Boehringer hit by currencies
pharmafile | August 14, 2008 | News story | Sales and Marketing |
Boehringer Ingelheim has been hit by the strength of the euro, which has hit its revenues and profits in the first half of the year.
Operating income and profits dipped in the first six months of the year, with the company saying exchange rates and investment in R&D were to blame for the fall.
Revenues were hit by the strength of the euro and the yen, with a rise of just 2.1% compared with the first six months of 2007. Adjusted for currency, sales otherwise rose nine per cent.
The company's net sales rose to 5.5 billion while operating income was 899 million euros, although the company says this will improve. There was 9% growth in local currencies in year to June, according to Alessandro Banchi, chairman of the groups board of managing directors. "We posted excellent growth in all countries," he said. "Business development in the first half of 2008 showed that Boehringer Ingelheim remains on a healthy growth path and the company continues to outpace the pharma market."
The company appears optimistic about the global market, saying it expects sales to strengthen. Boehringer Ingelheim's core prescription medicines business grew 8.5% in local currencies to EUR 4.35 billion. Key brands include Spiriva, for the treatment of chronic obstructive pulmonary disease (COPD), which was up 23.8% in the first half of 2008 compared with the previous year with sales of 976 million euros. Hypertension treatment Micardis rose 11.5% to 603 million and urological disorder drug Flomax was up 7.3% to 496 million euros). These rises continue on from 2007 as a whole, when Spiriva was up 30%, Micardis 16% and Flomax 11%.
Earlier this year, Boehringer Ingelheim received a major boost when Micardis was proved to be more effective than Aventis's gold standard Tritace in a new study. The company said the trial showed it could prevent every fifth serious cardiovascular event a significant number, since cardiovascular disease causes 17.5 million deaths per year, with the figure expected to reach 25 million by 2020. And the company's $515 million purchase this year of Actimis Pharmaceuticals (and its pipeline asthma treatment) is expected to expand on the success of Spiriva.
Meanwhile, Boehringer Ingelheim's R&D work has seen oral direct thrombin inhibitor Pradaxa, used to prevent venous thromboembolic disorders after hip or knee replacement surgery, introduced in much of northern Europe and approved in Canada and New Zealand.
Trials for other indications such as the prevention of stroke associated with atrial fibrillation, treatment of acute thrombosis and acute coronary artery disease have either begun or are in the recruitment process, the company says. And phase III studies for the compound BI 1356 (Ondero), designed to prevent type II diabetes, have also started worldwide.
On the results front, there was also growth in the consumer health care business, which takes in brands like Dulcolax, Mucosolvan and Buscopan, up 5.1% overall to 569 million euros. Meanwhile animal health, which accounts for just 4% of Boehringer Ingelheims income, was up 17.4% year on year with sales of 216 million euros.
