Corporate Magazine 2012 - Boehringer Ingelheim

Spain is one of the countries struck by the debt crisis.Not only are all administration levels in debt – communities,regional authorities, central government – butalso the bulk of private households. Public sector costcuts have also had an impact on healthcare spending.EUROPE – MARKETS INTRANSITIONEurope is a region of diverse significance for Boehringer Ingelheim,with the corporate headquarters in Germany and important research,development and manufacturing centres in the region. In addition,Europe makes a significant contribution to company turnover inPrescription Medicines.But markets are currently changing.Due to the economic and financial crisis,the states of Europe are under enormouspressure to reform. In order to reducenew indebtedness, or bring downaccumulated debt, countries are alsohaving to lower their expenditure. Thispressure to consolidate, which is burdeningmany European countries, leadsto savings in public sector budgets, alsoincluding spending on healthcare. Thecosts are rising steadily, not least due todemographic change. The saving measureshave an immediate impact onthe market situation for medicines thatqualify for reimbursement.The effects are varied:• Market access for new medicines hasbecome discernibly more difficult.New medicines are frequently takenup by European states only afterlong delays, even though they candemonstrate distinct clinical advantagesand cost-effectiveness.• In the course of cost reduction measures,prices for prescription medicinesqualifying for reimbursementare lowered in many countries. Theseprice cuts are, as a rule, unilateralpolitical decisions in which a companyhas no influence.• Many countries determine their pricesby means of a regular comparisonwith prices in other countries (internationalreference price). In combinationwith the aforementionedprice cuts, this reference price systemleads to a downward spiral effectfor innovative medicine pricesthrough extra ordinary cost-containingmeasures.120 Boehringer Ingelheim annual report 2012