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Boehringer Ingelheim MENA achieved 6.73% growth in 2014
• Numerous marketing authorisations and launches of new medicines
• Net sales globally of around 13.3 billion euros
• At 2.1 billion euros, operating income stable, with return on net sales of 16.1 per cent
Saudi Arabia - With numerous marketing authorisations for medicines and product launches in 2014, the research-driven pharmaceutical company BoehringerIngelheim is now positioned for future growth. "After a globally challenging 2014, the focus for us now is on launching numerous additional new products and on our profitability," said Professor Andreas Barner, Chairman of the Board of Managing Directors of Boehringer Ingelheim. "We were able to submita large number of compoundsfor marketing authorisation in 2014 and, with research and development expenditure amounting to just close to 2.7 billion euros, we have invested once again in the future."
Last year, the company globally generated net sales of around 13.3 billion euros. This resulted in an operating income of some 2.1 billion euros and a return on net sales of 16.1 per cent. For the current financial year, the company expects a moderate increase in net sales compared with the previous year. Boehringer Ingelheim employed more than 47,700 people worldwide in 2014, which is roughly one per cent more than in 2013.
"In 2014, Boehringer Ingelheim MENA achieved an overall 6.73% growth in sales in comparison to last year. Due to the growth of the region, Boehringer Ingelheim has extended the geographic locations to cover the Middle East, Turkey and Africa (META), with the headquarters in Dubai, United Arab Emirates. We are proud of the success of this region and are committed to continuing this growth in the coming years," explained Karim El Alaoui, Managing Director, Boehringer Ingelheim Middle East, Turkey and Africa.
Products launch and focus areas
Globally, Boehringer Ingelheim last year submitted a large number of new medicines for marketing authorisation. Medicines launched in the last few months includeda drug for patients suffering from chronic obstructive pulmonary disease (COPD), two medicines for the treatment of Type 2 diabetes, a drug for the treatment of idiopathic pulmonary fibrosis (IPF) and, at thebeginning of January 2015, an oncology product for the treatment of advanced lung cancer patients with adenocarcinoma after chemotherapy.
In the MENA region, Boehringer Ingelheim was granted 19 product registrations and launches across the various countries of the region including anticoagulant medicine for the treatment of atrial fibrillation, DPP-4 inhibitor for Type 2 Diabetes, a drug for hypertension and a new inhaler for patients of COPD. Stroke treatment and management was at the core focus of Boehringer Ingelheim in the MENA region and therefore in partnership with health authorities, physicians and different German and local Stroke associations, the company was able to establish the MENA Stroke Initiative for the development and enhancement of stroke units in the region.
Many challenges brought to a successful conclusion
Boehringer Ingelheim equityglobally was up 14 per cent in 2014 to 8.1 billion euros. The equity ratio also rose to 40 per cent. The increase in financial funds to 8.5 billion euros will secure the company's independence and provide the financial flexibility needed for future growth. Overall, this highlights the group's sound financing.
Cash flow from operating activities, at 2 billion euros, remained at a high level. Looking ahead to future developments, Boehringer Ingelheim invested in the expansion of its production capacity, for the manufacture of the COPD inhaler at its locations in Dortmund and Ingelheim.
"The pharmaceutical industry in the MENA region is currently facing several challenges which affect the patients' access to medication. However, governments in some countries have considerably increased their healthcare budgets and introduced innovation in their health systems. This has created many opportunities for growth in the region, which has helped Boehringer Ingelheim to succeed, expand and invest in the region," Bjoern Sattler, Head of Finance and Administration, Boehringer Ingelheim Middle East, Turkey and North Africa. "Part of our investment in the region was the agreement for secondary packaging in the Kingdom of Saudi Arabia for 26 products last year with Cigalah and Tabouk", added Sattler.
Prescription Medicines most important business mainstay
Boehringer Ingelheim globally last year generated net sales of 10.1 billion euros in Prescription Medicines, its most important business. At 3.2 billion euros, Boehringer Ingelheim drug for the treatment of COPD remains the company's best-selling product. One of the main growth drivers in this business in the years to come will be products for the treatment of diabetes. In 2014, the products for the treatment of type 2 diabetes already generated an increase in net sales, currency-adjusted, of around 37 per cent to 636 million euros (+ 34.2 per cent in euro terms). The anticoagulant medicinecontributed 1.2 billion euros to net sales. "We now have manyproducts from recent development on the market. For the coming five years, we plan, however, to markedly renew our sales drivers," said Hubertus von Baumbach, Member of the Board of Managing Directorsresponsible for the Corporate Board Division Finance. "Our successes in research and development are the drivers of this", added von Baumbach.
With net sales of over 1.4 billion euros, business in Consumer Health Care medicines accounted for 11 per cent of the group's net sales. The net sales, currency-adjusted, were up 2 per cent (-2.5 per cent in euro terms).
In its Animal Health business, Boehringer Ingelheim in 2014 once again generated net sales of over one billion euros. This corresponds to a currency-adjusted increase of 6.8 per cent (+5.6 per cent in euro terms) and 8 per cent of the group's total net sales. The business outperformed the market. Net sales in the animal health business rose by a currency-adjusted 18.1 per cent (+17.2 per cent in euro terms) and was thereby the main growth driver. The greatest growth here was achieved with the dog vaccine for protection against infectious diseases. Net sales increased by a currency-adjusted 33.1 per cent (+32.3 per cent in euro terms) to 69 million euros.
Boehringer Ingelheim generated net sales of 501 million euros in 2014 with the contract manufacturing of biopharmaceuticals.
Major MENA and global markets
The three most important markets globally- USA, Japan and Germany - accounted for around 55 per cent of Boehringer Ingelheim's total net sales in 2014, with net sales of around912 million euros generated in Germany, net sales of around 1.7 billion euros in Japan and around 4.6 billion euros in the USA.
Boehringer Ingelheim operates in MENA through 37 agents in the MENA region, with scientific offices in Kingdom of Saudi Arabia, Algeria, United Arab Emirates, and Egypt. The primary markets in the region are Kingdom of Saudi Arabia, Algeria, United Arab Emirates, Egypt, and Lebanon.
Outlook 2015
"Despite the challenges that the pharmaceutical industry is facing in the region, Boehringer Ingelheim META will focus on new product launches in the coming year, specifically those related to oncology, stroke and diabetes to be able to save patient's lives and provide better treatment outcomes. We are confident that we are well positioned for growth and development in our various markets, "added El Alaoui.
Further information on the 2014 financial year is available for download from the Boehringer Ingelheim website at http://www.boehringer-ingelheim.com/news/annual_press_conference.html
• Annual Report 2014:
http://annualreport.boehringer-ingelheim.com
The Annual Report is also available as an app (for iPad and Android tablets) on the App Store and at Google Play.
• Keynote speeches and presentations from the Annual Press Conference 2015:
http://www.boehringer-ingelheim.com/news/annual_press_conference.html#tabs-1-2
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About Boehringer Ingelheim
The Boehringer Ingelheim group is one of the world's 20 leading pharmaceutical companies. Headquartered in Ingelheim, Germany, Boehringer Ingelheim operates globally with 146 affiliates and a total of more than 47,700 employees. The focus of the family-owned company, founded in 1885, is 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, such as the initiative "Making more Health" and caring for the employees. Respect, equal opportunities and reconciling career and family form the foundation of the mutual cooperation. In everything it does, the company focuses on environmental protection and sustainability.
In 2014, Boehringer Ingelheim achieved net sales of about 13.3 billion euros. R&D expenditure corresponds to 19.9 per cent of its net sales.
For more information please visit http://www.boehringer-ingelheim.com
For any further information, please contact:
Boehringer Ingelheim
Sara Shamel
Communication Manager - NEMEA
Mobile: +971 55325 8101
Fax: 971 4 4233637
Email:sara.shamel@boehringer-ingelheim.com
Memac Ogilvy PR
Saad Abu Touq/ Caroline Afara
Email: saad.abutouq@ogilvy.com
caroline.afara@ogilvy.com
Tel: +971 (0)4 305 0314/ +971 (0)4 305 0324
© Press Release 2015
