Pharmaceuticals

First quarter of 2017

Sales

Sales of Pharmaceuticals rose by an encouraging 7.4% (Fx & portfolio adj.) to €4,263 million in the first quarter of 2017. Our key growth products Xarelto™, Eylea™, Xofigo™, Stivarga™ and Adempas™ once again delivered strong performance, with their combined sales rising by 20.0% (Fx adj.) to €1,445 million (Q1 2016: €1,187 million). Our Pharmaceuticals business expanded in all regions on a currency-adjusted basis.

Sales by product

• Our oral anticoagulant Xarelto™ achieved strong sales growth, primarily due to an expansion of volumes in Europe and Japan. Our license revenues – recognized as sales – in the United States, where Xarelto™ is marketed by a subsidiary of Johnson & Johnson, matched the prior-year quarter.
• We once again significantly expanded our business with the eye medicine Eylea™, with performance driven by higher sales volumes in Europe. Encouraging sales gains were also achieved in Canada and Japan.
• We substantially increased sales of the hormone-releasing intrauterine devices of the Mirena™ product family (Mirena™, Kyleena™ und Jaydess™ / Skyla™), particularly in the United States, where we also benefited from the successful market launch of the new Kyleena™ intrauterine device.
• Business with our Kogenate™ / Kovaltry™ blood-clotting medicines was down overall, largely due to fluctuations in the order volumes placed by our distribution partner.
• We registered a decline in sales for our cancer drug Nexavar™, primarily due to higher competitive pressure in the United States and Europe.
• Encouraging sales gains for Adalat™, our product for the treatment of hypertension and coronary heart disease, were mainly the result of increased volumes in China.
• As expected, sales of our multiple sclerosis product Betaferon™ / Betaseron™ were lower than in the prior-year quarter due to reduced demand in Europe and the United States.
• Business with our YAZ™ / Yasmin™ / Yasminelle™ line of oral contraceptives was down overall. Sales gains in Russia and China were insufficient to offset declines caused by intensified generic competition in the United States.
• Substantial sales increases for our diabetes treatment Glucobay™ and our Aspirin™ Cardio product for the secondary prevention of heart attacks, as well as slight sales gains for our antibiotic Avalox™ / Avelox™ were largely the result of a favorable market environment in China.
• Business with our cancer drug Xofigo™ increased significantly, driven by the successful launch of the product in Japan as well as growth in the United States and Europe.
• Sales of our MRI contrast agent Gadovist™ advanced, mainly due to good business performance in Japan.
• Substantial sales gains for our X-ray contrast agent Ultravist™ were primarily the result of positive business performance in China.
• Business with our Stellant™ contrast agent injection system benefited from higher volumes, primarily in the United States.
• Sales of our cancer drug Stivarga™ increased by 9.1% to €75 million (Q1 2016: 67 million), especially due to gains in the United States and Europe.
• Sales of the pulmonary hypertension treatment Adempas™ amounted to €73 million (Q1 2016: €56 million; Fx adj. +27.5%) and, as in the past, reflected the proportionate recognition of the one-time payment resulting from the sGC collaboration with Merck & Co., United States. Business benefited mainly from a positive performance in the United States.

Earnings

In the first quarter of 2017, EBITDA before special items of Pharmaceuticals increased by a substantial 19.1% percent to €1,502 million (Q1 2016: €1,261 million). Sales increased, while selling expenses and research and development expenditures were at around the same level as the prior-year quarter. Positive currency effects amounted to around €15 million.

EBIT improved by a substantial 74.6% to €1,219 million, including special charges of €36 million (Q1 2016: €231 million).