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Bringing innovation to global health<br />

<strong>Crucell</strong> 2010<br />

www.crucell.com


Contents<br />

Research and development – see page 12<br />

Technologies – see page 20<br />

Products – see page 26<br />

Our mission<br />

<strong>Crucell</strong>’s mission is to protect human lives<br />

from infectious diseases by bringing meaningful<br />

innovation to global health.<br />

<strong>Crucell</strong> is a global biopharmaceutical company focusing on the research<br />

and development, production and marketing of vaccines and antibodies<br />

against infectious disease worldwide. Currently we are combating<br />

twelve major infectious diseases with our range of marketed vaccines<br />

in the paediatric, travel and endemic, and respiratory fields.<br />

In this report you can read all about our mission, vision, strategic pillars<br />

and our commitment to the principles of Corporate Social Responsibility.<br />

For inquiries, please contact Corporate Communications.<br />

Email: communications@crucell.com.<br />

Overview<br />

<strong>Crucell</strong> at a glance 02<br />

<strong>Crucell</strong>: A global perspective 06<br />

Message from our CEO 08<br />

Our business<br />

Research and development, technologies and products 10<br />

Research and development 12<br />

Technologies 20<br />

Products 26<br />

<strong>Crucell</strong>’s commitment to the world<br />

Taking responsibility 32<br />

CSR highlights in 2010 35<br />

Our CSR policy 36<br />

Our CSR achievements, ambitions and targets 40


2010 key highlights<br />

Revenues and other operating income<br />

2010 Revenues and other operating income<br />

(€ million) 105+<br />

2010 Product sales<br />

(€290.6 million)<br />

61%<br />

25%<br />

7%<br />

7%<br />

Product sales 290.6<br />

License revenues 32.7<br />

Service fees 6.5<br />

Other operating income,<br />

e.g. grants 35.6<br />

Total 365.4<br />

Paediatric<br />

Travel and endemic<br />

Respiratory<br />

Other<br />

mln<br />

Vaccine doses distributed in 2010<br />

In more than 100 countries around the world.<br />

€100.0 mln<br />

Research and development investment in 2010<br />

Compared to €70.2 mln in 2009.<br />

€290.6 mln<br />

Product sales in 2010<br />

€365.4 mln<br />

Total revenues and other operating income in 2010<br />

Compared to €358.0 mln in 2009.<br />

01


02<br />

Overview<br />

<strong>Crucell</strong> at a glance<br />

www.crucell.com


Overview – <strong>Crucell</strong> at a glance<br />

<strong>Crucell</strong> is a global biopharmaceutical company<br />

dedicated to bringing meaningful innovation to<br />

global health. We do this by discovering, developing,<br />

manufacturing and marketing products that<br />

combat major threats to the health of people<br />

worldwide. Our specialty is fighting infectious<br />

diseases—a growing healthcare challenge.<br />

03


04<br />

Overview – <strong>Crucell</strong> at a glance<br />

Our Company<br />

Innovation is the driving force behind our strong research and development<br />

(R&D) pipeline, with promising products in pre-clinical and clinical<br />

development. In 2010 alone, <strong>Crucell</strong> distributed more than 105 million 1<br />

vaccine doses in more than 100 countries around the world, and<br />

invested €100.0 million in R&D.<br />

<strong>Crucell</strong> is deeply committed to being a good <strong>corporate</strong> citizen:<br />

a company that creates significant value for society. Our mission is<br />

to make a truly meaningful contribution to global health by directing<br />

our proven talent for innovation towards the fight against infectious<br />

diseases. An entrepreneurial mind-set and social responsibility go<br />

hand-in-hand at <strong>Crucell</strong>.<br />

In 2010, 1,400 dedicated and skilled <strong>Crucell</strong> employees worldwide<br />

worked to bring significant benefit to the lives of people worldwide. We<br />

are fully committed to the principles of <strong>corporate</strong> social responsibility<br />

(CSR) and place great value on doing more to benefit society than we<br />

strictly ‘must’ do. Our mission underlies everything we do, from our core<br />

business activities to the sharing of scientific knowledge and community<br />

outreach programs in countries where help is needed the most.<br />

The combination of our innovative technologies, our core values and<br />

creative minds drives <strong>Crucell</strong>’s success, which we measure in human<br />

and business terms.<br />

<strong>Crucell</strong> is headquartered in Leiden, the Netherlands, with offices in<br />

China, Indonesia, Italy, Korea, Malaysia, Spain, Sweden, Switzerland,<br />

UK, the USA and Vietnam.<br />

Our strategy<br />

Infectious diseases are a major cause of illness and death throughout<br />

the world. The number of infectious outbreaks is increasing for many<br />

reasons: higher population density raises exposure to infectious agents,<br />

an aging population is more susceptible to infection, and a rise in<br />

1 Figure based on <strong>Crucell</strong>’s top five vaccines in terms of sales volumes:<br />

Quinvaxem®, Hepavax-Gene®, Epaxal®, Vivotif® and Inflexal® V.<br />

www.crucell.com<br />

global travel boosts the potential for spreading diseases across<br />

borders. In addition, natural disasters can have a devastating impact<br />

on sanitation, hygiene, infrastructure and healthcare facilities.<br />

At <strong>Crucell</strong>, we are dedicated to saving lives and preventing illness around<br />

the world. We focus strongly on unmet medical needs in developing<br />

countries, where infectious diseases exert their greatest toll. At the<br />

same time, we work to protect travelers and vulnerable groups living<br />

in industrialized countries.<br />

We target major health threats that demand innovative solutions,<br />

striving to lead rather than follow. We focus on infectious diseases<br />

because these pose an increasingly serious threat to the health of people<br />

worldwide—and we have the expertise to make a real difference in<br />

this disease area.<br />

The combination of our scientific know-how, innovative technologies<br />

and quality products positions <strong>Crucell</strong> to become a major player in the<br />

biopharmaceutical arena.<br />

Our strategy is based on three business drivers:<br />

1. A strong R&D pipeline with promising products in a range<br />

of major disease areas.<br />

2. Cutting-edge technologies that enable the discovery,<br />

development and production of biopharmaceutical products.<br />

These proprietary technologies drive in-house innovation and<br />

generate licensing revenue.<br />

3. A broad range of marketed vaccine products that together<br />

combat 12 major infectious diseases.<br />

1. Our strong research and development pipeline<br />

Innovation is the driving force behind our strong and broad R&D<br />

pipeline, with promising products in pre-clinical and clinical development.<br />

Product candidates include flu-mAb, an antibody effective against a


Overview – <strong>Crucell</strong> at a glance<br />

broad range of influenza virus strains, tuberculosis and malaria vaccines,<br />

and a rabies monoclonal antibody combination – all produced on our<br />

unique PER.C6® human cell-line technology. Read more on page 12.<br />

2. Our cutting-edge technologies<br />

<strong>Crucell</strong>’s proprietary technologies offer unique advantages for<br />

biopharmaceutical innovation. This competitive edge is exemplified<br />

by our PER.C6® technology, which is ideally suited to the manufacture<br />

of vaccines and therapeutic proteins, such as antibodies. Compared to<br />

traditional production platforms, PER.C6® human cell-line technology<br />

provides higher yields at lower cost, as well as safety advantages.<br />

<strong>Crucell</strong> licenses its PER.C6® technology and other technologies to the<br />

biopharmaceutical industry. Important partners and licensees include,<br />

among others, Johnson & Johnson, DSM Biologics, Merck & Co.,<br />

Novartis, sanofi pasteur and Pfizer/Wyeth. Read more on page 20.<br />

3. Our broad range of innovative products<br />

Vaccines play a vital role in protecting against diseases and have<br />

contributed significantly to the improvement of global health. Currently<br />

we are combating twelve major infectious diseases with our range of<br />

marketed vaccines in the paediatric, travel and endemic, and respiratory<br />

fields. We are one of the major suppliers of vaccines to supranational<br />

organizations in the developing world, and the first manufacturer<br />

to launch a fully liquid pentavalent vaccine, called Quinvaxem®.<br />

This innovative combination vaccine protects against five important<br />

childhood diseases. Over 200 million doses have been sold since its<br />

launch in 2006 in more than 50 GAVI (the Global Alliance for Vaccines<br />

and Immunisation) countries. With this innovation, <strong>Crucell</strong> has become<br />

a major partner in protecting children in developing countries. Other<br />

products in <strong>Crucell</strong>’s core portfolio include Hepavax-Gene®, a vaccine<br />

against hepatitis B; Epaxal®, the only aluminum-free hepatitis A vaccine<br />

on the market; Vivotif® and Dukoral®, oral vaccines against typhoid<br />

and cholera, respectively; and Inflexal® V, a virosomal adjuvanted<br />

vaccine against influenza. Read more on page 26.<br />

Partners and licensees<br />

In addition to our own R&D activities, we have strategic partnerships<br />

with several leading healthcare companies, such as Johnson & Johnson,<br />

DSM Biologics, Merck, Novartis and sanofi pasteur. Through these<br />

agreements, our technologies play a vital role in the development<br />

of a vast number of vaccines and antibody products.<br />

05


06<br />

Overview<br />

<strong>Crucell</strong>: A global perspective<br />

www.crucell.com<br />

9<br />

1. China<br />

Marketing and sales.<br />

2. Italy<br />

Marketing and sales.<br />

3. Korea<br />

Marketing and sales<br />

+ Manufacturing.<br />

5<br />

8 4<br />

7<br />

2<br />

6<br />

4. Netherlands (Headquarters)<br />

Marketing and sales.<br />

5. Spain<br />

Marketing and sales<br />

+ Manufacturing.<br />

6. Sweden<br />

Marketing and sales<br />

+ Manufacturing.<br />

1<br />

7. Switzerland<br />

Marketing and sales<br />

+ Manufacturing.<br />

8. UK<br />

Marketing and sales.<br />

9. USA<br />

Marketing and sales.<br />

3


Overview – <strong>Crucell</strong>: A global perspective<br />

Research and development<br />

Vaccines in development:<br />

Flavimun® yellow fever vaccine.<br />

Influenza Seasonal cell-based seasonal vaccine.<br />

Universal Influenza cell-based<br />

universal vaccine.<br />

Tuberculosis recombinant AdVac®based<br />

vaccine.<br />

Malaria recombinant AdVac®based<br />

vaccine.<br />

Ebola and Marburg recombinant AdVac®based<br />

vaccine.<br />

Technologies<br />

PER.C6® human cell line for development<br />

and manufacturing.<br />

AdVac® used with PER.C6® to develop<br />

recombinant vaccines.<br />

MAbstract® to discover novel drug targets<br />

and identify human monoclonal antibodies.<br />

Products<br />

Paediatric:<br />

Quinvaxem® fully liquid vaccine to protect<br />

against five important childhood diseases.<br />

Hepavax-Gene® recombinant hepatitis B<br />

vaccine.<br />

Epaxal® Junior low dosage, aluminum-free<br />

hepatitis A vaccine.<br />

MoRu-Viraten® vaccine for protection<br />

against measles and rubella.<br />

HIV recombinant AdVac®-based vaccine.<br />

HPV recombinant AdVac®-based vaccine.<br />

RSV recombinant AdVac®-based vaccine.<br />

Human monoclonal antibodies<br />

in development:<br />

Rabies antibody combination.<br />

Influenza antibodies.<br />

Hepatitis C antibody combination.<br />

Details on page 12<br />

STAR® to enhance yields of recombinant<br />

human antibodies and proteins.<br />

Virosome a vehicle enabling the use of<br />

virus antigens in the making of vaccines.<br />

Details on page 20<br />

Travel and endemic:<br />

Epaxal® aluminum-free hepatitis A vaccine.<br />

Vivotif® oral typhoid vaccine.<br />

Dukoral® only internationally licensed<br />

oral vaccine against cholera (and ETEC).<br />

Respiratory:<br />

Inflexal® V virosomal adjuvanted<br />

influenza vaccine.<br />

Details on page 26<br />

07


08<br />

Overview<br />

Message from our CEO<br />

<strong>Crucell</strong>’s mission to bring meaningful<br />

innovation to global health reflects a deep<br />

commitment to improving the lives of people<br />

worldwide. This underpins everything we do<br />

as a global organization and as individuals<br />

united by a common purpose.<br />

1 Figure based on <strong>Crucell</strong>’s top five vaccines in terms of sales volumes: Quinvaxem®,<br />

Hepavax-Gene®, Epaxal®, Vivotif® and Inflexal® V.<br />

2 Figures based on <strong>Crucell</strong>’s top 5 vaccines Quinvaxem®, Hepavax-Gene®, Epaxal®, Vivotif®<br />

and Inflexal® V. Total 101,666,000 doses minus 2% waste (2,033,320 doses) = 99,632,680<br />

doses sold in 2010 / 525600 minutes in 2010 = 189.5598 doses administered per minute.<br />

www.crucell.com<br />

I am therefore delighted that talks held with Johnson & Johnson<br />

during 2010 have resulted in <strong>Crucell</strong> becoming the center of excellence<br />

for vaccines within the world’s largest and possibly most respected<br />

healthcare company. As a member of the Johnson & Johnson Family<br />

of Companies, we can do so much more to make the world we live in<br />

a healthier place. The combination of our two companies will enable<br />

<strong>Crucell</strong> to further accelerate growth, and our shared expertise and<br />

talent will help to make an even bigger difference in the lives of people<br />

worldwide. We are delighted by the prospect of pursuing our mission<br />

with the support of Johnson & Johnson that shares our passion for<br />

healthcare innovation, our values and our commitment to care for people.<br />

Protecting and contributing to society in the fullest possible sense<br />

and to the best of our ability is our core business, our passion<br />

and the essence of our company. Our commitment to the principles<br />

of <strong>corporate</strong> social responsibility is a logical extension of our mission<br />

to bring innovation to global health, focusing especially on the<br />

prevention of infectious diseases.<br />

During 2010, we distributed over 105 million 1 doses of vaccines<br />

to people around the world, with the majority going to infants in<br />

developing countries. The range of vaccines we have on the market<br />

prevents twelve major infectious diseases: childhood infections, travel<br />

and endemic illnesses, and respiratory disease. We estimate that a<br />

<strong>Crucell</strong> vaccine was given to 190 individuals 2 every minute during 2010,<br />

a thought that makes us very proud.<br />

However, I believe that the best measure of our impact on global health<br />

is not the number of doses we supply, but the number of deaths and<br />

cases of disease we prevent each year. In 2010, <strong>Crucell</strong>’s ‘top-five’<br />

vaccines prevented more than 3.6 million cases of infectious disease<br />

and 809,823 deaths. 1<br />

<strong>Crucell</strong>’s core business is the discovery, development and delivery<br />

of innovative solutions for major health threats. Our specialty is the<br />

creation of much-needed immunization products: vaccines that safely


Overview – Message from our CEO<br />

and effectively mobilize the body’s own immune defenses against<br />

infections, and antibodies that provide ‘ready-made’ immune protection<br />

against invading microbes. After clean water, immunization is believed<br />

to be the most cost-effective health intervention and its key role in<br />

promoting the socioeconomic development of countries is becoming<br />

increasingly clear.<br />

The world population is predicted to reach 7 billion in 2011 and<br />

protecting these billions of individuals from infectious diseases is more<br />

important and challenging than ever. Trends such as climate change,<br />

globalization, urbanization, wider travel and population aging are<br />

presenting new opportunities for infectious pathogens to thrive<br />

and spread. Doing our utmost to tackle this problem is our primary<br />

responsibility and our privilege. It lies at the heart of <strong>Crucell</strong>. More<br />

importantly, I see that we are expanding the boundaries of that reality,<br />

day by day. Innovation is the foundation on which <strong>Crucell</strong> was built,<br />

and the fuel driving us forward.<br />

“ <strong>Crucell</strong>’s core business is the discovery,<br />

development and delivery of innovative<br />

solutions for major health threats.”<br />

Our achievements so far are thanks to the tireless efforts and<br />

dedication of our loyal employees, <strong>Crucell</strong>’s most important asset.<br />

In 2010 hundreds of talented people were recruited in order to further<br />

boost our capacity to bring innovation to global health going forward.<br />

Ronald H.P. Brus<br />

President and Chief Executive Officer<br />

Leiden, the Netherlands, April 18, 2011<br />

Improving healthcare access<br />

The cover photograph of this<br />

booklet shows an Expanded<br />

Program on Immunization (EPI)<br />

session set up by the nongovernmental<br />

organization<br />

Friendship in collaboration with<br />

local governmental agents in<br />

Bangladesh. The mothers holding<br />

young babies are waiting in line<br />

for their infants to receive <strong>Crucell</strong>’s<br />

Quinvaxem® vaccine. With support from <strong>Crucell</strong>, Friendship has<br />

set up the cold chain to enable children in these remote char areas<br />

to be immunized. This initiative is one of many described in our<br />

<strong>corporate</strong> social responsibility (CSR) report in this booklet.<br />

The EPI was established by the World Health Organization (WHO)<br />

in 1974 with the aim of ensuring that all children in all countries<br />

benefit from life-saving vaccines. The first diseases targeted by the<br />

EPI were diphtheria, pertussis (whooping cough), tetanus, measles,<br />

poliomyelitis and tuberculosis. In 1977, the WHO established global<br />

policies for immunization and set the goal of universal immunization<br />

for all children by 1990, as an essential element of the WHO<br />

strategy to achieve health for all.<br />

In 2009, an estimated 82% of children globally had received<br />

at least three doses of diphtheria–tetanus—pertussis vaccine<br />

(DTP3) by one year of age, which has traditionally been used as an<br />

indicator of EPI coverage. Additional vaccines have progressively<br />

been added to the original six recommended by the WHO in 1974.<br />

The EPI remains committed to the goal of universal access to all<br />

relevant vaccines for all at risk.<br />

Information on the EPI was sourced from the WHO website.<br />

09


10<br />

Our business<br />

Research and development, technologies and products<br />

At <strong>Crucell</strong> we bring meaningful innovation to global<br />

health. We do this by discovering, developing,<br />

manufacturing and marketing products that combat<br />

major threats to the health of people worldwide. Our<br />

specialty is fighting infectious diseases—a growing<br />

healthcare challenge. In the following pages<br />

we highlight <strong>Crucell</strong>’s key innovations in the field<br />

of research and development, our cutting-edge<br />

technologies and robust product portfolio.<br />

€100.0 mln<br />

Invested in research and development in 2010.<br />

105+ mln<br />

Doses distributed in 2010.<br />

100 countries<br />

<strong>Crucell</strong> vaccines were distributed in more than 100 countries in 2010.<br />

www.crucell.com<br />

Research and development<br />

Technologies<br />

Products


Our business – Research and development, technologies and products<br />

Development stage Discovery/<br />

Pre-clinical<br />

Phase I Phase II Phase III Marketed Description<br />

Marketed products:<br />

Quinvaxem® Fully liquid vaccine for protection against five childhood diseases.<br />

Hepavax-Gene® Recombinant hepatitis B vaccine.<br />

Epaxal® Junior Low-dosage, aluminum-free hepatitis A vaccine (0.25ml).<br />

MoRu-Viraten® Vaccine for protection against measles and rubella.<br />

Epaxal® Aluminum-free hepatitis A vaccine.<br />

Vivotif® Oral typhoid vaccine.<br />

Dukoral® Only internationally licensed oral vaccine against cholera.<br />

Inflexal® V<br />

Vaccines in development:<br />

Virosomal adjuvanted influenza vaccine.<br />

Flavimun® Yellow fever vaccine.<br />

Tuberculosis Recombinant AdVac®-based tuberculosis vaccine. 1<br />

Malaria Recombinant AdVac®-based malaria vaccine. 2<br />

Ebola and Marburg Recombinant AdVac®-based Ebola and Marburg vaccine. 2<br />

HIV Recombinant AdVac®-based HIV vaccine. 3<br />

Cell-based Influenza Seasonal influenza vaccine produced on PER.C6.®<br />

Universal influenza Universal influenza vaccine produced on PER.C6.®<br />

HPV Recombinant AdVac®-based HPV vaccine. 4<br />

RSV Recombinant AdVac®-based RSV vaccine. 5<br />

Human monoclonal antibodies in development:<br />

Rabies antibody combination<br />

Mix of two monoclonal antibodies for post-exposure<br />

treatment of rabies. 6<br />

Influenza antibodies<br />

Hepatitis C antibody<br />

combination<br />

1 Partnered with Aeras.<br />

2 Partnered with NIH/NIAID, GSK.<br />

3 Partnered with Harvard.<br />

4 Human papilloma virus (HPV), partnered with Johnson & Johnson.<br />

5 Respiratory syncytial virus (RSV), partnered with Johnson & Johnson.<br />

6 Partnered with sanofi pasteur.<br />

Antibodies neutralizing a wide range of influenza subtypes,<br />

including H5 and H1.<br />

Neutralizing monoclonal antibody combination across all<br />

genotypes tested.<br />

11


12<br />

Our business<br />

Research and development<br />

www.crucell.com


Our business – Research and development<br />

<strong>Crucell</strong>’s research efforts focus on developing<br />

vaccines and antibodies that address infectious<br />

disease and unmet medical needs. In this section<br />

you can read more about the discovery and<br />

development of next-generation medical products<br />

facilitated by our range of innovative technologies.<br />

13


14<br />

Our business – Research and development<br />

Our strong research and development pipeline<br />

Innovation is the driving force behind <strong>Crucell</strong>’s future growth supported<br />

by a strong R&D pipeline. Our scientists focus on the discovery and<br />

development of much-needed solutions for major threats to human<br />

health—particularly vaccines and antibodies for the prevention and<br />

treatment of infectious diseases. This has resulted in a broad pipeline<br />

of investigational products with the potential to revolutionize the fight<br />

against diseases such as influenza, rabies, malaria and tuberculosis.<br />

Vaccine development: based on AdVac® technology<br />

AdVac® technology involves the use of novel adenoviral vectors, such<br />

as Ad35 and Ad26, in vaccines for diseases caused by viruses, bacteria<br />

or parasites. These vectors are harmless adenoviruses that have been<br />

disabled so that they cannot replicate. A vector functions as an efficient<br />

‘gene taxi’, delivering into the human body a fragment of DNA that<br />

carries the code for a protein of a specific pathogen. Once inside the<br />

body, the vectors express (produce) these proteins and present them<br />

to the person’s immune system, which mounts its protective response.<br />

Using this versatile vaccine vector platform in combination with our<br />

PER.C6® manufacturing technology, we are working with our partners<br />

to develop vaccines against major threats to human health, including<br />

tuberculosis, malaria, Ebola and Marburg, HIV, human papilloma virus<br />

(HPV) and respiratory syncytial virus (RSV). See page 17.<br />

Tuberculosis (Phase II)<br />

<strong>Crucell</strong> joined forces with the nongovernmental organization (NGO)<br />

Aeras Global TB Vaccine Foundation in 2004 to develop a safe, effective<br />

and affordable vaccine against tuberculosis (TB). The traditional TB<br />

vaccine developed more than 85 years ago, Bacille Calmette Guérin<br />

(BCG), does not reliably prevent pulmonary disease—the most common<br />

form of TB—so there is a great need for a better alternative.<br />

Together with Aeras, we are developing the novel TB vaccine candidate<br />

AERAS-402/<strong>Crucell</strong> Ad35. The vaccine is based on <strong>Crucell</strong>’s innovative<br />

AdVac® technology, which uses novel harmless adenoviruses as vaccine<br />

vectors (vehicles). We are using the adenovirus 35 (Ad35) vector for this<br />

particular vaccine.<br />

www.crucell.com<br />

AERAS-402/<strong>Crucell</strong> Ad35 is being designed as a ‘booster’ vaccine that<br />

will be given to people who have previously been vaccinated with<br />

the traditional TB vaccine or an improved, recombinant version of the<br />

BCG vaccine that is being developed by Aeras. The BCG vaccine will prime<br />

(prepare) the immune system to fight off TB infection and the AERAS-402/<br />

<strong>Crucell</strong> Ad35 will be given later to boost this initial immune response.<br />

Data from AERAS-402/<strong>Crucell</strong> Ad35 clinical trials (Phase I and II) support the<br />

immunogenicity and acceptable safety profile of the candidate TB vaccine.<br />

In 2009, an estimated 1.7 million people<br />

died of tuberculosis.<br />

Source: WHO, Global TB Control 2010 report.<br />

Tuberculosis<br />

Estimated new TB cases (all forms) per 100,000 population in 2009.<br />

0–24<br />

25–49<br />

50–99<br />

100–299<br />

>300<br />

No estimate


Our business – Research and development<br />

Malaria<br />

Countries or areas at risk of transmission in 2009.<br />

Transmission occurs<br />

Limited risk of transmission<br />

No report<br />

Source: WHO, World Malaria Report 2010.<br />

Malaria (Phase I)<br />

Malaria is one of the most prevalent infections in tropical and subtropical<br />

regions. Children and pregnant women are most severely affected.<br />

According to the World Health Organization (WHO), half of the world’s<br />

population is at risk of malaria, and an estimated 225 million cases led<br />

to 781,000 deaths in 2009. There is currently no licensed vaccine to<br />

protect people against malaria, a disease caused by infection with the<br />

Plasmodium parasite and transmitted by mosquitoes. Therapies are<br />

available for malaria patients, but the worsening problem of drug<br />

resistance in many parts of the world is making adequate treatment and<br />

control of malaria increasingly difficult. In addition, many insecticides<br />

are no longer useful against the mosquitoes that transmit the disease.<br />

<strong>Crucell</strong> is working in collaboration with a number of research groups<br />

to develop a safe, effective and affordable vaccine against Plasmodium<br />

falciparum, the most lethal of the four species of malaria parasite that<br />

infect humans. <strong>Crucell</strong>’s approach is based on our innovative AdVac®<br />

technology, which uses novel, harmless adenoviruses as vaccine<br />

delivery vehicles (vectors).<br />

In April, 2010, <strong>Crucell</strong> entered into an agreement with GlaxoSmithKline<br />

Biologicals (GSK) to collaborate on developing a second-generation<br />

malaria vaccine candidate. <strong>Crucell</strong> is contributing the recombinant<br />

malaria vaccine candidate Ad35-CS, based on <strong>Crucell</strong>’s PER.C6® and<br />

AdVac® technologies, while GSK is contributing its late-stage malaria<br />

vaccine candidate RTS,S/AS. The collaborative partners aim to advance<br />

this new vaccine candidate into human clinical studies with the support<br />

of the PATH Malaria Vaccine Initiative (MVI). Clinical efficacy challenge<br />

trials sponsored by the MVI will be initiated in 2011 at the US Walter<br />

Reed Army Institute of Research, providing all agreements are finalized.<br />

Pending the results of these Phase I/IIa trials, <strong>Crucell</strong> and GSK expect<br />

to advance the prime boost candidate in further clinical studies with<br />

the support of public or non-profit partners who are interested in<br />

accelerating the development of a malaria vaccine.<br />

In May 2010, <strong>Crucell</strong> announced the start of a new Phase I clinical study<br />

in Burkina Faso, West Africa. <strong>Crucell</strong> is developing its malaria vaccine<br />

vector, Ad35-CS, in collaboration with National Institute of Allergy<br />

and Infectious Diseases (NIAID)/ National Institutes of Health (NIH),<br />

the Centre National de Recherche et de Formation sur le Paludisme<br />

(CNRFP) in Burkina Faso, and the Noguchi Memorial Institute for Medical<br />

Research at the University of Ghana. Enrolment has been completed<br />

and boost vaccinations are ongoing. This is the first study evaluating<br />

the safety and immunogenicity of this AdVac®-based malaria vaccine<br />

vector candidate in a population living in a malaria endemic area.<br />

Ebola and Marburg (Phase I)<br />

Ebola and Marburg are among the world’s most lethal viral diseases.<br />

Both Ebola and Marburg are among the few viruses causing hemorrhagic<br />

fever, a severe, often fatal disease in humans. There are currently no<br />

vaccines or antiviral therapies available for either disease.<br />

<strong>Crucell</strong> is developing a multivalent filovirus vaccine against Ebola<br />

and Marburg in collaboration with the Vaccine Research Center of the<br />

US National Institute of Allergy and Infectious Diseases (NIAID),<br />

part of the National Institutes of Health (NIH).<br />

The candidate vaccine is based on <strong>Crucell</strong>’s proprietary adenoviral<br />

vector technology and is produced using <strong>Crucell</strong>’s PER.C6® technology.<br />

15


16<br />

Our business – Research and development<br />

HIV (Phase I)<br />

Human immunodeficiency virus (HIV) is a retrovirus that causes acquired<br />

immune deficiency syndrome (AIDS), a condition in which the immune<br />

system progressively fails, leading to life-threatening infections. Over the<br />

past 25 years, HIV infection resulting in AIDS has claimed millions of lives,<br />

devastated communities, and enormously frustrated efforts to fight<br />

poverty, improve global health and promote economic development.<br />

According to the 2010 Progress Report (a joint report by UNAIDS,<br />

Unicef and WHO), the HIV epidemic remains a major global public health<br />

challenge, with a total of 33.4 million people living with HIV worldwide.<br />

In 2008 alone, 2.7 million people were newly infected with HIV.<br />

1 Source: WHO, factsheet on rabies.<br />

www.crucell.com<br />

In August 2010, <strong>Crucell</strong> announced its participation in an international<br />

Phase I clinical trial in the United States and Africa of a combination<br />

of two AdVac®-based AIDS vaccine candidates, Ad26.ENVA.01 and<br />

Ad35-ENV, in healthy adults who are not infected with HIV. The clinical<br />

trial, which will be led by the International AIDS Vaccine Initiative (IAVI),<br />

represents a collaboration between IAVI, <strong>Crucell</strong>, the Ragon Institute,<br />

and Beth Israel Deaconess Medical Center (BIDMC), a major teaching<br />

hospital of Harvard Medical School.<br />

In 2008, an estimated 2.7 million people<br />

were newly infected with HIV.<br />

Source: WHO.<br />

Every 17,5 seconds one person dies of AIDS.<br />

Source: Stop Aids Now!<br />

The Ad26.ENVA.01 vaccine candidate used in this study is developed<br />

and manufactured by <strong>Crucell</strong>, while the Ad35-ENV vaccine is developed<br />

by IAVI. Both vaccines candidates are based on <strong>Crucell</strong>’s proprietary<br />

AdVac® technology. The planned Phase 1 trial of the vaccine combination<br />

represents a key step towards proof of concept studies to evaluate the<br />

efficacy of the vaccine combination in humans.<br />

HPV (Discovery/Pre-clinical)<br />

Genital infection with human papilloma virus (HPV) is very common in<br />

both men and women and usually spontaneously clears within one year<br />

after infection. In about 1% of individuals, however, HPV persists and<br />

ultimately results in genital neoplastic lesions.


Our business – Research and development<br />

In November 2010, <strong>Crucell</strong> announced the start of a discovery program<br />

leading to the development and commercialization of a therapeutic<br />

HPV vaccine. The discovery program is part of a strategic collaboration,<br />

signed in September 2009 with Johnson & Johnson, through its<br />

subsidiary Ortho-McNeil-Janssen Pharmaceuticals, Inc., to develop<br />

innovative products, including antibodies for influenza prevention<br />

and treatment.<br />

RSV (Discovery/Pre-clinical)<br />

Respiratory syncytial virus (RSV) is the most important cause of viral<br />

lower respiratory tract illness in infants and children. RSV-induced disease<br />

is the last of the major paediatric diseases for which no preventive<br />

vaccine is available. Current prevention in developed countries is based<br />

on the administration of a costly RSV-neutralizing antibody, which is<br />

given to high-risk infants, in particular premature newborns. RSV also<br />

induces severe disease in immunocompromized adults and elderly<br />

people with weak immune systems, for whom the RSV antibody is<br />

not available.<br />

In June 2010, <strong>Crucell</strong> announced the start of a discovery program<br />

leading to the development and commercialization of a universal RSV<br />

vaccine. The vaccine will be designed to prevent severe infections with<br />

the most common RSV strains in infants and the elderly. This discovery<br />

program is part of a strategic collaboration with Johnson & Johnson,<br />

signed in September 2009.<br />

As an encouragement towards the RSV research community, <strong>Crucell</strong><br />

sponsored the VII Respiratory Syncytial Virus Symposium held in<br />

December 2010 and established the Innovation Award for RSV Research.<br />

This support highlights <strong>Crucell</strong>’s long-standing commitment to improve<br />

the health of people worldwide by advancing the fight against<br />

infectious diseases.<br />

Antibody development<br />

Antibodies are proteins made naturally by cells of the body’s immune<br />

system. They function as one of the body’s principal defense mechanisms<br />

against pathogens—disease-causing agents such as parasites, viruses<br />

or bacteria. As antibodies recognize and bind to invading pathogens,<br />

ultimately eliminating them, they play a crucial role in protecting<br />

humans against disease.<br />

Rabies antibody combination (Phase II)<br />

Rabies is a viral disease of mammals and is most often transmitted<br />

through the bite of a rabid animal. The virus infects the central nervous<br />

system, causing encephalitis (inflammation of the brain) and ultimately<br />

death if appropriate medical intervention is not given promptly. Every<br />

year, more than 15 million people worldwide receive a post-exposure<br />

preventive regimen to avert the disease. This is estimated to prevent<br />

327,000 rabies deaths annually. 1<br />

Nevertheless, an estimated 55,000 individuals exposed to rabies<br />

virus—mostly children—die each year. Most of those who die receive<br />

a rabies vaccine only, rather than the proper post-exposure treatment<br />

consisting of anti-rabies antibodies as well as a vaccine. Concerns<br />

about the availability and safety of the current, blood-derived<br />

antibody treatment have prompted the search for a safe, effective<br />

and affordable alternative.<br />

17


18<br />

Our business – Research and development<br />

An estimated 55,000 individuals exposed to<br />

rabies virus—mostly children—die each year.<br />

Source: WHO.<br />

<strong>Crucell</strong> scientists in collaboration with scientists from Thomas Jefferson<br />

University (TJU) in Philadelphia and the US Centers for Disease Control<br />

and Prevention in Atlanta, USA to discover a combination of human<br />

monoclonal antibodies (mAbs) for the post-exposure treatment of<br />

rabies. <strong>Crucell</strong>’s innovative MAbstract® and PER.C6® technologies played<br />

a crucial role in the discovery and development of this promising therapy.<br />

The candidate mAb product is designed to be used together with rabies<br />

vaccine. Preclinical studies conducted during 2004 indicated that the<br />

mAb combination could neutralize (inactivate) rabies virus at least<br />

as effectively as blood-derived human rabies immune globulin (HRIG),<br />

the current gold standard for providing immediate protection against<br />

rabies virus. Since then, the rabies mAb combination has successfully<br />

progressed through phase I clinical trials in the USA and India (in 2006–7)<br />

and phase II trials in the USA and the Philippines.<br />

1 Source: US National Library of Medicine, National Institute of Health.<br />

www.crucell.com<br />

Since January 2008, the route toward global availability of this<br />

next-generation, life-saving rabies biological has been facilitated by<br />

a strategic partnership between <strong>Crucell</strong> and sanofi pasteur, a world<br />

leader in rabies immunization. Under the terms of this agreement,<br />

<strong>Crucell</strong> will be responsible for manufacturing the commercial product<br />

and has retained exclusive distribution rights in Europe, co-exclusive<br />

distribution rights in China and the rights to sell to supranational<br />

organizations, while sanofi pasteur will have exclusive distribution<br />

rights for all other territories and co-exclusive distribution rights<br />

in China.<br />

A planned Phase II trial in India is expected to start in the first half<br />

of 2011. This study is designed to collect data on the safety and<br />

neutralizing activity of the rabies antibody combination plus vaccine<br />

in a simulated rabies post-exposure prophylaxis setting.<br />

The US Food and Drug Administration (FDA) has granted the rabies mAb<br />

combination Fast Track status, paving the way for priority handling<br />

of the regulatory dossier.<br />

Human monoclonal antibodies against a broad range of influenza<br />

strains (Pre-clinical)<br />

Imagine a single product that could solve all the problems currently<br />

limiting influenza control. It would have to reliably protect all subgroups<br />

of the population—especially the elderly—against serious illness<br />

and death, regardless of the causal viral strain. Ideally, it would both<br />

prevent and cure influenza.<br />

In December 2008, <strong>Crucell</strong> announced the discovery of a new class of<br />

mAbs with this extraordinary potential. <strong>Crucell</strong> also reported the results<br />

of preclinical studies involving a representative of this new mAb class,<br />

CR6261. The antibody was shown to neutralize a broad range of<br />

influenza viruses, including the currently circulating H1N1 seasonal<br />

flu strains (genetic descendants of the virus responsible for 40 million<br />

deaths during the pandemic of 1918–1919) and the highly pathogenic<br />

H5N1 (‘bird flu’) virus. More recent tests have shown that CR6261<br />

also combats the novel H1N1 virus that caused the 2009 pandemic.


Our business – Research and development<br />

In a pre-clinical study comparing CR6261 with the leading antiviral<br />

drug, oseltamivir, <strong>Crucell</strong>’s mAb strongly outperformed oseltamivir for<br />

influenza prevention and treatment. The study showed that CR6261<br />

provides immediate protection against influenza viruses, suggesting<br />

that it will be able to prevent disease spread and therefore ward off<br />

a threatening pandemic. In contrast, oseltamivir was less effective<br />

and in some cases, not effective at all.<br />

In September 2009, Johnson & Johnson, through its subsidiary<br />

Ortho-McNeil-Janssen Pharmaceuticals, Inc., entered into a strategic<br />

collaboration with <strong>Crucell</strong> for the development and commercialization<br />

of a universal mAb product (flu-mAb) for the treatment and prevention<br />

of influenza. An important recent step in the development of this<br />

flu-mAb has been the first production of this antibody product in a<br />

mobile and fully disposable FlexFactory®.<br />

Universal influenza vaccine (Discovery/Pre-clinical)<br />

The exciting flu-mAb research and development has laid the basis for<br />

the discovery and development of a vaccine that could protect against<br />

all subtypes of influenza virus.<br />

Hepatitis C antibody combination (Pre-clinical)<br />

Hepatitis C is a disease of the liver, caused by the hepatitis C virus (HCV).<br />

The virus can be transmitted by direct blood contact, for instance by<br />

sharing contaminated needles among drug users or by needle stick<br />

injuries in healthcare settings.<br />

Hepatitis C is a major global public health problem. A significant<br />

proportion of people (20–50%) develop progressive liver disease leading<br />

ultimately to liver cirrhosis, liver failure and hepatocellular carcinoma<br />

(HCC). 1 Most people who have been infected develop chronic disease.<br />

Symptomatic chronic HCV patients can be treated with antiviral agents<br />

(usually a combination of pegylated interferon and ribavirin), but with<br />

limited success. The only treatment option for end-stage liver disease<br />

is transplantation. HCV-induced cirrhosis is the leading cause for liver<br />

transplantation. It is estimated that up to 170 million people worldwide<br />

(3% of the world’s population) are infected with HCV. There is no<br />

available vaccine against HCV.<br />

In August 2009, <strong>Crucell</strong> obtained an exclusive license from Stanford<br />

University (Palo Alto, California) for the development of an antibody<br />

combination against HCV. A large panel of fully human mAbs against<br />

HCV is being evaluated by <strong>Crucell</strong> in a proof of concept phase. The mAbs<br />

have been found to neutralize the virus across all genotypes tested and<br />

each recognizes a different part of the HCV surface protein.<br />

19


20<br />

Our business<br />

Technologies<br />

www.crucell.com


Our business – Technologies<br />

<strong>Crucell</strong>’s strong research and development (R&D)<br />

pipeline is supported by a range of patented<br />

technologies. Our technologies open up new areas<br />

of research, speed our development programs<br />

and optimize production processes. In this section<br />

you can read about our technologies and the way<br />

<strong>Crucell</strong> continues to extend their applications.<br />

21


22<br />

Our business – Technologies<br />

Our cutting-edge technologies<br />

<strong>Crucell</strong>’s strong product portfolio is supported by a range of patented<br />

technologies. Our cutting-edge technology platforms enable the<br />

cost-effective discovery, development and production of a range<br />

of biopharmaceutical products, including innovative vaccines,<br />

therapeutic proteins and gene therapies. In therapeutic areas where<br />

<strong>Crucell</strong> does not plan to develop its own products, these proprietary<br />

technologies may be licensed out to other biopharmaceutical<br />

manufacturers or research groups.<br />

5 core platforms<br />

www.crucell.com<br />

Core proprietary technology platforms<br />

<strong>Crucell</strong> has five core proprietary technology platforms, and two<br />

support technologies developed by <strong>Crucell</strong> to facilitate<br />

biopharmaceutical innovation:<br />

1. PER.C6® technology: a comprehensive package of technology and<br />

know-how based on our PER.C6® human cell line. It provides a safe<br />

and cost-effective manufacturing system for high-yield, large-scale<br />

production of vaccines, recombinant proteins including monoclonal<br />

antibodies, and gene therapy products.<br />

2. AdVac® technology: a technology based on the development and<br />

production of novel adenovirus vectors. It can be used together<br />

with PER.C6® technology to develop recombinant vaccines against<br />

life-threatening diseases or to develop gene therapy products.<br />

3. MAbstract® technology: a human-based antibody phage display<br />

technology that facilitates the discovery of novel drug targets<br />

and the identification of human monoclonal antibodies against<br />

those targets.<br />

4. STAR® technology: a gene expression technology that enhances<br />

yields of recombinant human antibodies and therapeutic proteins<br />

on mammalian cells lines.<br />

5. Virosome technology: a virosome is a virus-like particle that<br />

acts as a vaccine adjuvant and carrier system. Vaccines based<br />

on virosome technology combine high efficacy with high purity,<br />

and therefore low potential for causing side effects.<br />

Support technologies<br />

A. Recombinant Paramyxovirus technology: a novel vaccine design<br />

technology based on recombinant measles vectors. These vaccine<br />

vectors can be manufactured economically in large quantities,<br />

and induce strong and sustained immune responses against the<br />

antigens they carry.<br />

B. Hansenula polymorpha technology: an innovative yeast-based<br />

production platform widely used for the manufacture of industrial<br />

proteins, food and feed additives, and highly immunogenic vaccines—<br />

such as <strong>Crucell</strong>’s Hepavax-Gene® vaccine against hepatitis B.


Our business – Technologies<br />

PER.C6® technology: an innovative package<br />

The PER.C6® human cell line is the cornerstone on which <strong>Crucell</strong> was<br />

built. It was originally developed for making antibodies against cancer<br />

and for gene therapy, but around 2002 researchers in the company<br />

discovered that a wide range of viruses also grow very well on<br />

PER.C6®. This meant that PER.C6® could be developed as a platform<br />

for producing the new viral vaccines the world needs—classical as<br />

well as adenovirus-based vaccines.<br />

PER.C6® technology offers major advantages over other platforms used<br />

for manufacturing biological products and is uniquely positioned<br />

to meet the key challenges in the industry. These include the need to<br />

produce larger volumes of product more quickly and cost-effectively,<br />

while meeting increasingly stringent safety requirements.<br />

The heart of PER.C6® technology is the PER.C6® human cell line.<br />

This is a continuously dividing set of cells derived from a single<br />

human cell, immortalized using recombinant DNA technology. Like<br />

other continuous cell lines, PER.C6® cells can replicate indefinitely—<br />

but that is where the comparison ends.<br />

One of the great advantages of PER.C6® cells is that they grow to much<br />

higher density than other continuous cell lines. This is due to inherent<br />

characteristics of the PER.C6® cells themselves, which are further<br />

enhanced by the intensified manufacturing process and special growth<br />

media developed as part of the PER.C6® technology package.<br />

The ability of PER.C6® cells to grow to exceptionally high densities<br />

means that much more biological product can be harvested from<br />

much smaller bioreactors. For example, PER.C6® cells infected with<br />

virus for manufacturing purposes produce at least 10 times more virus<br />

per milliliter than any other cell line does. The same yield can therefore<br />

be obtained from a 500-liter bioreactor using PER.C6® as a 5000-liter<br />

or larger bioreactor using another cell line. This translates into<br />

significant savings in capital expenditure and production costs, as well<br />

as shorter production times. PER.C6® technology is an ideal companion<br />

for other innovative <strong>Crucell</strong> technologies, such as the virosome<br />

(a vaccine design technology combining high efficacy with low side<br />

effects) and AdVac® technology (which focuses on the development<br />

of novel adenovirus vectors and is used with PER.C6® to develop<br />

recombinant vaccines).<br />

27 g/L<br />

Record-level titer achieved at harvest for an antibody<br />

product using PER.C6® human cell line technology.<br />

10 times<br />

More virus per millimeter are produced by<br />

PER.C6® infected cells.<br />

23


24<br />

Our business – Technologies<br />

The PERCIVIA PER.C6® Development Center<br />

is designed to further develop the PER.C6®<br />

cell line and to provide turnkey solutions for<br />

licensees utilizing the PER.C6® human cell<br />

line to produce pharmaceutical proteins.<br />

PERCIVIA PER.C6® Development Center<br />

In September 2010, <strong>Crucell</strong> and Royal DSM announced the expansion<br />

of activities in their existing joint venture, the PERCIVIA PER.C6®<br />

Development Center (Cambridge, Massachusetts, US), to transform<br />

the company from a development center into a full biopharmaceutical<br />

company for the development of PER.C6®-based biobetter proteins<br />

and monoclonal antibodies as well as global licensing of the PER.C6®<br />

human cell line for production of third party monoclonal antibodies<br />

and other proteins. The joint venture, in which DSM and <strong>Crucell</strong> each<br />

hold an equal equity share, will be known as PERCIVIA LLC. The joint<br />

venture will broaden its scope and will focus on proprietary development<br />

of PER.C6®-based biobetter proteins and monoclonal antibodies,<br />

initially to early clinical stages.<br />

AdVac® technology<br />

AdVac® technology involves the development and manufacture<br />

of novel vectors (gene transport vehicles) made from adenoviruses<br />

(harmless cold viruses) that very rarely infect humans, such as Ad35.<br />

Genetic material encoding for viruses, parasites or bacteria can be<br />

inserted into these vectors to make novel vaccines against a broad<br />

range of human pathogens, or the vectors can be used to make<br />

gene therapy products.<br />

www.crucell.com<br />

AdVac® technology is a powerful vector system, especially when<br />

coupled with <strong>Crucell</strong>’s PER.C6® technology, which unlike any other<br />

cell line does not allow replication-competent adenoviruses to form<br />

during the production of replication-deficient vectors.<br />

AdVac® technology is based on adenoviruses that very rarely infect<br />

humans, whereas other adenovirus vectors are based on viruses that are<br />

widespread in human populations—and therefore much more likely to<br />

encounter pre-existing immunity. By circumventing pre-existing immune<br />

responses against the adenovirus vector, AdVac®-based vaccines allow<br />

accurate dose control and are potentially more effective than other<br />

adenoviral vector vaccines.<br />

AdVac®-based vectors share the advantages of the widely used<br />

adenovirus vectors, such as scalable production, high yields and the<br />

ability to mediate a strong T-cell immune response.


Our business – Technologies<br />

MAbstract® technology<br />

MAbstract® technology is a human antibody-based phage display<br />

system, which facilitates the discovery of novel drug targets and the<br />

identification of human monoclonal antibody against those targets.<br />

A phage (or ‘bacteriophage’) is a virus that can infect and multiply in<br />

bacteria. In phage display technology, phages are genetically engineered<br />

to expresses the pathogen-binding part of a human antibody on their<br />

surfaces. In the application of MAbstract® technology, a library of<br />

phages exposing a wide variety of human antibody fragments on their<br />

surfaces is brought into contact with disease-causing microorganisms<br />

(pathogens) or parts of pathogens in order to identify human antibodies<br />

that selectively bind to targets of interest.<br />

MAbstract® technology is an efficient method for the discovery of<br />

human antibodies to be applied for the prevention, diagnosis and<br />

therapy of diseases.<br />

STAR® technology<br />

STAR® technology is a gene expression technology. Acquired by <strong>Crucell</strong><br />

in 2004, it has proved extremely valuable for increasing production<br />

of recombinant antibodies and therapeutic proteins on mammalian<br />

cell lines. STAR® technology uses well-established mammalian cell banks<br />

for protein and antibody production, thereby eliminating the need<br />

for specially engineered mammalian cells. It allows for very rapid,<br />

stable mammalian cell clone generation and typically generates stable<br />

mammalian cell clones that produce 5 to 10 times more antibody or other<br />

therapeutic protein than cell clones generated without STAR® technology.<br />

Virosome technology<br />

Virosome technology is a tool for developing novel vaccines against<br />

infectious and chronic diseases. A virosome is a virus-like particle that<br />

acts as a vaccine carrier and adjuvant (immunity enhancing) system.<br />

Vaccines based on virosome technology combine high efficacy with<br />

high purity, which means they are effective and safe to use even<br />

in infants and individuals with a weakened immune system.<br />

25


26<br />

Our business<br />

Products<br />

www.crucell.com


Our business – Products<br />

<strong>Crucell</strong> focuses on developing and marketing<br />

vaccines and antibodies against a range of<br />

infectious diseases in the paediatric, travel and<br />

endemic, and respiratory fields. We currently have<br />

a product portfolio of vaccines against twelve<br />

major infectious diseases, such as influenza,<br />

hepatitis A, hepatitis B and typhoid fever.<br />

27


28<br />

Our business – Products<br />

Our broad range of innovative products<br />

Vaccines play a vital role in protecting against disease and have<br />

contributed significantly to the improvement of global public health.<br />

Smallpox was eradicated through the use of vaccines. Significant<br />

advances include the introduction of combination vaccines and<br />

the development of new vaccine technologies.<br />

In 2010, a <strong>Crucell</strong> vaccine was given to 190 people every minute. 1 Over<br />

the full year, more than 105 million doses of vaccines were distributed<br />

in more than 100 countries, thereby preventing more than 3.6 million<br />

cases of infectious diseases and over 809, 000 deaths that would<br />

otherwise have occurred.<br />

1 Figures based on <strong>Crucell</strong>’s top 5 vaccines Quinvaxem®, Hepavax-Gene®, Epaxal®, Vivotif®<br />

and Inflexal® V. Total 101,666,000 doses minus 2% waste (2,033,320 doses) = 99,632,680<br />

doses sold in 2010 / 525600 minutes in 2010 = 189.5598 doses administered per minute.<br />

www.crucell.com<br />

In this section, you will find information about <strong>Crucell</strong>’s marketed<br />

products and comprehensive information about the diseases each<br />

of these vaccines is designed to prevent.<br />

Quinvaxem®<br />

Quinvaxem® fully liquid pentavalent (five-in-one) vaccine protects<br />

infants against five deadly childhood infections: diphtheria (D),<br />

tetanus (T), pertussis (P, whooping cough), hepatitis B (HepB), and<br />

Haemophilus influenzae type b (Hib).<br />

Combination vaccines help to simplify and harmonize vaccination<br />

schedules, leading to increased vaccine coverage and greater costeffectiveness.<br />

As the first fully liquid pentavalent DTwP–HepB–Hib<br />

vaccine brought to the market, Quinvaxem® further simplified vaccine<br />

delivery because it is ready to use as soon as the vial is opened.<br />

This makes it an ideal choice for protecting babies in developing<br />

countries with infrastructure and hygiene problems. Quinvaxem®<br />

remains the only fully liquid pentavalent vaccine that offers these<br />

advantages in a preservative-free formulation.<br />

Since the launch of Quinvaxem® in 2006, over 200 million doses of<br />

this life-saving vaccine have been delivered to developing countries,<br />

including 50 GAVI-supported countries. Most were low-income<br />

countries supplied through Unicef and the Pan American Health<br />

Organization (PAHO). With this innovation, <strong>Crucell</strong> has become<br />

a major partner in protecting children in under-resourced countries.


Our business – Products<br />

Cases of disease prevented by Quinvaxem®<br />

< 5,000<br />

5,000–10,000<br />

10,000–100,000<br />

> 100,000<br />

No report<br />

Hepavax-Gene®<br />

Hepavax-Gene® is a recombinant vaccine against hepatitis B virus<br />

infection, providing long-term protection. With a track record of more<br />

than 800 million doses administered worldwide since the launch<br />

of this vaccine in 1997, it is also one of the established WHO<br />

pre-qualified vaccines.<br />

190 people<br />

Were given a <strong>Crucell</strong> vaccine every minute during 2010.<br />

105+ mln<br />

Doses of vaccines were distributed in more than<br />

100 countries in 2010.<br />

3.6 mln<br />

Cases of infectious diseases were prevented in 2010.<br />

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30<br />

Our business – Products<br />

MoRu-Viraten®<br />

MoRu-Viraten® is a safe, well-tolerated and effective vaccine for<br />

protection against measles and rubella in children, adolescents<br />

and adults. As MoRu-Viraten® is free of egg proteins and antibiotics,<br />

it can be safely used in children with allergies to these substances.<br />

The vaccine has been marketed since 1986 and is on the WHO list<br />

of vaccines for purchase by UN agencies.<br />

Epaxal® and Epaxal® Junior<br />

Virosomal adjuvanted Epaxal®is the only aluminum-free hepatitis A<br />

vaccine on the international market. The absence of aluminum reduces<br />

the pain associated with injection, making this vaccine especially<br />

suitable for children. A virosome is a biodegradable adjuvant system<br />

and provides a more natural presentation of the antigens than<br />

traditional adjuvants. Epaxal® induces protective antibody levels<br />

within 10 days after the initial injection. A second dose prolongs<br />

effective protection for an estimated 30 years or more. The booster<br />

dose is preferably injected 6–12 months after the first dose but<br />

may be given up to 10 years later.<br />

www.crucell.com<br />

Epaxal® is approved for use in adults and children from 1 year of age.<br />

The vaccine is currently licensed in more than 35 countries under the<br />

brand names Epaxal®, HAVpur®and VIROHEP-A.<br />

Vivotif®<br />

Vivotif® is a live attenuated oral vaccine for immunization of children and<br />

adults against typhoid fever. It is available as gastro-resistant capsules for<br />

oral administration. It is the only oral vaccine approved for protection<br />

against typhoid fever. The most common cause of this bacterial disease<br />

is Salmonella serotype Typhi (S. Typhi). The protective action starts<br />

about 10 days after the last dose is taken. Vivotif® is remarkably well<br />

tolerated, with post-marketing experience over more than 20 years<br />

confirming that adverse events are rare. Vivotif® typhoid fever vaccine is<br />

currently licensed in more than 30 countries, including the United States.<br />

Dukoral®<br />

Dukoral® oral inactivated cholera vaccine provides safe, effective<br />

and convenient protection against cholera for people living in at-risk


Our business – Products<br />

areas as well as visitors to these regions. Outbreaks of severe disease<br />

in regions where cholera is endemic put local populations at risk<br />

of serious illness and death. Travelers’ diarrhea caused by cholera is<br />

generally not life-threatening but is distressing and debilitating, spoiling<br />

many holidays and business trips. This preventable diarrheal infection<br />

is now the most common travel illness but remains an under-recognized<br />

problem. Dukoral® was first licensed in 1992 and is now registered in<br />

65 countries for the prevention of cholera, with additional indications<br />

(ETEC, travelers’ diarrhea) in some of these countries. It is an oral<br />

inactivated vaccine approved for use in adults and children from<br />

two years of age. Dukoral® drinkable vaccine is easy to use and offers<br />

84–86% protection against cholera, as demonstrated in field clinical<br />

trials on various continents. Dukoral® also has a reassuringly favorable<br />

safety profile, with an adverse event rate comparable to placebo<br />

reported in clinical trials. The vaccine’s safety and tolerability has<br />

been confirmed over many years of use around the world.<br />

Inflexal® V<br />

Inflexal® V virosomal adjuvanted vaccine offers protection against<br />

influenza thanks to its virosome technology—one of <strong>Crucell</strong>’s patented<br />

innovations. Virosomes are reconstituted influenza virus envelopes,<br />

constructed without the genetic information of the virus so that they<br />

are unable to replicate or cause infections. In the context of vaccines,<br />

virosomes serve as both a carrier system and an adjuvant.<br />

Inflexal® V is the only adjuvanted influenza vaccine licensed for all<br />

age groups (from 6 months upwards).<br />

Since its launch in 1997, Inflexal® V has been licensed in 38 countries<br />

with over 60 million doses distributed. Extensive experience in<br />

the market has confirmed its efficacy and favorable safety profile.<br />

The vaccine’s unique design and manufacturing process eliminate the<br />

need for thiomersal (a vaccine preservative) or formaldehyde (commonly<br />

used to inactivate influenza viruses) and minimize residual traces of<br />

antibiotics, detergent and hen’s egg protein compared with other<br />

influenza vaccines.<br />

The vaccine’s antigen composition changes in accordance with annual<br />

recommendations issued by the World Health Organization (WHO)<br />

on the basis of data on the circulating influenza virus strains.<br />

Other products<br />

We also distribute a variety of other products, such as Gardasil®<br />

(Merck) and Prolastin® (Talecris).<br />

31


32<br />

<strong>Crucell</strong>’s commitment to the world<br />

Taking responsibility<br />

www.crucell.com


<strong>Crucell</strong>’s commitment to the world – Taking responsibility<br />

<strong>Crucell</strong>’s mission to bring innovation to global<br />

health reflects a deep commitment to improving<br />

the lives of people worldwide. We see this as part<br />

of our <strong>corporate</strong> social responsibility (CSR)—a<br />

responsibility that underpins everything we do as<br />

a global organization and as individuals united by<br />

a common purpose. For several years we have been<br />

working to develop our approach to CSR, with the<br />

goal of maximizing our contribution to society and<br />

minimizing our environmental impact. This report<br />

highlights the recent steps we have taken on our<br />

journey and outlines the road ahead.<br />

33


34<br />

<strong>Crucell</strong>’s commitment to the world – Taking responsibility<br />

Taking responsibility for a better world<br />

<strong>Crucell</strong> is making great strides with the<br />

implementation of a comprehensive policy<br />

for integrating sustainability practices in our<br />

organization. In 2009, we outlined our CSR 4P<br />

policy framework incorporating the four ‘Ps’<br />

of Performance, People, Planet and Philanthropy.<br />

In 2010, we focused on bringing this policy to life<br />

in our global organization, with substantial success.<br />

A first step in this process was to establish a CSR Working Group, which<br />

is responsible for driving continuous progress in the four P-categories.<br />

With strong support from <strong>Crucell</strong>’s Management Board and many <strong>Crucell</strong><br />

employees worldwide, this group has risen to the challenge of introducing<br />

a consistent approach to CSR development, information management<br />

and reporting. Despite the complexity of harmonizing data and<br />

definitions across departments and sites, close to full data coverage has<br />

been achieved. This will enable us to measure our progress and further<br />

improve both target setting and reporting in the years ahead.<br />

At the same time, we have been seizing opportunities for increasing<br />

our contribution to society right here and now. The rapid evolution<br />

of ‘Footprint’, our community outreach program, is one exciting<br />

example of this. The introduction of global learning and development<br />

programs for <strong>Crucell</strong> employees is another. Wherever possible, we<br />

have achieved quick wins regarding our environmental impact, while<br />

working towards a more comprehensive approach in the longer term.<br />

Looking to the future, we are delighted that talks we held with Johnson<br />

& Johnson during 2010 have resulted in <strong>Crucell</strong> becoming the center<br />

of excellence for vaccines within the world’s largest and possibly most<br />

respected healthcare company. As a member of the Johnson & Johnson<br />

Family of Companies, we can do so much more to make the world we<br />

live in a healthier and safer place. This is our core business, our passion<br />

and a key component of our CSR program.<br />

www.crucell.com<br />

On the threshold of this new era, we have compiled this report in order<br />

to update our stakeholders on the current status of our CSR program, the<br />

contribution we made to society during 2010 and our plans for the future.<br />

About this report<br />

The information in this report covers the global <strong>Crucell</strong> organization<br />

during the full calendar year 2010, unless otherwise stated. <strong>Crucell</strong> has<br />

not sought external verification of the information presented here as<br />

our current priority is to facilitate the smooth working of our newly<br />

implemented systems for CSR development.<br />

Contents<br />

CSR highlights in 2010 35<br />

Our CSR policy 36<br />

Performance 40<br />

People 51<br />

Planet 58<br />

Philanthropy 62<br />

Appendix 70


<strong>Crucell</strong>’s commitment to the world – Taking responsibility<br />

CSR highlights in 2010<br />

y A CSR Working Group was established in the first quarter of 2010<br />

and has driven the implementation of <strong>Crucell</strong>’s global policy for<br />

evidence-based CSR development and reporting.<br />

y The initial set of ambitions, targets and key performance indicators<br />

in the CSR 4P framework categories of Performance, People, Planet<br />

and Philanthropy have been reviewed, revised and expanded<br />

where necessary.<br />

y A centralized system for CSR information management has been<br />

developed and rolled out worldwide, and company-wide data<br />

collected for baseline assessments.<br />

y For the second successive year, <strong>Crucell</strong> was listed on the Dow Jones<br />

Sustainability Index (DJSI) in 2010 and showed strong progress on<br />

the Dutch ‘Transparency Benchmark’.<br />

y <strong>Crucell</strong> CEO Ronald Brus was nominated by the vaccine industry<br />

of industrialized countries to represent the constituency on the<br />

Board of the GAVI Alliance, a public-private partnership dedicated<br />

to improving access to new and underused vaccines in the world’s<br />

poorest countries.<br />

y Hundreds of talented people were recruited and further operational<br />

improvements were made in order to boost <strong>Crucell</strong>’s capacity to<br />

bring innovation to global health.<br />

y A range of global initiatives were launched to foster employees’<br />

learning and development, which has been identified as the CSR<br />

priority with respect to human resources.<br />

y <strong>Crucell</strong> made important advances towards responsible supply<br />

chain management.<br />

y <strong>Crucell</strong> partnered the International Pediatric Association,<br />

the nongovernmental organization (NGO) Friendship and other<br />

organizations in their great efforts to support national vaccination<br />

programs in developing countries, as well as other NGOs such as<br />

the Max Foundation.<br />

y ‘Footprint’, <strong>Crucell</strong>’s community outreach program, expanded in<br />

scope and impact. Two field trips made an indelible impression on<br />

the lives of participating employees from different <strong>Crucell</strong> offices<br />

around the world, as well as the people living in disadvantaged<br />

communities in South Africa and Bangladesh.<br />

y The success of <strong>Crucell</strong>’s collaboration with Johnson & Johnson on<br />

research and development (R&D) projects during 2010 prompted both<br />

parties to explore the possibility of closer ties. This led to <strong>Crucell</strong><br />

joining the Johnson & Johnson Family of Companies in February 2011,<br />

in what we see as an exciting advance for world health.<br />

“ Our CSR program is a concerted effort<br />

to ensure that we maximize the benefits<br />

we bring to society while minimizing<br />

our environmental footprint.”<br />

35


36<br />

<strong>Crucell</strong>’s commitment to the world – Taking responsibility<br />

Our CSR policy<br />

Because we care<br />

To protect, care for and contribute to society in the fullest possible sense<br />

and to the best of our ability: that is the essence of <strong>Crucell</strong>’s CSR policy.<br />

These principles of protection, care and contribution are a logical<br />

extension of our mission to bring innovation to global health, focusing<br />

especially on the prevention of infectious diseases.<br />

<strong>Crucell</strong>’s core business is the discovery, development and delivery<br />

of innovative solutions for major health threats. Our specialty is the<br />

creation of much-needed immunization products: vaccines that safely<br />

and effectively mobilize the body’s own immune defenses against<br />

infections, and antibodies that provide ‘ready-made’ immune protection<br />

against invading microbes. After clean water, immunization is believed<br />

to be the most cost-effective health intervention and its key role in<br />

promoting the socioeconomic development of countries is becoming<br />

increasingly clear.<br />

The world population is predicted to reach 7 billion in 2011 and protecting<br />

these billions of individuals from infectious diseases is more important<br />

and challenging than ever. Trends such as climate change, globalization,<br />

urbanization, wider travel and population aging are presenting new<br />

opportunities for infectious pathogens to thrive and spread.<br />

Doing our utmost to tackle this problem is our primary responsibility<br />

and our privilege. It lies at the heart of our approach to CSR. At the<br />

same time, we recognize that <strong>Crucell</strong>—as a global business with many<br />

stakeholders—has wider social responsibilities.<br />

As our business expands in line with our ambitions, our impact on<br />

the world around us will increase. Our CSR program is a concerted effort<br />

to ensure that we maximize the benefits we bring to society while<br />

minimizing our environmental footprint. Achieving the optimal balance<br />

is a challenge that calls for a proactive approach and ongoing, careful<br />

evaluation of our activities and their effects.<br />

www.crucell.com<br />

Our stakeholders<br />

<strong>Crucell</strong> works to bring significant benefit to the lives of people<br />

worldwide. This requires constructive interaction with a large<br />

number of stakeholders, including employees, legislators,<br />

investors, policy makers, business partners, licensees, suppliers,<br />

customers and organizations dedicated to sustainability issues.<br />

Our external stakeholders are far too numerous to mention, but<br />

in the interests of transparency here is a shortlist of key examples.<br />

y Legislators: US Food and Drug Administration, European<br />

Medicines Agency, and national regulatory authorities.<br />

y Policy makers: World Health Organization (WHO),<br />

Pan American Health Organization (PAHO), GAVI Alliance.<br />

y Business partners: Johnson & Johnson, DSM Biologics,<br />

Merck, Novartis, sanofi pasteur, Wyeth and MedImmune.<br />

y Customers: Supranational purchasing organizations such<br />

as Unicef (on behalf of developing countries); public and/or<br />

private health organizations in developed countries.<br />

y Sustainability organizatons: Dow Jones Sustainability Index,<br />

Carbon Disclosure Project.<br />

Stepwise progress<br />

<strong>Crucell</strong> sees CSR development as a continuous process and aims<br />

for steady progression. When we launched our global CSR program<br />

in 2008, our priority was to raise awareness and support for this<br />

initiative throughout our own organization, as well as starting<br />

a dialogue with our external stakeholders about our ambition to<br />

focus more on CSR performance and transparency.<br />

In 2009, we made the transition from this ambition to a strategy for<br />

CSR development, and outlined the 4P framework for a global CSR<br />

policy (see page 40) based on the four categories of Performance,<br />

People, Planet and Philanthropy. An initial set of ambitions, targets


<strong>Crucell</strong>’s commitment to the world – Taking responsibility<br />

and key performance indicators (KPIs) was formulated for each<br />

category. Of these, five were earmarked for special effort: CSR<br />

information management improvement, transparency objectives,<br />

responsible supply chain, CO 2 footprint and water use. Ambitious<br />

longer-term objectives were set for several of these indicators<br />

(see table 1).<br />

In 2010, we embarked on the implementation of our global CSR<br />

policy, including the roll-out of systems that will enable us to monitor,<br />

evaluate and improve our CSR performance and report on this in<br />

a transparent way.<br />

“ To protect, care for and contribute to<br />

society in the fullest possible sense and<br />

to the best of our ability: that is the<br />

essence of <strong>Crucell</strong>’s CSR policy.”<br />

Table 1: <strong>Crucell</strong>’s ‘top-five’ ambitions for CSR development<br />

KPI Target achieved in 2010 Target for 2011 Target for longer term<br />

CSR information<br />

management improvement<br />

Roll out Reporting Manual<br />

Transparency objectives Remain in DJSI 2<br />

Report based on 100% company coverage<br />

Improve CSR web page<br />

Set action plans for long term and set<br />

quantitative targets for EHS 1<br />

Further improve CSR web page and continue<br />

to develop reporting practices<br />

Responsible supply chain Extend global procurement policy Train all relevant employees<br />

80% of top 100 vendors sign Supplier Code<br />

of Conduct (CSR declaration) and take part<br />

in CSR assessment<br />

Define in 2011<br />

2015: GRI 3 A rating<br />

Monitor and maintain training level<br />

100% supplier coverage and monitoring<br />

of target group in 2011<br />

CO2 footprint Baseline setting Quantitative ambition setting 2020: 15% relative reduction 4<br />

Water use Baseline setting (100% company coverage) Quantitative ambition setting 2020: 10% relative reduction 4<br />

1 EHS–environment, health and safety.<br />

2 DJSI–Dow Jones Sustainability Indexes.<br />

3 GRI–Global Reporting Initiative.<br />

4 Relative to workforce size expressed in full-time equivalents.<br />

37


38<br />

<strong>Crucell</strong>’s commitment to the world – Taking responsibility<br />

The 4P framework of <strong>Crucell</strong>’s CSR Policy<br />

Performance<br />

Saving lives<br />

Innovation<br />

Responsible supply chain<br />

Transparency<br />

Emissions to air<br />

Emissions to water<br />

Consumption<br />

Recycling<br />

Planet<br />

www.crucell.com<br />

People<br />

Responsible employer<br />

Health & safety<br />

Business conduct<br />

Sector sustainability<br />

initiatives<br />

Contributing to science<br />

Access to healthcare<br />

NGO partnerships<br />

Community outreach<br />

Philanthropy<br />

Clarity and leadership<br />

<strong>Crucell</strong>’s CSR policy 4P framework (see left) summarizes the main ways<br />

we strive to make a positive difference to society:<br />

y by performing at our best as a business dedicated to healthcare<br />

innovation;<br />

y by taking the best possible care of the people we work with,<br />

inside and outside the company;<br />

y by doing whatever we can to preserve and protect the earth’s<br />

precious resources;<br />

y and by contributing even more than we are required to do as<br />

a company with an intrinsically CSR-oriented mission.<br />

The four categories of Performance, People, Planet and Philanthropy<br />

are each further subdivided into a variety of themes, which represent<br />

a range of related responsibilities. Themes can be added over time<br />

to reflect our evolving responsibilities, as this is a dynamic framework.<br />

This classification system is somewhat artificial, as there is considerable<br />

overlap and interdependence among the P-categories and their<br />

component themes. However, it serves as a useful reminder of the<br />

many different facets of our CSR strategy and provides a clear overview of<br />

what we, as a socially responsible company, stand for and strive towards.<br />

A practical advantage of the 4P framework is that it breaks the enormous<br />

task of CSR development and reporting into manageable portions. Early in<br />

2010, one or more leaders (‘P-owners’) were appointed for each P-category.<br />

They have taken real ownership for progress in their area, providing crucial<br />

inspiration and direction as well as coordinating the flow of information.<br />

This approach fosters transparency, clarity and focus, which helps<br />

the P-owners—in consultation with top-level management—to define<br />

realistic but challenging targets for the coming years. This step is vital<br />

for achieving the continuous progress we strive for and ensuring that<br />

our CSR strategy delivers tangible benefits for society. Adding real<br />

value is our goal.


<strong>Crucell</strong>’s commitment to the world – Taking responsibility<br />

Organization and governance<br />

A CSR Working Group comprising the P-owners and several <strong>Crucell</strong><br />

employees with a special advisory role was established in the first quarter<br />

of 2010. It is a diverse group of senior managers representing a wide<br />

range of disciplines and different <strong>Crucell</strong> sites. Members of the CSR<br />

Working Group gather information from all levels and parts of the<br />

organization. They also initiate improvements with support and<br />

advice from the Management Board. Overall ownership of CSR has<br />

been taken on by Chief Executive Officer Ronald Brus, ensuring<br />

top-level support for its ongoing development.<br />

The CSR Working Group meets on a quarterly basis to discuss progress<br />

and formulate plans for the future. Cees de Jong, <strong>Crucell</strong>’s Chief<br />

Operating Officer, chaired these meetings in 2010 and reported<br />

on their outcomes at meetings of the Management Board. This<br />

participation reflects the importance <strong>Crucell</strong>’s top management<br />

places on CSR, and ensures governance of the program at<br />

Management Board level.<br />

Bringing our CSR policy to life<br />

While strong leadership is essential for driving our CSR program, its<br />

success will depend on how firmly it can be embedded in the fabric<br />

of our organization and brought to life. That was our priority over<br />

the past year.<br />

In the next section of this report, we focus on each of the P-categories<br />

in turn, describing our current level of achievement, the actions<br />

undertaken in 2010, our progress relative to the targets and<br />

ambitions formulated in 2009, and our priorities for the future.<br />

39


40<br />

<strong>Crucell</strong>’s commitment to the world – Taking responsibility<br />

Performance<br />

The P-category we call ‘Performance’ embraces four social responsibilities<br />

that we see as being central to our core business and our mission:<br />

innovation, saving lives, responsible supply chain management and<br />

transparency, by which we mean the responsibility to evaluate and<br />

report on our CSR activities in a comprehensive and systematic way.<br />

Transparency is, of course, an overarching principle in our CSR program<br />

and applies equally to all categories in the 4P policy framework.<br />

We have chosen to include it in the category most closely allied with<br />

our core business because we see transparency as a tool for strategic<br />

decision making, as well as a key responsibility towards our<br />

stakeholders. As a company dedicated to making a meaningful<br />

difference to people’s lives, we want the fullest possible understanding<br />

of our impact on society and our planet.<br />

Under the leadership of the Performance P-owner, whose function in the<br />

organization is Director Global Procurement, a large number of <strong>Crucell</strong><br />

employees have contributed to the gathering and analysis of information<br />

relevant to the initial set of key performance indicators (KPIs), targets<br />

and ambitions that were defined for this P-category in 2010 (see table 2).<br />

The P-owner’s expertise in the field of Procurement was especially<br />

valuable for developing a strategy for responsible supply chain<br />

management, which is one of five KPIs for which we have set<br />

particularly ambitious objectives.<br />

Besides a responsible supply chain, the other KPIs we have selected to<br />

measure our contribution in the Performance category are: prevention<br />

of illness and deaths, the number of pipeline products, research and<br />

development (R&D) expenses, animal welfare, CSR management<br />

improvement, and transparency objectives (relating to benchmarks<br />

such as the Dow Jones Sustainability Index, the Carbon Disclosure<br />

Project and the Transparency Benchmark). These indicators form the<br />

basis of the following discussion of activities and outcomes in the<br />

Performance category during 2010.<br />

1 Figures based on <strong>Crucell</strong>’s top 5 vaccines Quinvaxem®, Hepavax-Gene®, Epaxal®, Vivotif®<br />

and Inflexal® V. Total 101,666,000 doses minus 2% waste (2,033,320 doses) = 99,632,680<br />

doses sold in 2010 / 525600 minutes in 2010 = 189.5598 doses administered per minute.<br />

2 Figure based on <strong>Crucell</strong>’s top five vaccines in terms of sales volumes:<br />

Quinvaxem®, Hepavax-Gene®, Epaxal®, Vivotif® and Inflexal® V.<br />

www.crucell.com<br />

Saving lives<br />

During 2010, <strong>Crucell</strong> delivered 105 million doses of vaccines to people<br />

around the world, with the majority going to infants in developing<br />

countries. Together, the vaccines we have on the market prevent<br />

twelve major infectious diseases: childhood infections, travel and<br />

endemic illnesses, and respiratory disease. Allowing for the fact<br />

that some vaccines inevitably go to waste, we can estimate that<br />

a <strong>Crucell</strong> vaccine was given to 190 individuals every minute during<br />

2010 1 —a thought that makes us proud.<br />

However, we believe that the best measure of our impact on global<br />

health is not the number of doses we supply, but the number of deaths<br />

and cases of disease we prevent each year. In other words, how many<br />

people would have become sick or died if they had not received our<br />

vaccine? This can be estimated by combining sales figures with data<br />

on vaccine efficacy (how well a vaccine works), disease incidence<br />

(the expected number of new cases in a population) and case fatality<br />

(the death rate among infected patients).<br />

Based on the best available evidence for these parameters, and<br />

assuming a 2% vaccine waste rate, <strong>Crucell</strong>’s ‘top-five’ vaccines prevented<br />

more than 3.6 million cases of infectious disease and 809,823 deaths in<br />

2010 2 . This was similar to our health impact in 2009, when we prevented<br />

more than 3.6 million cases of disease and over 819,000 deaths.<br />

We did not meet our target of continuous improvement in the prevention<br />

of illness and deaths, as overall product sales were slightly lower in<br />

2010 than 2009. Higher sales of travel and endemic vaccines were more<br />

than offset by lower sales of our seasonal influenza vaccine (due to the<br />

limited availability of flu antigen and weaker overall demand) as well<br />

as the temporary suspension of Quinvaxem® shipments, as explained<br />

on page 46.


<strong>Crucell</strong>’s commitment to the world – Taking responsibility<br />

Innovation<br />

While we are already preventing an estimated 3.6 million cases<br />

of infectious disease and saving over 809,000 lives with our existing<br />

portfolio of marketed vaccines, we want to do much more. Ongoing<br />

innovation is the key to realizing this ambition.<br />

<strong>Crucell</strong>’s broad research and development (R&D) pipeline currently<br />

includes twelve investigational products, of which nine are candidate<br />

vaccines and three are antibody-based immunization products. All are<br />

based on <strong>Crucell</strong>’s innovative proprietary technologies, which provide<br />

unique opportunities for combating major threats to human health.<br />

These threats include some of the world’s most powerful and elusive<br />

killers, such as tuberculosis, HIV/AIDS and malaria. The first two were<br />

responsible for 1.7 and 1.8 million deaths, respectively, in 2009, while<br />

malaria affected 225 million people in 2009 and claims almost one million<br />

lives annually. These enormous numbers highlight the importance and<br />

urgency of our promising vaccine research in these disease areas.<br />

Table 2: Performance KPIs and targets going forward<br />

KPI Quantitative/Qualitative Target<br />

Prevention of illness and death Continuous improvement<br />

Report annually<br />

Number of pipeline products Report annually<br />

Animal welfare Continuous improvement 3Rs 1<br />

R&D expenses Report annually<br />

CSR information management improvement 2011: Set action plans and set quantitative targets for EHS 2<br />

Responsible supply chain 2011: Train all relevant employees in responsible supply chain management<br />

2011: 80% of top 100 vendors sign Supplier Code of Conduct (CSR declaration)<br />

and take part in CSR assessment<br />

Beyond 2011: Full coverage and monitoring of supplier target group<br />

Transparency objectives 2011: Further improve CSR web page and continue to develop reporting practices<br />

1 3Rs–Reduce, Refine and Replace.<br />

2 EHS–Environment, health and safety.<br />

3 GRI–Global Reporting Initiative.<br />

Quantitative<br />

Qualitative<br />

2015: GRI 3 A rating<br />

41


42<br />

<strong>Crucell</strong>’s commitment to the world – Taking responsibility<br />

In the influenza field, our research teams are working on a trio of programs<br />

aimed at registering a better seasonal flu vaccine by 2014 and<br />

developing products that will revolutionize the approach to influenza<br />

prevention and treatment in the longer term. Influenza currently kills<br />

an estimated 345,000 people annually and imposes a heavy burden<br />

on society in terms of lost productivity and healthcare costs. The<br />

emergence of a lethal influenza virus with pandemic potential could<br />

push the death toll into tens of millions.<br />

For the 55,000 people—especially children—who die of rabies each year,<br />

we are developing a monoclonal antibody (mAb) product in partnership<br />

with sanofi pasteur. People who are bitten by a rabid animal can be<br />

saved by immediate injection of rabies antibodies and vaccine, both of<br />

which exist, but the blood-derived antibodies now available are in short<br />

supply and too expensive for most developing countries, where the<br />

need is greatest. Our rabies mAb product is poised to enter a large<br />

Phase II clinical trial in India in the first half of 2011, after showing<br />

very promising results in other clinical settings and populations.<br />

These are just some examples of the ways in which <strong>Crucell</strong> is working<br />

on medical solutions that really matter. A full overview of our pipeline<br />

products is given on page 13, and more information is available on<br />

the R&D section of our website.<br />

Animal welfare<br />

Before any candidate medical product can be given to humans, it<br />

must be rigorously tested in pre-clinical (non-human) models. <strong>Crucell</strong><br />

performs animal testing to the minimum extent that is required by<br />

law. We conduct essential safety studies in animals in accordance with<br />

the highest international standards, which are designed to prevent or<br />

minimize any suffering of the animals tested. Simultaneously, we apply<br />

the 3R principles—Reduce, Refine and Replace—to pre-clinical studies<br />

involving animals. <strong>Crucell</strong> has been working over many years to replace<br />

animal tests with cell-based assays, and these efforts have already<br />

resulted in the significant reduction of animal testing.<br />

www.crucell.com<br />

€100.0 mln<br />

Research and development investment in 2010<br />

compared to €70.2 mln in 2009.<br />

“ <strong>Crucell</strong> invested heavily in the<br />

advancement and expansion of<br />

pipeline programs in 2010.”


<strong>Crucell</strong>’s commitment to the world – Taking responsibility<br />

R&D progress<br />

<strong>Crucell</strong> invested heavily in the advancement and expansion of pipeline<br />

programs in 2010. In line with our guidance to the financial market,<br />

R&D expenses increased by more than a third to €100.0 million,<br />

compared to €70.2 million in 2009. The rise was predominantly due<br />

to an increase in clinical development spending, reflecting progress<br />

in clinical trials and significant investments in our in-house product<br />

development capabilities.<br />

Development of our pipeline during 2010 was accelerated by a strategic<br />

collaboration with Johnson & Johnson, signed in September 2009. Under<br />

the terms of this agreement, Johnson & Johnson will finance a significant<br />

part of <strong>Crucell</strong>’s existing R&D program aimed at discovery, development<br />

and commercialization of a monoclonal antibody product for the universal<br />

prevention and treatment of influenza. This program is based on <strong>Crucell</strong>’s<br />

discovery of a new class of antibodies with the unprecedented ability<br />

to neutralize a broad range of influenza virus strains.<br />

The strategic collaboration also provided funding for four new discovery<br />

programs in areas where <strong>Crucell</strong>’s innovative science and technologies<br />

show significant potential to make an important difference to global<br />

health. One of these was specified at the time the agreement was<br />

signed, and two others were decided jointly by the collaboration<br />

partners on the basis of exploratory work by <strong>Crucell</strong>’s Innovation<br />

& Discovery Laboratory (I&DL) teams in the course of 2010.<br />

In the first of the new discovery programs, <strong>Crucell</strong> scientists are using<br />

the knowledge generated in our flu antibodies program to design<br />

a vaccine with the potential to provide lifelong protection against<br />

influenza, regardless of the causal virus strain. A universal flu vaccine<br />

would eliminate the need to formulate new flu vaccines year after year,<br />

and would at last provide a defense against a lethal new influenza<br />

virus with pandemic potential. Work started on this exciting project<br />

at the beginning of 2010.<br />

The second discovery program, launched in June, focuses on the design<br />

of a vaccine to prevent severe respiratory infections caused by all of the<br />

most common strains of respiratory syncytial virus (RSV). Infants and<br />

the elderly are especially vulnerable to life-threatening illness caused<br />

by RSV, which currently claims an estimated 160,000 lives annually.<br />

RSV-induced disease is the last major childhood illness for which no<br />

preventive vaccine is available.<br />

The third new discovery program, announced in November, targets the<br />

development and commercialization of a therapeutic vaccine against<br />

human papillomavirus (HPV). Around 250,000 men and women with<br />

chronic HPV infection die each year.<br />

Another R&D highlight during 2010 was the launch of <strong>Crucell</strong>’s in-house<br />

FluCell program: a new frontier for seasonal influenza vaccines. Inflexal®<br />

V, our current flu vaccine, is both highly effective and very well tolerated<br />

thanks to its underlying virosomal technology. Now we are working<br />

to combine this innovative approach to vaccine design with our highdensity<br />

PER.C6® cell–based production system. This will enable us<br />

to manufacture unlimited supplies of high-quality flu vaccine more<br />

efficiently, more cost-effectively and starting earlier in the flu season.<br />

The traditional production method grows the viruses used for flu vaccines<br />

in chicken eggs—a slow and laborious method that does not lend itself<br />

to high-volume manufacturing, as we saw during the recent pandemic.<br />

The fact that we now have three influenza programs in the pipeline<br />

illustrates <strong>Crucell</strong>’s approach to innovation. We seize opportunities<br />

to make a difference in the near future while simultaneously working<br />

towards breakthrough products that will take considerably longer<br />

to develop, test and bring to market.<br />

Investigational vaccines we already have in clinical trials made<br />

important progress during 2010. For example, in May the recombinant<br />

malaria vaccine <strong>Crucell</strong> is developing in collaboration with the US<br />

National Institute of Allergy and Infectious Diseases entered a new<br />

phase I trial in Burkina Faso, Africa. This is the first trial of the vaccine<br />

in a population living in an area where malaria is endemic. In October,<br />

we were delighted to announce the start of a new phase II clinical trial<br />

of the tuberculosis vaccine we are developing together with the Aeras<br />

Global TB Vaccine Foundation. The trial will evaluate the safety and<br />

efficacy of this promising vaccine candidate in infants previously<br />

immunized with Bacille Calmette Guérin (BCG) vaccine. BCG is the<br />

only available TB vaccine, but has very limited efficacy.<br />

43


44<br />

<strong>Crucell</strong>’s commitment to the world – Taking responsibility<br />

Quinvaxem® in Uniject: simply better<br />

<strong>Crucell</strong> has embarked on a development project that will make<br />

Quinvaxem® pentavalent vaccine available in Uniject, an innovative<br />

vaccine injection system. The nonprofit organization PATH developed<br />

Uniject over 20 years ago with the aim of simplifying vaccine delivery,<br />

which the World Health Organization (WHO) sees as a key strategy<br />

for helping developing countries to improve their national<br />

immunization programs and reach populations in remote areas.<br />

The Uniject device is essentially a small plastic bubble attached to a<br />

fine, short needle and fitted with an auto-disable mechanism so that<br />

it can be used only once. The bubble will be filled with a single dose of<br />

Quinvaxem® at <strong>Crucell</strong>’s new manufacturing facility in Korea, where<br />

a state-of-the-art filling and inspection line will be created for this<br />

purpose. From there, the factory-filled devices will be shipped to the<br />

growing number of countries that are choosing <strong>Crucell</strong>’s five-in-one<br />

vaccine to protect their children against diphtheria, tetanus, pertussis,<br />

hepatitis B and Haemophilus influenzae type B (Hib), a leading cause<br />

of severe pneumonia and meningitis.<br />

Because the Uniject device needs no assembly or preparation in<br />

the field, it is ideal for countries with limited healthcare resources<br />

and a poor infrastructure. It is much faster and easier to use than the<br />

standard needle and syringe system, delivering the correct vaccine<br />

dose with a simple squeeze of the bubble. Medical staff can therefore<br />

administer more vaccines during an immunization session, with less<br />

risk of error, and even non-traditional healthcare workers can safely<br />

administer the vaccine after a short training. The auto-disable feature<br />

is important for preventing the spread of HIV and other infectious<br />

diseases. Uniject also reduces the vaccine wastage associated with<br />

multi-dose vials. Finally, its light weight and compact size facilitate<br />

transport to hard-to-reach areas. These benefits are proven, as Uniject<br />

has already been used to deliver hepatitis B and tetanus vaccines to<br />

over 73 million women and children in developing countries. Beckton-<br />

Dickinson (BD), with whom <strong>Crucell</strong> collaborates on the Uniject<br />

project, continues to further develop and improve the device.<br />

www.crucell.com<br />

Prototype Uniject device<br />

<strong>Crucell</strong>’s commitment to the Uniject project reflects the breadth<br />

of our efforts to bring innovation to global health. We know that<br />

improving access to lifesaving vaccines depends on programmatic<br />

innovations as well as new vaccines.<br />

<strong>Crucell</strong> developed Quinvaxem®to meet the specific immunization<br />

needs of the world’s poorest countries, where delivering the WHOrecommended<br />

package of vaccines to all children under five is a<br />

major challenge. When it was introduced in 2006, the only other<br />

available pentavalent vaccine came in two vials and had to be<br />

reconstituted in the field. The Quinvaxem® fully liquid formulation<br />

simplified vaccine delivery because it is ready for use as soon as<br />

the vial is opened. Putting Quinvaxem® into Uniject will make<br />

delivery simpler again, further improving vaccine coverage and<br />

cost-effectiveness. The introduction of one of the key EPI 1 vaccines<br />

in BD Uniject also brings environmental advantages: no need for<br />

separate transport of syringes and vials, ease of disposal and reduction<br />

of toxic substance emissions during burning of waste. This development<br />

is the next logical step in an ongoing process of innovation.<br />

“PATH is thrilled that <strong>Crucell</strong> is making this significant commitment,”<br />

Steve Brooke from PATH told key opinion leaders at the International<br />

Pediatric Association (IPA) Congress in South Africa last August.<br />

<strong>Crucell</strong> announced its Uniject plans at the conference and invited<br />

feedback from potential users. This followed a meeting of the WHO<br />

group focusing on new and underutilized vaccines implementation<br />

(NUVI) in June, where stakeholders were surveyed on the benefits<br />

and constraints for pentavalent vaccine in Uniject. The WHO<br />

consultation at Technet, which explores technological innovations,<br />

provided another opportunity for dialogue and debate in December.<br />

Participation in such meetings helps us to understand and meet<br />

local needs, for example regarding packaging.<br />

1 EPI stands for Expanded Program on Immunization, the WHO strategy<br />

for making vaccines available to all children worldwide.


<strong>Crucell</strong>’s commitment to the world – Taking responsibility<br />

Recruitment and operational improvements in our R&D groups were a high<br />

priority during 2010. Dr Jerald Sadoff, a veteran of vaccine development<br />

and former director of the Aeras Global TB Vaccine Foundation, joined<br />

<strong>Crucell</strong> as Chief Medical Officer & Head of Development in March 2010.<br />

He brings with him a wealth of experience and enthusiasm to take<br />

<strong>Crucell</strong>’s pipeline products to market in the shortest possible time.<br />

While working on the discovery and development of new vaccines<br />

and antibody products, <strong>Crucell</strong> also invests in programs that will<br />

increase the value and reach of existing products. A prime example<br />

of this sort of lifecycle development is our project to make Quinvaxem®<br />

available in Uniject, an ingenious vaccine delivery device designed<br />

to meet the immunization needs of developing countries (see box).<br />

Other examples are our efforts to launch Epaxal® hepatitis A vaccine<br />

on the US market and our R&D program to add a sixth vaccine to<br />

the Quinvaxem® combination.<br />

Success and setback<br />

A total of 68.9 million doses of Quinvaxem® vaccine, <strong>Crucell</strong>’s lead<br />

product, were delivered to developing countries in 2010, compared to<br />

64.3 million in 2009. Quinvaxem® is a fully liquid pentavalent (five-inone)<br />

vaccine that protects against five major childhood diseases. It<br />

was developed specifically to meet the needs of countries with limited<br />

resources and is making a major contribution towards achieving the<br />

United Nations Millennium Development Goal of reducing the mortality<br />

rate among children under five by two-thirds between 1990 and 2015.<br />

In 2010, Vietnam joined the growing number of recipient countries<br />

after the Vietnamese health authorities registered Quinvaxem® for use<br />

in the national immunization program. The first shipment was sent to<br />

Vietnam in April 2010—a month in which we shipped a record number<br />

of Quinvaxem® doses.<br />

Fill and finish operations started at our new Korean production facility mid-2010.<br />

Quinvaxem® vaccines sold<br />

(Doses in million units)<br />

6.3<br />

21.9<br />

39.6<br />

64.3 68.9<br />

2006 2007 2008 2009 2010<br />

45


46<br />

<strong>Crucell</strong>’s commitment to the world – Taking responsibility<br />

Unfortunately, this success was followed by a setback later in the year.<br />

Despite our stringent quality and safety procedures, a microbiological<br />

contamination occurred at the Shingal plant in Korea where we<br />

manufacture Quinvaxem®, leading us to temporarily suspend all<br />

shipments of vaccines from this facility at the end of October 2010 and<br />

launch a thorough investigation. Shipments of noncontaminated stock<br />

of Quinvaxem® were resumed in December 2010. Full-scale commercial<br />

production of the vaccine recommenced at the Shingal facility at the<br />

start of February 2011, after the Korean regulatory authorities<br />

inspected the plant and declared it to be safe.<br />

This experience emphasizes the challenges and dilemmas inherent<br />

in our industry. Suspending the delivery of lifesaving vaccines as<br />

a precautionary measure was a painful choice and had significant<br />

financial consequences, but the alternative was unthinkable. We are<br />

not prepared to accept the slightest risk that a <strong>Crucell</strong> vaccine could<br />

cause harm.<br />

www.crucell.com<br />

During 2010 we made excellent progress on the project to relocate<br />

<strong>Crucell</strong>’s Korean production facility from the Shingal site in Yongin City<br />

to the Incheon Free Economic Zone. Operational testing of the Incheon<br />

production facility began in March 2010 and progressed rapidly from<br />

simulated test runs to validation testing of the real production process,<br />

which generates data on product consistency for submission to the<br />

regulatory authorities. These consistency runs have been completed<br />

successfully and we expect to receive regulatory approval of the<br />

Incheon facility in the second half of 2011.<br />

With a capacity of over 100 million doses annually, the new facility will<br />

enable us to significantly increase production volumes and efficiency<br />

in order to meet anticipated further growth in demand for Quinvaxem®<br />

pentavalent vaccine and our hepatitis B vaccine Hepavax-Gene®,<br />

which is also produced in Korea.<br />

A new era<br />

The landmark event of 2010 was Johnson & Johnson making a<br />

recommended cash offer to acquire <strong>Crucell</strong> N.V. at a price of €24.75 per share.<br />

The offer was formally made on 8 December 2010, and was declared<br />

unconditional on 22 February 2011, after more than 95% of the issued and<br />

outstanding share capital of <strong>Crucell</strong> was tendered for the offered price.<br />

The agreement makes <strong>Crucell</strong> the center for vaccines within the Johnson<br />

& Johnson Family of Companies, ushering in an exciting new era for<br />

our organization and—above all—for human health. We are delighted<br />

by the prospect of pursuing our mission with the support of Johnson<br />

& Johnson, an organization that shares our passion for healthcare<br />

innovation, our values and our commitment to care for people.<br />

“We are an excellent fit and together we can make a much greater<br />

difference to the lives of people worldwide,” says <strong>Crucell</strong>’s CEO Ronald<br />

Brus. “Johnson & Johnson is fully committed to investing in <strong>Crucell</strong> in<br />

order to accelerate our programs. What’s more, its management clearly<br />

values and wants to foster <strong>Crucell</strong>’s innovative and entrepreneurial<br />

spirit. This trust and respect is the key to a successful relationship.”


<strong>Crucell</strong>’s commitment to the world – Taking responsibility<br />

Responsible supply chain<br />

Responsible supply chain management was identified in 2009 as<br />

one of five priority areas for CSR development. <strong>Crucell</strong> wants to make<br />

sustainability issues an integral aspect of our choice of suppliers and<br />

our relationship with them, and we have charted a clear course towards<br />

this goal. The progress made in 2010 well exceeds our expectations.<br />

In 2009, we laid the basis for active management of our supply<br />

chain, from a CSR perspective, by professionalizing our procurement<br />

organization and introducing a global procurement policy. The main<br />

target set for 2010 was to in<strong>corporate</strong> industry best practices for<br />

responsible supply chain management, as defined by the Pharmaceutical<br />

Supply Chain Initiative (PSCI), into our procurement policy and practice.<br />

Rather than simply reproducing the PSCI best practices in <strong>Crucell</strong>’s<br />

procurement guidelines, a team led by <strong>Crucell</strong>’s Global Procurement<br />

director has developed a Suppliers’ Code of Conduct focusing on<br />

the PSCI principles that are most important and relevant for <strong>Crucell</strong><br />

and our vendors. This Code is a declaration of <strong>Crucell</strong>’s commitment<br />

to sustainability and what we expect of our suppliers. It is designed<br />

to encourage dialogue with suppliers, instead of a ‘checklist’ or<br />

compliancy mentality. For this reason, the Code in<strong>corporate</strong>s <strong>Crucell</strong>specific<br />

ambitions relating to sustainability as well as guidelines<br />

for best practice.<br />

Working together<br />

Over the past year, this focus on dialogue has become central to our<br />

vision and strategy for responsible supply chain management. We want<br />

to engage our suppliers in an open conversation about sustainability<br />

practices, challenges and opportunities. By sharing our experiences<br />

and working together, we believe we can help the organizations<br />

that supply us with goods and services to make CSR improvements<br />

that benefit <strong>Crucell</strong>—and ultimately, of course, our planet.<br />

Two new initiatives were launched in 2010 to foster the kind of<br />

dialogue and improvements we aspire to. One focuses on supplier<br />

assessment, the other on supplier participation in <strong>Crucell</strong>-led<br />

efforts to promote good sustainability practices in line with our<br />

CSR objectives.<br />

Good things come in small packages<br />

During 2010, a multifunctional team at <strong>Crucell</strong> worked together<br />

with suppliers on a project to deliver our pentavalent paediatric<br />

vaccine Quinvaxem® in smaller glass vials. The new vials contain<br />

the same volume of vaccine and are made of the same glass as<br />

before, so this change raises no regulatory or health issues. Each<br />

vial is 1 gram lighter and we expect to fit 17% more vials in the<br />

containers used for shipping. This significantly reduces energy<br />

used for transportation and makes more efficient use of the cold<br />

chain, which in developing countries is particularly limited. Smaller<br />

vials also mean less raw material and less waste. The wide range<br />

of benefits associated with this development highlights the<br />

breadth of <strong>Crucell</strong>’s CSR efforts and the overlap among the 4P<br />

categories. We will start shipping Quinvaxem® in the new vials<br />

in September 2011.<br />

“ With a capacity of over 100 million<br />

doses annually, the new facility will<br />

enable us to significantly increase<br />

production volumes and efficiency<br />

in order to meet anticipated further<br />

growth in demand for our Quinvaxem®<br />

pentavalent vaccine and our hepatitis B<br />

vaccine Hepavax-Gene®, which is also<br />

produced in Korea.”<br />

47


48<br />

<strong>Crucell</strong>’s commitment to the world – Taking responsibility<br />

In order to conduct our business in a responsible way, we need to know<br />

more about the social and environmental impact of the companies in<br />

our supply chain. This will enable us to make the best choices and support<br />

our suppliers who may need help to develop their own sustainability<br />

practices. An online tool for gathering information about our vendors’<br />

practices and aspirations with respect to CSR was developed in 2010<br />

and will be implemented in 2011.<br />

In March 2011, <strong>Crucell</strong> held the first of a series of CSR workshops for<br />

core groups of <strong>Crucell</strong> suppliers in three regions: Korea, Switzerland and<br />

the Netherlands. These are the three major locations in terms of <strong>Crucell</strong>’s<br />

manufacturing and procurement volumes. Our aim is to bring the<br />

groups together annually to explore green ideas and work together<br />

www.crucell.com<br />

on developing sustainability practices. From our supply base, we<br />

have selected those suppliers that seem most willing and able to work<br />

with us on improvements that will deliver real benefit. The innovative<br />

concept for the workshop includes inspiring speakers, organic catering,<br />

and full CO 2 compensation for the event, including associated travel.<br />

As our ideas about responsible supply chain management have evolved<br />

during 2010, we have decided to refine our initial target (set in 2009)<br />

to achieve 100% supplier coverage and monitoring in 2011. Sending<br />

a Supplier Code of Conduct and questionnaire to each and every one<br />

of our thousands of suppliers is unlikely to lead to more than superficial<br />

communication, whereas we are aiming for real engagement and<br />

follow-up. Our revised target is to start rolling out the Suppliers’ Code<br />

of Conduct and the vendor assessment questionnaire to a sample of<br />

around 100 key suppliers in 2011. The feedback we receive should give<br />

us a good indication of the impact our CSR program can have. We will<br />

report on our findings in 2012.<br />

There is an interesting story behind the substantial results delivered<br />

in 2010. Students from Hogeschool Rotterdam, a Dutch tertiary college,<br />

were invited to work with the Global Procurement department on<br />

development of the Suppliers’ Code of Conduct, vendor assessment tool<br />

and Supplier Day program. This arrangement was mutually beneficial,<br />

giving the students valuable experience in a <strong>corporate</strong> environment<br />

while enabling <strong>Crucell</strong> to make faster progress towards our goal of<br />

responsible supply chain management.<br />

Training our people<br />

Having made great strides in 2010, we are well on track to train all<br />

relevant <strong>Crucell</strong> employees in best practices for responsible supply<br />

chain management in 2011, as targeted. In preparation for this next<br />

step, the people in our Procurement organization were given an<br />

update on <strong>Crucell</strong>’s CSR ambitions at a global event held in 2010.


<strong>Crucell</strong>’s commitment to the world – Taking responsibility<br />

Responsible choices<br />

Our successful cool-box recycling program in Sweden is an example<br />

of how smart supply chain management can combine environmental<br />

and financial benefits. This local initiative encourages vaccine customers<br />

to return the cool boxes in which they receive the products. Normally,<br />

these temperature-controlled boxes are thrown away after a single use.<br />

<strong>Crucell</strong> pays for the return transport, which costs about 50% of the new<br />

box price, and reuses each container up to four times before disposing<br />

of it responsibly. The average monthly return rate in 2010 was 89%—<br />

a great response and much higher than the 60% expected when the<br />

program was launched in 2009. Our Swedish organization sent out<br />

around 30,000 boxes of vaccines last year and purchased only around<br />

6,700 replacements, so the program substantially cuts down on both<br />

waste and expenses.<br />

CSR information management<br />

The better we understand the impact our organization has, the better<br />

choices we can make as a business that is committed to delivering<br />

sustainable profit, measured in human and financial terms.<br />

Comprehensive and reliable information about our global activities<br />

and effects is essential in order to run <strong>Crucell</strong> with ‘a warm heart and<br />

a cool head’ and communicate transparently with our stakeholders.<br />

Therefore, improving CSR information management was identified<br />

in 2009 as one of our top-five priorities for the coming years.<br />

The main targets set for 2010 were to roll out the Reporting Manual—<br />

an information tool custom-built to fit <strong>Crucell</strong>’s organization and CSR<br />

policy—and achieve 100% company coverage regarding data collection.<br />

We have reached this goal for nearly all indicators, thanks to a<br />

tremendous effort from <strong>Crucell</strong> people at all levels and parts of<br />

our organization.<br />

The senior managers who shouldered responsibility for each of the 4P<br />

policy areas (P-owners) at the global level have shown real ownership<br />

and leadership. They, in turn, have received great support from a<br />

growing band of enthusiastic CSR supporters from the local affiliates.<br />

The active involvement of the Chief Operating Officer in <strong>Crucell</strong>’s CSR<br />

Working Group sessions (held four times in 2010) has been invaluable<br />

for ensuring the alignment of this program with the Management<br />

Board’s vision and strategy for <strong>Crucell</strong>.<br />

“ The better we understand the impact our<br />

organization has, the better choices we<br />

can make as a business that is committed<br />

to delivering sustainable profit, measured<br />

in human and financial terms.”<br />

‘Rolling out’ a Reporting Manual may sound easy and effortless,<br />

but it was far from that. People grappled with the challenge of finding<br />

consistent definitions for key performance indicators (KPIs) and<br />

meaningful parameters for measuring outcomes. Training sessions<br />

and data collection had to be fitted into our employees’ already busy<br />

work days. However, by the end of 2010 a system for consistent and<br />

comprehensive reporting of information relevant to our CSR ambitions<br />

was in place, and company-wide data collection was on track.<br />

This establishes a 2010 baseline for our CSR performance, against<br />

which progress towards our ambitions can be evaluated over time.<br />

The insights we gain in the process will help us to refine and develop<br />

our CSR activities and ambitions. We see this as a continuous<br />

feedback loop enabling steady improvement.<br />

49


50<br />

<strong>Crucell</strong>’s commitment to the world – Taking responsibility<br />

Our fledgling system for CSR information management has its teething<br />

problems, of course. Looking at the 2010 data, we see some gaps<br />

and surprising differences across sites, which need to be investigated<br />

further. This uneven or uncertain quality of reporting mainly applies<br />

to specific quantitative KPIs in the categories of People and Planet.<br />

More intensive training may be required in these areas to ensure these<br />

KPIs mean the same thing to everyone contributing data. We are also<br />

thinking about the creation of incentive schemes to encourage and<br />

improve reporting. We will continue to develop, refine and improve<br />

our data collection methodology, scope and KPI set as we grow as<br />

an organization.<br />

As targeted, we will move on to formulating quantitative ambitions<br />

for environment, health and safety (EHS) parameters in 2011.<br />

Transparency<br />

A commitment to transparent communication with all stakeholders<br />

is fundamental to <strong>Crucell</strong>’s CSR policy. We measure our performance<br />

in this regard against external benchmarks and our own targets for<br />

CSR development. In line with our ambitions, <strong>Crucell</strong> continued to<br />

show good performance and progress on major external benchmarks<br />

of transparency and sustainability in 2010.<br />

We are especially proud that <strong>Crucell</strong> was relisted on the Dow Jones<br />

Sustainability Index (DJSI) on September 9, 2010, for the second successive<br />

year. This significant achievement is in line with our target, expressed in<br />

2009, to remain in the DJSI family of indexes—the leading benchmarks<br />

for sustainable investment. The Dow Jones Sustainability Indexes<br />

were introduced in 1999 to indicate international corporations that<br />

have made sustainability an integral part of their business strategy.<br />

Companies are included on the basis of best-in-class performance.<br />

To find out more about the DJSI, go to www.sustainability-index.com.<br />

www.crucell.com<br />

<strong>Crucell</strong> participated in the Carbon Disclosure Project (CDP) in 2010,<br />

as in the previous year. This project is a worldwide, investor-driven<br />

initiative encouraging multinational corporations to report on their<br />

environmental impact, specifically in relation to carbon emissions<br />

and climate change. Our participation reflects our ambition to<br />

measure and manage <strong>Crucell</strong>’s carbon footprint. For more information<br />

about the CDP, go to www.cdproject.net.<br />

In the Netherlands, where <strong>Crucell</strong> has its global headquarters, <strong>Crucell</strong><br />

is listed on the Transparantiebenchmark (Transparency Benchmark),<br />

an index published by the Dutch Ministry of Economic Affairs, Innovation<br />

and Agriculture. The Transparency Benchmark criteria were changed<br />

considerably in 2010 compared with the previous years, the index was<br />

expanded to include the country’s 500 largest companies and the rating<br />

scale was increased from 100 to 200 points. The Ministry expected the<br />

new criteria to have a negative impact on scores. Nevertheless, <strong>Crucell</strong><br />

showed good progress on the benchmark in 2010, scoring 96 out of<br />

200 points compared with 38 out of 100 points in 2009. This substantial<br />

growth continues the trend seen since 2008.<br />

<strong>Crucell</strong> continues to make progress towards the goal of reporting<br />

on our CSR activities in accordance with Global Reporting Initiative<br />

(GRI) criteria and verified by external audit. The improvements in<br />

CSR information management implemented in 2010 take us a step<br />

further in this direction.


<strong>Crucell</strong>’s commitment to the world – Taking responsibility<br />

People<br />

<strong>Crucell</strong> is committed to conducting business with integrity, in a way<br />

that respects the rights and needs of our large network of stakeholders,<br />

inside and outside the company. As a company dedicated to bringing<br />

innovation to global health, we recognize the importance of creating<br />

a working environment that attracts and retains talented people<br />

and fosters their ongoing development.<br />

In this section we describe what <strong>Crucell</strong> is doing to live up to its<br />

responsibilities towards people, focusing on three main themes:<br />

being a responsible employer, health and safety, and good<br />

business conduct.<br />

<strong>Crucell</strong>’s VP Global Human Resources has taken on ownership of<br />

the ‘People’ category within the CSR policy framework. He has driven<br />

<strong>Crucell</strong>’s efforts to improve CSR performance and reporting in the<br />

area of people and organization during 2010. In consultation with<br />

the Management Board, the CSR Working Group has refined and<br />

expanded the initial set of key performance indicators (KPIs) for the<br />

People category (see table 3) and formulated qualitative targets<br />

corresponding to these indicators.<br />

Thanks to efforts from <strong>Crucell</strong> employees worldwide, the ambition<br />

to collect relevant People KPI data from all parts of the organization<br />

was achieved in 2010, giving us a better overview of our global<br />

organization and a baseline to evaluate further progress.<br />

Being a responsible employer<br />

<strong>Crucell</strong> can only fulfill its mission through the concerted efforts of the<br />

people making up our global organization. With their creativity, passion<br />

and drive, <strong>Crucell</strong> employees make a difference that matters—especially<br />

to the millions of individuals who lead healthy and productive lives<br />

because of the innovative products we deliver. Taking the best possible<br />

care of <strong>Crucell</strong>’s employees is therefore a responsibility with wide<br />

implications, and one we embrace.<br />

1 Excluding insourced staff in China.<br />

In line with <strong>Crucell</strong>’s growing ambitions, recruitment was a high priority<br />

over the past year. We are determined to accelerate our pipeline programs<br />

in order to bring new products to market faster, thereby increasing our<br />

impact on global health. The total workforce expanded to 1398 1 in 2010,<br />

representing a 12% increase from 2009. Most of the new employees<br />

are based in the Netherlands and Switzerland, where <strong>Crucell</strong>’s research<br />

and development (R&D) activities are located. <strong>Crucell</strong> remains an<br />

organization of relatively young people, with the average employee<br />

age being 40.<br />

51


52<br />

<strong>Crucell</strong>’s commitment to the world – Taking responsibility<br />

Table 3: People KPIs and targets going forward<br />

KPI Quantitative/Qualitative Target<br />

Number of employees by gender Continue focus on equal-opportunity human resource management worldwide<br />

Average age of employees Report annually<br />

Number of women in management Fair and equitable representation<br />

Number of nationalities Focus on cross-cultural teams<br />

Total number of accidents 2011: LTC rate of 0.4 or less<br />

Of the people who joined <strong>Crucell</strong> in 2010, 250 were recruited through<br />

referral and the strong employer’s reputation on the labor market.<br />

We actively encourage our employees to talk to their contacts about job<br />

opportunities at <strong>Crucell</strong> or recommend suitable candidates. As talent<br />

attracts talent, this has proven to be an efficient and effective means<br />

to develop <strong>Crucell</strong>’s capabilities in specialist areas. We also see it as an<br />

indicator of employee satisfaction, the key prerequisite for achieving our<br />

ambition to become an ‘employer of choice’. For this reason, the number<br />

of ‘own recruits’ has been added to the list of People KPIs and will be<br />

reported annually. <strong>Crucell</strong> aims to maximize the number of ‘own recruits’.<br />

Another new KPI is absenteeism: the percentage of days missed from<br />

work (apart from planned leave). Our first experience with collecting<br />

www.crucell.com<br />

2015: LTC rate below 0.2<br />

Employee turnover Voluntary turnover rate no more than 10% of workforce, excluding temporary staff<br />

% employees receiving regular<br />

performance reviews<br />

> 95%<br />

Number of own recruits 1 Report annually<br />

Absenteeism 1 Set criteria in 2011<br />

1 New KPI added in 2010.<br />

Quantitative<br />

Qualitative<br />

Report annually<br />

these data in 2010 has pointed to the need to sharpen definitions,<br />

which we will do in 2011. We are interested in this parameter<br />

as a global measure of our employees’ health, well-being and<br />

job satisfaction.<br />

Voluntary employee turnover in 2010 was 12.93%. We aim to work<br />

proactively to minimize the number of people who choose to leave<br />

the company, with a target of less than 10% voluntary turnover.<br />

To achieve this, <strong>Crucell</strong> will continue to focus on creating the sort<br />

of working environment that not only inspires and empowers our<br />

employees, but also provides ample opportunities for learning<br />

and development within the organization.


<strong>Crucell</strong>’s commitment to the world – Taking responsibility<br />

Developing talent<br />

<strong>Crucell</strong> is investing heavily in the skills and competencies of its people.<br />

Our Global Human Resources (HR) team has developed a long-term<br />

strategy for people development and identified this as a key CSR priority<br />

for taking <strong>Crucell</strong> where it wants to go.<br />

Implementation of this strategy started in 2010 and great strides have<br />

been made. A Global Manager Learning & Development was appointed<br />

in May, reflecting the importance we attach to building a ‘continuous<br />

learning’ culture at <strong>Crucell</strong>. In collaboration with other key stakeholders,<br />

the Global HR team has launched two global training programs for<br />

<strong>Crucell</strong> managers at various levels. One program focuses on developing<br />

people’s project management skills, the other on helping managers to<br />

develop financial and business acumen. <strong>Crucell</strong> employees have asked<br />

for this kind of support and this dovetails with the company’s<br />

strategic goals.<br />

With a view to providing a gateway to learning and development<br />

opportunities for all <strong>Crucell</strong> employees, the Global HR department launched<br />

an online People Development Portal in July 2010. The basic launch<br />

version will be progressively enriched and expanded over the coming<br />

years. The idea is to offer our people a toolkit that will help them to reflect<br />

on their learning potential and seize opportunities for development.<br />

<strong>Crucell</strong> ran a leadership training for managers in Switzerland and the<br />

Netherlands in 2010, as part of an ongoing program established in 2008.<br />

We see a vital role in our organization for good leaders who can inspire<br />

and empower their teams of people to excel.<br />

An essential aspect of this leadership role is conducting regular<br />

performance reviews, which when done well provide people with feedback<br />

that will enable them to achieve their full potential. In 2010, about 95%<br />

of <strong>Crucell</strong> employees received regular performance reviews. Our aim<br />

is to ensure all employees receive regular performance reviews, and to<br />

increase their added value for both the employee and the company.<br />

Diversity and equal opportunity<br />

<strong>Crucell</strong> sees the value of diversity and strives to foster this through<br />

our recruitment practices and organizational structure, for example<br />

by building cross-functional and cross-site teams. Our site in the<br />

Netherlands employs people of 24 nationalities, closely followed by<br />

Switzerland with 23. This rich cultural mix fosters the cross-fertilization<br />

of ideas, as well as fun.<br />

Looking at the numbers of male and female employees in 2010, we see<br />

that <strong>Crucell</strong> has a reasonably balanced workforce in terms of gender<br />

(more than 47% females in 2010, compared with 45% in 2009). There<br />

was a substantially greater year-on-year increase (20% versus 10%)<br />

in the number of women compared with men.<br />

In our 2009 report, we noted the relatively low number of women in<br />

senior management positions as a point for attention. It is encouraging<br />

to see that the number of female employees with senior management<br />

roles increased by 45% in 2010 compared with 2009, bringing the total<br />

number to 84.<br />

<strong>Crucell</strong> is an equal-opportunity employer. We are committed to<br />

recruiting and promoting employees on the basis of talent and ability,<br />

without negative or positive discrimination on the basis of gender,<br />

race or age.<br />

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54<br />

<strong>Crucell</strong>’s commitment to the world – Taking responsibility<br />

We value both gender and ethnic diversity and accordingly act as an equal opportunity employer.<br />

The characteristics of our workforce are as follows:<br />

2010<br />

www.crucell.com<br />

China Italy Korea Netherlands Spain Sweden Switzerland UK USA Total<br />

Number of male employees 8 9 172 216 34 34 245 9 14 741<br />

Number of female employees 35 8 49 222 49 71 184 26 13 657<br />

Total number of employees 43 17 221 438 83 105 429 35 27 1,398<br />

Average age of employees 28 47 35 37 45 46 40 38 45 40<br />

Number of women in management 3 2 6 42 3 5 18 0 5 84<br />

Number of nationalities per location 1 1 4 24 2 1 23 3 7 n/a<br />

2009<br />

Number of male employees 9 10 169 181 33 43 218 6 12 681<br />

Number of female employees 41 8 50 177 40 78 151 15 7 567<br />

Total number of employees 50 18 219 358 73 121 369 21 19 1,248<br />

Average age of employees 30 46 36 36 45 45 40 40 44 40<br />

Number of women in management 1 2 5 27 3 4 14 0 2 58<br />

Number of nationalities per location 1 1 4 20 2 7 20 3 5 n/a<br />

2008<br />

Number of male employees 9 12 167 139 30 45 225 n/a 11 638<br />

Number of female employees 26 10 44 114 39 88 159 n/a 8 488<br />

Total number of employees 35 22 211 253 69 133 384 n/a 1 19 1,126<br />

Average age of employees 31 44 35 36 46 45 42 n/a 43 40<br />

Number of women in management 3 3 4 23 2 10 10 n/a 3 58<br />

Number of nationalities per location 2 1 3 19 2 4 10 n/a 5 n/a<br />

1 Not applicable, as <strong>Crucell</strong>’s UK organization was launched in October 2009.


<strong>Crucell</strong>’s commitment to the world – Taking responsibility<br />

Male/female ratio of <strong>Crucell</strong> employees in 2010<br />

53%<br />

Male<br />

Female<br />

47%<br />

Number of nationalities per <strong>Crucell</strong> office in 2010<br />

China 1<br />

Italy 1<br />

Korea 4<br />

Netherlands 24<br />

Spain 2<br />

Sweden 1<br />

Switzerland 23<br />

UK 3<br />

USA 7<br />

Health and safety<br />

<strong>Crucell</strong> invests in protecting the health, safety and well-being of our<br />

employees. This is both a moral obligation and essential for building<br />

a strong and sustainable business.<br />

For several years, <strong>Crucell</strong> has been working systematically to enhance<br />

workplace safety, focusing especially on accident prevention and<br />

preparedness. To ensure a coordinated approach, we have created the<br />

position of Global Head of Environment Health & Safety (EHS) and<br />

introduced a global EHS policy based on international standards and<br />

certification requirements. Safety officers have been appointed at our sites<br />

worldwide and sent to DuPont safety training, the gold standard in the<br />

chemicals and biopharmaceuticals industry. They take responsibility at the<br />

local level for introducing best practices and monitoring workplace safety.<br />

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56<br />

<strong>Crucell</strong>’s commitment to the world – Taking responsibility<br />

Safety improvement: a case study<br />

In January 2011, a <strong>Crucell</strong> technician had a serious accident while<br />

handling glassware in one of our production facilities. The worker<br />

was pushing a tray of bottles sprayed with antiseptic under the<br />

laminar flow hood (air-control barrier) of a sterile handling unit.<br />

The bottles toppled and fell, and the technician suffered a deep<br />

cut as he tried and failed to catch them in his gloved hands.<br />

His colleagues had received safety training and responded<br />

appropriately, most probably saving his life.<br />

If we examine the risk factors in this situation—the wet and<br />

slippery glassware, the laminar hood, the sterile gloves, the tray<br />

and handling method—we see that they are all related to Good<br />

Manufacturing Practice (GMP) in our industry. Biopharmaceutical<br />

production must be conducted under highly sterile and controlled<br />

conditions in order to ensure the safety of the people who receive<br />

our products. However, this can potentially create unsafe<br />

conditions for production workers. The challenge we face is<br />

to safeguard both our employees and products.<br />

Our safety and process experts meet this sort of challenge by<br />

analyzing the precise circumstances in which accidents occur and<br />

looking for GMP-compliant technical workarounds, or ways to<br />

avoid unsafe process steps altogether. At the same time, they focus<br />

on raising employees’ awareness of workplace risks and how to<br />

respond if an accident does occur.<br />

1 The OSHA defines the LTC as the number of accidents resulting in at least one whole<br />

shift absence, per hours worked by 100 employees in 12 months (200,000 hours).<br />

www.crucell.com<br />

One of the tasks of safety officers is to collect data on accidents,<br />

with the aim of gaining a better understanding of risk factors and how<br />

to manage them. In our 2009 CSR report, we published accident data<br />

collected independently at our five manufacturing and/or development<br />

sites (covering 90% of the workforce) but noted the limitations of these<br />

data. For example, countries used different definitions and ways<br />

of measuring accidents.<br />

In 2010, we focused on taking EHS information management to the next<br />

level by introducing a global reporting system based on harmonized<br />

criteria. Access to more detailed information, collected from our production<br />

and R&D facilities using the same definitions, will give us greater power<br />

to continuously improve safety, using a ‘plan-do-check-act’ approach.<br />

We are well on track towards this goal. A clear procedure for accident<br />

reporting, analysis and follow-up with corrective action has been<br />

introduced. An EHS Reporting Manual has been developed, local<br />

safety officers have been trained in its use and full-year data based<br />

on consistent criteria have been collected and analyzed. A reporting<br />

infrastructure has been established and is working well: local data<br />

are reported to the global EHS manager, who gives regular updates<br />

to the Chief Operating Officer (safety data on a monthly basis,<br />

other information quarterly).<br />

Accident reporting<br />

Agreeing on a consistent definition of reportable accidents was a<br />

challenge. After considerable debate, we have decided to adopt the<br />

United States’ Occupational Safety and Health Administration (OSHA)<br />

definition of lost time case rate (LTC) 1 , excluding accidents that occur<br />

on the way to or from work and excluding medical conditions (such<br />

as fainting at work). Using consistent definitions allow trends to<br />

be followed.<br />

Analysis of the LTC among <strong>Crucell</strong> employees at our five main sites over<br />

the period 2009–2010 (see graph) suggests that accident frequency has


<strong>Crucell</strong>’s commitment to the world – Taking responsibility<br />

been dropping. Whole-year LTC values<br />

decreased from 0.75 in 2009 to 0.40 in 2010.<br />

The target we have set for this KPI is to<br />

maintain or improve an LTC of 0.40 in 2011,<br />

which is the industry average. By 2015 we<br />

want to achieve a rate below 0.2.<br />

Increasing safety awareness<br />

<strong>Crucell</strong>’s approach to improving workplace<br />

safety starts with accident preparedness:<br />

anticipating accidents that could occur and<br />

making sure that people know what action<br />

to take if they do. The importance of this is<br />

highlighted by a serious accident that occurred<br />

recently in one of our production facilities<br />

(see box left).<br />

Accident frequency<br />

(in LTC values)<br />

0.75<br />

0.40<br />

2009 2010<br />

Our new reporting system provides a tool for<br />

understanding why accidents happen, so that we can take corrective<br />

action and prevent further occurrences. Ideally, we want to identify<br />

unsafe situations before any accident occurs. Reports of ‘near misses’<br />

(narrowly avoided accidents) are perhaps the most valuable information<br />

for managing risks and preventing accidents.<br />

Our accident data are classified into four groups according to the<br />

severity of their outcomes: near miss, first aid, medical treatment and<br />

fatality. On the basis of the assumed frequency of events in each<br />

category, we could expect to receive far more reports of near misses<br />

than serious accidents. Our data show the opposite pattern, suggesting<br />

that a relatively small proportion of near misses are being reported.<br />

We encourage every employee to report unsafe situations and near<br />

misses. With a view to raising the general level of safety awareness<br />

in the organization, we will hold a series of safety workshops for<br />

managers in 2011. They will be asked to act as role models and adopt<br />

a number of best practices in order to foster a culture of sustainable<br />

safety awareness.<br />

Other initiatives<br />

<strong>Crucell</strong> promotes the health and well-being of employees in other<br />

ways. Here are just a few examples of recent developments:<br />

y In Switzerland, improvements to the production line for Vivotif®,<br />

<strong>Crucell</strong>’s vaccine against typhoid fever, have made work more<br />

comfortable and pleasant for our people, as well as more efficient.<br />

y Our Spanish site has significantly improved security in order to<br />

increase the protection of our people and our products.<br />

y Free vaccination against seasonal influenza is offered to employees<br />

and their families each year, in countries where this is feasible<br />

and appropriate. In Korea, employees identified as being at risk of<br />

hepatitis A were also offered free vaccination with <strong>Crucell</strong>’s Epaxal®<br />

vaccine in 2010, while <strong>Crucell</strong>’s travel vaccines were made available<br />

to employees and their families in the Netherlands and Switzerland.<br />

Good business conduct<br />

<strong>Crucell</strong> adheres to high standards of ethics and transparency in dealing<br />

with all stakeholders. We take our legal and ethical obligations very<br />

seriously. <strong>Crucell</strong>’s Code of Conduct guides employees in the high<br />

standards of behavior expected of them and their obligation to act<br />

with integrity at all times.<br />

The Code of Conduct urges employees to report any behavior or<br />

action that may be in breach of this code. A procedure for reporting<br />

non-compliance is in place and compliance offers have been<br />

appointed worldwide.<br />

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<strong>Crucell</strong>’s commitment to the world – Taking responsibility<br />

Planet<br />

As a company dedicated to fostering the health and well-being of<br />

people worldwide, <strong>Crucell</strong> is very conscious of its responsibility to care<br />

for the planet—our shared home. We are actively working to integrate<br />

environmental awareness into our strategic decision making and<br />

routine work practices so that we can live up to this responsibility.<br />

Our aim is to maximize our productivity—and thereby our health<br />

impact—while minimizing our environmental footprint.<br />

In 2009, we defined an initial set of KPIs for measuring our progress<br />

towards this goal. We also set targets for reducing energy and water<br />

consumption, minimizing our carbon footprint and improving waste<br />

management, basing these targets on the data then available in the<br />

organization. At the same time, we pointed out the need for more<br />

comprehensive and reliable data.<br />

Table 4: Planet KPIs and targets going forward<br />

KPI Quantitative/Qualitative Target<br />

Total water use<br />

Waste water<br />

www.crucell.com<br />

With the development and implementation of the CSR Reporting<br />

Manual in 2010, we now have what we aimed for: company-wide<br />

data on relevant Planet KPIs, collected for the full calendar year using<br />

consistent criteria. This gives us a solid baseline for future reporting<br />

and target setting.<br />

Reporting methodology<br />

As targeted, the findings reported here are based on 100% data coverage<br />

for our global organization in 2010. We took a pragmatic approach<br />

to achieving this target, focusing primarily on collecting data from our<br />

five manufacturing and/or development sites, which together employ<br />

over 90% of the total workforce and account for almost all of<br />

<strong>Crucell</strong>’s environmental impact. Solid data were also obtained from<br />

a representative marketing and sales office and extrapolated to<br />

cover the remaining offices in order to calculate our carbon footprint.<br />

Relative reduction 1 of 10% from 2010 baseline by 2020<br />

Monitor and minimize<br />

Total energy use See CO2 footprint<br />

CO2 footprint Relative reduction 1 of 15% from 2010 baseline by 2020<br />

Number, sort and impact of accidents 2011: LTC rate of 0.4 or less<br />

Amount and characteristics of waste<br />

and disposal method<br />

1 Relative to workforce size expressed in full-time equivalents (FTEs).<br />

Quantitative<br />

Qualitative<br />

2015: LTC rate below 0.2<br />

Develop and/or refine waste minimization programs on all sites


<strong>Crucell</strong>’s commitment to the world – Taking responsibility<br />

Total energy consumption<br />

(in kWh, million)<br />

59.3<br />

62.7<br />

61.1<br />

88.4<br />

2007 2008 2009 2010<br />

Total water consumption<br />

(in m 3 )<br />

201,523<br />

231,834<br />

221,320<br />

312,259<br />

2007 2008 2009 2010<br />

<strong>Crucell</strong>’s marketing and sales offices were found to account for less<br />

than 1% of total CO 2 emissions, confirming the validity of the method<br />

used for data collection and the importance of focusing our Planet<br />

efforts on the five production-related sites.<br />

To safeguard the reliability of data, the managers responsible for data<br />

delivery have been trained in KPI definitions and CSR reporting rules.<br />

For example, they are instructed to report quantities and units<br />

as invoiced, without conversion. Any estimates must be indicated<br />

as such, and assumptions or algorithms must be documented.<br />

Pilot studies were conducted during 2010 to evaluate the quality<br />

of the data being collected, identify any problem areas and adapt<br />

the reporting methodology as needed. For example, the initial waste<br />

classification system was simplified in the course of the year to promote<br />

the consistency and value of reporting. We will report amounts of waste<br />

in three major categories: solid waste, special waste and recycled<br />

quantities. Waste water has been added to our KPI set.<br />

The EHS Reporting Manual has been developed progressively over the<br />

year and will continue to evolve as we learn by doing. We extend our<br />

thanks to all who have put so much time, energy and enthusiasm into<br />

this project. What they have produced, under the leadership of our<br />

global EHS director, is an indispensable tool for understanding and<br />

progressively improving <strong>Crucell</strong>’s relationship with the planet.<br />

Energy savings and safety: a dilemma<br />

A dilemma we face in our industry is that what makes sense from<br />

an environmental point of view can conflict with our responsibility<br />

to provide safe biopharmaceutical products. It seems logical to<br />

save energy by shutting down the air conditioning in our production<br />

facilities overnight or at the weekend. However, maintaining<br />

a constant and clean environment is essential for safeguarding<br />

against microbial contamination and ensuring the quality of the<br />

product. The energy gain from a temporary shutdown is outweighed<br />

by the energy that would be required to restore the correct<br />

environment and the time-consuming quality assurance tests<br />

that would be needed.<br />

Energy consumption<br />

<strong>Crucell</strong>’s global organization consumed a total of 88.4 million kilowatt<br />

hours (kWh) of energy in 2010. This represents a 44.6% increase<br />

compared to the previous year (see graph).<br />

Energy use includes electricity, natural gas, oil, and other fuels such<br />

as gasoline and diesel, all of which are converted to kWh. Electricity<br />

(from the grid) is <strong>Crucell</strong>’s primary source of energy. <strong>Crucell</strong>’s total<br />

energy consumption in 2010 was equivalent to that of approximately<br />

4,935 average households (consuming 17,906 kWh).<br />

Parallel operations in Korea account for most of the increase in total<br />

energy consumption in 2010 compared with 2009. Our new Korean<br />

manufacturing facility on the Incheon site became fully operational<br />

in validation mode in 2010, while commercial production continued<br />

at the facility on the Shingal site. The latter will be decommissioned<br />

once the Incheon facility receives regulatory approval.<br />

The Incheon vaccine plant has around twice the capacity of the<br />

Shingal facility and has been engineered for highly efficient production.<br />

Manufacturing larger volumes more efficiently translates into significant<br />

gains in eco-efficiency. That is exactly what <strong>Crucell</strong> strives for: greater<br />

output—and health impact—with lower energy use.<br />

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<strong>Crucell</strong>’s commitment to the world – Taking responsibility<br />

Higher occupancy at our sites in Switzerland and the Netherlands also<br />

played a role in the greater energy consumption.<br />

In Switzerland, total energy consumption increased by around a third in<br />

2010 versus 2009. This reflects the fact that two formerly decommissioned<br />

buildings were brought on line again in the summer to house groups<br />

working on product process development and activities related to<br />

taking our Epaxal® vaccine to the USA. Expansion of these groups is part<br />

of <strong>Crucell</strong>’s strategy for accelerating pipeline growth. This also explains<br />

rising energy use in the Netherlands, where we significantly increased<br />

our R&D capabilities and activities in 2010. An additional building was<br />

rented to accommodate the rapidly growing workforce and provide<br />

space for new laboratories.<br />

1,2 Relative to workforce size expressed in full-time equivalents (FTEs).<br />

www.crucell.com<br />

Water management<br />

<strong>Crucell</strong> has decided to measure both total water consumption and<br />

waste water.<br />

Total water consumption in 2010 was 312,259 cubic meters, which<br />

was 41.1% higher than in 2009. Water is sourced from the grid, except<br />

for Madrid, Spain, where we operate a well on our premises.<br />

In 2010 <strong>Crucell</strong> generated 156,643 cubic meters of waste water.<br />

The addition of this new parameter to our KPI set reflects the high<br />

potential we see to decrease overall water consumption by optimizing<br />

water management in our production facilities.<br />

The large increase in total water consumption during 2010 can<br />

be explained by the significant expansion of manufacturing and<br />

development operations, as discussed in the section on energy<br />

consumption. The observation that water consumption increased<br />

to a lesser extent than energy consumption might therefore reflect<br />

the success of recent efforts to improve water management,<br />

for example at facilities in Switzerland and Spain.<br />

At one of our production facilities in Switzerland, fresh water intake<br />

for plant steam generation has been cut substantially by optimizing the<br />

working of the steam and condensate system. The maximal amount<br />

of recoverable water is now being returned to the boiler. Besides saving<br />

water, this saves energy (as the recovered water requires less heating)<br />

and cuts down on water conditioning chemicals.<br />

<strong>Crucell</strong>’s production plant in Madrid installed a new system for purified<br />

water production in 2010. The old system supplied 50% purified water<br />

and 50% concentrate (water with impurities), which was used to water<br />

plants on the site. The output from the new system is 85% purified<br />

water, decreasing waste to 15%.<br />

Improving water use is one of the top-five ambitions relating to CSR<br />

that we identified in 2009. We are targeting a 10% relative reduction<br />

in water use by 2020. 1


<strong>Crucell</strong>’s commitment to the world – Taking responsibility<br />

Waste<br />

Outcomes of our waste generation analysis for the global organization<br />

in 2010 are as follows:<br />

y Solid waste: 754,420 kilograms.<br />

y Special waste: 52,995 kilograms (representing 7% of total waste).<br />

y Recycled waste: 203,596 kilograms (representing 27% of total waste).<br />

Now that we have a good overview of the amounts and types of waste<br />

generated in our global organization, as well as the disposal method,<br />

we can start to develop and implement waste minimization programs.<br />

A workshop with EHS managers was held in March 2011 to spark ideas.<br />

Packaging<br />

<strong>Crucell</strong> continuously explores options for improving packaging, especially<br />

in ways that benefit both the environment and our customers. One of the<br />

success stories is our project to deliver <strong>Crucell</strong>’s Quinvaxem® pentavalent<br />

vaccine in smaller vials, which means less raw material, less weight<br />

to be transported and more efficient use of cold chain storage (for more<br />

details see the section on responsible supply chain management).<br />

In 2010 our regulatory team set out to reduce the size of the boxes carrying<br />

two vials of Dukoral® cholera vaccine, which are considerably oversized.<br />

Smaller volumes would facilitate transport and cold storage, as well<br />

as saving packaging material. The team was disappointed to hear from<br />

the Canadian regulatory authorities that they could not carry out their<br />

plan. The information printed on the boxes must be in both English and<br />

French, and of a specified font size. These regulatory requirements—<br />

designed to promote safe use of the product—could not be met using a<br />

smaller box. This dilemma is an example of the complexity of factors that<br />

must be taken into consideration in the highly regulated vaccines industry.<br />

Carbon footprint<br />

<strong>Crucell</strong>’s carbon footprint in 2010 was just over 21,000 tonnes CO 2<br />

(21,120.61 tonnes). The carbon footprint was calculated using the<br />

Greenhouse Gas Protocol and accompanying conversion factors<br />

(to account for different energy mixes) per country. The most recent<br />

conversion factors were sourced from the UK Department for<br />

Environment, Food and Rural Affairs (DEFRA). Reducing our carbon<br />

footprint is one of the top-five CSR ambitions formulated in 2009. We<br />

are targeting a 15% relative reduction 2 from the baseline set in 2010.<br />

Planting the seed<br />

For years, <strong>Crucell</strong>’s organization in Spain has taken a creative<br />

approach to recycling plastic packaging material that would<br />

otherwise go to waste. The large plastic containers in which<br />

syringes are delivered to <strong>Crucell</strong> are ideal for re-use as seedling<br />

trays. <strong>Crucell</strong> Spain sells the boxes to a nursery for this purpose.<br />

Though this is a relatively small-scale activity, it is a good<br />

example of the kind of CSR thinking <strong>Crucell</strong> wants to promote.<br />

A large volume of plastic is recycled in this way every year.<br />

<strong>Crucell</strong> Sweden shows the same spirit with its vaccine cool-box<br />

recycling program.<br />

“ <strong>Crucell</strong> continuously explores options<br />

for improving packaging, especially in<br />

ways that benefit both the environment<br />

and our customers.”<br />

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<strong>Crucell</strong>’s commitment to the world – Taking responsibility<br />

Philanthropy<br />

Besides doing the very best we can to discover, develop, manufacture<br />

and market innovative products that protect people’s health and<br />

well-being, we look for extra ways to make a positive difference to<br />

the lives of people worldwide.<br />

For reporting purposes, we group these noncommercial efforts under<br />

the heading of ‘Philanthropy’. This is a broad category that embraces<br />

everything from community outreach projects and efforts to<br />

improve healthcare access to the sharing of scientific knowledge<br />

and participation in sector sustainability initiatives.<br />

www.crucell.com<br />

Community outreach<br />

Footprint<br />

<strong>Crucell</strong> encourages and facilitates employees’ involvement in<br />

philanthropic projects, in the belief that this benefits those who give<br />

help as well as those who receive it. This is the philosophy behind our<br />

global CSR outreach program ‘Footprint’, which gives <strong>Crucell</strong> employees<br />

an opportunity to visit disadvantaged communities where <strong>Crucell</strong> is<br />

working in partnership with local organizations to make a major<br />

difference to people’s lives.<br />

In last year’s report we introduced two of these partners: the South<br />

African Tuberculosis Vaccine Initiative (SATVI) and the nongovernmental<br />

organization (NGO) Friendship. SATVI conducts clinical trials of the<br />

tuberculosis vaccine <strong>Crucell</strong> is developing in collaboration with the Aeras<br />

Global TB Vaccine Foundation. Friendship is doing wonderful work—<br />

with <strong>Crucell</strong>’s support—to extend the reach of the government’s routine<br />

vaccination program in the remote northern districts of Bangladesh.<br />

Many children in this poor and inaccessible part of the country have<br />

been missing out on vaccinations prescribed by the national Expanded<br />

Program on Immunization (EPI).<br />

In the course of 2010, we enlarged the scope of these CSR outreach<br />

efforts to include support for the Max Foundation, a nonprofit<br />

organization that carries out small-scale projects to provide clean<br />

drinking water to communities in the southern part of Bangladesh.<br />

<strong>Crucell</strong> has so far sent three teams of <strong>Crucell</strong> volunteers to take part<br />

in these local projects and see for themselves the challenges faced<br />

by people living in the world’s poorest and most needy communities.<br />

The employees have returned to work with a new understanding of the<br />

devastating effect infectious diseases have on communities without


<strong>Crucell</strong>’s commitment to the world – Taking responsibility<br />

adequate access to childhood vaccines and clean water, as well as<br />

the importance of what they are doing in their daily work as <strong>Crucell</strong><br />

employees to give the people in these communities a future.<br />

A blog entry posted on our Global Intranet by the Footprint team<br />

during the latest field trip says it all: “We took the ambulance boat<br />

along the chars to an EPI session set up by Friendship in collaboration<br />

with local governmental agents. When we arrived there was a long<br />

queue of mothers with very young babies in their arms. And there<br />

we saw it, the babies were getting Quinvaxem®! With funding from<br />

<strong>Crucell</strong>, Friendship has set up a cold chain to enable children in these<br />

remote char areas to be immunized. Even though all these tiny babies<br />

had to cry when they were injected, we were thrilled to know that<br />

it would significantly increase their chances of growing up into<br />

healthy teenagers.”<br />

Table 5: Philanthropy KPIs and targets going forward<br />

KPI Quantitative/Qualitative Target<br />

Number of doses donated Report annually<br />

Global policy for disaster relief (donations)<br />

Support of sector sustainability initiatives Participation in DJSI 1 , CDP 2 and Transparency Benchmark to end due to delisting<br />

Continue participation in GRI 3<br />

NGO partnerships New Footprint field trips scheduled for 2011<br />

1 DJSI – Dow Jones Sustainability Indexes.<br />

2 CDP – Carbon Disclosure Project.<br />

3 GRI – Global Reporting Initiative.<br />

Quantitative<br />

Qualitative<br />

“ I went into this experience really not having<br />

a clue what to expect… and it was amazing!<br />

The cliché term of a ‘once in a lifetime<br />

opportunity’ is really the only way I can<br />

describe my experience in Bangladesh.”<br />

Further strengthen current NGO partnerships<br />

Explore potential new partnerships<br />

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<strong>Crucell</strong>’s commitment to the world – Taking responsibility<br />

Whenever possible, the Footprint volunteers have provided practical help<br />

during these field trips, for example by painting the children’s ward of<br />

a hospital in South Africa or helping to dig a well in Bangladesh. They<br />

arrived with suitcases laden with small gifts—from coloring sets, jewelry,<br />

sweets and toys to large boxes of disinfectant solutions and plasters—<br />

which were received like treasures by excited children and parents.<br />

What the volunteers took away with them was equally treasured.<br />

One field trip member points out: “I went into this experience really<br />

not having a clue what to expect… and it was amazing! The cliché term<br />

of a ‘once in a lifetime opportunity’ is really the only way I can describe<br />

my experience in Bangladesh.”<br />

www.crucell.com<br />

All <strong>Crucell</strong> employees can apply to take part in the Footprint field trips,<br />

and teams are carefully chosen to include people with different job<br />

functions and from different countries. They share their experiences<br />

with their colleagues on their return, thereby creating a ripple-on<br />

effect that is helping to raise the overall level of CSR awareness and<br />

enthusiasm in our organization.<br />

Community outreach in Korea<br />

In 2010, our Korean colleagues continued their efforts to make life<br />

a bit brighter for children taking part in the ‘Dream Start’ program,<br />

a government health and welfare program targeting children from<br />

low-income families.<br />

Many of these children live in urban squats and lack access to even<br />

basic amenities like hot water, which means they are often teased and<br />

rejected at school. In 2009, <strong>Crucell</strong> volunteers were inspired to organize<br />

a ‘bath day’, combining a trip to the public baths with games, presents<br />

and a barbeque. This successful formula was repeated again in February<br />

2010, providing a day of warmth and fun in the middle of winter.<br />

Around 20 <strong>Crucell</strong> employees and 25 Dream Start children participated.<br />

In the heat and humidity of July 2010, <strong>Crucell</strong> volunteers took the Dream<br />

Start collaboration a step further by organizing a ‘clean-up day’ for two<br />

families living in Seongnam-si, one of the poorest neighborhoods in<br />

the city. The teams put up fresh wallpaper, renovated the floors and<br />

cleaned both houses. “It was a great joy to see the kids playing around<br />

in a clean and tidy home,” was how one volunteer summed up the day.<br />

“What my colleagues did might seem like a small contribution to<br />

improving the lives of people in this squalid area, but it is a great start<br />

and I am very proud of all of them,” said Sang Jeom Ahn, General<br />

Manager of <strong>Crucell</strong> Korea. This example highlights the importance<br />

of local as well as global CSR initiatives.


<strong>Crucell</strong>’s commitment to the world – Taking responsibility<br />

Runa Khan, Executive Director Friendship<br />

“Let me tell you a true story… On char Bhatiborial under Sundarganj,<br />

Gaibandha, a young girl is already a mother at the age of 16. Khadija<br />

Begum was 15 when she married Shomizuddin. She had never<br />

received medical treatment or visited a doctor and had not received<br />

her tetanus injection (TT). She was not even aware that adolescent<br />

girls should receive three doses of TT under the Government<br />

Expanded Program on Immunization (EPI) to minimize the risk<br />

of infection during delivery.<br />

To her knowledge, the government has never held an EPI session at<br />

Bhatiborial and she does not recall a health worker ever visiting the<br />

char for health education. The closest family welfare center was<br />

approximately 3 hours away. To get there, she would have to walk<br />

2 kilometers over sand, wait for a boat that may come only twice<br />

a week (and not even at a fixed time), and then take a van ride,<br />

making her journey both tiring and costly.<br />

In May 2010, when she was about 4 months pregnant, a team<br />

showed up on her island—not only to conduct an EPI session on the<br />

char itself but also to inform and educate the community through<br />

household visits and group meetings.<br />

Khadija’s son, Mohammad Khairul, is now 5 months old and under<br />

the Friendship–<strong>Crucell</strong> EPI Support Program has received his BCG<br />

(tuberculosis), Quinvaxem® 1 and 2 (pertussis, diphtheria, hepatitis B,<br />

tetanus and Haemophilus influenzae type B), and OPV 1 and 2 (polio)<br />

vaccine doses. More importantly, Khadija is aware of when his next<br />

dose is due and will be bringing him to the center for it. If by chance<br />

she forgets, she is secure in the knowledge that a Friendship health<br />

worker will come by to remind her.<br />

Khadija Begum’s story is one of thousands. This outcome is made<br />

possible by the joint efforts of <strong>Crucell</strong> and Friendship.”<br />

NGO partnerships<br />

<strong>Crucell</strong> and Friendship<br />

<strong>Crucell</strong>’s partnership with Friendship is a good example of how we<br />

work with NGOs to overcome barriers to healthcare access in developing<br />

countries. <strong>Crucell</strong> provides funding and scientific expertise, as well as<br />

practical support, to enable organizations that understand the local<br />

needs, culture and healthcare challenges to develop targeted solutions.<br />

Friendship is a value-based national organization dedicated to<br />

improving the lives of people living in the remote riverbank and char<br />

areas of northern Bangladesh. The chars (nomad islands) are isolated<br />

from the mainland in terms of physical distance, access to healthcare,<br />

and other basic resources. Rates of morbidity and mortality due to<br />

vaccine-preventable diseases are high, especially among children.<br />

The partnership between <strong>Crucell</strong> and Friendship is successfully tackling<br />

this problem by facilitating the government EPI program, which aims<br />

to deliver the WHO-recommended schedule of vaccines to all children<br />

under five. We focus on logistics and infrastructure, providing a riverbased<br />

health service system with floating hospitals, satellite clinics and<br />

community medics. The Friendship–<strong>Crucell</strong> program has purchased<br />

three boats, recruited staff who help the government healthcare<br />

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<strong>Crucell</strong>’s commitment to the world – Taking responsibility<br />

<strong>Crucell</strong> employees help locals dig a well in Bangladesh.<br />

Steven and Joke Le Poole, Directors of the Max Foundation<br />

“Both <strong>Crucell</strong> and the Max Foundation want to reduce child<br />

mortality. We use our privileged position to fund projects that<br />

provide high health value per euro spent. We are especially<br />

impressed that <strong>Crucell</strong> has the vision to support our<br />

non-pharmaceutical approach based on wells, latrines and<br />

hygiene training. We really value the cooperation with <strong>Crucell</strong><br />

as far too many children still die from water-borne infectious<br />

diseases. Together we can make the difference. <strong>Crucell</strong> not only<br />

supports us but also recently visited the project in Bangladesh<br />

where they could see first-hand the major impact their<br />

program had on the local community.”<br />

www.crucell.com<br />

workers to deliver the regular vaccine schedule and monitor delivery,<br />

trained community medics and leaders, and conducted community<br />

meetings to increase awareness about vaccine-preventable diseases<br />

and the importance of the EPI program.<br />

These efforts have greatly increased the rate of vaccination coverage<br />

in the target region. From May 2010, when the Friendship–<strong>Crucell</strong> EPI<br />

Support Program was inaugurated, to the end of the year, all but 50<br />

of the 704 planned EPI sessions were held; problems such as extreme<br />

rains account for the missed sessions. A total of 1809 babies received<br />

Quinvaxem® doses at 6, 10 and 14 weeks of age, in accordance with<br />

the EPI schedule. This gives them protection against five common<br />

and potentially deadly childhood infections. The infants were also<br />

vaccinated against tuberculosis, polio and measles, and received<br />

vitamin A, which reduces child mortality and the risk of river blindness.<br />

<strong>Crucell</strong> and the Max Foundation<br />

<strong>Crucell</strong> is proud to be supporting the Max Foundation in its work<br />

to save children’s lives through community-based water projects in<br />

Bangladesh. Since its foundation in 2004, over 200,000 people have<br />

been supplied with clean drinking water and sanitation. The 1,000th<br />

project was completed in March 2011.<br />

The foundation was set up by Dutch couple Steven and Joke Le Poole<br />

after their 8-month old son Max died from a rare viral infection.<br />

“They wanted to turn their loss into something positive,” says <strong>Crucell</strong>’s<br />

Chief Strategy Officer Arthur Lahr, who brought the Max Foundation<br />

to the attention of his Management Committee colleagues.<br />

For <strong>Crucell</strong>, partnering this NGO is a logical choice: “It is gratifying<br />

to be able to support a nonprofit organization that shares our drive to<br />

improve children’s lives. Immunization and clean water are the most<br />

cost-effective contributors to child health,” says CEO Ronald Brus.<br />

Every euro donated to the foundation goes towards microsanitation<br />

projects.


<strong>Crucell</strong>’s commitment to the world – Taking responsibility<br />

Bringing color to children’s lives<br />

<strong>Crucell</strong> employees gave generously to good causes in 2010. Here are<br />

two examples we particularly like.<br />

y Child ambassadors for Stichting Kinderpostzegels<br />

(Foundation for Childrens’ Stamps) sold a record number of<br />

stamps and cards during a lunchtime visit to <strong>Crucell</strong>’s Dutch<br />

site in October 2010, raising over €1,400 from employees.<br />

<strong>Crucell</strong> management doubled their contribution.<br />

y Employees in Switzerland donated money to purchase over 200<br />

coloring sets for the children in Bangladesh. The initiative was sparked<br />

by a presentation on Friendship during a general staff meeting.<br />

Access to healthcare<br />

<strong>Crucell</strong>’s work with Friendship is an example of a targeted community<br />

initiative to remove barriers to healthcare access. <strong>Crucell</strong> also works<br />

on this issue at the international and global level, through close and<br />

continuous engagement with a wide range of organizations. Here are<br />

the 2010 highlights.<br />

<strong>Crucell</strong> supported the International Pediatric Association (IPA) in its<br />

efforts to drive EPI development by empowering its members to take<br />

on an advocacy role. The IPA believes that pediatricians have a crucial<br />

role to play in advising their governments on the best vaccines and<br />

implementation strategies. <strong>Crucell</strong> gave the IPA an unrestricted grant<br />

to run an advocacy workshop during its latest international congress,<br />

held early August in Johannesburg, South Africa. <strong>Crucell</strong> also provided<br />

a follow-up grant to help in-country implementation of the best<br />

advocacy proposals.<br />

At the same conference, <strong>Crucell</strong> supported educational activities<br />

through the IPA. These focused on innovative strategies for simplifying<br />

vaccine delivery, which are seen to be key for reaching neglected<br />

populations. <strong>Crucell</strong>’s collaboration with the nonprofit organization<br />

PATH to make Quinvaxem® available in a Uniject device underlines<br />

our commitment to this type of innovation (see page 44).<br />

In November 2010, the launch of a global Coalition Against Typhoid<br />

(CaT) was announced by the Sabin Vaccine Institute in Washington,<br />

DC, which will serve as the secretariat. <strong>Crucell</strong> played a significant role<br />

in bringing together this worldwide collaboration of stakeholders in<br />

the field of typhoid fever. “Despite the availability of low-cost vaccines<br />

against typhoid and a WHO Strategic Advisory Group of Experts<br />

recommendation for their use, typhoid fever vaccination has been a<br />

low priority for many countries, including those most impacted by the<br />

disease,” said Dr Christopher Nelson, Director of the CaT secretariat.<br />

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<strong>Crucell</strong>’s commitment to the world – Taking responsibility<br />

<strong>Crucell</strong> was the vaccine industry representative (for the third successive<br />

year) on the formal advisory Program & Policy Committee of the GAVI<br />

Alliance, a public-private partnership with the mission to improve access<br />

to vaccines in the world’s poorest countries. In 2010, the committee<br />

played an important role in the development of a new GAVI Alliance<br />

strategy and business plan for the 2011–2015 period. Other key issues<br />

were how to prioritize new vaccine applications in order to bridge<br />

a funding gap, a strategy for resources mobilization, and health<br />

system strengthening.<br />

<strong>Crucell</strong>’s innovative work with international organizations dedicated<br />

to immunization program development paved the way for our CEO<br />

Ronald Brus to be nominated by the vaccine industry in industrialized<br />

countries to represent the constituency on the Board of the<br />

GAVI Alliance.<br />

1 Including PERCIVIA events.<br />

www.crucell.com<br />

<strong>Crucell</strong> also worked on healthcare access improvements as a member of:<br />

y the IFPMA Biologicals & Vaccines Committee, which contributes to<br />

discussions with the World Health Organization (WHO) on general<br />

vaccination policies;<br />

y the advisory group for Project Optimize, a WHO/PATH collaboration<br />

aimed at developing innovative delivery systems to ensure that<br />

vaccines get to the right place, at the right time, in the right condition;<br />

y the European Vaccine Manufacturers (EVM), part of the European<br />

Federation of Pharmaceutical Industries and Associations, which is<br />

committed to working in partnership with EU institutions to support<br />

vaccine policy development and promote vaccine innovation.<br />

Vaccine donations<br />

In 2010, <strong>Crucell</strong> donated 321,000 doses of MoRu-Viraten® vaccine<br />

against measles and rubella to Unicef to assist earthquake victims<br />

in Haiti. The vaccines were shipped in August 2010. The donation<br />

was made as part of the emergency aid campaign organized by<br />

the International Federation of Pharmaceutical Manufacturers &<br />

Associations (IFPMA), of which <strong>Crucell</strong> is a member.<br />

Contributing to science<br />

<strong>Crucell</strong> contributes to the advancement of science and healthcare<br />

by sharing knowledge and expertise. In 2010, <strong>Crucell</strong> participated in 58 1<br />

international conferences and many more seminars, informal meetings<br />

and media presentations.<br />

Our leading scientists gave over 25 1 public lectures and presentations to<br />

their peers on a wide range of topics, including innovative technologies<br />

for vaccine and antibody discovery, design and manufacturing; novel<br />

approaches to fighting major infectious diseases; and results emerging<br />

from <strong>Crucell</strong>’s research and development programs.


<strong>Crucell</strong>’s commitment to the world – Taking responsibility<br />

In 2010, <strong>Crucell</strong> once again sponsored events and symposia to facilitate<br />

information exchange among key opinion leaders and promote scientific<br />

development. One example is the Seventh Respiratory Syncytial Virus<br />

Symposium held in Rotterdam, the Netherlands, in December 2010.<br />

As well as sponsoring this meeting of leading RSV investigators, <strong>Crucell</strong>’s<br />

Innovation and Discovery Laboratories presented two researchers<br />

with a <strong>Crucell</strong> Innovation Award in recognition of their outstanding<br />

work in this field.<br />

A total of 15 scientific papers by <strong>Crucell</strong> researchers were published<br />

in peer-reviewed journals in 2010.<br />

Sector sustainability initiatives<br />

In 2010, <strong>Crucell</strong> participated in a number of initiatives that provide<br />

an objective measure of <strong>corporate</strong> performance on sustainability<br />

issues, including the Dow Jones Sustainability Index (DJSI), the Carbon<br />

Disclosure Project (CDP) and the Transparantiebenchmark (Transparency<br />

Benchmark), an index published by the Dutch Ministry of Economic<br />

Affairs, Innovation and Agriculture. See page 50.<br />

<strong>Crucell</strong> remains committed to making sustainability issues an integral<br />

part of strategic decision-making, with the aim of maximizing<br />

our contribution to a better world.<br />

Conclusion<br />

Corporate social responsibility (CSR) is an integral part of <strong>Crucell</strong>’s<br />

mission to conduct good business, for the good of humanity.<br />

<strong>Crucell</strong> is committed to continuous development of its approach<br />

to CSR reporting and the engagement of stakeholders in dialogue<br />

about sustainability issues. We are again pleased to have taken<br />

important steps in this direction during 2010.<br />

<strong>Crucell</strong> welcomes feedback on this report or any issues related<br />

to our CSR activities. Your opinion matters to us. Reactions can<br />

be sent to csr@crucell.com.<br />

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<strong>Crucell</strong>’s commitment to the world – Taking responsibility<br />

Appendix<br />

Performance overview<br />

What we said (2009 target setting) What we did (2010 actions) Where we are (2010 outcomes) Where we are going (2010 target setting)<br />

KPI: Prevention of illness and deaths<br />

Continuous improvement<br />

Report annually<br />

Number of pipeline products<br />

1 PSCI – Pharmaceutical Supply Chain Initiative.<br />

2 GRI – Global Reporting Initiative.<br />

3 DJSI – Dow Jones Sustainability Indexes.<br />

www.crucell.com<br />

Maintained similar levels of prevention<br />

compared with 2009<br />

Report annually Expanded and advanced our pipeline<br />

of investigational vaccines and antibodies<br />

Animal welfare<br />

Continuous improvement 3Rs<br />

(Reduce, Refine, Replace)<br />

R&D expenses<br />

Continued to apply 3R principles to animal<br />

testing for preclinical R&D<br />

Report annually Reported in press release (2010 financial results,<br />

February 7, 2011) and in this CSR report<br />

CSR information management improvement<br />

In 2010 roll out Reporting Manual<br />

In 2010 report with 100%<br />

company coverage<br />

In 2011 set action plans<br />

(quantitative targets)<br />

Responsible supply chain<br />

In 2010 in<strong>corporate</strong> PSCI 1 principles<br />

into procurement policy<br />

In 2011 train all relevant<br />

employees<br />

In 2011 100% supplier coverage<br />

& monitoring<br />

Transparency objectives<br />

GRI 2 A+ level CSR reporting in 2015<br />

Remain in DJSI 3<br />

In 2010 improve CSR web page<br />

Developed, finetuned and rolled out<br />

Reporting Manual<br />

Collected and analyzed company-wide data<br />

Produced Supplier Code of Conduct based<br />

on PSCI principles and incorporating<br />

<strong>Crucell</strong>-specific CSR ambitions and guidelines<br />

Created vendor assessment questionnaire<br />

to survey key suppliers<br />

Devised strategy and program for<br />

<strong>Crucell</strong> ‘supplier days’ (CSR workshops)<br />

Made substantial further progress with CSR<br />

reporting and performance, as measured by<br />

a range of external benchmarks (DJSI, CDP 4 ,<br />

GRI and Dutch ‘Transparency Benchmark’ 5 )<br />

Improved CSR page on <strong>Crucell</strong> website<br />

4 CDP – Carbon Disclosure Project.<br />

5 Transparantiebenchmark (Transparency<br />

Benchmark), an index published by the Dutch<br />

Ministry of Economic Affairs, Innovation<br />

and Agriculture.<br />

Prevented more than 3.6 million cases<br />

of infectious disease and 809,823 deaths<br />

<strong>Crucell</strong> has 12 candidate products in its<br />

R&D pipeline<br />

Essential safety studies are conducted<br />

to minimal extent required by law and in<br />

accordance with highest international standards<br />

Annual R&D expenses €100 mln in 2010 versus<br />

€70.2 mln in 2009<br />

A system for consistent and comprehensive<br />

reporting is in place<br />

Data coverage is 100%<br />

Areas where further training or reporting<br />

incentives are needed have been identified<br />

Strategy and tools are in place to engage<br />

key suppliers in constructive dialogue about<br />

<strong>Crucell</strong>’s CSR guidelines and ambitions<br />

Self-declared GRI level C; DJSI listing for second<br />

successive year; ‘Transparency Benchmark’<br />

score 96/200<br />

Web page outlines <strong>Crucell</strong>’s CSR ambition<br />

and strategy, and provides links for more<br />

information/contact<br />

Quantitative<br />

Qualitative<br />

Continuous improvement<br />

Report annually<br />

Report annually<br />

Continuous improvement 3Rs<br />

Report annually<br />

2011: Set action plans and set quantitative<br />

targets for environment, health and safety<br />

(EHS) indicators<br />

In 2011: train all relevant employees in<br />

responsible supply chain management<br />

In 2011: 80% of top 100 vendors to sign<br />

Supplier Code of Conduct (CSR declaration)<br />

and take part in CSR assessment<br />

Beyond 2011: full coverage & monitoring<br />

of supplier target group<br />

Hold supplier day with focus on CSR<br />

in three countries in 2011<br />

2011: Further improve CSR web page and<br />

continue to develop reporting practices<br />

2015: GRI A rating


<strong>Crucell</strong>’s commitment to the world – Taking responsibility – Appendix<br />

People overview<br />

What we said (2009 target setting) What we did (2010 actions) Where we are (2010 outcomes) Where we are going (2010 target setting)<br />

Number of employees by gender<br />

Formulate target in 2010 Achieved 100% data coverage<br />

and formulated target<br />

Average age of employees<br />

Report annually Achieved 100% data collection<br />

and formulated target<br />

Number of women in management<br />

Formulate target in 2010 Achieved 100% data collection<br />

and formulated target<br />

Number of nationalities<br />

Formulate target in 2010 Achieved 100% data collection<br />

and formulated target<br />

Total number of accidents<br />

Formulate target in 2010 Defined reporting criteria, achieved 100%<br />

data collection and formulated target<br />

Employee turnover<br />

Formulate target in 2010 Achieved 100% data collection, refined KPI<br />

definition and formulated target<br />

Strong and successful recruitment drive<br />

Learning & development (L&D) identified by<br />

global Human Resources department as key<br />

CSR priority; global L&D manager appointed<br />

and multiple L&D initiatives launched<br />

Percentage of employees receiving regular performance reviews<br />

Formulate target in 2010 Achieved 100% data collection and<br />

formulated target<br />

Added two new KPIs to initial set: Number of own recruits*<br />

Absenteeism*<br />

1 Excluding 31 insourced staff in China.<br />

2 US Occupational Safety and Health Administration (OSHA) definition.<br />

Quantitative<br />

Qualitative<br />

Total workforce 1,398 1<br />

(12% increase from 2009); ~47% women<br />

Average age 40 years Report annually<br />

84 women in senior management positions,<br />

45% increase versus 2009<br />

Teams show high cultural diversity, particularly<br />

in the Netherlands and Switzerland<br />

Continue focus on equal-opportunity<br />

human resource management worldwide<br />

Fair and equitable representation<br />

Focus on cross-cultural teams<br />

Lost time case (LTC) rate 2 of 0.40 2011: LTC rate of 0.4 or less<br />

2015: LTC rate below 0.2<br />

Voluntary turnover in 2010 was 12.93% Voluntary turnover rate no more than 10%<br />

of workforce, excluding temporary staff<br />

~95% > 95%<br />

250 new employees in 2010 were recruited<br />

by referral<br />

Wide variation in data across sites, suggesting<br />

need to sharpen definition of this new KPI<br />

Report annually<br />

Set criteria in 2011<br />

Report annually<br />

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72<br />

<strong>Crucell</strong>’s commitment to the world – Taking responsibility – Appendix<br />

Planet overview<br />

What we said (2009 target setting) What we did (2010 actions) Where we are (2010 outcomes) Where we are going (2010 target setting)<br />

Total water use<br />

Relative reduction 1 of 10% by 2020<br />

In 2010 achieve 100% coverage<br />

(i.e. baseline)<br />

Total energy use<br />

See CO2 footprint<br />

In 2010 achieve 100% coverage<br />

CO2 footprint<br />

Relative reduction 1 of 15% by 2020<br />

In 2010 set baseline<br />

In 2011 set action plans<br />

Number, sort and impact of accidents<br />

www.crucell.com<br />

Achieved significant water savings by installing<br />

a new purified water generation plant in Spain<br />

and improving steam boiler operations in a<br />

Swiss facility<br />

Initiated full operational testing at new Korean<br />

facility in addition to commercial operations<br />

at old site and increased activity at two<br />

Swiss facilities, leading to overall increase<br />

in water consumption<br />

Achieved 100% data coverage. Waste<br />

water was monitored and reported as an<br />

additional parameter<br />

Increased operations in Korea and Switzerland,<br />

leading to overall increase in energy<br />

consumption (see ‘water use’)<br />

The carbon footprint was calculated using the<br />

Greenhouse Gas Protocol and latest conversion<br />

factors sourced from the UK Department for<br />

Environment, Food and Rural Affairs (DEFRA)<br />

Formulate target in 2010 Defined reporting criteria, achieved 100%<br />

data collection and formulated target<br />

Amount and characteristics of waste and disposal method<br />

Implement waste minimization<br />

programs on all sites<br />

System for global data collection and analysis<br />

developed, piloted and refined; 2010 baseline<br />

established; recycling initiatives mapped<br />

Plan drawn up for workshop early 2011 to<br />

share best practices and develop waste<br />

minimization programs<br />

1 Relative to workforce size expressed in full-time equivalents (FTEs).<br />

Quantitative<br />

Qualitative<br />

312,259 m 3 (41.1% increase versus 2009<br />

due to operational increases)<br />

156,643 m 3 of waste water<br />

Total energy use: 88.4 million kWh<br />

(44.6% increase versus 2009 due to operational<br />

increases)<br />

Relative reduction 1 of 10% from 2010<br />

baseline by 2020<br />

Monitor and minimize waste water<br />

See CO2 footprint<br />

21,120.61 tonnes CO2 Relative reduction 1 of 15% from 2010<br />

baseline by 2020<br />

Lost time case (LTC) rate 2 of 0.40 2011: LTC rate of 0.4 or less<br />

2015: LTC rate below 0.2<br />

Solid waste: 754,420 kg<br />

Special waste: 52,995 kg (7% of total waste)<br />

Recycled waste: 203,596 kg (27% of total waste)<br />

Develop and/or refine waste minimization<br />

programs on all sites


<strong>Crucell</strong>’s commitment to the world – Taking responsibility – Appendix<br />

Philanthropy overview<br />

What we said (2009 target setting) What we did (2010 actions) Where we are (2010 outcomes) Where we are going (2010 target setting)<br />

Number of doses donated<br />

Report annually Donated 321,000 doses of MoRu-Viraten®<br />

vaccine against measles and rubella to Unicef<br />

to assist earthquake victims in Haiti<br />

Support of sector sustainability initiatives<br />

Further <strong>Crucell</strong> involvement Participated in a range of initiatives measuring<br />

sustainability and CSR transparency: DJSI 1 ,<br />

CDP 2 , GRI 3 and ‘Transparency Benchmark’ 4<br />

NGO partnerships<br />

Liaise with key NGOs and<br />

evaluate partnership yearly<br />

Conducted two Footprint field trips to<br />

Bangladesh and planned a third trip which<br />

was held early in 2011<br />

Strengthened and expanded partnerships<br />

with NGOs<br />

Evaluated partnerships<br />

1 DJSI – Dow Jones Sustainability indexes.<br />

2 CDP – Carbon Disclosure Project.<br />

3 GRI – Global Reporting Initiative.<br />

4 Transparantiebenchmark (Transparency Benchmark),<br />

an index published by the Dutch Ministry of Economic Affairs,<br />

Innovation and Agriculture.<br />

Quantitative<br />

Qualitative<br />

321,000 donated doses of MoRu-Viraten®<br />

vaccine were shipped in August 2010<br />

Self-declared GRI level C; DJSI listing<br />

for second successive year<br />

‘Transparency Benchmark’ score 96/200<br />

Participation in CDP<br />

Strong employee involvement in and<br />

support for community outreach activities<br />

<strong>Crucell</strong>–Friendship partnership is highly<br />

successful in helping Bangladeshi<br />

government to improve immunization<br />

coverage in remote areas<br />

In partnership with the Max Foundation<br />

(new partner in 2010) <strong>Crucell</strong> is supporting<br />

microsanitation projects in Bangladesh<br />

Report annually<br />

Global policy for disaster relief (donations)<br />

Participation in DJSI, CDP and Transparency<br />

Benchmark to end due to delisting<br />

Continue participation in GRI<br />

New Footprint fieldtrips scheduled for 2011<br />

Further strengthen current NGO partnerships<br />

Explore potential new partnerships<br />

73


74<br />

<strong>Crucell</strong>’s commitment to the world – Taking responsibility<br />

Field trips<br />

Impression photo’s taken by <strong>Crucell</strong> employees during Footprint<br />

field trips, <strong>Crucell</strong>’s CSR outreach program.<br />

www.crucell.com


<strong>Crucell</strong>’s commitment to the world – Taking responsibility<br />

75


www.crucell.com<br />

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www.crucell.com<br />

Newtonweg 1<br />

2333 CP Leiden<br />

The Netherlands<br />

Tel: +31(0) 71 519 94 00<br />

Fax: +31(0) 71 519 98 00<br />

communications@crucell.com

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