Ingelheim, 24 April 2012 – The pharmaceutical company Boehringer Ingelheim is well-equipped for the future. In the 2011 financial year, net sales, after currency adjustment, increased by 6.2 % to EUR 13.2 billion. At the same time, operating income rose to EUR 2.3 billion and the return on net sales increased to 17.3 %. As already announced in previous years, the company has thereby successfully realised its plans – including mid-single figure growth. "The 2011 results confirm our strategy of organic growth", said Professor Andreas Barner, Chairman of the Board of Managing Directors with responsibility for Research & Development and Medicine, in conjunction with the annual press conference at the corporate headquarters in Ingelheim, Germany. With its own highly competitive research, Boehringer Ingelheim is successfully and sustainably ensuring its independence as a family-owned company. "Thanks to our continued investment in our own research and development, we are starting a new period of growth", according to Prof. Barner.
Boehringer Ingelheim achieved the bulk of its net sales with prescription medicines, which accounted for 77 % of total net sales."Both the new launches of PRADAXA® and established medicines, such as SPIRIVA®, MICARDIS® and COMBIVENT®, showed very gratifying growth", said Hubertus von Baumbach, Member of the Board of Managing Directors with responsibility for Finance and Animal Health. Above all, the market introduction of the oral anticoagulant PRADAXA®, which achieved net sales of EUR 629 million in 2011, contributed significantly to Boehringer Ingelheim's growth in the past year. "The launch of PRADAXA® is among the most successful market introductions in the pharmaceutical industry in the past few years".
Once again, Boehringer Ingelheim's Prescription Medicines business, with growth of 8.2 %, grew faster than the world pharmaceutical market, which only increased by 4.6 %, according to the calculations of IMS, the market analyst. The headcount was also positively affected by the orientation towards increased growth: the number of employees rose by 1,800 worldwide in 2011 to more than 44,000, corresponding to an increase of 4 %.
Research and development strength guarantees future viability
With new developments in its own research pipeline, the company is further securing future development: "We want to make new medicines available, primarily in the therapeutic areas, diabetes, oncology, hepatitis C and idiopathic pulmonary fibrosis, as well as in respiratory diseases", the Chairman of the Board of Managing Directors explained. The use of the active ingredient tiotropium in asthma, new therapeutic approaches for chronic hepatitis, and the development of the substance nintedanib for the treatment of idiopathic pulmonary fibrosis, are being tested. Prof. Barner: "These new developments will bring patients distinct therapeutic benefits".
In order to be able to continue developing new, innovative medicines, such as PRADAXA® and TRAJENTA® , the company's goal is to continually reinvest a significant portion of net sales in its own research and development. In 2011, Boehringer Ingelheim increased its R&D expenditure to EUR 2.5 billion (+3 %). This corresponds to 23.5 % of Prescription Medicines' net sales. With this ratio, Boehringer Ingelheim is well above the industry average.
Company results markedly improved
Boehringer Ingelheim's growth in 2011 was driven by all business areas: from Prescription Medicines, Consumer Health Care, Animal Health and the Industrial Customer business (primarily Biopharmaceuticals). Overall net sales rose from EUR 12.6 billion to EUR 13.2 billion. The return on sales improved from 15.1% to 17.3 % and with an equity ratio of 40 % the company is solidly financed. "Healthy financing is a precondition for our family-owned company's independence, the maintenance of which is our most important goal", said Mr von Baumbach. Sound financing could also be seen in last year's EUR 514 million increase in operative cash flow to EUR 2.6 billion.
The over-the-counter medication business (Consumer Health Care) also developed gratifyingly for the company in 2011. Currency-adjusted net sales rose by 7.1%. Growth was driven primarily by the core brands BUSCOPAN®, DULCOLAX®, MUCOSOLVAN®, PHARMATON® and BISOLVON®, which were all ranked among the top three in their respective markets. As in the previous year, Boehringer Ingelheim is in sixth place among the world's ten largest over-the-counter medications companies.
Sales regions – Americas Region the most important market
The positive development of sales was in the main borne by the two regions Americas and Asia/Australasia/Africa (AAA). With net sales amounting to EUR 6.1 billion, Americas Region achieved growth of 6.3 % compared to the previous year. This region, accounting for 46 % of group net sales, is the most important market for Boehringer Ingelheim. Europe showed a modest decline of 1.3 % to EUR 4 billion, which is attributable to tighter political regulation. The strongest growth was achieved in the AAA Region with 9.9 %. With net sales of EUR 3 billion, this region of growing importance accounts for 23 % of group sales.
In the BRICS states (Brazil, Russia, India, China and South Africa) above all, but also in further markets in the Near East, Asia, Africa and Latin America, the company sees significant growth potential and wants to expand its activities there accordingly. In China alone Boehringer Ingelheim now employs some 2,700 people.
Animal Health also delivers above-market growth
In 2011, the Animal Health business once again achieved positive growth, increasing net sales from EUR 921 million to EUR 976 million. Boehringer Ingelheim, with its veterinary medicines business, is among the fastest-growing providers of animal medicines in the world, with currency-adjusted growth of around 8 %, and has again grown faster than the market. The main growth drivers were swine vaccines, led by INGELVAC CIRCOFLEX®. With net sales of EUR 257 million, it is Boehringer Ingelheim's best-selling animal health product.
The Animal Health business now contributes 7% of group net sales. With the new Boehringer Ingelheim Veterinary Research Center (BIVRC) in Hanover, Germany, the company has now established a research site for animal vaccines in Europe.
Industrial Customer business: Growth driver Biopharmaceuticals
The Industrial Customer business area, which encompasses activities in biopharmaceuticals, pharmaceutical production and contract manufacturing of pharmaceutical chemicals, grew by a currency-adjusted 9.2 %. Net sales of EUR 697 million (previous year: EUR 638 million) correspond to about 5 % of group sales. This growth is primarily based on the positive development in Biopharmaceuticals which, with a 74 % share, decisively impacts this business area.
Outlook 2012
As in previous years, Boehringer Ingelheim's strategic focus will in future be on its own research and development of innovative medicines. "We are planning launches in therapeutic areas with high unmet need and to this end also want to invest considerably in future in our own research and development", Prof. Barner emphasised. The market position of the two innovative medicines PRADAXA® and TRAJENTA® will be expanded. The Biopharmaceuticals business and Animal Health should also grow further. For 2012 Boehringer Ingelheim anticipates being able to achieve further growth and expects high single-digit growth in net sales. This will also have a positive impact on profitability.