Business Development by Subgroup, Segment and Region

Pharmaceuticals

Key Data – Pharmaceuticals

 

 

Q1 2015

 

Q1 2016

 

Change

 

 

€ million

 

€ million

 

Reported %

Fx & p adj. %

2015 figures restated; Fx & p adj. = currency- and portfolio-adjusted; Fx adj. = currency-adjusted

1

For definition see “Calculation of EBIT(DA) Before Special Items.”

2

For definition see “Statements of Cash Flows.”

Sales

 

3,562

 

3,889

 

+9.2

+12.2

Change in sales

 

 

 

 

 

 

 

Volume

 

+7.3%

 

+12.7%

 

 

 

Price

 

−0.3%

 

−0.5%

 

 

 

Currency

 

+8.1%

 

−3.0%

 

 

 

Portfolio

 

−0.7%

 

0.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

€ million

 

€ million

 

Reported %

Fx adj. %

Sales by region

 

 

 

 

 

 

 

Europe

 

1,232

 

1,379

 

+11.9

+13.5

North America

 

899

 

989

 

+10.0

+9.1

Asia / Pacific

 

1,014

 

1,130

 

+11.4

+11.4

Latin America / Africa / Middle East

 

417

 

391

 

−6.2

+17.0

 

 

 

 

 

 

 

 

EBITDA1

 

1,061

 

1,261

 

+18.9

 

Special items

 

(24)

 

 

 

 

EBITDA before special items1

 

1,085

 

1,261

 

+16.2

 

EBITDA margin before special items1

 

30.5%

 

32.4%

 

 

 

EBIT

 

747

 

698

 

−6.6

 

Special items

 

(24)

 

(231)

 

 

 

EBIT before special items1

 

771

 

929

 

+20.5

 

Gross cash flow2

 

754

 

961

 

+27.5

 

Net cash flow2

 

812

 

734

 

−9.6

 

Sales

Sales of Pharmaceuticals rose by a very encouraging 12.2% (Fx & portfolio adj.) to €3,889 million in the first quarter of 2016. This was largely attributable to the continued strong development of our recently launched products. Xarelto™, Eylea™, Xofigo™, Stivarga™ and Adempas™ posted total combined sales of €1,187 million (Q1 2015: €898 million). Our Pharmaceuticals business expanded significantly in all regions on a currency-adjusted basis.

Best-Selling Pharmaceuticals Products

 

 

Q1 2015

 

Q1 2016

 

Change

 

 

€ million

 

€ million

 

Reported %

Fx adj. %

Fx adj. = currency-adjusted

1

Marketing rights owned by Regeneron Pharmaceuticals Inc., U.S.A.

Xarelto™

 

482

 

617

 

+28.0

+31.5

of which U.S.A.

 

78

 

86

 

+10.3

+9.9

Eylea™

 

253

 

372

 

+47.0

+48.9

of which U.S.A.1

 

0

 

0

 

.

.

Kogenate™ / Kovaltry™

 

261

 

296

 

+13.4

+13.7

of which U.S.A.

 

74

 

96

 

+29.7

+26.7

Mirena™ product family

 

232

 

248

 

+6.9

+7.2

of which U.S.A.

 

154

 

169

 

+9.7

+7.6

Nexavar™

 

196

 

213

 

+8.7

+10.8

of which U.S.A.

 

71

 

81

 

+14.1

+11.4

Betaferon™ / Betaseron™

 

208

 

190

 

−8.7

−7.9

of which U.S.A.

 

93

 

100

 

+7.5

+6.0

YAZ™ / Yasmin™ / Yasminelle™

 

181

 

172

 

−5.0

+3.1

of which U.S.A.

 

33

 

40

 

+21.2

+19.0

Adalat™

 

162

 

160

 

−1.2

+4.6

of which U.S.A.

 

1

 

1

 

.

−11.7

Glucobay™

 

130

 

139

 

+6.9

+10.1

of which U.S.A.

 

0

 

1

 

.

.

Aspirin™ Cardio

 

136

 

137

 

+0.7

+6.0

of which U.S.A.

 

0

 

0

 

.

.

Avalox™ / Avelox™

 

110

 

98

 

−10.9

−5.4

of which U.S.A.

 

0

 

0

 

.

.

Gadovist™

 

69

 

82

 

+18.8

+20.2

of which U.S.A.

 

21

 

27

 

+28.6

+21.9

Xofigo™

 

54

 

75

 

+38.9

+36.7

of which U.S.A.

 

41

 

50

 

+22.0

+21.1

Ultravist™

 

73

 

71

 

−2.7

+2.6

of which U.S.A.

 

2

 

1

 

−50.0

−38.5

Stivarga™

 

71

 

67

 

−5.6

−5.3

of which U.S.A.

 

46

 

35

 

−23.9

−25.1

Total best-selling products

 

2,618

 

2,937

 

+12.2

+15.0

Proportion of Pharmaceuticals sales

 

73%

 

76%

 

 

 

Total best-selling products in U.S.A.

 

614

 

687

 

 

 

Sales by product

  • Our oral anticoagulant Xarelto™ once again posted encouraging sales gains on a currency-adjusted basis. This was mainly attributable to volume increases in Europe and Japan. Business with Xarelto™ also developed positively in the United States, where it is marketed by a subsidiary of Johnson & Johnson.
  • We registered considerably higher sales of the eye medicine Eylea™ in all regions, particularly in Europe, Canada and Japan.
  • Sales of the blood-clotting medicine Kogenate™ posted significant gains compared with the weak prior-year quarter. We also began marketing our new hemophilia medicine Kovaltry™ in Europe and the United States in the first quarter of 2016.
  • Business with the hormone-releasing intrauterine devices of the Mirena™ product family – Mirena™ and Jaydess™ / Skyla™ – benefited especially from expanded volumes in the United States.
  • We achieved substantial sales gains for the cancer drug Nexavar™, particularly in the United States.
  • Sales of our multiple sclerosis product Betaferon™ / Betaseron™ were down overall, due partly to changes in sales phasing for tender businesses in Latin America. By contrast, sales rose in the United States.
  • Currency-adjusted sales of our YAZ™ / Yasmin™ / Yasminelle™ line of oral contraceptives were up slightly against the prior-year quarter. This was mainly attributable to positive development in the United States and China. In Europe, on the other hand, sales receded due to lower demand.
  • Sales increases for Adalat™ for the treatment of hypertension and coronary heart disease and the oral diabetes treatment Glucobay™ resulted mainly from gains in China.
  • We registered a decline in sales of the antibiotic Avalox™ / Avelox™, especially in Canada following patent expiration.
  • Our MRI contrast agent Gadovist™ posted substantial sales gains on a currency-adjusted basis, particularly in the United States. The launch of the product in Japan also played a major part in this development.
  • Our cancer drug Xofigo™ benefited mainly from good business development in the United States and Europe.
  • Sales of the cancer drug Stivarga™ receded due to intensified competition in the United States.
  • Sales of the pulmonary hypertension treatment Adempas™ amounted to €56 million (Q1 2015: €38 million) and reflected the proportionate recognition of the one-time payment resulting from the sGC collaboration with Merck & Co., United States. Business developed positively, especially in the United States.

Earnings

We raised EBITDA before special items by 16.2% to €1,261 million in the first quarter of 2016. This substantial increase in earnings was due largely to the very good business performance. As expected, however, higher investments in research and development and negative currency effects of around €30 million had a diminishing effect.

EBIT of Pharmaceuticals declined by 6.6% to €698 million, including special charges of €231 million for impairment losses on intangible assets (Essure™; Q1 2015: €24 million).