibility and ability to create entrance barriers through patents, further reduced the number of lead compounds to 32. 4c.12 • To be able to investigate effects of the active drug benchmark (called TZD10), but to have an candidate compound on the glucose metabolism analogue reduction profile and overall a highly in-vivo, established animal models for diabetes significant effect. have been developed. • The depicted data show the effect of the natural • During the tests the effect of the active product on blood glucose level. For the natural component is measured and studied. product, as well as for the entire product class In addition, a so-called dose-response-relationship and combinations with other products (like is established in order to demonstrate the efficacy Biotin) a series of patents has been filed. in relation to the dose. Pharmacological drugs The active component is a new benchmark for that act via the same mechanism are tested in risk reduction in diabetes and will be launched in parallel as a positive control. the market place in the shortest possible time. The pharmacological compounds provide an important parameter for determining a compounds’ efficacy and allow to determine the correct dose of the active nutraceutical compound for human use. • Since DSM Nutritional Products’ nutraceutical products focus on prevention instead of curing, the general objective is to find products that work in a nutritional amount, rather than the relatively high amounts typically used as pharmaceutical drugs. Also it is clearly not the objective to employ nutritional ingredients to lower blood glucose levels to an extent as the 4c.13 • Lycopene is the major carotenoid in tomatoes, oxidation. Epidemiological studies also show that giving this fruit its attractive red color. intima thickness of the common carotid arteries Recently, there has been increasing scientific is significantly lower in individuals with higher evidence suggesting that this nutrient might play lycopene plasma. an important role in the prevention of chronic diseases such as cardiovascular diseases (CVD) • The research group also found that pure lycopene and cancer, particularly prostate cancer. significantly reduces the effect of the male Several epidemiological studies have shown that hormone androgen on the prostate. men who frequently consume tomato-based Androgens are the key drivers in the foods are less likely to develop prostate cancer. development of prostate cancer in men over a Moreover, high blood levels of lycopene were lifetime. State-of-the-art nutrigenomics associated with a lower prostate cancer risk. technology was applied to investigate the Prostate cancer is a serious health problem and mechanism. This technology enables the activity affects more than 500,000 men per year of thousands of genes to be monitored at the worldwide. same time. It was found that lycopene interfered with local androgen activation and that the • During recent years a group of scientists at DSM expression of androgen-regulated target genes Nutritional Products has undertaken intensive was reduced. In addition, lycopene decreased the research to establish the mechanisms by which expression of two other factors that are lycopene may prevent cardiovascular disease and considered to be risk factors for prostate cancer. prostate cancer. The results showed that the pure lycopene molecule targets a key mechanism driving • Evidence from epidemiological studies and first prostate cancer development. human studies show that higher lycopene levels are associated with lower risks for • Lycopene has recently been introduced on the atherosclerosis, myocardial interaction, stroke market as an active ingredient in a.o. multi- and CVD death. Higher lycopene levels protect vitamin tablets as well as in pure forms for against high LDL-cholesterol levels and DNA cardiovascular and prostate health. 4c.14 4c.15 • Today customer expectations regarding safety, can be further categorized as probiotics, quality and origin of food are influencing the prebiotics and direct acting gut microflora entire food chain. This includes the animal feed modulators. industry. Consumer protection orientated political debates have pushed regulatory • The gut flora is thought to play a key role in authorities to translate these requests into new general health. Gut bacteria produce desirable as legal requirements in order to insure food safety. well as undesirable metabolites and sometimes One particular objective is to substitute the they themselves may act as pathogens. routine use of Macrolite antibiotics as growth Composition as well as activities of the gut promoters. These Macrolite antibiotics are of a bacteria can be influenced by nutrition. different type than the β-Lactam antibiotics Adding eubiotics to animal feed is a preventive produced by DSM Anti-Infectives, which are only approach to keep the intestinal microflora in used for human purposes. balance and thereby maintain health and performance. • As a consequence of the forthcoming complete ban of the Antibiotic Growth Promoters in the • Eubiotic products are regulated by the new EU EU (January 2006) there is an urgent need for Directive on Feed Additives, which will facilitate alternatives. A main driver for the need for approval within the EU legal system. effective substitutes is to maintain Europe’s competitive position in animal production. • DSM Nutritional Products develops such alternative concepts to support health and performance of livestock animals under the term eubiotics. These alternatives act by a selective modulation or stabilization of the gut flora and 4c.16 • A healthy gut flora requires a distinct balance is divided into 97% main flora (to a large extent between the main flora consisting of beneficial anaerobic, Gram positive), less than 3% microorganisms, the neutral collateral flora and collaterial flora and only about 0.01% residual the potential harmful residual flora. flora. • Eubiotic concepts support the beneficial • The cohabit between the host and a well microflora and selectively inhibit facultative balanced gut flora is referred to as eubiosis. pathogenic microorganisms of the residual flora. In contrast to that state a disturbed gut flora is With these effects, eubiotics differ from the still called dysbiosis (Rolle and Meier, 1993). available growth promoting antibiotics, which due to their broad unspecific mode of action, impact on the entire gut flora. • A gastrointestinal tract is an extensive immune organ that integrates complex interactions among diet, external pathogens, and local immunologic and non-immunologic processes. This organ is subject to enormous and continual foreign stimuli from food and microbes. • The host specific flora is acquired during and after birth by the first contact with the mother’s body flora as well as the immediate environment. It consists of a multiplicity of germ species, which colonize in both the skin and the mucous membranes. The well examined gut for a human 4c.17 • To confirm the working hypothesis of targeted compounds, a selected gut flora modulator has been identified. To this extent DSM Nutritional Products has developed in-vitro screening assays which aim to project effects in-vivo. These in- vitro assays are based on specific bacteria, which were isolated from the gut flora of pigs at the DSM Research Center for Animal Nutrition. It allows the investigation of both the inhibition on microbial growth and the potential benefits of the eubiotic compound. The assays have been validated with an animal model and with growth performance trials. • In 2004, a promising compound has been identified following this approach. In-vitro results nicely demonstrate the desired effects on potentially pathogenic bacteria, while not affecting the main flora. • After confirmation of the assay the target compound is now being further evaluated by testing the concept in the target animal. 4c.18 • VevoVitall®, is a naturally occurring well • The anti-microbial properties of VevoVitall® are established food preservative. It is a special, shown by the inhibitory effect on pathogenic patented ultra-pure grade of benzoic acid, a solid bacteria like Escherichia coli and other Coliforms. non-corrosive acid, which naturally occurs in At the same time the positive gut bacteria like many fruits and berries, like cranberries, prunes, Lactobacilli are not affected. Growth trials cinnamon and ripe cloves. It has long been significantly demonstrate the improvement of generally recognized as safe (GRAS) by the FDA. weight gain in piglets in a range of 10-20%. These effects exceed the performance • Last year Vevovitall® was launched by DSM as an improvement usually observed by addition of the additive to pig feed. Acting as an acidifier in feed, common growth promoters like antibiotics, that Vevovitall® reduces ammonia emissions in animal are banned as from 2006. excretion by up to 35%. Herewith, the manure coming from fattening pig husbandries becomes • This innovative new product shows a more environmentally friendly, saving farmers tremendous growth potential, as it benefits both the costs of air purification systems for their the environment as well as the economic side of stables and dung pits. Due to the unique high pig husbandry. purity of the product it meets the requirements of the EU Directive concerning feed additives (Group M-70/524/EE). • Based on internal studies and several international growth trials, DSM Nutritional Products is now also seeking registration for VevoVitall® in piglets as an additive, claiming positive effects on growth performance. 4c.19 4c.20 • From all sun light reaching the earth’s surface, • In addition, scientists have raised concerns about only 5% can be classified as UV-radiation. the estrogenic activity and the lack of This small part, however, has a major impact if it biodegradability of some members of this class of hits and penetrates the skin. It can cause compounds. The mechanism for most present irritation, sunburn, premature skin aging and as UV-filters and its carriers is to have a risk of the worst consequence, skin cancer. getting absorbed into the skin, including all the Dermatologists have warned for more than two creams’ components. decades about the serious connection between intensive UV-exposure and the risk of different types of skin cancer. Effective skin protection is thus essential. • There are also other unfavorable factors. Photoaging, in particular caused by UV-A radiation, is gaining attention. UV-A rays set on destructive processes in the collagen network in our skin, which leads to skin wrinkles and less elasticity. This has resulted in a growing demand for UV-A filters. Nowadays, nearly every UV- protection lotion contains a set of UV-A and UV-B filters, products which form the core of DSM Nutritional Products’ Personal Care sales program. 4c.21 • Effective skin protection is essential. The market • This combination leads to a unique polymeric is constantly looking for new and innovative UV- UV-filter that has excellent cosmetic properties light filtering substances which provide effective and minimizes the risk of skin penetration due to protection against UV-radiation, are easy to its high molecular weight. Additionally PARSOL® formulate, have a pleasant conditioning effect SLX exhibits excellent photostability and is and at the same time do not exhibit undesirable compatible with all available organic and transdermal penetration. inorganic filters. • DSM Nutritional Products’ Personal Care R&D • The unique molecular design of PARSOL® SLX Center focuses on two main areas: UV-protection also opens up a new application area where and skin care. Cosmetic formulation, skin traditional UV-filters are unable to provide good biology, skin physiology and chromophore performance: the prevention of UV-induced hair chemistry are the essential competencies used in damage. In a series of internal and external the development of new products. efficacy studies it was clearly demonstrated that PARSOL® SLX is significantly effective in • With PARSOL® SLX, DSM Nutritional Products maintaining optimal combability and preventing introduced the first commercial example of a premature fading of hair color. completely new generation of UV-B filters. Unlike conventional monomeric filters, this • The connection with the expertise of DSM innovative UV-filter is based on the combination Performance Materials will add a new dimension of a polysiloxane backbone in conjunction with a to the polymeric UV-filter R&D program of DSM classic, highly effective UV-B chromophore (see Nutritional Products. picture). 4c.22 4c.23 • An important part of the R&D within DSM • An example of tailored product forms is Nutritional Products is devoted to the discovery demonstrated by β-carotene. Based on a variety and development of new innovative formulations of very different product forms, β-carotene can of existing basic products. The know-how and be used as gel-capsules, where a liquid oil abilities to create these new formulations are suspension is needed, as tablets, where elastic unique in the industry. and stable dry beadlets are necessary to survive the harsh tabletting process in fast running • Most active molecules produced by DSM tabletting machines, and as liquid and dry food Nutritional Products are very sensitive to light, forms, where fast dissolving, or non-dissolving - temperature and moisture, even in their water or oil stable- forms are requested. crystalline form. They often have limited Due to their color strength and shade, DSM applications in the target industries and Nutritional Products’ β-carotene forms for sometimes show a limited bioavailability. coloration are benchmarks for the beverage These active components therefore need to be industry. Beside the forms for the human protected and tailored to the target industry nutrition and health segment, a number of stable segment. DSM Nutritional Products has and bioavailable carotenoid forms for the use in developed a broad range of formulation animal health and nutrition are also produced. techniques to overcome the hurdles of instability of the active compounds. • DSM Nutritional Products has a strong track record in launching new product forms. • Product forms and applications are a very useful By continuously renewing the product forms tool for differentiating and renewing existing portfolio, DSM Nutritional Products reacts fast to products. Due to the formulation expertise, DSM changing market trends and customer needs. Nutritional Products is able to open up new This presents the profitability of our existing markets through new product forms. products. Furthermore, the highly developed and broad formulation capabilities create strong entrance barriers. 4c.24 • Another part of R&D within DSM Nutritional Nutritional Products and later independently by Products is devoted to the development of new Chinese companies. Today many Chinese processes for our existing products. Recently, a companies are using this process for Vitamin C breakthrough technology for the future manufacturing. The advantage over the manufacturing of Vitamin C was discovered. conventional Reichstein process is that it reduces the number of steps to two fermentation steps • Currently DSM Nutritional Products is using a and three chemical steps to manufacture Vitamin technology based on the so-called Reichstein C, resulting in a reduction of the overall number process. This synthesis route combines one of process steps from seven to five. At the same fermentation step with six chemical steps for the time, however, DSM Nutritional Products has manufacturing of Vitamin C. substantially improved its chemical process, resulting in large cost reductions. • As stated earlier DSM Nutritional Products’ R&D is focused on applying and using nature to • Recent progress in DSM Nutritional Products’ produce natural products. Biotechnology is a biotechnological research has led to the discovery powerful tool to produce compounds with the of a process that in the future will consist of only use of molecules from nature like enzymes, one fermentation step. With just one step this bacteria and microorganisms. direct fermentation approach is a real Recently, DSM Nutritional Products found that breakthrough technology. If successfully biotechnology has the potential to shorten the implemented it will revolutionize the state-of-the- Vitamin C process chain by extending the art Vitamin C manufacturing. transformations that are performed by microorganisms and thereby replacing chemical steps. The first achievement to this extent is the so-called Keto-Gulonic Acid (KGA) process, which was initially discovered by DSM 4c.25 • After the successful lab scale fermentation the first assessment of scale-up shows that the direct fermentation approach will most likely lead to a significantly simplified production set-up. A comparison of the equipment needed for the KGA-fermentation processes of the Chinese producers and the equipment that a direct fermentation approach would need, shows the important potential of this breakthrough technology. This can lead to a full cost leadership in Vitamin C manufacturing. • An extensive patent application portfolio covering all aspects of the Vitamin C fermentation technology, like the two-step fermentation process using batch, fed-batch and continuous technology, the use of novel enzymes, the use of novel genes, novel genetic tools, the product isolation, etc. has been filed. • Currently, DSM Nutritional Products is working on the further development of the direct fermentation route and its production set-up. 4c.26 • DSM Nutritional Products’ innovation for new ingredients, including nutraceuticals. capabilities have led to recent successes and indicate a large potential for further sales growth • Due to the combination of fast moving in the coming years. developments in both science and consumer needs the field of human and animal nutrition as • New innovations are strongly driven by customer well as cosmetics is one of the most interesting needs. Recent market trends will further enhance fields in the chemical industry in the next the use of nutritional ingredients and expand the decade. The mid- and long term prospects of the market in this field. The major trends in the nutritional ingredients business look very Human Nutrition & Health markets as well as in promising. The current innovation headroom Animal Nutrition & Health and Pharma & amounts to over € 10 billion. Personal Care are the key driver for the development of new products and concepts. • DSM Nutritional Products’ new product pipeline Due to the increasing health awareness, the is very well filled with short-term and long-term changing of peoples lifestyles, the aging efforts fully balanced. The attrition of older population, and trends in modern farming of products will be more than compensated with cattle, poultry and fish there is a strong demand products that were recently introduced and that for health enhancing ingredients. will be introduced in the years to come. DSM Nutritional Products’ current sales from • At the same time new scientific concepts for the new products amounts to approx. € 200 mln, not prevention of widespread diseases result in an including sales from new formulations. increase of health ingredients. Recent scientific As the global leader in key technologies and the research has identified more and more links access to all major customers, DSM Nutritional between food, genetics and health. A growing Products is perfectly placed to get the maximum body of scientific evidence shows that active out of the developments this market is going to ingredients can help to reduce risks of diseases. offer. These trends considerably increase the demand 4c.27 • This slide gives an overview of the new products amount of raw feed volume needed, as well as and new formulations in DSM Nutritional the amount of manure produced by the animals. Products’ pipeline. Also in Animal Nutrition and Health the product portfolio will be complemented with improved • Innovation of ingredients for the Human product forms of the existing portfolio. Nutrition and Health market focuses notably on ingredients that enhance the functionalities of • For the Personal Care market the main focus is food additives. DSM Nutritional Products has on UV-filters for hair and skin protection. been able to launch at least one new product per The development of new generations of year and the pipeline for the future is very solid. UV-filters, like PARSOL® SLX, will add to the new The key drivers for the development are the most product portfolio. important health categories like cardiovascular, diabetes type II, inflammation and bone health. The new product portfolio will be complemented with improved product forms of the existing portfolio (like vitamins, carotenoids and enzymes). In addition, new applications for existing products will be exploited. • The future Animal Nutrition and Health pipeline will be mainly focusing on products to effectively replace antibiotics growth promoters (eubiotics) and to address environmental concerns (e.g. through the use of acids or enzymes). Addition of eubiotics and enzymes enhance the efficiency of the feed conversion process, thus reducing the 4c.28 • DSM Nutritional Products’ target innovation areas are defined as solutions to the needs of the market, provided by DSM Nutritional Products’ technology base. • DSM Nutritional Products innovation process can build upon the various technology platforms, its expertise and competences in the different market segments. This differentiates DSM Nutritional Products from its competitors, it generates patented opportunities, and most importantly it allows us to meet the needs of our customers. • DSM Nutritional Products is capable to find tailor-made solutions for each application to meet the specific needs in the market. DSM Nutritional Products’ competences in Research and Development are key for delivering these new products, new formulations and new applications.
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