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Financial year 2018: Boehringer Ingelheim grows and invests

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The research-driven pharmaceutical company Boehringer Ingelheim ended 2018 with net sales of 17.5 billion euros. Adjusted for currency effects, as well as one-off effects due to the asset swap with Sanofi in 2017, net sales grew by 4 per cent. At 3.2 billion euros (+2.8%), R&D expenses increased to 18.1 per cent of annual net sales.

 

In the process, the company has focused specific therapeutic areas. “We want to make a significant contribution towards a superior treatment of cancer,” says Hubertus von Baumbach, Chairman of the Board of Managing Directors. “In addition, we are conducting research, among others, into fibrotic, metabolic and immunological diseases. Our research pipeline is well-filled.”

 

At almost 1 billion euros (+9%), investments in tangible assets were higher than ever before. Operating income again amounted to 3.5 billion euros (- 0.4%), while Group profit after tax increased to 2.1 billion euros. “In 2018, the return on net sales increased from 19.3 to 19.8 per cent, while our equity ratio rose from nearly 38 per cent to 40 per cent. Thus, we are also a very healthy company from a financial point of view,” remarks Michael Schmelmer, Member of the Board of Managing Directors responsible for Finance.

 

The average number of employees in all regions increased slightly to a total of 50,370 (+2%).

 

Human pharmaceuticals – strong portfolio

At 12.6 billion euros, human pharmaceuticals contributed to 72 per cent of total net sales in 2018. Foreseeable declines in net sales, due to expiring patents for innovative medicines, were more than compensated for, this business thereby achieving currency-adjusted growth of 5.1 per cent. Revenues from the global licensing business were lower than in the previous year and have reduced the overall rate of growth in this business area to 3.3 per cent.

 

As in previous years, the respiratory medicine used for asthma and COPD treatment achieved the highest net sales contributions with 2.4 billion euros (-11.4% currency-adjusted), followed by the type-2 diabetes medicine family, with 1.8 billion euros (+52.5% currency-adjusted), the stroke management treatment with 1.5 billion euros (+7.0% currency-adjusted), the type-2 diabetes medicine used to improve glycaemic control in adults ® with 1.4 billion euros (+9.0% currency-adjusted), as well as the treatment of idiopathic pulmonary fibrosis (IPF), with 1.1 billion euros (+28.7% currency-adjusted).

 

At 2.8 billion euros, research and development investments in human pharmaceuticals corresponded to a 22.1% share of human pharmaceuticals’ net sales. For the total of 90 projects in all phases of the research process, the goal is for 75 per cent of them to be either the first molecules in their active ingredient class or the first in a new therapeutic area. In oncology, the focal points are cancers of the lung, stomach and intestine, while in fibrotic diseases the focus is on systemic scleroderma with interstitial lung disease. In metabolic diseases, non-alcoholic steatohepatitis is the main focus of research. In immunology, research is giving attention to chronic inflammatory diseases of the skin and intestine. Other projects address diseases of the central nervous system, such as Alzheimer’s and schizophrenia, obesity and retinopathy.

 

Animal health – Technical integration completed

In animal health, our focus is on innovative vaccines, antiparasitic medicines and further therapy solutions for livestock and pets. In 2018, the three antiparasitic medicines that include flea and tick protection, prevention of heartworm disease, were the best-selling products. Net sales of 4 billion euros represented 23 per cent of total net sales.

In the second year of the Merial transaction, this business has thereby achieved significant net sales growth, with a currency-adjusted rate of 5.6 per cent, while simultaneously undertaking integration efforts. “We have focused on providing our customers with continuous supply from day one. As a result, we have achieved good growth and the technical integration is successfully completed,” says Hubertus von Baumbach. The innovation potential in animal health, where it interrelates with human pharmaceutical research, deserves particular attention.

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Biopharmaceutical contract manufacturing maintains lead position

The biopharmaceuticals business maintained its lead position in the contract manufacturing segment in the financial year 2018 and provided 4 per cent of overall net sales. The order situation has continued to develop positively and provided for a high level of capacity utilization in biopharmaceutical production.

 

Boehringer Ingelheim in Lebanon

 

Fouad Jeweidi, Levant Country Head at Boehringer Ingelheim said, “Boehringer Ingelheim Lebanon is the 2nd fastest growing human pharma multinational company and ranked number 7 among top multinationals pharmaceutical companies[1]  operating in the sector. This achievement mirrors the continued efforts towards introducing innovative treatment options for patients across multiple therapeutic areas. We are focused on working with our local partners to drive more awareness programs that help support patients through a variety of educational initiatives. In 2019, we are planning to strengthen our type 2 diabetes portfolio in the country by launching a new therapy that is focused on improving glycemic control in adults with type 2 diabetes with a further protection from cardiovascular risks.”

Outlook for 2019

For the current financial year, Boehringer Ingelheim is expecting slight growth in net sales and further intensive investment activities on a comparable basis.

During 2018, within the human pharmaceuticals market, Boehringer Ingelheim Middle East, Turkey and Africa (META) has achieved a strong performance amongst top 25 corporations compared to overall market performance with a growth rate of 15.5% vs 13.9%.[2]

In 2019, the company is planning 12 new launches and a registration of 61 products across the META region. In addition, Boehringer Ingelheim will continue to drive its footprint across Africa by investing in access to healthcare programs to drive innovative healthcare solutions for low-income patients and enhance the sustainability of healthcare in the African content under the InReach Africa Program.

[1] IMS MIDAS META Q4 2018  (Reconstructed Human Pharma Market)

[2] IMS MIDAS META Q4 2018  (Reconstructed Human Pharma Market)

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