Boehringer Ingelheim Middle East and North Africa Region achieved a sales growth of 26% and 4% in Lebanon
- Net sales globally to rise to 14.8 billion euros (currency-adjusted: +4.1 per cent; +11.1 per cent in euro terms)
- Operating income improves markedly to 2.3 billion euros
- Key strategic course set for future sustainable business development
- In 2015, Boehringer Ingelheim Middle East and North Africa Region achieved a sales growth of 26% and around 4% in Lebanon versus the year before
United Arab Emirates, 19 April 2016 – The research-driven pharmaceutical company Boehringer Ingelheim looks back on a successful year 2015.
“We made many significant medical advances,” said Professor Andreas Barner, Chairman of the Board of Managing Directors, at the Annual Press Conference today. “At the same time, we took the key strategic course in 2015 to build on our competitiveness and to pave the way for sustainable business development in the future too.”
In 2015, Boehringer Ingelheim generated net sales of 14.8 billion euros, representing an increase of 4.1 per cent in currency-adjusted terms (+11.1 per cent in euro terms). Excluding the generics business, which was sold at the beginning of 2016, currency-adjusted net sales rose by 5.3 per cent. Since operating income also improved by 6 per cent to 2.3 billion euros, the return on net sales came to 15.3 per cent. In 2015, Boehringer Ingelheim employed around 47,500 people worldwide.
Karim El Alaoui Managing Director and Head of Prescription Medicine of Boehringer Ingelheim Middle East, Turkey and Africa (META) said, “In the Middle East and North Africa , Boehringer Ingelheim achieved a 26% growth in sales. Strong performing markets included Saudi Arabia, Algeria, Lebanon as well as the United Arab Emirates. We are proud of the success of this region and will continue on our growth path in the coming years.“
“We are committed to maintaining a strong growth trajectory in the region by introducing innovative initiatives that cater to serving patients and achieving better treatment outcomes in different therapeutic areas”, added El Alaoui
Numerous submissions, approvals and product launches globally
The approval of Boehringer Ingelheim’s anticoagulant reversal agent in the USA and Europe means that it is now available to doctors in rare emergency situations.
In the field of respiratory diseases, Boehringer Ingelheim’s biggest indication area, the company also recorded major product approvals in various countries: its add-on maintenance bronchodilator treatment for asthma, as well as its treatment for chronic-obstructive pulmonary disease (COPD) and the company’s treatment product for the rare disease idiopathic pulmonary fibrosis (IPF).
Boehringer Ingelheim in the MENA region is conducting various clinical trials across different therapeutic areas including Diabetes and Oncology-specifically for lung cancer. The company also received around 20 registration approvals all over the region.
During 2015, Boehringer Ingelheim strengthened its presence in diabetes, oncology and respiratory by launching eight products in the region.
Key strategic course set
In order to maintain its freedom to innovate in future, Boehringer Ingelheim took important strategic decisions last year: for example, Boehringer Ingelheim exited the generics business with the sale of its US subsidiary Roxane. At the end of 2015 Boehringer Ingelheim and Sanofi announced that they would be entering into exclusive negotiations with regard to the strategic swap of Boehringer Ingelheim’s consumer health care business for Sanofi’s animal health business. Boehringer Ingelheim’s aim is to intensify its focus and thereby reinforce its prevailing competitiveness. The decision to invest 0.5 billion euros in the expansion of the biopharmaceutical production facility in Vienna (Austria) was another important strategic step.
Strong focus on partnerships in research and development
“Innovative medicines in human pharmaceuticals will also in future be the prerequisite for our growth and success,” Professor Barner said. For this reason, the company is planning to invest around 11 billion euros in the international research and development of human pharmaceuticals over the next five years. Of this, 5 billion euros will go into pre-clinical research and development and 1.5 billion euros into cooperation with external partners. In the meantime, some 50 per cent of innovations in early and middle research phases at Boehringer Ingelheim have emerged from cooperations with external partners, such as universities and biotech companies.
Regarding later development phases, Boehringer Ingelheim reached agreement with AbbVie on a global partnership on two promising compounds from Boehringer Ingelheim research for treating autoimmune diseases, such as psoriasis. Here there is still a great need for more efficacious medicines. “The partnership is the optimal way to exploit fully the potential of both active ingredients, thereby serving the interests of patients worldwide,” Professor Barner added.
Net sales growth in all businesses
Globally, Boehringer Ingelheim experienced growth across all of its business areas last year. For example, net sales of prescription medicines, excluding generics, Boehringer Ingelheim’s most important business, increased by 4.1 per cent in currency-adjusted terms to 10.7 billion euros (+11.9 per cent in euro terms). With net sales of over 3.5 billion euros, the COPD medication, the company’s add-on maintenance bronchodilator treatment remains the bestselling medicine.
The company’s diabetes business has established itself as a long-term growth driver, with net sales for the entire diabetes portfolio increasing significantly by around 49 per cent in currency-adjusted terms to 1.1 billion euros (+63.8 per cent in euro terms). Its anticoagulant drug contributed around 1.3 billion euros to net sales.
Boehringer Ingelheim generated around 10 per cent of its total net sales from consumer health care medicines in 2015. Driven by the global brands that cater to constipation and gas relief, as well as gastro antispasmodic treatment, and cough free brand, in addition to the company’s multivitamin and mineral supplement, net sales increased by 7.1 per cent in currency-adjusted terms to over 1.5 billion euros (+5.3 per cent in euro terms).
Boehringer Ingelheim also made further gains in its animal health business in 2015, with net sales increasing by 10.5 per cent in currency-adjusted terms to almost 1.4 billion euros. This business contributed 9 per cent to total net sales. With net sales of 281 million euros globally, The livestock business grew by 12 per cent in currency-adjusted terms, making it the prime growth driver (+20 per cent in euro terms). In the pet segment, the company’s canine vaccine line showed strong growth with an increase in net sales of 7.5 per cent in currency-adjusted terms to 88 million euros (+27.5 per cent in euro terms). Within the MENA region, Boehringer Ingelheim launched its poultry vaccine BEST in Egypt which specifically researched and developed for the Egyptian Market protecting poultry against Avian influenza.
Moreover, Bjoern Sattler, Head of Finance and Administration, Boehringer Ingelheim Middle East, Turkey and North Africa also said, “ The pharmaceutical market in the MENA region has witnessed considerable progress over the years due to favorable demographic and economic factors, and increased government expidenture for healthcare. The region is becoming an important promosing market for large pharmaceutical companies as the expanding middle class demanding a better care“.
With net sales of 576 million euros, the biopharmaceuticals business accounted for 4 per cent of total net sales and achieved growth of 15 per cent last year.
Outlook for 2016
In the current financial year, Boehringer Ingelheim in the MENA region is expected to achieve an increase in net sales compared to last year, given the low growth impetus on the global pharmaceutical markets. “Despite the challenges that the pharmaceutical industry is facing in the region, Boehringer Ingelheim will focus on new product launches in the coming year, specifically those related to oncology, respiratory and diabetes to be able to provide a better quality of life and treatment outcomes. We will also ensure the continuation of our commitment to enhaning Stroke Managment in the region. The region will be a huge focus for our business to serve the patients in need. We are confident that we are well positioned for growth and development in our various markets” added El Alaoui.
Further information on the 2015 financial year is available for download from the Boehringer Ingelheim website at http://www.boehringer-ingelheim.com/news/annual_press_conference.
- Annual Report 2015:
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- Keynote speeches and presentations from the Annual Press Conference 2016: