April 6, 2011
Boehringer Ingelheim's 2010 operating income reaches US$2.7 billion
For the business year 2010, Boehringer Ingelheim reported that operating income, comparable to EBIT, was at around EUR 1.9 billion (US$2.7 billion), corresponding to a return on net sales of 15.1%.
The company almost compensated for the anticipated loss of turnover announced in advance last year, nearly achieving the previous year's level. Despite the sales loss of EUR 1.4 billion (US$2 billion), due to the loss of exclusivity rights on important sales drivers in the US pharmaceuticals market, and the additional burden arising from healthcare reforms in the US and Europe, business developed satisfactorily in 2010.
The main pillar of turnover for Boehringer Ingelheim remains its Human Pharmaceuticals business. In 2010, this business generated 93% or EUR11.7 billion (US$16.9 billion) of total net sales, with Prescription Medicines accounting for EUR9.7 billion (US$14 billion) of this.
The Animal Health business developed particularly well last year. Its net sales rose to EUR921 million (US$1.3 billion), growing by 51% on-year. This massive increase is attributable on the one hand to organic growth, with the swine vaccine INGELVAC CircoFLEX® in particular clearly increasing Boehringer Ingelheim's market share, and on the other hand to the acquisition of parts of animal health business of Pfizer/Fort Dodge at the end of 2009. Animal Health's share of total net sales in the meantime stands at 7% (2009: 5%). "In Hanover, we are currently setting up a European research centre for animal vaccines. Our whole research and development in Europe will be brought together there", said Prof. Barner. Boehringer Ingelheim also expects further above-market growth in the Animal Health business.
Commenting on the Japan earthquake, Boehringer Ingelheim noted that its group of companies in Japan has been affected.
In connection with the company's products and development, Boehringer Ingelheim stated that in 2011, the innovative drug PRADAXA will contribute to further growth for the company.
At the beginning of 2011, the medication also gained approval in New Zealand, Japan and South Korea. Boehringer Ingelheim expects further approvals in Europe.
Looking ahead, the company anticipates that with Eli Lilly and Co., Boehringer Ingelheim will develop and market active substances for diabetes that are currently in mid and late-stage clinical development. The company announced this in January 2011.
The first approvals for the diabetes active ingredient linagliptin are expected already this year. Linagliptin is a dipeptidyl peptidase-4 inhibitor discovered by Boehringer Ingelheim for treating type 2 diabetes.
The markets in the developing countries and in the Asia-Pacific region have great strategic importance for Boehringer Ingelheim in the future. A forecast for this region in 2011 is at present not possible because of the current events in Japan. For 2011, the company expects robust overall growth of mid-single digit percent, noted Boehringer Ingelheim.
