Boehringer Ingelheim reported currency-adjusted growth in all its core businesses in the first half of 2016. At the same time, the research-driven pharmaceutical company achieved key strategic milestones by signing contracts to exchange businesses with Sanofi and completing the internal restructuring of its human pharmaceuticals business. For the current year, Boehringer Ingelheim is still expecting a slight year-on-year increase in currency-adjusted net sales.
In the first half of 2016, Boehringer Ingelheim generated total net sales of approximately 7.3 billion euros, which after currency adjustment represents an increase of 2% compared with the same period last year (-1% in euro terms). Excluding the US generics business Roxane, which was sold in February, currency-adjusted growth in the first six months of the financial year amounted to as much as 5% (+1% in euro terms).
"We were able to achieve important long-term strategic milestones in the first half of 2016 that will have a decisive impact on the company's future development," explained Hubertus von Baumbach, Chairman of the Board of Managing Directors at Boehringer Ingelheim. In late June, Boehringer Ingelheim and Sanofi signed contracts to swap Sanofi's animal health business Merial with Boehringer Ingelheim's consumer health care business. Both companies began exclusive negotiations regarding the swap in December 2015. Closing is expected to take place at the turn of the year 2016/2017. This strategic swap lays the groundwork for both companies to achieve significant growth in highly attractive pharmaceuticals markets. Another significant milestone was the reorganisation of the human pharmaceuticals business. "Future success in our core business prescription medicines will depend on how successfully we can establish ourselves as a partner of choice - from preclinical research right through to patients," von Baumbach said. The restructuring of the human pharmaceuticals and innovation corporate board divisions from 1 July reflects this strategy.
Prescription medicines, Boehringer Ingelheim's biggest business, achieved net sales of 5.45 billion euros in the first half of the year. This represents a currency-adjusted increase of 4% (+1% in euro terms). As in prior years, the respiratory medicine SPIRIVA® for the treatment of COPD and asthma was the top-selling medicine, despite its patent expiring in some markets. Boehringer Ingelheim generated net sales of some 1.46 billion euros with the product, which represented a currency-adjusted decline of 16%, as expected (-17% in euro terms).
This effect was, however, more than offset by the very gratifying net sales performance of new medicines. The diabetes portfolio was an important growth driver in the first half of the year, with an increase of 55% after currency adjustment to 760 million euros (+53% in euro terms). A positive development from a medical perspective was new data on JARDIANCE® (empagliflozin) in the treatment of type 2 diabetes: it demonstrated that, when taken in addition to the standard treatment, the medicine reduced the risk of a reoccurrence or a deterioration of renal disease in patients with type 2 diabetes and existing cardiovascular disease by 39% compared to the placebo. Empagliflozin is thus the only SGLT2 inhibitor that could slow the progression of renal disease in people with type 2 diabetes and cardiovascular disease in a cardiovascular outcome study.
Strong growth was also reported for OFEV® for treating idiopathic pulmonary fibrosis (IPF) - net sales were up by 166% to 250 million euros (+166% in euro terms). With its anticoagulant PRADAXA® Boehringer Ingelheim generated net sales of 650 million euros corresponding to a currency-adjusted increase of 6% (+4% in euro terms).
Net sales of over-the-counter medicines rose by 5% on a currency-adjusted basis in the reporting period to 750 million euros (-4% in euro terms). That amounts to over 10% of total net sales. International core brands are DULCOLAX®, BUSCOPAN®, PHARMATON®, MUCOSOLVAN® and BISOLVON®.
In the animal health business, Boehringer Ingelheim achieved currency-adjusted growth of 6% in the first half of 2016, amounting to 688 million euros (+4% in euro terms). This corresponds to 9.5% of total net sales.
The biopharmaceuticals business, in which Boehringer Ingelheim is exclusively involved in contract manufacturing for third parties, grew slightly by 1% to 216 million euros. In the coming years,
Boehringer Ingelheim is planning to invest more than 0.5 billion euros in biopharmaceutical production at its site in Vienna, Austria.
About Boehringer Ingelheim
Boehringer Ingelheim is one of the world's 20 leading pharmaceutical companies. Headquartered in Ingelheim, Germany, Boehringer Ingelheim operates globally through 145 affiliates and a total of some 47,500 employees. The focus of the family-owned company, founded in 1885, is on researching, developing, manufacturing and marketing new medications of high therapeutic value for human and veterinary medicine.
Social responsibility is an important element of the corporate culture at Boehringer Ingelheim. This includes worldwide involvement in social projects through, for example, the initiative “Making More Health” while also caring for employees. Respect, equal opportunity and reconciling career and family form the foundation of mutual cooperation. The company also focuses on environmental protection and sustainability in everything it does.
In 2015, Boehringer Ingelheim achieved net sales of about 14.8 billion euros. R&D expenditure corresponds to 20.3 per cent of net sales.