First half year 2013: Boehringer Ingelheim remains on growth path

The research-driven pharmaceutical company Boehringer Ingelheim grew further in the first half of 2013, despite difficult overall conditions. Net sales rose by 3.1 percent, currency-adjusted, compared to the same period in the previous year, to around €7.1 billion (-0.7 percent in euro terms). The main growth drivers were the oral anticoagulant PRADAXA®, TRAJENTA®, for type 2 diabetes, and SPIRIVA®, for the treatment of chronic obstructive pulmonary disease (COPD).

“The first half year was marked by numerous challenges, like the continuously cost pressure in healthcare systems, and not only in Europe. The global market in prescription medicines – the most relevant to Boehringer Ingelheim – has almost stagnated in the first quarter1 ,“ said Professor Andreas Barner, Chairman of the Board of Managing Directors, presenting the business results for the first six months of 2013. This calls for continuous examination and adjustment of the all structures and processes worldwide in order to be able to react flexibly to the rapidly changing conditions both in the market and in general. “In order to continually heighten our competitiveness, we continue to invest in areas that will determine the future of our group of companies. Going beyond our yet again increased expenditure on research and development, we are further improving our production plants and quality processes. Furthermore, we are preparing for more launches. For example in the Human Pharmaceuticals area, Afatinib, a new medication for the targeted treatment of lung cancer, should come onto the market in the initial countries in the next few months, Prof. Barner said. Registration by the US Food and Drug Administration (FDA) was granted for the new medication in July, under the name GILOTRIF®, for patients with a specific type of lung cancer. For the European market, the responsible authority has already recommended registration, so that this is expected in the coming weeks. Besides diabetes, oncology is now to become the company’s second new indication area.

Full year 2013: Further growth planned

Hubertus von Baumbach, Member of the Board of Managing Directors responsible for Finance, noted: “Despite the difficult circumstances, we assume further growth for the full year 2013. In a stagnating world pharmaceutical market, we expect to achieve net sales growth in the lower single-digit area. This corresponds to a figure that will be above-market, in keeping with our long-term direction.“

Bulk of net sales in Prescription Medicines

Net sales generated with Prescription Medicines, Boehringer Ingelheim’s most important business area, rose by 3.5 percent, currency-adjusted, to €5,341 million and thereby accounted for some 75 percent of group revenues. The bestselling medication, as also previously, was SPIRIVA® –net sales rose from a high level by 3.9 percent, currency-adjusted, to €1,826 million. The newly launched diabetes medication TRAJENTA® continues to grow strongly. Within the framework of the German AMNOG (new pharmaceuticals recognition law) process, no additional benefit was attributed to the medication. TRAJENTA® is thus not available in Germany – a decision that is regarded critically by both physicians and professional associations with regard to patient care. The medication is, however, experiencing growing recognition in markets outside Germany. Boehringer Ingelheim thereby achieved net sales of around €200 million with TRAJENTA® in the first half of 2013. With PRADAXA®, for the prevention of stroke in patients with atrial fibrillation and the prevention of venous thromboembolism after knee and hip operations, Boehringer Ingelheim generated net sales of €612 million in the first half of 2013. Currency-adjusted, this represented an increase of 27.9 percent. To date, PRADAXA® is registered in more than 100 countries.

Revenues with over-the-counter (OTC) medicines grew by a currency-adjusted 8.3 percent to €712 million in the first half of 2013. This corresponds to some 10 percent of total net sales. International core brands are BUSCOPAN®, DULCOLAX®, MUCOSOLVAN®, PHARMATON® and BISOLVON®. In June, Boehringer Ingelheim launched the medication VAPRINO® in Germany, for the treatment of acute diarrhea. The Germany-wide launch of BOXAGRIPPAL®, for the treatment of cold symptoms, followed a month later. Boehringer Ingelheim holds seventh place among the largest OTC companies worldwide.

In the business area Animal Health, Boehringer Ingelheim earned €526 million in the reporting period, or 1.5 percent more, currency-adjusted, than in the first six month of the previous year. Swine vaccines from the INGELVAC product family were once again the main growth driver. Since the spring, the medication PEXION®, for the treatment of epilepsy in dogs, has been on the market in Europe.

In the business area Biopharmaceuticals, net sales in the first half declined by 21.2 percent, currency-adjusted, to €168 million. Third party supply contracts came to an end, as planned, in the reporting period

Reference

1. Source: IMS Health-MIDAS