4TE (4Tune Engineering, www.4TuneEngineering.com) has achieved robust growth over Q1 and Q2-2021, with results that exceed our business plan forecast for H1 2021. Despite the challenges of COVID-19 we grew above expectations in new clients and overall sales volume, while ensuring an unparalleled client retention rate. 4TE H1 sales set a new benchmark for the company since its foundation. These results attest to the remarkable commitment, determination, and competence of our technical and business execution teams. We are well positioned to end the year with record financial performance. As a result, we are adjusting our strategy, anticipating planned investments: strong team expansion until the end of the year, redesigning ambitiously our internal structure and introducing to our development pipeline new and innovative solutions to maintain our scientific & technical leadership in the areas in which we are well known for: true 4.0 intelligent digital transformation of pharma and biopharma end-to-end operations and over lifecycle.
Cash and cash equivalents in the H1 2021 were unequivocally positive and grew 21% when compared to the same period of the previous year. 4TE net cash is now “unequivocally positive” instead of “positive”. Considering as a reference the JPMorgan Chase Institute study about cash buffers1, we now have close to 6 times better financial autonomy than the average for equivalent companies. With that in mind, we are going ahead with further investments in H2 2021. We strive to continue to attract and retain talent at 4TE to better serve our clients and make a difference in the industry with our engineering and intelligent solutions.
Our continued and sustained momentum. Highlights from the second quarter include significant progress in new projects acquisition, securing agreements with new clients and growth within existing clients. We are focused on what we do best: working as partners, side-by-side with our clients, delivering significant and unparalleled added-value, with ‘out-of-the-box’ new, disruptive, and innovative – although practical and compliant – engineering solutions. We assist pharma and biopharma companies in efforts of: (i) acceleration during development phase, (ii) agility during critical pre-commercial phases, and (iii) excellence and compliance during the commercial life of a product.
4TE has a track record of anticipating trends shaping the industry. We have always moved and strategically positioned our offer ahead of our competition. When years ago, we invested in a complete holistic service and product offer, addressing Pharma and Biopharma lifecycle management – we were 5 years ahead of the market. That assured us a competitive advantage and very good place on the market today. Back then we introduced the first generation of our iRISKTM cloud based platform, the most advanced risk management solution developed specifically for Pharma and Biopharma industries – which evolved and is today way more than a compliance solution (www.irisk.com). We were also pioneers in several distinct advanced MS&T approaches (Manufacturing Sciences and Technologies) for comparability protocols used in change management and for similarity assessments, using the ‘totality of evidence’ concept. Same for patient centric initiatives for Cell & Gene Therapies. Just to cover a few of our core competencies. More to come according to our strategic vision and technical innovations road map. We believe that iSEE Platform™ (www.iseeplatform.com) will be a game changer in the field of intelligent digital transformation for Pharma and Biopharma operations, allowing companies to better manage their knowledge and portfolio assets. We are providing unique decision-making capabilities to our clients with iSEE Platform™, that are way ahead of our competitors.
Brand consolidation. We are focused now in using 4TE as short for our official name. It is simpler and a stronger catchier name, however, strategic to our future path. We have invested strongly in digital marketing with the purpose to better communicate our value proposition and uniqueness in a more efficient and effective way. Each of our clients is unique and we make sure our client remains at the center of every decision we take regarding our future and offer developments.
Worldwide partnership network chain. As usual, partnerships need time to grow. During Q2-2021 we had very good developments with each of our partners and a true network is up and running today. We are working collaboratively and jointly opening new key accounts in new geographies in 5 continents. With our partners and their and our network’s combined, we accelerate the worldwide impact and transformation that the introduction of our offer can potentially produce across the industry to accelerate patient access to therapies.
Digital Platforms. Our diversified business offer on Intelligent Digital Transformation was the major contributing factor to our seven-fold increase in sales compared to H1 2020. That includes our established products and new client custom-made products. The overall number of end users also grew correspondingly in H1 2021. As mentioned earlier we anticipate a record year turnover in 2021 positioning the company in a new growth path for 2022-2024.
Technical Services (Manufacturing Sciences & Technologies, Data Science and Engineering). Our services were greatly impacted by the pandemic restrictions on travels and on-site stays. Sales decreased by more than half of H1 2020. However, we benefited from a strong client engagement, trust and retention. For the existing established basis, we were able to operate remotely for most of the deliverables. Our known track-record in the MS&T space – including root-cause investigations, risk and lifecycle management – is now being transformed creating new and unique capabilities. Our senior technical and innovation team is preparing the launch of a next-generation intelligent MS&T and data science offer by end of 2021. We will announce that very soon. We are confident that the market will react very positively over 2022 as we meet the demand for sophisticated technical services.
Multi-Year Agreements. We have a sustained level of client demand for capacity from us, but also reserving future capacity and establishing multi-year agreements with 4TE. This makes us proud and, of course brings with it greater responsibility as we support pharma and biopharma critical operations and business processes long-term.
Team Expansion. The company’s growth plans are supported by additional investment in headcount expansion. We are committed to delivering throughout the pandemic tail and fall out year and for that we are staffing, expanding capacity and increasing the technical and business teams headcount. Compared with H1 2020, we had until H1 2021 a 30% headcount growth which should reach 40-45% by end 2021.
In conclusion. We firmly believe that, as we navigate the dynamic global environment, we will continue to evolve, excel and do better. Uncertainties will stay high to very high, but that is one of our core competencies: Risk Management and adequate decision making despite uncertainties. We feel very confident about our positioning and ability to accommodate unforeseen circumstances, based on the agility, resilience, and learnings we have had so far. We remain positive that our actions and the progress we have made will enable us to deliver a better 2021 than any previous year, and position us for continued growth in 2022.
A heartfelt word of gratitude to our stakeholders, clients, partners, and particularly to the great team of colleagues at 4TE. You constantly inspire me, and I expect that you will continue to do so in the many years to come. It is a pleasure and honor to serve you all.
1 Cash is King: flows, balances, and Buffer Days – by JPMorgan Chase Institute