Annual Report 2005 - Boehringer Ingelheim

of innovative medications. Our expectations for
2005 have been achieved or were exceeded in a
whole number of areas. On all of these grounds,
the Shareholders of Boehringer Ingelheim are
very satisfied with the course and results of the
business year.
Nevertheless, we must not ignore the potential
risks the pharmaceutical industry is facing.
Developing new, innovative medicines is a
protracted and expensive process. Only a few
research approaches end up as new medicines
and make it to market approval. The healthcare
policy environment in most countries, which is
afflicted with ever-increasing uncertainties and
continuously deteriorating, represents a
considerable burden for our industry. For capital
expenditure creating new jobs or developing
innovative medicines, we win many public
plaudits. Sadly, these fine-sounding words are in
reality not often followed by corresponding
deeds.
Instead of strengthening the power to innovate –
for which an appropriate risk premium is a
pre-condition, that is to say, reasonable prices
and adequate protection of innovations against
imitation – the precise opposite is happening.
Prices are being forced down, reimbursement
opportunities restricted and parallel imports
encouraged. In our opinion, supporting
economic progress in combating disease looks
different. When making future investment
decisions we will also have to take such aspects
into consideration.
In spite of such limitations, 2005 was once again
a successful business year. The Shareholders and
the Board of Managing Directors of Boehringer
Ingelheim took or prepared the decisions to
achieve the goals we have set in close coopera-
tion and coordination with the Advisory
Board. The decisions concerned the company’s
strategic direction, important business matters or
decisions on capital expenditure.
In regular joint sessions, the Advisory Board,
the Shareholders’ Committee and the Board of
Managing Directors have discussed the short
and medium-term development of the company
and the necessary decisions entailed.
The Shareholders of Boehringer Ingelheim thank
all employees, the Board of Managing Directors
and the Advisory Board for their successful work
and commitment in 2005. The path Boehringer
Ingelheim has taken as an independent family-
owned company also promises us growth and
success for the future.
Dr Heribert Johann
Chairman of the Shareholders’ Committee
The Shareholders’ Perspective