Boehringer Ingelheim is a research-driven pharmaceutical company that has utilized biotechnology to create its innovations. This family-owned company was founded in Germany in 1885 but has subsidiary sites in other countries. For many years, Boehringer Ingelheim was centered around human health. However, in the late 1900’s, this company expanded into animal health innovations too. Since Boehringer Ingelheim is research-driven, their research leads to their medical innovations. With a taste of the company in mind, let’s move forward by discussing comparative advantages, supply and demand, Germany’s gross domestic product, and how Boehringer Ingelheim is working to save its profits.
When it comes to comparative advantage, Boehringer Ingelheim is investing in ways to advance its production. One of these ways is digitalization through Solids Launch Factories (SOL). When discussing SOL on Boehringer Ingelheim’s website, Dr. Anja Preißmann, Head of Human Pharma Supply Launch & Innovation, is quoted:
Thanks to the flexible and innovative design of the SOL and the close links with the Development teams, we can bring our new products to market faster than before. This is not only a competitive advantage for our company, but also of benefit to patients worldwide. (Preißmann, n.d.)
While it is difficult to determine Boehringer Ingelheim’s current supply, they put forth effort to get their pharmaceutical goods on the market as soon as possible. Among these efforts, includes building larger and more efficient facilities. Boehringer Ingelheim shares on its website, “By opening the Large Scale Cell Culture (LSCC) facility in October 2021, Boehringer Ingelheim set a major milestone to serve the growing demand for biopharmaceutical medicines and accelerate access to improved treatment options for patients with severe diseases.” (Boehringer Ingelheim, n.d.)
As we continue to see new diseases or viruses arise, there will be a demand for new medications, vaccines, and therapies. We saw this with COVID-19, as vaccines, treatments, and therapies were developed to combat the virus. When considering Boehringer Ingelheim’s demand, we should look at their net sales. According to their website, “Net sales in 2019 were 18,997 million EUR. Net sales in 2020 were 19,566 million EUR. Net sales in 2021 were 20,618 million EUR.” (Boehringer Ingelheim, n.d.) While the rise in sales does not promise long-term demand for their products, one may think that there would be a correlation between the increase in net sales and the demand for pharmaceutical services.
Let’s review the gross domestic product or GDP. According to the World Bank, in 2021, “Germany had a GDP of $4, 223,116. 21 (in millions).” (World Bank, n.d.) Boehringer Ingelheim has three sites in the United States, which serves as a key market country for them. According to the World Bank, in 2021, “The United States had a GDP of $22,996,100.00 (in millions).” (World Bank, n.d.)
As mentioned above, Boehringer Ingelheim works hard to get its products developed as soon as possible. That includes making investments, as we saw with the Large Scale Cell Culture facility mentioned above. Doing so not only helps consumers’ lives, but it helps the company’s profitability. Boehringer Ingelheim’s, Rolf Werner, Senior Vice President Strategic Biobusiness Asia, was interviewed by Alois Jungbauer Editor-in-Chief and Dr. Uta Göbel Assistant Editor from Biotechnology Journal. Werner shared:
The biopharmaceutical industry has to invest about 1 500 to 800 million for the process engineering and plant construction. This usually has to be done right at the time of target drug discovery, to provide the material for clinical studies on time. Although, at this time it is unknown whether the product will ever reach the market. As I have shown in my talk, only 1% of new lead compounds for new targets will ever lead to a return of R&D costs. (Werner, 2012)
Werner continued to discuss shortening the time it takes to develop their products. Of course, this did not include sacrificing their product’s quality or safety. The point is that Boehringer Ingelheim is investing in methods or assets that can allow them to be more effective and efficient. Which will enable them to grow and save money.
The 1885 family-owned pharmaceutical company, Boehringer Ingelheim, has grown substantially from when it started and will continue to do so. This company’s integration of technology allows for efficiency and gives them the upper hand in their industry. Investing in assets or ways that will allow them to meet their demand is key to Boehringer Ingelheim. Their thorough research and development of their products, drive to provide life changing health resources to humans and animals, and efficiency, will take them far.
References
Boehringer Ingelheim | Geschäftsbericht 2021. Annualreport.boehringer-ingelheim.com.
Retrieved 3 September 2022, from https://annualreport.boehringer-ingelheim.com/2021/magazine/next-level.html.
Boehringer Ingelheim | Geschäftsbericht 2021. Annualreport.boehringer-ingelheim.com. Retrieved 3 September 2022, from https://annualreport.boehringer-ingelheim.com/2021/.
Boehringer Ingelheim | Geschäftsbericht 2021. Annualreport.boehringer-ingelheim.com.
Retrieved 3 September 2022, from https://annualreport.boehringer-ingelheim.com/2021/magazine/new-space.html.
GDP (current US$) | Data. Data.worldbank.org. Retrieved 3 September 2022, from https://data.worldbank.org/indicator/NY.GDP.MKTP.CD?locations=US&view=chart.
GDP (current US$) - Germany | Data. Data.worldbank.org. Retrieved 3 September 2022, from https://data.worldbank.org/indicator/NY.GDP.MKTP.CD?locations=DE&view=chart.
Jungbauer, A. and Göbel, U. (2012), Biopharmaceutical process development – shortcut to market: An interview with Rolf Werner from Boehringer Ingelheim. Biotechnology Journal, 7: 14-16. https://doi-org.ezproxy.regent.edu/10.1002/biot.201100483