Boehringer Ingelheim outpaces the market yet again in 2007
SpirivaÂ®, MicardisÂ® and FlomaxÂ® are the major productsÂ
A host of compounds in the pipeline from own research and development
INGELHEIM,Germany, 8 April 2008 - Boehringer Ingelheim enjoyed continued success through 2007, its growth outpacing the pharmaceuticals market for the eighth time in succession. As the Company announced at its Annual Press Conference in Ingelheim, turnover rose by +8.8% in local currency (+3.6% in euro terms) to almost EUR 11 billion (2006: EUR 10.5 billion). At EUR 2.1 billion, operating income - comparable to the EBIT - is at the previous year`s level. This corresponds to an operative margin (ratio of operating income to net sales) of 19.2%. Income after tax was a good EUR 1.8 billion, signifying an increase of +4.8% over the previous year. The number of employees worldwide rose by almost 1,400 to around 39,800 (an increase of +3.6%). For 2008, Boehringer Ingelheim also expects in local currencies a high single-digit net sales growth and thus slightly above the market level.
Dr Alessandro Banchi, Chairman of the Board of Managing Directors of Boehringer Ingelheim and Head of the Corporate Board Division of Pharma Marketing and Sales, said: â€œWe can look back once again on a successful year for Boehringer Ingelheim with continued growth in 2007. Our products are benefiting patients, our product pipeline is well equipped and our workforce is highly motivated.â€
At the same time, the Company faced two major challenges in 2007: firstly, the strength of the euro against the US dollar and the Japanese yen and secondly, a sharp fall in net sales compared to 2006 for the product MobicÂ®, the US patent of which expired in 2006. Overall, a fall in net sales of EUR 340 million for this product had to be offset. In addition, currency effects resulted in a loss of more than 5% on the previous year`s turnover.
The fact that Boehringer Ingelheim successfully achieved growth of +3.6% in euro terms despite these challenges, highlights the excellent dynamic growth of its product portfolio.
According to calculations by the healthcare information service, IMS, Boehringer Ingelheim grew by +7.1%, thus once again outpacing the pharmaceutical market which experienced growth of +6.0%. In 2007, Boehringer Ingelheim again secured a stable market share of almost 2%, ranking 15th among the international pharmaceutical companies.
Our pharmaceutical products provide patients with real therapeutic benefits
In 2007, the Company`s prescription medicines again enjoyed a very high degree of acceptance, resulting in a significant improvement in their respective market position. All core products achieved a significant rise in sales in 2007 and have further potential for future growth.
Leading the way is SpirivaÂ® (tiotropium bromide), the world`s foremost drug for the treatment of chronic obstructive pulmonary disease (COPD), sales of which rose by +35% in local currency terms to just under EUR 1.8 billion. Also, after registration in the EU in autumn 2007, the RespimatÂ® Soft Mistâ„¢ Inhaler with SpirivaÂ® was launched in Germany, Denmark, the Netherlands and the United Kingdom. Market launches in more countries are to follow in 2008. The great demand for this product among patients and doctors demonstrates that with its COPD drug in an innovative inhaler Boehringer Ingelheim has achieved a further major breakthrough.
MicardisÂ® (telmisartan), a particularly effective and well tolerated angiotensin receptor blocker (ARB) with the longest duration of action in this drug class and used for the treatment of essential high blood pressure, achieved net sales of EUR 1,123 million as well as growth of +23% in local currency terms. FlomaxÂ®/AlnaÂ® for the treatment of benign prostatic hyperplasia achieved net sales of EUR 1,020 million and growth of +19% in local currency terms. In addition, SifrolÂ®/MirapexÂ® (pramipexole) for the symptomatic treatment of Parkinson`s disease and for the treatment of moderate to severe cases of restless legs syndrome achieved net sales of EUR 644 million euro and growth of +26% in local currency terms. And also AggrenoxÂ® (dipyridamole extended release/ASA), a medication for secondary stroke prevention, generated gratifying net sales of EUR 278 million and a growth of +32% in local currency terms.
Boehringer Ingelheim`s business areas
Business in the most important strategic business area, Human Pharmaceuticals, Prescription Medicines accounts for 79% of the total net sales of Boehringer Ingelheim. Here, net sales rose in 2007 by almost +10% in local currency terms (+4.2% in euro terms) to over EUR 8.6 billion, following adjustment to take account of the currency component. The self-medication business increased by +11.7% in local currency terms (+7.2% in euro terms) to EUR 1.14 billion.
Total net sales of the Industrial Customer business (Biopharmaceuticals, Pharmaceuticals Production and Pharma Chemicals) amounted to EUR 739 million and thus below the previous year`s figures (-6.5% after currency adjustment, -8.6% in euro terms). In addition to the effects of exchange rates, the fall in net sales in the biopharmaceuticals segment is also partly due to the fact that planned technical upgrades of the older of the two Biberach plants rendered the plant inoperable for several months.
Boehringer Ingelheim`s strategic business areas also include Animal Health. As a leading international supplier of animal health products, Boehringer Ingelheim was able to continue its pleasing growth of recent years with an increase in net sales of +13.1% in local currency (+9.1% in euro terms) to EUR 408 million. Steady growth has been seen in porcine vaccines, in particular. Boehringer Ingelheim is thus well on the way to becoming the market leader in the porcine vaccines segment.
The growth of Boehringer Ingelheim in 2007 was evident in all three regions. Last year, North and South America was again the region with the strongest turnover of the company, where net sales exceeded EUR 5.4 billion (2007: EUR 5.3 billion). In spite of stagnating development in euro terms, the USA remains the principal driving force for growth and, with its net sales of EUR 4.5 billion (approx. +12% in local currency terms), made the largest contribution to global net sales and profits.
The strongest growth amongst the regions was achieved in Europe with net sales of EUR 3.6 billion (+ 8.6% in local currency terms) and a share of total net sales of just under 33%. The strongest country in this region was once again Germany with total net sales of EUR 853 million, although prescription medicines accounted for only EUR 444 million of this figure.
The Asia, Australia, Africa (AAA) region achieved net sales of EUR 1.9 billion and accounted for 17.5% of the worldwide net sales of Boehringer Ingelheim. With net sales of EUR 1.2 billion, Japan was the strongest country in this region.
Exchange rate fluctuations also significantly influenced growth in the AAA region; for this reason, net sales in euro managed only a slight increase on last year`s figure.
Professor Muff highlighted the very solid financial figures and the Company`s desire to secure its long-term independence as a research-driven pharmaceutical company in an increasingly high-risk environment. â€œLasting independence is only possible if the critical factors, i.e. liquidity, profitability and potential for success of the development pipeline, actually guarantee financial security both now and in the future. In this regard, we see good prospects for our company in the medium to long termâ€, Professor Muff said.
Yet it was also necessary, he said, to keep mindful of long-term trends and increasing risks for the pharmaceutical industry, particularly the incentive systems set up by the competent authorities to launch costly research and development of new drugs that represent advances in treatment.
Our employees â€“ the key requirement for future success
Dr Banchi and Professor Muff emphasised that the Company attaches particular value to its employees who are the causal force behind the Company`s innovation and thus the key prerequisite for its future development. They said that it is a special pleasure for Boehringer Ingelheim to take first place in the 2007 Top Employers Survey conducted by the journal Science and to thus be deemed the most attractive employer for science professionals in Europe and the USA.
Since 2003, the number of employees worldwide has increased by approximately 5,500, or +16%. In Germany alone, 1,700 new employees were recruited, corresponding to an increase of +17%. The increase in employee numbers also demonstrates the continued pledge to monitor and improve internal processes and structures. One particular challenge - and also a challenge for Boehringer Ingelheim - was said to be the demographic development in many countries which is being acted upon with relevant measures as part of the broad-based initiative, â€œPerspective Demographyâ€.
New product launches and a host of products in the pipeline â€“ securing the future
Dr Banchi sees positive prospects for the future, with 2008 being a particularly important year for the further development of the Company.
End of March 2008, PradaxaÂ®, the first oral anticoagulant from the class of direct thrombin inhibitors and a product from Boehringer Ingelheimâ€™s own R&D, was successfully approved by the European Commission in its first indication for the prevention of venous thromboembolic events in adults after elective hip and knee replacement surgery. A further four indications are currently in clinical development. â€œWe are convinced that in the future, PradaxaÂ® will be important for even more patients and doctors for a variety of conditions and after more than 40 years of vitamin K antagonists being the gold standard, it will change current treatment guidelines for the prevention of venous thromboembolism,â€ Dr Banchi said.
2008 will also be marked by the publication of various landmark studies (Phase IV studies). The first study to be published were the results of the ONTARGETâ„¢ study on the protection of cardiovascular events, which showed that telmisartan (MicardisÂ®) is as protective as the current gold standard ramipril, but significantly better tolerated in a broad high-risk cardiovascular population. Telmisartan (Micardis Â®) is the first and only angiotensin receptor blocker (ARB) to have proven cardiovascular protective benefits beyond blood pressure reduction in patients with high cardiovascular risks.
Other important results are expected in 2008 for the PRoFESSÂ® study involving AggrenoxÂ® and for the UPLIFTÂ® study involving SpirivaÂ®. â€œPositive results from the studies mean new medical findings as well as widened and new indications for our drugs, thereby benefiting the patients,â€ said Dr Banchi.
In addition, several innovative substances from our own R&D for various therapeutic areas have progressed to the next clinical development phase. Clinical phase III includes two substances from oncology, one substance for diabetes type II and one substance in development for pre-menopausal women with hypoactive sexual desire disorder.
Our own R&D is also enhanced by promising cooperative alliances and licensing agreements with other companies. In 2007, over EUR 1.7 billion was invested in research, development and medicine, representing an increase on the previous year of just under +10%. Research spending thus accounted for more than 19% of sales in prescription medicines.
Dr Banchi: â€œWe are very optimistic as our financial basis is sound and our prospects are encouraging. And with the forthcoming new product launches and our products in the pipeline, we have once again proved our company`s power of innovation and potential for success.â€