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Financial year 2018: Boehringer Ingelheim grows and invests

INGELHEIM, Germany–(BUSINESS WIRE)–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 on 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 SPIRIVA®
achieved the highest net sales contributions with 2.4 billion euros
(-11.4% currency-adjusted), followed by the type-2 diabetes medicine
family JARDIANCE®, including SYNJARDY® and GLYXAMBI®,
with 1.8 billion euros (+52.5% currency-adjusted), the anticoagulant
PRADAXA® with 1.5 billion euros (+7.0% currency-adjusted),
the type-2 diabetes medicine TRAJENTA® with 1.4 billion euros
(+9.0% currency-adjusted), as well as OFEV® for 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 NEXGARD®, FRONTLINE®
and HEARTGARD®, plus the vaccine INGELVAC CIRCOFLEX®,
were the four 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.

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.

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. “In Europe alone we are planning investments of more
than 3 billion euros within the next five years,” says von Baumbach.
“The key precondition for this are competitive overall conditions at our
European sites.”

Please click on the link for ‘Notes to Editors’:
http://www.boehringer-ingelheim.com/press-release/annualresultspressconference2019

Contacts

Boehringer Ingelheim
Corporate Communications
Media
+ PR

Matthias Reinig
55216 Ingelheim/Germany
Phone:
06132 – 77 18 48 55
Fax: 06132 – 77 6601
Email: press@boehringer-ingelheim.com

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