Message from our CEO
In 2009, Crucell’s vaccines were administered to a vast number of people worldwide, thereby preventing more than 3.6 million cases of infectious disease and over 819,000 deaths.1
Dear shareholder,
In 2009, we made great strides in terms of global integration, streamlining the way we work, improving performance and increasing accountability—all with the ultimate aim of increasing the impact Crucell has on human health. These achievements form a solid foundation on which to build our future.
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 by continued innovation. Our core business is stronger than ever and, with a clear strategy for sustainable growth and even more focus on research & development (R&D) activities, we continue to increase the number of people we can protect from illnesses and deaths caused by infectious diseases. I am very proud that for the second year running, we have achieved profitability. Together with solid revenue growth and a very strong year-end cash position, we were able to end 2009 on a high.
In 2009, we distributed more than 115 million vaccine doses in more than 100 countries throughout the world and we were able to take The Crucell Ambition, our corporate strategy for bringing innovation to global health, to the next level. The progress we made in 2009 is a clear indication that we are executing our strategy. Growth is the major theme underlying all our efforts. Our total revenues and other operating income in 2009 increased by 26% compared to 2008 and were driven by strong sales of vaccines.
The pandemic (H1N1) 2009 influenza virus brought into sharp focus the urgency of our mission to develop new solutions for infectious diseases, while making sure that our innovative products already on the market reach all those who need them. The relatively mild, but highly infectious, nature of the virus sparked public discussion about the need for vaccination and the quality of the available vaccines. The revolutionary influenza antibody research going on in our innovation & discovery department is what attracted Johnson & Johnson (JNJ) to sign a truly unique agreement with Crucell in September 2009. This partnership, with a total deal value of over €1 billion, including an upfront payment of over €300 million, comes with exceptional safeguards of Crucell’s ongoing independence. The partnership with JNJ is a strong endorsement of Crucell’s in-house capabilities for medical innovation and discovery, and a tremendous boost for these capabilities. JNJ’s investment in Crucell enables us to accelerate and expand our R&D programs and supports our move into new markets for our existing products. We have a responsibility to make the most of these opportunities.
As we grow further, capturing synergies and rationalization become ever more important. A rigorous review of Crucell’s business processes worldwide led to the operational excellence program ‘Healthy Ambition’, one of the strategic pillars of The Crucell Ambition, which was rolled out in early 2008 and completed in 2009. The program achieved run-rate savings of over €30 million by the end of 2009 and contributed to our positive results through improved yields in our production facilities, savings in overhead and many other operational improvements.
“Long-term growth is the major theme underlying all our efforts.”
The launch of one global Crucell brand in November 2009 reflects the new maturity of our organization and our growing impact on world health, which further strengthens our ability to bring innovation to global health. The new brand design is one we are proud of. It is strong in its simplicity, with bold use of color and form, and was inspired by the ‘eye’ of the Crucell logo. The ‘eye’ is the symbol of our vision as a company founded on innovative technologies and continuously looking for solutions to global health threats.
There is one other innovation I would like to highlight: the progress we are making in adopting a structured approach to corporate social responsibility (CSR). Crucell understands its responsibilities with regard to the environment and strives to be as transparent as possible about its activities. As we build the business, we must never forget to measure our success as a company in human as well as in financial terms. Think of what we can achieve together in 2010 if we all set ourselves the same goal: to make a meaningful difference to Crucell’s business, and with that to the health of people around the world. See Crucell's commitment to CSR for more information on our CSR activities.
On June 25, 2009, I celebrated 12.5 years with Crucell —a milestone anniversary in Dutch culture. Like most anniversaries, this one got me thinking about both the past and the future. Over the years, I have seen Crucell grow from a small biotech start-up to a global organization that is making a real difference to the health of people worldwide. That was my dream when I started at Crucell and I am both proud and grateful that, together with more than 1200 highly qualified and dedicated colleagues, we have made it a reality. More importantly, I see that we are expanding the boundaries of that reality, day by day. Innovation is the foundation on which Crucell was built, and what gives us the momentum to move forward.
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. For 2010, we foresee another good year for Crucell and we thank you for your continued support.
Ronald H.P. Brus
President and Chief Executive Officer
Leiden, the Netherlands, April 6, 2010
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- Figures based on Crucell vaccines Quinvaxem®, Hepavax-Gene®, Inflexal® V, Epaxal® and Vivotif®.