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Boehringer Ingelheim: Strong Growth in Animal Health in 2010

by 5m Editor
11 April 2011, at 9:13am

GERMANY - In the business year 2010, Boehringer Ingelheim (BI) 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 €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 health-care 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 per cent), the successful launch of new products and a sharp 51 per cent increase in sales in the Animal Health business. Operating income, comparable to EBIT, was satisfactory at around €1.9 billion, corresponding to a return on net sales (operating income in relation to net sales) of 15.1 per cent. For Boehringer Ingelheim, 2010 was thus a successful year, in spite of the difficult overall conditions.


Professor Andreas Barner

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 per cent of its Prescription Medicines sales in the R&D field, which was more than ever before (2009: 21 per cent).

In 2010, Boehringer Ingelheim employed an annual average of 42,224 people worldwide (2009: 41,534), representing an increase of two per cent.

Animal Health business grows 51 per cent

The Animal Health business developed particularly well last year. Its net sales rose to €921 million (2009: €610 million), thereby growing by 51 per cent. 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 seven per cent (2009: five per cent).

"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 Professor Barner. Boehringer Ingelheim also expects further above-market growth in the Animal Health business.

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," Professor 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 Professor Barner.

He said: "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 single-digit growth.

Further Reading

- You can view the full report by clicking here.