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125 years more health 1885 – 2010 Corporate Magazine 2010 content innovation 05 Extracts from our Leitbild* 06 In conversation with Christian Boehringer and Andreas Barner 10 125 years more health: The jubilee year 2010 * guiding principles 12 the company history: 12 1885 ― 1912 | how it all started 14 1912 ― 1948 | innovative beginnings 16 1948 ― 1988 | internationalisation 19 1988 ― 2010 | value through innovation 22 corporate responsibility CR 24 Be respected. Be encouraged. Be innovative. 28 Our employees 38 Sustainability 46 Corporate Citizenship 66 Be first. Be best. Be focused. 74 Medical innovation 78 Be first. Thrombo-embolic diseases 84 Be best. Diabetes 90 Be focused. Oncology 99 Idiopathic pulmonary fibrosis 64 research and development R&D 100 Hepatitis C 104 Be committed. Be reliable. Be successful. 106 Human Pharmaceuticals * 108 Prescription Medicines 102 our businesses BIZ 118 Consumer Health Care 126 Biopharmaceuticals 136 Operations 152 Animal Health * The patient reports are authentic reports which refer to personal experience only. Please note that other patients may experience different treatment results. Individual treatment regimes have always to be discussed between patient and physician case by case. Content 125 years more health The jubilee year 2010 For the past 125 years our basic principles and claim have remained to be outstanding in innovation and technology. It is our endeavour to translate groundbreaking discoveries concerning the causes and course of human diseases into ever-improving methods of treatment. Guarantors of this are our employees. They form the core of our distinctive corporate culture that lives out its responsibility and builds on mutual respect and fairness. Read more about the jubilee year page 10 Extracts from our Leitbild * Boehringer Ingelheim has been a successful, family-owned business for 125 years and intends to remain so for the second century of its existence. Although it is impossible to predict the future precisely, we are actively and creatively facing the changing tasks and challenges, building on our experiences and achievements. This gives us the strength, direction and confidence to shape our future. We have committed ourselves to the goal of serving humankind through research into diseases and the development of new drugs and therapies. In this endeavour the future of our company will depend on its innovative capability. In all our activities we safeguard our employees, facilities and the environment from harmful influences, conserve natural resources and promote environmental awareness. Parallel to pursuing these goals we seek to foster economic and social well-being in the countries and communities where we do business. In order to realise our goals, we must be financially successful, be willing to make the necessary changes, and be critically receptive to new ideas and developments. Maintaining and improving the performance of the company take precedence over maximising earnings in the short term. * guiding principles Extracts from our Leitbild 5 innovation In conversation Be entrepreneurial. Improve the established. Develop the new. As in the past, it will also be true in the future that continual but steady changes will be necessary in order be equipped at any time for the future. And here it is important for us to have a constant – our values and culture of togetherness for researching, developing, producing and marketing innovative medicines – borne by a family-owned company. christian boehringer chairman of the shareholders’ committee 6 Boehringer Ingelheim annual report 2010 andreas barner chairman of the board of managing directors In conversation 7 In conversation innovation What are Boehringer Ingelheim’s corporate goals? christian boehringer: “In 2010, we celebrated a special jubilee: the 125-year existence What does being entrepreneurial mean for Boehringer Ingelheim? christian boehringer: “For this we have of our family-owned company, Boehringer Ingel- clear framework conditions: we, the shareholder heim. In conjunction with this we were able to family, today, as before, set a reliable financial experience how strong and vital the basic princi- framework and provide continuity in the strate- ples and claim of the shareholder family also gic orientation of the company. We thereby create remain, having taken form when the company the preconditions for the stability, profitability was founded in 1885: to be outstanding in inno- and sustainable growth of the company. vation and technology – Value through Innovation. I like to use the image of a tree. The roots of the Boehringer Ingelheim tree give the tree nutrients What in the years since the company was founded and hold. The nutrients are the capital which the in 1885 with the production and opening up of new shareholders make available to the company, via markets for lactic acid, has continually developed the profit, the bulk of which is reinvested, so that further and is today a modern, highly innovative the company can grow. The hold is the share- pharmaceutical company in family hands.” holders‘ long-term strategy to develop innovative medicines for people and animals and to avoid andreas barner: “This corporate goal of short-term trends or divergencies from our Boehringer Ingelheim runs like a theme through course. On this solid fundament stands the its 125-year history. It is the endeavour to trans- trunk, that is all the employees who in the spirit late groundbreaking discoveries concerning the of a stable partnership with the shareholders im- causes and course of human diseases into ever- plement stable our strategy. Only in this way do improving methods of treatment. Boehringer the branches bear fruit, our products that we can Ingelheim concentrates on innovation in all successfully bring to the market. The shareholders areas, not only in human medicine, but also in are, on the one hand, engaged at the operative veterinary medicine and allied technology. level with Hubertus von Baumbach on the Board of Managing Directors. On the other hand, the With innovative research and development six shareholders on the Shareholders’ Commit- projects the company wishes to close the thera- tee, as well as all the other shareholder too, have peutic gaps with new medicines that improve the a great interest in the employees and matters of survival chances and quality of life of patients. importance at the company.” Where medical need exists today – and we see this in many places – we deploy our research How does Boehringer Ingelheim want to improve efforts. pradaxa®, our innovative thrombin in- what it has already established? hibitor, is an example in which this has succeeded in a particularly convincing way. christian boehringer: “We, the shareholders, regard ourselves as trustees of the lasting success of company. The family-owned company In implementing this endeavour, Boehringer Boehringer Ingelheim should continually be in a Ingelheim has always followed its own course: position to research, develop, produce and market the company has traditionally confronted change innovative medicines for the benefit of people and successfully practiced continuity in change and animals. with persistence and patience.” 8 Boehringer Ingelheim annual report 2010 The relationship of trust between the shareholders tung (charitable foundation) provides funding and the Board of Managing Directors provides totalling EUR 100 million over 10 years for the us shareholders with far-ranging informational Institute of Molecular Biology (IMB), which opportunities. It promotes the understanding should open up new possibilities for diagnoses of the individual businesses and has the advantage and therapies through basic research. In addi- when decisions are faced that one has a good tion, the company has established the Boehringer shared knowledge beforehand and a grasp of Ingelheim Venture Fund with an initial contribu- the opportunities and risks. tion of EUR 100 million. Our approach is to gain broad access to the newly emerging therapy con- Decisions are then taken jointly with the Board cepts and new technology platforms, and thereby of Managing Directors in our corporate bodies. participate in the therapeutic opportunities of to- This is in keeping with the culture, deeply rooted morrow. Thus, as a company, we think very long in the company, of mutual trust and fairness term and in doing so must always be up-to-date between the shareholder family, the Board of and mobile in order to be able at the same time to Managing Directors and our employees. remain traditional and constant. We want to safeguard this special culture for As in the past, it will also be true in the future the future, so that our employees continue to that continual but steady changes will be neces- find Boehringer Ingelheim attractive, and, at sary in order be equipped at any time for the fu- the same, gain new employees for the family- ture. And here it is important for us to have a owned company and creating the future.” constant for the next 125 years – our values and culture of togetherness for researching, develop- What does developing the new mean for ing, producing and marketing innovative medi- Boehringer Ingelheim? cines – borne by a family-owned company.” andreas barner: “This is how we will continue to grow: the shareholders and the Board of Managing Directors jointly discuss possible social changes and openly and prepared address the signed by changes of the future. Developments in medicine christian boehringer and in society must be anticipated so that we chairman of the shareholders’ committee in the company can, specifically where long research and development cycles are concerned, develop the company in a targeted way, thereby securing the supreme goal of independence for signed by the next generation. andreas barner chairman of the board of managing directors Three examples show our long-term thinking clearly: Boehringer Ingelheim supports the Research Institute of Molecular Pathology (IMP) in Vienna, Austria, where more than 200 scientists from 30 countries conduct basic research with the focus on oncology. And at the University of Mainz, Germany, the Boehringer Ingelheim Stif- In conversation 9 125 years more health The jubilee year 2010 125 years more health: The jubilee year 2010 We know that Boehringer Ingelheim faces a world full of challenges. Our celebrations in the 125th year of our existence were therefore designed to meet the coming changes with self-confidence and to concentrate ourselves where we best can: giving the world more health. More than a pharmaceutical company – More than a logo Hello, I’m Me/We: Boehringer Ingelheim is a company I am the symbolic figure that accompanies all the jubilee celebrations at Boehringer Ingelheim around the globe. I stand at the same time for the great importance of the individual and the teams in our company: without “Me” no “We”, and the reverse. with a special history that has in 125 Welcome to 125 years more health. years enabled it to become the world’s largest family-owned pharmaceutical company. Just as special to the company jubilee is the symbolic figure Me/We. This is not just a simple logo, but an attempt to portray the spirit of Boehringer Ingelheim. 10 Boehringer Ingelheim annual report 2010 This symbol stands for the success, joy Christian Boehringer, as Chairman of and pride at the celebrations around the Shareholders’ Committee, opened this special year. Me/We lives, as it a colourful and attractive programme derives directly from the symbolic in front of thousands of guests. Be- world of the corporate programme of sides many entertainment options for many years, Vision and Leadership, young and old, the whole of the Boeh- as well as Lead & Learn, making ringer Ingelheim world was to be them three-dimensional. Its reference brought primarily before the eyes of to the world of chemistry and pharma- family members. To be discovered ceutical research is unmistakeable. were highlights from the company his- Me/We should enter the real world. tory on display walls, production with The symbolic figure has therefore since examples of machine presentations, the jubilee year been found worldwide and pharmaceutical research. as a sticker, display, 3D figure or giant projection at buildings on Boehringer Ingelheim sites. The title of the Boehringer Ingelheim company history With people – for people, that was published for the company’s 125-year jubilee, can also Organisational structures and processes must be designed to facilitate and promote entrepreneurial thinking and action, flexibility and responsibility. The core element of corporate culture is set out in the company’s vision Value through Innovation. In order to ensure perpetual innovation throughout the company, Boehringer Ingelheim relies on flexible, mobile employees with selfconfidence, accountability and the ability to think and act in a global context. The motto of our corporate responsibility Living our values refers to our pledge to create a working environment that promotes entrepreneurial thinking and action, continual knowledge-building, further education and employee identification with the company. be conveyed totally in terms of Boehringer Ingelheim’s fundamental social awareness, at the start of the worldwide celebrations on 3 – 4 September 2010 in Ingelheim. At the official Rhineland-Palatinate Minister-Presi- The company’s efforts are aimed at creating medicines and treatments that offer significant therapeutic benefits to patients. Highly skilled, motivated employees are the company’s key asset and a guarantee of its innovative power and performance. And all employees help to ensure that Boehringer Ingelheim can meet its responsibilities and fulfil its tasks. With people – for people reception, attended by Kurt Beck, the Our guiding principles for 2010 Watch our special Jubilee website: www.jubilee125.com dent, and Cardinal Karl Lehmann, the Bishop of Mainz, the speech of the well-known futurist Matthias Horx stood out particularly, dealing with social change and the consequences for the healthcare system. Horx predicted that a new healthcare system – from hi-tech to hi-care medicine, to which Boehringer Ingelheim can certainly make its contribution. The celebrations had a very special value for all employees with their families in Germany. 125 years more health 11 The company history 125 years more health 1885 ― 1912 | how it all started On 24 July 1885, a small tartaric acid factory in Ingelheim, in the Rhinehessen region of Germany, changed hands. On 31 July, the following entry was recorded in the trade register of the nearby town of Bingen: “Albert Böhringer, chem. Fabrik vom 1. Aug. 1885 ab”. At the age of nearly 24, Albert Boehringer had decided to become an entrepreneur. [ 1885 ] Ernst Boehringer purchases in the name of his brother Albert, a small tartaric acid factory in Ingelheim in the Rhinehessen region of Germany, noted in the trade register as “Albert Boehringer, chemical factory from 1 August 1885”. [ 1893 ] (Picture: Albert Boehringer) In memory of his father Christoph Heinrich, Albert Boehringer changes the company’s name to C.H. Boehringer Sohn (CHBS) as of 1 January and appoints his mother as a limited partner. He plans and builds his own house in Ingelheim, subsequently known as the Founder’s Villa. Whilst attempting to produce citric acid, an unwanted fermentation leads to the creation of lactic acid. Not abandoning this process, Albert Boehringer now possesses a method to produce lactic acid on an industrial scale. [ 1886 ] Albert Boehringer starts producing tartaric acid. 1885 1890 1895 Successful research and development Innovation as a corporate task special direction of a family-owned that leads to the production and mar- On 3 September 2010, some hundred company runs as recurrent theme keting of innovative medicines has a guests sat at Boehringer Ingelheim’s through Boehringer Ingelheim’s histo- long tradition at Boehringer Ingelheim, official 125-year celebration in Ingel- ry. In the vision Value through Inno- totalling 125 years in 2010. In this peri- heim, Germany. This special day was vation the idea of a special company, od, a highly innovative pharmaceutical possible because one man – Albert which always applied to Boehringer company developed from its Ingelheim Boehringer – had 125 years earlier a Ingelheim, has since 1885 found con- tartaric acid factory embryo. vision and bought a small tartaric acid cise expression. When Albert Boeh- factory in Ingelheim. Since then, the ringer, under the then company name unconditional will to innovate and the C.H.Boehringer Sohn (CHBS), began 12 Boehringer Ingelheim annual report 2010 [ 1910 ] [ 1895 ] The 25th anniversary of CHBS. The company now has 156 employees. Paid holidays, based on the length of company service, are introduced. Lactic acid is produced on an industrial scale. CHBS registers its first patent – for a lactic acid-based baking powder. [ 1907 ] A benefit fund for retired workers is set up. [ 1902 ] The first company health insurance system is established. [ 1912 ] [ 1905 ] laudanon®, a painkiller based on six alkaloids of opium, is the first pharmaceutical specialty product by CHBS. For the first time, the company logo displays an image of Charlemagne’s imperial palace in Ingelheim. 1900 1905 producing tartaric acid he could not to think about financial support and imagine that his factory would turn social benefits for his employees and into the world’s largest family-owned their families. Where possible, he had pharmaceutical company. But he rec- certainly already been helping people ognised the existential significance of in need. But now he could, as it were, innovation for both his factory and institutionalise the contributions. Key the first employees. After the nascent here were the establishment of a com- economic success of the industrial pany insurance scheme in 1902 and production process for lactic acid, the setting up of a benefit fund for re- Albert Boehringer was now also able tired workers in 1907. 1910 How it all started 13 The company history 125 years more health 1912 ― 1948 | innovative beginnings Important decisions had to be made for Boehringer Ingelheim. It was a matter of reorganising the company and surviving the consequences of two world wars. The death of Albert Boehringer in 1939 brought the founding era to an end, but not the history of Boehringer Ingelheim. Both his sons and his son-in-law seamlessly continued his work. [ 1923 ] [ 1920 ] On 11 August – Albert Boehringer’s 62nd birthday – CHBS provides emergency funds in response to hyperinflation. The cardiovascular drug cadechol®, a camphor-based product made water-soluble through bile acid, is launched. [ 1915 ] During World War I, Albert Boehringer is on military service until 1917. His nephew, Robert Boehringer, takes charge of CHBS. [ 1921 ] [ 1917 ] Following the advice of the chemist Heinrich Wieland (1877 – 1957), a cousin of Albert Boehringer, the first research department is founded. 1915 Heinrich Wieland and his brother, pharmacologist Hermann Wieland (1885–1920), isolate the pure alkaloid lobelin from the Lobelia inflata plant. It is launched in the same year under the scientific name lobelin®. In 1936, it will be produced synthetically and on an industrial scale. 1920 Being innovative also means identify- matter of filling the pipeline. In the ing the opportunities of new business following years, a whole row of medi- areas at the right time. Two years after cines for different purposes came on the company’s 25-year jubilee in 1910, the market: the cardiovascular drug the launch began on the first pharma- cadechol® (1920), the stimulant lo- ceutical preparation laudanon®, an belin® (1921) and the asthma medica- analgesic, which was important to the tion aludrin® (1941). decisive transition from chemicals to pharmaceuticals in the later development of the company. Now it was a 14 1925 Boehringer Ingelheim annual report 2010 [ 1941 ] Work begins on the production of citric acid from citrate calcium for the foodstuffs, drinks and tobacco industry. aleudrin®/aludrin®, the innovative broncholytic, which belongs to the sympathomimetics group, is launched. aludrin® is the first CHBS asthma drug and paves the way for betablockers. After World War II, the allied forces confiscate the patent. [ 1930 ] Heinrich Wieland is awarded the Nobel Prize for chemistry. The cardiovascular medication sympatol®, an adrenaline derivative is launched. The baking and nutrition department is opened. [ 1932 ] 562 [ 1927 ] [ 1941 ] CHBS now employs 1,500 people. [ 1946 ] The new company Dr. Karl Thomae GmbH is formed in Biberach on Riss, employing 70 people. The painkiller thomapyrin® is launched. CELA, Agricultural Chemicals GmbH, is formed to produce pesticides to fight the Colorado beetle infestation. The number of employees drops to 562 during the global economic crisis. 1930 1,500 [ 1933 ] 1935 1940 Under the sign of totally synthetic After the end of World War II, it was Cie. in Winnenden, southern Garmany. production important for the company to again This company was re-established in In 1921, the natural alkaloid lobelin make available to patients medicines 1946 in Biberach, where, under the was iolated from the plant Lobelia in- to meet medical needs. In this situa- name Dr. Karl Thomae GmbH, 70 flata. The same year saw for the first tion, employees at a subsidiary also employees, starting that year, produced time successful wholly synthetic pro- demonstrate once again their ability to and marketed the painkiller thomapy- duction. This step was an important innovate. rin®, still a self-medication classic precursor of the first wholly syntheti- today. cally produced asthma medication In 1928, Albert Boehringer acquired aludrin®. the chemical company Dr. Karl Thomä & Innovative beginnings 15 125 years more health The company history 1948 ― 1988 | internationalisation For a long time, the owner family wanted to expand its business abroad, but circumstances, world political events, and also the lack of available capital, had repeatedly stopped them from doing so. The decades following the end of World War II opened up opportunities to realise the dream of internationalisation, supported by skillful planning and a corporate world vision. [ 1956 ] [ 1949 ] Boehringer de Angeli Quimicia e Farmaceutica Ltda, São Paulo/Brazil, is established. After mediation by Robert Boehringer, a long and fruitful collaboration with the Swiss Pharmaceutical company J.R. Geigy AG in Basel begins. Thomae takes over the production and sole distribution of all Geigy pharmaceutical products in Germany. effortil®, the cardiovascular medication, is launched. [ 1948 ] [ 1951 ] The first foreign subsidiary, Bender & Co Ges. mbH is formed (Today Boehringer Ingelheim RCV GmbH u. Co. KG. buscopan®, a painkiller and antispasmodic medication, is launched. finalgon® is the first product for percutaneous heat-impulse therapy, resulting from research carried out by Thomae in Biberach. Olivin, a subsidiary for selling cosmetic products, is set up. 1945 1950 1955 At the end of the 1940s, the interna- internationalisation had an impact, off and enabled, among other things, tional markets gained increasing im- especially on the development of turn- the establishment in 1955 of the Ingel- portance for the chemical-pharmaceu- over. In 1950, it still stood at 11.6 mil- heimer Wohnungsgesellschaft mbH tical industry. CHBS also established lion German marks, climbing to a con- housing organisation for employees in its first subsidiary outside Germany in siderable 3.3 billion German marks in which Boehringer Ingelheim was the Vienna, Austria, today incorporated as 1986, over 80 % of which was generated majority shareholder. Boehringer Ingelheim Regional Center outside Germany. Vienna (RCV) GmbH & Co. KG. In the following year, further branches were International marketing of medicines opened in Europe and overseas. And the company had developed itself paid 16 Boehringer Ingelheim annual report 2010 [ 1971 ] Boehringer Ingelheim, Ridgefield/USA,is established. [ 1972 ] berotec®, the asthma medication, is launched. [ 1958 ] 9,300 Impression of the Ingelheim plant in the 1950s [ 1961 ] C.H. Boehringer Sohn Ltd, Toronto Canada is established. alupent®, the asthma medication, is launched. [ 1965 ] 9,300 employees worldwide generate revenue of 543 million German marks. [ 1960 ] [ 1966 ] Boehringer Ingelheim is 75 years old. silomat®, for dry cough, is launched. 1960 catapresan®, a medication to fight high blood pressure, is launched. 1965 Advantage diversity tria, the USA and Canada. Some 900 Internationalisation does not only people are today employed at the mean new markets, but also new ideas international corporate headquarters and stimulation. Boehringer Ingelheim in Ingelheim, Germany. 1970 has for decades used cultural diversity to increase the flow of innovations. The research centres of such importance to the company are spread around the world, in Germany, Aus- Internationalisation 17 125 years more health The company history 22,254 [ 1975 ] atrovent®, for the treatment of chronic obstructive respiratory disease (COPD), is launched. [ 1985 ] Boehringer Ingelheim and its 22,254 employees, 8,784 of whom are based in Germany, celebrating the company’s 100th anniversary, generate revenues of 4.5 billion German marks. [ 1986 ] The biotechnical center in Biberach opens its doors. With an investment of 150 million German marks, it is the largest production plant in Europe for biopharmaceuticals derived from cell cultures. [ 1978 ] Boehringer Ingelheim Vetmedica GmbH is formed from the department for veterinary medicine. [1979] mexitil®, against heart arrhythmia, and mucosolvan® (Thomae), to treat bronchitis, are launched. 1975 1980 [ 1987 ] actilyse®, the first biotechnologically produced medication by Thomae / Boehringer Ingelheim to treat acute heart attack, gains approval 1985 Biotechnology – the market of This amounted to the final farewell to Ingelheim is one of the leading com- the future organic acids that stood for economic panies in the field of biotechnology in While over the years a giant corporate success in the company’s early years. Europe, thanks to its ability to inno- network emerged in the computer de- On the other hand, Boehringer vate. partment, there was again a paradigm Ingelheim in 1986 opened the first change in production that was once biotechnological production plant more closely connected with innova- in Germany. actilyse®, the first bio- tion-driven transformation. This technologically produced medicine, transformation caused the termina- used to treat acute heart attacks, tion in 1982 of citric acid production. followed in 1987. Today, Boehringer 18 Boehringer Ingelheim annual report 2010 1988 ― 2010 | value through innovation By the end of the 1980s, Boehringer Ingelheim found itself caught in the tensions between economic, industrial, health and social politics. From 1991, all activities dedicated to research and development, were restructured in order to use resources more efficiently, to develop more target-orientated substances and to steer the company more successfully through a global market. With in-house R&D resources in place and an explicit dedication to innovation, Boehringer Ingelheim commits itself to one ambition: To create Value through Innovation. These efforts lead to the launch of new and successful products. [ 1996 ] [ 1999 ] 5.2bn viramune®, for HIV/AIDS treatment, and alna®/flomax®, for the treatment of benign prostate enlargement, are launched. 1999 sees the launch of micardis®, a product used in the treatment of hypertension. [ 1991 ] [ 1997 ] Boehringer Ingelheim now employs 24,347 people worldwide and generates revenue of 5.2 billion German marks. A new company logo is launched. mobec®, the anti-rheumatism medication, and sifrol®, to combat Parkinson’s disease, are launched. 1990 1995 2000 Concentrating strengths already initiated finally led in 1994 to bate the basic assumptions of the vi- At the beginning of the 1990s, Boeh- the direction-giving corporate pro- sion, that true value for patients, for ringer Ingelheim faced the challenge gramme Vision and Leadership, the the society, and, finally, for the compa- of reorganising the whole group of vision of which, Value through Inno- ny, arise when there is continuous suc- companies with its then 25,000 em- vation, remains a core element of the cess in new development and in opti- ployees. Research and production corporate culture to this day. mising established approaches. were clearly divided up by function and location, the whole innovation Since 1995, an annual Value though process was to operate in a more tar- Innovation Day is held at all sites. On geted way. The many change processes that day, the employees constantly de- Value through Innovation 19 125 years more health The company history 1988 ― 2010 | value through innovation [ 2000 ] [ 2004 ] 2000 sees the launch of metalyse®, a drug used in the treatment of heart attacks. The micro-technology company microParts GmbH in Dortmund, with which Boehringer Ingelheim developed the innovative inhaler respimat®, is acquired. [ 2005 ] Lead & Learn is the next step towards the overall vision of creating Value through Innovation. The official signal to start the process is given on VTI-Day. Lead & Learn emphasises comprehensively how the importance of each individual, as well team effort and in-depth understanding, can contribute the company’s success. [ 2002 ] The new active ingredient production plant in Ingelheim is opened. This EUR 180 million plant is one of the largest individual investments in the company’s history. spiriva®, for the treatment of chronically obstructive pulmonary disease (COPD) is launched. [ 2003 ] Opening of the new biopharmaceutical production plant G104 in Biberach. The more than 255 million euro plant is the biggest individual investment in the company’s history. 2000 20 2005 The Lead & Learn initiative from All these programmes and initiatives 2005 emphasises the further develop- also had a direct effect on product ment of the leadership principles, how launches, such as alna®, for the treat- important both the individual and the ment of benign prostate hyperplasia team are for Boehringer Ingelheim’s (1996), sifrol®, for Parkinson’s dis- corporate success. The Me/We con- ease (1997), or the product spiriva®, cept was again taken further in the today the most prescribed medication reporting year with the Me/We figure for the treatment of chronic obstruc- for the company’s 125th jubilee. tive pulmonary disease (COPD). Boehringer Ingelheim annual report 2010 42,224 [ 2008 ] pradaxa® for the prevention of thrombosis is launched. The LogiPack centre in Ingelheim is opened. Its 14 production lines can produce up to 250 million items of packaging per year. [ 2010 ] Boehringer Ingelheim now employs 42,224 people worldwide. [ 2007 ] [ 2010 ] The new company restaurant is opened in Ingelheim. Boehringer Ingelheim celebrates its 125th anniversary. [ 2009 ] The Boehringer Ingelheim Foundation announced that it will support the operation of the Institute of Molecular Biology (IMB) at the Johannes Gutenberg-Universität in Mainz with EUR 100 million spent over a tenyear period. [ 2010 ] pradaxa® launch in stroke prevention in patients with atrial fibrillation. 2010 From generation to generation the reporting year was authorised in to grow with new, innovative medi- It is the right mix of preservation and the USA and Canada and recently in cines that offer patients convincing change that make a company fit for Japan for the prevention of stroke in therapeutic advantage in the treat- the future. It is thinking with the far- patients with atrial fibrillation. Fur- ment of their diseases. sightedness of generations that also ther promising candidates are in the allows the company to overcome product pipeline. The ability to inno- challenges, such as the loss of exclu- vate of Boehringer Ingelheim is undi- sivity in the past business year. In minished and the foundations for fur- 2010, the company received market ther success of the company are laid. authorisation for pradaxa®, which in Boehringer Ingelheim will continue Value through Innovation 21 corporate responsibility Living our values: For 125 years, people have engaged themselves at our company in the pursuit of more health. They thereby take on responsibility for the quality of life and prospects of patients. In our jubilee year, we renewed our commitment to our company values as well as to our readiness for change. As early as 1902, C.H.Boehringer Sohn (CBHS) established its own company health insurance plan. A benefit fund for retired workers is set up. 1902 1907 22 Boehringer Ingelheim annual report 2010 CR Corporate Responsibility Be respected. Be encouraged. Be innovative. 24 Our employees 26 Sustainability 38 Corporate Citizenship 46 More than 2 million mother-child pairs participated at the Viramune® Donation Programme for the prevention of mother-to-child transmission of HIV/AIDS. The Boehringer Ingelheim Stiftung is supporting with EUR 100 million the operation of the Institute of Molecular Biology (IMB) at the Johannes Gutenberg-University of Mainz, Germany over a ten-year period. > 2m EUR 100 m Corporate Responsibility 23 corporate responsibility Be respected. Be encouraged. Be innovative. Be respected. Be encouraged. Be innovative. With their knowledge, efforts and ideas, our employees make possible the innovations with which we create value. It was always thus. 24 Boehringer Ingelheim annual report 2010 [ corporate responsibility at boehringer ingelheim ] “Boehringer Ingelheim is for us a very good employer and offers stability, good personal development and jobs. We have already become family with Boehringer Ingelheim and we would like to continue this cooperation for many decades to come.” the hadamik family, working for boehringer ingelheim for three generations Be respected. Be encouraged. Be innovative. 25 corporate responsibility Be respected. Be encouraged. Be innovative. Our employees: It is our employees, with their commitment, their knowledge and their ideas, who enable us to come up with innovations. They are constantly enquiring about processes and procedures and are helping us to introduce improvements. Our ambition to be innovative applies in equal measure to all divisions. [ canada ] “I love it that Boehringer Ingelheim is big enough to tackle interesting things but small enough that if you want to reach something you just have to talk to a few people.” [ usa ] ontario ridgefield ross scarrow, information technology “We are making pharmaceuticals that improve the quality of life.” kimberly kellermann, flow operations guadalajara [ mexico ] “Boehringer Ingelheim is a learning-orientated company which challenges us all the time to achieve greater results as a team.” alessandro de leonardis, environment, health and safety & engineering 42,224 The commitment, competence and creative power of our people, sustained for well over a century, have made Boehringer Ingelheim a first-class, fast-growing pharmaceutical corporation. This is reflected in the energy and innovation of 42,224 employees. 13,491 Workforce in the Americas 26 Boehringer Ingelheim annual report 2010 21,016 Workforce in Europe [ sweden ] “Working for Boehringer Ingelheim makes me a part of an international team that clearly defines targets and works hard and consistently to reach them.” edgar dagrup, customer relations management stockholm [ china ] “Boehringer Ingelheim offers plenty of possibilities and challenges. I can develop myself.” ingelheim haiyan liu, logistics [ germany ] “Boehringer Ingelheim is an ideal combination: a research-driven company, innovative and international, and yet at its core a family company with traditional values.” shanghai mumbai dr ingo presser, biopharma operations [ india ] “Boehringer Ingelheim is a place full of opportunities and challenges, where I can develop my skills.” 7,717 charmaine braganza, regulatory affairs / cmc Workforce in Asia, Africa, Australasia (AAA) [ australia ] “Boehringer Ingelheim means support, encouragement, excellence and value.” james smith, district sales, prescription medicines Our employees 27 corporate responsibility Our Employees Our Employees Employees who innovate - the future of our company depends directly on its innovative capability. Our employees are the guarantors of this and our most important corporate asset. They form the core of our distinctive corporate culture as a familyowned company that lives out its responsibility and builds on mutual respect and fairness. 28 Boehringer Ingelheim annual report 2010 Values with staying power Value through Innovation – for us at Boehringer Ingelheim this is no mere motto, but an internal commitment. This vision drives us forward and is the basis of our success This commitment to innovation is re- Boehringer Ingelheim is and will re- alised in all areas at Boehringer Ingel- main a family-owned company that heim: strongly believes in continuity and prepares early and consistently for First and foremost, we create new challenges ahead. medicines that truly help people. We research and develop, manufacture We think long term. Our strategy has and market them. been and will continue to be to secure Boehringer Ingelheim’s development Secondly, we work continuously on through sustained economic growth optimising own processes or aim to based on the productivity of its re- find completely new solutions. search and development. Thirdly, we support our employees and develop their competencies with the means of talent management. What always takes us forward is the commitment of our employees – they are our most important success factor. We aim to make it easier for them to maintain a balance between their contribution to Boehringer Ingelheim and their private life. Fourthly, we seek to permanently verify whether we are using natural and economic resources efficiently and responsibly. These four pillars are the basis of our future ability to innovate and our contribution to progress in medicine to benefit patients. Our employees are our most important corporate asset. Picture from the 125 years jubilee party in 2010. Values with staying power 29 Our employees corporate responsibility Talent management as a strategic priority Talent management is a strategic priority for Boehringer Ingelheim to build and sustain a competitive advantage in a fast-moving and highly competitive environment. In 2010, Boehringer Ingelheim contin- The overall talent management cycle ued to roll out and implement its of Boehringer Ingelheim is comprised globally integrated talent management of several core elements. (see graph) approach. To date, around 2,500 employees The aim of talent management is that worldwide have been discussed at all employees should be able to devel- cross-validation meetings. As a result, op within their job or towards new actionable development plans aligned roles. They shall be enabled to grow with business needs have been initiated, through new challenges and the com- relevant staffing decisions have been pany will achieve improved results. made, and cross-moves have been o er Ingelhe im ehring Tale f Bo nt M o s t an en ag m e em performance El e e r potential nt C implemented or planned. succession o pe right needs & actions ce BI Talent Management pla mag g ht evaluation feedback alignment our overall objective of having the best time. ri e ment will bring us closer to meeting people in the right position at the right cross validation pl We are convinced that talent manage- development [ south africa ] rig ht time implementation staffing decision ”Boehringer Ingelheim has supported me in developing me to various positions. I started in the warehouse as an order clerk. Most recently, I joined sales as a representative.” bethuel ramadiro marketing and sales 30 Boehringer Ingelheim annual report 2010 hip Compe Leaders tenc bal o ies l G Deliver Results Leadership development Set Direction To realise our vision and live Lead & Learn Developing people and leading innovation. In order to drive talent management, Lead Innovation all leaders focus on the development Lead & Manage Change Lead People of our employees. They identify high potential employees early and develop them. With the implementation of new worldwide structures and our governance model resulting in a higher number of cross-country reporting relationships, our leaders need to be true global leaders. Leadership competencies Based on Lead & Learn – our philosophy on how we work together – we introduced five global leadership compe- [ singapore ] tencies. A new standard of our expectations has hereby been set and the leaders in the organisation are evaluated against these expectations (leadership competencies). The evaluation is based on the following questions: Ω How do we get results? Ω How do we lead change and innovation? ”Boehringer Ingelheim continuously gives me challenges and opportunities for development. After 13 years of experiences in various positions in the IS organisation in Japan, I had the opportunity to work in the IS organisation in Germany where I was able to participate in global projects. I have now taken on a new role in Singapore “ yasuhiro nishimi regional chief information officer asia pacific Ω How do we attract, develop and retain high potential and high professional employees? Ω How do we communicate together with the results on core job and individual goals equal performance? Talent management / Leadership development 31 Our employees corporate responsibility For those employees who do not lead other employees, our Lead & Learnquestions will be the standard they are measured against (see graph). [ spain ] With talent management including “Boehringer Ingelheim supported me in my career path, in identifying the appropriate balanced match between the company’s and my professional interests.” dr teresa rodó head of production site pharma spain performance management the evaluation of leadership and results of core job and individual goals determine development needs and give an indication of individual potential as a basis for growth in future roles. To support the development of the global leadership competencies, we have developed a leadership development landscape. Global, regional and local leadership development programmes will be available to leaders at all levels in the organisation. Our leadership capability will be a strategic differentiator for Boehringer Ingelheim. Our Lead & Learn questions For those employees who do not lead other employees, our Lead & Learn questions will be the standard they are measured against. Are we taking the initiative? 32 Are we connected? Boehringer Ingelheim annual report 2010 Are we growing together? Are we getting results? Develop visions Organisational development bi change model Leading and managing change. Cultivate change Boehringer Ingelheim has successful- Nevertheless, this process will need ly implemented a systematic approach time and it would not be possible to manage change at Boehringer In- without full commitment and dedicat- gelheim. This well-structured change ed support of the Animal Health Man- process will help and support all em- agement Team. Change implementation ployees to better understand the common Boehringer Ingelheim culture, values and the overall company vision. One example for a successful change management process is the integration of employees from Fort Dodge Animal Health. One year has passed since Boehringer Ingelheim Animal Health together Integration meeting of Fort Dodge and Boehringer Ingelheim staff with Boehringer Ingelheim Vetmedica Inc., acquired certain assets and facilities from Fort Dodge. It has been a time full of energy and efforts in the process of integrating the various parts. Most importantly, Boehringer Ingelheim welcomed about 900 new colleagues working in highly motivated teams in all functions, be it R&D, sales force or production. “The one thing that stands out is the willingness from both the St. Joseph site and Fort Dodge sites of the Animal Health business to work together to make the transition work seamless. Although there were some bumps in the road early on, overall, the transition is continuing to be successful. I believe Boehringer Ingelheim Vetmedica Inc. is a strong and healthy company which will continue to grow. I’m looking for greater things to come to pass in the future.” An overall change process has been put in place to facilitate mutual understanding and create a joint workforce to be prepared for a successful bob lentsch, manager, security and site services, usa future. All colleagues are pulling together and are willing to contribute. Organisational development 33 corporate responsibility Our employees A lot has been achieved during the past months like product transfers and adaptation of manufacturing systems showing that we are connected. On a regular basis, feedback is ob- [ japan ] tained from all colleagues. This is very “Boehringer Ingelheim has always provided me of the good working environment, where I can develop my competencies through various assignments, and experienced supervisors. Challenging targets as well as opportunities enhanced my capabilities.“ important in order to ascertain where we need to give more support and to improve activities so that our overall success will be accomplished in the best way. The approach which has been chosen has proved to be successful and brings us closer to our aim to move through the times of change and to develop into one Animal Health dr seiji yamasaki plant manager boehringer ingelheim seiyaku business in the future. [ china ] “A company with a human face, strongly focused on people, has been for me the perfect place to develop myself and even more, to develop others.” sebastien blang director, quality & environment health & safety 34 Boehringer Ingelheim annual report 2010 [ germany ] Employer of choice The attractiveness of Boehringer Ingelheim as an employer of choice has for some years been widely acknowledged. in highly regarded, independent surveys. The attractiveness as a workplace is not a matter of chance, but reflects the distinctive, innovative corporate culture “Boehringer Ingelheim has constantly enabled me to develop my technical and managerial skills by giving me the opportunity to lead challenging projects and diverse teams, both locally and abroad, combined with excellent coaching and mentoring.” g.” oliver sluke head of is service management nt and a working environment built on mutual respect and fairness that Boehringer Ingelheim has fostered throughout its 125-year history. It also confirms the scientific community’s appreciation of the company’s long-term commitment to research and development. Sample of Awards 2010 Country Ranking Austria Denmark Survey Certification berufundfamilie gGmbH 15 Germany Great Place to Work Recertification berufundfamilie gGmbH 2 Japan Corporate Health Award 2010 (Initiative of Handelsblatt, EuPD Research and TÜV SÜD Life Service) JMA (Japan Management Association) HRD Excellence Award Great Place to Work South Korea 1 Netherlands UK Korea-EU Awards Top Employer (CFR Institute) 1 USA PharmaField Survey Best Places to Work for LGBT Equality - 100% Corporate Equality Index (Human Rights Campaign Foundation) Working Mother 100 Best Companies Gold Award Our apprentices Boehringer Ingelheim’s human resources programmes also focus on apprenticeships. To ensure and develop bench strength for the future, Boehringer Ingelheim Germany gave 699 young people vocational training within the company’s highly regarded and well-established apprenticeship programmes. American Health Association Organisational development 35 corporate responsibility Our employees Evolution of the workplace Implementation of a new workplace model and new office structures. What will the future workplace look While assistants in the group offices viduals (Me space) arranged more like at Boehringer Ingelheim? will continue to work in clearly desig- flexibly and the additional common Answers to this question should be pro- nated offices and serve as an anchor areas (We space), such as meeting vided by the initial experiences gained point, other employees will take part rooms, touchdowns and lounge areas, from the introduction of a new work- in desk-sharing. The great advantage benefitting all employees and also place model by our Corporate Prescrip- is that the available offices are used fostering informal exchanges and tion Medicines Marketing Division and more efficiently and that additional greater interaction. Part of the work- a new office space structure in the Re- space is gained. The 13 additional places in the new function Regional gional Business Services Europe De- meeting rooms and the videoconfer- Business Services Europe are located partment in Ingelheim, Germany. ence room in particular have proved in open space structures in which very popular. The lounge area has also each employee is designated a fixed been well-received as a meeting point place, as previously. The model is for informal exchanges. based on a flexibly adjustable workplace form from which very different Overall, the workplace model adheres spatial formations can be produced. to Boehringer Ingelheim’s Me/We Thus, an individual configuration can concept, with the workplaces for indi- be developed for each team. A significant component of the new office design models are the cubes, New office structures at Boehringer Ingelheim. which represent a mixture of meeting room and teamwork room. These cubes are partially glazed spaces which are arranged between the openform workplaces. They offer teams variable working options, from planned meetings to informal, spontaneous communication and intensive project work. 36 Boehringer Ingelheim annual report 2010 Combining job and family At all times, Boehringer Ingelheim has set great importance on being a family-friendly company. Successfully combining work and family is very important for our employees with family responsibilities, as well as for Boehringer Ingelheim. Attracting and keeping employees is The programme of the BI-Ferienakade- becoming increasingly important for mie supports the childrens’ education Boehringer Ingelheim. Demographic and provides relief for their mothers change with a constantly aging popu- and fathers. A comprehensive range of lation and a simultaneously declining projects offers something for every- birthrate, leads to a consequent de- one, from fostering language or artis- cline in skilled workers. tic skills to sporting activities. Successfully combining work and Through play, linking care and educa- family is at the same time becoming tion, the knowledge of the children very important for employees with taking part is expanded and their com- family responsibilities, as well as for petence fostered. The choices for the employers like Boehringer Ingelheim. children also provide the opportunity At our German locations we support to be involved in natural science sub- our employees in a variety of ways, for jects, which are often given short example with the BI-Ferienakademie shrift in the regular school day. school holiday academy for employees’ children. Family-friendliness – berufundfamilie gGmbH (career and family) certification Holiday academy as a learning At all times, Boehringer Ingelheim has opportunity attached great importance to being a During the long summer school holi- family-friendly company. To continue days, combining job and family to ensure that we are enabling our em- presents a particular challenge for ployees a good work-life balance, we parents, to cover the care needs of have subjected our personnel policy to their children. a recurring external audit. In 2010, Boehringer Ingelheim was audited and again awarded a certificate by the berufundfamilie gGmbH foundation. Boehringer Ingelheim was audited and At the Ingelheim site, Boehringer In- again awarded a certificate of the high- gelheim, in cooperation with the town ly respected berufundfamilie gGmbH of Ingelheim, offers an exciting and foundation. interesting course for 340 children in various age groups. Evolution in the workplace / Combining job and family 37 corporate responsibility Sustainability Sustainability In all our endeavours, we safeguard our employees, facilities and the environment from harmful influences. 38 Boehringer Ingelheim annual report 2010 Environment, health and safety As with any type of production, the manufacture of medicinal products inevitably has an impact on the environment. It is thus the express aim of our Leitbild (guiding principles) to keep this impact to a minimum. At the same time, we make every endeavour to guarantee the protection of our employees Protection of employees’ health: In the last few years, Boehringer Ingel- rollout of new safety culture – heim’s accident statistics have shown Zero by Choice stagnation. Zero By Choice makes the 2010 marked the start of the interna- reduction of work related accidents tional roll-out of the new Boehringer one of our most important goals. In Ingelheim safety culture Zero by Choice 2010, we committed ourselves to the covering our worldwide organisation. following roadmap for the ahead years: to reduce the safety indicator Zero by Choice Zero by Choice is our new approach to Accident Frequency Rate (number of safety, involving management and em- accidents per million working hours) ployees as key players. Both manage- from above 3 in 2009 to a rate of less ment and employees are asked to pro- than 1 by 2014. The first step towards actively take on the responsibility of this medium-term goal was to reach an their own well-being and also look out accident frequency rate of 2.6 in 2010. An example how our US site in Petersburg, Virginia, reinforced our Zero by Choice culture and increased the safety awareness of our employees was the sponsoring of Safety Pit Stops. As employees arrived at work, they were given the option of driving through the pit and having basic safety items on their private cars checked. for others working around them. The vision of Zero by Choice is to move to How will we make the change? an organisation where safety is one of Management has committed itself to our true values. being on the frontline and gives the new safety culture its full support. Em- Choice or chance ployees are being encouraged to be- On a daily basis, employees encounter come more proactive, talk about the multiple situations where they have topic of safety and voice their points of the opportunity to make a decision view. about the safety of a task at hand. Do I take a short-cut, or do I take the extra time to do the job safely? In order to reduce the number of accidents, we need to shift our ‘by chance’ culture to one of ‘by choice’. Environment, health and safety 39 corporate responsibility Sustainability At a site level, the initiative was rolled and will foster talent management. In out in four countries in 2010. Further 2011 this model is planned to be ex- countries will follow within the next tended to Marketing & Sales. few years, according to our rollout plan. Functions at the sites will go Energy efficiency through a workflow comprised of vari- As a pharmaceutical company, Boeh- ous steps, such as self-assessments to- ringer Ingelheim does not operate in gether with management and setting an energy-intensive sector. However, up specific improvement plans. we consider reducing energy consumption and greenhouse gas emissions to EHS management approach be one of our important goals, and we Protecting our employees and the en- thereby contribute to preventing cli- vironment is a crucial cornerstone of mate change. In addition, energy being our business. This is reflected by our a growing cost factor, we see efficiency Leitbild, as well as our safety, quality improvements as an important driver and environmental protection princi- for cost reduction. ples. We regularly set out policies, procedures and objectives for environ- In order to maximise energy efficiency mental protection, health and safety and the use of renewable resources, (EHS) at corporate level. Environmen- the scope of the Boehringer Ingelheim tal protection and safety at our pro- Working Group on Sustainable Use of duction plants is organised within Energy was in 2010 reviewed and re- management systems established ac- defined. The working group was as- cording to international standards. signed to create a comprehensive Regular internal audits serve to check framework for a sustainable and sys- the status of environmental protection tematic energy management at all levels and safety at our sites as well as to ex- of our organisation. Based on this change and align different views. In framework, we are going to set our- addition, specific projects and site per- selves an ambitious goal for reduction formances are tracked by a systematic of our CO2 emissions. A main objective approach built on key performance in- of the working group is to set up a cor- dicators. poration-wide greenhouse gas reporting system in accordance with the In 2010, a new EHS governance model Greenhouse Gas Protocol and energy was been established combining re- audits are planned. The working group gional and functional EHS manage- will implement and evaluate future en- ment structures. Existing networks ergy concepts at our sites and will foster within Operations were extended to the initiation and realisation of at least further operational as well as research one major energy-saving project per and development functions. This ap- production site per year. proach will ensure the transfer of EHS knowledge best practices within the Boehringer Ingelheim organisation 40 Boehringer Ingelheim annual report 2010 Examples of ongoing energy efficiency waste and energy consumption. Meas- projects ures realised in 2010, such as optimi- At our site in Ingelheim, Germany, opti- sation of the steam supply, are expect- misation of air-conditioning systems in ed to reduce local CO2 emissions by 2010 is expected to yield an estimated 2%. For 2011, an additional decrease annual reduction of 2,000 tonnes of of CO2 of 4% is expected to be CO2 and EUR 1 million worth of energy achieved. The new approach to safety culture was discussed among Boehringer Ingelheim employees at the rollout event for the Zero by Choice initiative. costs. Campaigns such as the 3rd Annual At corporation level, the project Green Green Fair at our site in Ridgefield, Building was initiated to provide sug- USA, highlight actions employees and gestions for investment projects to in- the company can and are undertaking crease energy efficiency. In addition, a to save energy and resources. Green classification in terms of profitability alternatives to a variety of daily activi- and costs for reduction of CO2 emis- ties are promoted. The focus of this sions is going to be introduced. fair is to inform employees and feed suggestions and improvement ideas In cooperation with local authorities, from employees back to the company our site in Vienna, Austria, started for evaluation. Such initiatives help Ökoprofit® (Eco-profit) projects with raise the general awareness of the im- the focus on measures for reduction of portance of saving energy. Environment, health and safety 41 corporate responsibility Sustainability What we expect from our suppliers ing measures for 2011 are planned to From our suppliers and contract man- increase the efficiency and capacity of ufacturers, we expect certain require- the treatment. Our pharmaceutical site ments to be met in terms of environ- in Mexico implemented additional tech- mental protection and safety and with nical equipment at its sewage treatment regard to social topics. These aspects plant (aeration and disinfection devices), are taken into consideration when we improving the treatment efficiency. The evaluate our suppliers. In 2010, we es- effluent of this plant is used to irrigate tablished new supplier qualification green areas, thus saving 31,000 m3 of processes by, for example, introducing drinking water per year. a risk-based approach for auditing our business partners. Pharmaceuticals in the environment Product responsibility requires the At the annual Green Fair at our site in Ridgefield, USA, employees are encouraged to bring in their ideas and suggestions regarding environmental topics such as energy efficiency. Conserving water quality and implementation of environmental risk availability assessments for all newly launched The availability of safe water is essential drugs. Going beyond the official re- for a healthy and successful society. quirements for the authorisation of Boehringer Ingelheim strives to protect medicines, we voluntarily publish in- the environment by minimising the im- formation of environmental risk for our pact of its operations on fresh water. Our existing products via the Swedish Doc- production sites keep their sewage treat- tors Prescribing Guide (www.fass.se) ment plants working efficiently to en- using the disclosure system of the sure a good water quality of effluents Swedish Association of the Pharma- reaching water sources. For example, our ceutical Industry. plant in Indonesia reconditioned its treatment plant in 2010. Further upgrad- Crisis management Boehringer Ingelheim has a crisis management system implemented on a worldwide basis. Our proactive approach is designed to examine potentially critical situations, prevent incidents and keep them from escalating to critical levels. Specific risks are identified and evaluated on the basis of various crisis scenarios. Crisis team members are constantly trained to maintain and extend their readiness and skills, all emergency management plans are reviewed and technical facilities are checked regularly. There were no major incidents within the Corporation in 2010. 42 Boehringer Ingelheim annual report 2010 Awards and certifications In 2010, the environmental manage- Work accidents ment system at our chemical site in Total work-related accidents: 195 (fatality: 2) Lost labour days: 2.997 Petersburg, Virginia, USA, received 100 ISO 14001 certification, following in 80 the footsteps of our other chemical 60 sites in Spain, France and Italy. During 2010, our chemical site in Spain additionally received certification accord- 40 5 4 ing to OSHA 18001. Our pharmaceuti- 3 cal production site in Bogota, Columbia, 2 was certified according to ISO 14001 1 for the first time. Our plant in Columbus, US, has been awarded the 2010 ENERGY STAR® by the US Environ- 2006 2007 2008 2009 2010 Frequency rate (= accidents x 1 million hours/total labour hours) Severity rate (= lost labour days x 1 million hours/total labour hours) mental Protection Agency for superior energy management. The ENERGY STAR® is the distinguishing mark of energy efficiency for pharmaceutical to less than 1 in 2014. Our roadmap manufacturing plants in the United towards this goal required us to reach States and identifies our plant’s status an accident frequency rate of 2.5 in among the most energy-efficient based 2010. We almost achieved this goal, on its performance in EPA’s National achieving a rate of 2.6. Energy Performance Rating System. Boehringer Ingelheim Indonesia re- With regard to energy efficiency and ceived an award from the Ministry of carbon footprint, we intend to set our- Manpower and Transmigration for selves an ambitious goal for reducing having succeeded in operating without our global CO2 emissions. a lost-time workplace accident from July 2007 to December 2009. Our sites Facts and figures in Petersburg and Fornovo, Italy, re- The graphs show our performance re- ceived a Safety Excellence Award pre- lated to the environment and worker sented by Jacobs Engineering in recog- safety for the last five years. The im- nition of the high level of commitment pact on the environment is described to safety demonstrated by the project both in absolute figures as well as nor- teams on two complex construction malized in relation to the annual sales projects. volumes (indices with 2006 as base year). To evaluate our environmental Our goals performance, we considered our pro- Our target for worker safety is the duction as well as research and devel- reduction of the accident frequency opment sites. The figures for 2010 re- rate (number of accidents per million flect changes relating to our sites. Our working hours) from above 3 in 2009 pharmaceutical production facilities Environment, health and safety 43 corporate responsibility Improvement of efficiency and flexibility and a maintenance of our good chemical oxygen demand (COD) degradation rates was made possible, even for higher production, by the expansion of the wastewater treatment plant in Ingelheim, Germany. Sustainability in the United Kingdom and Colombia as water consumption, indirect CO2 were therefore no longer included in emissions and hazardous waste slight- the consolidation, whereas, for the ly increased compared to 2009. This first time, our new Animal Health pro- can be attributed to the inclusion of duction site in Fort Dodge, USA, is re- our new production site in Fort Dodge flected in the figures. in the consolidation. The key parameter for our perform- The indirect CO2 emissions presented ance in occupational safety is the acci- in the graph refer to the emissions dent frequency rate (work related acci- generated due to the consumption of dents with one or more absence days purchased electricity. The CO2 emis- in relation to hours worked). Over the sions attributable to our company car last few years, this rate remained fleet were estimated to be approxi- slightly above three. By obtaining a mately 86,000 tonnes. Currently, we frequency rate of 2.6 in 2010, we suc- are setting up a revised approach how ceeded for the first time in reaching a to calculate our corporate carbon foot- rate of below 3. This is an important print, with the aim of including addi- achievement made possible by the roll- tional indirect emissions in our calcu- out of our new safety culture. lations in future. In 2010, the levels of most of our environmental indicators were kept in the same order of magnitude compared to previous years. Some indicators, such 44 Boehringer Ingelheim annual report 2010 Water Energy 100 100 90 90 80 80 70 70 60 60 8 8 6 6 4 4 2 2 2006 2007 2008 2009 2010 2006 Water consumption (in millions of m3) Water consumption index (in %, relative to sales volume) 2007 2008 2009 2010 Energy consumption (in millions of gigajoules) Energy consumption index (in %, relative to sales volume) Wastewater – chemical oxygen demand (COD) Disposed waste 120 120 100 100 10,000 80 28,000 80 60 24,000 60 40 20,000 8,000 16,000 6,000 12,000 4,000 8,000 2,000 4,000 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 Domestic waste (in tonnes) Hazardous waste index incl. pharmaceutical waste Disposed waste index (in %, relative to sales volume) Recycling rate (in %) COD load before treatment (in tonnes) COD load after treatment (in tonnes) COD load (after treatment) index (in %, relative to sales volume) Volatile organic carbon (VOC) Carbon dioxide (CO2) 100 100 90 80 80 60 40 70 1000 20 200 800 0 150 600 100 400 50 200 250 60 2006 2007 2008 2009 CO2 indirect emissions (in 1,000 tonnes) CO2 direct emissions (in 1,000 tonnes) CO2 emissions index, direct emissions (in % relative to sales volume) 2010 2006 2007 2008 2009 2010 VOC emissions, non-halogenated (in tonnes) VOC emissions, halogenated incl. Chlorofluorocarbons (in tonnes) VOC emissions index (in %, relative to sales volume) Environment, health and safety 45 corporate responsibility Corporate Citizenship Corporate Citizenship We seek to foster economic and social well-being in the countries and communities in which we do business. Our activities embrace patients, neighbouring communities and society at large. Corporate citizenship is an integral part of our corporate culture. 46 Boehringer Ingelheim annual report 2010 Cooperations and projects Throughout the world, Boehringer Ingelheim employees, as individuals, and the company, as a good corporate citizen, are engaged in many activities, including child protection, healthcare projects, educational programmes, environmental protection and emergency aid. Access to medicines preserving the health of more than Boehringer Ingelheim is committed to two million babies born to HIV-posi- improving access to medicines in least tive mothers throughout the develop- developed countries. In particular, the ing world. In the intervening decade, company has an overarching commit- medicine sufficient for the manage- ment to combating the devastating ment of more than two million moth- AIDS pandemic through its engage- er-child pairs in 171 programmes ment for the prevention of mother-to- stretching over 71 countries were do- child transmission (MTCT) of HIV/ nated to PMTCT projects throughout AIDS. the world. For the baby dose, oral dis- > 2m More than 2 million mother-child pairs were donated to PMTCT projects. pensers and pouches for the filled disThe Viramune® Donation Programme penser were included in the package. On the occasion of World AIDS Day in 2000, Boehringer Ingelheim publicly During this period, Boehringer Ingel- announced that its antiretroviral vira- heim has been proud to work closely mune® (active ingredient nevirapine) with governments, medical experts would be offered free of charge for a and NGOs in various parts of the period of five years, as part of a dona- world to prevent the transmission of tion programme to developing coun- HIV from the HIV-positive mother to tries for the prevention of mother-to- her offspring. child transmission (PMTCT) of HIV-1. The donation would be provided within The medical evidence for the success- reliable, local projects on MTCT, with ful use of viramune® in the prevention voluntary counselling and testing of PMTCT indicated that viramune®, a (VCT), to health facilities for pregnant potent non-nucleoside reverse tran- women and healthcare for mothers and scriptase inhibitor, when given as a babies. The initiative was called the vi- single dose to the mother during la- ramune® Donation Programme (VDP). bour and to the infant within 72 hours of birth, could significantly reduce the Since its inception, the viramune® Do- transmission of HIV from the positive nation Programme has contributed to mother to her baby. Cooperations and projects 47 corporate responsibility Corporate Citizenship This recommendation was included Additionally, the 240 ml pack of vira- early on the World Health Organiza- mune® oral suspension will now be of- tion (WHO) List of Essential Drugs for fered for use in PMTCT programmes at use in the reduction or prevention of a not-for-profit price. MTCT of HIV-1. Since inception, Boehringer Ingelheim Over the ten years since the start of has been proud of its viramune® Do- the viramune® Donation Programme, nation Programme and the pioneering there have been new developments contribution it has made to controlling and new insights into the therapies the transmission of HIV-1 from moth- that can be offered to reduce PMTCT er to child. It has valued the partner- of HIV-1 even further. ships it has developed and the support it has received from healthcare work- Single-dose nevirapine, as employed in ers and governments throughout the the viramune® Donation Programme world involved in this very worthwhile and included in the earlier WHO programme. The company is fully com- guidelines, is no longer considered as mitted to continuing supporting ef- an appropriate approach for this pur- forts to eliminate MTCT. pose. Extended access to nevirapine through In the light of these modified guide- the non-assert declaration policy lines, Boehringer Ingelheim will pur- Products containing the active ingredi- sue its commitment, but in a modified ent nevirapine are widely available in form. the developing world from a number of generic manufacturers. Over the 71 The PMTCT programme stretches over 71 countries. Where countries experience difficulties last four years, Boehringer Ingelheim in the transition to the new guidelines, has granted non-assert declarations to Boehringer Ingelheim will provide in- generic manufacturers pre-qualified by terim assistance, on request, to the the WHO, to manufacture products sites the company has supported in containing nevirapine. The policy ap- the past, with supplies of viramune® plies to all low-income countries, all tablets and suspension until the end of least developed countries (LDC) and all 2013. African countries, 78 countries in total. It has led to an increase in patients The decision to transform the current being treated with medicines contain- approach to PMTCT will not cause sup- ing nevirapine. ply problems. Other products contain- 48 ing the active ingredient nevirapine, The policy stipulates that patents will both tablets and oral suspension, are not be enforced, that no royalties now widely available in the developing have to be paid and, most important- world from a number of appropriately ly, that high product quality will be qualified generic manufacturers. ensured. Boehringer Ingelheim annual report 2010 Physician at work at the medical office of the Inkanyezi catholic missionary station, Orange Farm, South Africa. Patients at the medical office of the missionary station. Technology transfer and human Further developments related to the resources development Access to Antiretroviral Drugs (ARVs) In addition, Boehringer Ingelheim en- In the area of research and develop- gages in healthcare-supporting activi- ment, Boehringer-Ingelheim has de- ties, such as human resources develop- veloped and launched an extended re- ment and capacity building through lease form of its HIV drug, viramune® training and education in various (nevirapine), in 2010 (see chapter Our ways, including: Business). Additionally, a pediatric ver- Prevention of MTCT is the aim of the Viramune® Donation Programme. sion of its other antiretroviral (ARV), • Training of paramedical/ laboratory staff • The Boehringer Ingelheim Endowed Chair in Clinical Pharmacology aptivus® (tipranavir), has been available since 2009 (see glossary). Both medications qualify for the non-assert scheme. • The Botswana Clinical Trial Programme • The Boehringer Ingelheim Facilitation and Training Centre • Pharmacy Students at Rhodes University • The Boehringer Ingelheim Lung Institute External recognition by the Access to Medicine Foundation In the 2010 survey and ranking of the Access to Medicine Foundation, Boehringer Ingelheim ranked 12th out of 20 pharmaceutical companies under review for its viramune® Dona- • BI Medical Students Programme tion Programme, its non-exclusive • Clinical Epidemiology Fellowship voluntary licensing actvities and its • ICEM Aids workplace programme in non-assert declaration policy. India The Access to Medicines Index is an initiative of the Access to Medicine Foundation. www.accesstomedicineindex.org For more information, see corporateresponsibility.boehringeringelheim.com Cooperations and projects 49 corporate responsibility Corporate Citizenship Local cooperations and projects Our employees in the operating units cooperate with local organisations. The following are examples of some of our regional activities. Cooperation partners Cliniclown Cooperation with Banco Farmaceutico In Belgium, Boehringer Ingelheim In Italy, Boehringer Ingelheim has for employees helped a local much-loved many years been supporting Banco and highly respected organisation, Farmaceutico, a non-profit association Cliniclowns, whose motto is “laugh- which collects pharmaceutical products ing is recovering”. Since 1994, this or- from pharmaceutical companies and ganisation’s professional clowns have individuals for distribution to various been visiting children in hospitals to institutions that assist people in need. bring some joy and happiness to young patients in difficult circum- Boehringer Ingelheim Italia helps in stances. particular by providing winter season products, such as treatments for influ- Boehringer Ingelheim employees col- enza and coughs. lected money for Cliniclowns by tak- Belgium: Laughing is recovering with Cliniclowns. ing part in different activities, from Cooperation with DREAM car-washing to selling gadgets, and by Additionally in Italy, the company making certain savings. cooperates with DREAM (Drug Resources Enhancement against Aids and Cooperation with St John Ambulance Malnutrition), an AIDS therapy pro- In the UK, Boehringer Ingelheim gramme promoted by the christian teamed up with its local newspaper, community of Sant’Egidio aimed at The Bracknell News, and the leading preventing, treating and reducing the first aid charity, St John Ambulance, prevalence of this infection in coun- to sponsor a series of free Child Life- tries in Africa. The programme also saver workshops for parents, grand- provides training to local doctors, parents and carers in the local com- nurses and other specialised health- munity. The free workshops covered care personnel. Boehringer Ingelheim lifesaving topics, including uncon- Italia’s support is specially devoted to scious, choking and non-breathing in- a ten-year scholarship programme for fants. All attendees got the chance to two local researchers. practice cardio-pulmonary resuscitation on life-size baby and toddler Cooperation with Fundació Ictus manikins. In Spain, Boehringer Ingelheim, along with Fundació Ictus, and the 50 Boehringer Ingelheim annual report 2010 Government of Catalonia’s Depart- was sufficient to purchase ten modern ment of Health and Barcelona City multimedia class boards and 20 laptop Council, organised a conference computers . One-year scholarships for aimed at offering citizens an educa- four students were also funded and tional explanation of what our brain the cooperation with the school is on- is and how to look after it, as well going. knowing how to act in situations where there a risk of ictus. The inter- Cooperation with Cadena de Ayuda active exhibition Què tens al cap? In Mexico, Boehringher Ingelheim (What’s in your head?) was organised was part of the initiative Cadena de at the Plaça Nova in front of Barcelo- Ayuda (Aid Chain), supporting some na cathedral. institutions in the implementation of Hungary: more than 3,000 houses in three villages were damaged by the toxic flood. initiatives to fight malnutrition in Cooperation with Agaliazo Group children up to five years of age. Mal- Volunteers Against Cancer nutrition in this context also includes In Greece, Boehringer Ingelhiem pro- children suffering from overeating. In vided funds to the Agaliazo Group Mexico, it is estimated that one in eight Volunteers Against Cancer for confront- children have impaired life chances ing patient problems and informing due to malnutrition. Two projects people about cancer prevention. were given funds to benefit thousands of children who face malnutrition. Cooperation with the Hungarian Ecumenical Charity Service Cooperation with Transparencia In Hungary, Boehringer Ingelheim Mexicana employees, via the Hungarian Ecu- Additionally, Boehringer Ingelheim menical Charity Service, helped vic- cooperated with the intervention of tims of the toxic sludge catastrophe in Transparencia Mexicana, a civil society Veszprém County, donating pharma- organisation that fights corruption in ceuticals to local hospitals and finan- Mexico. Mexico, Cadena de Ayuda: fight against malnutrition in children. cial assistance to towns affected by the catastrophe. Cooperation with flood-hit school In response to devastating floods, Boehringer Ingelheim employees raised funds to buy cleaning products and dry food, delivering them to the community of Wilków in southeast Poland. Boehringer Ingelheim also made a financial donation to the Wilków public school complex for buying new equipment for the chemistry and language labs. The support Local cooperations and projects 51 corporate responsibility Corporate Citizenship Cooperation with Associação Arte Cooperation of Cares Foundation with Despertar Direct Relief International In Brazil, Boehringer Ingelheim en- As part of it’s ongoing commitment to tered into a partnership to support helping individuals and families in Associação Arte Despertar, a non- times of natural disaster, Boehringer profit organisation, through a project Ingelheim Cares Foundation (BICF) that aims at “health humanisation” in partnered with Direct Relief Interna- two major hospitals serving the lower tional (DRI) to provide products for income population in São Paulo: Insti- DRI’s Hurricane Preparedness Pro- tuto do Coração do Hospital das Clíni- gram in 2010. cas da Faculdade de Medicina da Universidade de São Paulo and Irmandade Boehringer Ingelheim products were da Santa Casa de Misericórdia de São packaged with other manufacturers’ Paulo. products and pre-positioned at 30 preselected clinics in the US Gulf Coast to Four times a week, two art teachers, a support DRI’s healthcare provider psychologist and a pedagogist work in partners that care for vulnerable pop- the different areas of the hospital, ulations in hurricane-prone areas. bringing music, storytelling and visual Each of the US packs was stocked with arts to patients, caregivers and health enough materials to treat 100 patients professionals. for 3-5 days. DRI has been pre-positioning emergency supplies for hurricane season and assisting in emergency planning since 2007 in partnership with the Texas Association of Community Health Centers, the Louisiana Primary Care Association, the Mississippi Primary Health Care Association, and long-time partners in the Caribbean. Medical facilities receiving packs are selected for their location, past experience with emergency response, vulnerability of patient population, and capacity to treat victims during a disaster. If a hurricane hits, resources are already in place so that healthcare providers have immediate access to medicines and supplies in their greatest time of need. Brazil: project for “health humanisation” in two major hospitals. 52 Boehringer Ingelheim annual report 2010 United Way Day of Caring in the USA: employees of Boehringer Ingelheim packed medications to help people impacted by natural disasters. Boehringer Ingelheim Cares Volunteer Day of Caring. In 2010, more than 125 Match employees spent the day engaged in Boehringer Ingelheim employees projects that helped improve the lives across the USA volunteered more than of individuals and families in our 13,100 hours of their time in 2010 to community. help individuals and families in the community, exceeding the company’s Activities for the 2010 Day of Caring 2010 goal of 10,000 volunteer hours. included clean-up and repair of local parks and hiking trails, painting and The goal was set in April 2010 during home repair at a local safe-house for National Volunteer Week as the com- women and children, and painting pany introduced Boehringer Ingelhe- and gardening at a facility that helps im Cares Volunteer Match – an online families and children cope after the employee engagement system that loss of a loved one. measures and tracks employee volunteer activity and provides access to lo- Across the USA, employees volun- cal volunteer opportunities. teered their time to help various nonprofit organisations during the United United Way Day of Caring Way Day of Caring. They built more Each year, teams of Boehringer Ingel- than 50 bicycles for needy children, heim Pharmaceutical Inc. employees painted 20 murals that will decorate take part in the annual United Way the hallways of hospitals in the USA, Local cooperations and pojects 53 corporate responsibility Corporate Citizenship United Way Day of Caring in the USA: Boehringer Ingelheim employees assembled more than 50 bicycles for needy children. assembled and donated 2,000 person- ees quickly made donations in money al care kits to help people impacted by and in kind, delivering materials to two natural disasters, served more than middle schools in the quake-hit areas 10,000 meals to hungry families in through a local charity organisation. A the community, helped build new substantial cash donation raised by the homes, raised funds for breast cancer, staff and the company was donated to diabetes and childhood obesity Shanghai Red Cross Society to help the awareness programmes and supplied victims in Yushu. backpacks and other school supplies to needy children. In September 2010, a new hospital, now named Lingxing Boehringer Employees also donated their time to Ingelheim Hospital, was inaugurated help the Regional Hospice of Western in Lingxing Town, Mian Yang City in CT raise funds to help patients and Sichuan Province. It was constructed their families and provided medical with the help of donations from services at Boehringer Ingelheim Boehringer Ingelheim China and its AmeriCares Free Clinic. In total, employees. The original municipal Boehringer Ingelheim employees do- hospital was badly damaged in the nated their time and talents to more 2008 earthquake. than 400 different non-profit organisations across the country. China: Lingxing Boehringer Ingelheim Hospital was constructed with the help of donations of employees from Boehringer Ingelheim China. Cooperation with Shanghai Red Cross Society Boehringer Ingelheim China employees responded rapidly to the magnitude 7.1 earthquake that struck Yushu in Qinghai Province in April 2010, leading to a great loss of life. Employ- 54 Boehringer Ingelheim annual report 2010 Partnership with academic research Boehringer Ingelheim regards its cooperation with academic research and its involvement in public-private partnerships as active citizenship, as service to society. Pharmaceutical biotechnology – Ten of the graduates have decided to cooperation with a German university enter the profession. One of the female In the pharmaceutical biotechnology pharmaceutical biotechnology gradu- faculty of Biberach University of Ap- ates, Martina Stehmer, has already been plied Sciences in Biberach, Germany, employed at Boehringer Ingelheim. She the bachelor degree course in pharma- did her practical semester and her sub- ceutical biotechnology has since 2006 sequent graduate work at the company. been orientated towards the development and production of biopharma- Graduates can now also pursue fur- ceuticals. As a public-private partner- ther qualification in the field of phar- ship, with Boehringer Ingelheim as its maceutical development and produc- industrial partner, the study pro- tion. In a cooperation with Biberach gramme remains unique in Germany. University and Ulm University, a joint In the winter semester 2010, 211 stu- masters programme in pharmaceutical dents were enrolled. biotechnology was established in 2010. Twenty-two students enrolled for the Biberach University held its first grad- winter semester 2010. uation ceremonies in 2010, with a total of 56 biotechnologists receiving Based on a good bachelor-level educa- their bachelor of science degrees at ac- tion in pharmaceutical biotechnology, ademic celebrations. biochemistry and biology with a focus on molecular biology, or a study Pharmaceutical Biotechnology graduates 2009/2010 Good networking between the university and industry from the outset has provided students with many insights into practices involved, in lectures by representatives of industry, site visits , and finally a practical semester in which students can, among other things, show their ability at Boehringer Ingelheim’s research site in Biberach. Partnership with academic research 55 corporate responsibility Now a Boehringer Ingelheim employee, Martina Stehmer, pharmaceutical biotechnology graduate from the first batch of graduates, winter semester 2009/10. Corporate Citizenship course with essentially the same con- Some 150 years ago, Rudolf Virchow, tent, the masters study programme is the German biologist , sometimes orientated towards research, develop- called the father of social medicine, ment and production. The academic established that every organism con- goal of the programme, lasting four sists of cells – omnis cellula e cellula – consecutive semesters, is a master of and that the only source for a living science (M.Sc.) qualification in the cell is another living cell. Just how a field of pharmaceutical biotechnology cell manages to divide flawlessly time which, among other things, paves the after time has fascinated biologists way to studying for a doctorate. ever since. At Biberach University, the Institute It is of vital importance for a living or- for Pharmaceutical Biotechnology, ganism that the process of cell division, founded in 2007, is at the disposal of or mitosis, is tightly controlled by the the masters degree programme. In cells’ internal mechanisms. The slight- close cooperation with Boehringer In- est mistake can result in a tumour, or, if gelheim as their industrial partner, it occurs during reproduction, be the and with national and international cause of infertility or birth defects. universities, the institute handles research projects in biopharmaceutical Leading European cell cycle research production processes. For over 20 years, scientists at the IMP, have been investigating cell divi- The Institute of Molecular Pathology sion, acquiring a wealth of expertise The IMP is a basic biomedical research and gaining an international reputa- centre sponsored largely by Boehringer tion in the field of molecular cell biol- Ingelheim. Internationally regarded as ogy. a centre of excellence in molecular biology and genetics, the institute focus- MitoCheck - coordinated by the IMP es its research on molecular and cell In 2004, the European Commission biology, including structural biology, launched MitoCheck, an international disease mechanisms, and the emerging research initiative on cell cycle regula- field of circuit neuroscience. It further tion, coordinated by the IMP. aims to promote interdisciplinary research, bringing together expertise in The project brought together leading optical engineering, computation, and scientists from eleven research insti- bioengineering. tutes, universities and industry in Austria, Germany, the UK, Italy and 56 At its site in Vienna, Austria, the IMP France. Under the guidance of Jan- cooperates closely with the Institute of Michael Peters, Senior Scientist at the Molecular Biotechnology of the Aus- IMP, they joined forces to address a trian Academy of Sciences (IMBA) and question that no single research group other research institutions of the Cam- could have tackled, namely to find pus Vienna Biocenter. each and every gene and protein in- Boehringer Ingelheim annual report 2010 volved in the process of cell division. The project was successfully terminated after five years and its results were published by the esteemed journals Nature and Science in spring 2010. In total, 22,000 human genes had been ”The remarkable thing about MitoCheck is that technologies had to be developed which in turn led to new questions being addressed. So science and technology were fruitfully pushing each other along.” screened with 600 found to play a role in cell division. The results are now freely available to the scientific community (www.mitocheck.org), cre- jan-michael peters, senior scientist, institute of molecular pathology, vienna, austria ating a valuable resource on which future research can draw. One of the new methods developed is high-throughput imaging of living up the challenge of tackling mitosis cells. Using RNA-interference, all from a systems biology perspective. 22,000 genes from a human cancer cell line were inactivated one by one. The Over the next five years, MitoSys will cells were then recorded for 48 hours attempt to develop quantitative assays under a microscope. This generated al- for the behaviour of mitotic proteins, most 200,000 time lapse movies, each to use these assays to build mathemat- of them showing what happens when a ical models for key aspects of mitosis particular gene is silenced. in human cells, to experimentally test predictions of these models, and ulti- To process this vast amount of infor- mately to merge the individual models mation in an automated way, advanced of mitotic processes into a first com- computer software had to be created. prehensive model of mitotic division The technique developed for systemat- in human cells. ically silencing all genes in an organism was a success in itself. A year after Achieving these ambitious goals will it had been published, it was already in involve the collaboration of interna- use by more than ten research groups tionally leading mathematicians, bio- across Europe. chemists, biophysicists and biologists working at 13 research institutes, uni- The MitoSys project versities, international organisations But knowing the genes and proteins and companies in eight European involved in mitosis is not the end of countries. After the IMP’s successful the story. The scientists have yet to un- coordination of the MitoCheck project, cover how these players act and inter- Jan-Michael Peters will stay on to head act at the molecular level. A follow-up MitoSys. project, MitoSys, which started in June 2010 under the European Union’s seventh framework programme, will take Partnership with academic research 57 corporate responsibility Corporate Citizenship The Boehringer Ingelheim foundations The Boehringer Ingelheim foundations are independent, not-for-profit organisations. By supporting research and science, they provide a fundamental service to society. Today’s research is the basis of tomor- Boehringer Ingelheim Foundation: row’s developments. The scientific fostering excellence in sciences. sponsorship programmes of the Boeh- The foundation was established by ringer Ingelheim foundations are a Hubertus Liebrecht (1931 – 1991) in bridge to the future. Their vision: by 1977. This non-profit organisation promoting outstanding scientific promotes the medical, biological, achievements, important develop- chemical and pharmaceutical sciences. ments can be encouraged - thus add- Activities aim at funding basic re- ing, in the long run, to our quality of search, for example with the Plus life. 3-Perspectives Programme for young leaders of independent research groups. Also, from 2011 onwards, the foundation will honour outstanding research with the celebrated Heinrich Wieland Prize. What is more, the foundation can support scientific events that act as a platform for an exchange of ideas between different generations of scientists. As a sign of its strong bond to the founder’s native region, the foundation has been devoting special attention to the University of Mainz. For instance, it awards the Boehringer Ingelheim Prize to outstanding young researchers at Mainz University’s medical school. The ribosome, the cell’s protein synthesising factory (left), “fishes“ for helper proteins – the so-called elongation factors. Photo by Dr Niels Fischer, former PhD fellow of the Boehringer Ingelheim Fonds. 58 Boehringer Ingelheim annual report 2010 Institute of Molecular Biology (IMB) The founding director of the IMB, The pledge to support the Institute of Professor Christof Niehrs, is one of the Molecular Biology (IMB) at the Uni- world’s leading cell and developmen- versity of Mainz with EUR 100 million tal biologists. The official opening cer- for a period of ten years represents a emony of the IMB was conducted in milestone in the history of the Boe- March 2011. hringer Ingelheim Foundation. The purpose of this donation is to foster an institute for top-level research that will complement the research already being run in Mainz, with scientists and facilities that meet international standards of excellence. Questions to Professor Christof Niehrs, founding director of the Institute of Molecular Biology Prof. Niehrs, you have left behind a repair. We need a broad range of dis- on the key issues of epigenetics and highly attractive environment – the ciplines and methods if we are to DNA repair. And we have chosen an German Cancer Research Centre – to answer the key questions – for ex- area that holds much promise for come to Mainz and set up the Insti- ample, how genes are regulated, the future, an area that looks at tute of Molecular Biology (IMB) as switched on and off, during certain some of the currently most exciting its founding director. What do you phases of development and in the issues in bioscience. Our institute find most exciting about this new stem cells. We have known about the can create synergies that will foster challenge? book of life, the DNA Code, since ge- research significantly, taking it far nome sequencing. But we still need beyond what existing epigenetic re- to read it better.” search centres have achieved.” prof. christof niehrs: “I see this as a unique opportunity in a scientist’s life: having the chance to set up an institute and realize my own vision and goals. The IMB will not How will the institute be structured? prof. christof niehrs: “The be the usual type of research centre, institute offers space for three research but an institute with an exceptional departments and up to 12 indepen- degree of flexibility and – thanks in dent groups of scientists. This is particular to the Boehringer Ingel- complemented by state-of-the-art heim Foundation – outstanding re- technology with the most efficient search conditions.” equipment available today.” What type of research will be carried What are the goals of the IMB? out at the IMB? prof. christof niehrs: “The prof. christof niehrs (photo: peter pulkowski) prof. christof niehrs: “Our mission is top-level basic research. focus of our work is on epigenetics, We aim to become one of the world’s developmental biology and DNA landmark institutes concentrating The Boehringer Ingelheim foundations 59 corporate responsibility Corporate Citizenship Boehringer Ingelheim Fonds: passion ual basis. They do not only receive a for science competitive stipend, but also seminars This foundation for basic research in and personal support. biomedicine has been in existence Nobel Prize winner Prof. Venkatraman Ramakrishnan (3rd from left). B.I.F. Fellow Dr James Ogle (1st from left). since 1983. In its largest programme, Top-class science at the Titisee it supports up-and-coming scientists Twice a year, the Boehringer Ingelheim studying basic phenomena of human Fonds invites scientists of worldwide life as part of their PhD project. Only repute to its International Titisee Con- the best applicants are accepted after ferences. Since 1962, experts from all an extremely rigorous application nations have been meeting in the Black process. Some 140 grant holders have Forest (southern Germany) to discuss already been appointed professor and the latest results and developments in four have gone on to win Germany’s different areas of the molecular life most prestigious award, the Leibniz sciences. The conference traditionally Prize. In 2009, the Boehringer Ingel- brings together the leading scientists of heim Fonds (B.I.F.) could proudly an- two to three different fields to stimu- nounce that Dr James Ogle, a B.I.F. fel- late discussion across disciplines. For low, made a key contribution with his example, the Titisee Conference in doctoral thesis to the work of Prof. October 2010 was opened by Dr Mar- Venki Ramakrishnan, one of 2009’s tin Chalfie, winner of the Nobel Prize Nobel Laureates in chemistry. for Chemistry in 2008. In 2010, the Boehringer Ingelheim Fonds broke an important sound barrier, awarding the 1,000th PhD fellowship. The PhD programme sponsors 120 young scientists on a contin- Participants of the 102nd International Titisee Conference in October 2010. 60 Boehringer Ingelheim annual report 2010 Cultural commitment of Boehringer Ingelheim Bros. Boehringer Ingelheim Foundation for the Humanities and the Internationale Tage in Ingelheim, Germany. The Bros. Boehringer Ingelheim Foun- Internationale Tage Ingelheim dation for the Humanities The Internationale Tage (International The oldest of the three Boehringer Days) exhibitions in Ingelheim have foundations originated as an idea for for more than 50 years provided a gift to mark the 65th birthdays of special insights into the cultural tradi- Albert Boehringer Sr. and Julius tions of other countries, important Liebrecht, as well as the 60th birthday trends in art and the work of individu- of Dr Ernst Boehringer. In fact, the al artists. This ongoing cultural com- foundation was established in 1957 – mitment is an expression of the spirit “in gratitude for the achievement of of patronage to which Boehringer In- our fathers and in the binding knowl- gelheim’s shareholder family has dedi- edge that our culture has grown from cated itself since 1959. Photographer Axel Hütte at the exhibition of the Internationale Tage. intellectual vigour …” Albert Renger-Patzsch – Axel Hütte As it sponsors the humanities, the Rheingau* - Photographs foundation is quite different from the In 1953, C.H.Boehringer Sohn initiat- Boehringer Ingelheim Fonds and the ed and published “Lob des Rheingaus” Boehringer Ingelheim Foundation, (In Praise of the Rheingau), the first both of whom were established later illustrated book with photographs of and support basic research in the life Albert Renger-Patzsch. A further three sciences. It underlines the founders’ should follow: “Hohenstaufenburgen commitment for culture and the liber- in Süditalien”(Hohestaufen Castles al arts. in Southern Italy) - 1961, “Bäume” (Trees) – 1962, and “Gestein” (Rocks) – Dr Robert Boehringer, a close friend of 1966. Axel Hütte Burg Rheinstein, 2009 60 x 45 cm © Axel Hütte. the famous lyricist Stefan George, was appointed to the first scientific adviso- This cooperation over many years was ry council of the foundation. Today, based on the friendly association be- the foundation exclusively grants sub- tween the photographer and Dr Ernst sidies for the printing costs of research Boehringer. literature – e.g. doctoral theses – in the field of humanities. 125 years of Boehringer Ingelheim’s existence was the occasion for the Cultural commitment of Boehringer Ingelheim 61 corporate responsibility Albert Renger-Patzsch: view upstream into the Rhine valley, around 1950, 30 x 40 cm © Albert Renger-Patzsch Archive/ Ann and Jürgen Wilde /VG BildKunst, Bonn 2011. Corporate Citizenship shareholder family, and their fourth preciated exhibition of the Interna- generation in particular, to take up the tional Days – the company’s cultural Rheingau theme once again and to re- commitment for the last 50 years – interpret it: the company’s home, as in the Old Town Hall in Ingelheim, seen through the eyes of a photogra- Germany, in September 2010. Albert pher - then and now, almost 60 years Renger-Patzsch’s original prints, pre- later. pared for the publications “In Praise of the Rheingau” and “Trees”, also in- Albert Renger-Patzsch (1897–1966) is cluding unpublished prints, stand op- regarded as a pioneer of new function- posite Axel Hütte’s large format pic- alism in Germany. His direct, relevant tures created for this project and here photographic style formed the basis of shown publicly for the first time. modern photography. Axel Hütte (born 1951), the well-known German pho- Parallel to the special exhibition, the tographer and former pupil of Becher Internationale Tage has published a at the Kunstakademie in Düsseldorf, corresponding publication – a splen- is today considered as the uncontested did illustrated book which the interna- master of analogue landscape photo- tional experts are calling a milestone graphy. In the project, as stimulating in photographic publishing. as it is informative, Hütte combines the Renger-Patzsch pictures from the (*The Rheingau, facing Boehringer In- 1950s with historic postcards and his gelheim’s headquarters across the Riv- own works created between autumn er Rhine, is one of Germany’s most fa- 2009 and spring 2010. mous wine-growing regions ). A selection of the most beautiful pho- For more information, visit www.internationale-tage.de tographs was presented in a highly ap- 62 Boehringer Ingelheim annual report 2010 The Boehringer Ingelheim employee The quality of the work submitted by photography contest our employees over the years has been excellent, producing a successful exhi- Tradition stimulates For more information on the photography group, go to www.fotogruppe-ingelheim.com bition every year. The photography contest goes back a long way at Boehringer Ingelheim. Ini- The themes of past contests reflect the tiated by Dr Ernst Boehringer in 1954, wide range of topics provided, while it is now firmly established. the number of contestants taking part is clear evidence of their commitment. Right from the beginning, the share- Past mottos have included “People at holder family was interested in “Peo- work“ (1960), ”After work” (1962), ple and Employees.” What do employ- “Get fit” (1973), “Sport and us” (1982), ees do in their spare time, what are “People and their hobbies“ (1986), their hobbies? This philosophy is the “Seasons” (1994), and the “Pharma- basis of the annual selection of topics. cist” (1995). Even now, it is always exciting to see The motto for the 2010 photo contest how the selected topic stimulates was “What living healthily means to me” employees’ creativity and the way in The following pictures were chosen as which the topics are turned into reality. winners from among many entries. The three winning photos of the employee photo contest 2010: “What living healthily means to me”. Cultural commitment of Boehringer Ingelheim 63 research and development Driving Innovation: How do we help treat diseases to achieve better therapeutic outcomes? Research and development has laid the foundations for Boehringer Ingelheim’s success and remains the driving force for new and innovative medicines. In 2010, Boehringer Ingelheim invested EUR 2,306 million in research and development in Human Pharmaceuticals, which corresponds to a share of 23.8 % of Prescription Medicines’ sales. Over the last 10 years, Boehringer Ingelheim has conducted or funded 1,320 clinical studies with 106 substances in 87 countries in all regions of the world. 23.8 % 1,320 studies 64 Boehringer Ingelheim annual report 2010 R&D Research & Development Be first. Be best. Be focused. 66 Medical innovation 74 Be first. 78 Be best. 84 Be focused. 90 Idiopathic pulmonary fibrosis 99 Hepatitis C 100 Boehringer Ingelheim carries out drug discovery and development in six therapeutic areas at four major R&D sites and three smaller specialised sites. Globally, we in 2010 employed on average 7,093 highly qualified staff in research, development, and medicine. 7 R&D sites 7,093 Research and Development 65 research and development Be first. Be best. Be focused. Be first. Be best. Be focused. What drives innovation at Boehringer Ingelheim? What R&D strategy is required to ensure the future success of Boehringer Ingelheim in providing innovative medicines to meet unmet medical needs? The answers define the core of Boehringer Ingelheim’s R&D innovation and revolve around three recurring objectives: Be first. Be best. Be focused. 66 Boehringer Ingelheim annual report 2010 [ research and development at boehringer ingelheim ] Our employees in R&D continue every day to translate visions into experiments, into clinical trials, and in the end into marketed drugs. in the laboratory: dr wolfgang baiker, corporate senior vice president development (left) prof. klaus dugi, corporate senior vice president medicine (middle) prof. wolfgang rettig, corporate senior vice president research (right) Be first. Be bast. Be focused. 67 research and development Be first. Be best. Be focused. medicines. Our scientists are also not alone in “Innovation is not an event. Innovation is an ongoing process and a mindset.” charting new territory. They have built a tradition of trust and collaboration with researchers at universities and basic research institutes who best understand disease mechanisms and who prof. wolfgang rettig, corporate senior vice president research, ingelheim, germany are eagerly looking for means to change faulty mechanisms at the molecular level. With teams and tools in place, the focus goes back to being first. The courage and aspiration to Why is the daily challenge to be first so important dedicate years of hard work, scientific alacrity, a to our R&D scientists? big portion of trial and error, and a little pinch of wolfgang rettig: To be first in drug discovery does not mean to run fast. It is not about luck before arriving at the ultimate blueprint for an innovative medicine. cutting corners. It is all about courage and aspirations. It is the courage to take on daunting scien- klaus dugi: A good example for being first tific challenges, which do not come from an ivory on the market is our new oral anticoagulant tower but directly from daily living. It is the aspi- pradaxa® (dabigatran etexilate). pradaxa® repre- ration to change people’s lives. sents an alternative to oral vitamin K antagonists which have been used in various indications for Why do central neurons decay in the brain, more than 50 years. pradaxa® is the first oral memory circuits go awry and mental functions thrombin inhibitor representing a novel mecha- deteriorate in people struck by Alzheimer’s dis- nism of action and is therefore a revolution for ease? What makes lung tissue stiff and unable to patients suffering from atrial fibrillation who are pick up enough oxygen? Why do hidden clusters at risk for developing an ischaemic stroke. of cancer cells lie dormant for years and show up many years after surgery or chemotherapy to For the 150 mg twice daily dosage regimen, it form metastases? How to design medicines to was shown in the RE-LY® trial that this dose of prevent this process? Why is the control of blood dabigatran etexilate was safer than the estab- pressure, blood sugar and blood lipids still una- lished standard warfarin with regard to intracra- ble to eliminate all heart diseases and risk of nial, life-threatening and any bleeding events, stroke? more efficacious with regard to the reduction of stroke risk and more convenient, because there Questions like these lead our R&D scientists into was no need for monitoring of pradaxa®. uncharted territory. When they start the journey, they are well-equipped. State-of-the-art technol- 68 wolfgang baiker: Innovation should be ogies allow studies of genetic disease factors in viewed as a continuum rather than a discrete minute detail, visualise the role of receptors and one-off quality. Depending on existing, or not signals in living cells, bridge the gap between existing medication, the degree of innovation can clinical research findings and molecular struc- in the end only be judged by patients, prescribers, tures, and provide a richness of chemical struc- and payers. In some cases, it can take some time tures to be screened, redesigned, and fine-tuned until an innovation is appreciated by the market. in the laboratory as blueprints for innovative In the case of pradaxa®, Boehringer Ingelheim is Boehringer Ingelheim annual report 2010 certain that the excellent results of our clinical “Innovation should be viewed as a continuum rather than a discrete one-off quality.” trials are so convincing that the degree of innovation of pradaxa® should be appreciated soon. dr wolfgang baiker, corporate senior vice president development, ingelheim, germany Why to be best shows our R&D scientists’ commitment to sustained innovation for patients? wolfgang baike r: Being best refers to a variety of parameters, which add value to the patient. As mentioned, innovation can have different degrees, depending on different needs and burden for patients with several illnesses may in- perspectives. We at Boehringer Ingelheim do not crease compliance and lead to better treatment only focus on breakthroughs, we ask ourselves in outcomes. many ways how to add value with our medication. Being best means comparing existing medi- wolfgang re ttig: Being best in drug dis- cation and treatment regimens and adding better covery research is all about a sustained commit- medication. This could be reflected in better effi- ment to better health. Instead of asking ques- cacy, fewer side effects, better treatment for a tions simply about treatment options, like ‘Is subgroup of patients or simply more convenience there a medicine for this disease?’, R&D scien- in usage. For example, lowering the so-called pill tists look harder. Dabigatran etexilate (Pradaxa®) A good example of being first on the market is our new oral anticoagulant pradaxa® (dabigatran etexilate). pradaxa® represents an alternative to oral vitamin K antagonists which have been used in various indications for more than 50 years. CH2 NH2 [ dabigatran etexilate ] Molecule structure NH EtOOC Carbon Oxygen Nitrogen CH2 NH2 EtOOC CH2 [ dabigatran etexilate ] Last step of the synthesis of the substance Be first. Be best. Be focused. 69 research and development Be first. Be best. Be focused. Can a new medicine be more selective in treating Often, R&D projects take unexpected turns and the disease and avoiding adverse effects, by tar- teams are challenged repeatedly to find the right geting a different receptor, a newly discovered way. Ultimately, it will be the patients, the pre- receptor subtype, or by avoiding unwanted recep- scribers, and the payers, who decide whether a tors? Can a new medicine target a second recep- novel medication does indeed address a clinically tor and strengthen the therapeutic effect? Can a relevant unmet medical need. new medicine be paired with a new diagnostic test? Do new medicines avoid cumbersome labo- Why are our R&D scientists wide open to many ratory checks and visits to the doctor’s office? sources of inspiration and insight, but need to be focused every step of the way? The goal to be best in drug discovery is always klaus dugi: Even though there is still a challenging when it comes to deciphering the ge- very large number of diseases with significant netic and molecular details of disease, the design unmet medical need, it is important for any of smarter molecules, and the fine-tuning for pharmaceutical company to focus on areas of highly ambitious goals. special expertise, due to the natural limitations in capacity and budget. klaus dugi: Being best means, you have to be able to define how the added value of the nov- Boehringer Ingelheim, for instance, has a long- el medication can be demonstrated to patients, term expertise in respiratory diseases. However, physicians, and payers. after a past decision to address unmet medical needs in newer therapeutic areas, we now also New compounds from Boehringer Ingelheim have focus on oncology, immunology and inflamma- to be investigated in clinical trials to define how tion as well as metabolic diseases. they provide additional benefit to patients compared to currently available drugs. The quality of wolfgang baiker: Today, the blueprint of the clinical development programme is of utmost the human genome or mutations in the genome, importance. It may be reflected by focusing on the which can lead to cancer, are known. In oncolo- indications with the highest unmet medical need, gy, Boehringer Ingelheim develops substances by testing more than one dose in large-scale clini- that are effectively targeting various tumours re- cal trials or by defining the dosage based on the sulting from different mutations. pharmacokinetic properties of the compound. Innovative technologies have enabled scientists to look at disease in a holistic way. Given these “Ultimately, it will be the patients, the prescribers, and the payers, who decide whether a novel medication does indeed address a clinically relevant unmet medical need.” developments, our scientists can even focus on sub-groups of patients, where new medication is best suited for treatment. Personalised medicine describes this new approach aptly. Our focus on personalised medicine ensures that the patient receives the right medication with high efficacy prof. klaus dugi, corporate senior vice president medicine, ingelheim, germany and safety. Growing knowledge on the physiological and pathophysiological context of diseases and on 70 Boehringer Ingelheim annual report 2010 Being best means comparing existing medication and treatment regimens and adding better medication. New compounds from Boehringer Ingelheim have to be investigated in clinical trials to define how they provide additional benefit to patients compared to currently available drugs. The quality of the clinical development programme is of utmost importance. [ linagliptin ] molecule structure 1) CF3COOH 2) K2CO2, H2O Carbon Oxygen Nitrogen NH2 [ linagliptin ] last step of research synthesis molecular pathways also enables us to use bio- There are more opportunities to design and cre- markers. These biological markers serve as indi- ate unique chemical and protein molecules in the cators for a normal biological state versus patho- laboratory, to serve as potential new medicines, genic processes. They allow us to diagnose a than stars in the universe. disease in a patient, to determine disease risk, or to judge whether treatments are successful. The daily work in cross-functional teams brings together very diverse professional experience to a wolfgang rettig: At times, the sheer numbers involved are difficult to comprehend. single task: working in one team to design the one innovative molecule to reach patients. A human genome has 5 billion base pairs and 25,000 genes, endless DNA sequence polymorphisms and protein modifications. There are hundreds of human diseases in medical registries and thousands of disease genes. Myriad permutations of signalling pathways exist inside cells and between cells. Be first. Be best. Be focused. 71 research and development Be first. Be best. Be focused. Research & Development In accordance with our research and development (R&D) strategy, we carry out drug discovery and development in six therapeutic areas at four major R&D sites and three smaller specialised sites 13 It takes on average 13 years to develop a new medication. laval, canada ridgefield, usa 7 R&D Sites [ research and development sites ] Our major research and development centres are located in Biberach (Germany), Laval (Canada), Ridgefield (USA) and Vienna (Austria), supported by units in Buenos Aires (Argentina), Kobe (Japan), and Milan (Italy). These R&D activities are supported by alliances in North America and Europe as well as China, India and Russia. We are also engaged in a broad array of collaborations with leading universities and basic research institutes. 72 Boehringer Ingelheim annual report 2010 buenos aires, argentina 94 [ research areas ] Boehringer Ingelheim has 94 projects in development (as of 31 December 2010). Of these, 40 are in pre-clinical development, 9 are in clinical development phase I, 19 in phase II, 13 in phase III and 13 are either in registration or have recently been launched and continue to be profiled clinically. Major R&D sites Smaller, specialised R&D sites biberach and ingelheim, germany vienna, austria milan, italy kobe, japan Research areas research areas examples of disease areas sites Respiratory diseases Asthma COPD Idiopathic pulmonary fibrosis Biberach (Germany) Cardiometabolic diseases Atherosclerosis Diabetes Metabolic syndrome Obesity Thrombo-embolic diseases Biberach (Germany) Ridgefield (USA) Oncology Lymphoma Leukaemia Solid tumours Vienna (Austria) Neurological diseases Alzheimer’s disease Chronic pain Migraine Parkinson’s disease Biberach (Germany) Immunology Multiple sclerosis Psoriasis Rheumatoid arthritis Ridgefield (USA) Infectious diseases Hepatitis C HIV/AIDS Laval (Canada) Research & Development 73 Be first. Be best. Be focused. research and development Medical innovation R&D is all about meeting unmet medical needs. At Boehringer Ingelheim, networks of specialised scientists collaborate at seven sites around the world to translate their ideas into medications. In 2010, R&D investments in biotherapeutics were increased to ensure that the best-suited type of molecule can be chosen to modify the disease. We are focused on very different diseases, which have one theme in common: patients need new and/or better medications Cardiometabolic diseases regard to metabolic diseases, the company fo- Metabolic diseases are complex, chronic diseases, cuses on new strategies for the treatment of dia- which can affect the entire population, regardless betes, lipid disorders/atherosclerosis, and obes- of age. One example of a metabolic disorder is ity. Together with the treatment of hypertension, obesity. Obesity is the most important cause of type these therapies complement each other to reduce 2 diabetes, which can lead to hypertension and dis- the risk of cardiovascular mortality and morbid- orders of the lipid metabolism. This combination of ity. disorders of all of the above increases the risk of suffering or dying from a cardiovascular event. Central nervous system (CNS) diseases The likelihood of a neurological disease increas- Chronic kidney disease is characterised by a pro- es with age. In most of these diseases, such as gressive loss in renal function over time period of Parkinson’s or Alzheimer’s disease, the patient months or years. It is often associated with diabe- eventually needs long-term care, which places a tes, hypertension, and glomerulonephritis, and is significant strain on the caretakers in the family often poorly managed with current therapies. or in nursing homes. Boehringer Ingelheim’s research efforts in the field Progressive degeneration of the nerve cells is of cardiovascular and chronic kidney diseases are typical for all chronic neurological diseases. Our designed to develop treatments that will influence scientists are investigating ways of identifying the course of these life-threatening diseases. With and developing new treatments which can intervene in the process. The aim is to provide patients and doctors with improved treatments to The Boehringer Ingelheim pipeline in 2010 address the symptoms of these diseases, and to (94 projects in development) find ways of inhibiting the basic pathological processes, which are responsible for disease pro- Respiratory Oncology gression. 19 26 Immunology In addition, we are actively involved in research 9 11 CNS Infectious diseases into novel analgesics, which are believed to be 22 7 Cardiometabolic diseases effective in the prevention and treatment of pain. The company is investigating compounds to specifically inhibit fundamental mechanisms of pain 74 Boehringer Ingelheim annual report 2010 Rheumatoid arthritis is a chronic, lifelong disease that has significant impact on patients’ lives. Our researchers are working to establish effective therapies that target inflammation and joint destruction via novel mechanisms. Picture: © DR P. MARAZZI / SPL / Agentur Focus transduction in a multitude of chronic pain con- Multiple sclerosis is a chronic immune-mediated ditions. Such new drugs are expected to provide inflammatory disease of the central nervous physicians with effective new treatment options system and is a common cause of neurological with fewer side effects for millions of patients. disability already in young and middle-aged adults. Although several drugs have recently Most recently, we extended our research efforts into become available to treat this disease, many psychiatric diseases, the largest segment of CNS dis- carry a significant risk of serious side effects that orders in terms of prevalence, by ways of subtly may increase with time. Boehringer Ingelheim’s modulating neurotransmitter systems, which are research in multiple sclerosis is focused on believed to be out of balance in these diseases. identifying drugs that protect the patient from the progressive disability that results from this Immunology and inflammation chronic disease. We are also engaged in the discovery and development of new therapeutic agents for the treat- Infectious diseases ment of autoimmune and chronic inflammatory The introduction of new treatments for infec- diseases. The major focus in this field includes tious diseases has accelerated in recent decades rheumatoid arthritis, psoriasis and multiple scle- and this trend is projected to continue in the rosis. In addition, inflammation is an important coming years. The engines for this growth have mechanism underlying many diseases and there- been, on the one hand, technological advances fore research in this area may have therapeutic resulting in the discovery of new pathogens benefit in a wide range of diseases also in other associated with human diseases, and on the other therapeutic areas. hand, understanding of how to target these pathogens with highly specific agents that have Autoimmune diseases, such as rheumatoid ar- good tolerability as well as efficacy. The result thritis, are chronic, lifelong diseases that have has been a number of innovative drugs for per- significant impact on patients’ lives. Although sistent infections, for which no effective therapy some efficacious therapies are available, there re- had previously existed. Nevertheless, the emer- mains a significant unmet medical need, because gence and transmission of drug-resistant patho- many patients do not respond to these drugs or gens creates a continuing demand for new other patients lose therapeutic benefit over time. agents with different cross-resistance profiles. Thus, our researchers are working to establish effective therapies that target inflammation and In spite of the advances of the last two decades, joint destruction via novel mechanisms. exemplified by the enormously improved Medical innovation 75 research and development Be first. Be best. Be focused. Respiratory diseases HIV/AIDS treatment Boehringer Ingelheim is one of the leading Advances in R&D are exemplified by the enormously improved management of HIV-infected patients as the result of combination antiretroviral therapy. pharmaceutical companies worldwide in the treatment of airway diseases. Research and development are focused particularly on asthma, chronic obstructive pulmonary diseases (COPD), and idiopathic pulmonary fibrosis. Picture: HI virus The respiratory disease asthma is a chronic allergy which can be life-threatening. In industrialised countries, 5 – 10% of the population suffers from asthma and the prevalence is increasing. COPD is the fifth most common cause of death in management of HIV-infected patients as the re- industrialised countries, and the prevalence is sult of combination antiretroviral therapy, many also increasing as well. infectious diseases remain poorly treated. Our focus of infectious diseases research is on patho- Our scientists are investigating and developing gens responsible for very significant human dis- new substances for the treatment of airway dis- eases where effective therapy is lacking. The goal eases with the aim of being able to offer patients is to introduce the next generation of innovative and doctors improved therapies with high effica- new therapies to address the continually evolv- cy, few side effects and convenient dosage forms ing unmet medical need presented by infectious and regimens. diseases. Inlicensing and partnering Oncology Boehringer Ingelheim has continued to strength- Opportunities for effective drug discovery in on- en its Research & Development programmes in cology have never been better. Blueprints of the biopharmaceuticals through external partner- genetic and biochemical workings of cancer cells ships. As in previous years, one focus of our allow scientists in our laboratories to rapidly in-licensing and partnering activities was on home in on promising targets for innovative biopharmaceuticals, in particular monoclonal drugs. The impact of modern cancer genetics, bi- antibodies. ochemistry and biology is beginning to change the practice of medicine in oncology, with both The company entered into a long-term collabora- biopharmaceuticals and small-molecule drugs tion with the Swiss biotech company 4-Antibody providing a growing repertoire of therapies. AG to discover and to develop fully human therapeutic antibodies for a number of targets in var- 76 Drug discovery at Boehringer Ingelheim aims to ious disease indications. With the US-based com- develop new cancer medicines with clear thera- pany Micromet, Inc a partnership was started peutic benefit. We pursue the search for new can- with the goal to research, develop and commer- cer drugs along several fronts, including cell sur- cialise a new BiTE antibody for the treatment of face receptor signalling pathways, cell cycle multiple myeloma. Furthermore, Boehringer In- regulation, cancer cell survival and drug resist- gelheim entered into a global alliance with an- ance as well as tumour angiogenesis. other US-based partner company, Macrogenics Boehringer Ingelheim annual report 2010 Inc, covering antibody-based therapeutics, which structure is a human tumour suppressor pro- may span multiple therapeutic areas, including tein. This therefore represents an interesting immunology, oncology, respiratory, cardiometa- new approach to the treatment of various onco- bolic and infectious disease. Additionally, a col- logical indications. Finally, in the field of diabe- laboration and license agreement with the Aus- tes indications, Boehringer Ingelheim entered trian biotech company f-star Biotechnologische into a collaboration with the US-based Neuro- Forschungs- und Entwicklungsges. m.b.H was crine Biosciences Inc regarding the research and signed for the joint discovery of new antibody- development of low-molecular-weight GPR119 derived therapeutic products based on f-star’s agonists. This new mechanism stimulates both modular antibody technology. the production and secretion of the body’s own insulin and thus forms an ideal complement to In the field of small molecule therapeutics, we our growing pipeline in the area of diabetes. have also expanded our portfolio via partnering activities. Boehringer Ingelheim and Priaxon AG, Germany, entered into a worldwide partnership focusing on the research and development of MDM2-/p53 inhibitors in the treatment of cancer. Priaxon AG will contribute its innovative expertise in the field of discovering drugs with low molecular weight, which is particularly important in researching the inhibition of protein-to-protein interaction. The p53 target Collaboration with biotechnology companies Boehringer Ingelheim enters into collaborations with biotechnology companies to, inter alia, discover and to develop therapeutic antibodies for a number of targets in various disease indications. (Structure of a monoclonal antibody) Picture: © LAGUNA DESIGN / SPL / Agentur Focus Medical innovation 77 research and development Be first. Be first. pradaxa® offers patients and doctors the first new treatment option for stroke prevention in atrial fibrillation for more than 50 years. The medication represents a breakthrough innovation that has the potential to transform the anticoagulant market for patients and prescribers. First new treatment option for stroke prevention in atrial fibrillation. [ stroke prevention ] “The design and scope of the RE-LY® study yielded a revolution for patients and physicians alike-treatment with PRADAXA® results in better stroke prevention, less bleeding into the brain, and simple dosing, without monitoring, all at the same time!” dr paul reilly, clinical program director, clinical research, cardiovascular and metabolic diseases, ridgefield, usa 78 Boehringer Ingelheim annual report 2010 How atrial fibrillation affects the heart atrial fibrillation normal heart sinoatrial node left atrium atrioventricular node right atrium sinoatrial node What are the risk factors for atrial fibrillation (AF) ? left atrium atrioventricular node left ventricle right ventricle right atrium left ventricle • Family history of AF • Cardiovascular disease at advancing age • History of heart disease • Echo-cardiographic abnormalities • Thyroid disorders • Sleep apnoea • Excessive alcohol intake right ventricle Picture: © PASIEKA / SPL / Agentur Focus Epidemiology of atrial fibrillation Pathophysiology and symptoms of atrial fibrillation Atrial fibrillation (AF) is the most common heart In patients with atrial fibrillation (AF), the nor- rhythm condition, affecting around 1% of the to- mal control of heart rhythm is disrupted, leading tal population, rising to 10% in people over the to rapid and irregular electrical signals, which age of 80. A total of 6.3 million people in the cause the atria to quiver rather than contract in a USA, Japan, Germany, Italy, France, the UK and coordinated fashion. This reduces the efficiency Spain were living with AF in 2007 and this is ex- with which blood is pumped from the atria to the pected to increase to 7.5 million by 2017 prima- ventricles and blood stasis (pooling) can occur. rily due to the ageing population. Symptoms of AF include palpitations, dizziness, chest pains and breathlessness. Although some people with AF can experience the symptoms on a regular basis, others may never, or rarely, experience symptoms. + 60 % Hospital admissions caused by AF increased 60 % in the last 20 years. Read more about dabigatran: page 82 Be first. 79 Be first. research and development How atrial fibrillation (AF) leads to stroke AF is associated with several serious consequences. The rapid and irregular atrial activity in AF reduces the efficiency with which blood is pumped from the atria to the ventricles. Blood clots (thrombi) can form in the atria following the pooling of blood (stasis) that can dislodge and travel in the bloodstream, potentially blocking blood vessels in the brain and leading to ischaemic stroke. 5 Brain starved of oxygen leading to stroke and brain damage 4 Embolus blocks blood flow to part of the brain Internal carotid artery Common carotid artery 3 Embolus (clot) enters blood stream and travels towards Brain 1 Atrial fibrilation in the left atrium Aorta 2 Embolus (clot) forms Heart 80 Boehringer Ingelheim annual report 2010 Stroke is the leading complication of AF Furthermore, the reduction in cardiac output ob- AF increases the risk of stroke approximately served in AF can precipitate heart failure, leading five fold. It is responsible for nearly one-third of to accumulation of fluid in the legs (peripheral all strokes and is the leading cause of embolic oedema) and lungs (pulmonary oedema), or dys- stroke. As many as three million people world- pnoea, fatigue and chest pain. AF has also been wide have an AF-related stroke every year; equiv- associated with poorer clinical outcomes in pa- alent to one person every 12 seconds. One in four tients suffering a myocardial infarction and in people aged 40 years or older develop AF during patients with acute coronary syndromes. their lifetime, making it the most common heart rhythm abnormality. Three out of four AF-related strokes can be prevented, but many patients are not aware of their risk and do not take action to prevent stroke. AF-related stroke is associated with a heavy burden of morbidity and mortality. For example, stroke is more likely to be fatal in patients with AF, and those who survive face persistent neu- 5x The risk of stroke is five times higher with atrial fibrillation. rological deficits, persistent disability and poorer functional performance. [ stroke prevention ] “These remarkable conclusions were only achieved through the dedication and hard work of the thousands of employees, investigators, nurses, and patients who managed or took part in RE-LY®.” dr janet schnee, executive director and medical leader, cardiovascular medical affairs, ridgefield, usa Be first. 81 research and development Be first. Our research and development in thrombo-embolic diseases Dabigatran etexilate is at the forefront of a new generation of oral anticoagulants/direct thrombin inhibitors (DTIs) targeting a high unmet medical need in the prevention and treatment of acute and chronic thrombo-embolic diseases. Pradaxa® - a direct thrombin inhibitor patients (150 mg bid, twice daily, Potent anti-thrombotic effects are 75 mg for patients with severe renal achieved with direct thrombin inhibi- impairment). In Canada, dabigatran tion. Thrombin is the central enzyme etexilate was also approved (150 mg in the process responsible for clot bid/110 mg bid for patients older than (thrombus) formation. Dabigatran 80 years) in this indication. etexilate provides effective, predictable 35 % Dabigatran etexilate significantly reduced the risk of stroke and systemic embolism by 35%. and consistent anticoagulation with a RE-LY® - the basis for approving da- low potential for drug-drug interac- bigatran etexilate tions and no drug-food interactions, The approvals of dabigatran etexilate without the need for routine coagula- were based on the landmark RE-LY® tion monitoring or dose adjustment. (Randomized Evaluation of Long-term anticoagulant therapy) trial, which First indication for Pradaxa® was published in 2009 in the New In its first indication, dabigatran etexi- England Journal of Medicine. late is approved in more than 75 countries under the trademark pradaxa® The pivotal phase III RE-LY® trial was for the primary prevention of venous the largest completed trial of its kind, thrombo-embolic events (blood clots) with over 18,000 patients worldwide. in adults who have undergone elective It compared the efficacy and safety of total hip or knee replacement surgery. two doses of dabigatran etexilate with warfarin (titrated to INR 2.0 to 3.0) for A breakthrough treatment for stroke the prevention of stroke and systemic risk reduction in non-valvular AF embolism in patients with AF. In the USA, the US Food and Drug 82 Administration (FDA) has approved RE-LY® results pradaxa® for stroke risk reduction in Results from RE-LY® showed that in patients with non-valvular AF, mark- patients with AF, dabigatran etexilate ing the first approval of a new oral an- 150 mg bid significantly reduced the ticoagulant in the USA for more than risk of stroke and systemic embolism by 50 years. The approval made pradaxa® 35% compared to warfarin, with com- available to a broad spectrum of parable rates of major bleeding. Boehringer Ingelheim annual report 2010 Dabigatran etexilate 110 mg bid dem- The dabigatran etexilate clinical trial onstrated similar reductions in stroke programme and systemic embolism, while deliver- Boehringer Ingelheim’s clinical trial ing a reduction in major bleeding rates programme encompasses studies to- compared to warfarin. Additionally, talling more than 18,000 patients in: both doses showed a significant reduction in haemorrhagic stroke and a significant reduction in life threatening, • Treatment of acute venous thromboembolism (VTE) intracranial and total bleeding com- • Secondary prevention of VTE pared to warfarin. • Secondary prevention of cardiac events in patients with acute coro- Implications of RE-LY® pradaxa® offers patients and doctors the first new treatment option for stroke nary syndrome (ACS) 1960 wafarin 2010 pradaxa prevention in AF for more than 50 years. It represents a breakthrough innovation (first-in-class) that has the potential to transform the anticoagulant pradaxa® offers patients and doctors the first new treatment option for stroke prevention in AF for more than 50 years. therapy for patients and prescribers. Sources Atrial Fibrillation p.78—81: 1. Lin HJ, Wolf PA, Kelly-Hayes M, et al. Stroke severity in atrial fibrillation: the Framingham Study. Stroke 1996; 27:1760-4 2. Atlas of Heart Disease and Stroke, World Health Organization, September 2004. Viewed July 2009 at http://www.who.int/cardiovascular_disease/en/cvd_atlas_15_burden_stroke.pdf. 3. Wolf PA, Abbott RD, Kannel WB. Atrial fibrillation as an independent risk factor for stroke: the Framingham Study. Stroke 1991; 22(8):983-8. 4. Lloyd-Jones DM, Wang TJ, Leip EP, Larson MG, Levy D, Vasan RS, et al. Lifetime risk for development of atrial fibrillation: the Framingham Heart Study. Circulation 2004; 110:1042-6. 5. Stewart S, Murphy N, Walker A, et al. Cost of an emerging epidemic: an economic analysis of atrial fibrillation in the UK. Heart 2004; 90:286-92. 6. Fuster V, Rydn LE, Cannom DS, et al. ACC/AHA/ESC 2006 Guidelines for the management of patients with atrial fibrillation – executive summary. Circulation 2006; 114:700-52. 7. Kannel WB, Abbott RD, Savage DD, et al. Coronary heart disease and atrial fibrillation: the Framingham Study. Am Heart J 1983; 106:389-96. 8. Collony SJ et al. Dabigatran versus Warfarin in Patients with Atrial Fibrillation. N Engl J Med 2009;361:1139-1151. 9. Hart RG et al. Meta-analysis: Antithrombotic Therapy to Prevent Stroke in Patients Who Have Nonvalvular Atrial Fibrillation. Ann Intern Med 2007;146:857-867. Sources Graphic p.80: 1. What is Atrial Fibrillation? National Heart Blood and Lung Institute Diseases and Conditions Index, October 2009. Last viewed July 2010 at http://www.nhlbi. nih.gov/health/dci/Diseases/af/af_what.html. 2. Atrial Fibrillation Factsheet, Patient UK, March 2008. Last viewed July 2010 at http://www.patient.co.uk/health/Atrial-Fibrillation. htm 3. Atlas of Heart Disease and Stroke, World Health Organization, September 2004. Last viewed June 2010 at http://www.who.int/cardiovascular_diseases/en/cvd_atlas_15_burden_stroke.pdf Treatment of thrombo-embolic diseases 83 research and development Be best. Be best. The investigational compound linagliptin is a dipeptidyl peptidase 4 (DPP 4) inhibitor in late stage development for the treatment of type 2 diabetes with a unique pharmacokinetic profile [ diabetes ] “I am proud of having followed linagliptin from the project idea to its current status. Linagliptin, as you can imagine, is therefore close to my heart. This compound will help to reduce the consequences of diabetes, which is a real health burden for the patient, but also for humankind, given the exploding numbers of patients worldwide.” dr michael mark, global head of cardiometabolic diseases research, biberach, germany 285m People are suffering from type 2 diabetes worldwide. 84 Boehringer Ingelheim annual report 2010 Proportion of population with diabetes 2010 Type 2 diabetes is a pandemic of the modern era affecting approximately 285 million people worldwide. Over the next 20 years, the number of type 2 diabetes patients is expected to increase by 50 percent to 438 million. 2030 >4 % 4-5 % 5-7 % 7-9 % 9-12 % Diabetes cose levels such as heart disease, stroke, renal There are approximately 285 million people with impairment and nerve damage. diabetes in the adult population worldwide. The International Diabetes Federation estimates that In most instances, type 2 diabetes is a dual-defect the number of people with diabetes will increase disease characterised by insulin resistance and by 50 percent to 438 million people worldwide impaired ß-cell function. Type 2 diabetes results by 2030. from an imbalance between insulin sensitivity 12 % 40 % of type 2 diabetes patients already present with some form of tissue damage at diagnosis. and insulin secretion. Glucose production fails to Nearly four million people within the 20-79 age be regulated adequately by insulin, leading to he- group are predicted to die from diabetes and its patic glucose overproduction and diminished complications in 2010. Approximately 50% of glucose uptake by muscle tissue. people with diabetes die of cardiovascular disease and more than 8% die of renal causes. Over time, the impaired glucose metabolism leads to a loss of ß-cells and the remaining ß- Type 2 diabetes cells eventually fail to maintain their high rate of Type 2 diabetes is a chronic progressive disease insulin secretion, leading to glucose intolerance, and the most common form of diabetes, respon- insulin resistance, and overt type 2 diabetes. In sible for 90 to 95 percent of diabetes cases. addition, accelerated gastric emptying and excessive lipolysis in adipose tissue also contribute to At diagnosis, approximately 40% of type 2 diabe- the development of type 2 diabetes. High blood tes patients already present with some form of glucose levels can lead to disease-related long- tissue damage resulting from elevated blood glu- term complications. Read more about linagliptin: page 88 Be best. 85 research and development Be best. Obesity as a risk factor for type 2 diabetes Renal impairment and hypertension Obesity is a major risk factor for developing type There is a proven link between renal impairment 2 diabetes and is estimated to be responsible for and increased risk of cardiovascular disease. The 80% of all newly diagnosed cases. Obesity can relationship between high blood pressure and cause increased insulin resistance that, in people renal impairment is complex and interrelated: with a certain genetic susceptibility, may develop renal impairment can cause high blood pressure into diabetes. and, in turn, high blood pressure is a risk factor for developing renal impairment. Renal impairment in type 2 diabetes In diabetes, high levels of blood glucose can High blood pressure is very common in people damage the kidneys’ filters. This leaves people with type 2 diabetes at diagnosis. All people with with type 2 diabetes at risk of developing renal type 2 diabetes are at a greater risk of cardiovas- impairment. When the kidneys are damaged, the cular disease, but the risk is up to three times protein albumin leaks out of the kidneys into the higher for those patients with renal impairment. urine. This is one of the first signs of early stage renal disease. Treatment implications As kidney disease progresses, diabetes treatment +50 % Diabetic nephropathy, a complication of diabe- choices become more and more limited. Many tes, is a chronic and progressive disease of the current type 2 diabetes treatments are either con- Over the next 20 years the number of type 2 diabetes patients is expected to increase by 50% to 438 million. kidneys which occurs in about one third of all tra-indicated in type 2 diabetes patients with re- people with diabetes. Diabetic nephropathy is as- nal impairment or not recommended in this pa- sociated with an increased risk of other diabetic tient population. complications including a greater risk of cardiovascular disease and is associated with a lower Linagliptin - DPP-4 inhibitor than average life expectancy. The compound linagliptin, a DPP-4 inhibitor in late stage development for the treatment of type Symptoms of diabetic nephropathy are often 2 diabetes, has a primarily non-renal route of ex- non-existent in the early stages of chronic kidney cretion. Data to date suggest that for linagliptin disease which means people may be unaware no dose adjustment would be required, regardless they have the condition until a later stage in the of the degree of renal impairment. disease. Sources Diabetes: 1. International Diabetes Federation. Available at: www.idf.org. Last accessed: April 2010. 2. World Health Organization. Available at: www.who.int. Last accessed: April 2010. 3. Goldstein B. Understanding Type 2 Diabetes. Medscape Diabetes & Endocrinology, 2006. Last accessed: April 2010. 4. Copeland C. et al. Type 2 Diabetes in Children and Adolescents: Risk Factors, Diagnosis, and Treatment. Clinical Diabetes 2005; 23:4: 181-185. 5. Kaul S, et al. Thiazolidinedione Drugs and Cardiovascular Risks - A Science Advisory From the American Heart Association and American College of Cardiology Foundation. Circulation. February 2010. 6. International Diabetes Federation, International Society of Nephrology. Diabetes and Kidney Disease. Time to Act. 2003. 7. American Diabetes Association. Available at: www.diabetes.org. Last accessed: April 2010. 8. Jeerakathil T, Johnson JA, Simpson SH, Majumdar SR. Short-term risk for stroke is doubled in persons with newly treated type 2 diabetes compared with persons without diabetes. Stroke. 2007; 38(6):1739-43. 9. World Heart Foundation. Cardiovascular Risk Factors – Diabetes. www.worldheart.org/cardiovascular-health/cardiovascular-disease-risk-factors/diabetes/. Accessed June 2010. 10. Hovind P, Rossing P, Tarnow L, Smidt UM, Parving HH. Progression of diabetic nephropathy. Kidney Int. 2001; 59(2):702-9. 11. Fong DS, Aiello LP, Ferris FL 3rd, Klein R. Diabetic retinopathy. Diabetes Care. 2004; 27(10):2540-53. 12. Dang CN, Boulton AJ. Changing perspectives in diabetic foot ulcer management. Int J Low Extrem Wounds. 2003; 2(1):4-12. 13. Brown JB, et al. The Burden of Treatment Failure in Type 2 diabetes. Diabetes Care. 2004: 27: 7;1535-1540. 14. Pratley R and Salsali A. Inhibition of DPP-4: a new therapeutic approach for the treatment of type 2 diabetes. Current Medical Research and Opinion. 2007; 23: 4: 919–931. 86 Boehringer Ingelheim annual report 2010 Major diabetes complications: Microvascular damage to the retina from diabetes (diabetic retinopathy) The risk of stroke in newly treated type 2 diabetes is more than doubled Risk factors that contribute to type 2 diabetes include: People with diabetes are two to four times more likely to have cardiovascular disease Picture: © Brian Evans / Photo Researchers / Agentur Focus • Family history • Obesity, diet and inactivity • Ethnicity • Insulin resistance • Gestational diabetes Damage to the kidney filtering systems from diabetes (diabetic nephropathy) High levels of blood glucose can damage the kidneys’ filters. This leaves people with type 2 diabetes at risk of developing renal impairment. 3.8m Each year, 3.8 million deaths are linked directly to diabetesrelated causes. Characteristic symptoms of type 2 diabetes: • Excessive thirst • Constant hunger • Irritability • Extreme fatigue • Breathing difficulties • Blurred vision • Weight loss Damage to the nerves from diabetes (diabetic neuropathy) is a leading cause of foot wounds and ulcers Be best. 87 research and development Be best. Our research and development in diabetes Metabolism is one of Boehringer Ingelheim’s core R&D areas and diabetes one of the indications at the centre of interest within the company’s global research network Picture upper right: exocrine and endocrine pancreas tissue (Picture by Lennart Nilsson) Boehringer Ingelheim is committed to Boehringer Ingelheim diabetes portfolio. researching and developing new dia- Linagliptin is being investigated as an betes compounds with novel modes of oral once-daily tablet for the treat- action to improve patients’ health and ment of type 2 diabetes, as mono- increase overall quality of life. These therapy and as combination therapy. include: Linagliptin has a primarily non-renal route of excretion (only approx. 5 % DPP-4 inhibitor linagliptin SGLT-2 inhibitor excreted via the kidneys). Data from The compound BI 10773, a sodium- late-stage clinical trials added to the dependent glucose transporter-2 large body of clinical evidence demon- (SGLT-2) inhibitor, blocks renal glu- strating that linagliptin cannot only cose absorption in the kidneys, there- achieve significant and sustainable re- by improving glycaemic control. The ductions in blood glucose, but that inhibition of SGLT-2 has been seen to based on its unique pharmacokinetic have a positive effect on body weight profile, linagliptin may not require loss and reduction in blood pressure dose adjustment even in patients with The phase II clinical trials with the type 2 diabetes, with any degree of re- compound have been concluded. nal impairment. 11β-HSD1 inhibitor DPP-4 inhibitors: a novel class of treat- Inhibition of 11ß-HSD1 offers a novel ment in type 2 diabetes potential therapy for the management DPP-4 inhibitors represent an innova- of diabetes by lowering intracellular tive approach to type 2 diabetes treat- cortisol concentrations resulting in im- ment with a unique mechanism of ac- proved insulin sensitivity, blood lipid tion compared to other classes in this levels and vascular function. The 11ß- therapeutic area. HSD1 inhibitor compound currently being studied by Boehringer Ingelheim The inhibition of DPP-4 is beneficial is in early stage of clinical development. for type 2 diabetes patients to control blood glucose levels, a primary goal of 88 DPP-4 inhibitor type 2 diabetes management. A dose- The DPP-4 inhibitor linagliptin is the finding period (up-titration period) at most advanced compound in the the beginning of therapy is not needed Boehringer Ingelheim annual report 2010 when treating with a DPP-4 inhibitor. This is because of their rapid mode of • Linagliptin as monotherapy (exercise and diet alone), • Linagliptin as an add-on to met- action and the fact that their favourable tolerability profile does not cause formin, • Linagliptin as an add-on to met- nausea and vomiting, in addition to formin plus a sulfonylurea, having a low risk of drug-drug interactions. This makes them appropriate • Linagliptin in combination with pioglitazone. as monotherapy or in combination with other commonly used anti-diabe- Linagliptin phase III data showed that tes drugs. this investigational compound Linagliptin pivotal trials achieved significant, sustained and Four multi-center, randomised, place- clinically meaningful reductions in bo-controlled, double-blind phase III blood glucose as measured by haemo- studies were conducted to investigate globin A1c (HbA1c), fasting plasma the efficacy, safety, and tolerability of glucose, and postprandial glucose con- linagliptin (5 mg once daily) versus centrations. Furthermore, these phase placebo, administered over 24 weeks III studies exhibited an outstanding in type 2 diabetes mellitus patients safety and compatibility profile. with insufficient glycaemic control. The overall HbA1c range for these In 2010 too, applications for market ap- studies was ≥ 7.0% and ≤ 11%, with proval of linagliptin were submitted to the following background therapy: a number of authorities worldwide. The mechanism of action of DPP-4 inhibitors Mixed meal Intestinal GLP-1 release • Glucose-dependent insulin secretion • Glucagon suppression By binding to the DPP-4 enzyme, the breakdown of the two incretin hormones, glucagon-like peptide (GLP)-1 and glucose-dependent insulinotropic peptide (GIP) is inhibited. GLP-1 and GIP are naturally occurring hormones, which are released by the gut after meals and target the pancreas by increasing glucose-dependent insulin secretion and suppressing glucagon secretion. DPP-4 inhibitors increase the GLP-1 plasma concentrations within the physiological range. GLP-1 (7-36) active DPP-4 Exogenous analogs of GLP-1 DPP-4 inhibitor GLP-1 (9-36) inactive Metabolism and diabetes 89 research and development Be focused. Be focused. Boehringer Ingelheim has a long-term commitment to deliver tomorrow’s cancer therapies by discovering and developing novel treatment options, both new chemical entities (NCEs) and new biological entities (NBEs), that combine groundbreaking science with high therapeutic value for patients [ cancer therapies ] “Understanding the molecular biology and pathogenesis of non-small cell lung cancer (NSCLC) has given rise to the identification of targeted therapies. Two processes have been identified as major contributors to the pathology of NSCLC – tumour cell signal transduction and the initiation of tumour angiogenesis.” dr matthias mueser, deputy therapeutic area head oncology, global clinical development/medical affairs, ingelheim, germany 26.4m By the year 2030, the cancer burden is set to more than double: there will be 26.4 million cancer cases, 17 million deaths and 75 million people living with the disease. Cancer Cancer is a major global public health problem and despite considerable advances in disease awareness, diagnosis, and treatment, it remains an area of significant unmet medical need. Cancer - the facts One out of every two men, and one out of every three women, will have some type of cancer at some point during their lifetime. 90 Boehringer Ingelheim annual report 2010 Cancer is one of the leading causes of death in the world and represents a tremendous burden Lung cancer on patients, families and societies. In 2008, there were 12.4 million new cases of cancer diagnosed 1,6 million 1,38 million and 7.6 million deaths from the disease. The most NEW LUNG CANCER CASES ANNUALLY common cancers in terms of incidence were lung (1.61 million), breast (1.29 million) and colorectal (1.15 million). Based on projections, cancer LUNG CANCER DEATHS ANNUALLY deaths will continue to rise. By the year 2030, the burden is set to more than double: there will be 0 1.5 MILLION 26.4 million cancer cases, 17 million deaths and 75 million people living with the disease. 7% Lung cancer of lung cancer patients in Europe Lung cancer is the most common and most dead- alive 5 years after diagnosis ly form of cancer in the world. It accounts for 1.61 million new cancer cases annually and, beTODAY cause of its poor prognosis, 1.38 million deaths +1 YEAR +2 YEARS +3 YEARS +4 YEARS +5 YEARS each year are attributable to lung cancer. More than two-thirds of lung cancers are diagnosed at a late stage and only 7% of lung cancer patients survive for at least five years after diagnosis. All other new cancers All other cancers Overall lung cancer is the cause of nearly 20% of all cancer deaths. 13% of all new cases of cancer are lung cancers and smoking is attributed as the main cause in 90% of these cases. 13% LUNG CANCER 13% of all new cancers are lung cancers 90% LUNG CANCER 90% of all lung cancer smoking as cause 20% LUNG CANCER Lung cancer is in 20% cause of all cancer deaths Lung cancer – high unmet medical need Lung cancer remains an area of high unmet need, especially in its advanced stages where it is particularly aggressive and patients have limited treat- Targeted cancer therapies for lung cancer ment options. In general, there are three types of New treatments may become available that are treatment used in the management of lung cancer targeted and selective to specific molecular that can be used separately or in combination. markers or structures on tumour cells. Two processes have been identified as major contributors These are surgery, radiotherapy, and chemother- to the pathology of NSCLC – tumour cell signal apy. However, small-cell lung cancer (SCLC) and transduction and the initiation of tumour angio- non-small cell lung cancer (NSCLC) behave and genesis. respond to treatment quite differently. To determine the most appropriate treatment, cancers are Understanding the molecular biology and patho- staged to determine the severity of a patient’s genesis of NSCLC has given rise to the identifica- disease. tion of targeted therapies. The epidermal growth Be focused. 91 research and development Be focused. Lung cancer Lung cancer remains an area of high unmet need. Especially, there is a high unmet medical need in advanced stages of lung cancer, where the tumour is particularly aggressive and patients have limited treatment options. In general, there are three types of treatment used in the management of lung cancer that can be used separately or in combination. These are surgery, radiotherapy, and chemotherapy. [ diagnosis ] Computertomography of lung cancer [ treatment option ] Surgical resection Picture: © Medical Body Scans / Photo Researchers / Agentur Focus [ treatment option ] Radiotherapy [ treatment option ] Chemotherapy Picture: © picture-alliance/ Ronald Wittek factor receptor (EGFR) family is a group of recep- Given as monotherapy in combination with tors implicated in the development of NSCLC. classical chemotherapy, these new agents may also provide a higher efficacy that is urgently needed By focusing on molecular and cellular changes in this patient population. These targeted therapies that are specific to the cancer, these targeted can- offer personalised treatment depending on a cer therapies may be more effective than current patient’s genetic make-up. treatments and less harmful to normal cells, thereby reducing unwanted treatment side effects. [ cancer therapies ] “I’m now able to bring to Boehringer Ingelheim the experiences I gathered as a senior physician treating cancer patients. The special fascination for me in working in Global Medical Affairs is being able to contribute to the further development of new cancer treatments to extend life with a improved quality of life, thereby serving a greater patient population.” dr claudia-nanette gann, senior global medical advisor medical affairs, ingelheim, germany 92 Boehringer Ingelheim annual report 2010 Ovarian cancer Breast cancer 204,000 1.5 million NEW OVARIAN CANCER CASES ANNUALLY NEW BREAST CANCER CASES ANNUALLY 125,000 500,000 OVARIAN CANCER DEATHS ANNUALLY BREAST CANCER DEATHS ANNUALLY 0 0 210.000 1.5 MILLION Breast cancer is the most common cancer among women worldwide 40% alive 5 years after diagnosis alive 5 years after diagnosis +4 YEARS tom ymp PTO al s stin ms inte ar y Urin ss t lo Wei gh ue Fati g sym pto trogas and Pain +5 YEARS TODAY abn orm al v agin al b om leed ina ing l or bac k pa in Lac k of ene rgy +3 YEARS +1 YEAR +2 YEARS +3 YEARS +4 YEARS +5 YEARS Probability of developing breast cancer within the next 10 years BY AGE 20 BY AGE 30 BY AGE 40 BY AGE 50 Abd +2 YEARS s MS +1 YEAR SYM g CER ellin CAN l sw AN ina om Abd OVA RI of breast cancer patients in Europe Occ asio nall y TODAY 90% of ovarian cancer patients in Europe 1 OUT OF 1,985 229 1 OUT OF 1 OUT OF 68 37 1 OUT OF Ovarian cancer Breast cancer Ovarian cancer is ranked as the sixth most com- Breast cancer is the leading cause of cancer mon cancer in women worldwide, with an esti- deaths in women globally, resulting in more mated 125,000 dying of the disease each year. The than 411,000 deaths each year. HER2-positive highest incidences of ovarian cancer are found in breast cancer is a particularly aggressive form of the USA and Northern Europe and lowest in Af- the disease and is associated with a greater risk rica and Asia. of disease progression and death compared to BY AGE 60 BY AGE 70 1 OUT OF 26 24 1 OUT OF women with HER2-negative tumours. It is The risk of ovarian cancer increases with age, as thought that in approximately 30% of advanced more than four out of five cases are diagnosed in breast cancer cases, women over-express the women over 50 years of age. HER2 protein. Be focused. 93 research and development Be focused. Our research and development in oncology Boehringer Ingelheim is committed to the clinical development of pioneering treatments for cancer, with the aim of developing treatments, which will make a difference to the lives of patients and their families. Picture: Lung cancer (by Lennart Nilsson) Focus of research in oncology plays a critical role in tumour growth Boehringer Ingelheim is conducting a and metastasis. Boehringer Ingelheim broad clinical programmes (LUME is developing new treatments that tar- and LUX) involving various pipeline get and inhibit these key biological products in several cancer indications. pathways involved in stimulating ang- The current focus of research includes iogenesis, thereby preventing growth compounds in three areas: and spread of the tumour. Ω Angiogenesis inhibition, Ω Signal transduction inhibition and BIBF 1120 – triple angiokinase inhibitor Ω Cell-cycle kinase inhibition. BIBF 1120 (planned trade name vargatef™) is a novel triple angiokinase Angiogenesis inhibition inhibitor that acts on three endothelial Angiogenesis, the formation of new growth factors simultaneously: vascular vessels for the blood supply of tissue, endothelial growth factor receptor BIBF 1120 is a triple angiokinase inhibitor that blocks three growth factor receptors simultaneously: vascular endothelial growth factor receptors (VEGFR 1-3), platelet factor receptors (PDGFR alpha and beta) and fibroblast growth factor receptors (FGFR 1-3). [ bibf 1120 ] • Small molecule, oral • Targets FGFR, PDGFR, VEGFR Angiogenesis inhibition 94 phase patient population III Non-small cell lung cancer III Ovarian cancer II Ovarian cancer II Hormone-refractory prostate cancer II Hepatocellular carcinoma II Renal cell carcinoma II Colorectal carcinoma I Solid Tumours Boehringer Ingelheim annual report 2010 fgfr pdgfr vegfr bibf 1120: Triple Angiokinase Inhibitor EGF ligands [ afatinib - bibw 2992 ] Heregulins • Small molecule, oral • Targets EGFR, HER2 Signal transduction inhibition phase patient population III Non-small cell lung cancer III Breast cancer IIb/III Non-small cell lung cancer II Non-small cell lung cancer II Hormone-refractory prostate cancer II Glioblastoma II Squamous-cell head and neck cancer II Breast cancer I Solid tumours egfr / her3 egfr / her4 egfr / egfr egfr / her2 her2 / her2 her2 / her3 her2 / her4 Afatinib is a next generation tyrosine kinase inhibitor, which is an irreversible inhibitor of the epidermal growth factor receptor (EGFR) and the human epidermal growth factor receptor 2 (HER2) kinases. Both receptors are involved in cell proliferation, differentiation and apoptosis (programmed cell death) and their inhibition may play a critical role in the prevention of tumour growth and spread. (VEGFR), platelet-derived growth fac- Afatinib - BIBW 2992 tor receptor (PDGFR) and fibroblast Afatinib (planned tradename Tomto- growth factor receptor (FGFR) – all cru- vok®) is an oral compound (taken as a cially involved in the formation of tablet), a next generation inhibitor of blood vessels. As angiogenesis plays a the epidermal growth factor receptor pivotal role in the growth of all solid (EGFR) and human epidermal recep- tumours, BIBF 1120 is being investigat- tor 2 (HER2) tyrosine kinase (TK) and, ed in a number of other solid tumours unlike first generation TK inhibitors, including advanced non-small cell lung irreversibly binds to EFGR/HER2 and cancer (NSCLC), ovarian cancer, color- irreversibly inhibits both, the epider- ectal, hepatocellular, and renal cancer. mal growth factor receptor (EGFR/ HER1) and the human epidermal re- Signal-transduction inhibition ceptor HER2, which are involved in Cell proliferation, differentiation and tumour growth and spread. The com- programmed cell death (apoptosis) are pound is under development in several tightly regulated in healthy tissues by a solid tumour types. variety of external signals working via receptors that activate intracellular sig- Afatinib is currently in phase III clini- nal-transduction pathways. Cancer cells cal development in NSCLC. acquire genetic mutations that alter these signal-transduction pathways, resulting In 2010, Boehringer Ingelheim also in malignant cells that proliferate uncon- initiated a phase III clinical trial to in- trollably and do not respond to the sig- vestigate afatinib for the treatment of nals that normally activate apoptosis. patients with advanced (metastatic) Oncology 95 research and development Be focused. breast cancer. Furthermore, BIBW Volasertib - BI 6727 2992 is being investigated for various Volasertib represents the latest step in additional cancer indications, includ- Boehringer Ingelheim’s programme to ing head and neck cancer and colorec- develop the most effective, potential tal cancer. first-in-class specific Plk1 inhibitor. Volasertib specifically inhibits Plk1, Cell-cycle kinase inhibition a key regulator in the process of cell The cell cycle describes the series of division. It may be associated with dis- events between one cell division (mi- ruption of the mitotic spindle check- tosis) and the next. It is the process by point activation, and prolonged mitot- which a single cell forms identical sets ic arrest (polo arrest), which then of daughter cells. Disruption of this leads to cell death. Due to much high- process is a fundamental feature of er levels of Plk1 in tumour cells com- cancer. pared to healthy tissues, BI 6727 preferentially targets the dividing cancer Apoptosis of a tumour cell. [ volasertib - bi 6727 ] • Small molecule, intraveneous/oral • Targets Plk1 cells. Plk-1 Inhibition In the area of cell-cycle kinase inhibition, Boehringer Ingelheim is develop- Based on the encouraging efficacy and ing inhibitors of polo-like kinase 1 safety results from a phase I study, vo- (Plk-1), a protein that is involved in lasertib is being advanced further in the processes of cell division. These clinical development. The phase II pro- molecules are in the earlier stages of gramme assesses the efficacy and safety clinical development. of volasertib in several tumour types. Volasertib specifically inhibits Plk1, a key regulator in the process of cell division. It may be associated with disruption of the mitotic spindle checkpoint activation and prolonged mitotic arrest (polo arrest), which then leads to cell death. Cell-cycle kinase inhibition Metaphase Prometaphase Anaphase Prophase phase patient population II Ovarian cancer II Urothelial cancer II Non-small cell lung cancer I/IIa Acute myeloid leukaemia I Solid tumours PLK1 Interphase Cytokinesis 96 Boehringer Ingelheim annual report 2010 Telophase The LUX trial programme The LUX clinical trial programme in- The LUX trial programme vestigates afatinib in a number of dif- Overview of ongoing clinical trials ferent cancer patient populations. BIBW 2992 Clinical phase Medication in the treatment and control arm Cancer type LUX Lung 3 III Afatinib vs Cisplatin/pemetrexed Potential first-line NSCLC with EGFR mutation LUX Lung 6 III Afatinib vs Cisplatin/gemcitabine Potential first-line NSCLC with EGFR mutation LUX Lung 5 III After afatinib: Afatinib + combination chemotherapy NSCLC progressing after chemotherapy and erlotinib or gefitinib LUX Breast 1 III Afatinib + vinorelbine vs Trastuzumab + vinorelbine Metastatic HER2positive breast cancer LUX Lung 1 trial programme LUX Lung 1 is a clinical phase IIb/III randomised, double-blind study evaluating afatinib plus best supportive care (BSC) versus placebo plus BSC in patients with advanced NSCLC. Patients’ disease has progressed after prior chemotherapy and first generation epidermal growth factor receptor (EGFR) tyrosine kinase inhibitor gefitinib or erlotinib treatment. Due to the study inclusion criteria, a high proportion of patients that may have mutated EGF receptors in their tumours were included. LUX Lung 1 trial results Afatinib has been shown to prolong The LUX Lung 1 trial results (2010) progression free survival from 1.1 to 3.3 months, even though the primary Independent review endpoint has not been met. The pro- Afatinib Controlled gression-free survival in this trial was Partial response regardless of confirmation 13 % 0.5 % confirmed by independent review. Partial response confirmed 7% 0.5 % These results are supported by a sig- Stable disease 51 % 18 % nificant increase in disease control Disease control rate 58 % 19 % rate (the share of patients with stabilised tumours or tumour shrinkage) and objective response rate (share of patients with tumour shrinkage or absence of tumour) compared to placebo. Progression-free survival is a measure of the clinical benefit from a specific therapy. LUX Lung 2 trial LUX Lung 2 is a multicenter phase II, open-label, single arm trial of afatinib; in patients with advanced lung cancer Our R&D activities in oncology 97 research and development Be focused. who were untreated or progressed after one course of chemotherapy. Patients The LUX Lung 2 trial results (2010) were tested for activating EGFR muta- Remarkable progression-free survival rates were reported for patients with the activating EGFR mutations that were treated with afatinib: tions prior to the trial. All patients N = 120 The LUX Lung 2 trial results There were remarkable progressionfree survival of 14 months and a sur- Overall response rate 61 % vival of two years for patients with Disease control rate 86 % EGFR mutations who were treated Median progression free survival 14 months with afatinib. In addition, the data Median overall survival 24 months from the LUX Lung 2 trial showed that, the majority of patients (61%) have significant tumour shrinkage (measured as partial response) when The LUME trial programme treated with afatinib as assessed by in- Overview of ongoing clinical trials dependent review. BIBF 1120 Clinical phase Medication in the treatment and control arm Cancer type Lume Lung 1 III BIBF 1120 + doxetaxel vs doxetaxel Stage III/IV or recurrent NSCLC LUME Lung 2 III BIBF 1120 + pemetrexed vs pemetrexed Stage III/IV or recurrent NSCLC Lume Ovar 1 III BIBF 1120 + carboplatin vs carboplatin/paclitaxel Advanced ovarian cancer The LUX Breast 1 trial is an open-label randomised phase III trial to investigate the efficacy and safety of afatinib plus vinorelbine compared to trastuzumab plus vinorelbine in patients with metastatic HER-2 positive breast cancer who received prior treatment with trastuzumab. The LUME Lung trial programme is investigating BIBF 1120 in combination with standard second-line chemotherapy treatments for patients with advanced NSCLC. The LUME Ovar 1 trial LUME Ovar 1 is a multicentre, randomized, double-blind Phase III trial to investigate the efficacy and safety of BIBF 1120 in combination with carboplatin and paclitaxel compared with placebo plus carboplatin and paclitaxel in patients with advanced ovarian cancer. 98 Sources Cancer p. 91: 1. Grey N. et al. 2006. Reducing the global cancer burden. Hospital Management 2006. [Online] Available at: http://www.hospitalmanagement.net/features/feature648 [Last Accessed April 2009] 2. American Cancer Society 2009. Who gets cancer? [Online] Available at: http://www.cancer.org/docroot/CRI/content/CRI_2_4_1x_Who_ gets_cancer.asp?sitearea [Last Accessed February 2009] 3. The World Health Organization 2005. Strategies that prevent, cure and care. The World Health Organization’s Fight Against Cancer. [Online] Available at: http://www.who.int/cancer/ publicat/WHOCancerBrochure2007.FINALweb.pdf [Last Accessed February 2008] 4. Boyle P. et al. World Cancer Report 2008. International Agency for Research on Cancer. 5. Stewart B.W. and Kleihues P. World Cancer Report. International Agency for Research on Cancer 2003. Sources Lung Cancer p. 91: 1. The World Health Organisation. Global cancer rates could increase by 50% to 15 million by 2020. Last accessed March 2010 (http://www.who.int/mediacentre/news/releases/2003/pr27/en/ ). 2. Cancer Research UK. CancerStats - Key Facts on Lung Cancer and Smoking. [Online] Available at: http://info.cancerresearchuk.org/ cancerstats/types/lung/. [Last accessed 30 September 2010]. 3. Allen J et al. J Natl Compr Canc Netw 2008; 6 (3): 28593. 4. Ferlay, J., Parkin, D.M., Steliarova-Foucher, E., Estimates of cancer incidence and mortality in Europe in 2008. European Journal of Cancer 46 (2010) 765-781. Sources Ovarian Cancer p. 93: 1. P Boyle and B Levin (eds). “World Cancer Report 2008.”, World Health Organization: International Agency for Research on Cancer. Lyon: 2008 2. American Cancer Society. “Ovarian Cancer Detailed Guide.” Atlanta: 2008. Available at: http://documents.cancer.org/114.00/114.00.pdf. Accessed on 5 May 2009. Sources Breast Cancer p. 93: 1. Garcia M et al. Global Cancer Facts & Figures. Atlanta, GA: American Cancer Society, 2007. 2. WHO Cancer Factsheet N°297 – updated February 2009. [Online] Available at: http://www.who.int/mediacentre/factsheets/fs297/en/index.html [Last accessed 7 July 2010] 3. US National Cancer Institute. Cancer Advances in Focus [Online] Available at: http://www.cancer.gov/cancertopics/cancer-advances-in-focus/breast [Last accessed 7 July 2010] 4. American Cancer Society Breast Cancer Facts & Figures, 2005-2006 [Online] Available at: http://www.cancer. org/acs/groups/content/@nho/documents/document/caff2005brfacspdf2005pdf.pdf [Last accessed 8 July 2010] 5. WHO. Breast Cancer Burden [Online] Available at: http://www.who.int/cancer/detection/breastcancer/en/index1.html [Last accessed 8 July 2010] 6. Penault-Llorca F et al. 2005 ‘Incidence and implications of HER2 and hormonal receptor overexpression in newly diagnosed metastatic breast cancer (MBC)’, Journal of Clinical Oncology, vol. 23, S69. © 2010 Boehringer Ingelheim GmbH. All rights reserved. Boehringer Ingelheim annual report 2010 Our research and development in idiopathic pulmonary fibrosis Idiopathic pulmonary fibrosis (IPF) is a progressive and severely debilitating lung disease, for which there are no approved treatments and there is an unmet clinical need for effective licensed medications. Idiopathic pulmonary fibrosis from these receptors, it is hypothe- IPF is characterised by fibrosis (stiff- sised that BIBF 1120 inhibits one of ening) of the tissue between the alveo- the pathogenic processes in IPF. Alveoli of the lung. (Picture by Lennart Nilsson) li in the lungs, which causes coughing and breathing difficulties and limits Tomorrow study physical activity. Unpredictable acute The TOMORROW (to improve pulmo- exacerbations of the disease occur in nary fibrosis with BIBF 1120) study some patients and may be fatal. The was a 12-month, randomised, double- mean age at diagnosis is 66 years. blind, placebo-controlled trial designed to evaluate the effect of oral IPF has a survival rate similar to many BIBF 1120 on decline in forced vital cancers, with a mean survival time capacity in patients diagnosed with following diagnosis of 3 to 5 years. At IPF. 3-5 years The mean survival time following diagnosis of IPF is 3 to 5 years. present, there are no licensed pharmacological treatments for IPF in the Results from the phase II TOMOR- USA or Europe. ROW study showed that 12 months of treatment with BIBF 1120 resulted in BIBF 1120 – triple kinase inhibitor a clinically important reduction in the Boehringer Ingelheim’s investigation- rate of decline in lung function in pa- al compound BIBF 1120, a triple ki- tients with IPF. nase inhibitor, may provide significant clinical benefit in patients with IPF. These results were evaluated to be very encouraging. Using an innovative Apart from IPF, Boehringer Ingelheim approach to treating IPF, an effect has is investigating BIBF 1120 also in been shown on clinically relevant phase III clinical studies for the treat- study endpoints. Taken together, these ment of cancer patients in different data provided a solid and promising cancer types (see oncology). platform for the development of a phase III programme. Receptors blocked by BIBF 1120 have been shown to be involved in fibrosis of the lungs. By blocking the signalling pathways that lie downstream Idiopathic pulmonary fibrosis 99 research and development Be focused. Our research and development in hepatitis C New anti-viral therapies with novel mechanisms of action are muchneeded advancements in the treatment of hepatitis C virus (HCV) infections. HCV research at Boehringer Ingelheim is directed toward identifying inhibitors targeting essential viral enzymes, such as the HCV serine protease and RNA polymerase. Picture: Hepatitis C viruses © AMI IMAGES / SPL / Agentur Focus Hepatitis C ment landscape and potentially im- Hepatitis C is an infectious disease prove cure rates for a wider patient of the liver and is a leading cause of base. In addition, with any antiviral chronic liver disease and liver trans- therapy, viral resistance is a potential plant. The number of individuals issue. chronically infected with hepatitis C virus (HCV) globally has been estimat- New antiviral therapies with novel ed at 170 million, with 3–4 million mechanisms of action are much-needed new infections occurring each year. advancements in the treatment of hep- 170m Only about 20–45 % of patients clear atitis C. The number of individuals chronically infected with HCV globally has been estimated at 170 million. maining chronically infected patients, Our hepatitis C portfolio 20 % will develop cirrhosis within a Hepatitis C research at Boehringer In- mean of 20 years. The mortality rate gelheim is directed toward identifying after cirrhosis has developed is 2-5 % inhibitors targeting essential viral en- per year. End-stage liver disease due to zymes, such as the HCV serine pro- HCV infection currently represents the tease and RNA polymerase. the virus in the acute phase. Of the re- major indication for liver transplantation in the western world. Such novel mechanisms offer the potential for new therapies with im- Treatment of hepatitis C proved tolerability compared to cur- Therapeutic options for hepatitis C are rent treatments of chronic hepatitis C. currently limited. The standard of These approaches may lead to the de- care, pegylated interferon and ribavi- velopment of novel classes of antivi- rin, is often challenging for patients rals for the treatment of chronic hepa- due to significant treatment duration titis C. of typically 48 weeks and with side ef- 100 fects that impact treatment adherence The two lead investigational com- and low response rates. A successful pounds in the Boehringer Ingelheim interferon-saving regimen could sig- hepatitis portfolio are BI 201335 and nificantly change the hepatitis C treat- BI 207127. Boehringer Ingelheim annual report 2010 Oral HCV NS3/4A protease inhibitor PegIFN sparing combination therapy BI 201335 is an investigational oral Boehringer Ingelheim has conducted a HCV NS3/4A protease inhibitor, dis- phase Ib study, SOUND-C, that covered from Boehringer Ingelheim’s showed that the combination of two own research and development, which oral hepatitis C compounds, the pro- has completed clinical trials through tease inhibitor BI 201335 and the phase IIb (SILEN-C) studies. polymerase inhibitor BI 207127, with ribavirin reduced viral load to the NS5B RNA-dependent polymerase lower limit of quantifiable levels in inhibitor HCV treatment-naïve patients. The BI 207127 is a polymerase inhibitor regimen did not include interferon that has completed phase I clinical tri- through the first 28 days of treatment. als. HCV NS5B is believed to be the central enzyme responsible for HCV Planning is currently underway to replication. BI 207127 works by begin phase II trials of BI 207127 with blocking a specific step in the viral li- BI 201335 in interferon-saving regimens fecycle, targeting the polymerase en- both with and without ribavirin. zyme and consequently preventing HCV from replicating. “Early data of the Sound-C study suggest that there is the potential for the combination of oral anti-hepatitis C virus therapies to reduce the viral load in a more tolerable, interferon-sparing regimen. The current standard of care, is challenging for hepatitis C patients due to side effects that impact treatment adherence and has suboptimal response rates, An interferon-saving regimen could provide an important treatment option for patients with chronic hepatitis C.” professor stefan zeuzem, department of medicine at the johann wolfgang goethe university hospital, frankfurt, germany Our R&D activities in hepatitis C 101 our businesses Our drive for innovation: Boehringer Ingelheim is a company committed to the goal of serving humankind. Innovative medicines are the basis of our success as an independent, family-owned company. Our businesses are Human Pharmaceuticals and Animal Health. Boehringer Ingelheim’s total net sales amounted to EUR 12,586 million in 2010, close to the level of the previous year. Prescription Medicines, which represents Boehringer Ingelheim’s most important business area, achieved net sales of EUR 9,702 million, corresponding to 77% of the company’s overall net sales. 12,586m 9,702m 102 Boehringer Ingelheim annual report 2010 BIZ Our Businesses Be committed. Be reliable. Be successful. 104 Human Pharmaceuticals 106 Prescription Medicines 108 Consumer Health Care 118 Biopharmaceuticals 126 Operations 136 Animal Health 152 Our Consumer Health Care business in over-the-counter medications recorded net sales of EUR 1,318 million, an increase of 4.5%. With net sales of EUR 921 million, our Animal Health business was able once again to register exceptional successes in 2010. This corresponds to an increase of +51% on the previous year. 1,318m 921m Businesses 103 our businesses Be committed. Be reliable. Be successful. Be committed. Be reliable. Be successful. The success of our innovations is measured by the great number of patients who are helped by our medicines. 104 Boehringer Ingelheim annual report 2010 [ human pharmaceuticals ] “A medication, such as dabigatran etexilate, prevents the complications of atrial fibrillation, I mean the risk of blood clots and strokes.” dr john digby, specialist in internal medicine, toronto, canada Be committed. Be reliable. Be successful. 105 Be committed. Be reliable. Be successful. our businesses Human Pharmaceuticals Human Pharmaceuticals is our prime business area and accounts for nearly 93 % of our net sales. All our medications in various therapeutic areas are of special medicinal importance for our patients and thereby of great significance to Boehringer Ingelheim. How aware are you of the disease? “I am 80 and thriving. I swim half a kilometre twice a week, I work out in the gym and play golf. Oh, I feel great.” dr digby: “I don’t have it all the time, but I’d get bursts of this irregularity from time to time. I’d be quite aware something was sort of puttering away within, like a faulty electric or outboard motor, or something like that, that seemed to be going a little faster and a little irregular.” dr john digby, specialist in internal medicine, toronto, canada How was your atrial fibrillation treated? dr digby: “I started on dabigatran etexilate in August 2007, as part of a trial of this drug that was being conducted by my cardiologist, and I’ve Quality of life despite atrial fibrillation continued on that medication until the present. I Dr John Digby, 80, a retired specialist in internal knew that AF could be controlled with medica- medicine, has enjoyed a fulfilling life with his tions and to prevent the complications of atrial wife Donna for many years, despite being diag- fibrillation with a drug, such as dabigatran etexi- nosed with intermittent atrial fibrillation. late, I mean the risk of strokes and blood clots.” What has also made this possible is the active in- How do you feel taking the medication? gredient dabigatran etexilate, which, as a novel a kilometre twice a week, I work out in the gym danger of a stroke in this special type of cardiac and play golf. Oh, I feel great.” dysrhythmia. In the USA and in Europe alone, six million people suffer from atrial fibrillation (AF). When was your AF diagnosed? dr digby: “Well, it was rather dramatic. I had a cataract operation. Then I went home. And suddenly I collapsed. She (Donna) thought I was dead, I wasn’t breathing, I was pale, just lying there on the bed. Subsequently, the doctors followed it up and realised that I had what they called paroxysmal atrial fibrillation.” 106 dr digby: “I am 80 and thriving. I swim half oral anticoagulant, helps to prevent the typical Boehringer Ingelheim annual report 2010 Atrial fibrillation – an increasing problem [ usa ] [ europe ] [ worldwide ] 5.1m 4.5m + 100 % Patients with AF in USA in 2010 Patients with AF in Europe in 2010 The number of people with AF is expected to more than double by 2050 Sources: 1. Miyasaka Y et al. Circulation 2006;114:119-25 2. Fuster V et al. Circulation 2006;114:e257-354 ropace 2008;10:403-11 5. Coyne KS et al. Value Health 2006;9:348-56 3. Friberg J et al. Epidemiology 2003;14:666-72 4. Ringborg A et al. Eu- Managing atrial fibrillation (AF) vantageous than controlling heart Need for new anticoagulation The management of AF has two broad rate, and criteria favouring rhythm- Due to the limitations of current anti- objectives. These are the prevention of control include patients being young- coagulant therapy with vitamin-K-an- complications, including stroke and er and the existence of troublesome tagonists and/or acetylsalicylic acid, heart failure, and the relief of symp- symptoms of AF, despite treatment there is a need for an effective, safe toms from the arrhythmia itself. with rate-control. and convenient oral anticoagulant Symptom relief can be achieved by with predictable effects, fewer drug- either controlling the heart rate or re- A majority of patients with AF should drug interactions, no drug-food inter- storing sinus rhythm, which is only receive anti-thrombotic therapy actions and no requirement for rou- possible in rare cases. For stroke prevention, anti-thrombotic tine coagulation monitoring. therapy is recommended for all paTreatment strategies should be tailored tients with AF and at least one risk to the patient factor for stroke, other than those The goals of therapy need to be indi- with lone AF or contra-indications. vidualised for each patient. Studies Risk factors for thrombo-embolism and have demonstrated that rate-control bleeding must be considered when de- has similar efficacy to rhythm-control ciding on a stroke prevention strategy. and that rate-control is generally bet- Risk stratification schemes such as ter tolerated. Consequently, rate-con- CHADS2 and haemorrhages can be trol is recommended as the first-line used in clinical practice to stratify a strategy for many patients. Restora- patient’s risk of stroke and bleeding tion of sinus rhythm is still more ad- respectively. Human Pharmaceuticals 107 our businesses Prescription Medicines Prescription Medicines Within our Human Pharmaceuticals business, Prescription Medicines represents the focus of our activities. Our key products, such as pradaxa®, spiriva®, micardis® and mirapex®/sifrol®, made a significant contribution to our growth in 2010. Thrombo-embolic diseases – a novel oral anticoagulant Dabigatran etexilate (pradaxa®) represents a new generation of oral anticoagulants targeting a high unmet medical need in the prevention and treatment of acute and chronic thrombo-embolic diseases. [ pradaxa®, pradax®, prazaxa® ] is approved for stroke prevention in atrial fibrillation in the USA, Canada and recently in Japan. The medication is also approved for the primary prevention of venous thrombo-embolic events (blood clots) in adults who have undergone elective total hip or elective total knee replacement surgery. Approval for stroke prevention in Market authorisation in USA atrial fibrillation (AT) Approval in the USA made pradaxa® After 50 years without any major available to a broad spectrum of pa- therapeutic innovations being intro- tients, with the 150 mg twice-daily duced to the market, pradaxa® is dose approved for all patients, except the first novel oral anticoagulant to for a small subset with severe renal have been approved for stroke preven- impairment, where the approved dose tion in AT in the USA, Canada and is 75 mg twice-daily. recently in Japan. Market approval in other major markets is expected Market authorisation in Canada during 2011. In Canada, pradax® is available to AT patients with the flexibility of two 108 This approval of pradaxa® marks dosing regimens. While overall the an important step in advancing care 150 mg twice daily dose is recom- for patients with AT. pradaxa® repre- mended, the 110 mg twice daily dose sents a breakthrough innovation that is specifically available for elderly pa- has the potential to transform the an- tients aged 80 years and above as well ticoagulant market place for patients as for patients at increased risk of and prescribers. bleeding. Boehringer Ingelheim annual report 2010 Market authorisation in Japan Prevention of venous thromboembo- In Japan, the medication was approved lism after orthopaedic surgery under the brand name pradaxa® for pradaxa® is already approved in 75 the prevention of ischaemic stroke and countries for the primary prevention systemic embolism in patients with of venous thrombo-embolic events non-valvular AF. The medication is (blood clots) in adults who have un- available with 150 mg bid (given as dergone elective total hip or elective 2 capsules of 75 mg) recommended total knee replacement surgery. as the standard dose and 110 mg bid available for specific patient types considered to be at a higher risk of bleeding. Atrial fibrillation (AF) - Cost burden and need for treatment [ af and stroke ] [ managing af ] As many as three million people worldwide have an AF-related stroke every year; equivalent to one person every 12 seconds. One in four people aged 40 years or older develop AF during their lifetime, making it the most common heart rhythm abnormality. A majority of patients with AF should receive antithrombotic therapy. For stroke prevention, antithrombotic therapy is recommended for all patients with AF and at least one risk factor for stroke, other than those with lone AF or contraindications. Three out of four AF-related strokes can be prevented, but many patients are not aware of their risk and do not take action to prevent stroke. [ usa ] [ europe ] [ af-related stroke ] 6.65bn 6.2bn 3m EUR per year costs treating AT EUR per year costs treating AT Three million people worldwide have an AT-related stroke every year. Sources: 1. Fuster V, Rydn LE, Cannom DS, et al. ACC/AHA/ESC 2006 Guidelines for the management of patients with atrial fibrillation. Circulation 2006; 114:e257-e354 2. Bruggenjurgen B et al. The impact of atrial fibrillation on the cost of stroke: The Berlin Acute Stroke Study. Value Health 2007;10:137-43 3. Coyne KS, et al. Assessing the direct costs of treating nonvalvular atrial fibrillation in the United States. Value Health 2006; 9:348-56 4. Ringborg A, et al. Costs of atrial fibrillation in five European countries: results from the Euro Heart Survey on atrial fibrillation. Europace 2008; 10:403–411 Thrombo-embolic diseases 109 our businesses Prescription Medicines COPD treatment - sustained improvement in lung function spiriva®, a long-acting inhaled anticholinergic medication, is the first inhaled treatment to provide significant and sustained improvements in lung function with once-daily dosing. Picture: Loading the spiriva® respimat® with active ingredient Spiriva®, a long-acting inhaled anti- leads to significant improvements in cholinergic medication, is the first in- lung function (FEV1) and to signifi- haled treatment to provide significant cant reductions in the risk of exacer- and sustained improvements in lung bations and hospitalisations, delay function with once-daily dosing. The in time to first exacerbation and it unique mechanism of action of the preserves quality of life for up to four medication provides 24-hour airway years. Furthermore, it has demonstrated patency and optimal treatment flex- significant improvements in patients’ ibility and the treatment benefits prov- exercise tolerance. en in a broad patient population with or without concurrent respiratory spiriva® has a favourable safety pro- medications. file as demonstrated in the uplift® Spiriva® Respimat® cluding a 16 % reduced risk of mortality The delivery system spiriva® respimat® on treatment and a reduced cardiac relies on energy released from a spring, and respiratory morbidity, including rather than propellants, to produce a reduced respiratory failures. trial with spiriva®handihaler®, in- [ spiriva® ] Once-daily dosing, 24-hour airway patency Most prescribed maintenance therapy for COPD long-lasting, slow-moving soft mist. The delivery system respimat® produces a long-lasting, slow-moving soft mist spiriva® is the essential COPD treatThe innovative design makes spiriva® ment for earlier intervention, since it respimat® easy to use and results in provides efficient symptom relief, sus- reduced deposition in the mouth and tained benefits and a favourable long- throat compared to a pressurised me- term safety profile for all patients re- tered-dose inhaler (pMDI) without a quiring maintenance therapy. spacer device. Results of the POET® Study 110 Impact on the clinical course of COPD The POET® study tested the frequency spiriva® impacts positively the clinical of exacerbation of COPD in compari- course of chronic obstructive pulmo- son with salmeterol. For a year, more nary disease (COPD), helping to change than 7,000 patients took part in this the way patients live with their disease. class comparison of the long-acting It is the most prescribed maintenance anticholinergenic tiotropium with the therapy for COPD worldwide. spiriva® long-acting beta agonist/salmeterol. Boehringer Ingelheim annual report 2010 COPD - spiriva® recommended as a first-line maintenance treatment option for patients with moderate to severe COPD. Stage I (mild) Mild airflow limitation Stage II (moderate) Shortness of breath on exertion; cough and sputum Stage III (severe) Repeated exacerbations that impact Qol Stage IV (very severe) Greatly impaired Qol, life-threatening exacerbations Differential diagnosis – asthma versus COPD Asthma • Onset at an early age (often in childhood) • Symptoms vary from day to day • Symptoms often occur at night/ early morning • Allergy, rhinitis, and/or eczema also present • Family history of asthma • Largely reversible airflow limitation COPD • Onset in mid-life (usually 40+) • Symptoms slowly progressive • History of smoking • Breathlessness during exercise • Poorly reversible airflow limitation Diagnosis of COPD includes an assessment of risk factors, such as smoking and exposure to pollutants, and symptoms, including persistent cough and breathlessness. It is then confirmed by spirometry. Source: GOLD: Pocket Guide to COPD Diagnosis, Management, and Prevention, December 2010 spiriva® reduced the risk of COPD ex- symptoms can restrict a patient’s abil- Differential diagnosis of COPD acerbation significantly by 17 % versus ity to perform normal daily activities. and asthma COPD is often mistaken for asthma, yet salmeterol. Furthermore, the risk of severe exacerbations requiring hospitali- Importance of early and accurate these are very different diseases with sation were significantly reduced by diagnosis of COPD different underlying causes and out- 28 %. The study strengthened the posi- Due to its progressive nature, the early comes, and therefore require different tion of spiriva® as the first choice for diagnosis and treatment of COPD is treatment. Accurate diagnosis to distin- COPD therapy. essential to prevent complications and guish between asthma and COPD is es- exacerbations (worsening of symp- sential to ensure that all patients re- toms) associated with the condition. ceive the best therapy and avoid COPD COPD is a preventable lung disease further deterioration (see table). caused by the long-term inhalation of The Global Initiative for Chronic Ob- pollutants, most commonly cigarette structive Lung Disease (GOLD) inter- Treatment of COPD smoke, that progressively and perma- national consensus guidelines recom- A stepwise approach to treatment de- nently reduces the ability of adults to mend that patients are identified as pending on international treatment breathe well and maintain active lives. early in the course of the disease as guidelines like GOLD is recommended. COPD is characterised by shortness possible. (see figure) Maintenance therapy with long-acting of breath (or dyspnoea), coughing, bronchodilators is recommended first wheezing and increased sputum (mu- line for patients with moderate to very cus or phlegm) production. These severe COPD (GOLD stages II - IV). Respiratory diseases 111 our businesses Prescription Medicines Extended-release formulations increase adherence to therapy Once-daily formulations make a difference in the treatment of Parkinson’s disease and HIV/AIDS. Why once-daily formulations make a heim research to date available in over difference 90 countries across the globe for the Poor adherence to therapy regimens is treatment of the signs and symptoms common, leading to significant wors- of early and advanced idiopathic PD, ening of quality of life and increased as monotherapy or in combination health care costs. This is of impor- with levodopa. tance especially for neurodegenerative conditions, such as Parkinson’s dis- Mirapexin®/Sifrol® extended release ease, but also for life-threatening dis- Following the marketing authorisation eases, such as HIV/AIDS. by the European Commission in October 2009, a once-daily, extended re- By switching from more complex lease formulation of pramipexole [ mirapexin/sifrol® extended release/ mirapex er® ] treatments, such as two or even three (trade name mirapex er® in the USA) times daily medications, improve- was granted market authorisation by Symptomatic treatment of Parkinson’s disease ments in adherence can be expected. the US Food and Drug Administration Market authorisation in EU and the USA (FDA) for the treatment of early in Parkinson’s disease February 2010 and in March 2010 for Parkinson’s disease (PD) is a chronic advanced PD. neurological disorder. Its worldwide prevalence is estimated to be approxi- Benefit for the patient: reduction of the pill burden. This may increase compliance and may improve PD patients’ quality of life. mately 1-2 % of those over 65 years. In June 2010, Boehringer Ingelheim Although PD is traditionally associat- received European approval of two ed with motor symptoms, such as new tablet strengths (2.25 mg and tremor, rigidity, slowed motion, imbal- 3.75 mg) of the mirapexin®/sifrol® ance, shuffling gait, loss of facial ex- extended-release, once-daily formula- pression, the non-motor symptoms, tion for the treatment of early and ad- including depressive symptoms, pain, vanced idiopathic PD. cognitive impairment and sleep disorders, can be significant. The new dosages will offer PD patients to take only one mirapexin®/ 112 Pramipexole for treatment of PD sifrol® tablet once a day. This may in- Pramipexole (trade names mirapex- crease compliance and may improve in®, sifrol®, mirapex® and pexola®) PD patients’ quality of life. The new is a compound from Boehringer Ingel- extended release formulations will Boehringer Ingelheim annual report 2010 also offer an efficacy and safety profile Clinical efficacy results at 48 weeks comparable to the immediate release confirm that once daily nevirapine is tablet taken three times daily as dem- non-inferior to the already licensed onstrated in recent studies viramune®. HIV/AIDS Treatment – Viramune® The 400mg once-daily nevirapine ex- viramune® (nevirapine) is a member tended release formulation demon- of the non-nucleoside reverse tran- strated adequate drug exposure scriptase inhibitor (NNRTI) class of through 48 weeks, and efficacy was anti-HIV drugs and is indicated for consistent across gender, baseline viral the treatment of HIV-1 infection in load and country of origin. Both for- combination with other antiretroviral mulations demonstrated a similar ad- agents. verse event profile and no new side ef- [ viramune® extended release] Treatment of HIV/AIDS. Extended release formulation submitted to regulatory authorities for approval. verxve study results demonstrated safety and efficacy of once-daily viramune® extended release. fects were identified. Viramune® prolonged release With the once-daily formulation of our HIV medication viramune® , patients will be able to reduce their pill burden without foregoing the effectiveness, which will also be highly appreciated by their caregivers, as it is expected that a once daily administration can improve patient adherence to their treatment regimen. In 2010, the viramune®prolonged release formulation, including paediatric formulations, was submitted to the regulatory authorities in various countries. The VERXVE study The verxve study demonstrated efficacy and safety of 400mg once-daily nevirapine prolonged release formulation. The study was designed to compare the clinical efficacy of a new, once- “Most people with Parkinson’s disease take many different pills on a daily basis, to manage their PD symptoms and other concomitant conditions. Particularly newly diagnosed PD patients may experience more ease in coping with their illness when they are introduced to a simpler, oncedaily dosing regimen.” daily, single 400mg tablet of nevirapine prolonged release with the currently available version of viramune®, professor angelo antonini, director of the parkinson unit at the research institute irccs san camillo venice, italy which is 200mg taken twice a day. Parkinson’s disease - HIV/AIDS 113 our businesses Prescription Medicines Hypertension and cardiovascular protection Boehringer Ingelheim offers a portfolio of medications to support physicians to manage hypertension and to provide protection beyond blood pressure control. Hypertension hypertension with the introduction High blood pressure (hypertension) is of micardis® (telmisartan), an angi- a primary risk factor for a serious car- otensin II receptor blocker (ARB). diovascular event such as a heart at- [ micardis® ] Highly effective, well-tolerated blood pressure lowering Over the full 24 hours in a single once daily dose Additionally protects patients against severe cardiovascular events, such as myocardial infarction and stroke tack or stroke. Cardiovascular disease With twynsta®, micardisplus® and is the number one cause of death micardis®, Boehringer Ingelheim now worldwide. Well tolerated treatment has a portfolio of options, that all con- options that reduce the pill burden tain the ARB telmisartan. This range of for patients may lead to better man- products has been developed to support agement of their hypertension and phyisicians in managing hypertension lead to better outcomes. This is espe- and to provide cardiovascular protection cially important in patients who are beyond blood pressure control. particularly at risk of these serious cardiovascular events because their Telmisartan - efficacy and safety hypertension is severe, or they suffer Telmisartan is a modern ARB and has from diabetes or metabolic syndrome. been investigated in the most ambitious and far-reaching research programme There are now many treatments for conducted with an ARB. In the clinical high blood pressure yet control of trial programmes ontarget™, tran- hypertension around the world is still scend® and profess®, over 50,000 pa- low (see table). In most of the coun- tients were enrolled to investigate the tries surveyed, more than 40 % of efficacy in cardiovascular prevention of adults aged between 35 and 64 years telmisartan (for more information please had hypertension above the recom- visit www.news-landmarktrials.com). mended worldwide blood pressure level of <140/90 mmHg. Convincing safety data for patients with a high cardiovascular risk were 114 A portfolio of options for treatment of also collected in the three long-term hypertension outcome trials ontarget™, profess® Boehringer Ingelheim has established and transcend® which followed some itself at the forefront of treatment for of the patients for up to five years. Boehringer Ingelheim annual report 2010 micardis® offers an excellent safety profile, which has been confirmed also Hypertension: low awareness, treatment and control in a market exposure of 34.5 million patient years. Proportion of patients in the population (%) Country Aware Treated Controlled Telmisartan was discovered and de- Japan 16.0 – 4.1 veloped by Boehringer Ingelheim. UK 35.8 24.8 10.0 Under the trademarks micardis® and Germany 36.5 26.1 7.8 micardisplus® (combination with Spain 38.9 26.8 5.0 hydrochlorothiazide) Boehringer In- Sweden 48.0 26.2 5.5 gelheim markets telmisartan in 84 Italy 51.8 32.0 9.0 countries around the world, includ- USA 69.3 52.5 28.6 Micardis®, MicardisPlus® ing the USA, Japan and European countries. Telmisartan is marketed in BP < 140/90 mmHg Wolf-Maier et al. Hypertensions. 2004; 43:10-17 / Sekikawa, Hayakawa. J Hum Hypertens. 2004; 18:911-912 / Telmisartan Plus Amlodipine Medical Education Slide Resource: Final Version 1.0 (7.-July-2010 cooperation with Astellas Pharma Inc. in Japan, Bayer HealthCare in Europe and GlaxoSmithKline in selected markets. treatment of hypertension. At least two micardis® provides highly effective, thirds of patients need more than one well-tolerated blood pressure-lower- drug alone to control their blood pres- ing over the full 24 hours in a single sure. Many treatment guidelines suggest once-daily dose and is widely used as that combination therapy be initiated if medication to lower blood pressure. In a patient’s blood pressure is more than addition, micardis® is proven to pre- 20/10mmHg above their goal. vent patients at high risks from events, such as myocardial infarction and Twynsta® stroke. twynsta® is a new highly effective and well tolerated single pill combina- micardis® fulfils the medical need to tion therapy of the ARB telmisartan protect patients, especially older pa- and amlodipine, a calcium channel tients, from cardiovascular risks such blocker, for the treatment of hyperten- as myocardial infarction or stroke. It is sion. the only ARB which has cardiovascular prevention in its label and has be- twynsta® consistently reduces blood come a valuable treatment option in pressure in a broad range of patients the management of cardiovascular including those with mild, moderate risk. and severe hypertension. In particular, it is effective in hypertensive patients Unmet need in hypertension treatment with added risk such as those with Data from recent patient studies show obesity, metabolic syndrome and dia- that there are still unmet needs in the betes (see figures). Hypertension and cardiovascular protection 115 Prescription Medicines our businesses [ twynsta®/micamlo® ] Telmisartan plus amlodipine Since October 2009, telmisartan plus ment therapy in adult patients receiv- amlodipine (marketed as twynsta®) ing telmisartan and amlodipine from has been approved by the US Food and separate tablets containing the same Drug Administration (FDA) for use in component doses. the treatment of hypertension alone, Approved for treatment of hypertension alone, or in combination with other antihypertensive agents, and as initial therapy in patients likely to need multiple drugs to achieve their blood pressure goals or with other antihypertensive agents, Both telmisartan and amlodipine and as initial therapy in patients likely have a proven evidence base in cardio- to need multiple drugs to achieve their vascular outcomes. blood pressure goals. Twynsta® – trials overview Approved in the USA, EU and Japan Twynsta®/Micamlo® – market authorisa- The approval of twynsta® by the tion in Japan and the EU in 2010 European Commission followed a re- In Japan, telmisartan plus amlodipine view of three pivotal clinical trials. is marketed as micamlo® and was ap- Results from these studies demon- proved for the treatment of hyperten- strated that twynsta® provided con- sion in July 2010. sistent and significantly greater blood pressure reduction compared to the In October 2010, the European Com- respective monotherapies with the mission confirmed the positive opin- 40-80mg/5-10mg formulations. The ion of the European Medicines Agency medication allowed 82.7 % of patients (EMA) approving twynsta®. to achieve their 24 hour blood pressure goal (<130/80 mmHg according twynsta® is indicated for the treat- to the AHA criteria) with the ment of hypertension in adults whose 80mg/10mg formulation. blood pressure is not adequately controlled on amlodipine or as replace- twynsta® - Substantial and sustained 24-hour blood pressure lowering Patients achieving 24-hour ABPM goal* (%) Mean systolic blood pressure reductions after eight weeks of treatment with TWYNSTA® Diabetes p < 0.0001 100 82.7 80 60 40 Obese 00 n = 68 n = 188 Metabolic syndrome n = 36 Severe HTN n = 379 -10 -20 37.9 -30 20 -40 0 -50 A10 (n = 58) T80/A10 (n = 52) - 43.2 mmHg - 46.3 mmHg - 44.2 mmHg - 47.5 mmHg * AHA criteria for 24h BP goal Mean SBP reductions from baseline (mmHG) Figure 2. TWYNSTA® provides superior 24-hour ambulatory blood pressure monitoring (ABPM) goal rate achievement (<130/80 mmHG*) in 82 % of patients Figure 3. TWYNSTA® delivers powerful blood pressure reductions for patients with added risk 116 Boehringer Ingelheim annual report 2010 “The latest data confirm that combination therapies provide a valuable treatment option for patients, including those with severe hypertension. The results demonstrate that the combination of telmisartan and amlodipine provides reliable reduction in blood pressure and offers a more favourable safety profile than the respective individual therapies – an important consideration for improving adherence, which is often a barrier to effective blood pressure control.” professor michael böhm, department of internal medicine and cardiology, university of saarland, germany In addition, results from a recent double-blind, randomised, controlled trial in patients with severe hypertension (teamsta severe hypertension) showed that twynsta® reduced systolic blood pressure by a mean of nearly 50 mmHg. This powerful reduction, observed in nearly half of patients, is among the highest blood pressure reduction achieved in antihypertensive trials. Related links: www.ontarget-telmisartan.com www.micardis.com Hypertension and cardiovascular protection 117 our businesses Consumer Health Care Consumer Health Care Consumer Health Care (CHC) is one of the core businesses of Boehringer Ingelheim. CHC strives to serve consumers worldwide with top-quality pharmaceuticals for self-medication. Innovation – a major driver for CHC The market for over-the-counter (OTC) healthcare is undergoing constant change. This is influenced by regulatory, competitive and technological factors, as well as by the growing consumer trend towards taking personal responsibility in addressing healthcare and well-being. Key drivers of consumer trends fast access to healthcare information. Aging populations and cost pressure Disease, treatment, product and price on healthcare systems change the information is at the tip of their fin- landscape of the markets in which gers and experiences and evaluations Boehringer Ingelheim CHC is compet- are shared via web portals, blogs and ing. Cost pressure leads to govern- social networks. In order to create and ments no longer supporting reim- maintain sustainable growth in the bursement of all medications. This has OTC market, innovation is therefore led to an increase in preventative med- key for Boehringer Ingelheim CHC. icines and an increasing willingness of Core sources of innovation are: regulators to consider switching prescription medicines to OTC brands. New business opportunities (NBOs) RX to OTC switches 118 The way consumers seek and use in- The CHC new business opportunities formation is also changing. The mod- process delivers continuous improve- ern consumer wants to be well in- ments in terms of line or brand exten- formed and self empowered to be able sions. It typically represents new pres- to take care of their health and well- entations of the international core being. New information technology brands, such as formulations, tastes, enables consumers to have easy and e.g. mucoangin® Cassis and Lemon. Boehringer Ingelheim annual report 2010 Providing this type of change keeps OTC products need ongoing scientific our core business modern and rele- support and news. Within the special- vant. ist disciplines of CHC, the groups of Development, Medical and Regulatory Brand extensions aim to grow the cus- Affairs (DMRA) are centres of excel- tomer base of the international core lence and have an extensive and inti- brands by moving it into new areas of mate knowledge of the medical and business, such as new indications and scientific support of our brands. areas of medical need. For example, [ chc highlights 2010 ] • Six out of seven CHC international core brands grew above their categories. • Our key brands hold over 50 local category leader positions around the world. buscofem® using ibuprofen extends Recent clinical study results have con- buscopan® into the area of menstrual firmed the efficacy and safety of our pain and opens the international core brands. • Obtaining 100% of SSP shares in Japan in 2010 has resulted in Boehringer Ingelheim being the only multinational in Japan’s top 10 OTC companies. Innovation in execution • With SSP, CHC now has the largest OTC cough business in the world. brands to a new target market to build incremental sales. As Boehringer Ingelheim moves into • Creation of RX-to-OTC switch unit In order to further expand and max- 2011, specific programmes for sales imise the trends described above, CHC excellence and launch excellence will will also strive to enter in new upcom- be started in early 2011 and be rolled ing OTC categories. out across the year. • alesion® (epinastine, allergic rhinitis) switch approval Japan This will be done by pioneering RX By addressing all sources of innova- (prescription medicines) to OTC tion, CHC is prepared to benefit from a • Successful rollout of “Got mucus” TV campaign for bisolvon® switches which are fostered by the lively and fast-changing environment changing regulatory environment ex- and continue to provide consumers perienced in many countries. As of with new options to take care of their 2010, CHC has a fully dedicated RX- health and well-being. • Excellent clinical trial results for dulcolax® and antistax® • Successful launches and brand extensions under pharmaton®, dulcolax® and buscopan® to-OTC switch unit to clearly dedicate resources to assess and exploit this promising opportunity. Communication-driven innovation In line with the fast development of communication patterns and related technology, CHC has to adapt its communication tools accordingly. Classic TV and print campaigns still represent an important part of the communication mix, however new media also have Read more about RX-to-OTC switch unit page 120 to be targeted in order to reach target groups even more efficiently. Medical support-driven innovation Read more about clinical study results for DULCOLAX® page 124 Boehringer Ingelheim’s established Innovation – a major driver for CHC 119 our businesses Consumer Health Care The new RX to OTC switch unit Bringing more self-care solutions to patients. 250m The overall buscopan® franchise today comprises sales of close to EUR 250 million. Given the progressive ageing of the OTC switches as a strategic tool to population and the accompanying in- open up new OTC categories, it is crease in chronic diseases, the health- worth pointing out that Boehringer care systems of the developed world Ingelheim’s CHC has switched its face fundamental and profound own compounds in the past with changes. The growing shortage of phy- great success. sicians reduces the time for professional consultation. State budget cuts, The switch of Buscopan® coupled with rising health costs, re- An excellent example is buscopan®, lentlessly raise the financial pressure. which has been switched step-by-step This can lead to restricted accessibility in many regions – over decades. Still, to existing and effective treatment op- as of today, some combination prod- tions and thus endanger overall public ucts sold under the brand buscopan® health. have not yet been switched to OTC and buscopan® is thus a brand com- [ buscopan® ] RX to OTC switches Has been switched step-by-step in many regions. Many diseases are self-treatable with prising both RX and OTC products at good OTC medicines, supported by the same time (dual status). appropriate educational and awareness campaigns. This is both welcomed by The medical, advertising and promo- most consumers and reduces the de- tional efforts of the CHC business mand on healthcare systems. Trans- have enabled both the RX and the buscopan® is a brand comprising ferring former prescription me-dicine CHC products to grow significantly both RX and OTC products at the same time (dual status). products to self-medication status in- over the last couple of years under the creases consumer access to treatment common brand buscopan® (see chart options, reduces overall healthcare below – buscapina® in Latin America). A dual status strategy has proven to be successful. costs and can, with the right support, significantly increase the awareness of The overall buscopan® franchise to- the respective health condition and day comprises sales of close to EUR the independence of the individual in 250 million. And the story has just be- treating themselves. gun. This case shows that a dual strategy (brand exists in different dosages 120 While current market dynamics and or formulations in RX and OTC in competitor activities clearly underpin parallel) after patent expiry proves to the increasing importance of RX to be very successful. As the chart below Boehringer Ingelheim annual report 2010 shows, RX and OTC business, i.e. in tion of Boehringer Ingelheim as one of Latin America, subsequently are grow- the world’s leading self medication ing steadily in parallel, driven by CHC companies with high-level marketing marketing efforts. and sales capabilities as well as a [ flomax® relief ] First-in-class switch of flomax® in the UK. unique global coverage. The RX to OTC switch unit The complexity of new switches, A significant achievement by Boe- particularly those from chronic and hringer Ingelheim, the first switch for symptomless conditions, requires a chronic condition, came at the end pioneering regulatory and marketing of 2009, with the first-in-class switch approaches - a need also recognised of flomax® (tamsulosin) in the UK. As by other global pharmaceutical com- of the beginning of 2010, flomax re- panies. This has led to the decision to lief® mr has been sold OTC in UK establish a fully dedicated RX to OTC pharmacies. This marks an entry into switch group within CHC. a completely new self-medication cat- Available in UK since first quarter 2010. Entry into a new self-medication category. egory and will serve as a reference or The switch group will focus on two learning case for further switches in strategies. First, to switch mature Boe- the UK and other countries. hringer Ingelheim products, thus extending their life cycle well beyond patent protection and offering consumers new self-care solutions. Secondly, it will position CHC as a partner of choice for external switch candidates through the strong posi- buscapina® Americas CHC investments drives overall buscopan® growth Sales in EUR 80,000 70,000 60,000 50,000 40,000 CAGR PM: 30,000 + 6.9 % 20,000 CAGR CHC: 10,000 + 23.1 % 0 2004 2005 Prescription Medecines (PM) 2006 2007 2008 Consumer Health Care (CHC) 2009 2010 CAGR= Compound Annual Growth Rate The new RX to OTC switch unit 121 our businesses Consumer Health Care Innovative social media campaigns in CHC Reflecting changing consumer behaviour regarding information searches leads to integrated advertising campaigns using both social and classical media. People spend more and more time on Digital activity - Poland the internet, especially on social net- In Poland, a successful digital cam- works. A consumer-orientated busi- paign was executed in 2009 for ness like Boehringer Ingelheim’s CHC buscopan® without any TV support. must therefore reflect changing con- A market share increase from 2 % to sumer behaviour regarding informa- 4 % was achieved. The campaign was tion searches. Classical advertising executed throughout 2010, support- patterns using only mass media, such ed by booster phases on TV which as TV, are no longer the best and most doubled the market share to 8 %. effective methods of communication. Digital activity - Brazil Today, both social media campaigns The CHC team in Brazil was one of the and classical advertising campaigns (TV first willing to take a calculated risk by or any other media) exist in parallel and using social media as one pillar of their are being aired as integrated campaigns. 360° communication to consumers. Various campaigns for international brands such as buscofem®, mucosolvan®, mucoangin® and pharmaton® were developed. Whenever someone in Brazil was talking about sore throats (mucoangin®) on Twitter, Orkut or Facebook, the team was available to answer the consumer’s questions in real time. For the cough market (mucosolvan®), the team created a variety of tools for educating as well as entertaining consumers. For menstrual cramps (buscofem®), a www.123livredatosse.com.br 122 Boehringer Ingelheim annual report 2010 highly personalised platform was cre- “It is important to listen and learn from our consumers and finally engage and entertain them in the right places at the right times. Today, many of our consumers are spending a lot of time on social media platforms.” benni boruchowski, marketing chc, brazil ated to help younger women deal with their problems. To encourage the consumer to think about their vitality (pharmaton®), the Brazilian CHC team established events in the offline world that are highly connected to the web and delivered a portal where all Brazilians are able to track their mental and physical performance. Further links of social media campaigns: buscofem® www.buscofem.com.br www.dicadeamiga.com.br mucoangin® www.mucoangin.com.br www.tratadordegarganta.com.br mucosolvan® www.mucosolvan.com.br www.123livredatosse.com.br pharmaton® www.pharmaton.com.br www.clubepharmaton.com.br Especially for product launches, the broader use of digital and social media can be highly effective to test bisolvon® www.bisolvon.com.br future communication strategies on a lower cost level. The Polish and Brazilian experiences serve as case studies for other countries. Today, CHC runs digital media campaigns all over the world. In 2010, CHC reached more than 300 million consumers through digital media campaigns. CHC runs more than 250 websites around the world with more than 15 million visitors per year in more than 40 countries. www.clubepharmaton.com.br Innovative social media campaigns 123 our businesses Consumer Health Care Dulcolax® – innovation through state-of-the-art clinical studies Boehringer Ingelheim Consumer Health Care (CHC) is committed to progressing scientific knowledge about its products and has conducted clinical studies on dulcolax® tablets and dulcolax® drops. Boehringer Ingelheim’s international Innovation through new clinical trials core brand, dulcolax®, offers consum- To demonstrate the commitment of ers worldwide a range of effective and Boehringer Ingelheim to progressing well-tolerated products for intestinal ir- scientific knowledge about its prod- regularity and disruption. ucts, the company conducted two randomised, double-blind, placebo-con- [ dulcolax® ] Flagship brand: range of products for intestinal irregularity and disruption. 50 years on the market: sold in 60 countries across the world. Franchise is worldwide market leader: Net sales: EUR 159 million in 2010 Market share: 6.6 %. The dulcolax® range includes dulco- trolled, parallel group clinical trials in lax® tablets and suppositories (bisa- accordance with ICH-GCP guidelines codyl), dulcolax® pearls, drops and and in patients with functional consti- syrup (sodium picosulfate) , dulcolax® pation. One trial assessed bisacodyl balance (macrogol), dulcofiber® (glu- and the other assessed sodium pico- comanan), and, in selected countries sulfate. additionally, dulcoease® (docusate sodium) and dulcoenema® (glycerine). Efficacy and safety confirmed – Dulcolax® – a success story The clinical studies were conducted With a history of over 50 years on the on dulcolax® tablets (bisacodyl) and market, dulcolax® is today sold in dulcolax® drops (sodium picosulfate) more than 60 countries across the and clearly demonstrated efficacy by world, generating net sales of EUR increasing the frequency and regular- 159 million. The franchise is the ity of bowel movements. quality of life improved worldwide market leader in the irregularity field with a market share of Study design 6.6 %. • Objective: to determine the efficacy and safety of four weeks of treat- The success of dulcolax® is based not ment with oral bisacodyl tablets 10 only on sound consumer insight, mar- mg (2x 5mg dulcolax® tablets), or keting and sales, well-defined product 10mg sodium picosulfate (drops) ranges and new product development, • Patients with chronic constipation but also on a solid scientific founda- (defined by ROME III criteria), once tion which was significantly enriched daily dosing. by two recent clinical trials. 124 Boehringer Ingelheim annual report 2010 • Bisacodyl trial: 368 patients were randomised and treated, 247 with ferers’ everyday well-being, measured A foundation for further growth bisacodyl, 121 with the placebo. by the constipation-related PAC-QoL® The sodium picosulfate trial was pub- questionnaire. lished in the American Journal of Gas- • Sodium picosulfate trial: 367 patients were randomised and treated, 233 troenterology in 2010. The results of with sodium picosulfate and 134 with One of the most important questions a the two trials were also presented at the placebo. consumer with constipation faces is both the leading European (UEGW) related to efficacy. The answer to this and North American (Digestive Dis- question determines whether a partic- ease Week) scientific congresses in the ular drug will be used again or not. In gastroenterology field. • Efficacy data were recorded daily in an electronic diary by patients. Study results these trials, the final global efficacy During the four weeks of treatment, the was assessed by the patient after a The above studies further confirm the mean number of complete spontaneous four-week treatment period and the leading position of dulcolax® not only bowel movements (CSPM) per week outcome was very positive. This recon- in the laxative market, but also in the (primary efficacy variable) was statisti- firmed why consumers worldwide rely related scientific arena. Ultimately, this cally significantly higher in the bisa- on dulcolax®: will lead to the further strengthening codyl and sodium picosulfate group than in the placebo group (p<0.0001). of Boehringer Ingelheim’s scientific • 79.5 % of the patients taking bisa- • 87.7 % of the patients taking sodium [Gastroenterology 2010, 138 (5): 228; picosulfate rated the efficacy of the Am J Gastroenterol 105 (4), 897 - 903 drug as good or satisfactory. (2010)]. For the first time, it was shown that treatment with dulcolax® (bisacodyl and consumers worldwide. as good or satisfactory. proved to be an effective, well-tolerated treatment for patients with constipation. reputation with doctors, pharmacists codyl rated the efficacy of the drug Oral bisacodyl and sodium picosulfate • The comparisons to the evaluations tablets and sodium picosulfate drops) done by patients in the placebo group in patients suffering from constipation resulted in statistically significant results in an increase of quality of life differences in favour of dulcolax®. as well as an improvement in the suf- Quality of life of patients treated with dulcolax® Percentage of patients Percentage of patients 60 60 Patient 50 40 40 30 30 20 20 10 10 0 Patient 50 0 Good Placebo Satisfactory Sodium picosulfate Not satisfactory Bad Good Placebo Satisfactory Not satisfactory Bad Bisacodyl Innovation through state-of-the-art clinical studies 125 our businesses Biopharmaceuticals Biopharmaceuticals Innovation helps us to be successful and to maintain our technological leadership in biopharmaceutical development and manufacturing for both in-house research projects and our contract manufacturing business. 126 Boehringer Ingelheim annual report 2010 What is a TIM? What is innovation in Biopharmaceuticals? Our goal is to open new horizons for health and healing. This is achieved through innovative modes of action, product enhancement or a fresh approach to well-known issues. Who are your customers in the biopharmaceutical “Innovation in technology is turning ideas into commercially viable opportunities.” business? dr jung: “Our customers are both our internal R&D colleagues as well as our external contract manufacturing customers. For all our cus- dr wolfgang buchinger, technology innovation manager, vienna, austria tomers, we develop and transfer processes for the entire, wide-ranging field of biopharmaceutical compounds, from small protein scaffolds to large antibodies in all clinical stages from early development up to phase II/III and market supply. Our innovation programme basically addresses What is the key function of a technology and both product and process-related improvements innovation manager (TIM)? which have the potential to generate higher val- dr buchinger: “Our role as innovation managers is really multifunctional. As a tech- ue. This enables us to offer unique, cutting-edge services to all our customers.” nology scout, we are continuously searching for attractive innovations which are complementa- What are the major achievements of the ry to our in-house technologies. Internally, we technology and innovation programme? serve as facilitators to support our scientists dr jung: “The production of a biopharma- who are the ideal source for creative ideas and ceutical product from DNA to bulk filling reflects innovations for our biopharmaceutical business. a value chain. Along this value chain, there are This includes guidance for the scientists on many starting points for innovation which in- managing the technology portfolio, ensuring clude enhancement of productivity, shorter de- highest scientific and technical quality in the velopment timelines, robust processes as well as programme. Furthermore, we assist in the de- high product stability during storage. DNA as the carrier of genetic information also encodes for biopharmaceutical drugs such as monoclonal antibodies or recombinant proteins. velopment of strategies and the active implementation of new technologies as part of our Our recent achievements include molecular and customer services. cellular improvements of our BI-HEX® cell culture platform as well as our integrated lean We are also responsible for translating the high downstream platform, which we call BI-PurEx®. level technology strategy into an operative im- These innovations have led to titers of up to 8 g/L plementation plan together with the scientists.” and yields greater than 90% after purification. Biopharmaceuticals 127 our businesses Biopharmaceuticals The available technologies include, for example, “Innovation in technology is to create value for users.” high titer processes in E. coli with superior fermentation yields of up to 20 g/L. Our refolding platform enables the production of several scaffold molecules as inclusion bodies in E. coli with dr alexander jung, technology innovation manager, biberach, germany outstanding yields. In addition to these process innovations, we have established product technologies which improve the half-life of those scaffold molecules and These innovations, together with excellent proc- make them more convenient for patient dosing. ess quality control, lead to a very high success The broad range of technologies covers PEG-yla- rate and product quality in development and tion, HES-ylation and HSA-fusions. clinical material supply.” For efficient purification of high protein dr buchinger: “For microbial expression amounts, we have established large-scale pro- systems, a number of powerful platform technol- tein crystallisation with a systematic develop- ogies and a versatile development toolbox have ment approach for both cell culture and micro- been established to continuously succeed in a bial technologies.” challenging market environment. Besides inhouse development, scientific collaborations with universities and other external partners as How do you deliver continuous innovation? dr jung: “We have established a continuous well as in-licensing are also utilised to improve technology innovation process which identifies technologies, drive innovation and provide com- our internal technology needs. The process in- petitive advantages to our customers. cludes prioritisation of the different internal objectives, benchmarking existing external technologies and their value potential and due diligence of selected technologies with regard to feasibility in routine development and manufacturing processes. Together with our function Competitive Intelligence, we constantly screen the outside world for technology trends and future customer needs. This approach helps us to offer cutting-edge technologies to our customers.” E. Coli microorganisms can be used to produce non-glycosylated biopharmaceuticals. dr buchinger: “Out of the large pool of internal and external ideas and opportunities, the technologies that will help to achieve this goal are the highest priority in our innovation pro- Picture: © DR LINDA STANNARD, UCT/ SPL / Agentur Focus 128 Boehringer Ingelheim annual report 2010 grammes. These innovations incorporate both solutions for short-term development projects, as Crystals of recombinant interferon gamma well as ideas for a long-term technology strategy. cytotoxicity (CDC) or antibody-dependent cell- The innovation managers at the manufacturing mediated cytotoxicity (ADCC) for specific medical sites play an important role here in ensuring the applications. To be able to offer these technolo- link of the technology development to strategic gies makes a big difference for a manufacturer, goals and business benefits.” because it offers an added value to the customers’ projects and helps them to be more success- How will future service in biopharmaceuticals ful in clinical development. A lower attrition rate production look? thus means a more likely market product for dr jung: “As we are seeing a competitive sit- Boehringer Ingelheim.” uation, together with a continued vigorous growth on the market in biopharmaceuticals, it is dr buchinger: “Additionally, a short time- important to be able to offer unique advantages line for process development and thus minimised to all our customers. time-to-clinic is also crucial to be competitive in the contract manufacturing market.” Beyond the quality and process technologies that I have already mentioned, I think that it is also important to have a unique selling proposition that helps our customers to get access to product improvements through the development of the production process. At Boehringer Ingelheim, we deal with technologies that help address issues wit the molecules in the medical application profile, such as half-life, immunogenicity, aggregation, but also mechanism of action, such as complement-dependent Read more about protein crystals: page 132 Biopharmaceuticals 129 our businesses Biopharmaceuticals Orchestrating innovation New expression systems and recent improvements available for current systems have the potential to revolutionise the biopharmaceutical industry. Lower costs and efficiencies of newer expressionsystems are driving these changes. Being at the cutting-edge, Boehringer antibodies or recombinant proteins, Ingelheim constantly develops new Boehringer Ingelheim’s proprietary technologies to offer our customers a high-expression system BI-HEX® en- competitive advantage. ables fast-track development of highquality combined with high titers The high demand for biopharmaceuti- from CHO (Chinese hamster ovary) cals has led to the development of cells. The BI-HEX® platform meets large-scale manufacturing processes both demands for a fast time-to-clinic and technologies to improve produc- as well as the scalability for later tivity in manufacturing. One area that large-scale manufacturing. The plat- has increased productivity is the gen- form addresses all important features, eration of high-expression cell lines. including process performance, product quality, safety and comparability. BI-HEX® - your best match Boehringer Ingelheim has further- For the industrial production of bio- more extended the CHO host cell port- pharmaceuticals, such as monoclonal folio within the BI-HEX® platform. This gives our customers the opportunity to select from different glycoprofiles which best fit their product. This variety of different CHO cell lines is sufficient to meet targeted glycoprofiles and quality, especially in second generation processes. One strategy to further improve productivity, cell growth, product quality and cell stability, is cell line engineering. Since most biopharmaceutical products are proteins that are secreted from the cells, the secretory transport machinery of the production cell line is an important target for novel cell engineering strategies. Chinese hamster ovary cells. 130 Boehringer Ingelheim annual report 2010 ConCERT™ is an innovative, genetical- molecule) in biopharmaceutical pro- ly optimised BI-HEX® CHO cell line duction processes. This important fea- which overexpresses the CERamide ture reduces the cost of goods to gen- transport protein (CERT). erate material for clinical trials or market supply. conCERT™ thereby CERT is a cytoplasmic lipid transfer makes production more economical protein which simultaneously facili- and speeds up drug development tates both lipid and protein transport. through faster delivery of sufficient The conCERT™ cell lines show im- material for pre-clinical studies. proved secretion characteristics. These cells are therefore ideal host cell lines for recombinant protein production, as they have an improved secretory capacity as well as good growth characteristics. The enhanced secretion of recombinant proteins from conCERT™ cells lead to up to 100% higher product titers (depending on the product The key to the conCERT™ technology • The human CER-amide Transport protein (CERT) is a cytoplasmatic transfer protein that transports single lipid molecules from the endoplasmatic reticulum to the plasma membrane via the Golgi apparatus. • CERT is also a substrate of protein kinase D, a known regulator of protein secretion. This results in simultaneously facilitating both lipid and protein transport. er golgi cert CERT shuttles lipids and facilitates secretory transport. Orchestrating innovation 131 Biopharmaceuticals our businesses Protein crystallisation Micro-scale crystallisation of proteins is widely used as a tool for structure determination. Preparative crystallisation may be an alternative to costly unit operations. Picture: Crystals of a monoclonal antibody Two decades of intensive development can fulfil the increasing market de- of novel expression systems for mam- mand for biopharmaceutical proteins. malian cells and microorganisms have led to a significant increase of fermen- Preparative crystallisation of biophar- tation titers in the biopharmaceutical maceutical proteins has the potential production of proteins (more than to dissolve bottlenecks in large-scale 20 g/L in microbials and more than downstream processes and may be an 4 g/L in mammalian cell culture). alternative to costly unit operations, However, dynamic binding capacity of such as liquid chromatography. chromatography resins is often limited and very large chromatography col- Since there is a general lack of knowl- umns are needed to purify such large edge about multi-kilogram cystallisa- amounts of target proteins. New paths tion processes, substantial efforts have for cost-efficient purification are been made at Boehringer Ingelheim’s therefore needed which include down- Process Science department to over- stream processing steps that can cope come the limitations. A very efficient with high fermentation titers and that systematic development approach has therefore been set up for bulk crystallisation processes that have been prac- Crystallisation of proteins tically approved with a wide variety of While highly diffracting single crystals are required for structure analysis, the objectives for bulk crystallisation processes are different: scalability up to a several thousand litre scale, fast growth kinetics, cheap and pharmaceutically acceptable compounds, as well as high recovery rates are the major characteristics of efficient bulk crystallisation processes. proteins. Successful scale-up To date, using this systematically and practically approved approach, a wide variety of biopharmaceutical proteins, X-Ray / Understanding interactions Screening for crystallisation Different conditions crystals such as single chain antibody fragments, growth factors and interferons, were successfully crystallised from downstream intermediates, in particular from crude homogenate, resulting Purification / Formulation in high product purity. Yields in the range of 95 %, with highest quality and process robustness, can be 132 Boehringer Ingelheim annual report 2010 achieved even from crude cell lysates. gelheim was able to crystallise an IgG At our production facility in Vienna, antibody with a yield of 98 % under Austria, we have successfully up- optimised conditions, resulting in no scaled this process to several kilo measurable loss of binding activity in grams per batch. This development en- the redissolved antibody. Crystallisa- ables the implementation of down- tion is therefore an innovative path to stream processes whereby several time purify biopharmaceuticals during -consuming and expensive chromato- downstream processes in a fast and graphic steps can be replaced by crys- economically valuable way. tallisation. In addition, protein crystallisation has Crystallisation of monoclonal the potential to become a new eco- antibodies nomical tool for the stable formula- At our mammalian cell culture facility tion and storage of biopharmaceuti- in Biberach, Germany, the department cals. Crystallisation of macromolecule of Downstream Development works pharmaceuticals can offer significant on the challenge of crystallising anti- advantages, such as high stability, con- bodies which are made up of large, trolled release of activity and high complex molecules. Although crystal- doses at the delivery site, which are at- lisation of full-length monoclonal an- tractive for mAb therapies and recom- tibodies (mAbs) has been a subject of binant proteins. [ objectives ] • Evaluation of crystallisation as an economic purification step in downstream processing. • Evaluation of crystallisation as an economic and stable formulation and storage step. • Co-crystallisation of mAbs with different receptors to gain a better understanding of the protein interactions. • New ideas on how to improve the interactions between IgG and receptors. significant interest for the last three decades, very few intact mAbs have ever been crystallised. Boehringer In- Picture: Crystals of scaffold proteins Protein crystallisation 133 our businesses Biopharmaceuticals Production platform for affinity scaffolds in microorganisms Platform technologies in process science are of great importance for simplifying the development of commercially viable production processes in a time and cost-effective way. Beyond antibodies tibodies. In order to broaden the port- Over the last few years, many compa- folio of Boehringer Ingelheim Regional nies have developed their own affinity Center Vienna (RCV) as a contract scaffold platform and are now trying manufacturer, the application of its to validate in clinical studies. Affinity E. coli production platform was in- scaffolds represent a very promising vestigated for two further affinity scaf- novel class of ligand-binding proteins. folds: single-chain antibodies (scFv) They are derived either from antibod- derived from human monoclonal anti- ies or other human proteins that pro- bodies and anticalin®s, derivatives of vide variable regions on top of a con- natural lipocalins. served framework. The advantages of these next generation protein thera- Single-chain antibodies peutics that are much smaller than Single-chain antibodies are the fusion monoclonal full length antibodies are of the variable light (LC) and the vari- their stability, high tissue penetration, able heavy chain (HC) of a monoclonal high affinity and target selectivity and human antibody. The two chains are individual control of their serum half- connected via a peptide linker and can life. Their format flexibility – scaffolds be arranged in two different ways: can form bi or trivalent dimers or HC-linker-LC or LC-linker-HC. We trimers – enables the development of have investigated the influence of the new, innovative drugs. arrangement of the chains, as well as the nature of the linker peptide on the Compared to monoclonal full-length fermentation titer, the quality of the antibodies, many of these affinity scaf- inclusion bodies and the refolding folds can be produced in microorgan- yield. Thus, our platform for produc- isms because of their small size, stabil- tion of scFv combines production and ity and no need for glycosylation. product properties. ScFv can now be expressed in E. coli as insoluble inclu- 134 Nanobodies sion bodies (IBs) at outstanding titers In recent years, Boehringer Ingelheim of 8-10 g/L at short cultivation times RCV has developed a manufacturing of less than 32 hours. The production toolbox for nanobodies®, scaffolds process of scFv further comprises a derived from camelid heavy-chain an- very efficient purification step by sim- Boehringer Ingelheim annual report 2010 Three-dimensional nanobody® structure ply washing the IBs that contain the for refolding. Thus, a simple purification desired protein already with a purity process, comprising an effective step for of more than 70 %. Refolding yields in endotoxin and DNA removal and only the range of 60 – 80 % therefore ena- two chromatography steps, could be ap- ble an efficient production process. plied. Starting from the cDNA of an anticalin®s, about 100 mg of this Anticalin®s anticalin®s were provided, thereby anticalin®s were also integrated suc- meeting all quality criteria within four cessfully into our E. coli platform for months. the production of affinity scaffolds. For anticalin®s, we developed a basic We thus showed that Boehringer Ingelhe- production process in less than four im RCV’s E. coli manufacturing technol- months, applying our E. coli produc- ogy is an attractive tool for our customers tion platform. anticalin®s were ex- for the large-scale GMP production of af- pressed in a soluble state in E. coli at finity scaffolds. high titers (~ 10 g/L) without the need Production platform 135 Operations our businesses Operations Operations at Boehringer Ingelheim ensures reliable supply of high-quality advanced intermediates, active pharmaceutical ingredients (APIs) and final drug products for both internal and all external markets. 136 Boehringer Ingelheim annual report 2010 High quality and supply at competitive cost The global divisions Launch & Strategic Products and Established Products form two important cornerstones in manufacturing by Operations at Boehringer Ingelheim. They are complemented crossfunctionally by corporate quality and supply chain management. Launch & Strategic Products (LSP) en- well-established products which re- sures launch excellence through the quire cost-effective processes and implementation of robust analytical, management of the product life cycle. chemical and pharmaceutical processes. It launches new products on the Both divisions serve internal and ex- markets and ensures continuous sup- ternal customers who benefit from ply of a product in the beginning of its Boehringer Ingelheim’s launch capa- life cycle. Once launched and in a bility, innovative technology and more mature phase, responsibility will thinking and of course a cost-effective be transferred to the Established Prod- mindset. ucts network. Established Products (ESP) leads the internal and external production network to ensure smooth and stable market supply of already launched and Operations: joint responsibility of LSP and ESP throughout the product life cycle Development Industrialisation Launch Routine Life Cycle Phases LSP LSP LSP ESP Sites Product Allocation ESP/3rd Party Production Sites Operations 137 Operations our businesses Interplay between production and logistics From the production of basic materials to actually reaching the patient, each new medicine that Boehringer Ingelheim brings to the market first requires years of effort from our employees and heavy investment. In conjunction with the launch of new medicines, there are other challenges to overcome besides those in routine production. Despite all of that, all production technology and logistics inputs, involving hundreds of employees worldwide, must mesh smoothly. LSP responsible for launches tween researchers and process developers is Each new product also demands new production therefore started at a very early stage. processes. Launch & Strategic Products (LSP) is responsible worldwide for the development of LSP employees are integrated when possible new robust, economic processes for launching new raw materials are involved. As soon as the possi- products. bility for success of a development project are evident, LSP gets involved. LSP’s services form the bridge between innovation at small-scale and local market require- Early preparation is necessary and that is because ments, ultimately ensuring that the volumes international marketing often starts the day after needed can be manufactured. Reliable supply of authorisation. Considerable investments are thus the whole world market with a medication dif- already activated in advance: the production fers considerably from manufacturing it under plants are built, personnel taken on and product test and research conditions. The cooperation be- and packaging pre-produced. From raw material to product to patient: our value and supply chain [ chemical production ] [ active pharmaceutical ingredient ] [ pharma production ] Intermediates Core substances Finished goods 138 Boehringer Ingelheim annual report 2010 Each new medication fundamentally presents cause from translation of the packaging label to the LSP team with completely new challenges. transportation, the whole process chain benefits A new active ingredient and appropriate excipi- from proximity to the market. ents must be brought together in a stable process. Depending on whether it involves a syrup, Logistics processes decisive for time factor tablets, capsules, suppositories or inhalers, the Research-driven pharmaceutical companies, demands on production, and thereby on the such as Boehringer Ingelheim, activate enormous team, differ. investments before a product enters the market. As soon as the medication is granted authorisa- ESP optimises established products tion, time becomes a significant success factor. Besides of local launches, Established Products For this reason, logistics and sales planning also (ESP) ensures that products already established commences in parallel to clinical studies. on the market can be manufactured efficiently on a sustained basis, in high quality and close to Boehringer Ingelheim’s medications are market- market. ed in 138 countries, which leads to complex demands on logistics, and fast logistics processes The complete production process is again tested are necessary. for efficiency and a competitive site is selected. Each step of the process and every plant detail Long before regulatory approval of a new medi- have to be transferred to the new site and then cation, our coordinated teams get to work on the adapted to the new local conditions. These can logistics and marketing schedules for the launch. vary considerably from the previous conditions. From storing semi-finished goods to purchasing A medication should, as much as possible, be blister packs, through to printing packaging ma- manufactured on a sustained basis in the region terial, every single step is gone through in detail where it will also be sold. That is the concept that and in several variants. ESP implements at Boehringer Ingelheim, be- [ supply chain management ] [ marketing & sales ] [ the patient ] Transportation and distribution Key account management Medicines for the benefit of humankind Interplay between production and logistics 139 our businesses Operations Launch & Strategic Products Launching a new product requires cutting-edge technology in each segment of the manufacturing process. LSP ensures reliable market supply of new and existing products for its global customers. The global division Launch & Strategic Transforming to large-scale production Products operates locations in the Within Operations, LSP owns the in- USA (Columbus, Ohio and Petersburg, terface to development through its Virginia), in France, Italy, Spain and Global Function Launch unit. Here, Germany, as well as in China. It is well- LSP receives newly discovered active positioned to meet the demands of a pharmaceutical ingredients (APIs) and global market. It is committed to pro- formulated drug products from R&D viding superior products and services which need to be transformed into a to its internal and external customers robust, large-scale chemical and phar- at competitive cost and on time. maceutical manufacturing process. Being at the interface between drug LSP consists of several important func- development and routine production, tions, which include product and proc- the acquired and growing technical ess development, manufacturing, qual- know-how and process understanding ity control and assurance, supply chain obtained with each new project ena- management, and operational process bles the team in Global Function excellence to continuously bring inno- Launch to become increasingly more vative thinking to our day-to-day work. effective and efficient in making a contribution to the future success of Boehringer Ingelheim. Pradaxa® launch “Prudent scenario planning and benefitting from what we learned from our multi-source launches ensured the fast availability of Pradaxa® for the US market. This was a result of an innovative supply chain approach which considered pre-approval on risk shipments.” An example of such coordination was the pradaxa® (dabigatran etexilate) launch. Already at the beginning of the development launch, colleagues from Operations were active members of the R&D sub-teams which were working on the development of the iris mann, launch manager pradaxa®, ingelheim, germany future drug pradaxa® and its readiness for transfer into the LSP manufacturing network. 140 Boehringer Ingelheim annual report 2010 A true highlight in 2010 was the rapid introduction of pradaxa® to the US markets within seven days after approval from the US Food and Drug Administration (FDA). This was a benchmark performance for a product that is “Behind the successful development of efficient synthetic routes are many years of hard work. It goes without saying that teamwork and interdisciplinary collaboration have been essential in our operational achievement.” manufactured in Europe but launched first in the USA. Such a transcontinental task was only possible through dr frieder gnad, global function launch, ingelheim, germany close and extremely flexible cooperation between the responsible LSP sites in Ingelheim, Germany and Columbus, Ohio in the USA. manufacturing location. The associated activities can be quite complex and More successful launches challenging. A highlight in 2010 was For mirapex er®, which received ap- the network expansion of the pradaxa® proval in the USA, we managed a rap- chemical production capability. The id-response process to include all last Petersburg, VA site was chosen to sup- minute changes to ensure readiness. ply significant volumes of intermedi- Our product twynsta®, which gained ates and bulk API for pradaxa®. approval in the USA in 2009, was also launched last year successfully after Flexibility, agility and teamwork be- Boehringer Ingelheim had received tween various functions and different marketing authorisation also for the sites characterised the transfer work European Union. from Ingelheim to Petersburg. A modular approach through multi-product In the face of strong international plants created the needed flexibility, competition, the need to ensure that allowing a rapid scale-up of volumes products are made as cost-effectively while minimising the risk associated as possible is more pressing than ever with dependence on a mono-site con- before. This important task is embed- cept. ded in the group’s Process Development. Dabigatran etexilate molecule attached in thrombin domains active binding site Innovation in Operations – production, quality & regulatory management Continuous optimisation efforts of the process development teams prepare the new API and drug product for its final transfer into full-scale commercial production. The transfers often include a site shift from the developing or launch location to a receiving Launch & Strategic Products 141 our businesses Operations “Fluid bed coating is a much more efficient and effective process than the drum coater process that was initially developed. The new process is a huge milestone for pharmaceutical production. We will continue to optimise further wherever we can to find every possible improvement, however small and without compromising the quality of our processes.” dr guido radtke, responsible for developing the process for pradaxa®, ingelheim, germany New ideas and technologies needed Launching a new product also means Launching a product often means in- quality in each step of the process. vestment in state-of-the-art or new The fruits of our efforts were high- technologies. In the centre of the lighted during the FDA inspection last launch and manufacturing site Ingel- year. The successful pre-approval in- heim is an impressive, new pharma- spection by the authorities is a man- ceutical production plant. It is here datory prerequisite for supplying the where pellets for encapsulation are US market. Our two German sites, produced for pradaxa®. The pellets Biberach and Ingelheim, were audited are coated with the API and then air- by the FDA in early 2010 to verify dried in a fluid bed coater. This unique regulatory compliance and current production is an in-house, tailor-made good manufacturing practice (cGMP) manufacturing process for the oral for our pradaxa® production process- thrombin inhibitor pradaxa®. es. The result of the inspection was “As a member of the project team, it was clear to everyone that Dabigatran is seen as a priority across the entire company. This project exemplifies the seamlessness and alignment among our manufacturing network. It highlights our ability to deliver high impact results in a short period of time.” The Boehringer Ingelheim FDA audit team celebrating the successful visit and review of the US authority FDA 142 Boehringer Ingelheim annual report 2010 vonzella vincent, project team member, petersburg, usa very gratifying. The FDA did not file spiriva® respimat® was launched in any relevant findings and the inspec- 15 additional countries, including Ja- tion report was finished without ob- pan and Spain. To anticipate and meet servations. The results of the evalua- market demand, investments of ap- tion demonstrated once again the proximately EUR 70 million have been high level of quality at work at Boe- made in an additional, highly auto- hringer Ingelheim, our understanding mated production facility. [ respimat® ] EUR 70 million Market demand investments From 10 million to 20 million Manufacturing capacity doubled of required processes and the competence and skills exercised in our Operations network. + 30 % Increased productivity More innovation Innovation at Boehringer Ingelheim can go beyond an API or drug product development. We aim to bring innovatiove technologies to the market. Such innovative technology can be found in our respimat® soft mistTM inhaler. The precision inhalation device is manufactured in Dortmund and the cartridge and medicine in conjunction with the LSP site Ingelheim. This environmentally friendly technology is characterised by long lasting, slowmoving nebulised product release which can easily be taken up by a patient. 2010 was a rather important year for respimat®. Boehringer Ingelheim microParts production location in Dortmund, Germany, the home of our respimat® technology Launch & Strategic Products 143 our businesses Operations Established Products The majority of the Boehringer Ingelheim production portfolio (80 %) is produced within the global internal and external production network of Established Products (ESP), which is present in all regions of the world and has the flexibility to react to local requirements. Established Products (ESP) (produces 80% of the production portfolio of Boehringer Ingelheim) Our main established products are quality-focused and providing robust viramune® and mobic® in Prescrip- manufacturing processes, we are able tion Medicines and the Consumer to deliver the right product at the Health Care (CHC) products under right time and the right place with the brands dulcolax®, buscopan®, good quality and at competitive costs. mucoangin®, mucosolvan®, bisolvon®, antistax® and pharmaton®. For the treatment of cramping pain [ viramune® ] For the combination treatment of HIV/AIDS Each ESP site consists of several important functions – manufacturing, [ buscopan® ] This product portfolio is based on engineering, quality, supply chain many different technologies: tablets, management and operational process capsules, liquids and injectables. excellence. Global production network In addition, we rely on robust supply The vision of the Established Prod- chain and risk management strategies ucts network is to be the first choice throughout the Boehringer Ingelheim to deliver globally competitive estab- sourcing network. Our business proc- lished products by providing innova- ess excellence mindset is not only fo- tive and fast solutions to new busi- cused on operational excellence, but ness opportunities. goes hand in hand with maintaining the required environmental and safety A clear mission of reliably delivering [ dulcolax® ] Laxative for use by constipation sufferers established products fulfilling our business partners’ (PM, CHC, Animal Health and also Industrial Customer Business (ICB)) expectations regarding quality, flexibility and speed, through our lean internal and external network. Key to our success is our world-class global production network, which is structured in regional clusters to serve specific market requirements alongside global hubs able to address all markets. Being flexible, cost-efficient, 144 Boehringer Ingelheim annual report 2010 standards all over the world. Network and product competitiveness Marketed products are continuously challenged during their life cycle with respect to cost, quality and optimal supply chains. The performance-orientated mindset Product competitiveness of the internationally experienced A clear priority of the management of people in the ESP network, and being mature products is the cost competi- globally located, enables ESP to act in tiveness of the product portfolio. A highly dynamic markets. Product Competitiveness Unit (PCU) was therefore created within ESP to Network competitiveness manage the continuous cost improve- In a global world with very fast ments regarding the ESP product port- changing business and regulatory en- folio and the product life cycle. The vironment, it is crucial to constantly unit’s responsibilities are: improve and adjust competitiveness of the Boehringer Ingelheim production • To continuously align a priority list sites with respect to quality, supply re- of products to be consistent with liability and costs. The Network Competitiveness unit is achieving these goals by: business needs • To define and implement cost improvement measures in collaboration with the local manufacturers in the • Continuously comparing the site’s performance with regional and international benchmarks • Defining, implementing and execut- Boehringer Ingelheim production network • To follow up and measure cost effects in a yearly cycle Boehringer Ingelheim do Brasil won the Industry of the Year award for the second year running for the involvement of their employees in meetings, working groups and lecturers at ISPE events, contributing to the development of the life science industries in Brazil. ing optimisation programmes following a holistic approach, covering management system, operational setup and mindset and behaviour • Defining specific initiatives, such as product transfer excellence or NBO projects together with business management Site competitiveness is complemented by product competitiveness. Established products / Competitiveness 145 Operations our businesses The Operations network Being flexible, cost-efficient, quality-focused and providing robust manufacturing processes, our Operations network is able to deliver high quality products at the right time and the right place at competitive costs. bedford, ohio, usa 20 columbus, ohio, usa petersburg, virginia, usa Productions sites in 13 countries mexico city, mexico • Contract manufacturing Injectables Inhalants Liquids Semi-solids Solids Pharmaceutical production Columbus, Ohio, USA • • • • • • • • • • • • • • Ingelheim & Biberach, Germany • • • • • • • • • • • • • St. Cugat, Spain • • • • • Yamagata, Fukushima* & Narita, Japan • • • Bedford, Ohio, USA Bogor, Indonesia Bogota, Colombia Itapecerica, Brazil Koropi, Greece Mexico City, Mexico Shanghai, China * Production discontinued after natural disaster (March 11, 2011) 146 Boehringer Ingelheim annual report 2010 bogota, colombia itapecerica, brazil Chemical production Biopharmaceuticals dortmund, germany Pharmaceutical production ingelheim and biberach, germany Medical device production vienna, austria blanquefort, france fornovo, italy malgrat, spain sant cugat, spain koropi, greece yamagata, japan fukushima*, japan narita, japan shanghai, china Fornovo, Italy Ingelheim, Germany Malgrat, Spain Petersburg, Virginia, USA • • • • • • • • • • • • • • • The Operations network Toxicology process safety Regulatory registration support Process development Synthesis API Blanquefort, France Phytochemicals bogor, indonesia • EUR 576m Investments in tangible and intangible assets in 2010 Chemical production • Biberach, Germany Vienna, Austria Mammalian cell culture Microorganism and Yeast fermentation Biopharmaceuticals • • • • • 147 our businesses Operations Expansion in the Asian markets Participating in the growth market Asia will be of utmost importance to Boehringer Ingelheim in the future. Stepping up our presence will bring opportunities for growth. The next step for Operations, and as ity Control department (QC). The main part of our corporate strategy, is the function of the PD is to focus on the expansion of our global presence. In production process optimisation and August 2010, Boehringer Ingelheim the corresponding technology transfer celebrated the inauguration of its new to partners. Similarly, the QC unit will Center of Competence (CoC) at the provide full analytical support for PD Waigaoqiao Free Trade Zone in Pu- for the testing and release of chemical dong, Shanghai, China. The CoC will products originating in China to en- support the optimisation of process sure that the quality of the products development for our active pharma- sourced will match Boehringer Ingel- ceutical ingredients and intermediates. heim standards for intermediate or In addition, the CoC will secure future API synthesis. supply chain options for Boehringer Ingelheim for potential intermediates. China - global core plant Our investments and commitment will At Boehringer Ingelheim Shanghai give us an increased presence in the Pharmaceuticals Limited (BISPL), the important growth region of Asia. mission is to expand and transform the current plant into a Boehringer Ingel- The CoC consists of a Process Devel- heim global core plant, focused on opment department (PD) and a Qual- manufacturing and packaging stand- New colleagues at Boehringer Ingelheim China – a science team in the new Center of Competence at the Waigaoqiao Free Trade Zone in Pudong, Shanghai, China 148 Boehringer Ingelheim annual report 2010 Members of the inauguration ceremony committee for our new Center of Competence at the Waigaoqiao Free Trade Zone in Pudong, Shanghai, China ard solids and liquids. This will phase During this period, the expansion will its supply from the current main focus take advantage of the opportunity to of China in the mid to long term to in- launch new products onto the market, clude the whole Far East. This must be either as imported then packed, or as delivered with a key focus on a lean, full production. flexible and cost-competitive operation. Over and above the expansion of the In additon to the pharmaceutical BISPL plant, opportunities exist to plant, we will also increase our activi- grow the whole operations network in ties to secure the sourcing of APIs China. from third parties in China to the Shanghai plant as well as the global network of Boehringer Ingelheim sites. Plant expansion project The plant expansion project (PANDA) will see the plant more than double in size and will accommodate nearly three times the staff as compared to present numbers. This will support the increased volume and changes to the portfolio for the China market up to and around the year 2020. It is expected that the current percentage of locally packed/ manufactured product, versus imported product, will switch from the current figure of 80% (47 million pack units) to 91% (220 million pack units) by 2015. Expansion in the Asian markets 149 our businesses Operations Growing with external partners – the Industrial Customer Business Our expertise in development and launch of new APIs or drug products is sought after around the world by our external partners and customers. Our unique technical capabilities and tion facilities offer unique expertise, superior product quality at Boehringer flexibility and a service mindset to Ingelheim are also offered to exter- our internal and external partners. nal partners. These contract manufacturing capabilities and services are The consolidated expertise in part of our technology and research- handling both, complex chemistry or driven organisation, offering clients demanding pharmaceutical formula- customised end-to-end solutions for tions assures each customer of a se- active pharmaceutical ingredients cure and robust, just-in-time supply (APIs) and respective drug formula- for their project. Key to our success is tions. our ability at Boehringer Ingelheim to deliver reliable product solutions Our comprehensive range of technolo- backed by analytical and regulatory gies enables us to develop drug sub- assurance along the product life cycle, stance (DS), drug product (DP), or inte- from the clinical phase through grated DS&DP solutions in our global launch to market supply. operations network for our clients. Methyldigoxin for external customers The sites can easily upscale from Methyldigoxin is an example of an al- small quantities to large demands of ready existing API being newly devel- API or final drug product. Our state- oped and launched for a group of cus- of-the-art development and produc- tomers. The API has a long-standing “Our integrated approach assures customers of the best possible time-to-market combined with reduced total costs of ownership.” takahiro shinagawa, manager of customer relations, nippon boehringer ingelheim, japan 150 Boehringer Ingelheim annual report 2010 Our pharmaceutical production plant in Columbus, Ohio, USA. as a valuable cardiac drug with a technology network, we were able to significant global market reach. develop a new synthetic route for the Boehringer Ingelheim was approached API. The first commercial shipments in 2010 with the idea of newly devel- to our customer are scheduled for oping the synthesis and market supply 2011. of methyldigoxin. The selection of Boehringer Ingelheim as the supplier was obvious, as the company already manufactures the related compound digoxin. Dr Franz-Dietrich Klingler, responsible in our Global Function Launch group for developing new synthetic methodologies The major hurdle to overcome in launching this known product was the lack of a modern, commercially viable and environmentally sound process. Operating within our strong Growing with external partners 151 our businesses Animal Health Animal Health The vision of our Animal Health business is to foster the health and well-being of mankind by contributing to an adequate supply of safe, nutritious food and by promoting the emotional and physical benefits arising from the human animal bond. 152 Boehringer Ingelheim annual report 2010 Marc Eichmeyer – a view from the lab Marc Eichmeyer, a leading scientist at Boehringer Ingelheim Animal Health, explains what is needed to develop a successful market-leading solution. What were the challenges in the Ingelvac al needed for the virus to replicate and cause circoflex® project? disease. This translates into a vaccine that is marc eichmeyer: “The early stages of the safe, due to the fact that it is a protein and not pre-development and development of ingelvac an infectious virus. The vaccine is also very circoflex® met with several challenges. There effective at generating a protective immune re- were no established models to evaluate the dis- sponse, given that it is the major protein ex- ease or vaccine prototype efficacy and there really pressed by the virus.” was very little known about the virus. The team was faced with several obstacles that would need Did the use of technology trigger questions from creative solutions.” the regulatory authorities? What role did innovation play? technology to generate an innovative vaccine was marc eichmeyer: “The opportunity to utilise marc eichmeyer: “Porcine circovirus type 2 not the last challenge for the development team. (PCV2) had been present in swine globally for Given the methods used to generate the prospec- years. Disease associated with PCV2 infection tive vaccine, the defined registration process was first reported in Europe and then in North would be another challenge that had not been en- America. It became known that problems were countered previously. Through extensive sup- the result of a disease complex in which an im- portive data and proactive team efforts, the con- mune stimulation event was necessary to trigger cerns of the regulatory authorities were addressed the PCV2 virus to replicate uncontrolledly. One and the vaccine registration was achieved.” of the first concerns was whether traditional vaccinology methods would work for a PCV2 vac- Which improvements have been made in cine. The PCV2 virus is very small and ubiqui- convenience and application of the vaccine? tous in nature. The nature of the virus itself marc eichmeyer: “Boehringer Ingelheim lends it to be resistant to physical or chemical has not only developed innovative products, neutralisation.” such as ingelvac circoflex® and enterisol® ileitis for control of disease in the swine indus- Which solutions were found to overcome these try, but has also developed delivery systems that hurdles? allow ease of vaccine delivery. For example, the marc eichmeyer: “This was an area of op- low volume and ease of administration are well- portunity to develop an innovative vaccine using received by customers. This translates into a pos- a virus-like particle of PCV2. The result is essen- itive reputation for Boehringer Ingelheim among tially a natural virus without the genetic materi- swine producers and veterinarians.” Animal Health 153 our businesses Animal Health Prevention is better than cure – innovative vaccines – milestones in animal health Boehringer Ingelheim Animal Health provides leading swine vaccine solutions. Boehringer Ingelheim Animal Health of target pathogens. The company fur- is the leading company in the field of ther believes that the early identifica- swine vaccines. The company is com- tion of emerging diseases, coupled mitted to continuously bringing inno- with tools for their control, will help vation to farmers, veterinarians, and to protect animals and farmers in the animals to assure that they have avail- future. able the best possible tools for the pre- The European Porcine Circovirus (PCV2) Research Award is presented annually in recognition of research proposals in the area of applied immunological PCV2 research. With this award, Boehringer Ingelheim Animal Health aims to promote further scientific progress to better understand and ultimately control this devastating swine disease. vention of diseases. At the same time, A growing world population makes there is growing public concern about the need for safe and nutritious food the widespread use of antibiotics in even more urgent. Sustainability is animals. one of the leading topics in public discussion and business decisions are The maxim “prevention is better than evaluated as to whether activities and cure” rightly endorses the idea that, tools are sustainable. Carbon foot- wherever possible, prevention is pref- print, animal welfare, residues and de- erable to therapeutic intervention. velopment of resistance are features Thus, the need for antibiotic treatment also relevant for the animal health can be reduced. As a result, vaccines business. are gaining significantly in importance for all species. This includes the inte- The value of vaccination is without gration of sophisticated molecular bi- doubt contributing to these require- ology and the decoding of the genome ments. Boehringer Ingelheim Animal Health provides leading swine vaccine solutions, such as ingelvac circoflex®, ingelvac mycolflex®, ingelvac® prrs mlv and enterisol® ileitis. Great atmosphere at the FLEXcombo® launch event for the European sales force in Ingelheim, Germany, in 2010 154 Boehringer Ingelheim annual report 2010 Animal well-being – a major topic on the animal health agenda There is no need for animals to feel unnecessary pain. That is why there should be solutions for effective pain relief. Boehringer Ingelheim Animal Health Originally, the concept of pain therapy has always been ambitious about de- was successfully transferred from veloping solutions to improve animal companion animals to lifestock. It sig- well-being, and not only with their nificantly improves the quality of life swine vaccines, where reduction of for animals. the number of injections means less stress for animals, as for example in the FLEXcombo® concept. Of course not all diseases can be prevented, but pain management is also of major concern for Boehringer Ingelheim Animal Health activities, being a major topic in animal welfare. There is no need for animals to feel unnecessary pain. That is why there should be solutions for effective pain relief. Boehringer Ingelheim Animal Health is one of the leading companies in the field of effective treatment of painful mastitis in dairy cows. metacam®, a very effective nonsteroidal anti-inflammatory drug (NSAID) for the treatment of chronic pain, is available for swine and cattle as well as for horses, cats and dogs. The speakers of the “3rd International Expert Forum on Animal Well-Being” in Barcelona, Spain Prevention is better than cure / Animal well-being 155 our businesses Animal Health Gaining knowledge through our global research network A growing global business requires a more diversified R&D environment to better serve customers in key markets and to expand the global network with scientific institutions to bring innovations to market. With our own research sites in North the global network with scientific in- America and Europe, as well as nu- stitutions necessary to continuously merous international collaborations in bring innovation to the marketplace. this field, Boehringer Ingelheim Ani- Consequently, we will accelerate the mal Health is a business where re- growth of our international R&D or- search plays an important role. ganisation, predominantly in vaccines. Prominent examples include the es- World distribution of our Animal health products. At six sites throughout the world, tablishment of the Boehringer Ingel- more than 340 highly qualified and heim Veterinary Research Center highly motivated scientists are in- (BIVRC) in Hanover, Germany, and volved in research and development, the Asian Veterinary Vaccine Research registration of new medicines and Center (AVVRC) in Shanghai, China. treatment methods. Most work closely with universities and private research In October 2010, Boehringer Ingelhe- institutions all over the world. im laid the foundation stone for its new research site in Hanover, Germa- At the same time, a growing global ny. The ultra-modern European vac- business requires a more diversified cine research center is being built in R&D environment to better serve cus- the vicinity of the internationally rec- tomers in key markets and to expand ognised University of Veterinary Medicine. In this attractive scientific environment, Boehringer Ingelheim will, “We are committed to making our innovative products globally available to as many patients as possible. In order to register our products successfully in emerging markets, we are gearing up for the country-specific challenges, thereby making sure that animals in emerging countries receive the best possible treatment.” as a first step, provide 50 new jobs for scientists in a diverse environment. In close cooperation with their academic colleagues, they will identify and develop innovative vaccines against livestock diseases. Furthermore, this research center will also enhance our dr suzin choi, regulatory affairs, boehringer ingelheim animal health, ingelheim, germany ability to further strengthen the relationship and collaboration with the major EU academic research institutes in the field of veterinary vaccines. 156 Boehringer Ingelheim annual report 2010 Manufacturing excellence globally – production at the highest level The Boehringer Ingelheim Animal Health organisation understands that it takes much more than new facilities to achieve manufacturing excellence. St. Joseph, Missouri, USA, plays a dis- and communicating in a global envi- tinctive role for Boehringer Ingelheim ronment,” says Dr Christian Klessen, Animal Health. It harbours the compa- Head of Global Operations at Boe- ny’s newly expanded GMP (good man- hringer Ingelheim Animal Health. ufacturing practice) certified production site in which a multitude of global His colleagues know that manufactur- vaccines are manufactured, including ing excellence is achieved through con- the swine health products ingelvac tinually increasing process knowledge, circoflex® and ingelvac mycoflex®. continually making process improve- This state-of-art plant is managed by a ments, and continually linking the way proactive team, that works in close con- we work. The organisation is convinced tact with the R&D team also represent- that in addition to reliable supply and ed on site. This connection guarantees high quality products, creativity, com- that the latest research findings are im- mitment, the desire to learn and the ne- plemented in the production processes cessity for change are indispensable to in the shortest possible time. sustainable growth and to remaining a strong competitor in the marketplace. The newly expanded vaccine manufacturing facility, one of the world’s “We are prepared for the future and largest in the animal health industry, our employees are proud to be part of features technologies for bacterial, a global ambitious team,” adds Dr mammalian and insect cells and rep- Klessen. “It is the culmination of the resents Boehringer Ingelheim Animal actions of the entire organisation, Health’s most recent example of excel- working together, that drives excel- lent international team work. The or- lence in manufacturing.” The new ganisation understands that it takes Boehringer Ingelheim Animal Health much more than new facilities to operations network is designed to en- achieve manufacturing excellence. sure maximum effectiveness in all “Investment in new facilities alone functions by taking advantage of syn- does not automatically provide a com- ergies within the other US sites, in petitive advantage; we also need qual- Fort Dodge, Iowa, as well as Guadala- ified, talented people organised in ef- jara, Mexico, and within Corporate fective structures, capable of working Operations. The newly expanded GMP (good manufacturing practice) certified production plant in St. Joseph, USA, plays a distinctive role for Boehringer Ingelheim Animal Health Gaining knowledge / Manufacturing excellence globally 157 our businesses Animal Health Building an industry leader – building on our strengths The year 2010 was characterised by further actions to enable Boehringer Ingelheim Animal Health to successfully face challenges in the future. Within the past five years, Boehringer cattle positions. “These achievements Ingelheim Animal Health has signifi- were an important step to successfully cantly improved its competitive and fi- compete in an industry that has been nancial position, while making dispro- characterised by rapid consolidation portionately large investments in R&D. in the past few years,” says Dr Joachim In 2010, Boehringer Ingelheim ranked Hasenmaier, Managing Director, 6th among the global animal health Boehringer Ingelheim Animal Health companies, with a market share of 5.9 (picture above). %. Its investment in R&D reached EUR 92 million on total sales of EUR 891 Boehringer Ingelheim Animal Health million. can look more optimistically than ever to its future. The company is in- [ our mission ] Based on our own research and the synergy with our group’s human pharmaceutical expertise, Boehringer Ingelheim Animal Health delivers leading solutions to prevent, treat and cure animal diseases. We have consciously decided to focus on specific diseases and animal species, such as small animals, cattle, pigs, horses and poultry, and strive to set standards and provide for unmet medical needs. We are driven by the desire to improve animal welfare as an integral part of a healthy future for mankind. This clearly reflects the tremendous vesting EUR 75 million in its manu- change Boehringer Ingelheim Animal facturing capacity in St. Joseph, Mis- Health has been going through in re- souri, USA. Furthermore, Boehringer cent years. The basis for this success Ingelheim is investing EUR 45 million was internal organic growth, mainly in its new European R&D centre for in the vaccine, but also in the pharma- vaccine research in Hanover, Germa- ceutical segment. A clear reflection of ny. This is an important step forward this success is ingelvac circoflex® – to building a truly global R&D infra- the first truly global launch which structure. A highly attractive interna- quickly translated into a leading glo- tional working environment will be bal brand. It has just recently been established for scientists who are strengthened by the addition of its striving to conduct state-of-the-art re- partner product ingelvac mycoflex®. search in this field. Furthermore, Boehringer Ingelheim Animal Health was able to acquire important assets of the former Fort Dodge business and successfully integrate them, thereby strengthening especially the North American market presence as well as the global pet and 158 Boehringer Ingelheim annual report 2010 Highlights in innovation 2010 Success in the marketplace is a consequence of our strength in continually developing innovative solutions against animal diseases. Another first – a flexible swine vaccine European countries. For the first time combination reduces stress and labour in Europe, protection against two of the Prevention of disease is better than most threatening swine diseases can be cure – this maxim leads to an im- achieved with a single injection instead provement in animal well-being as of up to four. This is a big step forward well as to enhanced efficiency and in animal welfare. The mixed use of sustainability. Vaccines are the most ingelvac circoflex® and ingelvac common tools in prevention. Today, mycoflex® is already registered and more and more pigs are vaccinated. To widely used in North America and Asia. allow an optimal vaccination scheme It is globally the first and only pro- for each farm situation, scientists from duct combination of its kind, another Boehringer Ingelheim Animal Health Boehringer Ingelheim first. developed an innovative adjuvant system for their swine vaccine: impran- Vetmedin® - driving innovation in flex®, which enhances the immune re- canine cardiology sponse and leads to a faster onset and vetmedin® continues to revolutionise longer duration of protection. Further- the treatment of congestive heart fail- more, vaccines based on impranflex® ure (CHF) in dogs as the most clinically are mixable without compromising validated treatment option in this cat- safety or efficacy. egory. More and more dogs and their A flexible swine vaccine combination reduces stress and labour.. owners are benefitting from the visible Today, more than 70% of commercially improvement in quality of life and lon- raised pigs are vaccinated against por- gevity that vetmedin® produces in cine circovirus disease (PCVD) and en- dogs with heart failure. The ground- zootic pneumonia (EP). Boehringer In- breaking quest™ study, confirming the gelheim’s ingelvac circoflex® is the superiority of vetmedin®, paved the global market leader in PCVD vaccines, way and continues to drive strong and ingelvac mycoflex® is the global- growth in all markets. The position of market leading product in EP vaccines. vetmedin® in veterinary cardiology Both are based on impranflex® and was further reinforced by a prestigious therefore are mixable. By July 2010, the group of veterinary cardiologists in EU Commission had approved the mix- the recently published American Col- ing of these two swine vaccines in 27 lege of Veterinary Internal Medicine The global vetmedin® trial, EPIC (Evaluating Pimobendan In Cardiomegaly), officially started in October 2010. Building an industry leader / Innovation 159 Animal Health our businesses (ACVIM) treatment consensus for ca- the world teamed up with Boehringer of combinations, protecting horses nine mitral valve disease (MVD), the Ingelheim to produce data that will un- against all major disease from the age most common heart condition in dogs. doubtedly help practitioners around the of four months onwards. The conven- According to the consensus, Vetmed- globe better manage dogs with heart ience of a vaccine solution to protect in® is considered an essential treat- disease. against up to eight diseases is a major ment for both the acute and chronic advantage especially if this can be phases of congestive heart failure due Vetera® – a breakthrough in equine achieved with only one injection. This to mitral valve disease in dogs. vaccines is a truly innovative idea behind vet- In 2010, Boehringer Ingelheim Ani- era®. Fewer injections also mean less Two additional major studies are un- mal Health successfully launched its potential for site reactions and less derway to assess the question both new vetera® vaccine concept in the stress for animals and veterinarians. practitioners and experts are asking: United States and in the Canadian does vetmedin® delay the onset of clin- market. In the equine segment, vet- Up to now, large combination vaccines ical signs of heart failure in dogs with era® is the first vaccine line which have been known to be highly reactive pre-symptomatic heart disease? There comprises all relevant antigens in one whilst providing only limited protec- are currently over 40 experts around shot. It also includes multiple choices tion. Two important steps in the production process have been incorporated to solve that problem: ultrafil™ Research and development of a new veterinary vaccine purification technology is applied, involving a series of purification processes that filter out all unwanted substances which could distract the immune system. This purification Pathogen Idea and concept Research process does not only minimise reactions but also improves the quality of the immune response. Furthermore, carbimmune™ is added Prototype Determination of dose, Development of duration of immunity and manufacturing process appropriate age for vaccination in the lab in the experimental/laboratory setting which is a proprietary adjuvant formulation designed to optimise protection and ensuring a rapid initial and a prolonged immune response after vaccination. Controlling influenza in poultry – Volvac® AI Field application of developed product Compilation of dossier for registration Registration approval Poultry is and will remain the fastest growing source of animal protein in large parts of the world, especially in • Registration approval is a prerequisite for commercial production and distribution of a vaccine • Duration of development process to license: 5–7 years • Research and development costs: 30–50 million Euros per vaccine the developing countries. Avian influenza severely affects the supply situation of animal protein if it is not conApplication trolled. A number of cases have reminded humankind in the recent 160 Boehringer Ingelheim annual report 2010 past that avian influenza is not only a Successful development of cattle threat to animals, but to humans as biologicals in the USA well. Several reports provide evidence In 2010, Boehringer Ingelheim Vet- that the virus has the ability to mutate medica Inc. had the greatest market and jump from, for example, birds (to share growth in cattle biologicals in pigs) to humans. In order to control the USA, establishing a leadership po- avian influenza, most of the countries sition in the respiratory and pasteurel- are trying to control the disease by re- la markets. The key product groups moving the infected animals. However, that have led to this growth are the this policy has its limitations and is ex- pyramid®, presponse®, and express®, tensively discussed from the animal vaccine lines. Another success factor welfare point of view as well. was the rapid integration of the sales, Disease control of avian influenza in countries such as Mexico and Egypt. professional service and marketing Preventive vaccination of the animals teams. Smaller territories allow for is the only other known approach to greater customer reach and increased controlling the disease. At its R&D frequency of customer interactions. and production site in Guadalajara, These interactions include face-to-face Mexico, Boehringer Ingelheim Animal visits between customers and sales rep- Health has successfully developed and resentatives, as well as consultations is producing two different vaccines, with the expanded professional service which are contributing to the control veterinary team. of avian influenza in countries such as Mexico and Egypt. The Fort Dodge portfolio, which was combined with the legacy Boehringer The quality of the volvac® avian influ- Ingelheim product line, afforded the enza range is uncompromisingly high NAFTA region the opportunity to posi- to achieve good immune response pro- tion these products to bring the greatest tection under difficult field conditions. value to our customers in terms of dis- Boehringer Ingelheim technical service ease prevention and therapy. The larger staff, together with their partners, are product portfolio gives Boehringer In- working with poultry producers in the gelheim a greater presence in the dairy field to secure the correct use and appli- industry, as well as a more complete cation of the vaccine. product offering for beef cattle producers. Boehringer Ingelheim is looking to In collaboration with international or- the future with confidence that it will be ganisations and scientific institutions, able to further expand its cattle product we assure the continuous efficacy of portfolio by strengthening its efforts in our vaccine. Boehringer Ingelheim R&D. Animal Health is thus offering a successful solution for the prevention of avian influenza, thus contributing to animal welfare. Innovation 161 www.boehringer-ingelheim.com www.boehringer-ingelheim.com 125 years more values 1885 – 2010 Business Year 2010 content 05 our company 06 Shareholders’ perspective 2010 10 Key aspects 2010 15 Corporate bodies 16 group management report 2010 18 Business and operating environment 31 Results from operations, financial position and net assets 35 Report on post balance sheet date events 36 Risk report 37 Report on expected developments 39 consolidated financial statements 2010 40 Overview of the major consolidated companies 42 Consolidated balance sheet 43 Consolidated profit and loss statement 44 Cash flow statement 45 Statement of changes in group equity 46 Notes to the consolidated financial statements 2010 64 auditor’s report Flap comparison of balance sheets / financial data 2001–2010 68 branded prescription medicines 68 Respiratory diseases 70 Diseases of the central nervous system 72 Cardiovascular diseases 76 Infectious diseases 76 Urological diseases 78 Cough and cold 78 Sore throat 80 Gastrointestinal diseases 82 Vitamins and supplements 82 Urological diseases 84 Leg vein health 84 Pain 86 Food producing animals – swine 88 Food producing animals – cattle 90 Companion animals – small animals 90 Companion animals – horse 78 consumer health care 86 animal health Content Top 4 products — Prescription Medicines Top 4 products — Consumer Health Care Our company Boehringer Ingelheim is a research-driven company dedicated to researching and developing, manufacturing and marketing pharmaceuticals that improve health and quality of life. Our businesses are Human Pharmaceuticals and Animal Health. We focus on innovative drugs and treatments that represent major therapeutic advances. Excellence in innovation and technology guides our actions in all areas. Our products have long been highly successful in the treatment of respiratory, cardiovascular, central nervous system, urological and infectious disorders. In addition, we have successfully advanced our research in thrombo-embolic, cardio-metabolic and oncological diseases. We have more than 42,000 employees in 145 affiliated companies and operate global networks of research and development (R&D) facilities at seven sites and 20 production sites in 13 countries. R&D expenditure in the business area Prescription Medicines corresponds to 23.8% of its net sales. Our headquarters is at Ingelheim, the German town where the familyowned company was founded in 1885. Our company 5 shareholders’ perspective 2010 Shareholders’ perspective 2010 christian boehringer chairman of the shareholders’ committee In 1885, our great-grandfather, Albert Boehringer, acquired a tartar factory in Nieder-Ingelheim, Germany. This was the start of his own, independent entrepreneurial activity and, at the same time, the embryo of today’s Boehringer Ingelheim group of companies. With gratitude, acknowledgment and humility we view what employees and shareholders of the participant generations have achieved since its foundation 125 years ago – a modern, highly innovative pharmaceutical company in family hands. To be outstanding in innovation and technology today remains, as 125 years ago, Boehringer Ingelheim’s leitmotif – Value through Innovation. Today, as then, the shareholders, set a reliable financial framework and create continuity in the strategic orientation for the family-owned Boehringer Ingelheim. We thereby establish the fundamental conditions for stability, profitability and sustainable growth of our family firm. What are the success factors of a family-owned company? For this, one can symbolise the company using the analogy of forestry and the construction of a tree: First, the company’s historical roots are the motivation and obligation for the shareholders. And what roots typically do – they give a tree hold. Translating this hold to the company are our values and the long-term strategy that we, the shareholders, together with the Board of Managing Directors, can transfer to this company. 6 Boehringer Ingelheim annual report 2010 Hold also comes from a closeness between the shareholders and the company. And, what is just as important for the protection of Boehringer Ingelheim as a family-owned company, is the unity lived out within the shareholder family. Nutrients for the tree, and thus the company, are the capital and retained profit which is again made available so that the the tree can grow strongly. We, the shareholder family, regard ourselves as trustees of the company’s sustainable success. We want to the company entrusted to us to remain for the benefit of our family, patients as well as our employees, for generations to come. The tree trunk is the employees who together with us wish to realise the same vision of developing and marketing medicines for people and animals. At the same time, the soul of this company, which truly drives us forward, is the well-educated and committed workforce who share and live these common values. These employees thereby contribute to Boehringer Ingelheim remaining an independent and successful family-owned company for the coming 125 years too. In researching and developing new medicines there is a further parallel with forestry. For the company, whose 125th jubilee we had the honour of celebrating in 2010, was planted by people long before as saplings. These are the basis for us to work our way forward. Our thanks are thus due to the third generation of the shareholder family and our pensioners for handing on to us, the fourth generation of the shareholder-family, a sound and successful company. The successes and therapeutic progress achieved so far are the visible results of the common efforts of everybody over generations. The shareholder family balances its own interests and company interests; it never puts its own interests above company interests – one of the strengths in Boehringer Ingelheim’s long history. All these values form part of the social canon to which we commit ourselves and which has built up the solid foundation of over 125 years. We want sustainable organic growth and have no commitment to short-term profit. With our Leitbild (stated guiding principles) we declare our support for two goals: one is that we want to serve humankind by developing medicines for people and animals; the other, that we want to do this as an independent company. Shareholders’ perspective 2010 7 shareholders’ perspective 2010 This independence was extremely helpful, especially during the latest economic crisis. With a focus on competitiveness and future viability, instead of maximising profit, we were better prepared for the crisis. In this phase, we were able as a family-owned company to plan quite differently, finding a sphere of future activity for all employees. Six key figures for the company are important for us as the shareholder family. These indicators are used by the Board of Managing Directors to evaluate Boehringer Ingelheim’s substance and prospects. First is the company’s market position. What determines the market position for us? It is the relative customer benefit and relative market share in therapeutic areas of relevance to us rather than world market share. With this we measure the company’s growth. Precisely through reliability and a good relation with physicians, patients and authorities Boehringer Ingelheim has been able to grow on a sustained basis as a well-established company. Innovation performance is a parameter that indicates to us how much value we create through innovation. With this we span the bridge between today and tomorrow. In concrete terms, this innovation performance at Boehringer Ingelheim reflects the share of net sales generated by new new products, the development and potential of our product pipeline, the continued renewal of processes, systems and methods, as well as structures and technologies. Of very special importance to our company’s future is its attractiveness to employees: the ability to be an attractive employer to talented people and to retain employees in the company. Precisely when a company is going through a phase of change, a family–owned company has the opportunity to show a special degree of respect and fairness to employees. Under finance parameters, the following are of particular importance: the productivity of work, as well as the productivity of capital. Just as important is liquidity which measures the company’s solvency. For us, this parameter still takes priority over profit. Regarding profit, we, as the shareholder family, attach value to achieving a minimum profit. This means how much profit we require to at least be able to provide medicines to the benefit of people and animals in the future too. The fourth generation regards the company for which it has been given responsibility as a duty. But it is also an opportunity and a huge challenge, as we can still develop values which we took over from the previous generation. 8 Boehringer Ingelheim annual report 2010 We, the fourth shareholder generation, understand ourselves to be trustees for the fifth generation. That means that we are now creating the preconditions that will give the fifth generation the opportunity to take over a healthy company. We thereby maintain our commitment to a long-term perspective. Boehringer Ingelheim serves humankind. Successful research and development of progressive and pioneering medicines has a long tradition at the company. A scientific department was established as early on as 1917 and successfully conducted in-house research and development. This focus on continuous innovation has ensured our current strong market position and opens the way to good opportunities in the future. As already explained, we feel, as shareholders, that we are trustees of our company’s lasting success. It is also this sustainability aspect which offers our family-owned company other opportunities for success than those open to companies listed on the stock exchange. For us, short-term success counts less than the long-term perspective. Only a high degree of stability provides the necessary space for innovation and creativity. Our employees today decide on tomorrow’s success. All are guarantors of our innovative strength and efficiency. They thereby contribute to Boehringer Ingelheim remaining an independent and successful company for the coming 125 years too. We, Boehringer Ingelheim’s shareholders, together with the Board of Managing Directors and our employees, will continue to work with heart and commitment for Boehringer Ingelheim’s success and to live our common values. signed by christian boehringer chairman of the shareholders’ committee Shareholders’ perspective 2010 9 key aspects 2010 Key aspects 2010 andreas barner, hubertus von baumbach, wolfram carius, engelbert tjeenk willink, (from left to right) the board of managing directors 10 Boehringer Ingelheim annual report 2010 In 2010, we had the pleasure of celebrating our company’s 125th jubilee. It is with joy and respect that we look back on what was achieved. For Boehringer Ingelheim, 2010 was a year of transition with many challenges which, thanks to the performance of all our employees, we were once again able to take on successfully. In 2010, an important foundation was laid for the future: now, it is time to take advantage of the opportunities of 2011. We are satisfied with what has been achieved and look ahead to the new tasks in 2011 with optimism and confidence. The consistent implementation of our long-term orientated strategy in order to secure sustainable company success was one of the central tasks in 2010. For the next ten years, our corporate strategy envisages Boehringer Ingelheim successfully researching, developing, producing and marketing innovative medicines for patients worldwide. We will reach this goal if we continue to concentrate on our organic growth supported by inlicensing, selected acquisitions and alliances. In doing this, one of the main goals is the international positioning of the company with new innovative medicines in indications in which there is actual therapeutic need, and also in areas in which Boehringer Ingelheim has so far not been represented. Our ability to achieve this has been given enduring proof by our employees in Research, Development and Medicine, with the registration of the innovative coagulation inhibitor pradaxa® in the new indication prevention of stroke in patients with atrial fibrillation. pradaxa® in stroke prevention not only achieved a medical breakthrough for the first time in over 50 years, but also represented a therapeutic simplification and therapeutic progress. The clinical development of our substances in the indications diabetes, oncology and hepatitis C was also highly successful. Clinical phase III studies were completed for the oral diabetes medicine linagliptin. After the international submission in 2010, we expect to receive the first approvals by mid-2011. Key aspects 2010 11 key aspects 2010 These successes in research and development are further important milestones in our 125-year history. In 2010, we have for the first time worked with a new organisation structure that, while retaining our values and corporate culture, will help the company to achieve a better alignment, higher productivity and more flexibility. In the conjunction with the implementation of the corporate strategy, proactive change and talent management was established within the company in order through targeted employee development to better face the challenges of the future. As in the past, it will also be true in the future that continual but steady changes will be necessary in order to be equipped for the future at any time. And here it is important for us to have a constant in the future – our values and culture of togetherness – borne by a family-owned company. A good starting point After a 10-year period of above-market growth, Boehringer Ingelheim’s business development in 2010 was, as expected, not easy, due to the planned loss of exclusivity for important products, but the results were nevertheless satisfactory overall. Net sales of the group of companies were EUR 12,586 million. With a decline of 1.1% in net sales, this was only slightly below the previous year level. Operating income, at EUR 1,896 million, was, as expected, below the previous year level, as was the return on net sales of 15.1%. Sustained success and securing the company’s independence long term are, however, more important to us than optimising short-term profit. Prescription Medicines Prescription Medicines form the main focus of our commercial activities and the core of our Human Pharmaceuticals business. Net sales of EUR 9,702 million represented a – 3.5% decline compared to the previous year. The loss of exclusivity on flomax® and mirapex® in the USA, as well as the ending of the agreement for duloxetine (cymbalta®/xeristar®), depressed net sales. Adjusted for these extraordinary components, business performance was, nevertheless, quite gratifying, as shown especially in the positive growth rates of our established products spiriva®, micardis® and combivent®. 12 Boehringer Ingelheim annual report 2010 Consumer Health Care Consumer Health Care is our business in over-the-counter medications. Despite a declining market in Japan, as well as a low-turnover cold season at the beginning of the year, we were able to register net sales of EUR 1,318 million, representing growth of + 4.5%. Industrial Customer The Industrial Customer business showed negative development due to the effects of the economic crisis. Net sales dropped to EUR 638 million, a decline of – 18.7% compared to the previous year. Animal Health Our Animal Health business, also reflecting the successful integration of parts of the Fort Dodge animal health business, once again proved extraordinarily successful and its net sales rose to EUR 921 million, an increase of + 51%. Thanks to the success of swine vaccines, solid progress was achieved in the strategic core segments. New products – top priority In 2010, Boehringer Ingelheim applied for the registration of new and medically important products. They were the slow-release formulations of viramune® and sifrol®/mirapex®. These were already registered in a number of countries and have already initiated a growth phase. Thanks to the new products, Boehringer Ingelheim will again commence a new period of growth in 2011 – first with pradaxa®, subsequently also with substances in the diabetes area, and, in coming years, in oncology and other therapeutic areas. The successful launch of these new products will be our top priority in 2011 – all disciplines within the company will be contributing – and we are convinced that our organisation is well-equipped for this challenge. Outlook Our strategy for the next 10 years foresees Boehringer Ingelheim continuing to research and develop successful, innovative medicines for patients worldwide. We will achieve this goal if we continue to concentrate on our organic growth, supported by inlicensing and selected acquisitions and alliances. Key aspects 2010 13 key aspects 2010 Within the framework of the corporate strategy, Boehringer Ingelheim and the pharmaceutical company Eli Lilly and Company in 2011 concluded a global agreement on the joint development and commercialisation of their diabetes portfolios in mid and late-stage development. With this intended long-term alliance, which is broad and strategic in the therapeutic area diabetes, Boehringer Ingelheim combines its row of innovative products in the pipeline with Lilly‘s expertise in diabetes marketing and its late-stage portfolio. In addition in 2011, Boehringer Ingelheim has from Amgen Inc. acquired a development and production site for biopharmaceuticals in Fremont, California, USA. The Amgen site in Fremont comprises a modern production plant, development facilities and laboratories for process development. Boehringer Ingelheim is one of the leading companies in the contract manufacturing of biopharmaceuticals. The technical know-how and modern facilities in the biotechnology center in the San Francisco Bay area will enable Boehringer Ingelheim to further expand its global contract manufacturing business, including activities in the field of process development and production of new biological active ingredients. We will also address the future in our Animal Health business. With the laying of the foundation stone for the new European Animal Research Center in Hanover, Germany, we took a further step in the long-term expansion of this exceptionally successful business. Everything that we undertake will also in 2011 demand a great deal of effort, commitment and creativity from all of us. A precondition is our readiness, together with all employees, to actively deploy our full working capacity in this process. This distinguished us from oters in the past and justifies our optimism for the future. 14 signed by signed by andreas barner hubertus von baumbach signed by signed by wolfram carius engelbert tjeenk willink Boehringer Ingelheim annual report 2010 Corporate bodies Shareholders’ Committee Board of Managing Directors christian boehringer prof.* dr dr andreas barner Chairman of the Shareholders’ Chairman of the Board Committee Corporate Board Division Pharma Research, Development and Medicine albert boehringer hubertus von baumbach christoph boehringer Corporate Board Division Finance and Animal Health erich von baumbach jr. prof. h.c. dr wolfram carius ferdinand von baumbach Corporate Board Division Human Resources and Operations dr mathias boehringer engelbert tjeenk willink Corporate Board Division Advisory Board Marketing and Sales Human Pharma prof. dr michael hoffmann-becking Attorney at Law, Düsseldorf Chairman of the Advisory Board egbert appel Trustee, Martin Hilti Family Trust Member of the Board and Managing Director Hilti Foundation dr andreas kreimeyer Member of the Board of Executive Directors and Research Executive Director BASF SE prof. dr fredmund malik Chairman of the Board Malik Management Zentrum St. Gallen AG *Republic of Austria Key aspects 2010 / Corporate bodies 15 group management report 16 Boehringer Ingelheim annual report 2010 2010 Group Management Report Business and operating environment 18 Results from operations, financial position and net assets 31 Report on post balance sheet date events 35 Risk report 36 Report on expected developments 37 Group Management Report 2010 17 group management report Group management report 2010 Business and operating environment nomic upturn in Germany was accompanied by a high level of employment. The number of people in employment reached a new high of around 40.5 million, while the number of unemployed was temporarily re- Whereas 2008 and 2009 were shaped by the consequenc- duced to fewer than 3 million. The German govern- es of the financial and economic crisis, 2010 was influ- ment expects this positive trend to continue in 2011, enced by a recovery in the global economy. The world- although it has forecasted slightly lower economic wide economy grew by 3.9 % in 2010. In particular, the growth of 2.3 %. substantial rise in global trade and strong growth in emerging countries made a significant contribution to The inflation rate in Germany (measured using the the recovery of the markets in 2010. China achieved eco- consumer price index) was around 1.1 % on average in nomic growth of around 10 %. The economy of the entire 2010. This was a considerable increase on the previous Asia/Pacific region grew by 9.3 % last year. year, although it was still at a relatively low level in a multiple year comparison over several years. Looking For 2011, the World Bank expects global economic at Europe as a whole, we can see that inflation rates in growth to slow slightly to about 3.3 %, mainly owing to the expiry of economic stimulus packages set up by various governments during the financial and economic Net sales by businesses (in millions of EUR) crisis. Worldwide growth will be bolstered again in 2011 by above-average growth in emerging and developing countries (expected value around 6 %). However for large industrialised nations, the World Bank expects Prescription Medicines 9,702 10,058 2010 2009 an increase of only 2.4 % in economic output in 2011. Consumer Health Care In the eurozone, a very mixed picture emerged in 2010. The countries with large budget deficits in particular are still regarded as problematic. The restrictive finan- 1,318 1,261 2010 2009 Biopharmaceuticals cial policy had a braking effect on economic recovery in some countries, particularly in the second half of 2010 2009 422 553 the year. As a result, current estimates assume economic growth of only 1.7 % in 2010 and around 1.3 % in 2011 for the eurozone. Pharma Chemicals and Pharmaceuticals Production 2010 2009 216 233 In contrast, the German economy grew substantially in 2010, achieving positive economic growth of 3.6 %. Following the crisis year of 2009, the positive impetus in 2010 came mainly from stronger foreign trade and an appreciable increase in domestic trade. The eco- 18 Boehringer Ingelheim annual report 2010 Animal Health 2010 2009 921 610 The global pharmaceutical market showed stable de- Net sales by regions (in millions of EUR) velopment in 2010. At a growth rate of 4 %, however, worldwide market growth was slightly lower than in the previous year (6.5 %). This development was influenced by the loss of exclusivity for major pharmaceutical products, which was not offset by the introduction of product innovations. Furthermore, health policy Europe Americas 5,724 6,257 2010 2009 4,089 3,980 2010 2009 measures in Europe and the USA had a significant Asia, Australasia, Africa (AAA) 2,773 2010 negative impact on the pharmaceutical sector, particularly in established industrialised nations, and led to 2,484 2009 drops in sales. Growth in the worldwide pharmaceutical market was therefore largely driven, as expected, by high growth rates in emerging markets (including China, Brazil, Russia, India, Mexico and Turkey). Particularly the Chinese pharmaceutical market is showing the various European countries vary considerably. The dynamic growth. European Central Bank is pursuing the target of an inflation rate of under 2 % (based on the eurozone). Al- For 2011, market researchers are anticipating slightly though this level was exceeded occasionally, the aver- higher growth once again for the global pharmaceuti- age inflation rate for the eurozone in 2010 was 1.6 %, cal market, within a range of around 5 % to 7 %. How- well below this threshold. ever, the experts expect growth rates to continue to vary widely on the different pharmaceutical markets The foreign exchange markets showed considerable around the world. volatility in the last financial year, with the US dollar and the Japanese yen, currencies of importance to Business at Boehringer Ingelheim Boehringer Ingelheim, developing along different For the Boehringer Ingelheim group of companies, the lines. In relation to the US dollar, the EURO fluctuated year 2010, in which we celebrated our 125th anniver- over the course of the year between 1.19 USD/EUR sary, was a year of transition to a new growth phase. and 1.45 USD/EUR . At the beginning of the year, the Against the background of the loss of exclusivity, prep- exchange rate against the US dollar still stood at 1.43 arations for the launch of new products and regulatory USD/EUR, but it then dropped significantly in the first changes on the markets, as expected, Boehringer Ingel- half of the year to a low of 1.19 USD/EUR in June, heim did not achieve the high growth rates of previous before rising again in the second half of the year and years. As announced in advance, Boehringer Ingelheim closing in 2010 at 1.34 USD/EUR. recorded significant shortfall in sales as a result of the loss of exclusivity for key sales drivers on the US phar- The exchange rate of the EURO against the Japanese maceutical market and the associated competition YEN also declined significantly in the first half of 2010; from generic drugs (around EUR 1.4 billion after ad- however, in contrast to the exchange rate with the US justments for currency effects). Adjusted for this one- dollar, this trend continued in the second half of the off effect, the development of business in 2010 was year. The 2010 financial year began at an exchange rate positive. Driven by the growth in the rest of our range of 134 JPY/EUR (also the annual high). The annual low of prescription medicines (around +5.5 % after adjust- of 106 JPY/EUR was reached in September at the end of ments for currency effects), the successful launch of 2010, the exchange rate stood at 108 JPY/EUR. new products and the growing Animal Health business Business and operating environment 19 group management report we were almost able to compensate for the anticipated products and production capacity into our Animal drop in sales. Boehringer Ingelheim generated sales of Health business and the integration of the new em- EUR 12,586 million in 2010. With the slight decline of ployees into the Boehringer Ingelheim group of com- – 1.1 %, sales were down only marginally on the previ- panies progressed as planned. ous year’s figure of EUR 12,721 million. As in previous years, Boehringer Ingelheim’s strategic Lasting success and ensuring the company’s independ- focus will remain on in-house research and development ence in the long term are more important to us than of innovative medicines in future. We are thus concen- short-term optimisation of results. Boehringer Ingel- trating on our own strengths and laying the foundations heim is to enter a new phase of growth in 2011 with for sound and sustainable organic growth. In areas new medicines and a well-filled product pipeline. where we require new expertise or if suitable-looking market opportunities arise, Boehringer Ingelheim will Last year, we worked for the first time in a new or- also make use of opportunities for external growth. ganisational structure, which will significantly strengthen us for the future and will help our company Owing to the effects described above, there was a slight to achieve both greater market penetration and higher shift in the regional distribution of our sales compared productivity and flexibility. with the previous year. As expected, the Americas region recorded a drop in sales of 8.5 % last year, owing As part of our corporate strategy, we are focusing our to the loss of exclusivity, which primarily affected the business activities on the successful development and US market. The positive development of the rest of the market launch of our promising product pipeline. product range could not fully compensate for the de- Against this background, Boehringer Ingelheim reached cline in sales in this region in connection with the loss an amicable agreement last year with Eli Lilly to end of exclusivity. However, the Americas region is still our existing collaboration in connection with duloxe- Boehringer Ingelheim’s largest region in terms of sales, tine (cymbalta®/ariclaim®). Eli Lilly reacquired the accounting for around 46 % of our total sales. In line exclusive worldwide development and marketing with expectations, the Asia /Australasia /Africa region rights to duloxetine for all indications and is to contin- registered the strongest growth year-on-year, at a ue marketing duloxetine through its own organisation. pleasing 11.6 %. As a consequence, around 22 % of our total sales came from this increasingly important re- Since 2001, Boehringer Ingelheim has been the ma- gion. In Europe, solid growth of 2.7 % was achieved, jority shareholder in SSP Co. Ltd. (SSP), a long- giving this market a share of 32 % in total sales. established Japanese company. In 2010, Boehringer Ingelheim acquired the outstanding shares of SSP, a Net sales by region (in millions of EUR) 2010 2009 Change Americas 5,724 6,257 — 8.5% in the company. In doing this, Boehringer Ingelheim is Europe 4,089 3,980 + 2.7% showing a clear strategic commitment to the Japanese Asia, Australasia, Africa (AAA) 2,773 2,484 + 11.6% listed company, as part of a public tender offer followed by a squeeze out, and now owns 100 % of shares market. Sales in our Human Pharmaceuticals business were After taking over parts of the Animal Health business down around 4 % year-on-year in 2010. This develop- of Pfizer/Fort Dodge at the end of 2009, Boehringer ment was expected and is mainly due to the loss of Ingelheim began implementing a long-term integration exclusivity for the prostate drug alna®/flomax® and concept last year. The incorporation of the acquired the Parkinson’s disease product sifrol®/mirapex®, 20 Boehringer Ingelheim annual report 2010 along with competition from generic drug manufactur- loss of exclusivity, which confirms our strategy. On the ers for the anti-hypertensive medicine catapresan® basis of the positive development of our established TTS in the USA. Added to this were the terminations of products and the promising product innovations in our the contractual agreement for duloxetine (cymbalta®/ pipeline, we will embark on a new growth phase fol- xerista®) and a licensing agreement for Herceptin lowing the transition year of 2010. with Roche/Genentec. With adjustments for these oneoff factors, the development of business was very posi- Our employees and positive results in research and tive, which is reflected above all in the positive growth development form the basis for the continuation of our rates for our established products spiriva®, micardis® long-term growth. On the strength of the success of and combivent®. In addition to the established prod- our research and development activities, we deliberate- ucts, the new launches pradaxa® and twynsta® also ly maintained our high levels of investment in R&D in made a positive contribution to sales development in the transition year of 2010. At EUR 1,896 million, the Human Pharmaceuticals business. At EUR 11,665 Boehringer Ingelheim’s operating income correspond- million, the Human Pharmaceuticals business accounts ed to a return on net sales of 15.1 %. for 92,7 % of Boehringer Ingelheim’s total sales. Within the Human Pharmaceuticals business, EUR 9,702 mil- Key figures (in millions of EUR) lion relates to Prescription Medicines (– 3.5 % com- Net Sales pared with the previous year) and EUR 1,318 million Operating income to our Consumer Health Care business (+ 4.5 % com- Return on net sales 2010 2009 Change 12,586 12,721 — 1.1% 1,896 2,239 — 15.3% 15.1% 17.6% pared with the previous year). Research and development (R&D) The Animal Health business also performed very suc- In line with Boehringer Ingelheim’s corporate mission cessfully in the 2010 financial year. With sales of EUR statement, our primary objective is to develop inno- 921 million, the share of this business in our total sales vative medicines and treatments for diseases that can- has increased to a substantial 7.3 %. This positive not yet be treated in a satisfactory manner. In this development is based both on organic growth (particu- way, we hope to help people affected by these diseases. larly for our pig vaccine ingelvac circoflex®) and on We are constantly striving to make an important con- the products acquired from Pfizer/Fort Dodge at the end tribution in areas where the need for treatment is high of 2009. The sales of our Animal Health business have and to attain a leading position in the major indication thus risen by 51 % compared with the previous year. areas. In order to achieve this goal, we ensure that we are always up-to-date with strategically important Net sales by businesses (in millions of EUR) 2010 2009 Change Prescription Medicines 9,702 10,058 — 3.5% Consumer Health Care (CHC) 1,318 1,261 + 4.5% Biopharmaceuticals 422 553 — 23.7% Pharma Chemicals and Pharmaceutical Production 216 233 — 7.3% Animal Health 921 610 + 51.0% technologies and systematically research new key technological approaches. Boehringer Ingelheim’s successful research and development activities and our associated innovative strength have always provided the basis for our positive development in previous years. This will not change in the years to come. In-house research and Overall, we are satisfied with the development of our development will remain a top priority in the future. sales in 2010, given the difficult general conditions. It represents the cornerstone of the Boehringer Ingel- We consider it a success that we were able to compen- heim group of companies and will continue to be our sate almost entirely for the drops in sales caused by main growth driver in future. Business and operating environment 21 group management report In 2010, we employed an average of 7,093 staff at body technology, which could be used in the fields of our large R&D sites in Germany (Biberach), the USA oncology, respiratory diseases, cardiometabolic disor- (Ridgefield), Austria (Vienna) and Canada (Laval). ders and infectious diseases. In addition, we signed a With a total investment of around EUR 2,453 million cooperation and licensing agreement last year with the in research and development activities, Boehringer In- Austrian company f-star Biotechnologische Forsc- gelheim once again significantly increased its invest- hungs- und Entwicklungsgesellschaft for the develop- ment in this field compared with the previous year. In ment of pharmaceuticals based on antibodies. As part total, Boehringer Ingelheim thus invested 19.5 % of of this agreement, Boehringer Ingelheim can apply the group sales in the research and development of new modular technology developed by f-star for the pro- medicines in 2010. duction of antibodies and functional antibody fragments against up to seven target structures from vari- At Boehringer Ingelheim, in-house research and devel- ous therapeutic areas and can use it to develop new opment activities are a high priority. In addition, we medicines. A cooperation agreement with German- regularly supplement our product range with targeted based company Priaxon AG was launched last year for licensing and cooperation agreements. the research and development of innovative cancer treatments. The aim is to jointly develop an mdm2-/ In the last financial year, for example, we entered into p53 inhibitor against various types of tumours. We a long-term cooperation agreement with 4-Antibody concluded a worldwide cooperation agreement with AG (Switzerland) for the development of fully human, the US company Neurocrine Biosciences for the re- therapeutic antibodies for a series of targets in various search and development of the GPR119 agonist for the indications. 4-Antibody AG is to use its proprietary treatment of type 2 diabetes. The mechanism aims to Hu-PAC(R) and Retrocyte Display(R) technologies to stimulate the production and secretion of the body’s develop fully human antibodies against new targets own insulin and thus represents an addition to our designated by Boehringer Ingelheim. We have conclud- own diabetes pipeline. Furthermore, Boehringer Ingel- ed a cooperation agreement with the US company heim signed an agreement with the engineering and Micromet Inc. for the research, development and mar- technology company VTU regarding cooperation in keting of a new BiTE antibody for the treatment of technological development. As part of this agreement, multiple myelomas. Although some progress has been Boehringer Ingelheim will obtain access to VTU’s own made recently in the treatment of multiple myelomas, expression system (methodology for protein expression). this disease is still regarded as being largely untreatable. Boehringer Ingelheim also entered into a coopera- Boehringer Ingelheim set up its own venture capital tion agreement with the company Macrogenics Inc., fund last year – the Boehringer Ingelheim Venture also based in the USA. The aim of this collaboration is Fund GmbH (BIVF). This fund will invest in biotech to research, develop and market a DART™-based anti- and start-up companies that research promising ap- Research and development 2010 2009 2008 2007 2006 Expenditure in millions of EUR 2,453 2,215 2,109 1,900 1,574 19.5 17.4 18.2 17.3 14.9 2,306 2,100 2,016 1,818 1,501 – as % of net sales Prescription Medicines expenditure in millions of EUR – as % of Prescription Medicines net sales Average number of employees Investments in tangible assets (without investments in infrastructure) in millions of EUR 22 Boehringer Ingelheim annual report 2010 23.8 20.9 22.1 21.0 18.1 7,093 6,934 6,788 6,405 6,003 83 125 145 157 125 proaches to treatment and technologies, in order to over, the enormous restrictions associated with the promote innovation in medical science. The initial vol- standard treatment used until now are no longer nec- ume of funds to be invested by Boehringer Ingelheim essary with pradaxa®. Atrial fibrillation is the most totals EUR 100 million. The first investments were common type of arrhythmia, affecting approximately made in the last financial year. 1 % of the total population and 10 % of those aged over 80. They have an increased risk of blood clots and are At the four large research sites of Boehringer Ingelheim, therefore up to five times more likely to suffer a stroke. referred to above, we have focused our research and de- pradaxa® therefore represents innovation in an area velopment activities on the following therapeutic areas: where the need for treatment is high and is simultaneously an excellent example of our mission statement • Respiratory diseases “Value through Innovation”. • Immunology • Infectious diseases In October last year, pradaxa® received the Galenus • Cardiometabolic disorders (cardiovascular and von Pergamon prize in the “Primary Care” category, metabolic diseases) a prize for top-level pharmacological research. This • Neurological diseases award confirms once again the highly innovative na- • Oncology ture of pradaxa®. In April 2010, Boehringer Ingelheim was selected as one of the three finalists for the “Ger- In the last financial year, Boehringer Ingelheim once man Innovation Award” in the category of large com- again made significant progress with clinical research panies for the development of dabigatran etexilate. In into new substances. In particular, we should highlight September 2010, German GPs, practitioners and inter- our innovations in the field of cardiometabolic disor- nal specialists chose the medicine as the “most innova- ders with our substance dabigatran etexilate (pradaxa®) tive product of 2010” in a survey conducted by the pe- and in the field of type 2 diabetes with our active in- riodical “PharmaBarometer”. The clinical results of the gredient linagliptin. study, the market approvals and the numerous awards that have been received attest to the innovative strength In October 2010, our new product pradaxa® (dabigat- of pradaxa® and confirm once again the success of our ran etexilate) obtained approval in the USA and Cana- research and development strategy. da for the indication of the prevention of strokes in patients with atrial fibrillation. Further approvals are Metabolic diseases have also been among the key areas expected for this innovative oral direct thrombin in- of research and development at Boehringer Ingelheim hibitor in 2011, including in Japan and Europe. for many years. Diabetes is one of the indications on which our global research network focuses. Almost pradaxa® has already been approved for the preven- four million people aged between 20 and 79 are esti- tion of venous thromboembolism (VTE) following hip mated to have died of diabetes or related complications and knee replacement operations in 75 countries since in 2010. Around 50 % of people with diabetes die of 2008. The approvals that have now been granted for cardiovascular diseases and over 8 % of kidney failure. the indication of the prevention of strokes represent a Within our research and development of new active in- therapeutic breakthrough from a medical point of view. gredients for diabetes with innovative mechanisms of In the USA, this is the first approval for an oral coagu- action, our DPP-4 inhibitor linagliptin is the most ad- lation inhibitor for over 50 years. Treatment with vanced active ingredient in Boehringer Ingelheim’s pradaxa® will improve the lives of many patients, as it diabetes range in terms of development. Linagliptin is offers a high level of protection against strokes; more- being developed as a tablet to be taken once daily for Business and operating environment 23 group management report the treatment of type 2 diabetes (as a monotherapy) and non-small-cell bronchial carcinoma, breast cancer as a combination therapy. The phase III data presented and carcinoma of the head and neck). Our substance in 2010 for linagliptin as part of the 70th Scientific afatinib is an innovative oral tyrosine kinase inhibitor, Sessions of the American Diabetes Association (ADA) the effect of which is based on the irreversible inhibi- showed a substantial, lasting and clinically significant tion of two tyrosine kinases involved in the growth reduction in the blood glucose level. The phase III ap- and spread of the tumours. proval studies also showed a very favourable safety profile for linagliptin, with an overall rate of adverse Lung cancer is the most common type of cancer world- concomitant symptoms at the same level as a placebo. wide and also the most common cause of death linked Moreover, linagliptin showed no effects on body to cancer. Boehringer Ingelheim made further progress weight and no increased risk of interactions with other with development in this area in 2010. Our substance pharmaceuticals. What is particularly significant is afatinib is currently being tested in the treatment of that no increased risk of hypoglycaemia occurred in lung cancer as part of the LUX-Lung clinical trial pro- connection with linagliptin as a monotherapy or in gramme. combination with metformin or pioglitazone. At the autumn 2010 conference of the German Diabetes As- This programme includes a series of studies, most of sociation in Berlin, Boehringer Ingelheim presented which are now in clinical phase III. further study results, which supplemented the results already known from the phase III study programme. In the clinical phase III study LUX-Lung 1, the study The new data shows a significant and lasting reduction results last year confirmed, for example, the activity and in the blood glucose level and also demonstrates that clinical benefits of afatinib in advanced, non-small- linagliptin could be used at an early stage for all pa- cell bronchial carcinoma for the overall population. tients with type 2 diabetes without adjusting the dose, Patients treated with afatinib showed significantly even with patients who have kidney damage, as it has a higher rates for tumour control or reduction in the size unique pharmacokinetic profile among DPP-4 inhibi- of the tumour than patients who received a placebo. tors. Boehringer Ingelheim is proud of these positive These results were confirmed by an independent party. development results and expects to receive the first The study results also showed that the active ingre- market approvals for linagliptin over the course of 2011. dient afatinib leads to a statistically significant improvement in the central symptoms associated with bron- In the field of oncology, Boehringer Ingelheim has de- chial carcinoma (cough, dyspnoea and pain). In voted itself to the research and development of innova- addition, afatinib significantly delayed the time taken tive active ingredients for the treatment of cancer, for the cough, dyspnoea and chest pain to reduce. which will mean significant therapeutic benefits and an improvement in the quality of life for patients. This In September last year, we also announced the beginning commitment is based on scientific progress in the de- of a clinical phase III study in which afatinib is to be velopment of a series of targeted treatments for solid tested in the treatment of patients with advanced tumours and haematological cancers with a high treat- breast cancer. Breast cancer is the most common cause ment requirement. of cancer-related deaths in women worldwide, with over 411,000 deaths every year. The clinical phase III Our comprehensive and robust LUX study programme study, which is labelled “LUX-Breast 1” and is of rele- consists of over ten studies taking place worldwide vance to approval, is the first to assess afatinib in the to assess our active ingredient afatinib (BIBW 2992) in treatment of breast cancer. This study expands the the treatment of various solid tumours (including potential range of applications for which Boehringer 24 Boehringer Ingelheim annual report 2010 Ingelheim’s oncology pipeline could be suitable. It thus tor) with Ribavirin reduces the viral load of previously represents an important milestone on the path towards untreated HCV patients to unquantifiable levels. Dur- extending our developments in oncology beyond lung ing the study, the new protease-polymerase inhibitor cancer. combination produced a rapid virological response even without PEGy-lated Interferon. At Boehringer In- Alongside afatinib, BIBF 1120 (planned trade name gelheim, we are proud of our research findings in this vargatef®) is the second leading substance in the on- area. Therapy foregoing the use of interferon and its cology pipeline at Boehringer Ingelheim. This triple associated side effects for patients with chronic hepati- kinase inhibitor is currently in clinical phase III devel- tis C may well prove an important treatment option. opment for the treatment of patients with advanced non-small-cell bronchial carcinoma, as well as patients Our research and development activities in the area of suffering from ovarian cancer. Furthermore, in Novem- cardiovascular medication have helped us to develop ber 2010, Boehringer Ingelheim published the results our product twynsta®, a highly effective pill combin- of the clinical phase II TOMORROW study. In the ing the angiotensin receptor blocker telmisartan study, our substance BIBF 1120 produced very promis- (micardis®) with the calcium channel blocker am- ing results in patients with idiopathic pulmonary fi- lodipine. This product is aimed at the treatment brosis (IPF). The trial results clearly indicate that this of essential hypertension in adult patients whose substance may prove of significant benefit to IPF pa- blood pressure cannot be sufficiently controlled by tients, since it reduces the rate of lung function decline amlodipine alone. It is also designed as an alternative associated with this disease. These results are most en- therapy for adults who have previously been taking couraging and serve to build a solid base for the devel- both micardis® and amlodipine as separate pills in opment of further clinical programmes. the same dosage. High blood pressure is the greatest risk factor for cardiovascular disease, and is responsi- In the therapeutic area of infectious diseases, ble for more fatalities than any other risk factor. Our Boehringer Ingelheim’s research and development ac- successful development studies led to twynsta® being tivities are focused on viral diseases with high, previ- approved for the US market in 2009, while the finan- ously unmet medical needs. Last year, we made further cial year just closed saw twynsta® gain market approv- significant progress in our HCV (hepatitis C virus) re- al for both Japan and Europe. search programme. Our BI 201335 substance is an oral HCV NS3/4A protease inhibitor (test substance), which Boehringer Ingelheim’s pipeline projects are subject to was developed by our research and development team regular review. In this regard, we made the decision and has already undergone clinical trials up to phase last year to discontinue the development of flibanserin, IIb (SILEN-C studies). Our BI 207127 substance, on an active ingredient for the treatment of hypoactive the other hand, is an NS5B RNA-dependent polymer- sexual desire disorder (HSDD). In June 2010, the Re- ase inhibitor which has successfully completed phase I productive Health Drugs Advisory Committee of the clinical trials. Plans for phase II studies with both BI US Food and Drug Administration (FDA) met in order 207127 and BI 201335 are currently underway in ther- to deliberate over the application for approval of fli- apies without Interferon, both with and without Riba- banserin for the treatment of HSDD in premenopausal virin. In October 2010, Boehringer Ingelheim pub- women. The answer given by the regulatory authority, lished the promising results of our phase Ib study together with the complexity and scope of further “SOUND-C1”, from which it emerged that the combi- questions which would have to be addressed in order nation of the oral hepatitis C ingredients BI 201335 to gain approval for flibanserin, led us at Boehringer (protease inhibitor) and BI 207127 (polymerase inhibi- Ingelheim to decide that we would focus our attentions Business and operating environment 25 group management report on other projects in our product pipeline. This was a established itself very successfully as a reliable partner difficult decision, particularly since we remain con- for both internal group customers and external indus- vinced of the value of flibanserin for women suffering trial customers. from HSDD. Therefore, it is important to us that we have made a significant contribution to a better under- In the 2010 financial year, we reorganised the manage- standing of HSDD, both by investing in research and ment of our global production locations, thereby fur- development and by engaging in educational activities ther enhancing our competitive edge. concerning the disorder. We merged our chemical and pharmaceutical plants, The main research focus of Boehringer Ingelheim’s which are responsible for the market launch of innova- Animal Health business is the research and develop- tive new drugs, to form the new Launch & Strategic ment of innovative vaccines, primarily to protect food- Products (LSP) division. The primary objective of this producing animals. During the financial year just division is to ensure that product launches meet the closed, Boehringer Ingelheim invested roughly EUR 92 highest quality standards, while safeguarding the tech- million in the research and development of new prod- nologically and procedurally challenging manufacture ucts. This represents approximately 10 % of the over- of these innovative products during the first years of all sales generated by our Animal Health business. their life cycle. LSP thus represents an interface between production and our development activities. It is In 2010, Boehringer Ingelheim laid the foundations of also responsible for taking on preparatory tasks for the its European research centre for animal vaccines in market launch of new products at a very early stage. Hanover. More than EUR 40 million is to be invested in One particularly successful example in 2010 was the the Boehringer Ingelheim Veterinary Research Center, launch of our product pradaxa® in the USA. It was where a staff of 50 will be involved in developing in- possible to enhance the manufacturing process in the novative vaccines in the first phase of expansion. Op- initial phases of production, with the result that a sta- erations are to get underway at the end of at the end of ble, high-quality manufacturing process was already 2011, while scientific work is scheduled to begin in ensured at the product launch. 2012. We are building a truly modern research centre, encompassing 50 laboratories with animal accommo- Around 80 % of our production volume relates to es- dation facilities. This substantial investment will firm- tablished products in the advanced stages of their life ly establish our research and development activities in cycle. Manufacture of these products is the responsibil- the area of animal vaccines for food-producing ani- ity of our Established Products (ESP) division. A solid mals in Europe, while also expanding our internation- presence in all regions of the world allows us maxi- al reputation. mum flexibility in our production network, so that we can react optimally to varying local requirements. Our Production production network means that we are always in a po- In 2010, our Human Pharmaceuticals production net- sition to produce not only our proprietary drugs, but work comprised 22 operative units, spread over 20 sites also products commissioned by external industrial worldwide (in 13 countries): 14 pharmaceutical, five customers, with cost-efficient manufacturing process- chemical, two biopharmaceutical and one for medical es, high quality standards and reliability. devices. Boehringer Ingelheim’s many years of experience at these production sites mean that we can be sure Boehringer Ingelheim’s biopharmaceutical production of reliable and high-quality product supply, even when sites in Vienna, Austria, and Biberach, Germany, have a using modern technology. Our production division has global reputation. In addition to producing our own 26 Boehringer Ingelheim annual report 2010 proprietary drugs (actilyse®, metalyse®, imukin® and gelheim announced plans to invest EUR 100 million in beromun®), Boehringer Ingelheim is also a leading China, with the aim of increasing production capaci- contract manufacturer spanning the entire biopharma- ties at our plant in the Shanghai-based Zhangjiang ceutical process chain, from genetic development of High-Tech Park. In 2010, as part of this broad expan- the cell, to manufacturing, and right through to pro- sion project, we injected roughly EUR 10 million into ducing market-ready drugs on a commercial scale for the creation of a new Center of Competence in Shang- external industrial customers. hai. This new facility will specialise in quality control for pharmaceutical active ingredients and chemical in- Ongoing investment in our production network over terim products procured in China. The new Center of many years means that we can secure access to having Competence comprises two departments, process de- access to the most innovative and ultramodern produc- velopment and quality control. Process development is tion technologies. in charge of optimisation of production processes and the associated transfer of technology to our Chinese In 2009, we had already invested roughly EUR 64 million business partners. This helps to increase production in the first module of the new production facilities efficiency and precision. By helping to optimise our for the manufacture of active ingredient pellets for our partners’ production processes, as well as guaranteeing new oral thrombin inhibitor pradaxa® at our Ingelhe- the quality of interim products, we can ensure that im location. In 2010, this was followed by a EUR 119 China plays a stronger role in our global procurement million investment in the expansion of this innovative activities in the future. production plant. The facilities are to be completed by 2011 and will be linked to the creation of a further 120 Environmental and employee protection jobs at our head office in Ingelheim. This additional An important element of our corporate mission state- investment means that we can increase capacity signif- ment, and of key concern to Boehringer Ingelheim, is icantly, with 1.5 billion capsules to be manufactured the protection of our employees, our facilities and the annually in the future. In this way, Boehringer Ingel- environment. This goes hand in hand with conserving heim can guarantee that the expected global demand natural resources and promoting environmental aware- for dabigatran etexilate (pradaxa®) is met. ness. We have long taken care to ensure that social and ecological concerns are firmly anchored at the heart With a further investment of approximately EUR 70 of our corporate philosophy. Everything we do at million in a highly automated atomisation factory at Boehringer Ingelheim must meet the twin objectives of the Dortmund-based Boehringer Ingelheim microParts sustainability and concomitant respect for the environ- for the manufacture of our respimat® inhaler, we have ment. In all of our activities, we do our utmost to pro- doubled production capacity to 20 million inhalers per tect our employees, neighbouring communities and the year. With the help of this investment, we are in a po- environment. The company is deeply committed to con- sition to make available to patients a highly efficient serving natural resources and working hard to promote and innovative atomiser in the form of the respimat® environmental awareness both internally and externally. Soft Mist inhaler at a time of rising world demand for preparations for treating chronic obstructive pulmo- We have drawn up binding standards, applicable nary disease (CODP). throughout the group, for the areas of environmental protection and occupational safety. These standards At Boehringer Ingelheim, we are always working to do not merely meet, but go far beyond country-specific optimise our production network. This includes ex- legal requirements. Implementation of and compliance panding our presence in Asia. In 2009, Boehringer In- with these environmental and occupational safety Business and operating environment 27 group management report standards is ensured through established processes in Virginia, USA. In gaining this certificate, the Peters- our Environment, Health and Safety (EHS) division. burg plant is following in the footsteps of our certified Regular internal audits serve to ensure compliance chemical plants in Spain, France and Italy. with our standards, while helping us to identify and realise potential for improvement. In the last financial As with any type of production, the manufacture of year, we again voluntarily carried out 14 internal envi- pharmaceutical products inevitably has an impact on ronmental protection and occupational safety audits at the environment. It is thus our express aim to keep 12 of our sites worldwide. This global auditing process, this impact to a minimum. A concrete example of this along with a systematic investigation on the basis of commitment is illustrated in our ambitious targets for carefully defined data, is firmly established at the heart the reduction of CO2 emissions. Last year, for instance, of our business processes. It has a vital part to play in we optimised the air-conditioning system at our ensuring the high standards that have become synony- Ingelheim plant, resulting in an annual reduction of mous with our activities in the areas of environmental 2,000 tonnes of CO2. Boehringer Ingelheim has been protection, health and occupational safety. involved with the world-renowned environmental project Ökoprofit® for a number of years. This ecologi- When it comes to occupational safety and environmen- cal initiative, developed in Graz, Austria promotes in- tal protection, we have high expectations not only of tegrated environmental technology. In effect a coopera- ourselves, but also of our suppliers. During the 2010 tive project between local authorities and businesses, financial year, we undertook a detailed revision and the initiative encourages companies to take concrete improvement of our supplier selection process. To take measures to reduce their consumption of energy and one example, we developed a risk-based approach for water, as well as cutting down on waste. Dramatic re- auditing our external business partners. Boehringer ductions in consumption have already been achieved at Ingelheim will not enter into a business relationship our plants in Ingelheim and Dortmund, Germany in re- with a supplier until all of our defined requirements cent years. In the last financial year, however, we iden- have been met. For this reason, a comprehensive on-site tified considerable potential for the reduction of CO2 inspection is always the first step in a new partnership. emissions at our plant in Vienna, Austria. Since 1995, Boehringer Ingelheim has adhered to The health and safety of our employees is of the high- guidelines laid down by responsible care®, a global est priority at Boehringer Ingelheim. Last year, build- initiative of the chemicals industry (World Chemical ing on the foundation of our high safety standards and Association). For our company, responsible care® guidelines, we implemented our new global safety cul- means working continously to improve health, safety ture initiative Zero by Choice. Under this initiative, and environmental protection, beyond the ordinary both management and staff take on key roles and are legal requirements and on a voluntary basis. Our com- encouraged to take proactive responsibility for their mercial activities can only be truly successful if we pay own safety and that of their colleagues. With its objec- proper attention to social and ecological concerns. tive of reducing the accident rate further, Zero by Choice will raise the bar for occupational safety in our In 2010, certification of our production sites by exter- company even higher. With an accident rate of 2.6 ac- nal organisations remained a key element of our envi- cidents per one million hours worked in 2010, we are ronmental and safety management processes. Our on the right track to achieving our end goal of reducing commitment was rewarded, amongst other things, by the rate of 3.1 in 2009 to below one in 2014. receipt of an ISO 14001 certificate for environmental management at our chemical plant in Petersburg, 28 Boehringer Ingelheim annual report 2010 Employee reporting rapidly evolving and competitive business environ- In 2010, as in previous years, the average number of ment. Boehringer Ingelheim’s goal, past and future, is employees increased once more. The average number to recruit the right employees both internally and ex- of employees at Boehringer Ingelheim for the year ternally, to develop them within the company and to was 42,224, representing a year-on-year increase of bind them to Boehringer Ingelheim in the long term. almost 2 %. We believe that we are in a strong competitive position Average capacity of employees by region 2010 2009 with our remuneration system. In addition to the basic Americas 13,491 13,519 salary that is usual for the market, we have established Europe 21,016 21,314 variable salary components which are dependent on 7,717 6,701 42,224 41,534 Asia, Australasia, Africa (AAA) the success of the company and the employee’s achievement of individual targets. Manager and employee meet at the beginning of the year to agree on the em- Supporting young people and giving them the best ployee’s individual targets for the year. Achievement of possible start in their professional life has traditionally these targets during the course of the year then has a been one of our particular concerns at Boehringer In- direct effect on the employee’s variable salary compo- gelheim. Last year, we maintained a consistently high nent. Apart from these purely pecuniary incentives, number of young employees in our locations through- comprehensive employee benefits such as our company out Germany, spread over 30 different occupations re- pension scheme and voluntary preventive health checks quiring training (685 apprentices in 2010). Boehringer also make our overall remuneration system more at- Ingelheim sees the training of young people as an in- tractive. vestment in the future. We always do our utmost to help people with disabilities to integrate into professional For the last few years, Boehringer Ingelheim has addi- life. It is important to us that our young employees re- tionally offered for top executives a remuneration ceive integrated training. This means that the promo- component, which is tied to the long-term success of tion of social skills and the development of personality the company. This salary component is clearly linked are important components in training, in addition to to the achievement of long-term company targets and the acquisition of technical skills and knowledge. as such is distinct from more short-term targets. Talent management is a particularly important element Boehringer Ingelheim builds on the involvement, in- of our corporate strategy. Ensuring the employability novation and energy of its employees. We believe that a of our people and exploiting opportunities for their good balance between work and private life is an im- professional development feature among Boehringer portant key to our company’s success as well as satis- Ingelheim’s core objectives. Our talent management faction in the workplace. To this end, we support our approach, now firmly anchored in our company’s or- employees so that they can find the perfect balance be- ganisation, is all about ensuring that the company has tween their careers and private lives. Key initiatives here the right people in the right position at the right time. include our “BI-Fit” health programme, healthcare Under our talent management concept, the perform- services, comprehensive counselling services, and sup- ance and conduct of each individual employee is eval- port for families such as child-minding, part-time work uated and differentiated in terms of both remuneration models and flexitime. These measures are country-de- and professional development opportunities. Develop- pendent and tailored to the local requirements ing our employees in this differentiated way gives of individual countries. As a family company itself, Boehringer Ingelheim a strategic competitive edge in a Boehringer Ingelheim has always had a sustainable Business and operating environment 29 group management report family-friendly policy close to its heart. We will re- tries. To make it easier for people to access medication, main loyal to this philosophy in the future and contin- Boehringer Ingelheim has chosen not to enforce its pat- ue to promote a family-friendly management culture. ent in developing countries. The only condition is that generic manufacturers meet WHO production stand- In its 125th year, Boehringer Ingelheim is still blazing ards, so that patients are guaranteed a high-quality a successful trail in the research, development and product. In this way, Boehringer Ingelheim is crystal- marketing of innovative drugs for humans and ani- lising its long-term commitment to combating the mals. The world’s largest family-owned pharmaceuti- AIDS epidemic. cal company, Boehringer Ingelheim has remained true to the values of its founder, Albert Boehringer, and to In addition to the above, Boehringer Ingelheim’s com- the corporate mission statement – “Value through In- mitment to society encompasses numerous initiatives novation”. In September of last year, the occasion of through which the company supports the provision of the 125th anniversary was marked in the three Ger- medical supplies in many countries and regions, wheth- man locations, Ingelheim, Biberach and Dortmund, er through donations of medication or other types of with family celebrations for both current and former donations. In Italy, for example, a cooperation agree- employees and their relatives. ment has been in place for many years between our local organisation and Banco Farmaceutico. As part Corporate citizenship of the agreement, people in need are provided with The ethical principles to which Boehringer Ingelheim medication free of charge, particularly during the win- has been committed for 125 years have helped to create ter months. As another example, Boehringer Ingelheim a culture of corporate and social responsibility. For has collaborated with Direct Relief International (DRI) Boehringer Ingelheim, commitment to society has many to stock clinics set up to treat victims of the severe facets and is firmly anchored in our corporate philoso- storms that batter the Gulf Coast of the USA. phy. This commitment is at the heart of a long tradition at Boehringer Ingelheim, and we will continue to As an integral part of our corporate culture, Boehringer place particular value on the realisation of this pledge Ingelheim actively promotes voluntary work among in the future. We have been taking our responsibility to our employees. During the past year in the USA alone, society extremely seriously for many years. This in- our employees have given more than 13,000 hours of cludes involvement in a wide range of projects world- their free time to help those in need. wide aimed at those most in need of help in many different countries and regions. Every year, the Federal Minister of the Interior confers the “Helping Hand” award for ideas and concepts that Boehringer Ingelheim has set itself the goal of improv- encourage people to take up voluntary work in the area ing access to medication in the less developed coun- of civil defence. Last year, Boehringer Ingelheim was tries in the world. In 2010, our viramune® Donation awarded second place in the “Exemplary Employer Programme remained a key focus of our social com- Conduct” category, not least because our plant fire bri- mitments. By making viramune® available free of gade makes an important contribution to civil defence. charge in a large number of developing countries, Boehringer Ingelheim is working to prevent the trans- As a good corporate citizen, Boehringer Ingelheim mission of the HI virus from mother to child during has been an active supporter of research, science and birth. More than two million mother-child pairs have culture for many years. Last year, for example, the been treated with viramune® since the year 2000, in Boehringer Ingelheim Foundation launched a remark- 171 individual support programmes spanning 71 coun- able initiative with the aim of strengthening cutting- 30 Boehringer Ingelheim annual report 2010 edge research at Johannes Gutenberg University in the associated favourable exchange rate effects had a Mainz. Over a period of ten years, the Boehringer In- positive effect here (+4.9 % and approximately +EUR gelheim Foundation will invest a total of EUR 100 mil- 668 million impact on sales). The significant decline in lion in the establishment and operations of the Insti- sales due to the loss of exclusivity for key sales drivers tute for Molecular Biology (IMB) at the University of on the US pharmaceuticals market (around EUR 1.4 Mainz. The new institute will be committed to out- billion after adjustment for currency effects) was al- standing research, meeting international standards of most compensated for by corresponding growth of the excellence for researchers and equipment and further rest of the portfolio. strengthening the existing areas of research in Mainz. Currently under construction, the institute is to begin Boehringer Ingelheim’s business is divided into the scientific operations at the beginning of 2011. two fields of Human Pharmaceuticals and Animal Health. The Human Pharmaceuticals business is in turn subdivided into Prescription Medicines, Consumer Results from operations, financial position and net assets Health Care and Industrial Customers, and generated Results from operations Prescription Medicines The achievement of sustainable long-term success of Prescription Medicines are at the centre of our business the company, accompanied by stable profits and solid activities and form the core of our Human Pharmaceu- financing is the foundation for securing the independ- ticals business, accounting for 83 % of the total sales in ence of the group of companies and is at the centre of this business field. With net sales of EUR 9,702 mil- Boehringer Ingelheim’s strategic orientation. As in pre- lion, sales were down 3.5 % on the previous year (8.5 % vious years, we based our actions on these principles after adjustment for exchange rate effects). total sales of EUR 11,665 in the last financial year. This represents a year-on-year decrease of approximately 3.7 % and accounts for just under 93 % of group sales. in the last financial year. As expected, due to loss of sales as a result of patent expiries, 2010 was a year of The loss of exclusivity for flomax® and mirapex® in transition for the group that marked the end of a ten- the USA and the termination of the contract for Du- year period of long-term growth. However, it was also loxetine (cymbalta®/xeristar®) had a negative impact a year in which the foundation for the subsequent sus- on sales in business with prescription medicines. How- tained growth phase was successfully laid. In particu- ever, after adjustment for these non-recurring effects, lar, the positive results from research and development business performance was positive. The growth rates give us cause to be optimistic about the future. of our established products spiriva®, micardis® and combivent® are particularly worthy of mention. Posi- With a market share of 1,9 %, Boehringer Ingelheim is tive effects also resulted from the new product launch- ranked 15 among the world’s biggest pharmaceutical es of pradaxa® and twynsta®. companies according to the provisional figures of the Net sales (in millions of EUR) 2010 2009 Change spiriva® 2,863 2,404 19.1% At EUR 12,586 million, consolidated sales for 2010 micardis® 1,555 1,393 11.6% were close to the level of the previous year. The devel- combivent® 727 654 11.2% opment of foreign exchange rates on the markets and sifrol®/mirapex® 668 801 — 16.6% market researchers. Business and operating environment 31 group management report As in previous years, our highest-selling and most important product was spiriva®, which is used to treat Net sales by region (in millions of EUR) 2010 2009 Change chronic obstructive pulmonary disease (COPD). In the Americas 4,587 5,235 — 12.4% reporting period, it generated sales of EUR 2,863 million, Europe 2,801 2,700 + 3.7% which equates to growth of 19.1 % compared to 2009. Asia, Australasia, Africa (AAA) 2,097 1,821 + 15.2% In the largest sales market, the USA, sales increased from EUR 1,089 million to EUR 1,331 million. Consumer Health Care Consumer Health Care is our business with non-pre- Our second-biggest product is micardis®, a drug for scription drugs. Despite a declining market in Japan the treatment of high blood pressure. With sales in- and a weak cold and flu season at the start of the year, creasing by 11.6 %, taking total sales to EUR 1,555 mil- we posted sales of EUR 1,318 million in the last finan- lion, there was also a very positive trend here. cial year. After sales of EUR 1,261 million in the previous year, this equates to an increase of 4.5 %. In regional terms, business development for Prescription Medicines was very mixed. Growth in the Europe Our highest-selling non-prescription products are dul- and Asia, Australasia and Africa regions contrasted colax®, mucosolvan®, buscopan® and pharmaton®. with a decline in sales in the Americas region, caused Compared with the previous year, all of them grew and by the patent expiries of flomax® and mirapex® re- each generated sales of more than EUR 100 million. stricted to the USA. While dulcolax® was again the highest-selling drug at EUR 159 million, buscopan® posted the strongest At EUR 2,801 million, total sales for Prescription Med- growth rate of the aforementioned products at 20.7 %. icines in the Europe region were up 3.7 % on 2009. The This performance for our Consumer Health Care busi- AAA region achieved a sales increase of 15.2 % to EUR ness is extremely pleasing in the context of a difficult 2,097 million. In the important Japanese market, we business environment. attained growth of just under 12 % (sales of EUR 1,318 million in 2010) and strengthened our business in Chi- Net sales (in millions of EUR) na by 51 % with sales of EUR 145 million. dulcolax® 2010 2009 Change 159 146 8.9% mucosolvan® 148 133 11.3% Countries in the Americas region generated total sales buscopan® 134 111 20.7% of EUR 4,587 million in 2010, a decrease of 12.4 % pharmaton® 130 121 7.4% compared with the previous year. However, this decrease was limited to the country with the highest sales, the Sales of EUR 502 million were achieved in the Europe USA (-17.4 %), while the other countries in the region region, which is our most important region in the Con- achieved a double-digit growth rate of just under 20 %. sumer Health Care segment. This equates to an increase of just under 6 % compared with 2009. Sales in our most important market, Germany, were at roughly the same level as the previous year at EUR 131 million. Components of growth in net sales (as %) 2010 2009 Price/quantity/new introductions — 6.2 6.6 9.7 7.9 12.1 Acquisitions and sale of business 0.2 0.1 — 0.2 0.9 — 0.3 Currency effect 4.9 3.0 — 3.6 — 5.2 — 0.9 32 Boehringer Ingelheim annual report 2010 2008 2007 2006 The AAA region attained sales of EUR 441 million achieved EUR 67 million in sales and growth of just (+1.3 %) in the reporting period. In particular, sales under 12 % compared to last year. figures were negatively impacted by the development on the Japanese market (- 6 %), which accounted for Net sales (in millions of EUR) 2010 2009 Change 67 % of sales. The highest growth was posted in the ingelvac circoflex® 239 157 52.2% Americas region, at just over 7 %. Total sales were EUR metacam®* 95 85 11.8% 374 million here. ingelvac® prrs 44 34 29.4% ingelvac® m. hyo 43 30 43.3% Industrial Customer The Industrial Customer business comprises the third- The ground-breaking ceremony for the new European an- party business areas of Biopharmaceuticals and Phar- imal research centre in Hanover marked a major step in maceutical Production and our commission business the long-term expansion of our Animal Health business. for Pharma Chemicals. Following the clearly perceptible effects of the economic crisis in the previous year, Overall, we strengthened and extended our position as the Industrial Customer business declined further in one of the top companies in the animal health sector the reporting period. Net sales fell to EUR 638 million last year. With a market share of 5,9 %, Boehringer In- (-18.7 % compared with 2009). This was primarily due gelheim is ranked 6 among companies in this market to the lower sales for biopharmaceuticals, which make segment, according to the provisional figures of the up around two-thirds of Industrial Customer sales. market researchers However, sales were also down 7.3 % in Pharma Chemicals and Pharmaceutical Production owing to a diffi- This is also borne out by an assessment of the sales de- cult market environment. velopment in the regions and individual countries. Impressive growth of 76 % was achieved in our region Animal Health with the strongest sales, the Americas, mainly driven by The Animal Health business of Boehringer Ingelheim the USA and Canada. A high double-digit growth rate of again recorded extraordinary success. Net sales broke just under 57 % in the AAA region and equally pleasing the USD 1 billion barrier for the first time in 2010. 22 % growth in Europe underline the innovative strength Sales growth amounted to 51 %, and was, amongst and future potential of the Animal Health business. other factors, attributable to the additional sales from the parts of the Fort Dodge Animal Health business Expenditure and income acquired in 2009. The integration of this business is In the 2010 financial year, Boehringer Ingelheim’s going well and is laying the foundation for further operating expenses rose to EUR 12,184 million, a growth. However, organic growth was also a signifi- change of + 6.7 % year-on-year. At EUR 1,803 million, cant factor in the positive development of the Animal material expenses were 5.8 % below the previous year Health business. In particular, porcine vaccines en- (EUR 1,913 million). Consequently, the ratio of ma- sured sound progress in the strategic core segments. In terial costs to total sales was 14.3 %. Personnel costs this fiercely contested market, our highest-selling amounted to EUR 3,358 million (+ 4.3 %). The person- product ingelvac circoflex® generated sales of EUR nel expenses ratio was thus 26.7 % (2009: 25.3 %). 239 million, an increase of more than 50 % compared with 2009. As well as the success with livestock, our Depreciation increased by 7.8 % year-on-year to EUR two highest-selling products in the pet segment also 598 million. An increase of EUR 692 million (+12 %) to performed pleasingly. metacam small animals® EUR 6,425 million was posted for other operating expenses. Among other things, this cost block includes Results from operations, financial position and net assets 33 group management report commission and licence payments, which are depend- of capital. Our financial activities are therefore geared ent on sales. As expected, at EUR 1,896 million, oper- towards supporting the business strategy. ating income was down on the previous year (EUR 2,239 million) as was the return on net sales of 15.1 % As we are a company that operates internationally, the (2009: 17.6 %). developments on the foreign exchange markets have a considerable influence on the measurement of our suc- The extraordinary income item section (EUR – 594 cess. The US dollar in particular represents the greatest million) solely comprises the effects of converting the individual risk owing to the importance of our US consolidated financial statements according the German business and the associated supply relationships. Cur- Accounting Law Modernisation Act (BilMoG). rency risks arising from the global orientation of our business activities are therefore calculated within the In the reporting period, the financial result totalled framework of our group-wide financial reporting and EUR – 154 million, down EUR 55 million on the previ- hedged using derivative financial instruments. The ous year. This was largely due to the rise in the interest type and scope of measures are regularly discussed and portion of additions to provisions for pensions and decided upon by the relevant committee in a standard- similar obligations and, on the other hand, reduced in- ised process. terest gains due to the low interest level. Investments are of great strategic importance to Income before taxes developed in line with the result Boehringer Ingelheim and secure the long-term suc- from operating activities. It fell to EUR 1,114 million cess and development of our business activities. Con- (– 48.2 % compared with 2009). tinuous investment forms the basis for future profitable growth. In total, EUR 576 million was invested in Tax expenses amounted to EUR 226 million. Here, it tangible and intangible assets in the year under review. must be taken into consideration that personal taxes Whereas our new oral thrombin inhibitor pradaxa® on group activities levied on the shareholders are not was the focal point of our activities regarding the ex- to be shown as tax expenses according to the account- pansion and preservation of our modern production ing rules. These are presented as part of withdrawals network in 2009, production operations for the manu- from accumulated group equity. Taking this extraordi- facture of active ingredient pellets in Ingelheim were nary effect into consideration, the actual tax ratio is significantly expanded again last year. Boehringer In- markedly higher than the figure shown in the profit gelheim’s microParts site in Dortmund also saw expan- and loss statement. sion investment, which has already been completed, resulting in a doubling of production capacity for our Negatively impacted by the aforementioned develop- respimat® inhalation devices. Both projects are geared ment of operating and extraordinary income, net in- towards ensuring coverage of future global demand. In come for the 2010 financial year fell by 49.5 % to EUR the field of veterinary medicine, the foundation stone 888 million compared with the previous year’s figure of our European research centre for animal vaccines, of EUR 1,759 million. the Boehringer Ingelheim Veterinary Research Centre, was laid in 2010. In addition to our German sites, ex- Financial position pansion of our business in China was a second focal Boehringer Ingelheim’s financial management is point of investment activities. For instance, the Centre focused on safeguarding liquidity, minimising or limit- of Competence specialising in quality control was built ing financial and economic risks and an appropriate last year in Shanghai. capital structure that ensures optimisation of the cost 34 Boehringer Ingelheim annual report 2010 Cash flow stood at EUR 2,234 million in 2010. This Group equity increased by 6.5 % to EUR 6,474 million, constitutes a decrease of 7.2 % compared with the pre- which is chiefly attributable to the withheld net in- vious year. Due to the lower income for the period un- come for the year. Consolidated long-term disposable der review compared to 2009, cash flow from operating capital (equity, pension provisions and long-term lia- activities fell by EUR 335 million to EUR 2,056 mil- bilities) increased by EUR 1,017 to EUR 10,408 million lion. Despite this decrease, as in previous years, invest- in 2010, accounting for 64.1 % of total assets. Conse- ments were financed entirely through funds generated quently, this item covers all intangible and tangible as- by the company itself. A total of EUR 519 million was sets, inventories and trade accounts receivable. invested in tangible assets and EUR 57 million in intangible assets. Cash flow from financing activities was Other provisions totalled EUR 2,845 million and were reflecting an outflow of funds totalled EUR 806 mil- thus on the same level as in 2009, as were liabilities lion, mainly as a result of payments to the shareholders (EUR 3,127 million). of the Boehringer Ingelheim group. The balance sheet and the respective balance sheet raOverall, this development of cash flow led to an increase tios round off the positive picture already shown in the in the group’s financial assets of EUR 806 million to financial position and results of operations. The com- EUR 6,113 million (+13.5 %) in the year under review. bined evaluation of the net assets, financial position and results of operations shows that Boehringer Ingel- In summary, it can be emphasised that with the exist- heim is a soundly financed and profitable company. In ing liquidity, the solid financial structure and the high 2010, we created a solid basis for our further business cash flow from operating activities, all the prerequi- development. sites for the continuation of our business activities and the successful implementation of our strategy remain fulfilled. Net assets Total assets amounted to EUR 16,233 million in the Report on post balance sheet date events last financial year. They thus increased by EUR 1,229 million (+ 8.2 %) year-on-year. Tangible and intangible On 11 January 2011, Boehringer Ingelheim and Eli assets totalled EUR 4,050 million and were fully cov- Lilly & Company announced a global agreement on the ered by the group equity. joint development and marketing of diabetes active ingredients that are currently in the middle and late At the end of the financial year, financial assets stages of clinical development. The agreement covers reached a figure of EUR 3,168 million and were thus Boehringer Ingelheim’s two oral antidiabetic ingredi- EUR 1,469 higher than in 2009. ents, linagliptin and BI 10773, Lilly’s two basal insulin analogues, LY 2605541 and LY 2963016, and the With stocks of EUR 1,850 million, the balance sheet option for joint development and marketing of Lilly’s inventories item was almost on the previous year’s level. monoclonal TGF-beta antibody. For trade accounts receivable, an increase of EUR 130 million to EUR 2,156 million was posted in 2010. This alliance enables the scientific expertise and joint corporate resources of two leading pharmaceutical Liquid funds, including non-fixed securities, totalled research companies to be used in a targeted manner in EUR 3,118 million. Results from operations, financial position and net assets / Report on post balance sheet date events 35 group management report order to address patients’ needs arising from the increasing incidence of type-2 diabetes. Risk report Under the terms of the contract, Lilly is to make an Boehringer Ingelheim uses an established risk manage- initial one-off payment of EUR 300 million to ment system that has proved itself over the last few Boehringer Ingelheim. Boehringer Ingelheim is also years and was not modified in the 2010 financial year. entitled to payments totalling EUR 625 million if specific approval-related milestones for Linagliptin and The aim of risk management is to identify business- BI 10773 are reached. Lilly is entitled to payments to- specific risks and, in particular, risks that jeopardise talling EUR 650 million if specific approval-related the continued existence of the company as early as milestones for its two basal insulin analogues are possible, to assess them and to reduce them to a rea- reached. Should Boehringer Ingelheim decide to par- sonable level by means of suitable measures. When ticipate in the phase-III development and potential assessing the risks, in the context of holistic risk man- marketing of the monoclonal TGF-beta antibody, Lilly agement, we also endeavour to take into account the would be entitled to options and bonus payments of up resulting opportunities and incorporate them in the to USD 525 million if specific approval-related mile- analysis, as particularly in our innovation driven busi- stones are reached. Each company will bear half of the ness environment risks and opportunities are often ly- ongoing development costs. After the products result- ing close together.. ing from this alliance have been successfully approved by the authorities, the companies will also share the Those responsible for the key business areas and func- product marketing costs and gross profits equally. tions are included in the process of calculating and assessing risks. With the group-wide risk and informa- On 18 January 2011, Boehringer Ingelheim and Amgen tion system, we ensure that all identified risks are ana- Inc. signed an agreement on the purchase of Amgen’s lysed and assessed carefully. Following appropriate biopharmaceutical development and production site in classification, adequate countermeasures are com- Fremont, USA by Boehringer Ingelheim. The site, menced and their implementation is consistently mon- which currently has a workforce of 360, consists of a itored. modern production facility with a surface area of around 9,000 square metres as well as development In the year under review, Internal Auditing performed facilities and laboratories for process development. targeted routine audits as well as extraordinary audits Our global contract manufacturing business in bio- worldwide. In addition to adherence to legal require- pharmaceuticals will be further strengthened and ex- ments and group-internal guidelines, the main focal panded as a result of the transaction, which is sched- points here were the functionality of systems, the ef- uled for completion in March 2011. fectiveness of internal controls for the prevention of loss of assets, and the efficiency of structures and process- Since the end of the 2010 financial year, we have not es. An audit plan approved by the Board of Managing become aware of any other events that are of material Directors was consistently followed. significance to the group of companies or that could lead to a reappraisal of its asset, financial or earnings Currency risks resulting from the global orientation of position. our business activities are monitored at regular intervals and limited by means of corresponding hedging strategies with appropriate financial instruments such as forward exchange contracts. From the portfolio of 36 Boehringer Ingelheim annual report 2010 trade accounts receivable and trade accounts payable, the loss of exclusivity of products established on the we did not identify any extraordinary risks beyond the market and risks associated with the development and usual level in the sector for the group. The same ap- registration of new products, these risks increasingly plies to possible default risks for receivables, which are include changing and restrictive requirements relating largely hedged against economic risks. to pricing and reimbursement on many sales markets. Frequently, the prices of pharmaceutical products are In the management of our financial assets, we pursue a not only subject to state monitoring and regulation, conservative investment strategy that is reflected by the but also to price pressure from cheaper generic drugs defensive orientation of the portfolio. Our investments caused by the state reimbursement systems. are focused on EMU government bonds with top credit ratings and short-term investments at selected banks. There are currently no indications of any risks going A large proportion of the cash and cash equivalents has beyond this which could jeopardise the continued ex- a short-term investment horizon. istence of the Boehringer Ingelheim group. Boehringer Ingelheim is exposed to risks arising from legal disputes and proceedings as well as official investigations. As the legal or administrative decisions in ongoing or future proceedings cannot be predicted, we Report on expected developments have made appropriate provisions for resultant risks. After 10 years of growth outstripping that of the Protection of innovations through trademark and pat- worldwide pharmaceutical market, the 2010 financial ent rights is of particular importance to Boehringer year was a year of transition for Boehringer Ingelheim. Ingelheim as a research company. These rights are in- The expiry of the exclusivity protection for our block- creasingly the target of attacks and breaches. We have buster products flomax® and mirapex® in the USA, taken the necessary precautions so that we can detect which we have known about for a long time and have threats at an early stage and, by commencing appropri- made allowances for, as well as the high level of in- ate countermeasures, defend our legal position using vestment in R&D and marketing associated with the all legal means available to us, if applicable. planned new product launches had a tangible negative impact on our growth and operating income in this fi- Risks in the area of environmental health and safety nancial year. We regard attainment of the sales level of are minimised preventively by adherence to our own the previous year as a good starting point for the tran- very high safety standards. Appropriate emergency sition to a new growth phase in the coming years. plans have been drawn up for possible incidents of any kind and are practised and subjected to comprehensive In addition to our stable product range, led by our quality testing at regular intervals. To provide protec- blockbusters spiriva® and micardis®, pradaxa® has tion against the financial impact of potential damage significant sales potential. We received approval for or loss events and liability risks, Boehringer Ingelheim the launch of pradaxa® in the indication stroke pre- has appropriate insurance coverage for the company’s vention in arterial fibrillation (SPAF) in the USA and risk profile. Its scope and amount are monitored on an Canada in the last quarter of 2010. In other key mar- ongoing basis. kets, we expect approval in the first few months of 2011. In addition, our development products in the Boehringer Ingelheim is also exposed to business risks treatment areas of diabetes and oncology have also specific to the pharmaceutical industry. In addition to shown excellent results in trials so far. Consequently, Risk report / Report on expected developments 37 group management report we also expect them to deliver significant sales poten- in healthcare systems, which are increasingly less tial, as well as significant progress in treatment. willing to reward the high investment expenditure appropriately. We worked in our realigned organisational structure for the first time in 2010. In addition to closer linking We are confident that we can successfully overcome of the strategic units with the operating national sub- these challenges and achieve our ambitious goals with sidiaries as well as increased productivity and flexibil- a high level of innovation on the basis of a well-filled ity with a greater focus on the emerging markets, we pipeline. For Boehringer Ingelheim, it remains a stated intend to strengthen our position, particularly in the aim to continue to develop the company competitively emerging markets of China, India and Russia, thus and successfully as an independent family-owned en- creating a sound starting point for further growth. terprise. For us, long-term and sustainable organic growth still takes precedence over short-term profit After laying the foundations for a further growth period targets. As in the past, Boehringer Ingelheim will strive in the year of our 125th anniversary, we expect sales to to offer its employees a state-of-the-art and attractive significantly exceed those of the year under review in working environment in future. With our well-trained 2011. We are confident that, assisted by the launch of employees, who are a key factor in the success of our our new products, we can significantly increase our company, we will stand by our mission statement of growth in the next few years and achieve growth in the “Value through Innovation” and research and develop mid single-digit range in 2011. This trend will be in- innovations offering medical benefits, bringing them tensified through further product launches, leading us to market readiness to provide patients with the best to expect even stronger growth for 2012. In particular therapies possible. through our collaboration with Eli Lilly, in which we intend to jointly develop and market four promising substances in the diabetes treatment area, we will be able to strengthen and expand our position in the global pharmaceuticals market on a long-term basis. As a result of our well-filled product pipeline and with promising results for our development products in trials as well as significant sales potential, we believe that our high level of R&D investment is justified and that we are well-positioned for the future. We will also maintain our strategic orientation of driving growth and product supply mainly through our own research and development in future. This was reflected by a further increase in R&D budgets in 2010. Boehringer Ingelheim will face the challenges inherent in the pharmaceutical research industry over the next few years. In addition to patent expiries and patent challenges, rising investment in R&D, tougher hurdles and higher expenditure for product approvals, another major factor here is the intensifying cost pressure 38 Boehringer Ingelheim annual report 2010 2010 Consolidated Financial Statements Overview of the major consolidated companies 40 Consolidated balance sheet 42 Consolidated profit and loss statement 43 Cash flow statement 44 Statement of changes in group equity 45 Notes to the consolidated financial statements 2010 46 Auditor’s report 64 Consolidated Financial Statements 2010 39 consolidated financial statements Overview of the major consolidated companies C. H. Boehringer Sohn AG & Co. KG* Boehringer Ingelheim GmbH germany D P Boehringer Ingelheim Pharma GmbH & Co. KG, Ingelheim Boehringer Ingelheim Vetmedica GmbH, Ingelheim Boehringer Ingelheim microParts GmbH, Dortmund R Boehringer Ingelheim Boehringer Ingelheim Europe GmbH International GmbH austria D P R Boehringer Ingelheim RCV GmbH & Co. KG, Vienna belgium D Boehringer Ingelheim s.r.o., Prague finland D D Boehringer Ingelheim Norway KS, Asker poland Boehringer Ingelheim Sp.zo.o., Warsaw D P Boehringer Ingelheim International Trading (Shanghai) Co. Ltd., Shanghai Boehringer Ingelheim Shanghai Pharmaceuticals Co. Ltd., Shanghai philippines D D SCS Boehringer Ingelheim Comm. V., Brussels china Boehringer Ingelheim Finland Ky, Espoo norway R Forschungsinstitut für Molekulare Pathologie Gesellschaft mbH, Vienna Boehringer Ingelheim Pharma Ges.m.b.H., Vienna czech republic austria D Boehringer Ingelheim (Phil.), Inc., Manila south korea D Boehringer Ingelheim Korea Ltd., Seoul Boehringer Ingelheim Vetmedica Korea Ltd., Seoul D Distribution P Production R Research and Development * sole general partner: Boehringer AG 40 Boehringer Ingelheim annual report 2010 C. H. Boehringer Sohn Grundstücksverwaltung GmbH & Co. KG Boehringer Ingelheim Auslandsbeteiligungs GmbH argentina D R Boehringer Ingelheim S.A., Buenos Aires D Boehringer Ingelheim Pty. Ltd., North Ryde D P japan D P Labso Chimie Fine S.A.R.L., Blanquefort R D D P Boehringer Ingelheim España S.A., Barcelona sweden D P R the netherlands R Boehringer Ingelheim Corp., Ridgefield, Connecticut Boehringer Ingelheim Pharmaceuticals, Inc., Ridgefield, Connecticut Boehringer Ingelheim USA Corporation, Ridgefield, Connecticut Boehringer Ingelheim Vetmedica, Inc., St. Joseph, Missouri Boehringer Ingelheim Roxane, Inc., Columbus, Ohio D Boehringer Ingelheim (Schweiz) GmbH, Basel Boehringer Ingelheim Chemicals, Inc., Petersburg, Virginia venezuela Pharmaton S.A., Lugano taiwan D P Roxane Laboratories, Inc., Columbus, Ohio D switzerland D P Ben Venue Laboratories, Inc., Bedford, Ohio Boehringer Ingelheim AB, Stockholm Boehringer Ingelheim Vetmedica, S.A. de C.V., Guadalajara D D Boehringer Ingelheim C.A., Caracas Boehringer Ingelheim Taiwan Ltd., Taipei thailand D D Boehringer Ingelheim (Thai) Ltd., Bangkok Boehringer Ingelheim B.V., Alkmaar Boehringer Ingelheim (N.Z.) Ltd., Auckland D P Laboratorios Fher S.A., Barcelona Boehringer Ingelheim Seiyaku Co. Ltd., Yamagata new zealand Boehringer Ingelheim (Pty.) Ltd., Randburg Europharma S.A., Barcelona Boehringer Ingelheim Vetmedica Japan Co. Ltd., Tokyo mexico usa D Boehringer Ingelheim S.A., Barcelona Boehringer Ingelheim Promeco S.A. de C.V., Mexico City Boehringer Ingelheim del Ecuador Cia. Ltda., Quito france D P Boehringer Ingelheim Japan, Inc., Tokyo D P Unilfarma Lda., Lisbon spain united kingdom Boehringer Ingelheim Ltd., Bracknell Ingelheim Pharmaceuticals (Pty.) Ltd., Randburg SSP Co. Ltd., Tokyo D Boehringer Ingelheim Danmark A/S, Copenhagen Boehringer Ingelheim France S.A.S., Paris R Nippon Boehringer Ingelheim Co. Ltd., Tokyo Boehringer Ingelheim S.A., Bogotá ecuador D P D R Boehringer Ingelheim Ltda., Santiago de Chile denmark italy D south africa Bidachem S.p.A., Fornovo S. Giovanni Boehringer Ingelheim (Canada) Ltd., Burlington columbia D P Boehringer Ingelheim Italia S.p.A., Reggello Solana Agro Pecuaria Ltda., Arapongas chile indonesia portugal Boehringer Ingelheim Lda., Lisbon PT Boehringer Ingelheim Indonesia, Jakarta Boehringer Ingelheim do Brasil Quimica e Farmaceutica Ltda., São Paulo canada D P Boehringer Ingelheim Ellas AE, Athens australia brazil greece turkey D D Boehringer Ingelheim Ilac Ticaret A.S., Istanbul Overview of the major consolidated companies 41 consolidated financial statements C. H. Boehringer Sohn AG & Co. KG, Ingelheim Consolidated balance sheet Notes 1) 31.12.2010 31.12.2009 (3.1) 736 745 Tangible assets (3.2) 3,314 3,219 Financial assets (3.3) 3,168 1,699 Assets (in millions of EUR) Intangible assets Fixed assets 7,218 5,663 Inventories (3.4) 1,850 1,801 Accounts receivable and other assets (3.5) 2,712 2,538 Securities 1,095 899 Cash and cash equivalents 2,023 2,978 Current assets 7,680 8,216 54 65 Deferred charges and prepaid expenses Deferred taxes Total assets Liabilities and equity (in millions of EUR) Notes 1) Shareholders’ capital Group reserves Balance sheet currency conversion difference Net income Equity Minority interests Group equity 1,281 1,060 16,233 15,004 31.12.2010 31.12.2009 178 178 5,413 4,208 —5 — 244 888 1,759 6,474 5,901 0 179 6,474 6,080 Provisions (3.6) 6,411 5,548 Accounts payable (3.7) 3,127 3,146 9,538 8,694 34 47 Liabilities Deferred charges Deferred taxes Total liabilities and equity 1) For explanation, see relevant section in the Notes to the consolidated financial statements. 42 Boehringer Ingelheim annual report 2010 187 183 16,233 15,004 C. H. Boehringer Sohn AG & Co. KG, Ingelheim Consolidated profit and loss statement Notes 1) 2010 2009 (4.1) 12,586 12,721 Changes in inventories 7 253 Other internal work performed and capitalised 5 5 (in millions of EUR) Net sales Other operating income (4.2) Total revenues 1,482 682 14,080 13,661 Material costs (4.3) — 1,803 — 1,913 Personnel costs (4.4) — 3,358 — 3,221 Amortisation of intangible and depreciation of tangible assets (4.5) — 598 — 555 Other operating expenses (4.6) — 6,425 — 5,733 1,896 2,239 Operating income Financial income (4.7) — 154 — 99 Holding income (4.8) — 34 11 Income before taxes Extraordinary result Taxes 2) 1,708 2,151 (4.9) — 594 0 (4.10) — 226 — 387 888 1,764 0 —5 888 1,759 Income after taxes Third-party share Net income 1) 2) (4.11) For explanation, see relevant section in the Notes to the consolidated financial statements. Due to legal requirements the disclosure of the shareholders’ personal taxes arising from consolidated business activities as tax expenses is not allowed. These taxes are shown as withdrawals from the accrued group capital. Consolidated balance sheet / Consolidated profit and loss statement 43 consolidated financial statements C. H. Boehringer Sohn AG & Co. KG, Ingelheim Cash flow statement (in millions of EUR) 2010 2009 Income after taxes 888 1,764 Write-downs/write-ups on fixed assets 1) 631 551 Change in provisions for pensions 715 94 2,234 2,409 — 46 539 Cash flow Change in other provisions Other non-cash income and expenses 1 29 Loss/gain on disposals of fixed assets 72 —2 Change in inventories Change in accounts receivable and other assets not related to investing or financing activities Change in trade accounts payable and other liabilities not related to investing or financing activities Cash flow from operating activities Investments in intangible assets 25 — 246 — 141 — 386 — 89 48 2,056 2,391 — 57 — 313 Investments in property, plant and equipment — 519 — 630 Investments in non-current financial assets 1) — 14 — 59 0 2 21 74 Proceeds from disposals of intangible assets Proceeds from disposals of tangible assets Proceeds from disposals of non-current financial assets 1) 4 6 Cash flow from investing activities — 565 — 920 Cash receipts from/cash payment to owners and minority shareholders — 837 — 229 Cash proceeds from borrowings/repayments of loans Cash flow from financing activities Change in liquid funds from cash relevant transactions Changes in liquid funds due to changes in scope of consolidation Changes in liquid funds due to exchange rate movements Financial funds 2) as of 1.1. 2) Financial funds as of 31.12. 1) Excl. fixed-asset securities Liquid funds, securities within fixed and current assets (+) = source of funds, ( - ) = use of funds 2) 44 Boehringer Ingelheim annual report 2010 31 1,224 — 806 995 685 2,466 0 0 44 — 14 5,384 2,932 6,113 5,384 C. H. Boehringer Sohn AG & Co. KG, Ingelheim Statement of changes in group equity Accrued group capital thereof currency effects Equity Minority interests thereof currency effects Group equity 178 4,525 — 225 4,703 190 —9 4,893 0 0 0 0 0 0 0 (in millions of EUR) Balance as of 31.12.2008 Contributions Withdrawals 0 — 542 0 — 542 0 0 — 542 Net income 0 1,759 0 1,759 5 0 1,764 Change of scope of consolidation 0 0 0 0 0 0 0 Other changes 0 — 19 — 19 — 19 — 16 — 11 — 35 178 5,723 — 244 5,901 179 — 20 6,080 0 0 0 0 0 0 0 Balance as of 31.12.2009 Contributions Withdrawals 0 — 456 0 — 456 0 0 — 456 Net income 0 888 0 888 0 0 888 Change of scope of consolidation 0 0 0 0 0 0 0 0 141 239 141 — 179 20 — 38 178 6,296 —5 6,474 0 0 6,474 Other changes Balance as of 31.12.2010 1) The shareholders’ capital consists of the equity of C. H. Boehringer Sohn AG & Co. KG and C. H. Boehringer Sohn Grundstücksverwaltung GmbH & Co. KG. As of 31.12.2010, the capital consists only of the limited partners. The shareholders’ personal taxes arising from consolidated business activities are shown as withdrawals from the accrued group capital. Cash flow statement / Statement of changes in group equity 45 consolidated financial statements C. H. Boehringer Sohn AG & Co. KG, Ingelheim Notes to the consolidated financial statements 2010 1 Principles and methods 1.1 General principles The consolidated financial statements of Boehringer Ingelheim for the 2010 financial year were prepared in accordance with section 264a of the Handelsgesetzbuch (HGB – German Commercial Code) in line with the requirements of group accounting of sections 290 et seq. HGB. In accordance with section 297 paragraph 1 HGB, the consolidated financial statements consist of the consolidated balance sheet, the consolidated profit and loss statement, the notes to the consolidated financial statements, the cash flow statement and the statement of changes in group equity. The consolidated financial statements were prepared in euro in accordance with section 298 paragraph 1 in conjunction with section 244 HGB. To improve the clarity of the consolidated financial statements, individual items of the consolidated balance sheet and the consolidated profit and loss statement have been combined. These items are presented and explained separately in the notes. The additional disclosures required for the individual items can also be found in the notes. Where the Bilanzrechtsmodernisierungsgesetz (BilMoG – German Accounting Law Modernisation Act) that entered into force on 29 May 2009 has resulted in changes to the recognition and measurement of items of the balance sheet and profit and loss statement, the prior-year amounts have not been restated in line with the new policies in accordance with section 67 paragraph 8 of the Einführungsgesetz zum Handelsgesetzbuch (EGHGB – Introductory Act to the HGB). Thus, figures can only be compared with those for the previous year to a limited extent. 1.2 Information on companies included in consolidation The parent company of the Boehringer Ingelheim Group is C. H. Boehringer Sohn AG & Co. KG, Ingelheim. Boehringer AG, Ingelheim is the sole, personally liable, managing shareholder of this company. Besides C. H. Boehringer Sohn AG & Co. KG there is C. H. Boehringer Sohn Grundstücksverwaltung GmbH & Co. KG, the general partner which is controlled by C. H. Boehringer Sohn AG & Co. KG. The Boehringer Ingelheim Group consists of a total of 145 affiliated companies in Germany and abroad. In addition to C. H. Boehringer Sohn AG & Co. KG and C. H. Boehringer Sohn Grundstücksverwaltung GmbH & Co. KG, a further 109 companies in which C. H. Boehringer Sohn AG & Co. KG directly or indirectly holds the majority of voting rights have been fully consolidated in the consolidated financial statements. 46 Boehringer Ingelheim annual report 2010 34 companies were not included in consolidation in accordance with 296 paragraph 2 HGB in the reporting year as they are individually and collectively insignificant to the net assets, financial position and results of operations of the Group. The total amount of the sales, equity and net income of the companies not included in consolidation account for less than 1% of the aggregated group financial statements totals. These companies were also not classified as associates in accordance with section 311 paragraph 2 HGB on account of immateriality. There are ongoing restrictions on disposal at two other companies on account of their articles of association. These were not included in consolidation in accordance with section 296 paragraph 1 sentence 1 HGB. Compared with the previous year, the total number of affiliated companies increased by three: • one company was liquidated, • four companies were founded. The following subsidiaries were exempted from the reporting and disclosure obligations of section 264 paragraph 3 HGB: • Boehringer Ingelheim GmbH, Ingelheim • Boehringer Ingelheim Europe GmbH, Ingelheim • Boehringer Ingelheim Vetmedica GmbH, Ingelheim • Boehringer Ingelheim Secura Versicherungsvermittlungs GmbH, Ingelheim • Boehringer Ingelheim Grundstücksgesellschaft mbH, Ingelheim • Boehringer Ingelheim Finanzierungs GmbH, Ingelheim • Boehringer Ingelheim R&D Beteiligungs GmbH, Ingelheim • Boehringer Ingelheim Venture Fund GmbH, Ingelheim Exempted from the duty to prepare and disclose annual financial statements in accordance with HGB provisions for corporations under section 264b HGB are: • C. H. Boehringer Sohn AG & Co. KG, Ingelheim • C. H. Boehringer Sohn Grundstücksverwaltung GmbH & Co. KG, Ingelheim • Boehringer Ingelheim Pharma GmbH & Co. KG, Ingelheim • Boehringer Ingelheim Veterinary Research Center GmbH & Co. KG, Hanover. 1.3 Consolidation methods For inventories, accounts receivable and payable and income and expense items, business transactions among the consolidated companies were eliminated as part of debt consolidation in accordance with section 303 HGB, the elimination of intercompany profits in accordance with section 304 HGB and the consolidation of income and expenses in accordance with section 305 HGB. Within the capital consolidation the revaluation method of section 301 HGB was applied for the firsttime consolidation of subsidiaries. First-time consolidation occurs at the date at which the company becomes a subsidiary. Notes to the consolidated financial statements 2010 47 consolidated financial statements The carrying amount of the shares held by the parent company is offset against the corresponding equity of the subsidiary. The equity is stated at the fair market value amount of the assets, liabilities and deferred items at the time of consolidation. Any remaining balance after the offsetting is disclosed as goodwill. This type of consolidation method and the date of first-time consolidation were already applied to subsidiaries or successive share purchases consolidated for the first time before 1 January 2010. 1.4 Currency translation Assets and liabilities resulting from foreign currency transactions were translated using the middle spot exchange rate as at the balance sheet date. The realisation principle (section 298 paragraph 1 in conjunction with section 252 paragraph 1 no. 4, 2nd half-sentence HGB) and the historical cost convention (section 298(1) in conjunction with section 253 paragraph 1 sentence 1 HGB) were complied with for remaining terms of more than one year. In these consolidated financial statements, the financial statements of foreign subsidiaries domiciled in a state outside the euro zone and denominated in foreign currency have been converted into euro in accordance with section 308a HGB, using the modified closing rate method. Using the modified closing rate method, the asset, equity and liability items of the annual financial statements prepared in foreign currency were translated into euro using the average annual rate as at the closing date, with the exception of equity, which was translated using the historical rate. The items of the profit and loss statement were translated into euro using the average rate. The resulting translation difference was reported within consolidated equity after the reserves under “Difference in equity from currency translation”. The most important currencies for the Group developed were as follows in the reporting year (basis: EUR 1): Year-end rate 31.12.2010 US dollar Average annual rate 31.12.2009 2010 2009 1.34 1.44 1.33 1.39 108.65 133.16 116.46 130.23 Pound sterling 0.86 0.89 0.86 0.89 Canadian dollar 1.33 1.51 1.37 1.59 Japanese yen 48 Boehringer Ingelheim annual report 2010 2 Accounting and evaluation methods 2.1 Fixed assets Acquired intangible assets and tangible assets are carried at cost less straight-line amortisation and depreciation respectively in line with technical and economic circumstances. This is based on the following useful lives: Intangible assets 2 to 15 years Buildings 20 years Technical equipment and machinery 10 years Other equipment, operating and office equipment 3 to 10 years Only straight-line depreciation and amortisation is used in the consolidated financial statements. Anticipated permanent impairments are shown by unscheduled write-offs. Direct costs of materials and labour costs, appropriate portions of materials and labour overheads and the depreciation of fixed assets (if caused by production) were taken into account in determining production costs. All capitalised, intangible assets have a limited useful life. Goodwill from the first-time consolidation of shares is usually being amortized over a period of five years. A useful life of ten years was applied to the goodwill for Boehringer Ingelheim Korea Ltd., acquired in 2007, as past experience of products, sales markets and the business conditions of Boehringer Ingelheim Korea Ltd. has shown that this presents a true and fair view. Under long-term financial assets, shareholder rights, securities and loans have been carried at the lower of cost and fair market value. 2.2 Current assets Inventories are carried at the lower of cost and fair value. Raw materials, consumables and supplies are capitalised at the lower of average acquisition prices or fair market value on the balance sheet date. Finished goods inventories and work in progress are measured at cost on the basis of individual calculations, taking into account the directly attributable costs of materials, direct labour costs, special direct costs, appropriate shares of production and materials overheads and depreciation. Measurement is at fair market value in all cases, i.e. discounts were recognised on the expected sales prices for costs yet to be incurred. Goods for resale are valued at the lower of either purchase cost or fair market value. Notes to the consolidated financial statements 2010 49 consolidated financial statements All identifiable risks in inventory assets arising from above-average storage periods, diminished marketability and lower replacement costs are taken into account by appropriate valuation adjustments. Receivables and other assets are recognised at cost less allowances for specific risks and general credit risk. Low-interest or non-interest bearing receivables with a term of more than one year were discounted. Securities classified as current assets include other securities and were recognised at the lower of cost or quoted/market prices on the reporting date. Cash and cash equivalents are recognised at the lower of cost or fair market value. Prepaid expenses in accordance with section 250 paragraph 1 HGB include expenses paid in advance for a certain period after the balance sheet date. 2.3 Group reserves Group reserves include the retained earnings of the consolidated subsidiaries from prior years and consolidation entries that affect earnings related to prior years. 2.4 Provisions Tax provisions and other provisions include all uncertain liabilities and expected losses from executory contracts. They are carried at the amount required to settle the obligation based on reasonable business judgement in accordance with the prudence principle (i.e. including future cost and price increases). Provisions with a residual term of more than one year are discounted with the seven-year average interest rate related to the duration of the provision (in accordance with the Rückstellungsabzinsungsverordnung – German Regulation on the Discounting of Provisions). In accordance with the respective option under section 67 paragraph 1 sentence 2 EGHGB, provisions with a remaining term of more than one year that already existed as at 31 December 2009 were not reversed because further additions would be required in subsequent years. 2.5 Liabilities Liabilities are recognised at settlement amount. 2.6 Deferred taxes To calculate deferred taxes on temporary or quasi-permanent differences between the accounting carrying amounts of assets, liabilities, prepaid expenses and deferred income and their tax carrying amounts or on tax loss carryforwards, the amounts of the resulting tax benefits and expenses at the time of reversal were measured using tax rates specific to the respective consolidated company (10% – 40%) and not discounted. Differences due to consolidation measures in accordance with sections 300 to 305 HGB were also measured using company-specific tax rates at the time of the expected reversal of the difference. Deferred tax assets on loss carryforwards were taken into account if it is likely that they will be used within the next five years. Deferred tax assets and liabilities are reported without being netted. 50 Boehringer Ingelheim annual report 2010 3 Notes to the consolidated balance sheet 3.1 Intangible assets (in millions of EUR) Concessions/ similar rights Goodwill Advance payments Total 1,020 — 21 569 21 1,610 —1 —1 — 23 Procurement/manufacturing costs Balance as of 1.1.2009 Currency conversion difference Additions due to first consolidation 0 0 0 0 Additions 302 4 7 313 Disposals — 28 0 0 — 28 20 0 — 14 6 1,293 572 13 1,878 67 0 2 69 0 0 0 0 Additions 42 0 15 57 Disposals — 78 0 0 — 78 Reclassifications Balance as of 31.12.2009 Currency conversion difference Additions due to first consolidation Reclassifications Balance as of 31.12.2010 10 0 —3 7 1,334 572 27 1,933 539 532 0 1,071 —2 —1 0 —3 Accumulated depreciation Balance as of 1.1.2009 Currency conversion difference Additions due to first consolidation 0 0 0 0 Additions 80 5 0 85 Write-ups —1 0 0 —1 Disposals — 19 0 0 — 19 0 0 0 0 597 536 0 1,133 20 0 0 20 Reclassifications Balance as of 31.12.2009 Currency conversion difference Additions due to first consolidation 0 0 0 0 95 5 0 100 Write-ups 0 0 0 0 Disposals — 56 0 0 — 56 Additions Reclassifications 0 0 0 0 Balance as of 31.12.2010 656 541 0 1,197 Book value as of 31.12.2009 696 36 13 745 Book value as of 31.12.2010 678 31 27 736 Notes to the consolidated financial statements 2010 51 consolidated financial statements 3.2 Tangible assets Land and buildings Technical facilities and machines Other facilities/ operating equipment Advance payments/ construction in progress Total 2,357 2,436 1,773 559 7,125 — 28 —9 —5 —8 — 50 (in millions of EUR) Procurement/manufacturing costs Balance as of 1.1.2009 Currency conversion difference Additions due to first consolidation 0 0 0 0 0 Additions 82 121 139 288 630 Disposals — 81 — 112 — 102 — 14 — 309 Reclassifications 180 175 62 — 423 —6 2,510 2,611 1,867 402 7,390 163 102 71 20 356 0 0 0 0 0 Balance as of 31.12.2009 Currency conversion difference Additions due to first consolidation Additions 31 82 123 283 519 Disposals — 82 — 109 — 150 —8 — 349 Reclassifications Balance as of 31.12.2010 33 96 52 — 188 —7 2,655 2,782 1,963 509 7,909 1,226 1,481 1,241 0 3,948 — 14 —1 —5 0 — 20 Accumulated depreciation Balance as of 1.1.2009 Currency conversion difference Additions due to first consolidation 0 0 0 0 0 Additions 96 191 183 0 470 Write-ups —3 0 0 0 —3 Disposals — 43 — 90 — 91 0 — 224 0 0 0 0 0 1,262 1,581 1,328 0 4,171 89 70 51 0 210 Reclassifications Balance as of 31.12.2009 Currency conversion difference Additions due to first consolidation Additions 0 0 0 0 0 106 202 190 0 498 Write-ups 0 0 0 0 0 Disposals — 55 — 96 — 133 0 — 284 Reclassifications 0 0 0 0 0 Balance as of 31.12.2010 1,402 1,757 1,436 0 4,595 Book value as of 31.12.2009 1,248 1,030 539 402 3,219 Book value as of 31.12.2010 1,253 1,025 527 509 3,314 52 Boehringer Ingelheim annual report 2010 3.3 Financial assets (in millions of EUR) Investments in affiliated companies Loans Investments to affiliated in related companies companies Loans to related companies Investment securities Other loans Total Procurement/manufacturing costs Balance as of 1.1.2009 Currency conversion difference Additions due to first consolidation 36 8 67 3 1,663 19 1,796 0 —1 1 0 —3 1 —2 0 0 0 0 0 0 0 Additions 29 0 47 0 109 6 191 Disposals 0 0 0 —3 — 259 —6 — 268 Reclassifications 0 0 — 11 0 11 0 0 Balance as of 31.12.2009 65 7 104 0 1,521 20 1,717 Currency conversion difference 11 0 —1 0 8 0 18 0 0 0 0 0 0 0 Additions due to first consolidation Additions 7 0 2 0 1,542 5 1,556 Disposals —4 0 0 0 — 64 —6 — 74 Reclassifications 0 0 0 0 0 0 0 79 7 105 0 3,007 19 3,217 Balance as of 1.1.2009 0 0 12 0 43 2 57 Currency conversion difference 0 0 0 0 0 1 1 Balance as of 31.12.2010 Accumulated amortization Additions due to first consolidation 0 0 0 0 0 0 0 Additions 0 0 0 0 3 0 3 Write-ups 0 0 —5 0 —4 0 —9 Disposals 0 0 0 0 — 34 0 — 34 Reclassifications 0 0 —6 0 6 0 0 Balance as of 31.12.2009 0 0 1 0 14 3 18 Currency conversion difference 0 0 0 0 1 0 1 Additions due to first consolidation 0 0 0 0 0 0 0 Additions 0 0 33 0 1 0 34 Write-ups 0 0 0 0 0 0 0 Disposals 0 0 0 0 —4 0 —4 Reclassifications 0 0 0 0 0 0 0 Balance as of 31.12.2010 0 0 34 0 12 3 49 Book value as of 31.12.2009 65 7 103 0 1,507 17 1,699 Book value as of 31.12.2010 79 7 71 0 2,995 16 3,168 As in the previous year, the “Other loans” item does not include any loans to shareholders. Notes to the consolidated financial statements 2010 53 consolidated financial statements 3.4 Inventories (in millions of EUR) 31.12.2010 31.12.2009 Raw materials and supplies 381 314 Unfinished products 817 784 Finished products and goods for resale 649 698 3 5 1,850 1,801 Residual term over 1 year 31.12.2009 Residual term over 1 year 2,156 4 2,026 3 7 0 5 0 Advance payments to suppliers 3.5 Accounts receivable (in millions of EUR) Trade accounts receivable Receivables from affiliated companies Receivables from related companies Other assets 31.12.2010 17 0 10 0 532 12 497 21 2,712 16 2,538 24 The “Other assets” item includes receivables from shareholders of EUR 28 million (previous year: EUR 0 million). 3.6 Provisions (in millions of EUR) 31.12.2010 31.12.2009 Pension provisions 3,007 2,256 559 479 Tax provisions Other provisions 2,845 2,813 6,411 5,548 Provisions for pensions and similar obligations The provisions for pensions and similar obligations were determined on the basis of actuarial calculations using the projected unit credit method taking into account future adjustments in salaries and pensions. In addition to local biometric data (e.g. Prof Heubeck’s 2005 G mortality tables in Germany), pension obligations in the significant countries were calculated on the basis of the following actuarial parameters: (in % as of 31 December 2010) Germany USA Japan 5.17 5.62 2.08 Salary increase 4.0 5.0 2.8 Pension increase 2.0 3.0 0.0 Discount rate 54 Boehringer Ingelheim annual report 2010 Provisions for pensions and similar obligations were discounted, using the average interest rate related to a residual term of 15 years in accordance with the German Regulation on the Discounting of Provisions of 18 November 2009. The interest rates used to discount significant, foreign pension obligations (US, Japan) were determined in line with the German Regulation on the Discounting of Provisions of 18 November 2009. The one-time transition amount as of 1 January 2010 was calculated on the basis of the method mentioned above. The following interest rates were used for discounting: USA: 5.67 % Japan: 2.12 % Germany: 5.25 % In total EUR 574 million were additionally recognised as a result of the remeasurement of pension obligations with regard to first-time adoption of BilMoG as of 1 January 2010. In accordance with section 67paragraph 7 EGHGB, this amount was completely recognised in the income statement in the financial year under the position “extraordinary result”. The plan assets intended solely to cover pension obligations that are unavailable to all other creditors (i.e. assets within the meaning of section 246 paragraph 2 sentence 2 HGB) were measured at fair market value, which is essentially derived from stock market prices and offset against pension obligations. The assets intended solely to cover the unit-linked pension obligation from the credit balance that are unavailable to all other creditors (cover assets within the meaning of section 246 paragraph 2 sentence 2 HGB) were measured at fair market value and offset against the associated obligations. The costs of assets as of 31 December 2010 were EUR 7 million. The fair market value (market value on the balance sheet date) was EUR 8 million. The assets are offset by the settlement amount of the corresponding liabilities in the same amount. The current income from cover assets and the total write-up to market value of EUR 1 million is equal to the expenses from the increase in obligations. Other provisions In line with the principle of individual measurement, the amount of provisions was reduced as a result of the remeasurement. Nevertheless the prior year amount was retained in accordance with section 67 paragraph 1 sentence 2 EGHGB, as the amount of overstatement would have to be added again by 31 December 2024 at the latest. The overstatement amounts to EUR 11 million. Notes to the consolidated financial statements 2010 55 consolidated financial statements 3.7 Accounts payable (in millions of EUR) Residual term less than 1 year 1-5 years over 5 years 31.12. 2010 31.12. 2009 Residual term less than 1 year 237 662 841 1,740 1,516 175 1,261 39 87 1,387 1,630 1,343 Bank loans Other accounts payable of which: - Trade accounts payable 802 1 0 803 821 818 - Advance payments 23 18 0 41 51 27 - Accounts payable to affiliated companies 29 0 0 29 20 20 1 0 0 1 2 2 406 20 87 513 736 476 1,498 701 928 3,127 3,146 1,518 - from taxes (in millions of EUR) 76 75 - social security liabilities (in millions of EUR) 14 16 - Accounts payable to related companies - Other liabilities* * Of which: As in the previous year, there were no liabilities secured by mortgages or similar collateral rights on the balance sheet date. At the end of the year, there were liabilities to shareholders of EUR 0 million (previous year: EUR 133 million). 56 Boehringer Ingelheim annual report 2010 4 Notes to the consolidated profit and loss statement The structure of the consolidated profit and loss statement was based on the total cost format. 4.1 Net sales by business and business segment (in millions of EUR) 2010 2009 11,665 12,111 Prescription Medicines 9,702 10,058 Consumer Health Care 1,318 1,261 638 786 Human Pharmaceuticals of which: Industrial Customers Other Sales Animal Health 7 6 921 610 12,586 12,721 by geographic region (in millions of EUR) 2010 2009 Europe 4,089 3,980 of which: Germany Americas of which: USA 977 1,051 5,724 6,257 4,511 5,260 2,773 2,484 1,695 1,599 12,586 12,721 (in millions of EUR) 2010 2009 Costs of raw material, supplies and goods for resale 1,375 1,491 428 422 1,803 1,913 Asia / Australasia / Africa of which: Japan 4.2 Other operating income Other operating income includes income from currency translation of EUR 715 million. 4.3 Material costs Expenditure on services 4.4 Personnel costs (in millions of EUR) 2010 2009 Salaries and wages 2,713 2,577 645 644 177 223 3,358 3,221 Social benefits and retirement benefits of which: retirement benefits Notes to the consolidated financial statements 2010 57 consolidated financial statements The interest component of the addition to provisions for pensions and similar obligations was not reported in personnel expenses and therefore the operating result; instead it was reported as a separate item within the financial result. Average headcount Production 2010 2009 12,647 12,404 5,242 5,291 16,543 16,189 7,093 6,934 Administration Marketing and sales Research and development Apprentices 699 716 42,224 41,534 4.5 Amortisation and intangible fixed assets and depreciation of tangible fixed assets Amortisation of intangible fixed assets and depreciation of tangible fixed assets include write-offs of EUR 23 million (previous year: EUR 15 million). 4.6 Other operating expenses Other operating expenses include expenses from currency translation of EUR 796 million. Other operating expenses also include third-party services in the areas of research, development, medicine and marketing plus administrative expenses, fees and contributions, commission, rent, freight, expenses for third-party repairs, non-income-related taxes and restructuring expenses. 4.7 Financial income (in millions of EUR) 2010 2009 Interest expense relating to pensions and similar obligations and other provisions — 222 — 137 Other interest expense and similar expenditure — 115 — 79 Interest expense and similar expenditure — 337 — 216 Amortization of and loss on disposal on financial assets and short-term investments —4 —3 Income from plan assets 75 0 Income from other investment securities and from long-term loans 80 75 Other interest income and similar proceeds 32 45 — 154 — 99 2010 2009 0 6 4.8 Holding income (in millions of EUR) Gains from the sale of investments Write-ups on financial assets — 33 5 Expense from loss allocation —1 11 of which from affiliated companies 58 Boehringer Ingelheim annual report 2010 —1 0 — 34 11 4.9 Extraordinary result The adoption of section 66 and section 67 paragraph 1 to paragraph 5 EGHGB (transitional BilMoG regulations) resulted in extraordinary expenses of EUR 587 million from the addition to provisions for pensions and similar obligations and EUR 20 million from the addition to other long-term provisions. The adoption of section 66 and section 67 paragraph 1 to paragraph 5 EGHGB resulted in extraordinary income of EUR 13 million from the reversal of provisions for pensions and similar obligations also included in this item. 4.10 Taxes (in millions of EUR) Income taxes Deferred taxes 2010 2009 369 679 — 143 — 292 226 387 As a result of the conclusion of profit transfer agreements, significant German corporations have been included in the trade and corporation tax group of the parent company C. H. Boehringer Sohn AG & Co. KG since 1 January 2004. As the income taxes of the shareholders of C. H. Boehringer Sohn AG & Co. KG incurred on operating income cannot be reported in the consolidated profit and loss statement, only the trade income tax of the companies concerned and other fully consolidated German partnerships is shown as tax expenses. Total deferred tax assets amounted to EUR 1,281 million as at the balance sheet date. Deferred tax assets essentially relate to the different carrying amounts of inventories and provisions. Deferred tax assets were recognised in the amount of EUR 187 million. They mainly relate to the differences in the carrying amounts of tangible assets and provisions. 4.11 Net income The net income for 2010 was positively influenced by prior-period operating income (essentially from the reversal of other provisions) of EUR 99 million (previous year: EUR 217 million) and negatively influenced by prior-period operating expenses of EUR 37 million (previous year: EUR 37 million). Notes to the consolidated financial statements 2010 59 consolidated financial statements 5 Notes to the cash flow statement The cash flow statement shows how the cash and cash equivalents (cash and long-term securities and investments classified as current assets that can be sold at any time) of the Boehringer Ingelheim Group changed as a result of cash inflows and outflows in the reporting year. In accordance with German Accounting Standard 2 on the cash flow statement (GAS 2), this has been broken down according to cash flows from operating activities and cash flows from investing and financing activities. The changes in the balance sheet items of the affiliated companies included were translated using average rates for the year. As in the balance sheet, cash and cash equivalents are carried at the closing rate. The effect of exchange rate changes on cash and cash equivalents has been shown separately. In the financial year, EUR 89 million (previous year: EUR 26 million) were paid for interest and EUR 347 million (previous year: EUR 712 million) for taxes. 6 Other disclosures 6.1 Contingent liabilities (in millions of EUR) 31.12.2010 31.12.2009 21 16 Liabilities from guarantees, bills and cheque guarantees, warranties and the granting of security for third-party liabilities The risk of utilisation of the individual contingent liabilities is estimated as follows: The risk of utilisation of guarantees for the liabilities of affiliated companies to banks is rated as low on account of the solid results from operations, financial position and net assets. 6.2 Other financial commitments (in millions of EUR) 31.12.2010 31.12.2009 Rental and leasing obligations 249 199 Purchase commitment 563 804 812 1,003 There are obligations from rental and lease agreements of EUR 249 million (previous year: EUR 199 million), EUR 39 million of which (previous year: EUR 64 million) are related to long-term rental agreements with subsidiaries not included in consolidation. 60 Boehringer Ingelheim annual report 2010 The purpose of the lease agreements is the lower capital commitment compared to buying property and the absence of the resale risk. Risks could arise from the term of the lease if it were no longer possible to fully utilise the properties, for which there are no indications at this time. Other financial commitments include future expenses from follow-up investments, investments already initiated and future major repairs. As at the balance sheet date, commitments include future cash investments of EUR 449 million (previous year: EUR 677 million) in other off-balance sheet transactions. 6.3 Derivative financial instruments and hedges Owing to its extensive international structure, the Boehringer Ingelheim Group is highly dependent on developments in the world’s currencies and interest rates. In order to hedge against the risks, particularly those inherent in supplies, services and financial funding, use is generally made of foreign exchange forward contracts and foreign exchange options in the case of currency risks. Regarding interest rate risks, use is made of interest rate swaps and interest rate options. The use of derivative financial instruments and the organisational processes are set out in internal guidelines. There is a strict separation of trading, processing, documentation and control. Risk positions are regularly tracked, analysed and measured in a special consolidated financial report. The positions entered into are periodically re-evaluated and monitored. The fair market values of the derivative financial instruments are calculated using standard market measurement methods (foreign exchange forward contracts and interest swaps using the net present value method, foreign exchange and interest options using recognised option pricing models) on the basis of the market data available on the balance sheet date. Foreign exchange and interest options are recorded at the lower of fair market value or paid or received option premium. They are derecognised on maturity. Provisions of EUR 46 million were recognised for foreign exchange forward contracts not included in hedge accounting for which there was a negative fair market value within a currency as at the balance sheet date. In line with the imparity principle, positive fair market values within a currency are not recognised. If the requirements for hedge accounting of foreign exchange forward contracts with highly probable forecasted transactions in accordance with section 254 HGB are met, the foreign exchange forward contracts are not recognised in the balance sheet in line with the net hedge presentation method. Notes to the consolidated financial statements 2010 61 consolidated financial statements The following accounting policies apply in the recognition of hedge accounting in accordance with section 254 HGB: Nominal value (in millions of EUR) Market value 31.12.2010 31.12.2009 31.12.2010 31.12.2009 1,892 2,660 —1 44 Foreign exchange options 0 629 0 26 Interest options 1 2 0 0 Foreign exchange forward contracts For economic hedges use is made of hedge accounting. Hedge accounting is recognised per foreign currency from the net amount of highly probable forecasted transactions and foreign exchange forward contracts that match the forecasted net cash flow in terms of maturity, nominal value and foreign currency (macro hedge). The highly probable forecasted transactions (cash inflows and cash outflows for planned sales and purchases) are derived from company planning. As the critical terms (maturity, nominal value, foreign currency) match, the opposing changes in value of the hedged item and the hedging instrument are fully offset. An effective hedge can therefore be assumed both prospectively and retrospectively. The critical term match method is exclusively used to measure prospective and retrospective hedge effectiveness. As at 31 December 2010, hedge accounting for highly probable forecasted net cash flows was recognised as follows: January to December 2011: Net cash flow (in millions of EUR) FX forward contracts (in millions of EUR) Nominal value Nominal value USD 818 USD 683 USD JPY 416 JPY 441 JPY Market value 16 — 50 January to December 2012: Net cash flow (in millions of EUR) FX forward contracts (in millions of EUR) Nominal value Nominal value USD 148 USD 111 USD JPY 465 JPY 425 JPY Market value 7 — 19 January to December 2013: Net cash flow (in millions of EUR) FX forward contracts (in millions of EUR) Nominal value JPY 62 87 JPY Boehringer Ingelheim annual report 2010 Nominal value 78 JPY Market value —2 The amount of the hedged foreign currency risk correlates to the relative change in the exchange rate between the planning date and the realisation date of the forecasted transactions. If all currencies were to appreciate or depreciate against the euro by 10.0%, there would be a foreign currency risk of plus or minus EUR 193 million without hedging. As at the balance sheet date, two floating-rate loans exist in the amount of EUR 516 million. Interest rate swaps with matching amounts and matching maturities were concluded to hedge against the interest rate risk. As this only involves transforming the floating-rate loan portions into a fixed interest rate, use is made of hedge accounting (micro hedges). The opposing changes in value of the hedged item and the hedging instrument are fully offset until 2014 and 2016 respectively. As at the balance sheet date, the interest rate swaps including accrued interest had a fair market value of EUR – 18 million. The carrying amount (equal to deferred accrued interest) was EUR 4 million and is reported within liabilities to banks. The net hedge presentation method was used. 6.4 Research and development expenses (in millions of EUR) 2010 2009 Research and development expenses 2.453 2.215 The research and development expenses not capitalised include costs for phase IV clinical studies. 6.5 Total auditor fees The total fee charged by the auditor for the financial year was EUR 1.3 million. EUR 0.8 million of this relates to audits of financial statements, EUR 0.1 million to other confirmation services and EUR 0.4 million to other services. Notes to the consolidated financial statements 2010 63 consolidated auditor’s report financial statements Auditor’s report We have audited the consolidated financial state- We conducted our audit of the consolidated fi- ments prepared by C. H. Boehringer Sohn AG & nancial statements in accordance with § (Article) Co. KG, Ingelheim – comprising the balance 317 HGB (German Commercial Code) and Ger- sheet, the income statement, statement of chang- man generally accepted standards for the audit of es in equity, cash flow statement and the notes to financial statements promulgated by the Institut the consolidated financial statements, together der Wirtschaftsprüfer (Institute of Public Audi- with the group management report for the busi- tors in Germany) (IDW). Those standards require ness year from 1 January to 31 December 2010. that we plan and perform the audit such that The preparation of the consolidated financial misstatements materially affecting the presenta- statements and the group management report in tion of the net assets, financial position and re- accordance with German commercial law is the sults of operations in the consolidated financial responsibility of the Managing Directors of the statements in accordance with (German) princi- managing corporate general partner. Our respon- ples of proper accounting and in the group man- sibility is to express an opinion on the consoli- agement report are detected with reason-able as- dated financial statements and the group man- surance. Knowledge of the business activities agement report based on our audit. and the economic and legal environment of the Group and expectations as to possible misstatements are taken into account in the de-termination of audit procedures. The effectiveness of the accounting-related internal control sys-tem and the evidence supporting the disclosures in the consolidated financial statements and the group management report are examined primarily on a test basis within the framework of the audit. The audit includes assessing the annual financial statements of the companies included in consolidation, the determination of the companies to be included in consolidation, the accounting and consolidation principles used and significant estimates made by the Managing Directors of the managing corporate general partner, as well as evaluating the overall presentation of the consolidated financial statements and the group management report. We believe that our audit provides a reasonable basis for our opinion. 64 Boehringer Ingelheim annual report 2010 With the exception of the following qualification, our audit has not led to any reservations: Contrary to § (Article) 314 (1) Nos.6 (a) and (b) HGB the total remuneration granted to the members and the former members of the board of managing directors as well as the pension provisions recognized and not recognized for the former members of the board of managing directors are not disclosed in the notes to the consolidated financial statements. In our opinion based on the findings of our audit, with the qualification mentioned above, the consolidated financial statements comply with the legal requirements. The consolidated financial statements give a true and fair view of the net assets, financial position and results of operations of the Group in accordance with (German) principles of proper accounting. The group management report is consistent with consolidated financial statements that comply with the legal requirements and as a whole provides a suitable view of the Group’s position and suitably presents the opportunities and risks of future development. Frankfurt am Main, 24 February 2011 PricewaterhouseCoopers Aktiengesellschaft Wirtschaftsprüfungsgesellschaft Philip Marshall Georg Wolfgang Wegener Wirtschaftsprüfer Wirtschaftsprüfer (German Certified (German Certified Public Accountant) Public Accountant) Auditor’s report 65 product portfolio 66 Boehringer Ingelheim annual report 2010 2010 Product Portfolio A selection Branded Prescription Medicines 68 Consumer Health Care 78 Animal Health 86 Product Portfolio 2010 67 product portfolio Branded Prescription Medicines Respiratory diseases Chronic obstructive pulmonary disease (COPD) and Asthma asthma are among the most prevalent chronic diseases Asthma is a chronic disease involving airway inflamma- affecting the lungs, and cause significant morbidity and tion in response to exposure to asthma triggers, such as premature deaths worldwide. allergens. Airway inflammation causes airways to narrow, mucus to increase and breathing to be more diffi- COPD cult. In the early stages of the disease, this airflow limi- COPD is a disease of the lung in which the airways be- tation is fully reversible and patients can be free of come narrowed. This leads to a limitation of air-flow symptoms between attacks. causing shortness of breath and other respiratory symptoms. The airflow limitation is only partially reversible and usually worsens gradually over time. COPD is caused by noxious stimuli, such as cigarette smoke or air pollution. COPD can manifest itself as chronic obstructive bronchitis with cough and sputum, or as emphysema caused by destruction of the lung tissue. The course of COPD is characterised by occasional sudden worsening of symptoms called acute exacerbations. 68 Boehringer Ingelheim annual report 2010 Indications Brand names Active ingredients • Chronic obstructive pulmonary disease (COPD) spiriva® tiotropium bromide Maintenance treatment of patients with COPD (chronic obstructive pulmonary disease, including chronic bronchitis and emphysema), the maintenance treatment of associated dyspnoea and for prevention of exacerbations. • Bronchospasms associated with reversible obstructive airway diseases combivent® ipratropium bromide, salbutamol Management of reversible bronchospasms associated with obstructive airway diseases in patients requiring more than one bronchodilator. • Chronic obstructive pulmonary disease (COPD) • Chronic bronchitis • Asthma atrovent® ipratropium bromide Bronchodilator for maintenance treatment of bronchospasm associated with chronic obstructive pulmonary disease, including chronic bronchitis, emphysema and asthma. • Bronchial asthma • Chronic bronchitis berodual® bronchodual® duovent® fenoterol, ipratropium bromide For prevention and treatment of symptoms in chronic obstructive airway disorders with reversible air flow limitations, such as bronchial asthma, and especially chronic bronchitis, with or without emphysema. • Bronchial asthma berotec® dosberotec® fenoterol Symptomatic treatment of acute asthma attacks and other conditions with reversible airway narrowing, e.g. chronic obstructive bronchitis, prophylaxis of exercise-induced asthma. • Bronchial asthma inflammide® budesonide Chronic control of symptoms of bronchial asthma. • Bronchial asthma • Allergic rhinitis alesion® flurinol® epinastine Prophylactic treatment of bronchial asthma. Prophylaxis and symptomatic treatment of allergic rhinitis. Respiratory diseases 69 product portfolio Branded Prescription Medicines Diseases of the central nervous system Mental and neurological diseases, such as depression Restless legs syndrome (RLS) and Parkinson’s disease, significantly impact patients Restless legs syndrome (RLS) is a common neurological and their families, and are a substantial burden to disorder characterised by an uncontrollable urge to society. move the legs, primarily occuring in the evening and night hours, usually accompanied by unpleasant and Parkinson’s disease sometimes painful sensations in the legs as well as dis- Parkinson’s disease (PD) is a degenerative disorder of turbed sleep resulting in daytime tiredness or sleepiness. the central nervous system. Patients usually notice mo- The sensations are felt deep within the legs and are de- tor symptoms, like hand tremor (shaking), as their first scribed as creeping, crawling or aching. sign of the disease, which progresses eventually to include shaking of the arms, legs or head. Other motor symptoms that may develop over time include stiffness that often results in loss of facial expression and a gradual slowing or loss of motion or “freezing”. About 30– 40 % of patients also suffer from non-motor symptoms associated with PD, such as dementia, depression and sleep disorders. The primary symptoms are the result of a lack of the neurotransmitter dopamine in distinct areas of the human brain. 70 Boehringer Ingelheim annual report 2010 Indications Brand names Active ingredients • Parkinson’s disease (PD) • Restless legs syndrome (RLS) sifrol® sifrol® er mirapex® mirapex® er mirapex er® mirapexin® mirapexin® er pexola® pramipexole Symptomatic treatment of idiopathic Parkinson’s disease. It may be used as monotherapy or in combination with levodopa. Symptomatic treatment of idiopathic moderate to severe restless legs syndrome. • Sleep disorders lendormin® lendorm® lindormin® sintonal® brotizolam Short-term treatment of disorders of initiating and maintaining sleep. Diseases of the central nervous system 71 product portfolio Branded Prescription Medicines Cardiovascular diseases Cardiovascular diseases are the leading causes of death Acute myocardial infarction in many countries, and are still increasing in preva- An acute myocardial infarction, or heart attack, is an lence. acute event that occurs when a thrombus or clot suddenly prevents blood flow to an area of the heart mus- Stroke cle. Unless the blood flow is restored quickly, the affect- Stroke is the rapidly developing loss of brain functions ed section of heart muscle becomes permanently due to a blockage of the blood flow to the affected brain damaged. Heart attack is a leading cause of death in all tissue. This can be due to ischaemia (lack of blood sup- developed countries. ply) caused by thrombosis or embolism, or due to a bleeding. As a result, the affected area of the brain is unable to function and the damage quickly becomes permanent, if untreated. Stroke is an acute event needing emergency diagnosis and intervention. Stroke is one of the leading causes of death and long-term disability in the developed world. Symptoms of a transient ischaemic attack (TIA) are similar to stroke, but lasting for only a few minutes or hours. As a TIA may precede a stroke, emergency medical care and subsequent preventive treatment is necessary. 72 Boehringer Ingelheim annual report 2010 Indications • Essential hypertension • Cardiovascular prevention Brand names Active ingredients micardis® micardisplus® micardis® plus micardis® hct co-micardis® telmisartan; telmisartan, hydrochlorothiazide Treatment of essential hypertension. For the reduction of the risk of myocardial infarction (heart attack), stroke or death from cardiovascular (CV) causes in patients 55 years of age or older at high risk of developing major CV events who are unable to take ACE inhibitors (USA). For the reduction of cardiovascular morbidity in patients with manifest atherothrombotic cardiovascular disease (history of coronary heart disease, stroke or peripheral arterial disease), or type 2 diabetes mellitus with documented target organ damage (EU). • Hypertension twynsta® micamlo® telmisartan, amlodipine Treatment of hypertension alone or with other antihypertensive agents. As initial therapy in patients likely to need multiple antihypertensive agents to achieve their blood pressure goals (USA). Add on therapy in adult patients with not adequately controlled blood pressure on amlodipine and replacement therapy in adult patients receiving telmisartan and amlodipine from separate tablets (EU). • Secondary prevention of stroke or transient ischaemic attacks (TIA) aggrenox® asasantin® asasantin® retard dipyridamole, acetylsalicylic acid Prevention of stroke following a first stroke or transient ischaemic attacks. • Hypertension catapresan® catapres® catapressan® atensina® clonidine All forms of high blood pressure, unless caused by phaeochromocytoma. • Acute myocardial infarction, acute massive pulmonary embolism • Acute ischaemic stroke • Catheter clearance due to thrombotic occlusion actilyse® alteplase Fibrinolytic treatment of acute myocardial infarction, acute massive pulmonary embolism, acute ischaemic stroke and for catheter clearance due to thrombotic occlusion. Cardiovascular diseases 73 product portfolio Branded Prescription Medicines Cardiovascular diseases (continued) Hypertension and cardiovascular disease Venous thrombo-embolism Hypertension, also referred to as high blood pressure, is Patients undergoing orthopaedic surgery are at consid- a chronic disease in which the blood pressure is chroni- erable risk of developing deep vein thrombosis in the cally elevated. Hypertension is one of the major risk fac- legs or a potentially fatal pulmonary embolism. Both tors for strokes, heart attacks, heart failure and chronic are also known as venous thrombo-embolism (VTE). In renal failure. the longer term, thrombo-embolic events may recur and chronic venous insufficiency and/or pulmonary hyper- About one billion people worldwide are affected by hy- tension may occur. To prevent VTE events and its conse- pertension. The prevalence of essential hypertension in- quences, patients should receive some kind of thrombo- creases steadily with age. As the world population ages prophylaxis. and preventive strategies in terms of lifestyle changes are so far failing, the prevalence of hypertension is set Atrial fibrillation to increase even further. Patients with atrial fibrillation (AF) are at higher risk of developing blood clots, which can cause a disabling Hypertension is a major risk factor for cardiovascular stroke if the clots travel to the brain. AF is the most morbidity and mortality. The organs at risk are primari- common type of arrhythmia. It is associated with a hy- ly the heart, the main blood vessels, the brain and the percoagulable state which predisposes to stroke and sys- kidneys. The primary goal of any antihypertensive treat- temic embolism, which can be prevented by effective ment is to prevent cardiovascular events, such as heart chronic anticoagulation. attacks or strokes, and finally to reduce cardiovascular mortality. Cardiovascular disease (CVD) is responsible for nearly one in three deaths worldwide and is the number one cause of death. Proper control of treatable risk factors and disease are vital for the prevention of cardiovascular events. 74 Boehringer Ingelheim annual report 2010 Indications Brand names Active ingredients • Acute myocardial infarction metalyse® tenecteplase Fibrinolytic treatment of acute myocardial infarction. • Ventricular tachycardia mexitil® mexiletine Serious symptomatic ventricular tachycardic heart rhythm disturbances. • Hypertension motens® caldine® tens® midotens® lacidipine Treatment of essential hypertension. • Primary prevention of venous thrombo-embolic events after orthopaedic surgery pradaxa® pradax® pradaxar® dabigatran etexilate Primary prevention of venous thromboembolic events (VTE) in adults after elective total hip or knee replacement surgery. • Stroke prevention in atrial fibrillation pradaxa® pradax® prazaxatm dabigatran etexilate Prevention of stroke and blood clots in patients with abnormal heart rhythm (atrial fibrillation). Cardiovascular diseases 75 product portfolio Branded Prescription Medicines Infectious diseases HIV infection/acquired immune deficiency syndrome (AIDS) Acquired immune deficiency syndrome (AIDS) is a set of symptoms and infections resulting from the damage to the human immune system caused by the human immunodeficiency virus (HIV). If untreated, this condition progressively reduces the effectiveness of the immune system and leaves individuals susceptible to opportunistic infections and tumours. Babies of infected mothers are at risk of getting the virus during pregnancy, childbirth or breastfeeding. Urological diseases Benign prostate hyperplasia Benign prostate hyperplasia (BPH) refers to an enlargement of the prostate in middle-aged and elderly men, which can lead to problems with urination and consequent infections of the urinary tract. 76 Boehringer Ingelheim annual report 2010 Indications Brand names Active ingredients • HIV/AIDS viramune® nevirapine Available as tablets and suspension for adults and children – for the combination therapy of HIV-1 infection and for the prevention of mother-to-child transmission of HIV-1 in pregnant women who are not taking antiretroviral therapy at time of labour. • HIV/AIDS aptivus® tipranavir Capsule and oral solution – co-administered with 200 mg of ritonavir, is indicated for combination antiretroviral treatment of HIV-1-infected patients with evidence of viral replication, who are treatment-experienced and infected with HIV-1 strains resistant to more than one protease inhibitor. Brand names Active ingredients • Benign prostate hyperplasia (BPH) flomax® alna® josir® pradif® secotex® urolosin® tamsulosin Lower urinary tract symptoms (LUTS) associated with benign prostate hyperplasia (BPH). • Benign prostate hyperplasia (BPH) flomax® cr alna® ocas® pradif® t pradif® ocas® secotex® adv secotex® ocas® tocas® urolosin® ocas® tamsulosin Lower urinary tract symptoms (LUTS) associated with benign prostate hyperplasia (BPH). Indications Infectious diseases / Urological diseases 77 product portfolio Consumer Health Care Cough and cold mucosolvan® (ambroxol) and bisolvon® (bromhexine) respiratory tract, which play an important role in the are both indicated for secretolytic therapy in broncho- body’s natural defence mechanisms. Ambroxol also pulmonary diseases associated with abnormal mucus stimulates synthesis and release of surfactant by type II secretion and impaired mucus transport. pneumocytes. Cough is the most common symptom of clinical impor- bisolvon® (bromhexine), available for all age groups, tance and the most frequent reason to consult a doctor. has been on the market since 1963. Bromhexine is con- The clinical symptoms of cough and expectoration have tained in various formulations of bisolvon®. There are led to the development of drugs that affect respiratory high and low strength syrups 8 mg/5 ml, 4 mg/5ml, tab- mucus, i. e. the mucoactive agents. lets and soluble tablets (both with 8 mg bromhexine) and solution for oral use (10 mg/5 ml), adapted to the mucosolvan® (ambroxol), which promotes mucus clear- need of the patients. Bromhexine is a synthetic deriva- ance, facilitates expectoration and eases productive tive of the herbal active ingredient vasicine. It has been cough, allowing patients to breathe freely and deeply, is shown to increase the proportion of serious bronchial the world’s leading cough brand. It is available in many secretion, making it more easily expectorated. Bromhex- different formulations. ine also enhances mucus transport by reducing mucus viscosity and by activating the ciliated epithelium. Ambroxol is a mucoactive drug with several properties, including secretolytic and secretomotoric actions that restore the physiological clearance mechanisms of the Sore throat mucoangin® is the best documented product in its cat- In addition to its secretolytic activity, ambroxol is a very egory of pain relief in acute sore throat and is well toler- potent inhibitor of the neuronal sodium channels. ated. Therefore mucoangin® (ambroxol) has a strong local anaesthetic effect, described first in the late 1970s, but Pain in sore throat is the hallmark of acute pharyngitis, usually caused by a viral infection. The infection is as a rule self-limited and the patient recovers normally in a couple of days. What is most bothersome for the patient is the continuous pain in the throat maximised when swallowing. The main goal of the treatment is thus to reduce pain. 78 Boehringer Ingelheim annual report 2010 explained and confirmed in more recent work. Indications Brand names Active ingredients • Acute and chronic bronchopulmonary diseases mucosolvan® mucosan® surbronc® lasolvan® mucopect® ambroxol Secretolytic therapy in acute and chronic bronchopulmonary diseases associated with abnormal mucus secretion and impaired mucus transport. • Acute and chronic bronchopulmonary diseases bisolvon® bromhexine Secretolytic therapy in acute and chronic bronchopulmonary diseases associated with abnormal mucus secretion and impaired mucus transport. • Irritable cough silomat® dmp bisoltussin® bisolvon® Dry bisolsek TM bisolvon® antitusivo dextrometorphan Symptomatic treatment of irritable, non-productive cough. Brand names Active ingredients mucoangin® lysopadol® lysopain® dol ambroxol Indications • Sore throat Pain relief in acute sore throat. Cough and cold / Sore throat 79 product portfolio Consumer Health Care Gastrointestinal diseases In our gastrointestinal portfolio, we offer several Abdominal cramping, pain and discomfort are common brands, such as dulcolax®, dulcolax® balance, dul- ailments. Approximately one in four persons worldwide cofibre®, laxoberal®, buscopan®, buscogast® for suffers on a regular basis. heartburn relief as well as the heartburn brand zantac® and buscopan® antiacido. buscopan® is an antispasmodic product with the active ingredient hyoscine butylbromide. The product is Constipation is a common problem. dulcolax® the basically a natural substance extracted from Duboisia worldwide No. 1 selling laxative remedy for constipa- plant species as scopolamine (hyoscine) and chemically tion relief. modified to the quaternary ammonium compound hyoscine butylbromide. As an antispasmodic product, Within the dulcolax® franchise, Boehringer Ingelheim buscopan® acts directly on the site of abdominal pain by markets a range of products for the treatment, regula- relaxing the muscles of the gastrointestinal tract. tion and prevention of intestinal irregularity and disruption. The primary ailment within this area is consti- This means buscopan® relieves abdominal pain by di- pation, for which dulcolax® tablets are today the main rectly treating its main cause – abdominal cramp or method of treatment. spasm. dulcolax® tablets have a special enteric “comfort coat- Several buscopan® line extensions are available today – ing” which ensure that the active ingredient in dulcolax® the mono-variant and in different combinations with tablets, bisacodyl, is taken to where it needs to act – the analgesics (paracetamol, ibuprofen and metamizol/ colon. Here, in the colon, the colonic juices activate the dipyrone) – and different formulations (tablets, drops, key ingredient which then relieve the constipation. Here suppositories, syrup and solutions for intravenous injec- it stimulates the natural movement of the bowels to pro- tion). vide gentle, predictable relief within 6 –12 hours. One to two tablets taken before going to bed will still provide The umbrella brand buscopan® now also offers bus- relief the next morning. cogast® and buscopan® antiacido for heartburn re- dulcolax® is specifically formulated to provide effec- with just one capsule per day – giving the stomach time tive, predictable relief of constipation. dulcolax® offers to recover. The new buscopan® antiacido effervescent a reliable range of products. tablets is giving quickly powerful soothing relief for lief. buscogast® stops heartburn for up to 24 hours even tough heartburn that lasts for a full 12 hours. Other products within the dulcolax® franchise include dulcoease® (stool softener), dulcoenema® and dulcofibre®. 80 Boehringer Ingelheim annual report 2010 Indications Brand names Active ingredients • Constipation dulcolax® bisacodyl, sodium picosulphate Laxative for use in patients suffering from constipation. In preparation for diagnostic procedures, in pre- and postoperative treatment, and in conditions which require defecation to be facilitated. • Constipation dulcolax® balance dulcolax® m balance macrogol Symptomatic treatment of constipation for adults and children from eight years onwards. • Intestinal irregularity dulcofibre® dulcofiber® glucomannan Food supplement, helps intestinal regularity, supports regulation of bowel movement. • Constipation laxoberal® laxoberon® guttalax® dulcolax® np sodium picosulphate Laxative for use in cases of constipation and in conditions which require defecation to be facilitated. • Abdominal cramping buscopan® buscapina® hyoscine butylbromide Treatment for the relief of abdominal cramping, pain and discomfort. • Heartburn zantac® (*) buscopan® antiacido ranitidine Relieves heartburn associated with acid indigestion and sour stomach. Prevents heartburn associated with acid indigestion and sour stomach brought on by certain foods and beverages. omeprazole Symptomatic treatment of heartburn or acidic reflux in adults due to hyperacidity. * only available in the USA • Heartburn buscogast® buscasan® 24 Gastrointestinal diseases 81 product portfolio Consumer Health Care Vitamins and supplements pharmaton® is a multivitamin and mineral supple- pharmaton® matruelle® is a pre-natal multivitamin ments brand developed to enhance people’s physical for active planning, pregnant and lactating women, con- and mental well-being. A full range of products adapted taining all important micronutrients for mother and to the needs of different target audiences has been de- baby, such as vitamins, minerals and omega-3 fatty acids, veloped that work in harmony with the body. to cover the increased needs for these substances in those particular periods. Moreover, it helps to protect pharmaton®, a range of products for adults, contains a against embryonal neural tube diseases of the foetus synergic and unique blend of vitamins, minerals and and against iron and folic acid anaemia during preg- trace elements and standardised Ginseng G115 extract. nancy. The main target indications are: exhaustion, tiredness, decreasing concentration and mental alertness. Numer- pharmaton® cardioactive, a product designed for ous clinical studies have shown that a regular intake of adults over 40 years, contains a blend of vitamins and pharmaton® has a positive effect on mental and physi- minerals combined with omega-3 fatty acids to help cal performance and well-being. maintain cardiovascular health. pharmaton® kiddi®, a range of products designed for children, contains selected vitamins, minerals and key nutrients that are very important for growth. It is especially recommended in the preventive treatment of vitamin deficiencies. Urological diseases Benign prostate hyperplasia (BPH) refers to an enlargement of the prostate in middle-aged and elderly men, which can lead to lower urinary tract symptoms (LUTS), such as frequent nighttime urination, urge to urinate every few hours, weak flow and feeling of unfinished urinating. 82 Boehringer Ingelheim annual report 2010 Indications Brand names Active ingredients • Tiredness, decreasing concentration, increased demand for vitamins pharmaton® standardised ginseng extract, vitamins, minerals, trace elements For states of exhaustion ( e. g. caused by stress), tiredness, feeling of weakness, decreasing concentration as well as decreasing mental alertness. • Increased demand for vitamins in childhood pharmaton® kiddi® vitamins, minerals, amino acids Increasing demand for vitamins, minerals and amino acids, especially during the period of growth. Preventive treatment in case of vitamin deficiencies, e. g. restricted diets, convalescence, loss of appetite, following illness, infection or surgery. • Prophylaxis of iron and folic acid deficiency during pregnancy pharmaton® matruelle® vitamins, minerals, trace elements, omega-3 fatty acids [docosahexaenoic acid (DHA)] For women of child-bearing age intending to become pregnant, already pregnant and lactating, to cover the increased needs for vitamins, minerals, trace elements and DHA. To provide protection against embryonal neural tube diseases of the foetus, and prophylaxis of iron and folic acid anaemia during pregnancy. • Maintenance of cardiovascular health pharmaton® cardioactive vitamins, minerals, trace elements and fish oil (omega-3 fatty acids rich in EPA and DHA) Helps to maintain cardiovascular health. Covers the daily needs for vitamins, minerals, trace elements and fish oil (omega-3 fatty acids rich in EPA and DHA), by acting complementary to daily nutrition. Brand names Active ingredients flomax relief® (*) tamsulosin Indications • Benign prostate hyperplasia (BPH) Treatment of lower urinary tract symptoms (LUTS) of a common condition called benign prostate hyperplasia (BPH). * only available in UK Vitamins and supplements / Urological diseases 83 product portfolio Consumer Health Care Leg vein health Under the brand name antistax®, Boehringer Red vine leaf extract, the active ingredient in antistax® Ingelheim markets a range of products developed for products, works on the endothelium inside the veins by the prevention and treatment of symptoms attributable sealing them from the inside, thereby reducing the to known venous insufficiency. The most common swelling and the sensation of pain and heaviness. symptoms of venous insufficiency observable for consumers are varicose veins, oedema of the lower leg, Products available in the antistax® range include heavy or tired legs, sensation of tension, tingling and antistax® tablets, antistax® capsules and antistax® pain. antistax® capsules and tablets are scientifically creme. proven to help maintain healthy leg vein circulation. Both cosmetic products antistax® leg chilling gel Heavy, aching and tired legs often occur after long peri- and antistax® leg cooling spray complete the range. ods of standing or sitting, and increase at the end of the day or during the summer when outdoor temperatures rise. antistax® tablets and antistax® capsules offer effective treatment of the described symptoms. antistax® helps to keep the fluid that flows out of the capillaries into the surrounding tissue, at normal levels, even when standing or sitting for a long time. Pain The brand thomapyrin® comprises products for the For this reason, the triple combination is recommended treatment of acute pain of mild to intermediate intensity. by many national and international medical societies as first choice acute treatment for tension type headache thomapyrin® classic is the core product, which is com- and migraine. thomapyrin® is positioned as the expert posed of a triple combination of acetylsalicylic acid, pa- treatment of headache. Several line extensions are racetamol and caffeine. The three components suppress available: thomapyrin® classic for normal headache, pain synergistically via interaction with several pain- thomapyrin® intensiv for stronger headache, thomapyrin® related molecular mechanisms. As a result thomapyrin® medium for milder headache, and thomapyrin® effer- classic disposes of a fast and superior efficacy compared vescent as a galenic alternative. with its single components which is, amongst others, well proven by state-of-the-art clinical studies. 84 Boehringer Ingelheim annual report 2010 Indications Brand names Active ingredients • Chronic venous insufficiency antistax® red vine leaf extract Prevention and treatment of symptoms of chronic venous insufficiency; varicose veins, leg oedema, painful swollen legs, tingling legs, tired and heavy legs. • Heavy, tired legs antistax® leg chilling gel antistax® leg cooling spray cooling, caring substances, red vine leaf extract Symptomatic treatment of heavy, tired legs. Brand names Active ingredients thomapyrin® classic thomapyrin® intensiv (*) acetylsalicylic acid, paracetamol, caffeine Indications • Pain For adults and adolescents older than twelve years for acute treatment of mild to moderate headache, migraine attacks, with and without aura, and for the treatment of tension-type headache. * only available in Germany Leg vein health / Pain 85 product portfolio Animal Health Food producing animals – swine Infectious respiratory diseases Pain and inflammatory diseases ingelvac circoflex® is the first one-dose piglet vaccine metacam® as a member of the class of non-steroidal for the reduction of the early and late form of porcine anti-inflammatory drugs (NSAID) marries the need for circovirus disease (PCVD). This vaccine provides signifi- maintained profitability and the concern for animal cant reduction of mortality in the acute phase of PCVD welfare in animal production. as well as improved growth rates in the chronic phase of the disease. ingelvac circoflex® protects with minimal Due to its long-acting feature and its outstanding effi- systemic adverse reactions or injection site swellings. cacy in controlling inflammatory symptoms, it helps Recently, the European Commission approved the mix- minimising losses from inflammation and maintaining ing of ingelvac circoflex® with ingelvac mycoflex®. profitability in disease situations. At the same time, ingelvac® prrs mlv is licensed for the active immunisa- metacam® effectively controls pain and supports the tion against the respiratory and reproductive form of restoration of the well-being in farm animals. The use porcine reproductive and respiratory syndrome (PRRS). of metacam® is convenient and inflicts no stress on animals due to its low-volume, one-shot feature. ingelvac® m. hyo and ingelvac mycoflex® are licensed for the active immunisation of pigs against enzootic metacam® is licensed for the use in swine suffering from pneumonia (EP) in a one-dose regimen. Through their non-infectious locomotor disorders. In addition, it is advanced depot-adjuvant systems they provide a long- used in the treatment of puerperal septicaemia and tox- lasting and effective protection until slaughter, proven aemia (mastitis-metritis-agalactia syndrome) as well as even in high-challenge situations. for the relief of post operative pain associated with minor soft tissue surgery such as castration. Infectious enteric diseases enterisol® ileitis is the first and only vaccine against ileitis caused by Lawsonia intracellularis. It is licensed to improve weight gain and to reduce growth variability associated with the disease. enterisol® ileitis helps to reduce the total antimicrobial use in pork production. 86 Boehringer Ingelheim annual report 2010 Indications Brand names Active ingredients • Infectious respiratory diseases ingelvac circoflex® recombinant vaccine (porcine circovirus type 2, PCV 2) For the active immunisation of pigs over the age of two weeks against porcine circovirus type 2 to reduce mortality, clinical signs – including weight loss – and lesions in lymphoid tissues associated with porcine circovirus diseases (PCVD). In addition, vaccination has been shown to reduce PCV 2 nasal shedding, viral load in blood and lymphoid tissues, and duration of viraemia. • Infectious respiratory diseases ingelvac® m.hyo inactivated vaccine (Mycoplasma hyopneumoniae) For active immunisation of pigs from three weeks of age to reduce lung lesions following infections with Mycoplasma hyopneumoniae. • Infectious respiratory diseases ingelvac® prrs mlv attenuated live vaccine (PRRS virus) For the active immunisation of swine from three weeks of age against the respiratory and reproductive form of PRRS virus infection (porcine reproductive and respiratory syndrome). • Infectious respiratory diseases ingelvac mycoflex® inactivated vaccine (Mycoplasma hyopneumoniae) For active immunisation of pigs from three weeks of age to reduce lung lesions following infections with Mycoplasma hyopneumoniae. • Infectious enteric diseases enterisol® ileitis attenuated live vaccine (Lawsonia intracellularis) For active immunisation of pigs from three weeks of age and older to reduce intestinal lesions caused by Lawsonia intracellularis infection and to reduce growth variability and loss of weight gain associated with the disease. • Pain and inflammatory diseases metacam® Meloxicam Alleviation of inflammation and pain in muscolo-skeletal disorders (dog, cat, pigs, horse) after surgery (dog, cat, pigs) and during colic (horse). As adjunctive treatment of diarrhoea, respiratory disease and acute mastitis (cattle) as well as mastitis-metritis-agalactia syndrome and treatment of castration (pigs). Food producing animals – swine 87 product portfolio Animal Health Food producing animals – cattle Mastitis Pain and inflammatory diseases mamyzin® Injection contains penethamate hydroiodide, metacam® as a member of the class of non-steroidal a prodrug of penicillin G which offers a unique pharma- anti-inflammatory drugs (NSAIDs) combines the need cokinetic profile. for maintained profitability and the concern for animal welfare in animal production. Achieving very high absorption and accumulation rates of its active principle in the udder, mamyzin® is an Due to its long-acting feature and its outstanding effica- excellent first line treatment of (penase negative) cy in controlling inflammatory symptoms, it helps mini- Staphylococcus aureus and Streptococcus spp. Highly mising losses from inflammation and maintaining prof- suitable for combination therapy, mamyzin® is addition- itability in animals suffering from disease. At the same ally an ideal tool in whole herd sanitation programmes time metacam® effectively controls pain and supports where it is used to control subclinical mastitis during the restoration of well-being in farm animals. The use lactation, as initial dry-off treatment in problem herds, of metacam® is convenient and inflicts no stress on ani- and for metaphylaxis in heifers. mals due to its low-volume, one-shot feature. benestermycin® is a broad spectrum and long-acting metacam® is licensed for use in cattle suffering from antibiotic preparation designed to effectively treat exist- respiratory disease. Also, it is indicated in calves affected ing infections at dry-off and to prevent new infections by diarrhoea and as adjunctive therapy in the treatment during the dry period in dairy cattle. of mastitis in lactating cattle. ubrolexin® delivers enhanced bactericidal activity through a specifically designed combination of two complementary targeted antibiotics working in synergy. ubrolexin® marks a new quality of broad spectrum mastitis treatment because it achieves uncompromised efficacy on both ends of the pathogen spectrum. This makes ubrolexin® a simple-to-use, “no compromise” product for the routine treatment of clinical mastitis. 88 Boehringer Ingelheim annual report 2010 Indications Brand names Active ingredients • Mastitis mamyzin® penethamate hydroiodide For the treatment of mastitis in dairy cows caused by Gram-positive pathogens. • Mastitis benestermycin® penethamate hydriodide benethamine penicillin framycetin sulphate Treatment of subclinical infections present at drying off and assistance in preventing new infections as well as acute clinical mastitis during the dry period. • Mastitis ubrolexin® cefalexin (as monohydrate), kanamycin (as monosulphate) Treatment of clinical mastitis in lactating dairy cows for bacteria susceptible to the combination of cefalexin and kanamycin such as Staphylococcus aureus, Streptococcus dysgalactiae, Streptococcus uberis and Escherichia coli. • Infectious respiratory diseases express® (*) attenuated live and inactivated vaccines (IBRV, BVDV, PI3V, BRSV, C. fetus and Lepto spp.) For prevention of reproductive and respiratory diseases in cattle. Meloxicam Alleviation of inflammation and pain in muscolo-skeletal disorders (dog, cat, pigs, horse) after surgery (dog, cat, pigs) and during colic (horse). As adjunctive treatment of diarrhoea, respiratory disease and acute mastitis (cattle) as well as mastitis-metritis-agalactia syndrome (pigs). * only available in Canada and USA • Pain and inflammatory diseases metacam® Food producing animals – cattle 89 product portfolio Animal Health Companion animals – small animals The main small animals products of Boehringer Ingel- metacam® is a non-steroidal anti-inflammatory drug heim Animal Health address major chronic diseases: (NSAID). It is available as oral suspension, tablets and heart failure and osteoarthritis. injectable solution for dogs and as oral suspension and injectable solution for cats. In dogs, the indications in- As the first of a new class of heart treatments termed in- clude the alleviation of inflammation and pain in both odilators, vetmedin® has been shown to significantly acute and chronic musculo-skeletal disorders as well as improve the clinical signs and extend the life expectan- the reduction of post-operative pain following surgery. cy in dogs with congestive heart failure. vetmedin® In cats, the indications include the alleviation of inflam- works through two complementary modes of action; it mation and pain in chronic musculo-skeletal disorders opens up the blood vessels taking blood to and away as well as the recently approved alleviation of mild to from the heart, thereby lowering the pressure on the moderate post-operative pain following surgical proce- heart and reducing the work the heart has to do to dures. The variety of formulations offers veterinarians pump blood around the dog’s body. At the same time, and owners the flexibility to use the formulations they vetmedin® has a direct effect on the heart muscle, help- prefer to manage the various levels of inflammation and ing it to beat stronger and pump blood more efficiently. pain associated with the licensed indications. prozinc® is an aqueous protamine zinc (PZI) suspension of recombinant human insulin that is used to reduce hyperglycaemia in cats with diabetes mellitus. Companion animals – horse The main horse products of Boehringer Ingelheim metacam® is indicated for the alleviation of inflamma- Animal Health focus on the therapeutic areas respiratory tion and relief of pain in both acute and chronic mus- disease, lameness and colic. culo-skeletal disorders in horses. It is available as oral suspension and as solution for injection. The solution ventipulmin® is a treatment of acute and chronic respi- for injection is also indicated for the relief of pain asso- ratory disease where airway obstruction due to bron- ciated with equine colic, complementing buscopan® chospasm and/or mucus accumulation is a contributing compositum. factor and improved mucociliary clearance is desirable. ventipulmin® can be used alone or as adjunctive thera- In North America there is also a comprehensive range of py in chronic obstructive pulmonary disease (COPD) equine vaccines available. and in acute, sub-acute and chronic respiratory allergic conditions. 90 Boehringer Ingelheim annual report 2010 Indications Brand names Active ingredients • Congestive heart failure vetmedin® Pimobendan Treatment of congestive heart failure in dog, caused by dilatative cardiomyophathy or by cardiac valve insufficiency (mitral valve and/or tricuspidal valve regurgitation associated with typical clinical signs, e.g. coughing, laboured breathing, reduced tolerance to exercise or ascites. • Pain and inflammatory diseases metacam® Meloxicam In dogs, the indications include the alleviation of inflammation and pain in both acute and chronic musculo-skeletal disorders as well as the reduction of postoperative pain following surgery. In cats, the indications include the alleviation of inflammation and pain in chronic musculo-skeletal disorders as well as the recently approved alleviation of mild to moderate post-operative pain following surgical procedures. For the reduction of hyperglycaemia and hyperglycaemia associated clinical signs in cats with diabetes mellitus. prozinc® protamine zinc recombinant human insulin Brand names Active ingredients • Acute and chronic obstructive respiratory diseases ventipulmin® Clenbuterol Respiratory diseases attended by bronchial spasms, like subacute and chronic bronchiolitis, chronic-obstructive pulmonary disease (COPD), auxillary with acute bronchitis and pneumonia of bronchia. • Pain and inflammatory diseases metacam® Meloxicam Alleviation of inflammation and pain in muscolo-skeletal disorders (dog, cat, pigs, horse) after surgery (dog, cat, pigs) and during colic (horse). As adjunctive treatment of diarrhoea, respiratory disease and acute mastitis (cattle) as well as mastitis-metritis-agalactia syndrome (pigs). • Feline diabetes mellitus Indications Companion animals – small animals / horse 91 impressum If you have any queries or comments, please contact us. Boehringer Ingelheim GmbH Binger Strasse 173 55216 Ingelheim Germany Telephone + 49 6132 77-0 Fax + 49 6132 72-3000 Contact Corporate Communications Dr Bernd Mann Telephone + 49 6132 77-92300 Fax + 49 6132 72-92300 E-mail [email protected] Internet www.boehringer-ingelheim.com Issued by Boehringer Ingelheim GmbH Design and layout mpm · Corporate Communication Solutions www.digitalagentur-mpm.de Printed by Süddeutsche Verlagsgesellschaft, Ulm Copyright © Boehringer Ingelheim GmbH, 2011 All rights reserved. No part of this Annual Report 2010 may be reproduced or transmitted in any form or by any means, electronic or photocopy, without permission in writing from Boehringer Ingelheim GmbH. Figures from third parties used in the annual report are based on data available at the time the financial statement was drawn up. 92 Boehringer Ingelheim annual report 2010 C. H. Boehringer Sohn AG & Co. KG, Ingelheim Comparison of Balance sheet / financial data 2001 – (in millions of EUR) Assets (as of December 31) 2001 2002 2003 322 302 242 Tangible assets 2,467 2,840 2,767 Financial assets 1,008 1,689 2,462 Fixed assets 3,797 4,831 5,471 Inventories 1,014 971 1,000 Accounts receivable (incl. deferred charges and deferred taxes) 2,314 2,360 2,537 Liquid funds 1,002 1,055 1,134 Current assets 4,330 4,386 4,671 Total assets 8,127 9,217 10,142 Liabilities and equity (as of December 31) 2001 2002 2003 200 178 178 2,753 2,818 3,139 Intangible assets Shareholders’ capital Reserves (incl. currency conversion difference) Net income 401 537 529 Total equity 3,354 3,533 3,846 1 203 188 Group equity 3,355 3,736 4,034 Provisions (incl. deferred taxes) 3,150 3,568 3,963 Liabilities (incl. deferred charges) 1,622 1,913 2,145 Total liabilities 4,772 5,481 6,108 Total liabilities and equity 8,127 9,217 10,142 Minority interests Summary of selected financial data 2001 2002 2003 Net sales 6,694 7,580 7,382 Operating income 980 1,082 901 Operating income as % of net sales 14.6 14.3 12.2 Income after taxes 401 551 537 Income after taxes as % of net sales 6.0 7.3 7.3 Return on shareholders’ equity (in %) 13.6 16.0 15.0 Equity ratio (in %) 41.3 38.3 37.9 Cash flow 1,117 1,049 1,059 Financial funds 1,645 2,645 3,516 Personnel costs 1,916 2,175 2,252 28.6 28.7 30.5 27,980 31,843 34,221 Personnel costs as % of net sales Average number of employees Research and development costs Comparison of balance sheets / financial data 2001 – 2010 1,019 1,304 1,176 R & D as % of net sales 15.2 17.2 15.9 Investments in tangible assets 548 634 516 Depreciation of tangible assets 305 340 354 – 2010 2004 2005 2006 2007 2008 2009 2010 267 233 554 547 539 745 736 3,314 2,712 2,900 2,886 2,972 3,177 3,219 2,756 3,396 3,043 1,638 1,739 1,699 3,168 5,735 6,529 6,483 5,157 5,455 5,663 7,218 1,085 1,229 1,280 1,387 1,561 1,801 1,850 2,477 3,013 3,137 2,912 3,496 3,663 4,047 1,333 1,247 945 1,015 1,312 3,877 3,118 4,895 5,489 5,362 5,314 6,369 9,341 9,015 10,630 12,018 11,845 10,471 11,824 15,004 16,233 2004 2005 2006 2007 2008 2009 2010 178 178 178 178 178 178 178 3,297 2,940 3,275 1,385 3,101 3,964 5,408 888 1,491 1,722 1,809 1,424 1,759 888 4,363 4,609 5,175 3,372 4,703 5,901 6,474 193 216 188 167 190 179 0 4,556 4,825 5,363 3,539 4,893 6,080 6,474 4,172 4,958 4,641 4,726 5,120 5,731 6,598 1,902 2,235 1,841 2,206 1,811 3,193 3,161 6,074 7,193 6,482 6,932 6,931 8,924 9,759 10,630 12,018 11,845 10,471 11,824 15,004 16,233 2004 2005 2006 2007 2008 2009 2010 8,157 9,535 10,574 10,952 11,595 12,721 12,586 1,372 1,923 2,140 2,100 1,980 2,239 1,896 16.8 20.2 20.2 19.2 17.1 17.6 15.1 908 1,514 1,729 1,812 1,428 1,764 888 11.1 15.9 16.4 16.5 12.3 13.9 7.1 23.1 34.2 37.4 35.0 42.2 37.4 15.0 41.0 38.4 43.7 32.2 39.8 39.3 39.9 1,430 2,069 2,317 2,392 1,997 2,409 2,234 4,015 4,585 3,934 2,581 2,932 5,384 6,113 2,443 2,671 2,836 2,886 3,004 3,221 3,358 29.9 28.0 26.8 26.4 25.9 25.3 26.7 35,529 37,406 38,428 39,800 41,300 41,534 42,224 1,232 1,360 1,574 1,900 2,109 2,215 2,453 15.1 14.3 14.9 17.3 18.2 17.4 19.5 427 532 596 654 665 630 519 377 439 419 432 453 470 498 www.boehringer-ingelheim.com