April 11, 2017

Boehringer Ingelheim aims to be new world leader in animal health

Three months after acquiring animal health leader Merial in a strategic transaction with Sanofi, Boehringer Ingelheim revealed its ambition to compete for industry leadership worldwide in animal health.

Boehringer Ingelheim's management discussed the importance of its animal health business and its long-term growth potential at its annual press conference in early April.

Following a positive year for the animal health business in 2016 with net sales increasing by 8.5% in currency adjusted terms to EUR1.46 billion (US$1.5 billion), Boehringer Ingelheim finalised the acquisition of Merial on January 1. With the combination of these two leading and highly complementary businesses, animal health has been identified as a strategic long-term development priority for the company.

"Acquiring Merial immediately positions us to be increasingly competitive in a high-growth sector that is in a consolidation phase. By combining two dynamic companies that share the same long-term strategic vision, we are delivering a larger and more innovative portfolio of products and services to prevent disease and improve the health and productivity of animals around the world. We actively want to help shape the animal health industry by combining our forces, one with the power of two," said Joachim Hasenmaier (pictured, right), head of Boehringer Ingelheim's Animal Health Business Unit and member of the Boehringer Ingelheim board of managing directors.

Between now and 2030, the latest forecasts predict the animal health market will double, reaching EUR53 billion (US$56 billion). This growth will be driven by three major trends: increasing demand for animal meat in connection with changing demographics, increasing demand and diversification in the pet market, and increasing health threats due to the spread of infectious diseases from animals (avian influenza, foot-and-mouth disease, etc.).

The new Boehringer Ingelheim animal health business is now the second largest company in the global animal health market, and is the top provider worldwide of parasiticides and vaccines for both production animals and pets. The combined company is now the global leader in the pets, swine, equine and veterinary public health categories, with a strong position in poultry and cattle.

"We see an important opportunity to capitalise on the evolving trends and critical needs to prevent disease and manage the health of animals worldwide," added Hasenmaier. "We intend to do so by ensuring a smooth integration of our businesses; extending our leadership in vaccination and parasite control programs, and focusing on pet care solutions. It is our ambition to develop new products and solutions that address unmet customer needs with an industry leading R&D investment up to 10%."
 

The combined animal health business will in the future represent more than 25% of Boehringer Ingelheim's total revenue and employ more than 10,000 people.

Boehringer Ingelheim expects animal health net sales to more than double in 2017 in comparison to the previous year due to the Merial integration.