#14 - Boehringer-Ingelheim

Binger Strasse 173
55216 Ingelheim (Germany)
Tel: (49) 6132 77 0
Fax: (49) 6132 77 3000
www.boehringer-ingelheim.com

PROFILE

Alessandro Banchi, chief executive officer of Boehringer-Ingelheim, had this to say about Pfizer's business model, "The model of growing through M&A is a failure and one day, behemoths such as Pfizer and Glaxo could unravel and be split into smaller companies." Maintaining that being independent has its virtues, he added, "We don't buy sales, we buy R&D." Perhaps he's right -- although it does call into question BI's acquisition of U.S. Zantac rights from J&J and Pfizer for $509.5 million -- BI continued its steady growth for the seventh consecutive year. While generic competition for Mobic flattened its growth curve in 2006, sales across all business areas grew 11%.

Prescription medicines made the greatest contribution to the company's growth, driven by Spiriva sales, up 45% to $1.8 billion, and BI's other two blockbusters, Micardis and Flomax, up 34% to $1.3 billion and up 28% to $1.2 billion, respectively. The capsule formulation of Flomax lost patent protection in several countries in March 2006 but remains under patent in the U.S. until October 2009. In an attempt to thwart losses, BI and partner Astellas developed a new tablet formulation of the drug using OCAS technology.

The biopharmaceuticals segment, consisting of contract manufacture and development, didn't fare as well, down 8% to $664 million. According to the company, this was expected due to special projects that enhanced 2005 sales. In April 2007, BI stepped up its contract manufacturing in Mexico, offering manufacturing and packaging services for pharmaceuticals from its existing plant, which had until recently only produced in-house drugs.

BI's pipeline progress in 2006 was highlighted by the approval of Mirapex for restless legs syndrome (RLS), both in the EU and the U.S., and the submission of its lead anti-thrombotic drug, dabigatran, in the EU early in 2007. Also, BI has been focusing on biopharmaceuticals and small-molecule drugs for new cancer therapies. Three candidates have moved into Phase II trials: BIBF 1120, an angiokinase inhibitor that works on three tumor growth factors; BIBW 2992, which irreversibly blocks the activity of two growth factor receptors (EGFR and HER 2), and BI 2536 an inhibitor of the cell cycle of a cancer cell.

BI has also launched four major clinical trials for flibanserin, a female arousal drug, involving 5,000 women in 220 locations, with the goal of applying for FDA approval in 2009. BI discovered the drug while trying to develop a new antidepressant and found that instead of hindering libido -- a common side effect of antidepressants -- it increased in women. There is much controversy as to whether the female version of Viagra is feasible, but if you're wondering if the company is taking the drug seriously, clearly the answer is yes. --KB

For the full profile, including pipeline and patent information, download the PDF.