Crucell's strategy targets savings of 15% in 2008

At its March 12 investor day conference, Dutch biotechnology company Crucell outlined plans for the expansion of its vaccines business, and provided updates on its healthy pipeline. The firm's senior management also announced a cost cutting plan that it hopes will generate savings of 15% on last year's cost base. After the meeting, analysts at Lehman Brothers reaffirmed their confidence in the firm, noting that it is uniquely positioned within the European biotechnology sector with both a growing vaccines unit and a proprietary technology for the productions of biologicals. They maintained their 1-overweight rating with a 19-euro per share price target and 100% potential upside.

Crucell is already the largest independent player in the vaccine business, with sales and other income in 60 countries totalling 213.0 million euros ($327.3 million) last year. Strong organic growth in 2007 was driven by the successful launch of Quinvaxem vaccine, the only fully-liquid five-in-one product against five potentially-deadly childhood diseases as well as solid growth from travel vaccines. In 2008, the overall business is expected to grow a further 20%, with Quinvaxem anticipated to be the biggest driver of this increase and is expected to advance at a faster rate than the business as a whole.