-- Well-filled research pipeline in oncology, fibrotic diseases, 
       immunology and metabolic diseases 
    -- Operating growth outpaces the market in all businesses 
    -- Technical integration of the animal health business acquired 
       in 2017 successfully completed

The research-driven pharmaceutical company Boehringer Ingelheim ended 2018 with 
net sales of 17.5 billion euros. Adjusted for currency effects, as well as 
one-off effects due to the asset swap with Sanofi in 2017, net sales grew by 4 
per cent. At 3.2 billion euros (+2.8%), R&D expenses increased to 18.1 per cent 
of annual net sales.

In the process, the company has focused on specific therapeutic areas. "We want 
to make a significant contribution towards a superior treatment of cancer," 
says Hubertus von Baumbach, Chairman of the Board of Managing Directors. "In 
addition, we are conducting research, among others, into fibrotic, metabolic 
and immunological diseases. Our research pipeline is well-filled."

At almost 1 billion euros (+9%), investments in tangible assets were higher 
than ever before. Operating income again amounted to 3.5 billion euros (-0.4%), 
while Group profit after tax increased to 2.1 billion euros. "In 2018, the 
return on net sales increased from 19.3 to 19.8 per cent, while our equity 
ratio rose from nearly 38 per cent to 40 per cent. Thus we are also a very 
healthy company from a financial point of view," remarks Michael Schmelmer, 
Member of the Board of Managing Directors responsible for Finance. 

The average number of employees in all regions increased slightly to a total of 
50,370 (+2%). 

Human pharmaceuticals -- strong portfolio

At 12.6 billion euros, human pharmaceuticals contributed to 72 per cent of 
total net sales in 2018. Foreseeable declines in net sales, due to expiring 
patents for innovative medicines, were more than compensated for, this business 
thereby achieving currency-adjusted growth of 5.1 per cent. Revenues from the 
global licensing business were lower than in the previous year and have reduced 
the overall rate of growth in this business area to 3.3 per cent. 

As in previous years, the respiratory medicine SPIRIVA(R) achieved the highest 
net sales contributions with 2.4 billion euros (-11.4% currency-adjusted), 
followed by the type-2 diabetes medicine family JARDIANCE(R), including 
SYNJARDY(R) and GLYXAMBI(R), with 1.8 billion euros (+52.5% currency-adjusted), 
the anticoagulant PRADAXA(R) with 1.5 billion euros (+7.0% currency-adjusted), 
the type-2 diabetes medicine TRAJENTA(R) with 1.4 billion euros (+9.0% 
currency-adjusted), as well as OFEV(R) for the treatment of idiopathic 
pulmonary fibrosis (IPF), with 1.1 billion euros (+28.7% currency-adjusted). 

At 2.8 billion euros, research and development investments in human 
pharmaceuticals corresponded to a 22.1% share of human pharmaceuticals' net 
sales. For the total of 90 projects in all phases of the research process, the 
goal is for 75 per cent of them to be either the first molecules in their 
active ingredient class or the first in a new therapeutic area. In oncology, 
the focal points are cancers of the lung, stomach and intestine, while in 
fibrotic diseases the focus is on systemic scleroderma with interstitial lung 
disease. In metabolic diseases, non-alcoholic steatohepatitis is the main focus 
of research. In immunology, research is giving attention to chronic 
inflammatory diseases of the skin and intestine. Other projects address 
diseases of the central nervous system, such as Alzheimer's and schizophrenia, 
obesity and retinopathy. 

Animal health -- Technical integration completed

In animal health, our focus is on innovative vaccines, antiparasitic medicines 
and further therapy solutions for livestock and pets. In 2018, the three 
antiparasitic medicines NEXGARD(R), FRONTLINE(R) and HEARTGARD(R), plus the 
vaccine INGELVAC CIRCOFLEX(R), were the four best-selling products. Net sales 
of 4 billion euros represented 23 per cent of total net sales.

In the second year of the Merial transaction, this business has thereby 
achieved significant net sales growth, with a currency-adjusted rate of 5.6 per 
cent, while simultaneously undertaking integration efforts. "We have focused on 
providing our customers with continuous supply from day one. As a result, we 
have achieved good growth and the technical integration is successfully 
completed," says Hubertus von Baumbach. The innovation potential in animal 
health, where it interrelates with human pharmaceutical research, deserves 
particular attention.

Biopharmaceutical contract manufacturing maintains lead position

The biopharmaceuticals business maintained its lead position in the contract 
manufacturing segment in the financial year 2018 and provided 4 per cent of 
overall net sales. The order situation has continued to develop positively and 
provided for a high level of capacity utilization in biopharmaceutical 
production. 

Outlook for 2019

For the current financial year, Boehringer Ingelheim is expecting slight growth 
in net sales and further intensive investment activities on a comparable basis. 
"In Europe alone we are planning investments of more than 3 billion euros 
within the next five years," says von Baumbach. "The key precondition for this 
are competitive overall conditions at our European sites." 

Boehringer Ingelheim

Improving the health of humans and animals is the goal of the research-driven 
pharmaceutical company Boehringer Ingelheim. The focus in doing so is on 
diseases for which no satisfactory treatment option exists to date. The company 
therefore concentrates on developing innovative therapies that can extend 
patients' lives. In animal health, Boehringer Ingelheim stands for advanced 
prevention. 

Family-owned since it was established in 1885, Boehringer Ingelheim is one of 
the pharmaceutical industry's top 20 companies. Some 50,000 employees create 
value through innovation daily for the three business areas human 
pharmaceuticals, animal health and biopharmaceuticals. In 2018, Boehringer 
Ingelheim achieved net sales of around 17.5 billion euros. R&D expenditure of 
almost 3.2 billion euros corresponded to 18.1 per cent of net sales. 

As a family-owned company, Boehringer Ingelheim plans in generations and 
focuses on long-term success. The company therefore aims at organic growth from 
its own resources with simultaneous openness to partnerships and strategic 
alliances in research. In everything it does, Boehringer Ingelheim naturally 
adopts responsibility towards humankind and the environment. 

More information about Boehringer Ingelheim can be found on 
www.boehringer-ingelheim.com or in our annual report: 
http://annualreport.boehringer-ingelheim.com.

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SOURCE  Boehringer Ingelheim