Today almost all the biopharmaceutical companies have recognised that the research anddevelopment cost has been rising exponentially while the productivity of this workmeasured by the number of new drugs approved each year has remained low. To resolve thisproblem most of the companies have taken major initiatives including changing theirR&D strategies and focuses.
On the positive side the industry is currently focusing on proof-of-concept studydevelopment and incorporation of biomarkers into early stage R&D and development ofbiologic drugs including biosimilars. The research in these areas is expected to lead tostrong demands for preclinical development service in the foreseeable future.
In this context a financial year as the one gone by asserts the confidence on solidinvestments made by the company which shall now form the bulwark of long term stablerevenue momentum. Specifically I congratulate you and the entire Vivo family on achievingthe GLP certification making us at par with all International accredited preclinicallaboratories with respect to Good Lab Practices. GLP accreditation is recognized acrossOECD countries as a testament of highest quality of lab processes internationallyaccepted results and interoperability of international lab protocols. Considering thehandful list of GLP accredited labs in India this accreditation significantly opens doorsin the western market for seeking Contract research opportunities.
The fact that efforts toward this started 4 years back this accreditation attests thefocused and consistent effort made by the team over the past few years. That the companyalso saw multiple successful audits and visits from customers regulators and partnersincluding the renewal of our AAALAC accreditation attests the highest quality standardsmaintained by the preclinical laboratory. The consistent growth over the past year movesthe purpose bred laboratory animal supply business from an entrepreneurial high investmenthigh risk business to a stable growing and predictable source of steady cash flows. Themajor investments made in building and maintaining the largest lab animal house in thecountry have now truly started generating organic cash as witnessed over the past 12months. That we could win over 50 customers in 12 months constituting over 60% of thecustomer share shows the strong promise of the business and undeniable leadershipposition offered in this field.
The cell line development and associated drug discovery activities have also seensignificant momentum with continued support from Govt. of India agencies namely SBIRIwhich have supported the projects through funding as well as technical oversight. Vivo BioTech signed up technical partnerships with reputed international Biosimilar companies likeBiosidus Argentina and Vasgene USA to strengthen the development and roll out of lowcost high quality Biosimilar drugs.
As in the past we take this opportunity to reiterate our faith on our investments andstrengthen our commitment to develop further cash generating projects to create long termvalue for all the stakeholders. Like in any business the changing market as well as therapid innovation cycle presents its own challenges to win in the market. Vivo Bio Techcompany has a strong portfolio of market facing services built on highest qualitystandards to compete and win consistently on the global scale.
With additional preclinical services and high acceptance of specific pathogenlaboratory rodents across the Indian market we are confident of achieving significantrevenue growth on back of long term sustainable technological advantage.
I personally thank our bankers our shareholders and our employees for their continuedtrust and consistent confidence in Vivo Bio Tech
Dr. A. Sankaranarayanan Ph.D. F.C.P.
Chief Executive Officer & Whole Time Director