Key figures |
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Change |
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€ million |
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2023 |
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2022 |
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€ million |
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% |
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Net sales |
|
8,053 |
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7,839 |
|
214 |
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2.7% |
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Operating result (EBIT)1 |
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2,225 |
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1,895 |
|
330 |
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17.4% |
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Margin (% of net sales)1 |
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27.6% |
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24.2% |
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EBITDA2 |
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2,545 |
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2,385 |
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160 |
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6.7% |
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Margin (% of net sales)1 |
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31.6% |
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30.4% |
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EBITDA pre1 |
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2,543 |
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2,477 |
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66 |
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2.7% |
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Margin (% of net sales)1 |
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31.6% |
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31.6% |
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Development of sales and results of operations
The net sales in the individual quarters as well as the respective organic growth rates in 2022 are presented in the following graph:
Healthcare
Net sales and organic growth by quarter2
€ million/organic growth in %
Net sales of the key product lines and products developed as follows in 2023:
Net sales by major product lines/products |
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|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
€ million |
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2023 |
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Share |
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Organic growth1 |
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Exchange rate effects |
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Total change |
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2022 |
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Share |
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Oncology |
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1,819 |
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22% |
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17.3% |
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-9.2% |
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8.1% |
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1,683 |
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22% |
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thereof: Erbitux® |
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1,025 |
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13% |
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10.9% |
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-10.6% |
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0.3% |
|
1,023 |
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13% |
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thereof: Bavencio® |
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713 |
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9% |
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23.4% |
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-6.8% |
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16.6% |
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611 |
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8% |
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Neurology & Immunology |
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1,665 |
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21% |
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-0.9% |
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-3.5% |
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-4.5% |
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1,743 |
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22% |
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thereof: Mavenclad® |
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956 |
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12% |
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15.9% |
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-4.3% |
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11.7% |
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856 |
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11% |
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thereof: Rebif® |
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709 |
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9% |
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-17.2% |
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-2.9% |
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-20.1% |
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887 |
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11% |
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Fertility |
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1,547 |
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19% |
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14.9% |
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-7.8% |
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7.0% |
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1,446 |
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18% |
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thereof: Gonal-f® |
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847 |
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11% |
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10.5% |
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-7.8% |
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2.7% |
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825 |
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11% |
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Cardiovascular, Metabolism & Endocrinology |
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2,786 |
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35% |
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4.0% |
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-4.6% |
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-0.7% |
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2,805 |
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36% |
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thereof: Glucophage® |
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882 |
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11% |
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-0.5% |
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-4.6% |
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-5.1% |
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930 |
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12% |
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thereof: Concor® |
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571 |
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7% |
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1.6% |
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-4.9% |
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-3.3% |
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590 |
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8% |
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thereof: Euthyrox® |
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565 |
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7% |
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5.4% |
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-3.2% |
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2.2% |
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553 |
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7% |
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thereof: Saizen® |
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332 |
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4% |
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35.7% |
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-10.6% |
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25.1% |
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266 |
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3% |
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Other |
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235 |
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3% |
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161 |
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2% |
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Healthcare |
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8,053 |
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100% |
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8.5% |
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-5.8% |
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2.7% |
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7,839 |
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100% |
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- The cancer drug Erbitux® (cetuximab) saw low double-digit percentage organic net sales growth in 2023, largely on the back of increased demand in the Asia-Pacific (APAC), Latin America and Europe regions. By contrast, organic net sales performance in the Middle East and Africa region in the reporting period was negative.
- In immuno-oncology, net sales of the oncology drug Bavencio® (avelumab) saw organic growth in the low-twenties percentage range in the reporting period. This was driven by all regions, with Europe, North America and Asia-Pacific (APAC) enjoying particularly strong performance with double-digit organic growth rates. The main driver of this development was the continued growth in the drug’s market share for first-line maintenance treatment for patients with locally advanced or metastatic urothelial carcinoma (UC).
- Mavenclad®, for the oral short-course treatment of highly active relapsing multiple sclerosis, recorded encouraging organic net sales growth in the mid-teen percentage range in the past fiscal year and reached blockbuster status with total net sales of more than US$ 1 billion. The North America region made a particularly strong contribution to the positive sales performance, but Latin America, Europe and the Middle East and Africa region also saw organic growth in net sales. Net sales in the Asia-Pacific (APAC) region remained essentially unchanged year-on-year in organic terms.
- The reporting period saw a high-teens percentage decline in net sales of Rebif®, which is used to treat relapsing forms of multiple sclerosis (MS). The sustained downturn in sales was anticipated and largely reflects the momentum on the interferon market, which is expected to remain negative in the future due to the persistently difficult competitive situation and the competition from oral dosage forms and high-efficacy MS therapies.
- The Fertility franchise recorded strong organic net sales growth in the mid-teen percentage range in the reporting period. Gonal-f®, a leading recombinant hormone used in the treatment of infertility, saw low double-digit percentage growth in net sales on the back of higher demand as well as supply bottlenecks affecting a rival product. Other Fertility products also contributed to the strong growth in the franchise with organic net sales growth in the mid-teen percentage range in some cases. This development was also attributable to supply bottlenecks affecting a rival product as well as higher demand.
- The Cardiovascular, Metabolism and Endocrinology franchise, which includes drugs for the treatment of cardiovascular, thyroid and growth disorders and diabetes, recorded solid year-on-year growth in net sales in the past financial year. Net sales of the diabetes drug Glucophage® were largely stable, with organic sales growth in Europe and Latin America not quite offsetting the organic downturn in the Asia-Pacific (APAC) and Middle East and Africa (MEA) regions. Net sales of the beta-blocker Concor® increased slightly in organic terms in the reporting period, while the thyroid product Euthyrox® enjoyed solid organic growth compared with the previous year. The franchise also benefited from encouraging organic growth in the net sales of Saizen® in the mid-thirty percentage range, which was due to rising demand as well as supply bottlenecks affecting a rival product.
Product sales and organic growth1 of Erbitux®, Mavenclad® and Glucophage® by region – 2023 |
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Total |
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Europe |
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North America |
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Asia-Pacific (APAC) |
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Latin America |
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Middle East and Africa (MEA) |
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Erbitux® |
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€ million |
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1,025 |
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421 |
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– |
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464 |
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87 |
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53 |
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Organic growth1 |
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10.9% |
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2.4% |
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– |
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14.2% |
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54.4% |
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-12.8% |
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Share |
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100% |
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41% |
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– |
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45% |
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9% |
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5% |
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Mavenclad® |
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€ million |
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956 |
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360 |
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490 |
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20 |
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45 |
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41 |
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Organic growth1 |
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15.9% |
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3.4% |
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23.2% |
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-0.7% |
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62.6% |
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28.5% |
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Share |
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100% |
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38% |
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51% |
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2% |
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5% |
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4% |
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Glucophage® |
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€ million |
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882 |
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128 |
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– |
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467 |
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203 |
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84 |
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Organic growth1 |
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-0.5% |
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2.9% |
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– |
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-4.0% |
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14.9% |
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-12.8% |
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Share |
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100% |
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14% |
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– |
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53% |
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23% |
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10% |
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Net sales in the Healthcare business sector by region in 2023 developed as follows:
Net sales by region |
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|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
€ million |
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2023 |
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Share |
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Organic growth1 |
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Exchange rate effects |
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Acquisitions/ |
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Total change |
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2022 |
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Share |
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Europe |
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2,541 |
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31% |
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9.6% |
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-5.1% |
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– |
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4.5% |
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2,433 |
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31% |
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North America |
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1,793 |
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22% |
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3.9% |
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-3.2% |
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– |
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0.6% |
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1,781 |
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23% |
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Asia-Pacific (APAC) |
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2,232 |
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28% |
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6.4% |
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-7.7% |
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– |
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-1.3% |
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2,261 |
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29% |
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Latin America |
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941 |
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12% |
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23.1% |
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-10.8% |
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– |
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12.3% |
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838 |
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10% |
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Middle East and Africa (MEA) |
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546 |
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7% |
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5.1% |
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-1.3% |
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– |
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3.8% |
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527 |
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7% |
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Healthcare |
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8,053 |
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100% |
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8.5% |
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-5.8% |
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– |
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2.7% |
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7,839 |
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100% |
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The following table presents the composition of EBITDA pre in fiscal 2023 in comparison with 2022. The IFRS figures have been modified to reflect the elimination of adjustments included in the functional costs.
Reconciliation EBITDA pre1 |
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2023 |
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2022 |
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Change |
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€ million |
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IFRS |
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Elimination of adjustments |
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Pre1 |
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IFRS |
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Elimination of adjustments |
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Pre1 |
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Pre1 |
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Net sales |
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8,053 |
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– |
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8,053 |
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7,839 |
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– |
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7,839 |
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2.7% |
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Cost of sales |
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-2,029 |
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-1 |
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-2,030 |
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-1,925 |
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4 |
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-1,921 |
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5.7% |
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Gross profit |
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6,024 |
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-1 |
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6,023 |
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5,914 |
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4 |
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5,917 |
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1.8% |
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Marketing and selling expenses |
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-1,668 |
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29 |
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-1,639 |
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-1,644 |
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13 |
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-1,631 |
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0.5% |
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Administration expenses |
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-314 |
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20 |
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-294 |
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-313 |
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18 |
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-296 |
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-0.7% |
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Research and development costs |
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-1,657 |
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2 |
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-1,655 |
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-1,694 |
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73 |
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-1,622 |
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2.0% |
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Impairment losses and reversals of impairment losses on financial assets (net) |
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-41 |
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– |
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-41 |
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2 |
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– |
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2 |
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>100.0% |
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Other operating income and expenses |
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-120 |
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-41 |
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-161 |
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-370 |
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172 |
|
-198 |
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-18.7% |
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Operating result (EBIT)1 |
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2,225 |
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1,895 |
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Depreciation/amortization/impairment losses/reversals of impairment losses |
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320 |
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-10 |
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310 |
|
490 |
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-187 |
|
303 |
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2.3% |
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EBITDA2 |
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2,545 |
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2,385 |
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Restructuring expenses |
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32 |
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-32 |
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– |
|
91 |
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-91 |
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– |
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Integration expenses/IT expenses |
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20 |
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-20 |
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– |
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16 |
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-16 |
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– |
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Gains (-)/losses (+) on the divestment of businesses |
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-53 |
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53 |
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– |
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-15 |
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15 |
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– |
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Acquisition-related adjustments |
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– |
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– |
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– |
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– |
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– |
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– |
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Other adjustments |
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– |
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– |
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– |
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– |
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– |
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– |
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EBITDA pre1 |
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2,543 |
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– |
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2,543 |
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2,477 |
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– |
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2,477 |
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2.7% |
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of which: organic growth1 |
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17.1% |
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of which: exchange rate effects |
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-14.4% |
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of which: acquisitions/ divestments |
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– |
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- Adjusted gross profit increased slightly in fiscal 2023, while the gross margin declined slightly to 74.8% (2022: 75.5%).
- Marketing and sales costs and administrative expenses were essentially unchanged year-on-year in the reporting period. The adjusted research and development costs increased slightly compared with the previous year, which was largely due to the provisions recognized for follow-on obligations in connection with the discontinuation of the development program for evobrutinib, a BTK inhibitor used in the treatment of relapsing multiple sclerosis (RMS).
- Net adjusted other operating expenses and income were negative but declined in fiscal 2023. This positive development was mainly driven by the end of the strategic alliance with Pfizer Inc., United States, on the co-development and co-commercialization of the oncology drug Bavencio® effective June 30, 2023. The royalties paid to Pfizer Inc., United States, instead of the profit share previously reported in other operating expenses have been reported in the cost of sales since July 2023, leading to a corresponding increase in this item. This development outweighed the year-on-year reduction in license income, meaning that the net figure improved as a result.
- The moderate increase in EBITDA pre in fiscal 2023 meant that the EBITDA pre margin amounted to 31.6% (2022: 31.6%).
The development of EBITDA pre in the individual quarters in comparison with 2022 is presented in the following overview:
Healthcare
EBITDA pre and change by quarter2
€ million/change in %
2 Quarterly breakdown unaudited.