This excerpt taken from the CRXL 20-F filed May 7, 2008.
With our current portfolio of existing products we are well positioned to benefit from the increasingly strong global demand for vaccines. As a consequence, we expect strong sales growth for our existing vaccine products.
We expect the deal flow from our PER.C6 licensing business to increase. We believe that the number of licenses and the revenue flow from the PERCIVIA joint venture will grow steadily in the future. The recent breakthrough that we achieved with our partner DSM Biologics, realizing fermentation yields of more than 15 grams per liter in a perfusion type bioreactor for monoclonal antibodies, gives a positive impulse to growth in our licensing activities.
Our development programs like malaria and tuberculosis will require continued investments in R&D. This investment will progress our development programs in the clinical trials. Furthermore we will continue to invest in discovery programs to progress these into the clinical trial phase.
We focus on overall effectiveness of our global sales network to increase our product sales and sell more third-party products through our sales channels to gain additional revenue.
In the course of 2008, we expect to make further decisions that may impact our income statement, such as setting priorities in our discovery and development programs, and seeking partnerships to accelerate the market introduction of pipeline products with solid market potential. We are not in a position to comment on expected 2008 results other than in global terms:
· We expect an increase in total revenue and other operating income by 20% in constant currencies(1);
· We also expect to achieve positive cash flow for the second year running;
· As we roll out our operational excellence program in 2008 we expect to further improve margins.
We expect revenues and operating income to be phased throughout 2008 like in 2007. Cash flow and working capital are expected to deteriorate in the first half of 2008 due to the seasonality of our business. We build inventory in the first half of the year to sell our products in the second half of the year. We expect the negative cash flow in the first half year to reverse in the final quarter of 2008, to end the year with an overall positive cash flow for the year.
(1) Constant currencies = Weighted average EUR/USD rate of 1.38 in 2007.
Information on the Company
This excerpt taken from the CRXL 20-F filed Jun 13, 2007.
Continued investment in R&D is required to progress our development program in clinical trials and eventually obtain regulatory approval. We want to increase the overall effectiveness of our global sales network to increase product sales and among others sell more third-party products through our sales channels to gain additional revenue. We are expecting to reach operational cash break-even in 2007, despite increased investment in R&D, sales and marketing. Further guidance will be given during the year.