Strong international growth at Boehringer Ingelheim

19-Aug-2004

Excellent US business delivered the pharmaceutical group Boehringer Ingelheim strong growth in the first six months of 2004. Sales were up by almost 7 percent at EUR 3.7 billion. Operating income was 25 percent higher against the previous year. "We are satisfied with how business has developed so far," commented Dr Alessandro Banchi, Chairman of the Board of Managing Directors. "We are ahead of target but still need to make considerable efforts, particularly where newly launched products are concerned." He named as "important milestones for the future development" of the company the launch of the respiratory product Spiriva® in the USA two months ago and the successful outcome of the inspection of the new biotechnological production plant in Biberach/Riss, Germany, conducted by the American and European regulatory authorities.

The strong euro continued to impact on sales figures in the half-year. In terms of sales in local currencies, Boehringer Ingelheim posted almost 12 percent growth. According to the company's own estimates, this is once again well ahead of the world pharmaceutical market. Boehringer Ingelheim confirmed its prognosis for the year 2004 which foresees double-digit sales growth in local currency terms.

While sales in the USA rose by almost 14 percent (by as much as 27 percent in dollar terms) to just under EUR 1.3 billion, business of German operating company stagnated (+0.4 percent to EUR 425 million, including exports). The company attributed this chiefly to political decisions, such as compulsory rebates. Spain and Canada both showed very positive development in the first half of 2004. The company continues on it's course of expansion, which further requires an increase in headcount. In the first half-year more than 600 new positions were created (+2 percent), primarily in the USA. The field force is to be expanded considerably.

In addition to the major drugs Spiriva® and Micardis® (against high blood pressure), products that promise blockbuster potential, also duloxetine, a dual serotonin and norepinephrine re-uptake inhibitor developed jointly with U.S.-based Eli Lilly and Company, offers new medical prospects. Duloxetine is initially earmarked for two treatment indications: depression (tradenames Cymbalta® and Xeristar®) and stress urinary incontinence in women (tradenames Yentreve® and Ariclaim®). Upon regulatory approval, Boehringer Ingelheim and Lilly will be co-promoting or co-marketing these products in most countries except Japan. In the U.S. the agreement excludes neuroscience indications. First launches of in both indications are expected soon.

Boehringer Ingelheim's most successful product is still Flomax®, a drug for benign enlargement of the prostate, sales of which totalled EUR 370 million in the first half of 2004. Investments in fixed assets declined following the completion of major projects.

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