Boehringer Ingelheim announced on the 25th that last year’s net sales increased 3% from the previous year, reaching 19.5 billion euros (about 26.2 trillion won). Operating profit was 4,620 million euros (about 620 trillion won), an increase of about 840 million euros (about 1.1 trillion won) from 3.78 billion euros in 2019 (about 5 trillion won). It was reported that the total R&D expenses last year reached 3.7 billion euros (about 5 trillion won), up 7% from the previous year. This corresponds to 18.9% of net sales.
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Hubertus von Baumbach, Chairman of the Boehringer Ingelheim Management Board, said, “Boehringer Ingelheim recognized the urgency of responding to Corona 19 and began R&D on therapeutic candidates from the beginning of the first quarter of 2020. In order to do so, we are conducting research with several partners around the world.” Boehringer Ingelheim started R&D with partners around the world on’BI 767551′, a candidate substance for the treatment of Corona 19 from the first quarter of last year. It is expected to be used as the first inhaled treatment and preventive agent as it has entered the clinical phase 1 and 2a. Chairman Baumbach said, “It will be the first treatment to be administered by inhalation as an antibody treatment,” he said. “It is unique in that it is delivered directly to the area where it has to fight the virus, and it will require less dose than systemic treatments.” To the question about the launch timing of the product, he replied, “It is difficult to predict the exact timing, but by the end of this year, enough data is secured so that we can apply for emergency approval.”
Boehringer Ingelheim’s largest customer, net sales of human medicines, grew 5.8% year-on-year to 14.42 billion euros, accounting for 74% of total net sales. All regions have contributed to the growth of sales of human medicines, and the United States maintained its largest market position with the highest net sales. Net sales of human drugs in the United States reached 5.66 billion euros, an increase of 3.4% year-on-year, and net sales of EUCAN regions (Europe, Canada, Australia, and New Zealand) were 4.59 billion euros, up 6.0% from the previous year.
The animal medicine division recorded net sales of 4.12 billion euros, up 5% year-on-year, showing solid performance in the fiercely competitive market. In particular, the pig farming and companion animal repellent division recorded outstanding growth, surpassing expectations. In 2020, the decline in the incidence of African swine fever in China caused a reactionary effect in the swine medicine sector, and net sales of Ingelbag Circoflex, a swine vaccine vaccine, rose 14.9% year-on-year to 264 million euros. Dog repellent NexGuard maintained its position as a bestseller, with net sales of 840 million euros, up 12% year-on-year.
Boehringer Ingelheim is one of the leading biopharmaceutical manufacturing companies, and BioXcellenceTM, a biopharmaceutical consignment production business, has 60% of the 20 global pharmaceutical and innovative biotech companies as customers. Net sales of the biopharmaceutical consignment production business increased 6.6% year-on-year to 837 million euros. Michael Schmelmer, director of finance, Boehringer Ingelheim’s management board, said, “We can’t talk about the evaluation of our competitors,” when asked about the competitive advantage compared to Samsung Biologics. “We maintain a strong relationship with our customers. “It has been done and its reliability is a major success in the market.”
Boehringer Ingelheim predicts that this year’s performance will be affected by the Corona 19 pandemic and the difficult industry environment due to increased price pressure in several major markets. When the Corona 19 vaccine contributes to controlling the current situation, strong growth in the prescription drug market is expected overall, and net sales in 2021 are expected to increase slightly compared to the previous year based on the adjustment of the exchange rate effect.