Apr. 01, 2021
China outperformed other major markets for Boehringer Ingelheim in 2020 as the German pharmaceutical company reported across-the-board revenue growth despite the COVID-19 shock.
The country recorded sales surge of 20.5 percent year-on-year to be the growth engine for its 19.6 billion euro ($23.1 billion) global revenue pie, the company told a virtual global news conference on Wednesday.
While China's 9.35 billion yuan sales currently accounted for around six percent of the company's overall revenue, Felix Gutsche, chairman and CEO of Boehringer Ingelheim in China, remained rosy about the growth trajectory bolstered by macro policies such as the dual-circulation development pattern.
"I think it gives a very clear direction to where China is heading to," he said. "We have a lot of assets here to support the domestic cycle…at the same time, we bring innovation from other parts of the world to China."
Apart from numerical gains, Boehringer Ingelheim took stronger steps in localization last year, including setting up an external innovation hub, establishing its first overseas digital lab BI X in Shanghai, and acquiring an equity stake in New Ruipeng Group to better tap into China's booming pet market.
"I think it makes a lot of sense to strengthen the domestic circle as much as the international one, because that will be a strong combination, not only for China, but allows China to be tied in the global value chains," Gutsche said.
Boehringer Ingelheim has pledged to invest some 450 million euros in China over the course of five years, and will participate in the fourth China International Import Expo scheduled for November.