2019 performance: stronger foundation to absorb global effects of COVID-19 pandemic

Boehringer Ingelheim has stepped up its efforts in the fight against the COVID-19 pandemic. The company is offering support and relief through multiple initiatives under its Global Support Program, backed by strong business performance in previous years, including 2019. This strong basis also allows the company to maintain its investment levels to ensure further discovery, development, production and supply of highly innovative medicines that are needed by patients around the globe.

“As a research-driven pharmaceutical company, Boehringer Ingelheim is an active partner in the global movement to fight COVID-19. We are pleased that our business performance last year allows us to contribute to finding solutions to combat the virus,” said Hubertus von Baumbach, Chairman of the Board of Managing Directors. “At the same time, we remain fully dedicated to reliable drug supply. And we are also working hard to minimize the impact of the pandemic on our global research and development programs. These are extraordinary times, but they make us acutely aware of our purpose to serve where the medical need is high.”

Boehringer Ingelheim actively engages in the fight against COVID-19 through its Global Support Program
Millions of patients around the world are dependent on the company’s medicines. Boehringer Ingelheim is doing everything possible to keep production for all medications running and to secure delivery. This also includes the supply of treatments to pet and livestock owners for their animals.

Over the past decades, Boehringer Ingelheim has gained considerable knowledge in various therapeutic areas, such as respiratory diseases and virology. Building on this know-how and experience, the company is engaged in several activities to find medical solutions to the pandemic, together with academic researchers, public institutions, international consortia and other members of the biopharma industry.

Scientists at Boehringer Ingelheim are currently searching for novel virus-neutralizing antibodies. The company is screening its entire 1 million molecular library for compounds that could target the virus. Furthermore, Boehringer Ingelheim is actively participating in COVID-19 projects in several research consortia, including the Innovative Medicines Initiative of the European Union and an initiative led by the Bill and Melinda Gates Foundation.

Besides the significant research contribution, other elements of the Global Support Program include a $6.4 million (€5.8 million) donations fund, paid leave for its 51,000 employees to volunteer for COVID-19 relief, and over $630,000 (€580,000) in relief funds for social entrepreneurs and their communities in Kenya and India, supported by the company through its Making More Health program.

Strong performance in 2019 strengthens capital base
The COVID-19 Global Support Program follows strong business performance in 2019. Adjusted for currency effects, net sales increased by 5.7% year to year to $21.3 billion (€19 billion). To drive long-term growth, Research and Development (R&D) investments increased by 9.4% to nearly $3.9 billion (€3.5 billion), or 18.2% of net sales, mainly driven by new products and pipeline advances in existing projects.

High liquidity and equity base
In 2019, the company invested $1.2 billion (€1.1 billion; 2018: € 950 million) in fixed assets. Operating income at the Boehringer Ingelheim Group level rose by around 9% to $4.3 billion (€ 3.8 billion), while net income after taxes increased to $3 billion (€2.7 billion; 2018: € 2.1 billion). Cash flow from operating activities increased to $3.7 billion (€3.3 billion). At the end of 2019, the equity ratio was at 44% (2018: 40%).

“Our solid capital base has allowed us to shield our operations and workforce from the impact of COVID-19,” said Michael Schmelmer, Member of the Board of Managing Directors with responsibility for Finance and Group Functions. “We are seeing the fruits of our past investments into our IT infrastructure and digital technology. Nearly 40,000 of our employees have been able to work uninterrupted from home. We can be in contact with physicians through our online platforms. And we can offer veterinarians to diagnose pets remotely through our PetPro digital platform in the US. In times where social distancing is so important, we are digitally close to our colleagues, our customers and our partners.”

Human Pharma – Strong growth across all regions
The Human Pharma business was the company’s main growth driver in 2019. At $15.7 billion (€14 billion), human pharmaceuticals grew by 8% (currency-adjusted) and made up 74% of total net sales. All regions contributed to the strong results in Human Pharma. Medicines against respiratory diseases, as well as cardiovascular and metabolic diseases remain the most important contributors to net sales. For the first time, JARDIANCE®, a medicine for the treatment of type 2 diabetes that also reduces the risk of cardiovascular death in adults with type 2 diabetes and known cardiovascular disease, was the biggest revenue contributor in Human Pharmaceuticals.

Strong R&D investment in Human Pharma
R&D investments in the Human Pharma business amounted to $3.3 billion (€3 billion) or 21.8% of its net sales. There are some 100 projects across all phases of the research process. The goal is for 75% of these projects to be either the first molecule in their active ingredient class or in a new therapeutic area. The focus of R&D in Human Pharma includes cardiovascular and metabolic diseases, oncology, respiratory, immunology, diseases of the central nervous system and retinal health.

Animal Health – Solid results in a highly competitive market
The Animal Health business of Boehringer Ingelheim is one of the largest providers of veterinary vaccines and medicines and has a strong presence in the livestock and pets segments. While net sales increased in the pets segment, sales in the swine segment were negatively impacted by the outbreak of African swine fever, especially in China. Overall, the Animal Health business delivered a solid performance in a highly competitive market with net sales of $4.5 billion (€4 billion) in 2019 (-0.7% adjusted for currency effects). The antiparasitics portfolio performed strongly in 2019 and is an important category for the business. NEXGARD® was the best-selling product, with net sales of $828 million (€740 million; +17.1% year to year and adjusted for currency effects).

Biopharmaceutical Contract Manufacturing – One of the leading providers in the industry
Boehringer Ingelheim is one of the leading manufacturers of biopharmaceuticals. 70% of the top 20 pharmaceutical companies and innovative biotech firms are clients of Boehringer Ingelheim’s Biopharmaceutical Contract Manufacturing business, known under the brand name Boehringer Ingelheim BioXcellence™. The biopharmaceuticals business achieved net sales of $880 million (€786 million in 2019; +7.1% year to year and adjusted for currency effects).  

The 2019 Annual Report can be found here: https://annualreport.boehringer-ingelheim.com/.

Media Contact:
Michele Baer
Email: michele.baer@boehringer-ingelheim.com
Phone: +1 (917) 584-9293