Boehringer Ingelheim achieves 14% growth in 2013 financial year in MENA
17/04/2014 1:27 pm EDT


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The research-driven pharmaceutical company Boehringer Ingelheim is pleased with the 2013 financial year. The firm in the MENA region has achieved an astounding growth of 14% in the last fiscal. Despite some challenges, the company succeeded in increasing its operating income and the return on net sales. Boehringer Ingelheim generated net sales of around €14.1bn, which represents an increase of 1.4%, currency-adjusted (-4.3% in euro terms). This resulted in a 2.4 percentage point improvement in the return on net sales to 15%. For the current financial year, the company expects net sales to remain at a comparable level to that of 2013. Boehringer Ingelheim now employs more than 47,400 people worldwide, which is 3% more than in the previous year.

“2013 was for Boehringer Ingelheim a year marked by many successes and some challenges,” said Professor Andreas Barner, Chairman of the Board of Managing Directors of Boehringer Ingelheim, at today’s Annual Press Conference in Ingelheim. “We concentrated on continuing our work on the long-term development of the company,” he added. Boehringer Ingelheim last year successfully entered the oncology market for the targeted treatment of a specific form of lung cancer.

“We have delivered record revenue as demand for our business offerings remains high and we made strong progress in the pharmaceutical space by achieving 14% growth in the MENA region,” said Karim El Alaoui, Managing Director, Boehringer Ingelheim Middle East, Turkey and Africa. “These results reflect our focus on execution and long-term shareholder value as we continue to drive the strategic transformation of the company in the Middle East & Africa Region. We are delighted to be able to stay committed to improving healthcare in the region by improving patient’s lives, benefit society and the healthcare system in the region,” he added.

Further launches planned
In the next two years alone, Boehringer Ingelheim is planning more than ten new launches in eight indications: diabetes, COPD, asthma, lung cancer, the rare disease idiopathic pulmonary fibrosis (IPF), Acute Meyloid leukaemia (AML) and the treatment and prevention of deep vein thrombosis and pulmonary embolism. The company is currently working on 90 research and development projects. In the current financial year, Boehringer Ingelheim is planning to take on nine new investigational compounds in phase II clinical studies. “We will strengthen our therapeutic areas immunology and disorders of the central nervous system, CNS,” said Barner.

Came through 2013 well, sound equity structure and financing
“We can say that Boehringer Ingelheim came through 2013 well, despite extraordinary effects and the negative impact of exchange rate developments”, said Hubertus von Baumbach, Member of the Board of Managing Directors with responsibility for Finance. “At around €2.7 bn, the company once again invested substantially in research and development. Expenditure for research and development as a share of net sales rose from 19% in 2012 to 19.5% in 2013. With a 15% increase in equity to €7.1bn and an equity ratio up by around three percentage points to 39%, Boehringer Ingelheim is in a sound financial position. The increase in financial funds to €7.5bn gives the company the financial flexibility for future sustainable, organic growth,” Hubertus added.

At €1.8bn, cash flow from operating activities in 2013 ensured that investments were fully covered. In the financial year just ended, Boehringer Ingelheim invested a total of around €600m in tangible and intangible assets. Among other things, the company increased its production capacity for its respiratory inhaler at its German facilities in Dortmund and Ingelheim at a cost of €57m. Boehringer Ingelheim invested a further €23m in the extension of the production facilities and the chemical research and development laboratory in Shanghai, China.

Prescription Medicines the most important mainstay
Boehringer Ingelheim last year generated net sales of just under €11bn in Prescription Medicines, its most important business. This represents an increase of 1.4%, currency-adjusted (-4.5% in euro terms), and 77% of total net sales. The oral anticoagulant once again proved to be the growth driver, with net sales increasing by more than 16%, currency-adjusted (+8.8% in euro terms), to €1.2bn. The drug for the treatment of COPD remained the most successful medicine. Net sales were up 3.8%, currency-adjusted (-0.3% in euro terms), to around €3.5bn.

In over-the-counter medicines the company achieved a 6.3% increase in net sales, currency-adjusted (-2.1% in euro terms). Net sales generated in 2013 thus amounted to around €1.5bn. This represents 11% of total net sales. The international core Consumer Health Care medicines were again the most successful. In its Animal Health business, Boehringer Ingelheim in 2013 exceeded the €1bn mark in net sales. This represents an increase of 4.5%, currency-adjusted (+0.8% in euro terms), and 8% of total net sales. In Biopharmaceuticals, Boehringer Ingelheim generated net sales in 2013 amounting to €449m.

USA, Japan and Germany the three most important sales markets
The three most important markets – the USA, Japan and Germany – accounted for around 60% of Boehringer Ingelheim’s total net sales in 2013. In Germany, the company generated net sales of around €1bn, but the German share of Boehringer Ingelheim’s global business in prescription medicines amounted to only 5%. In Japan, the company generated net sales of over €1.8bn and in the USA around €5.2bn. Net sales were last year severely impacted by exchange rate effects in the USA and Japan.

Outlook
In view of the many challenges, no particular signs of growth will emerge in the pharmaceutical industry in the course of the next few years. “The market environment for innovative medicines is not going to get any easier in the current financial year,” said Professor Barner. “In view of this and the impact from the expiry of patents, we expect to achieve net sales for our company in 2014 that are comparable to those in the previous year,” he added.

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