"A[er our three-decade-old momentous journey we took a decisive step - we aredemerging our business ver cal into two independent companies."
The last thirty years of our journey has been challenging yet very exciting. And todaywe are at the threshold of an inflect on point which if things go right could emerge asa defining moment in our lives.
As I look back I am satisfied with the tremendous progress we have made over theyears. We generated healthy returns while transforming our business model. We executedwell against our strategy and our pipeline has never been stronger.
I look at fi scal 2018-19 as an inflect on point in our journey during which we laidthe foundation for taking a big leap Suven Lifesciences will never be the sameagain.
One we are demerging our business verticals into separate companies. While SuvenLifesciences will have the NCE segment the CRAMS business will move to Suven Pharmaceucals. This was absolutely necessary as both verticals have atiained a critical mass. Thisdemerger will atract focused global investors whose risk-return appe te aligns with therisk-return profi le resident within the business models of each Company in turndriving valua ons. This segrega on I believe will build shareholder value.
Two we completed the Clinical Trial (Phase II) of our lead molecule SUVN-502 masupirdine.Our molecule has gone through mul ple DSMB (Drug Safety Monitoring Board) mee ngs withoutany major observa ons and we are confi dent that our molecule will have a good safetymargin. Its e cacy will determine the journey ahead. If the molecule can make it throughto Phase III Suven will emerge as one of the very few Indian companies to secure a posion in the coveted global innovator community. If it does not it goes to the shelf.However our journey does not stop here. For our second molecule SUVN-G3031 samelisantis on course to enter the Clinical Trials (Phase II) for a new indica on - Narcolepsy[excessive day me sleep disorder] by August 2019.
Three we invested US$ 35 million in Shore Suven Pharma Inc. (now RisingHoldings Inc.) a US-based company for a 25% stake in the Company. I am excited about theprospects of this initiative as it promises to open another revenue vertical for our CRAMSbusiness strengthening the inflow and stability of revenues over 2 to 3 years. Also thishappens to be our first inorganic growth initiative which makes this initiative morespecial.
Rising Holdings a virtual company enjoys formula on distribu on and develops itsproducts in collabora on with partners. Suven being an earlier partner will have theoption to develop new products and supply on a profi t-sharing basis. This combina onappears to be a perfect fi t. The formula on development and supply opportunity willcreate another revenue vertical for our CRAMS business. Our new formulations manufacturingfacility is expected to come on stream by the 2nd quarter of calender 2020 which shoreour formula on capability.
Our new journey
Going forward I am optimise about the possibilities. For one I remain confi dent ofan improved performance of our CRAMS business owing to the trafic on visible at the startof the year. Two even as I am prepared mentally for an initial setback in our NCEjourney there remains a ray of hope for a positive outcome. Moreover with the recentinitial fives kicking in over the medium term I am convinced that Suven will continue todeliver on its shareholder commitment of delivering value to shareholdersyear-on-year.
As we move forward into 2019-20 I would like to express my sincere gratude to myfellow Directors for their commitment and professionalism in paving Suven's long-termpath. My deep appreciation to all our valued shareholders for their confi dence andsupport. My thanks to our customers suppliers and lenders who continue to partner ourgrowth. Lastly our management team and staff for their invaluable and ongoing dedicationin contributing to the Company's growth.
Chairman & CEO