Message from our CEO
In 2008, Crucell’s vaccines were administered to a vast number of people worldwide, thereby preventing more than 3 million cases of infectious disease and over 700,000 deaths that would otherwise have occurred.
Dear fellow shareholder,
I am very proud that for the first time in the history of Crucell, we achieved profitability for the full year. Together with strong revenue growth and cash position, we were able to end 2008 on a historic high.
Crucell is a rapidly growing biopharmaceutical company with ambitious goals. We aim to create shareholder value by following a clear and convincing strategy for profitable growth. Our core business is stronger than ever and, with a clear strategy for sustainable growth and even more focus on research and development activities, we continue to increase the number of people we can protect from infectious diseases.
The progress we made in 2008 is a clear indication that we are executing on our strategy – The Crucell Ambition. Autonomous growth is the major theme underlying all our efforts; our sales in 2008 increased by 33% compared to 2007 and were driven by strong sales of our paediatric vaccines, travel and endemic vaccines as well as a doubling in license revenues and licensee milestone income. In 2008 Crucell sold more than 100 million vaccine doses in more than 80 countries throughout the world, which makes us the largest independent vaccine player in the world.
The significant growth of Quinvaxem® in 2008 is expected to continue in 2009. This 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.
We intend to use the expansion into new markets and the sales and marketing potential of our marketed products as an important driver for future growth. This growth will further be supported by the progress of our clinical programs, in particular our rabies antibody combination, our tuberculosis and malaria programs, as well as a revolutionary discovery of monoclonal antibodies which have the potential of being used as a universal therapy against flu.
Our PER.C6® cell line production process has already proven that it is fully scalable, producing high yields in large bioreactors, and transfers seamlessly to large-scale GMP manufacturing. Furthermore, another key milestone was achieved with the PER.C6® technology in 2008 when our scientists reached a record production level of 27 g/L at harvest for an antibody product. This demonstrates the power and robustness of the PER.C6® technology and shows the impact it will have to the overall economics of manufacturing biopharmaceuticals. This was reflected in the increased number of licensees and income we realized in 2008.
As we grow further, capturing synergies and rationalization becomes ever more important. A rigorous review of Crucell’s business processes worldwide has been completed. Our operational excellence program ‘Healthy Ambition’ was rolled out in 2008. The program is targeting savings of €30 million by the end of 2009; initial net cost savings of €5 million were achieved in the second half of 2008. This program contributed to our positive results through improved yields in our production facilities, savings in overhead and several other ‘quick wins’ delivered in 2008.
Crucell understands its responsibilities with regard to the environment and strives to be as transparent as possible about its activities. This year we included a special section, in which we take the opportunity to share with you our ideas, ambitions and activities regarding Corporate Social Responsibility (CSR). Crucell is fully committed to being a good corporate citizen and conducting business in an honest and ethical way with the lowest possible environmental footprint. See page 34 of the 2008 Annual Report, for more information on our CSR activities.
For 2009, we expect another good year for Crucell. Our sense of shared purpose is stronger than ever, and we look forward to the ongoing growth of our product sales as well as further progress of our pipeline programs.
Our achievements so far are thanks to the tireless efforts and motivation of our employees, Crucell’s most important asset, and to your willingness as a shareholder to invest in Crucell. We thank you for your continuous support.
Ronald H.P. Brus
President and Chief Executive Officer
Leiden, the Netherlands, April 21, 2009