It is this combination of efforts that have allowed Actelion’s flagship product, Tracleer® – the leading treatment for pulmonary arterial hypertension (PAH) – to remain the cornerstone therapy, even after the entry of an additional therapeutic option into the US market in 2007. The company expanded the use of Tracleer® with the mid-2007 EU approval for the reduction of the number of new digital ulcers in patients with systemic sclerosis and ongoing digital ulcer disease.

The focus on both effective prescriber education and a global reach is key to achieving the necessary level of profitability that allows Actelion to concentrate on innovation and growth. At the end of 2007, the company’s rapidly expanding pipeline includes ten different compounds in clinical development, five of them in the final stage of evaluation before potential submission for approval by regulatory authorities. In addition, substantial activities are ongoing in the discovery stage to keep the pipeline supplied with innovative compounds.

In 2007, Actelion’s focus on innovation was evident once again, with the breakthrough data generated through a first-in-class orexin receptor antagonist, almorexant. Actelion successfully demonstrated in mid-stage evaluation that this compound has the potential to transform the way sleep disorders are treated. As a testimony of the company’s strong skill base and its financial strength, Actelion has moved this project rapidly, from an in-house research program to late-stage development within a few years. Together with its other innovative projects, the company has the potential to transform medicine in several areas while transforming itself once again, by reaching out to the general practitioner market – most likely, with the collaboration of a partner at first.

Given Actelion’s strengths both in terms of performance and pipeline, the company has the potential to grow multiple-fold. The long-term strategic plan provides the map to direct expansion and success. On the way, the company will be supported by strong corporate values, a clearly defined corporate culture and the outstanding dedication and professionalism of its people. All these assets have created a unique environment that fosters innovation by allowing freedom of expression and implementation of new ideas – not only in the lab but in all areas of expertise required for success. Today, Actelion has that expertise in all key areas – discovery, process development, quality assurance, product supply, clinical development, regulatory affairs, marketing, sales, administration, finance, communication, human resources, information technology, know-how management, compliance and other corporate services.

In 2007, Actelion continued to put in place the additional expertise and infrastructure that it will need to meet future challenges. The company has recruited new talent and has greatly expanded the number and scope of its internal education and training programs.

A key strategic priority is to continue strengthening the reputation and value of existing products through ongoing efforts in developing new clinical data, education and marketing. In this way, Actelion can maintain its past success, and continue to grow its product sales.

Actelion’s focus on innovation offers the potential for high rewards. Clearly, there is an inherent risk in research and clinical development that cannot be overlooked. Among the company’s key challenges for 2008 is to ensure the continued execution of its clinical trials – as well as marketing and sales efforts – flawlessly.

Where additional investment is required, the Board and Management will continue to hold ourselves accountable, always looking to the bottom line. Where Actelion cannot deliver maximum value from a particular innovation on its own, it will identify partners within the industry that can bring the appropriate resources to the table.

Finally, as a rapidly growing company, Actelion recognizes that it is especially important to protect and nurture the culture of enthusiasm and creativity as employee numbers increase. This culture of dedication remains the driving force of the company’s business activities and enables the delivery of innovative products that improve or prolong patients’ lives.

Also in 2007, the Board of Directors has worked closely with Actelion management to ensure that the company’s long-term strategy of growth and innovation is matched by strong day-to-day implementation of the many different activities necessary to make Actelion a strong company today and tomorrow.

Together with Actelion’s almost 1,600 employees, we are able to report, not only a very successful year in 2007, but also that the company is well prepared to manage its future challenges – ranging from growing and defending product sales to successfully discovering, developing, registering and marketing additional innovative medicines focusing on high unmet medical needs.

Robert E. Cawthorn
Chairman of the Board