Dear Shareholders FY15 has been a year of transformation - broadening horizons toexplore and conquer new avenues of growth. The theme Rs.Opening up to newpossibilitiesRs. echoes this need for constant reinvention and adaptation to delivergame-changing solutions and providing superior value to all stakeholders. TAKE's expertisein the niche domains it operations in specifically Life Sciences (LS) and Supply ChainManagement (SCM) have been validated year on year by industry peers and clients alike. Ithas been our conscious effort to build on this position through the consolidation andcontinuous innovation of our businesses to meet changing industry requirements.
As outlined last year your Company studied current and emergent market trends. On thestrength of the considerable intelligence gathered TAKE made the strategic decision oflimiting its SCM activities to profitable segments while capitalizing on the growthpotential of the LS industry and its USD 1.23 trillion Pharma & USD 289 billionBiotech markets*. Recognizing the need in these markets to foster innovation andcollaboration across the Pharma and Biotech R&D value chain your Company launchedNavitas - the pure-play Life Sciences brand. Navitas stands as an expert navigatoroffering advice solutions and services in clinical regulatory safety and contentmanagement areas to clients of multiple sizes and complexities.
In an effort to stay in step with new and evolving concepts in healthcare and clinicalresearch TAKE Innovations Inc. has been created as an incubator to facilitate innovationand IP creation. Through this your Company has strategically associated itself with anumber of innovative companies and ideas. One such company focuses on a portfolio ofreal-time and predictive data analytics that enable US based hospitals and ambulatory careproviders to improve the quality of patient care and outcomes achieve their financialgoals and successfully transition to performance- based and risk-sharing payment modelsfrom the conventional fee-for-service models. We are also keenly focused on piloting anddeveloping several use cases involving large volumes of unstructured data ingestionprocessing and analysis and leveraging algorithms and mathematical models in order to beable to predict outcomes. We have been looking into enhancing the benefit-risk evaluationand analysis of marketed drugs and supplement the safety and efficacy profiles of a drugwith the effectiveness data obtained from real world evidence based off on consumerhealthcare conversations. Our initial pilot efforts are encouraging and we continue tobelieve that the post marketing surveillance of spontaneous reports from safety databasescould be effectively supplemented with analysis and insights from observational healthcarefindings from patients and healthcare professionals leading to a better understanding ofmedicinal products.
These changing dynamics among others have been contributing factors to a financiallyhealthy FY15. While the total revenue for the year was INR 7387 million a 10.1% declineover FY 2014 due to a divestment in the SCM business the Net Profit for the periodregistered a 20.5% increase over the last year at INR 699 million with Q4 FY15 beingTAKE's best quarter yet.
The cornerstone of our strategy has been to deliver higher EBITDA and consequentlygreater value to our shareholders. Our realignment of businesses to this objective hasreaped impressive results.
Developments in the Life Sciences industry have created abundant possibilities thatyour Company is poised to capitalize on in the coming years. LS companies are not simplylooking for novel health solutions any longer; they are changing their way of business tomake intelligent use of technology and data. Life Sciences R&D spending is projectedto grow 2.4 % per year from 2013 to 2020 reaching $162 billion.* Your Company hasidentified and is poised to extract best value from these opportunities.
In an era of transparency collaboration and continuously transforming regulatorystandards there is a greater need for a well-informed and industry-ready workforce toenable better healthcare for the global patient population. To facilitate the creation ofsuch a workforce your Company launched TAKE Academy of Life Science and Leadership(TALL). With the overarching objective of addressing the skill and knowledge gap in theLife Sciences industry TALL will cater to its talent needs by working to enhance theproficiency of the existing workforce. This unique venture involves innovative teachingmethodologies in physical and virtual classrooms to impart skills as well asself-empowerment.
Patents and Product Enhancements
A pioneer in providing transformational solutions in the Life Sciences domain yourCompany added another feather to its cap with the awarding of a patent by the UnitedStates Patent and Trademark Office (USPTO) for its "Method for Optimizing ClinicalData Standardization". This process leverages TAKE SolutionsRs. Clinical Acceleratorsto reduce the time taken to standardize clinical trial data by over 50% (when compared tostandardization without the accelerators) thus reducing time to market.
Your Company's regulatory compliant document management & e-submissions productsuite PharmaReady received an upgrade with the launch of its latest version PharmaReady6.0. With various modules for the Life Sciences industry that can easily fit into a LSRegulatory Information Management (RIM) framework PharmaReady 6.0 enables clients toseamlessly navigate processes of the entire regulatory document management life-cycle.
Your Company's unique HR practices have received recognition and appreciation yet againat prestigious platforms like the World HRD Congress and AsiaRs.s Best Employer Awards.With 16 and 14 award wins at each event TAKE's commitment towards being an exemplaryemployer and developing a well-rounded work force has received stronger validation witheach passing year.
To steer your Company towards the direction of growth and progress in these times ofchange and growth considerable investment has been made in building our people strengthacross levels and geographies. Towards this Ms. Uma Ratnam Krishnan has been appointed asan Independent Director. With 27 years of diverse experience in the financial sector Ms.Krishnan brings with her a deep understanding of customers and markets. Her invaluableindustry experience coupled with executive leadership will be a tremendous value additionto the Board.
Also with the launch of Navitas your Company is poised to cement its position as adomain centric enabler in the complex and constantly evolving LS environment. Investing toenable change an Advisory Board of veteran industry experts and pioneers has beencreated:
Steve Arlington: He has spent over 35 years in the pharmaceutical industryhaving worked for Smith Kline and French (now part of GlaxoSmithKline) and Unilever. Hismost recent role was as Head of PWCRs.s Life Science Consulting Practice
Bruce Fadem: He has spent over 20 years in the pharmaceutical industryhaving retired as CIO for Wyeth in late 2005
Graham Higson: He has spent over 35 years in the pharmaceutical industryhaving held Senior Executive roles within Regulatory Affairs at GE HealthcareAstraZeneca and Pfizer
Demi Lappas: He is a pharmaceutical veteran having served as a CIO forWarner-Lambert Pharmacia and Enzon Pharmaceuticals
The Way Forward
It is encouraging to continue the positivity of our performance witnessed early inFY15 ending the year with a landmark fourth quarter performance. This stands testimony toour clientsRs. satisfaction proven customer-centric approach and global deliverycapability. We will continue to streamline our businesses to improve profitability andincrease our investment in understanding the best market opportunities and clientsRs.needs. This will enable us to achieve a strong position in the LS and SCM businesses. Aswe enter the new financial year FY16 we will further bolster our experience in thesesegments and accelerate our growth year-on-year.
We take this opportunity to express our heartfelt gratitude to you our shareholderspartners and customers whose confidence support and patronage we value immensely. Theculture at TAKE is one strongly founded on an aspiration to be the best; a value imbibedin every employee setting TAKE Solutions apart. Our sincere thanks to all employees whohave been instrumental in our success with their steadfast loyalty and hard workespecially during periods of transition. We also extend our gratitude to our ChairmanIndependent Directors Advisory Board Banks and Suppliers. We are excited by the growthwitnessed from exploring a world of opportunities this year. We look forward to yourcontinued support as we carry and build on this success in the coming years.
|Srinivasan H R ||Ram Yeleswarapu |
|Vice Chairman & Managing Director ||President & Chief Executive Officer |