Message from our CEO
Dear fellow shareholder,
Crucell is a rapidly growing biopharmaceutical company with ambitious goals. We aim to create shareholder value by following a clear and convincing strategy for growth.
The progress we have made in 2007 is a clear indication that we are executing on this strategy. Growth is the major theme underlying all our accomplishments; our sales increased by more than 50% compared to 2006. We are selling our products on a global basis using our own distribution network. And we are active in many countries in product and technology development, clinical studies and vaccine production.
Our strong autonomous growth in 2007 was driven by the successful roll-out of Quinvaxem® in the fourth quarter of 2006, the only fully-liquid pentavalent vaccine that protects against five potentially deadly childhood diseases in one shot. The product makes a significant contribution to children’s vaccination programs in the developing world and is Crucell’s best selling product. Quinvaxem® has enabled the company to become a major supplier to paediatric vaccination programs worldwide. The significant growth Quinvaxem® showed in 2007 is expected to continue in 2008.
The rapid pace of our growth is also reflected in the progress of clinical trials, including our rabies monoclonal antibodies, the FluCell development by sanofi pasteur and our progress in tuberculosis trials.
The scalability of our PER.C6® technology had already demonstrated levels of up to 20,000 liters per bio fermentation unit.
Another important milestone was achieved with the PER.C6® technology for the production of monoclonal antibodies and recombinant proteins. Scientists reached a record level titer of 15 g/L at harvest for an antibody product. It demonstrates the power and robustness of the PER.C6® technology and shows the impact it will have to the overall economics of manufacturing biopharmaceuticals.
As Crucell’s Management, we must now rise to the challenge of maintaining the forward momentum and further stimulating the Company’s powers of innovation while at the same time managing available production facilities at optimal capacity and focusing on efficient operations.
We intend to use the expansion into new markets and the sales and marketing potential of the Company as an important driver for future growth. We will strive to have ‘best in class’ marketing and sales capabilities. This approach will allow us to operate quickly and effectively on the international commercial markets.
“As Crucell’s Management, we must now rise to the challenge of maintaining the forward momentum and further stimulating the Company’s powers of innovation while at the same time managing available production facilities at optimal capacity and focusing on efficient operations.”
We are the largest independent player in the vaccine business based on revenue, with sales and other income in 60 countries totalling €213.1 million in 2007.
We generated positive cash flow driven by a strong operating cash flow of €22.2m in 2007 compared to a negative €54.0m in 2006.
As we grow further, capturing synergies and rationalization becomes ever more important. Therefore we have nominated Dr. Cees de Jong to join our Management Board. This nomination will be proposed to Crucell’s shareholders at the company’s AGM on May 30, 2008. Cees joined Crucell as Chief Operating Officer in September 2007 and with his focus on operational excellence, he is an integral part of Crucell’s strategy to accelerate growth. A rigorous review of Crucell’s business processes worldwide is currently being conducted and savings of approximately 15% by the end of 2009 are being targeted.
Our Company’s future looks promising, supported by our solid financial position. What we have achieved so far has been feasible due to the efforts and motivation of our employees, which are the Company’s major asset, and to your willingness as shareholders to invest in Crucell, which makes it possible to realize our ambitious goals. We thank you for your continuous support.
Ronald H.P. Brus
President and Chief Executive Officer
Leiden, the Netherlands, May 1, 2008