Boehringer Ingelheim Reports 2013 Fiscal Year Results

Ingelheim, Germany, April 15, 2014 – Boehringer Ingelheim, the world’s largest privately held pharmaceutical company, announced results for the 2013 fiscal year today. The company reported the following highlights:

Full Year Highlights

  • Despite challenges, Boehringer Ingelheim increased operating income and return on net sales.
  • Net sales reached approximately €14.1 billion, which represents an increase of 1.4 percent, currency-adjusted (-4.3 percent in euro terms).
  • There was a 2.4 percent improvement in the return on net sales to 15 percent.
  • The company expects net sales in 2014 to remain at a comparable level to 2013.
  • Boehringer Ingelheim now employs more than 47,400 people worldwide, a three percent increase over last year.

"Last year was marked with many successes and some challenges for Boehringer Ingelheim," said Professor Andreas Barner, chairman of the board of managing directors. "We concentrated on the long-term development of the company, and broke into new markets."

Boehringer Ingelheim successfully entered the oncology market with the launch of afatinib under the brand name of GILOTRIF® in the United States, followed by launches in the European Union under the name of GIOTRIF®. Striverdi® Respimat® (olodaterol) received its first approvals in the European Union in late 2013, continuing our leadership in the respiratory market.

New launches planned

In the next two years, Boehringer Ingelheim plans to launch ten products across eight therapeutic areas: diabetes, chronic obstructive pulmonary disease (COPD), asthma, lung cancer, idiopathic pulmonary fibrosis (IPF), acute myeloid leukemia (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 of immunology and disorders of the central nervous system (CNS)," said Barner.

Sound equity structure and financing

"Boehringer Ingelheim finished 2013 well, despite some challenges and the negative impact of exchange rates," said Hubertus von Baumbach, member of the board of managing directors. "The company continued to invest substantially in research and development. Expenditure for research and development as a share of net sales rose from 19 percent in 2012 to 19.5 percent in 2013."

"With a 15 percent increase in equity to €7.1 billion and an equity ratio up approximately three percentage points to 39 percent, Boehringer Ingelheim is in a sound financial position. The increase in financial funds to €7.5 billion gives the company the financial flexibility for future sustainable, organic growth."

At €1.8 billion, cash flow from operating activities in 2013 ensured that investments were fully covered. Boehringer Ingelheim invested a total of around €600 million in tangible and intangible assets. The company increased its production capacity for the RESPIMAT® inhaler at its German facilities in Dortmund and Ingelheim at a cost of €57 million. Boehringer Ingelheim invested a further €23 million in the extension of the production facilities and the chemical research and development laboratory in Shanghai, China.

Prescription medicines the core of our business

Last year, Boehringer Ingelheim generated net sales of just under €11 billion in prescription medicines. This represents an increase of 1.4 percent, currency-adjusted (-4.5 per cent in euro terms), and 77 percent of total net sales. PRADAXA® (dabigatran etexilate mesylate) was a key growth driver, with net sales increasing by more than 16 percent, currency-adjusted (+8.8 per cent in euro terms), to €1.2 billion. SPIRIVA® remained the company’s most successful medicine. Net sales were up 3.8 percent, currency-adjusted (-0.3 per cent in euro terms), to around €3.5 billion.

In over-the-counter medicines Boehringer Ingelheim achieved a 6.3 percent increase in net sales, currency-adjusted (-2.1 percent in euro terms). Net sales generated in 2013 amounted to approximately €1.5 billion. This represents 11 percent of total net sales. The international core brands of BUSCOPAN®, DULCOLAX®, MUCOSOLVAN® and PHARMATON® were the most successful Consumer Health Care medicines in the company’s product suite.

Boehringer Ingelheim exceeded the €1 billion mark in net sales for our Animal Health business. This represents an increase of 4.5 percent, currency-adjusted (+0.8 per cent in euro terms), and eight percent of total net sales. The best-selling product, with net sales of €260 million, was the swine vaccine INGELVAC CIRCOFLEX®. With an increase of 20.9 percent, currency-adjusted (+16.2 percent in euro terms), INGELVAC® PRRS, for the active immunisation of pigs against an infectious respiratory disease, achieved the greatest growth.

In Biopharmaceuticals, Boehringer Ingelheim generated net sales in 2013 amounting to €449 million.

Germany, Japan, and the U.S. are the three most important sales markets

The three most important markets to Boehringer Ingelheim’s business, Germany, Japan, and the U.S., accounted for approximately 60 percent of Boehringer Ingelheim’s total net sales in 2013. In Germany, the company generated net sales of around €1 billion. In Japan, the company generated net sales of over €1.8 billion and in the U.S. around €5.2 billion. Euro reported net sales were impacted by exchange rates in the U.S. and Japan.

More information on the 2013 financial year is available for download from the Boehringer Ingelheim website at http://www.boehringer-ingelheim.com/news/annual_press_conference.html

For product information, including Complete Prescribing Information, please visit http://us.boehringer-ingelheim.com/our_products.html

About Boehringer Ingelheim

The Boehringer Ingelheim group is one of the world’s 20 leading pharmaceutical companies. Headquartered in Ingelheim, Germany, it operates globally with 142 affiliates and more than 47,400 employees. Since it was founded in 1885, the family-owned company has been committed to researching, developing, manufacturing and marketing novel medications of high therapeutic value for human and veterinary medicine.

Social responsibility is a central element of Boehringer Ingelheim's culture. Involvement in social projects, caring for employees and their families, and providing equal opportunities for all employees form the foundation of the global operations. Mutual cooperation and respect, as well as environmental protection and sustainability are intrinsic factors in all of Boehringer Ingelheim’s endeavors.

In 2013, Boehringer Ingelheim achieved net sales of about €14.1 billion. R&D expenditure corresponds to 19.5% of net sales.

For more information, please visit http://us.boehringer-ingelheim.com, and follow us on Twitter at http://twitter.com/boehringerus.