- Sharp increase in net sales to nearly 18.1 billion euros
(+15.7 per cent in currency-adjusted terms; +13.9 per cent in
euro terms) - Operating income rises significantly to around 3.5 billion euros
- Return on net sales of 19.3 per cent
- Strengthened animal health business successful
- Boehringer Ingelheim Middle East, Turkey, Africa (META) achieved a sales growth of 10% in 2017
United Arab Emirates, 25 April 2018 – The research-driven pharmaceutical company Boehringer Ingelheim can look back on a very successful 2017 financial year. All businesses contributed to net sales growth. R&D expenditure exceeded three billion euros, around 2.7 billion euros of which was in the human pharmaceuticals area alone. “There are still more questions than answers in medicine. We want to continue putting all our efforts into tackling the challenges in research. A high level of investment in R&D therefore reflects our corporate identity,” explained Hubertus von Baumbach, Chairman of the Board of Managing Directors.
Last year, Boehringer Ingelheim generated net sales of nearly 18.1 billion euros, representing an increase of 15.7 per cent in currency-adjusted terms (+13.9 per cent in euro terms). Adjusted for all the one-off effects that have resulted from the business swap with Sanofi, the company recorded currency-adjusted net sales growth of 6.1 per cent (+4.4 per cent in euro terms). With operating income of around 3.5 billion euros, the return on net sales came to 19.3 per cent. The company employed an average of approximately 50,000 people worldwide in 2017.
Enrique Manzoni, Regional Managing Director – Middle East, Turkey, Africa (META) at Boehringer Ingelheim said, “Boehringer Ingelheim’s consistent strong performance across the META region is backed by a strong and excellent execution of the company’s business strategy and a solid business model that reflects its position as the fastest growing pharmaceutical company in the region in our Human Pharma business. Our financial and operational performance mirrors the company’s consistent commitment towards meeting the region’s unmet medical needs by delivering innovative initiatives across a number of key therapeutic areas such as type 2 diabetes and stroke.”
“The region is well poised to be the next growth engine of global pharmaceutical sales. To that extent, we continue to work with our partners to further support and enhance the healthcare infrastructure that ultimately aims at providing integrated healthcare services and solutions. In 2017, we have been able to launch 10 products in addition to registering 38 products across the region,” added Manzoni.
In addition, Christoph Raab, Head of Finance and Administration at Boehringer Ingelheim META said, “In the META, we have achieved a 10% sales growth during 2017 compared to the same period last year. Moreover, the company’s Human Pharma portfolio recorded a 13.1% growth, while the Animal Health business achieved a 3.6% growth. Our top performing markets included the United Arab Emirates, Saudi Arabia and Turkey“.
Worldwide Net sales growth in all businesses
Boehringer Ingelheim experienced organic growth across all business areas last year. “Our human pharmaceuticals business in particular exceeded our expectations,” emphasised Michael Schmelmer, Member of the Board of Managing Directors responsible for Finance. “The main growth drivers here were our business in the US market and emerging markets.”
Major success with human pharmaceuticals globally
In the human pharmaceuticals business, Boehringer Ingelheim last year succeeded in generating net sales of more than one billion US dollars each with six medicines that focused on respiratory illnesses such as chronic obstructive pulmonary disease (COPD) and Idiopathic pulmonary fibrosis (IPF), the anticoagulant reversal agent, type 2 diabetes, as well as the treatment of hypertension.
Overall, net sales from human pharmaceuticals grew by 6.9 per cent in currency-adjusted terms to more than 12.6 billion euros (+5.0 per cent in euro terms). This growth outpaced the market. The human pharmaceuticals business therefore contributed around 70 per cent of total net sales.
2017 was also a very successful year for Boehringer Ingelheim in R&D. The company accomplished the transfer of 13 new active ingredients to clinical studies as first-in-man applications. The company is thus focusing on the areas of cardiometabolic diseases, oncology, respiratory diseases, diseases of the central nervous system and immunology. “We have an extremely competitive pipeline with 80 development projects,” said von Baumbach. “This provides us with strong future prospects for sustainable business development and particularly for innovation that benefits patients.”
As a result of the additional net sales brought about by the transaction, net sales in animal health have more than doubled to 3.9 billion euros. The two parasiticides generated the largest share of net sales: the beef flavoured chews for dogs is the best-selling product at 546 million euros, followed by flea and tick treatment at 381 million euros. Overall, Boehringer Ingelheim generated around 22 per cent of its total net sales in the animal health business. “We have made good progress with a challenging and complex integration process,” explained von Baumbach. “Our employees deserve our unreserved recognition and our gratitude for this – due in no small part to their commitment, we are now a competitive player for the future in the animal health business. We are outstandingly positioned for medical breakthroughs that will make animal diseases controllable through prevention.”
The biopharmaceutical contract manufacturing business grew by 10.7 per cent in currency-adjusted terms last year to 678 million euros and contributed four per cent to total net sales.
Holistic approaches for humans and animals
A key strategic objective of Boehringer Ingelheim globally is to develop holistic approaches that benefit patients, both human and animal. Digital projects that focus on patients are an example of this. Boehringer Ingelheim recently established the BI X digital laboratory and increased the Boehringer Ingelheim Venture Fund from 100 to 250 million euros, 50 million of which is intended for digital innovation alone. “At the same time, we always ask ourselves how we can further improve the lives of patients and relatives as well as the treatment options for doctors,” explained Schmelmer.
Outlook for 2018
For the current financial year, Boehringer Ingelheim globally is expecting slight growth in net sales on a comparable basis.
“In the META region, we are well on our way to continue achieving growth levels in 2018, in line with our overall business strategy and leveraging synergies across the region. In 2018, the company is expecting 33 market authorizations throughout the wider META region. In addition, we are also expanding our footprint in the Sub Saharan Africa with key investments in driving access to healthcare programs to develop innovative solutions,” concluded Manzoni.
Further information on the 2017 financial year is available for download from the Boehringer Ingelheim website at www.boehringer-ingelheim.com/news/annual_press_conference.