Boehringer Ingelheim Announces Growth for Financial Year 2012
News Apr 30, 2013
The pharmaceutical company Boehringer Ingelheim looks back on a successful financial year 2012. Despite many challenges, it succeeded in maintaining profitable growth. Net sales rose by 11.5 percent compared to the previous year, to around €14.7 billion (currency-adjusted +6.3 percent). For the current financial year the company expects further mid-single-digit sales growth. Boehringer Ingelheim now has more than 46,000 employees worldwide, corresponding to an increase of some 5 percent.
"2012 was a year with which we are very pleased – both with the growth in the market and with operating income, as well as with the progress with our pipeline. We have successfully faced up to numerous challenges," Professor Andreas Barner, Chairman of the Board of Managing Directors, said at the Annual Press Conference in Ingelheim today. The company's focus remains on innovations from its own research and development. "We will continue to pursue this strategy, regardless of overall increasingly difficult conditions, as we secure the company's future," added Professor Barner.
New launches planned
In 2013, Boehringer Ingelheim plans the market launch of a new medication for the treatment of lung cancer. Alongside diabetes, oncology shall be the company's second new medical pillar. Further launches offering great therapeutic advances are planned in additional oncological indications as well as in COPD and asthma, diabetes and hepatitis C. Boehringer Ingelheim is intentionally not focusing solely on products with strong sales potential, but also researching medication, for example, for the treatment of the rare disease idiopathic pulmonary fibrosis. "We have also commited ourselves to research in areas that are characterised by high unmet medical needs that are difficult to treat and for which there are few patients. Here too, we want to make a therapeutic contribution, without regard to the profit line," Professor Barner said.
"The independence of the Boehringer Ingelheim group of companies is the shareholders' and the Board of Managing Directors' paramount goal. We chart our corporate strategy in line with it. This determines our ‘appetite for risk' This determines our balance sheet structure and explains why we put our money on organic growth," said Hubertus von Baumbach, Member of the Board of managing Directors responsible for Finance. "Boehringer Ingelheim posted equity of €6.2 billion for last year and an equity ratio of 35.7 percent. Therefore, the company’s financing is sound."
Operating income affected by high future-orientated investment
Boehringer Ingelheim achieved an operating income of approximately €1.85 billion in the last financial year. The result was influenced by one-off effects as well as by large investments in research and development again realized in order to secure the company's future.
Increased expenditure for research and development
Total investment in research and development and tangible assets increased strongly again last year. Boehringer Ingelheim raised its R&D expenditure by 11 percent to around €2.8 billion. The company invested €562 million in tangible assets last year, a rise of more than 23 percent compared to 2011.
Sales growth in all business units
Boehringer Ingelheim in external comparisons of top 15 pharmaceutical companies is again one of the fastest growing companies. All three business areas, Human Pharmaceuticals, Animal Health and Biopharmaceuticals contributed to growth.
The company achieved sales of €13.08 billion with Human Pharmaceuticals in 2012, corresponding to growth of 12 percent compared to the previous year (currency-adjusted +7.7 percent). The business area Prescription Medicines continued to account for the bulk of group sales, with a share of 78 percent. Net sales in this business area rose by 13 percent (currency-adjusted +7.1 percent) to around €11.4 billion. "Our oral anticoagulant PRADAXA® was the fastest growing medication in our portfolio, with growth of 76.2 percent," said Mr. von Baumbach. "In 2012, we generated sales of more than €1 billion with PRADAXA® for the first time." By far the most successful medication is still SPIRIVA® for the treatment of chronic obstructive pulmonary disease. Sales here rose from a high level by a further 13 percent to some €3.6 billlion.
Sales in over-the-counter medicines also grew a further 7.8 percent (currency-adjusted +4.7 percent) in 2012 to around €1.5 billion. In the meantime, this business area accounts for a ten percent share of the company’s net sales. The international core brands are BUSCOPAN®, DULCOLAX®, MUCOSOLVAN®, PHARMATON® and BISOLVON®. Sales of BUSCOPAN® exceeded the €200 million threshold for the first time in 2012. Boehringer Ingelheim ranks seventh worldwide among the largest self-medication companies.
In the business area Animal Health, Boehringer Ingelheim achieved sales of more than €1 billion for the first time, corresponding to some 7 percent of group turnover, and a sales growth of 8.8 percent compared to the previous year (currency-adjusted +3.8 percent). The main growth drivers were once again swine vaccines from the product family Ingelvac. INGELVAC CircoFLEX®, with sales of €279 million, is not only the bestselling Animal Health brand, but remains the world’s most sold animal vaccine overall.
In 2012, Boehringer Ingelheim achieved sales of €549 million in biopharmaceuticals. This corresponds to growth of 5.8 percent against the previous year and around 4 percent of group turnover.
Sales regions – mature markets show growth
In the three most important markets, the USA, Japan and Germany, Boehringer Ingelheim in 2012 achieved strong sales growth and 60 percent of group sales. Sales grew by 8.7 percent in Germany, by 15.3 percent in Japan and by 15.1 percent in the USA.
The market situation in Europe remains difficult, especially in France and Southern Europe, and is not expected to change in the years ahead.
For the current financial year, Boehringer Ingelheim expects to continue its growth and anticipates a mid-single-digit increase in sales. The company also wants to constantly continue its growth phase in the coming years.