Boehringer Ingelheim Maintains Sales Level/Course Set For The Future: Product Pipeline Well-Filled
Ingelheim, Germany (5. April 2011) – In the business year
2010, Boehringer Ingelheim almost compensated for the anticipated
loss of turnover announced in advance last year, nearly achieving
the previous year‘s level. Despite the sales loss of EUR 1.4
billion, due to the loss of exclusivity rights on important sales
drivers in the US pharmaceuticals market, and the additional burden
arising from healthcare reforms in the USA and Europe, business
developed satisfactorily in 2010. This can be put down to growth in
the rest of the Prescription Medicines portfolio (currency-adjusted
+5.5 percent), the successful launch of new products and a sharp 51
percent increase in sales in the Animal Health business. Operating
income, comparable to EBIT, was satisfactory at around EUR 1.9
billion, corresponding to a return on net sales (operating income
in relation to net sales) of 15.1 percent. For Boehringer
Ingelheim, 2010 was thus a successful year, in spite of the
difficult overall conditions.
Prof. Dr Dr Andreas Barner, Chairmane of the Board of Managing
Directors
Prof. Dr Dr Andreas Barner, Chairman of the Board of Managing Directors
Professor Andreas Barner, Chairman of the Board of Managing Directors and responsible for the Corporate Board Division Pharma Research, Development and Medicine states: "The last business year was a year of transition. Due to patent expiries and the associated competition from generics, launch preparations for new products and regulatory changes in the markets, we had already anticipated in 2009 that we could not achieve the high growth rates of the previous years. So we made use of the time and laid the foundations for new growth". The product pipeline is well-filled as a result of our own successful research and development. In 2010, the company invested 24 percent of its Prescription Medicines sales in the R&D field, which was more than ever before (2009: 21 percent).
In 2010, Boehringer Ingelheim employed an annual average of 42,224 people worldwide (2009: 41,534), representing an increase of two percent.
Boehringer Ingelheim in Japan
Boehringer Ingelheim group of companies in Japan has been affected
by the earthquake. Prof. Andreas Barner commented: "To our great
relief, we have learned that our 3,000 employees in Japan are all
safe. While putting priority on securing the safety of employees
and their families, our activities after the earthquake continue to
focus on supporting disaster affected areas, persons and stable
product supply".
Annual Press Conference 2011
"Almost EUR 2.5 billion invested Boehringer Ingelheim in its research and development activities, amounting to EUR 230 million more than in the previous year".
Prof. Dr Dr Andreas Barner
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Research and Development – Foundation for corporate
success
In 2011, the innovative drug PRADAXA® (dabigatran etexilate)
will contribute to further growth for Boehringer Ingelheim.
PRADAXA® has been approved in the USA and Canada since the end
of 2010 for stroke prevention in patients with atrial fibrillation.
At the beginning of 2011, the medication also gained approval in
New Zealand, Japan and South Korea. Boehringer Ingelheim expects
further approvals in Europe. Since 2008, dabigatran etexilate has
in 75 countries helped patients in the prevention of venous
thrombo-embolism (VTE) after hip and knee replacement surgery. The
approvals now granted in the indication of stroke prevention
represent a therapeutic breakthrough. Experts estimate that an
optimal medicinal therapy could prevent close to a million cases of
stroke per year worldwide.
"The research and development of innovative products stands in the foreground for Boehringer Ingelheim. In 2010, we have also markedly increased investment once again in research and development, despite the economically demanding situation for our company", said Prof. Barner. Boehringer Ingelheim last year invested almost EUR 2.5 billion (2009: EUR 2.2 billion) in its research and development activities, amounting to EUR 230 million more than in the previous year. Boehringer Ingelheim has also invested the bulk of the EUR 519 million in fixed assets primarily for buildings and technical facilities at its research and development sites and production.
Finances
The main pillar of turnover for Boehringer Ingelheim remains its
Human Pharmaceuticals business. In 2010, this business generated 93
percent or EUR 11.7 billion of total net sales, with Prescription
Medicines accounting for EUR 9.7 billion of this. Consumer Health
Care, which grew by 4.5 percent in 2010, accounted for EUR 1.3
billion. This growth was mainly borne by the emerging markets. "In
particular, the markets of China, Brazil and Russia overall are of
great strategic significance to Human Pharmaceuticals business and
are therefore the focus of our actions", underlined Hubertus von
Baumbach, member of the Board of Managing Directors reponsible for
Finance and Animal Health. Cash flow from operating activities
declined to almost EUR 2.1 billion. On the other hand, liquidity
rose once again (+EUR 729 million). "Boehringer Ingelheim managed
2010 successfully and shows healthy financing", said Hubertus von
Baumbach, summarising the business year 2010.
Pharma research institute Kobe, Japan
Pharma research institute Kobe, Japan
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Americas still the biggest region by sales – SPIRIVA®,
MICARDIS® and COMBIVENT®
The majority of Boehringer Ingelheim's net sales are still made in
the Americas Region. In 2010, it generated EUR 5.7 billion (2009:
EUR 6.3 billion), or 46 percent of total net sales. Though this
means a decline of 8.5 percent, due to the special situation with
patent expiries in the USA, the business showed gratifying
development after adjustment for the extraordinary components.
Established products, such as SPIRIVA®, MICARDIS® and
COMBIVENT®, showed distinct growth and were thus able to
partially offset the sales losses. SPIRIVA®, a medicine for the
treatment of chronic obstructive pulmonary disease (COPD) remains
Boehringer Ingelheim's biggest product in turnover terms. In 2010,
it achieved net sales of EUR 2,863 million, thereby growing by 19.1
percent against the previous year. MICARDIS®, for the treatment
of high blood pressure, increased net sales by 11.6 percent to
almost EUR 1,555 million. The product COMBIVENT®, approved for
COPD and bronchial asthma, climbed 11.2 percent to EUR 727 million.
In Europe and the Asia, Australasia, Africa Region (AAA),
Boehringer Ingelheim increased net sales. The AAA Region showed
itself to be the most dynamic market, with net sales rising by 11.6
percent. In the meantime, this increasingly important region, with
net sales of EUR 2.8 billion (2009: EUR 2.5 billion), accounts for
22 percent of total net sales.
Model of the European research centre for animal vaccines in
Hannover
Model of the European research centre for animal vaccines in Hannover.
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Animal Health business grows 51 percent
The Animal Health business developed particularly well last year.
Its net sales rose to EUR 921 million (2009: EUR 610 million),
thereby growing by 51 percent. This massive increase is
attributable on the one hand to organic growth, with the swine
vaccine INGELVAC CircoFLEX® in particular clearly increasing
Boehringer Ingelheim’s market share, and on the other hand to
the acquisition of parts of animal health business of Pfizer/Fort
Dodge at the end of 2009. Animal Health’s share of total net
sales in the meantime stands at 7 percent (2009: 5 percent). "In
Hanover, we are currently setting up a European research centre for
animal vaccines. Our whole research and development in Europe will
be brought together there", said Prof. Barner. Boehringer Ingelheim
also expects further above-market growth in the Animal Health
business.
Amgen in Fremont, USA
Aerial view of Amgen's development and production site in
Fremont, California, USA. The completed acquisition reinforces
Boehringer Ingelheim's position as leading experts worldwide in
developing and manufacturing biopharmaceuticals.
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Expanding global presence in biopharmaceuticals
The now completed acquisition of Amgen’s development and
production site in Fremont, California, USA, further reinforces
Boehringer Ingelheim's position in March 2011 as leading experts
worldwide in developing and manufacturing biopharmaceuticals. "Our
presence in Fremont is a building block in our growth strategy in
the biopharmaceuticals business", Prof Barner emphasised. "The
strategic decision to be represented in the San Francisco Bay area
with a modern research and production facility in the biotechnology
centre enables Boehringer Ingelheim to better serve its existing
and future customers. In addition, the technical know-how at the
Fremont site will contribute to the further expansion of our
leading position worldwide in biopharmaceutical process development
and production". As a fully integrated production site, Fremont
will complement the existing resources and state-of-the-art
technology of Boehringer Ingelheim's biopharmaceuticals network in
Biberach, Germany, and in Vienna, Austria.
125 jubilee
2010 Boehringer Ingelheim celebrated its 125th jubilee.
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Outlook 2011 – Start of a new growth phase
2010 was for Boehringer Ingelheim the year in which it reached 125
years of age. The jubilee year also brought new alliances for the
future. With Eli Lilly and Company, Boehringer Ingelheim will
develop and market active substances for diabetes that are
currently in mid and late-stage clinical development. The company
announced this in January 2011. The cooperation concentrates on
four, possibly five, active ingredients in the development pipeline
which belong to various promising substance classes. "This
cooperation combines the advantages from Lilly's expertise and
pioneering history in diabetes and their won pipeline with two
experimental basal insulin analogues under development at Lilly
with Boehringer Ingelheim's comprehensive and innovative diabetes
pipeline with active ingredients in late-stage development", Prof.
Barner explained. The first approvals for the diabetes active
ingredient linagliptin are expected already this year. Linagliptin
is a dipeptidyl peptidase-4 inhibitor discovered by Boehringer
Ingelheim for treating type 2 diabetes.
The markets in the developing countries and in the Asia-Pacific region have great strategic importance for Boehringer Ingelheim in the future. A forecast for this region in 2011 is at present not possible because of the current events in Japan.
Overall, the transition will take place this year to a new growth phase for Boehringer Ingelheim, according to Prof. Barner. "Not least thanks to its committed and well-educated employees and a convincing product pipeline, the history of success of Boehringer Ingelheim will continue with new medicines that give patients convincing therapeutic advantage in the treatment of their illnesses".
For 2011, Boehringer Ingelheim expects robust overall growth of
mid-single digit percent.
Media contact
*
Heidrun Thoma
Boehringer Ingelheim
Media & PR
Heidrun Thoma
Binger Strasse 173
55216 Ingelheim am Rhein
GERMANY
o Phone +49/6132/77 3966
o Fax +49/6132/77 6601
Posted: April 2011
