Corporate Magazine 2012 - Boehringer Ingelheim

our marketsperspectives for established marketsBOEHRINGER INGELHEIM IN GERMANYBoehringer Ingelheim has13,103 employees (meanheadcount 2012) in Germany.In 2012, it achieved a turnoverof EUR 1.03bn.The assessment and price formationintroduced within theframework of the German lawon the reorganisation of thepharmaceutical market(Arzneimittelmarktneuordnungsgesetz– AMNOG)presents new challenges forthe pharmaceutical industryand Boehringer Ingelheim inGermany. Germany is, nevertheless,Boehringer Ingelheim’smost important researchand production location: 46%of its worldwide investmentand 60% of its global researchexpenditure benefits Germansites – most recently, the expansionof respimat® productionin Dortmund.These figures document thecompany’s commitment tothis location, despite the difficulthealthcare policy conditions.In September 2012, theBoehringer Ingelheim VeterinaryResearch Center (BIVRC)was inaugurated in Hannover,making it the company’s fourthGerman site.dortmundingelheimhannoverbiberachNumerous challengesBoehringer Ingelheim faces numerouschallenges due to this situation. On theone hand, it still wishes to offer productsalready introduced in the respectivemarkets, despite this difficult environment.On the other hand, launchesof new Boehringer Ingelheim productsare of the greatest importance.The divide must be bridged betweenconstructively pursuing savings measuresin crisis-hit countries and ensuringsupply for patients in affected countries.Frequently, patients receive prescriptionsfor innovative medicines becausethere is no therapeutic alternative. Forthis reason, the pharmaceutical industryhas where necessary accepted pricesthat are barely economically reasonable.The effects of the crisis are particularlypronounced in Greece. Beyond what isa special situation in the country, allother European markets are also undergoingtransition. Several countries areTHE SITUATION IN GERMANYThe significance of BoehringerIngelheim for Germany as alocation is made clear in anew study (WifOR) on thepharmaceutical industry asan economic factor. In Germany,Boehringer Ingelheimgenerates more than 11% ofthe total pharmaceutical valueadded (status 2010) andemploys almost 10% of thepharmaceutical industry’sworkforce in Germany. Over35,000 jobs are either directlyor indirectly secured by companyactivities.Our total tax and social insurancecontributions amountto almost EUR 1.2 billion – asignificant contribution tofinancing public sector budgets.Nearly two thirds of allbusiness turnover is generatedfrom a high and steadilygrowing export quota that isabove the average for thewhole economy.Furthermore, BoehringerIngelheim, with its high, aboveaveragelevel of investment,supports Germany overall as abusiness location and supportsit as a location for cutting-edgetechnology with wellabove-average investment inresearch and development.Healthcare is already todaythe largest business sector inthe German economy today,with a rising growth trend. Itsshare of the total economy is11%. Every seventh employedperson works in healthcare:8.5 million jobs are attributabledirectly or indirectly tohealthcare.Europe – markets in transition121