Annual Report 2006 - Boehringer Ingelheim

Value through Innovation
Annual Report 2006
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Financial Highlights
Boehringer Ingelheim group of companies
Amounts in millions of EUR, unless otherwise indicated 2006 2005 change
Net sales 10,574 9,535 11 %
by region
Europe 31 % 33 %
Americas 51 % 48 %
Asia, Australasia, Africa 18 % 19 %
by business area
Human Pharmaceuticals 96 % 96 %
Animal Health 4 % 4 %
Research and development 1,574 1,360 16 %
Personnel costs 2,836 2,671 6 %
Average number of employees 38,428 37,406 3 %
Operating income 2,140 1,923 11 %
Operating income as % of sales 20.2 % 20.2 %
Income after taxes 1,729 1,514 14 %
Income after taxes as % of sales 16.4 % 15.9 %
Shareholders’ equity 5,175 4,609 12 %
Return on shareholders’ equity 37.4 % 34.2 %
Cash flow 2,317 2,069 12 %
Investments in tangible assets 596 532 12 %
Depreciation of tangible assets 419 439 -5 %
Top 5 products — Prescription Medicines
Net sales 2006 in millions of EUR change
spiriva® 1,381 45.2 %
micardis® 967 33.6 %
flomax® 922 27.8 %
combivent® 671 19.6 %
mobic® 579 -31.8 %
Top 5 products — Consumer Health Care
Net sales 2006 in millions of EUR change
dulcolax® 122.0 6.2 %
mucosolvan® 108.3 18.6 %
pharmaton® 95.6 8.2 %
buscopan® 71.2 19.6 %
bisolvon® 67.1 0.4 %

Contents
1 Value Through Innovation
2 The Shareholders’ Perspective
4 Key Aspects of 2006
9 Our Caring Culture
10 “There is help”
14 Our People
18 Caring for our Neighbours
22 Our Environment & Employee Safety
27 Our R & D Drive
28 Targeting tomorrow’s therapies
32 Our R & D Strategy
38 Our Expertise in Landmark Studies
40 From Mind to Man – The R & D Process
42 New Biological Entities (NBE)
43 Biomarker & Pharmacogenetics
45 Serving Patients *
46 “I wake up refreshed ...”
49 Human Pharmaceuticals
60 “My recovery came fast”
78 “Now I know how to keep them under control”
80 From Plant to the Pharmacy – The buscopan® Story
81 Consumer Health Care
84 Our friend Tom
87 Animal Health
91 Our Customer Orientation
92 Biopharmaceuticals – How Innovations are Made
95 Pharmaceuticals Production and Pharma Chemicals
97 Counterfeits – A Real Threat for Patients
99 Group Management Report
115 Consolidated Financial Statements 2006
116 Overview of the Major Consolidated Companies
118 Consolidated Balance Sheet
119 Consolidated Profit and Loss Statement
120 Cash Flow Statement
121 Statement of Changes in Group Equity
122 Notes to the Consolidated Financial Statements 2006
140 Auditor’s Report
142 Glossary
Flap Comparison of Balance Sheet / Financial Data 1997–2006
Our friend Tom
Every year, about 10 % of
all horses suffer from
equine colic, a disease that
can prove life-threatening.
[page 84]
“Now I know
how to keep
them under
control”
Abdominal pains and cramps,
a widespread ailment, is
more common in women
than in men and can affect
people still in their teens.
[page 78]
* The patient reports are authentic reports which refer to personal
experience only. Please acknowledge that other patients may experience
different treatment results. Individual treatment schemes have always to
be discussed between patient and physician case by case.
“There is help“
In Kenya, about 50,000 newborn babies a year are
estimated to acquire HIV from their infected mothers.
Worldwide UNAIDS talks of 2.3 million cases of
AIDS-diseased children. [page 10]
Targeting tomorrow’s
therapies
Focusing on both biopharmaceutical and
small molecule drugs, Boehringer Ingelheim
has embarked on a major drive to discover
and develop new cancer drugs. [page 28]
“My recovery
came fast”
Stroke is a serious disease.
It is the third leading cause
of death after heart disease
and cancer and the most
important reason for
medical disability. [page 60]
“I wake up
refreshed ...”
Hypertension is not only an
unpleasant condition that
keeps people from doing
what the things they like.
It is also a serious cardiovascular
risk that can be
the precursor to stroke and
heart attack. [page 46]
please turn over

Value through Innovation
Our vision drives us forward. It helps us to
foster value creation through innovation
throughout our company and to look to the
future with constantly renewed commitment
and ambition.
Boehringer Ingelheim is a research-driven group of companies
dedicated to researching, developing, manufacturing and marketing
pharmaceuticals that improve health and quality of life.
Our business consists largely of Prescription Medicines, Consumer
Health Care, Biopharmaceuticals and Animal Health. We focus on the
production of innovative drugs and treatments that represent major
therapeutic advances.
Excellence in innovation and technology guides our actions in all
areas. Our products have long been highly successful in the treatment
of respiratory, cardiovascular, central nervous system, urological and
virological disorders. In addition we have intensified our research
into the immune system, metabolic diseases and oncology.
Boehringer Ingelheim, which currently has more than 38,400
employees, has 137 affiliated companies spread around the globe.
We have research and development facilities in ten countries and
production plants in more than 20.
Our Human Pharmaceuticals research and development in our
Prescription Medicine spending corresponds to about 18 % of net
sales in this business.
Our headquarters is at Ingelheim, the German town where the
company was founded in 1885.

The Shareholders’ Perspective
Dear Reader,
Family-owned companies such as Boehringer
Ingelheim are attracting considerable interest
these days. As their strategy and investments are
often directed towards ensuring the continuation
of the company in the long term, family-owned
companies have often proved to be particularly
stable and crisis-resistant, especially in the
volatile market conditions of recent years.
The success of value-based family-owned companies
is also confirmed by various surveys and
indices comparing family-owned companies
with listed ones. It is borne out by our own
success as well. Boehringer Ingelheim’s sales
growth this past financial year exceeded the
market average for the seventh year in a row,
allowing us to improve our world market share
yet again. Benchmarking operating margins
also show Boehringer Ingelheim to be well
positioned. That our commercial success has
also allowed the corporation to take on more
employees is particularly gratifying. Over
the past ten years, Boehringer Ingelheim has
increased its personnel capacity by 5 % per
annum on average.
We are a research-driven pharmaceutical com-
pany. The guiding principles in our Leitbild give
top priority to the development of innovative
medicines for the benefit of patients worldwide.
The same applies to our endeavours in animal
health as well. Innovation and the quality of our
products drive our success and materialise many
Boehringer Ingelheim A n n u A l R e p o R t 2 0 0 6
years of research and development. The development
of innovative substances with an efficacy
superior to those already available will be crucial
to our success in the future.
The market demands that productivity be
constantly raised throughout the value chain.
Our employees are the driving force behind
the innovations required at any one stage of our
complex processes. We rely on their integrity
and commitment. It is also important for us
to remain an employer of choice for our own
employees and for people outside the company.
That Boehringer Ingelheim, as numerous
external comparisons have shown, is one of
the most interesting and desirable employers
in many countries is a source of great pride.
Boehringer Ingelheim certainly has the corporate
culture, the size and the structure to enable us
to identify with a common strategy and to help
shape it, too. Such an environment is essential
to innovation and excellence. We believe that
our corporate culture, with its focus on how we
work together in a ‘great team’, is a significant
prerequisite for motivating our employees
to achieve still more innovative solutions for
patients, progress and economic success.
The year 2006 was again one of market consoli-
dation in the pharmaceutical industry. And this
trend with mergers and acquisitions is most
likely to continue. The main reason for this is a
very simple one: lack of productivity in R&D.

Boehringer Ingelheim’s shareholders have set the
course for the future in such a way that we can
continue to build on the successful development
of recent years as an independent company. This
applies not only to the corporate strategy decided
jointly with the Board of Managing Directors,
but also to the make-up of both the Board and
the Shareholders’ Committee. After 32 years of
highly successful commitment to Boehringer
Ingelheim, as Chairman of the Board of
Managing Directors, and since 2001 as Chairman
of the Shareholders’ Committee too, Dr Heribert
Johann took well deserved retirement as of
31 December 2006. Dr Johann played a key role
in shaping our company’s strategic development
over the past 15 years and we are profoundly
grateful to him for his unflagging commitment
to Boehringer Ingelheim.
The commitment of the owner-family to
Boehringer Ingelheim, meanwhile, has been
further strengthened by two important decisions
taken in 2006: the move of family member
Hubertus von Baumbach to the Board of
Managing Directors at the beginning of 2009
and the increased involvement of other family
members in the Shareholders’ Committee,
which is now chaired again by a family member
representing the increased commitment of the
fourth generation of shareholders.
Christian Boehringer,
Chairman of the
Shareholders’ Committee
We are confident of the continued motivation
and loyalty of our employees, the expertise and
experience of the Board and constructive commitment
of our Advisory Board in the future. On
behalf of the shareholders of Boehringer Ingelheim,
allow me to congratulate all those I have
mentioned on the very successful financial year
2006. Thank you all for your tremendous efforts.
We look forward to continuing to work closely
with our employees, the Board of Managing
Directors and the Advisory Board for the good
of Boehringer Ingelheim as a whole. Despite what
is sometimes a difficult economic and political
environment, and some highly competitive
markets, we are confident that we are set to
remain one of the world’s leading pharmaceutical
companies.
Christian Boehringer
Chairman of the Shareholders’ Committee
The Shareholders’ Perspective

Key Aspects of 2006
2006 was again a rewarding year for Boehringer
Ingelheim. We grew faster than the market
average for the seventh year in succession.
While the global pharmaceutical markets are
changing and mergers and consolidation efforts
continue, we again maintained our successful
course as an independent and dynamically
growing pharmaceutical company. We are proud
that we once again achieved our overall goal
of helping people by making our medications
available to patients through researching and
developing new and innovative drugs. Our
economic success in recent years mirrors the
value of our medications for patients.
Market analyses by the healthcare information
provider IMS confirm that our +8.4 % growth
rate was appreciably healthier than that of the
pharmaceutical market in general (+6.1 %).
Although our growth curve flattened out as a
result of the generic competition that our antirheumatic
drug mobic® has been facing in the
USA since summer 2006, we increased our
market share in 2006 worldwide and in the
USA to about 2 %. Overall, we are happy
with our 2006 results.
Boehringer Ingelheim A n n u A l R e p o R t 2 0 0 6
Success in serving patients
Boehringer Ingelheim is a pharmaceutical
company that generates almost 80 % of its net
sales with prescription medicines. Yet we do
not measure our success in financial key figures
alone, but also, and of equal importance, in
terms of the acceptance of our products and
programmes. For instance, in conjunction with
our donation programme for the anti-AIDS
product viramune®, we have so far succeeded
in providing medication for almost 1 million
mother-child pairs in around 60 countries for
the prevention of mother-to-child transmission
of HIV. About six million patients benefited from
our product spiriva® for chronic obstructive
pulmonary disease (COPD). The number of
patients using our anti-hypertension medicine
micardis® amounted to more than four million
in 2006.
Value through Innovation
Naturally, the success of our products is reflected
in our business results. In 2006, our net sales
across all business areas grew by 11 % to
almost EUR 10.6 billion. We were also pleased
that we were able to increase the number of our
employees by 3 % to 38,428 and so offer more
than 1,000 new and qualified jobs around the
world.

Members of the Board
of Managing Directors:
Dr Hans-Jürgen Leuchs
Dr Andreas Barner
Dr Alessandro Banchi
Prof. Marbod Muff
(from left to right)
The Prescription Medicines business area, which
grew by 15 % to EUR 8.3 billion (compared to
2005) made the greatest contribution to sales
growth. The most important products driving
this growth included our leading product
spiriva®, with sales up 45 % to EUR 1.4 billion,
micardis® which grew by 34 % to EUR 967
million, and flomax®/alna®, for benign
prostatic hyperplasia, which grew by 28 %
to EUR 922 million. In US dollar terms,
micardis® and flomax® thus represent two
more Boehringer Ingelheim blockbusters
alongside spiriva®.
In 2006, we were granted marketing authorisation
for sifrol® in the indication restless legs
syndrome (RLS), both in Europe and the USA.
Important and innovative clinical studies (phase
I-IV) continued successfully, involving about
90,000 patients worldwide. These included
the ontarget study (micardis®), uplift®
(spiriva®) and profess® (aggrenox®/
micardis®).
Well-filled pipeline
Our product pipeline has further improved and
is being progressively filled with substances from
our research. We focus on respiratory and cardiovascular
diseases, virology, central nervous
system, immunology, metabolic diseases and
oncology. In this last therapeutic area, for example,
three anti-cancer drug candidates are now
in clinical phase II development. Our projects
are complemented by strategic alliances and the
in-licensing of new compounds and technologies.
Our late-stage pipeline also progressed well in
phase III, and we were able to file the first indications
of our lead anti-thrombotic compound
dabigatran for registration in Europe at the
beginning of 2007.
Investments in research and development in
our prescription medicines increased again
in 2006, up by 16 % to about EUR 1.5 billion;
this corresponds to around 18 % of sales in
this business area.
Overall, our Consumer Health Care (CHC) busi-
ness showed good development, in spite of an
increase in sales of only 1 % to EUR 1.1 billion.
Key Aspects of 2006

This growth was clearly restrained by the
weakness of the Japanese market, where we
generate almost 30 % of our CHC business.
Excluding Japan, we achieved strong growth
of about 9 %.
Our international core brands, in particular
dulcolax®, pharmaton® and buscopan®,
showed wholly positive development. As an
outstanding complement to our gastrointestinal
disease business, we successfully acquired
zantac® (for heartburn) for the important US
market. Our CHC business accounted for about
10 % of our total net sales.
Our Biopharmaceuticals business segment,
which embraces contract manufacture and
development for our international customers,
declined by 8 % to EUR 503 million. This development
was expected, despite plant running at
full capacity, as the 2005 business year benefited
from extraordinary effects caused by special
projects that helped boost sales by 40 %.
Boehringer Ingelheim is not only strategically
committed to the Human Pharmaceuticals
business but also to Animal Health. Here, sales
in 2006 rose by 4 % to about EUR 374 million,
giving growth above the market average.
Adjusted for extraordinary and currency effects
the Animal Health business grew by 8 %. According
to the market research institute Wood Mac-
Kenzie, Boehringer Ingelheim, with a market
share of about 3 %, ranks 10th in the international
ranking of animal health companies.
The most important products in this business
area include the anti-inflammatory product
metacam®, vetmedin®, a product for treating
Boehringer Ingelheim A n n u A l R e p o R t 2 0 0 6
chronic heart disease in dogs, as well as the pig
vaccines enterisol® ileitis (against diarrhoea)
and ingelvac® prrs (against porcine reproduc-
tive and respiratory syndrome).
The outlook remains good
The picture seen in recent years has not changed.
Boehringer Ingelheim’s growth in 2006 was
excellent across all regions of the world. The
Americas region grew very well in spite of the
sales decrease of mobic® due to generic competition
in the USA, with sales rising by 18 % to
EUR 5.4 billion. But not only the USA (+20 % to
4.5 billion) performed well. Other countries, in
particular Mexico, with its vigorous 27 % growth
(to EUR 300 million), put in an excellent performance,
too. Europe showed a rather gratifying
development, growing by 6 % to EUR 3.3 billion.
France (+19 % to EUR 263 million), the Regional
Center Vienna with its expanding East European
business (+13 % to EUR 362 million) and Spain
(+10 % to EUR 349 million) developed very well.
That Germany, on the other hand, stagnated
in 2006 (+1 % to EUR 822 million) was a result
of the expiry of our patent on alna® on top
of the very difficult pharmapolitical impacts.
In the Asia, Australasia, Africa (AAA) region,
Japan is showing encouraging signs of growth
(currency adjusted +6 % to EUR 1.2 billion).
In Japan, we were for the second year in a row
the fastest growing company among the top 25
in prescription medicines; we would like to pay
a special tribute to our Japanese employees.
Gratifying growth and effective cost manage-
ment led to increased operating income for the
company, as reflected in our results. Operating
income rose by 11 % to over EUR 2.1 billion.
This corresponds to a return on sales of 20.2 %.

The outlook for further business development at
Boehringer Ingelheim remains good. Drugs with
patent protection or exclusivity will continue
to be our main growth drivers. These products
are expected to account for more than 60 % of
net sales in 2007. We also expect to grow in line
with the market in 2007 due to the generic
competition of mobic® in the USA, which will
put pressure on our growth rate for the first
half of the year.
Dr Alessandro Banchi Dr Andreas Barner
Dr Hans-Jürgen Leuchs Prof. Marbod Muff
However, our major products still have high
growth potential. We also hope that 2007 will
see registration granted in Europe for our
new and, for patients, innovative device, the
respimat® Soft Mist Inhaler, for our most
important product spiriva®.
And more importantly, we rely on top-class
worldwide teams of highly committed and skilled
employees. In spite of the increasing health
policy restrictions in many countries, we continue
to look towards the future with optimism.
Key Aspects of 2006

Shareholders’ Committee
Dr Heribert Johann
(until 31. 12. 2006)
Chairman of the
Shareholders’ Committee
Christian Boehringer
(from 1. 1. 2007)
Chairman of the
Shareholders’ Committee
Albert Boehringer
Christoph Boehringer
Ferdinand von Baumbach
Hubertus von Baumbach
Dr Mathias Boehringer
Advisory Board
Prof. Michael Hoffmann-Becking
Attorney at Law, Düsseldorf
Chairman of the Advisory Board
Dr Rolf-E. Breuer
Chairman of the Supervisory Board
Deutsche Bank AG,
Frankfurt (Main)
Prof. Fredmund Malik
Chairman of the Board
Managementzentrum
St. Gallen Holding AG
Prof. Axel Ullrich
(until 30. 6. 2006)
Director of the Max Planck Institute
for Biochemistry, Martinsried
Dr Heinrich Weiss
Chairman of the Board
SMS AG, Düsseldorf
Board of Managing Directors
Dr Alessandro Banchi
Corporate Board Division
Chairman of the Board
Corporate Board Division
Pharma Marketing and Sales
Dr Andreas Barner
Vice-Chairman of the Board
Corporate Board Division
Pharma Research,
Development and Medicine
Dr Hans-Jürgen Leuchs
Corporate Board Division
Operations
Corporate Board Division
Animal Health
Prof. Marbod Muff
Corporate Board Division
Finance
Corporate Board Division
Human Resources

Our caring culture

“There is help”
“The woman who came to my hospital was pregnant. Her husband accompanied her. And
she had AIDS. When I asked her how she had acquired the disease she just turned to her
husband and glanced at him. He lowered his head and looked at the ground.” Dr Charles
Wanyonyi, Medical Director of Pumwani Maternity Hospital in Nairobi, Kenya, has seen many
patients like this woman. Promiscuity, carelessness, superstition or lack of information and
education contribute to the spread of the deadly disease. Stigma and discrimination also
have a persistent, negative impact in many countries.
In Kenya, about 50,000 newborn babies are estimated to acquire HIV from their infected
mothers every year. Worldwide, UNAIDS talks of 2.3 million cases of AIDS-diseased children.
Most of them will die before they are five years old. Hence the forceful call from former
UN Secretary-General Kofi Annan, a man deeply committed to the struggle against AIDS:
“We must prevent the cruellest, most unjust infections of all – those that pass from mother
to child.”
The infection does not necessarily occur only in the womb during pregnancy. The baby may
also come into contact with the mother’s infected body fluids during labour and delivery.
Finally, they may acquire the virus from their HIV-positive mother’s breastmilk. Without
treatment, around 15–30 % of babies born to HIV-positive women will become infected with
HIV during pregnancy and delivery. A further 5–20 % will become infected through breast
feeding.
There is help. Adelaide Moraa Ayiechad, a midwife from Dr Wanyonyi’s hospital in Kenya,
says: “A baby can be protected from contracting HIV by using nevirapine, so long as the
medication is given in time.” Nevirapine, marketed by Boehringer Ingelheim worldwide
under the tradename viramune®, has proven to significantly reduce the transmission of the
virus from mother to child. Just one tablet taken by the mother during labour and a dose
of viramune® suspension given to the baby within the first 72 hours after birth can reduce
the rate of transmission by about 50 %, as demonstrated in clinical studies.
Saving hundreds of thousands of lives
In its commitment to expanding access to antiretroviral therapy for developing countries,
Boehringer Ingelheim has since 2000 been giving free access to nevirapine through
the viramune® Donation Programme (VDP). The company currently donates the product
to 156 programmes in 59 countries in Africa, Asia, Latin America and Eastern Europe.
continued on page 12

Examination at Pumwani Maternity Hospital, Nairobi, Kenya,
where HIV-infected women and their babies receive treatment
with nevirapine to prevent mother-to-child transmission of HIV.

1
continued from page 10
A Kenyan mother, having just delivered
twins, undergoes HIV counselling
and testing under the prevention of
mother-to-child transmission
programme at Pumwani Hospital,
Nairobi.
So far, a total of almost one million mother-and-child pair doses have been supplied free of
charge, with the greatest proportion directed to sub-Saharan Africa, epicentre of the AIDS
pandemic. The VDP continues to develop and the numbers still receiving the medication are
rising.
The programme is open to any government, NGO, charitable organisation or other healthcare
providers actively involved in the prevention of mother-to-child transmission (MTCT) based
on local government approval and registration, according to World Health Organization
(WHO) donation guidelines. Boehringer Ingelheim has contracted Axios International,
a distributor of healthcare supplies in the developing world, to provide technical assistance
to support the implementation of the VDP.
“Provided free of charge by Boehringer Ingelheim, nevirapine is straightforward to use
and ideally should be part of a full treatment schedule. But if this is not possible, it can also
be used alone. I feel tremendously privileged to have participated in the discovery and
development of a drug that is having the impact that nevirapine is having throughout the
world,” says Professor John L. Sullivan from the University of Massachusetts Medical School,
who has made a decisive contribution to the viramune® clinical trials.
The single-dose nevirapine regimen has won the support of the public health and HIV/AIDS
treatment communities as, in some countries, it may be the only therapy available for
preventing HIV transmission to infants during birth. Although the most recent WHO guidelines
(2006) continue to recommend single-dose nevirapine use as a practical option in
resource-limited settings, there is general agreement that whenever possible single-dose
nevirapine should be used in combination with short courses of other antiretroviral drugs
to decrease the development of resistance.
In addition to the VDP programme, Boehringer Ingelheim has granted in the past years local
and internationally operating manufacturers licenses to produce and sell nevirapine for use
in anti-HIV combination therapy for the sub-Saharan Africa.
Boehringer Ingelheim has now expanded its access policy which will make it easier for local
and internationally operating manufacturers to produce and sell nevirapine for treatment
in anti-HIV combination therapy for the whole of Africa and least developed countries,
according to the World Bank and UNDP standard. This new access policy is made available
for all producers of nevirapine containing products pre-qualified by the WHO, irrespective
of local patent issues or place of production.
Boehringer Ingelheim A n n u A l R e p o R t 2 0 0 6

Mothers deliver healthy babies
Interview with Dr Charles Wanyonyi
What is the situation in your area in terms of the HIV infection
rate? The rate of HIV-infected people has gone down from 13 %
in 2003 to at the moment 8 - 9 % of Kenya’s population. This drop
is showing that the rate is now stabilising and is being brought
under control.
How long have you been using nevirapine at your hospital?
We introduced a prevention of mother-to-child transmission
programme in 2003, the aim of which was to inform HIV-
positive expectant mothers about how to protect a baby from
contracting the virus. They are also told of the importance of
using nevirapine and we have been using it since then.
How many mother-child pairs have been treated with
nevirapine so far? Since we started the programme, we have
handled approximately 4,500 cases.
What is your opinion of nevirapine in terms of its efficacy
and safety? Nevirapine is very effective and has helped many
HIV-positive mothers deliver healthy babies. I must say that there
has been a drastic drop of mother-to-child transmission during
delivery. I have seen the drug work in a baby whose blood had
been in contact with the virus during birth and where a dose of
nevirapine had been given, which had then caused the virus to
be wiped out and the antibodies to disappear.
our caring culture
Consultant obstetrician and gynaecologist
Dr Charles Wanyonyi is Medical Director of
Pumwani Maternity Hospital (PMH), the largest
maternity institution in the East and Central Africa
region. Located in Nairobi, the Kenyan capital,
it is the most active site in Kenya for preventing
mother-to-child transmission (PMTCT) of HIV.
Dr Wanyonyi oversees the day to day running of
PMH which provides antenatal, delivery and postnatal
services, midwife training, research activities
and healthcare programmes, such as PMTCT.
VIRAMUNE® Donation Programme
1

1
Our people
In pursuing our vision to create “Value through Innovation”, we build on the
inspiration, expertise and dedication of our more than 38,400 people around
the world. Their striving for continuous innovation and discovery of novel
solutions enable us to maintain our growth, to sustain high-level performance
and prepare for future challenges.
Supported by our Leitbild (guiding principles)
and our long-term strategic direction, we continue
to focus on core issues for enhancing our
people’s capabilities and their passion to pursue
our vision everywhere we operate. A key element
of our sustained success at Boehringer Ingelheim
is the way we work together. Guided by fundamental
questions contained in Lead & Learn,
our common cultural understanding, we are
individually and collectively called on to shape
an environment where creativity, challenge,
team-spirit, respect and fairness flourish. Interdisciplinary
teams throughout our organisations
continue to support this aspiration with unconventional
and inspirational ways of questioning,
sharing and learning from each other.
Preferred employer recognition
The strength of our distinctive working culture
is winning wide acknowledgement from
prestigious, independent workplace surveys (see
page 17). We regard these awards as an affirma-
tion of our success in establishing a demanding
yet highly attractive working environment. The
Boehringer Ingelheim A n n u A l R e p o R t 2 0 0 6
surveys increasingly place us among the most
preferred employers, giving us a competitive
advantage in recruiting and retaining the best
talent. In 2006, Boehringer Ingelheim was listed
No. 2 among the top 20 employers of scientists
in a respected survey among researchers in the
USA and Europe (see page 15).
Preparing for the future
To ensure our sustained, positive development, a
number of our organisations devoted substantial
attention in 2006 to capitalising on opportunities
to improve business and operating efficiency
beyond existing continuous improvement.
Hence, processes have been launched in which
our employees have contributed powerful
insights into how we can reinvent ourselves,
create structures and processes for better serving
the marketplace, reducing costs and redundancies,
as well as working more efficiently and
securing breakthroughs.

As many of our country organisations will be
challenged by an increasingly ageing workforce
and shortage of qualified new entrants, we have
set out to emphasise the options available and
the opportunities to be seized in this development.
While measures promoting lifelong learning
for all, diversity management, enabling better
work-life balance, maintaining and enhancing
physical, mental and social well-being are well
anchored and the scope for improvement continuously
scrutinised, we have now embarked on
a course designed to prompt ideas and actions
00 2005 2004 2003 2002
Personnel costs in millions of EUR 2,836 2,671 2,443 2,252 2,175
Personnel costs as % of net sales 26.8 28.0 29.9 30.5 28.7
Number of employees (incl. apprentices) 38,428 37,406 35,529 34,221 31,843
The No. 2 for scientists
Its clear orientation towards values makes Boehringer
Ingelheim a top employer in the pharmaceutical
industry, according to a web-based Science survey
from October 2006. In particular, it found that the
respectful treatment of employees, their loyalty and
the social orientation of the company rank Boehringer
Ingelheim the second most attractive employer (from
number 8 last year) to scientists in the USA and
Western Europe.
from everyone at Boehringer Ingelheim that will
benefit all.
A model of our successful adaptation to changing
employment requirements is offered by
Boehringer Ingelheim Germany. With kinder-
gartens on two sites, educational supervision for
schoolchildren during the summer holidays and
interns for employee children, flexible working
times, more than 100 varying part-time working
models and access to elderly care services as well
as emergency caring arrangements, the organi-
Hans-Joachim Geppert, Head of Corporate
Division Human Resources at Boehringer Ingelheim
says: “We try to provide a working environment for
our employees where they can challenge assumptions,
make decisions and where they find the freedom to
implement innovations.”
In other categories, such as “clear vision to the future”
or “innovative leader in the industry”, Boehringer
Ingelheim also ranked top. The 656 respondents
were mainly employed in the biopharmaceutical
and biotechnology sector (67 %), where Boehringer
Ingelheim is one of the leading international
our caring culture
companies. Two thirds of the respondents held Ph.D.s.
Our people
1

Company childcare enters new territory
In an old orchard on Boehringer Ingelheim’s sprawling US
campus in Ridgefield, Connecticut, a long, one-story building
fits discretely into its surroundings. This is the Apple Blossom
Children’s Learning Center, an exciting new venture in company
childcare provision. The building reflects the architectural
language of the site, Boehringer Ingelheim’s US headquarters,
where some 2,200 people are employed, many in research and
development.
The Apple Blossom Center, inaugurated in September 2006,
will take care during the week of up to 156 children from only
six weeks old up to 12 years of age. It is open from 6.30 a.m.
to 6.30 p.m.
1
Boehringer Ingelheim A n n u A l R e p o R t 2 0 0 6
“We believe the center will stand out noticeably among the
many other outstanding benefits we offer, such as our excellent
relocation policy,” David Nurnberger, Senior Vice-President
Human Resources, says. “It might even be one of the main
reasons a candidate would choose to work at Ridgefield, since
working people with children can readily appreciate its value
and convenience.”
At full capacity, the center will have about 35 teachers, all
of whom must have a degree in either education or human
service. The learning center is headed by Katrina Maloney,
who has a degree in early childhood education and has worked
with children for over 17 years. “We are an early learning
center; we’re not babysitting children all day. We have very
specific curricula, from infants all the way up to the oldest
children at the center,” Ms Maloney says.
A group has one or more rooms to itself, with the distribution
dependent on the numbers enrolled in the various groups.
The center, which assigns two teachers to every room, also
provides private kindergarten and after-school care. It also
has a drop-off programme.
Boehringer Ingelheim provides childcare at several of its sites,
focusing primarily on the pre-school age group. In Germany,
the company’s Ingelheim and Biberach sites run all-day crèches
for very young children (both in cooperation with external
partners), taking employees’ children and children from the
surrounding community. The company’s kindergarten provision
is also conducted in cooperation with the local authorities at
the Italian sites, Milan and Florence. In Spain, for example,
the company runs an annual summer camp in which about
120 children took part in 2006.

sation received highly esteemed certification for
its achievements and commitment to making the
employment conditions more family-friendly
(see page 16). Our German operating unit furthermore
had 667 apprentices in 2006 (+2.6 %), again
exceeding the previous year’s total engaged in
internal vocational programmes.
Enhancing our capabilities
To enhance the knowledge of our employees and
support life-long learning, the Boehringer
Ingelheim Academy, with its many options from
vocational subjects to leadership development,
offers all employees a unique source of information
about available qualification and updating
opportunities.
Awards 2006
Country Ranking Survey
Our biannual International Management
Development Programme is one of our popular
leadership enhancement schemes and is the
object of external industry benchmarking and
research. Our international and interdisciplinary
development approach involves around 100
potentials learning and working on stretching
topics of strategic relevance over 14 months.
International projects and assignments continue
to be at the core of our global capability development
strategy. Placements lasting up to two years
have increased considerably. The aim of all these
measures is to assign individuals to tasks in
which their skill sets are most required and can
best benefit the business, and to enable them to
gain international experience in dealing successfully
with different economies cultures, and
business practices, while appreciating the rich
diversity of our corporation.
Argentina Best Employers in Argentina (Apertura Business Magazine)
Austria Great Place to Work: The best companies to work for in Austria
Belgium The fastest growing large companies
Brazil among Top 10 Great Place to Work: The best companies to work for in Brazil
Brazil Great Place to Work: The best companies to work for in Latin America
Denmark Denmark’s Best Workplaces
Finland Great Place to Work: The best companies to work for in Finland
France 1 Great Place to Work
Netherlands The 49 Preferred Employers in the Netherlands
Netherlands bronze Great Place to Work
United Kingdom 0 100 Best Companies to Work for (Sunday Times)
USA (Ben Venue) among Top 100 North Coast 99 Award
USA/Europe Science Survey
“Great Place to Work”®, USA, is an international initiative that has been undertaken for many years
in various countries to evaluate the world of work and employee satisfaction.
our caring culture
Our people
1

1
Caring for our neighbours
We are fundamentally committed to fostering economic and social well-being
in the countries and communities where we operate. Both as a company and
as individuals, we seek in a people-orientated and inspirational way to deliver
value through innovation in all we do. We contribute actively to communities,
charitable organisations and projects in research, science, education, healthcare,
culture and environmental protection.
Our commitment to our neighbours was again
demonstrated across the world in 2006 in a
broad range of activities involving thousands of
our employees and substantial company
resources, expressing our adherence to the
principles of social responsibility in both devel-
oping and developed economies.
Our employees’ enthusiasm for making personal
contributions is noteworthy. Their contributions
range from regularly giving part of their income
to good causes to using their spare time to engage
both at home and abroad in hands-on projects,
such as building homes for the poor.
Asia, Australasia, Africa
Our subsidiary in Indonesia, which in 2005
provided immediate support to victims of the
tsunami that devastated coastal regions in South-
East Asia, held its third annual healthcare programme
at its Bogor plant in 2006. The company
gave free treatment and medicines for almost 250
local people, with 20 Boehringer Ingelheim
employees, three doctors and two nurses dispensing
healthcare.
In the Philippines, we joined forces with Gawad
Kalinga (GK – “To give care”) as a corporate
donor to build homes for less fortunate Filipinos.
Boehringer Ingelheim employees will help build
homes for the local community over the next
three years.
Boehringer Ingelheim A n n u A l R e p o R t 2 0 0 6
Our Australian operation supported projects in
other parts of the region, participating in the
Collaboration for Health in Papua New Guinea
Project and in the design and implementation of
a pilot scheme to train healthcare workers in the
treatment of people affected by HIV/AIDS.
Substantial charitable activities continued in
Australia, including funds donated to the
Innisfail Hospital after the area was struck by
Cyclone Larry.
In South Africa, where we provided the prime
funding for the country’s first lung institute,
the company also sponsors children in a Johannesburg
childrens’ home as one of its many
activities. In Botswana, the Boehringer
Ingelheim Training and Facilitation Centre
in Gabarone continued in 2006 to facilitate
important conferences and educational events
for healthcare professionals and government
officials, especially related to AIDS (“Turning
the Tide” training programme). The year also
saw the first pharmacy student commence
studies at Rhodes University under a Boehringer
Ingelheim-funded programme agreed with the
Botswana government. Pharmacists on the
programme are bonded to take up service in the
public sector after completing their studies.
Americas
In North and South America, our company
and employees were engaged in a comprehensive
range of activities. In the USA, this involved

Open Day 2006 in Germany
draws record attention
Boehringer Ingelheim holds open days for employees’ families
and friends, and the general public. The 2006 events in mid-
September at the main German sites, Ingelheim and Biberach,
attracted a record number of visitors keen to find out more
about the research-based company. The opportunity to take a
look behind the scenes in areas normally only accessible to the
workforce drew a combined total of almost 25,000 people.
The visitors, many of them enthusiastic children, came to the
Boehringer Ingelheim sites to spend a day meeting the staff,
seeing the research and manufacturing facilities and learning
about the many-sided nature of pharmaceuticals.
Open Day 2006 was designed to provide insight into the key
technologies for the discovery, development and production of
innovative drugs. There were also guided tours through a range
of state-of-the-art buildings, including the company’s plant for
worldwide production of pharmaceutical substances and the
new biopharmaceutical production unit.
Broader interests were accommodated, too. Those interested
familiarised themselves with the company’s own power
plant, the water purification plant and the on-site firefighters.
Information on the wide choice of career opportunities at
Boehringer Ingelheim was naturally provided as well. The
events at Ingelheim and Biberach formed part of the nation-
wide initiative ‘Responsible Care®’, organised by the National
Federation of the Chemical Industry.
our caring culture
Caring for our neighbours
19

0
Children from St Margaret Clitherow Primary School
receiving their prizes – one first prize and two runner-up
awards – in the 2006 Environmental Art Competition,
an annual event in which children develop artwork
reflecting the theme of recycling. Run by Boehringer
Ingelheim UK for 10 year-old pupils, the competition
fosters environmental awareness and supports the
national curriculum for this age group. Five schools in
the county of Berkshire took part in the competition.
volunteering by our employees. A “Day of Car-
ing” gave employees at our site in Ridgefield,
Connecticut, the opportunity to volunteer for
tasks to help the aged and deprived. Our US
employees also participated in many sponsored
events to raise funds for good causes.
The Boehringer Ingelheim Cares Foundation
Patient Assistance programme makes our
products, worth millions of dollars, available to
US patients who are without pharmaceutical
insurance coverage and who meet certain household
income levels. This is geared toward helping
provide medication to those who need them
most, including senior citizens and families
on limited incomes.
Boehringer Ingelheim A n n u A l R e p o R t 2 0 0 6
In Latin America, our Mexican subsidiary in
2006 concluded its support programme for
educating 6,370 poor children in schools
in Xochimilco (Mexico City) by installing
media rooms.
Our Brazilian company was committed in the
social responsibility programme, “Conectar”,
designed to help disabled people to prepare for
the jobs market, using our human resources
professionals in cooperation with other organisations.
It also supported Associação Aliança
pela Vida (Alliance for Life Association (ALIVI))
that provides shelter and care to adults and
children living with AIDS.
Europe
In Germany, the scope of our community
involvement is very broad, embracing kindergarten
provision and assistance for the aged
and disabled.
The latest cooperation project between our
Biberach site and the charitable organisation
Heggbacher Einrichtungen provided two disabled
people with much needed home improvements.
Employees of the company’s health and safety
section volunteered their free time to refurbish
an apartment.
In the United Kingdom, we have developed
close partnerships with local schools. Our UK
employees also donate money to charitable
causes under a payroll giving scheme and get two
days off a year to work on community initiatives.
Our Portuguese subsidiary is engaged with an
NGO to support HIV-positive people.

Modern patronage
Interview with Dr Patricia Rochard
For almost five decades, the Internationale Tage (International
Days) in Ingelheim have offered art enthusiasts a special insight
into different world cultures, the works of individual artists and
important art movements. Exhibitions on specific themes, such
as the art of the South Seas, Japanese woodcuts, Fauvism and
Expressionism, Viennese Biedermeier or the spirit of the 50s
in Paris, not only fired visitors’ enthusiasm with the displayed
works, but also through their conception and educational
qualities.
It all started with the idea of offering people a chance to get
to know the life and culture of other nations and peoples in
an international company setting. The central theme of
cultural openness and continuing education prompted Dr Ernst
Boehringer, co-owner of the family-owned Boehringer
Ingelheim, to stage an annual cultural festival in 1959. The
International Days team was subsequently led for almost three
decades by Dr François Lachenal of Switzerland (1918–1997).
Dr Patricia Rochard, a Frenchwoman who has been managing
the International Days since 1988, has worked for the
programme since 1975.
Dr Rochard, in 2006 the International Days were devoted to
the works of Andy Warhol. How did the exhibition handle the
artist? By bringing together familiar and known dimensions
in surprising contexts. This altered perspective highlighted unfamiliar
and unknown aspects of his work.
Your choice of subjects is extremely varied. Do you have an
overall concept for the International Days? Rather than an
overall concept, I’d prefer to describe it as a basic or central
idea. As sponsor and patron of the International Days, the owner
family was, and still is, interested in conveying humanistic and
cultural values. Thus, diversity, openness, education and insight
are some of the crucial elements, or main pillars, of this idea.
The International Days used to be devoted to country-specific
themes. Due to increased mobility in our society and the wealth
of information available, the image of the International Days has
changed considerably since its early days. In recent years, the
focus has increasingly been on themes intrinsic to art.
our caring culture
What demands do you make of your exhibitions? First of all,
they must be consistent with the basic idea behind the International
Days. That means we can’t make arbitrary choices or
play catch-up, according to events, splendour or fashion trends.
On the other hand, we can’t choose subjects that are only accessible
to a small circle of connoisseurs. The primary goal is to
address both a wide audience interested in art and the professionals.
It’s not always easy to find the right balance, but we
make every effort to do so by setting a high standard of quality
when preparing the concept and selecting and presenting the
exhibits.
Has Boehringer Ingelheim some special motivation for
supporting the International Days? The history of the International
Days is the history of a commitment to culture that is
steeped in tradition, the purpose of which is neither to achieve
short-lived impact nor economic success. This is wholly in
keeping with the spirit of modern patronage which also enjoys
the support of the fourth generation of company owners.
What is the theme of the exhibition in 2007? Picasso – Variation
& Metamorphosis. After Tinguely 2005 and Warhol, the aim
here is again to highlight a known aspect of Picasso’s work while
attempting to gain “new” insights into the artist’s approach to
work and lifestyle post-1945 by focusing strictly and specifically
on a few themes and variations on them.
Caring for our neighbours
1

Our environment & employee safety
According to the guiding principles (Leitbild) of Boehringer Ingelheim, the
health and safety of its employees and the protection of the environment has
a very high priority, a fact also underlined by our “Principles on Safety, Quality
and Environmental Protection.” Compliance with company-wide global
standards is regularly checked in audits – a total of 13 in 2006 – by Corporate
Headquarters. Agreed annual targets support the implementation of our
environment health and safety (EHS) policy, which includes the commitment to
the principles of Responsible Care®, a global initiative of the chemical industry.
A corresponding management system ensures
not only that legal requirements are satisfied, but
also that continuous improvements in EHS are
achieved at all production sites. In 2006, our
chemical site in Fornovo, Italy, and the pharmaceutical
site in Yamagata, Japan, were certified
by external institutions according to the international
standard ISO 14001.
For further details of our EHS management
system please visit www.boehringer-ingelheim.
com/ehs
The following current examples show how we
put our policies into practice:
Responsibility for our employees
Highly potent substances that represent a benefit
to patients at low doses, can pose a health risk to
employees in production or development when
inhaled as dust. We therefore set exposure limits
for all our substances in order to ensure that
none of our employees are exposed to excessive
concentrations. During the past year, technological
solutions implemented at, for example,
our sites in Biberach, Germany; Ridgefield, USA;
and Kawanishi, Japan, were designed to ensure
Boehringer Ingelheim A n n u A l R e p o R t 2 0 0 6
that new, and often highly potent, active ingredients
with very low exposure limits, can be
handled safely without the need for respiratory
protection.
But technical measures are not the only way
of protecting the health of personnel. In fact,
a review of our accident statistics shows that
the majority of work accidents were not related
to activities specific to the chemical or pharma-
ceutical industry, but that one third of the
cases involved slips, trips and falls. Our sites in
Germany have addressed this seemingly trivial
problem by initiating a large-scale campaign –
Work accidents
■ Frequency rate =
accidents x 1 million hours / total labour hours
■ Severity rate =
lost labour days x 1 million hours / total labour hours
4
3
2
1
’02 ’03 ’04 ’05 ’06
80
70
60
50
40

“Boehringer Ingelheim geht sicher” (Boehringer
Ingelheim walks safely) – that includes a
physical training course. This successful model
will also be introduced in other countries.
Our business partners
We do not just focus on Boehringer Ingelheim
personnel. As we have observed that the accident
rate among the large number of employees from
outside companies at our plants is distinctly
higher than for our own employees, we have
focused our attention even more closely than
hitherto on the safety of this group of workers.
A revised global policy specifies the ground rules
for ensuring that these companies endanger
neither themselves nor others. Accordingly, even
before an order is placed, as well as during its
execution, we scrutinise the companies to determine
if they can satisfy our requirements for safe
working.
We have also revised our business process for
the qualification of suppliers and third party
manufacturers and expressed clear requirements
related to EHS and social standards.
Water
■ Water consumption (in millions of m 3 )
■ Water consumption index (in %)
10
8
6
4
2
’02 ’03 ’04 ’05 ’06
120
100
80
60
Product responsibility
One of the ways in which we fulfil our obligations
in respect of product responsibility is
through environmental risk assessments for our
drugs. Product responsibility in the wider sense
also includes the implementation of the Registration,
Evaluation and Authorisation of Chemicals
(REACH) regulation, a cornerstone of the future
EU chemicals policy. Over the past year, we
started preparing all our European sites for the
implementation of REACH. The objective of the
regulation is to enhance the safety of all those
involved along the product chain and to protect
both consumers and the environment. In future,
companies will only be permitted to use or
market correspondingly registered products.
Minimising environmental impact
The importance of reducing carbon dioxide (CO2)
emissions in the future was again highlighted
at the World Climate Conference in Nairobi in
November 2006.
Since 2005, Boehringer Ingelheim has managed
to improve its own CO2 balance by a quarter,
Energy
■ Energy consumption (in millions of gigajoules)
■ Energy consumption index (in %)
5
4
3
2
1
’02 ’03 ’04 ’05 ’06
our caring culture
Our environment & employee safety
120
100
80

thanks to the use of the wood-fired power station
in Ingelheim, Germany. In addition to power
generation, energy efficiency is considered in the
construction of new buildings. A recent example
is the new pharmaceutical development building
in Biberach, which opened in 2006 and optimises
energy efficiency through heat recovery and
other measures. The latest illustration of this
approach is provided by a new administration
building currently under construction in Ingelheim.
The building’s energy needs will be met by
an environment-friendly geothermal system: the
energy will be obtained by means of 32 brinefilled
earth probes inserted into 100-metre-deep
shafts.
Crisis preparedness / incidents
Boehringer Ingelheim does everything in its
power to avoid incidents. Indeed, no major incidents
were reported in 2006. However, should
a crisis occur, there are plans in place which
Carbon dioxide (CO )
■ CO2 by energy purchased (in 1,000 tonnes)
■ CO2 by process emissions (in 1,000 tonnes)
■ CO2 emissions index, direct emissions (in %)
(without company car fleet)
500
400
300
200
100
’02 ’03 ’04 ’05 ’0
Boehringer Ingelheim A n n u A l R e p o R t 2 0 0 6
120
100
80
60
allow us to react quickly and appropriately to
different incidents. Last year, we established
an additional crisis management plan to be
prepared in case of pandemics.
In this report we can highlight only a proportion
of the variety of our EHS activities. We constantly
deal with further topics, which are
described on our website at www.boehringeringelheim.com/ehs
Awards
Our site activities yet again received external
recognition in 2006: the chemical site in Malgrat
was awarded by the Spanish chemical industry
association for its successful accident prevention
programme. The US pharmaceutical site in
Bedford, Ohio, was rated among the top “Healthy
50 companies” in Ohio. The Animal Health
site in St. Joseph, Missouri, USA, received an
award for exemplary wastewater treatment.
Volatile organic carbon (VOC)
■ VOC emissions, non-halogenated (in tonnes)
■ VOC emissions, halogenated (in tonnes)
■ VOC emissions index (in %)
1,000
800
600
400
200
’02 ’03 ’04 ’05 ’0
120
100
80
60

The pharmaceutical site in Shanghai, China,
was presented with an award for its exemplary
energy-saving efforts.
Facts and figures
The graphs on these pages show our performance
figures for the last five years.
The key parameter for our performance in
occupational safety is the accident rate relative
to hours worked. As the graph shows, this
has remained at the same level as in previous
years and is well below the average of about
seven accidents/million hours worked for the
European chemical industry.
Our environmental impacts are shown both as
absolute values and relative to production –
represented in our production index. The calcu-
lation of the index was slightly revised in 2006.
Our new baseline year is 2000. As additional
Wastewater — chemical oxygen demand (COD)
■ COD load before treatment (in tonnes)
■ COD load after treatment (in tonnes)
■ COD load (after treatment) index (in %)
8,000
6,000
4,000
2,000
’02 ’03 ’04 ’05 ’0
80
60
40
20
25,000
20,000
15,000
10,000
5,000
information, we will show on our website the
contributions made by our individual business
segments – Chemicals, Biopharmaceuticals and
Pharmaceuticals Production – to the respective
indicators.
Over the last few years, most indicators have
reached a stable level because many previous
technical or organisational improvements
resulted in an already high performance stand-
ard. Many of our ongoing efforts are no longer
reflected in our performance data as clearly as
during the earlier years. In 2006, we observed
a noticeable increase in hazardous waste and a
decrease in the recycling rate. This effect can be
mainly ascribed to the disposal of the slag from
wood-burning in the Ingelheim power plant.
While in the past the slag could be reused for
filling salt deposits, it is now brought to landfill
sites. For a more detailed explanation of the
individual graphs, please visit www.boehringer-
ingelheim.com/ehs
Disposed waste
■ Domestic waste (in tonnes)
■ Hazardous waste (in tonnes), incl. pharmaceutical waste
■ Disposed waste index (in %)
■ Recycling rate (in %)
’02 ’03 ’04 ’05 ’06
our caring culture
100
90
80
70
Our environment & employee safety

Our goals
We shall continue to invest in closed systems in
order to protect our employees handling highly
potent substances. Corresponding modifications
in the two pharmaceutical sites in the USA, as
well as in Ingelheim, are planned for 2007/08.
There is also potential for the reduction of emis-
sions of volatile solvents (VOC) to the air. We are
making changes at our chemical site in Spain,
where VOCs will be eliminated in future through
thermal oxidation rather than by scrubbing with
aqueous media. In Ingelheim, too, additional
plants are to be connected to the existing incin-
erator. Our goal for 2008 is to halve our VOC
emissions.
In order to adapt our wastewater treatment to
increasing loads, we started a major investment
in our Ingelheim wastewater treatment plant.
Boehringer Ingelheim A n n u A l R e p o R t 2 0 0 6
An additional state-of-the art treatment step will
make the process more effective, will increase
nitrogen removal by improving the nitrification/
denitrification process, and will also target the
specific halogen-containing wastewater which is
difficult to treat when using only conventional
technology.
Energy savings represent another priority issue:
the new laboratory and administration building
at our production site in Bedford, Ohio, will be
constructed in accordance with the Leadership
in Energy and Environmental Design (LEED)
standards, a recognised rating system for environment-friendly
and cost-effective buildings.
The goal is to obtain the LEED certification.

Our R & D drive

Targeting tomorrow’s therapies
The evolution of concepts for cancer treatment into targeted therapies has changed the
chances for some cancer patients drastically. New cancer treatment options may help to
transform an acute, deadly disease into a chronic one. There is hope that in future more
and more patients will at least be able to live with their cancer and survive into old age.
“Patients and their doctors have many new opportunities and there are some excellent drugs
available and even better ones under development,” says Professor Aimery de Gramont of
the Hôpital Saint-Antoine, Paris, an internationally recognised centre for cancer treatment.
In research, change is already taking place, with a movement away from concentrating on
tumour types, such as breast, lung or colorectal cancer, towards tumour-specific targets
that can be identified and treated with small molecules or monoclonal antibodies in a variety
of tumour types. Additionally, the combination of cancer medicines seems to be a key to
even better treatment results. Indeed, it looks as if the time for cancer drug development
has never been better, as genomics, proteomics and biomedical analysis have prepared
the ground for tomorrow’s therapies.
By focusing on both biopharmaceuticals and small-molecule drugs, Boehringer Ingelheim
has embarked on a major drive to discover and develop new cancer drugs. “Particularly in
the last few years, Boehringer Ingelheim has become a serious player in the area of oncology,
with a whole range of interesting molecules,” Prof. de Gramont, one of the world’s leading
experts in oncology, says.
As one of the main international cooperation partners for oncology, the Hôpital Saint-
Antoine conducts clinical studies in cancer patients for Boehringer Ingelheim’s new potential
cancer treatments. The substances belong to the group of small molecules which effectively
target specific enzymes (kinases) that play an important role in tumour growth. Although
oncology is a highly competitive field in which no company has exclusivity for a target, and
there are always several companies working on the same target, Boehringer Ingelheim has
advanced three unique molecules into phase II clinical trials.
BIBF 1120 is a novel triple angiokinase inhibitor. It differentiates from other compounds
of this kind, as it works on three tumour growth factors simultaneously. The compound
inhibits the development of new blood vessels to the tumour (tumour angiogenesis) and in
consequence stops the tumour from growing.
continued on page 30

Professor Aimery de Gramont, Hôpital St-Antoine, Paris, France,
internationally renowned for his expertise in the field of cancer research.

0
continued from page 28
“Boehringer Ingelheim has become
a serious player in the area of oncology,
with a whole range of interesting
molecules,” Professor Aimery de
Gramont.
BIBW 2992 is a novel dual kinase inhibitor which irreversibly blocks the activity of two
growth factor receptors (EGFR and HER 2). Due to its irreversible binding, BIBW 2992 holds
promise for activity against receptors that have become resistant to first-generation
reversible inhibitors.
BI 2536 is a novel inhibitor of the cell cycle of a cancer cell. Polo-like kinase 1 (Plk-1) is a cell
cycle switch, a kinase enzyme with an important role for guiding proliferating cells through
the cell cycle. BI 2536 inhibits Plk-1 and causes “polo-arrest”, interrupting cell division, thus
causing cancer cell death.
The cooperation between Boehringer Ingelheim and the Hôpital Saint-Antoine is aimed at
optimising the process of drug development in oncology and thus to improve the speed of
clinical development.
“Boehringer Ingelheim is much newer to oncology than other companies we work with,
but the interaction is very meaningful and effective. Decisions can be made quickly and
suggestions are taken up very effectively,” Prof. de Gramont observes about the cooperation.
“Boehringer Ingelheim shows strong commitment to research programmes and long-term
partnerships. This commitment is beneficial for our work and – in the long run – beneficial
for patients.”
Boehringer Ingelheim A n n u A l R e p o R t 2 0 0 6

One key for three locks
Interview with Dr Chooi Lee
Oncologist Dr Chooi Lee was involved in the clinical phase
I development of one of Boehringer Ingelheim’s promising
potential cancer treatments, encoded as BIBF 1120, when
a research fellow at the Royal Marsden Hospital in London.
Dr Lee, you have worked with BIBF 1120, one of the new
compounds from Boehringer Ingelheim’s research. How would
you describe the effect that the molecule actually has? BIBF
1120 limits nutrition provided to cancer cells by inhibiting the
development of blood vessels to the tumour (tumour angiogenesis).
By inhibiting this process, the tumour’s blood supply
can be suppressed which stops the tumour from growing. Some
studies have shown that the tumour is actually dying in the centre
because of starvation due to a lack of nutrition as a result of
decreased blood supply to the tumour.
How exactly does BIBF 1120 work? BIBF 1120 is a so-called
triple angiokinase inhibitor which means that it inhibits receptors
that are relevant in angiogenesis and hence in tumour growth.
BIBF 1120 inhibits not only one growth factor receptor, but three:
the VEGF, FGF and PDGF receptors. The Boehringer Ingelheim
compound has therefore a broader range of targets compared to
others in this area.
What has been investigated in phase I clinical trial? It was a
dose escalation phase I study to look at the maximum tolerated
dose of the drug to evaluate safety and tolerability.
In general, the principle of inhibiting angiogenesis is already
known to be effective against cancer, so such a drug would
not be the first on the market. What makes this compound
BIBF 1120 so special? It is certainly very special that BIBF 1120
is targeting three growth factor receptors at once, instead of
just one. The data have shown that BIBF 1120 has a unique and
favourable toxicity profile, which is different to the other drugs
The formation of new blood vessels (angiogenesis) plays a
critical role in tumour growth. Beyond a diameter of about
2 mm tumours are dependent on an adequate blood supply
through newly formed vessels. Inhibition of angiogenesis
via specific pathways thus represents an important strategy in
inhibiting cancer growth and causes the tumour to regress.
out there, for example in terms of lower incidents of hypertension
and bleeding complications which are common side effects of
other antiangiogenic drugs.
Do you think that with BIBF 1120 disease progression could
actually be stopped? Yes, during Phase I, more than 50 % of the
patients, who already had standard treatment for their cancer,
and did not have any further treatment options left for their
advanced disease, experienced stabilisation of their disease,
which is very promising.
BIBF 1120 is now in phase II clinical development.
our r & d drive
Targeting tomorrow’s therapies 1

Our R & D strategy
Research and development has been the foundation of Boehringer
Ingelheim’s success and continues to be the major driver of innovative,
new medicines. One key element of the strategy is to expand the discovery
and development portfolio into new biological entities (NBEs see page 42),
derived out of internal research as well as out of in-licensing efforts
without neglecting to foster internal new chemical entities (NCE) R&D
capabilities. These NBEs are planned to be co-developed with and produced
by our Biopharmaceuticals Division. We have therefore continued to build
up dedicated resources, predominantly in Vienna and Biberach.
Today, we carry out drug discovery in seven
major therapeutic areas allocated to four major
R&D sites. Our R&D sites maintain strong
responsibility and accountability for their thera-
peutic areas locally and deploy their innovation
and flexibility. International scientific reviews
and portfolio management ensure a sustainable,
competitive and risk-balanced discovery pipeline.
To further strengthen our R&D organisation we
have implemented international skill centres to
improve efficiency and to secure equal access to
state-of-the-art technologies and informatics
platforms for all sites.
Boehringer Ingelheim recognises in-licensing
and partnering as a key component of our drive
to deliver novel therapeutics to the market.
While our major licensing focus is in our strategic
therapeutic areas, we very successfully develop
and market products outside these areas as well.
Boehringer Ingelheim A n n u A l R e p o R t 2 0 0 6
Our licensing functions along the value chain
are supported by interdisciplinary, therapy-areaspecific
advisory and project teams ensuring
speed and diligence in objective evaluations, and
seamless incorporation of partnered projects.
Worldwide, we employ more than 3,300
scientists, technicians and support personnel
in preclinical R&D. They are complemented
by about 2,300 clinical monitors, statisticians
and data managers in clinical development
and medical departments.

Our R & D sites
Biberach and Ingelheim,
Germany
CNS, respiratory, metabolism,
non-clinical development
In our largest R&D center in Biberach, more than
1,600 scientists from about 20 nations energise
our research and development while nourishing
the interdisciplinary scientific exchange as on a
research campus. Biberach is the competence
centre for several therapeutic areas: central
nervous system (CNS), metabolic and respiratory
diseases. Furthermore, our Human Pharmaco-
logical Center, in operation since 2004, secures an
important link to the clinical investigation of
compounds.
Projects in Biberach benefit from the open and
constructive interaction among our scientists, as
well as with academia and biotech companies,
with whom numerous scientific collaboration
agreements have been signed.
Since developmental aspects are considered early
during drug discovery, the high attrition rate
during the process could be reduced. The
challenges of target validation and clinical proof,
however, remain, but are now actively addressed
by dedicated technology-driven expert groups at
the Boehringer Ingelheim Global Skill Centers
(GSCs).
Development efforts in Germany support the
research centres in Biberach and Vienna with
all early and late development functions. For
increased efficiency, the late chemistry, manufac-
turing and control, as well as the development of
inhalation devices, have been centralised in
Germany for compounds stemming from all
research sites.
“The key to success is ‘never stop striving for more!’,” comments
Dr Michel Pairet, Senior Vice-President Research in Biberach, on the
ambitious goals for the upcoming year. “We want to see one or two of
our compounds achieving clinical proof of concept, and three to four
compounds to successfully complete phase I clinical trials. What’s
more, we plan to bring four or five new high-quality compounds into
preclinical development. And more: Boehringer Ingelheim regards
it a critical endeavour to fully integrate new biological entities in its
project portfolio.”
Dr Pairet forecasts a busy year of R&D at Biberach: seven new
compounds which have been added to the preclinical portfolio last
year will now have to be further characterised. “In addition, we are
looking forward to having the first compounds coming out of collaborative
research with academic groups or biotechs.”
The research teams’ outstanding efficiency is attributed to two main
factors – the company’s size and the fact that Boehringer Ingelheim
is family-owned: “Our scientists have the spirit of freedom to work
and think in the long term, concentrating on true medical need and
compound safety, rather than on glossy presentations to investors.”
For the future, teams will prepare to enter new therapeutic areas for
which there is a high unmet medical need. “With the new structure
we are well prepared for future tasks, since we allocate development
resources on a global basis jointly with our colleagues in Ridgefield.
Germany will, furthermore, be the link between research and
manufacturing, since we have the late stage chemistry manufacturing
and control responsibility for the entire portfolio. Last but not least,
the excellent exchange with our colleagues from research and
medicine position us well for the challenges of a full portfolio,” says
Dr Wolfgang Baiker, Senior Vice-President Development in Germany.
Dr Wolfgang Baiker,
Senior Vice-President
Development,
Germany
Our R & D sites
our r & d drive
Dr Michel Pairet,
Senior Vice-President
Research, Germany

Ridgefield, USA
Cardiovascular, immunology
and inflammation, non-clinical
development
Research and Development at Boehringer Ingel-
heim Pharmaceuticals, Inc. was established in
1979 and was built up as a centre for immune &
inflammatory diseases. Only a few years ago, in
2003, it also became the R&D competence centre
for cardiovascular diseases.
In the area of cardiovascular diseases, chronic
heart failure, atherosclerosis, hypertension and its
sequelae are targeted. In immunology & inflam-
mation, Boehringer Ingelheim’s focus is on
autoimmune diseases such as rheumatoid arth-
ritis, psoriasis and multiple sclerosis. In the last
three years, the Ridgefield site has seen major
investments in staff and facilities with the aim of
strenghtening the previously mentioned key indi-
cation area pipeline.
In order to strengthen our early development
capabilities, a new physical science building has
been erected and is about to be opened. It will
provide a state-of-the-art facility for analytical
science and chemical development.
With the aim of benefitting all of our global
research sites, Boehringer Ingelheim has recently
established global skill centers (GSCs) to strengthen
its position in technology areas of strategic impor-
tance. Ridgefield has established the GSC for high
throughput cloning and expression and shares
responsibility for the alternative lead identification
and compound pool optimisation the GSCs
with Biberach, Germany.
Boehringer Ingelheim A n n u A l R e p o R t 2 0 0 6
“My most interesting and satisfying experiences have been seeing the
fruits of our research tested in patients for the first time,” says Paul
Anderson, Senior Vice-President Research at the US R&D centre.
“That is what our work is all about.” Dr Anderson outlines that apart
from the classical research another focus of the efforts in Ridgefield is
the build-up of a pipeline of NBEs (see page 42). Capitalising on the
expertise of the Biopharmaceuticals business, the teams will be able
to advance innovative NBE projects in areas where biological therapeutics
can provide important advances.
The confidence in the success is based on solid ground. “The distribution
of our seven therapeutic areas to specific sites among our four
major drug discovery centers allows each site to focus, with a critical
mass, on the therapeutic areas under its responsibility, and gives each
site the focus and autonomy of a biotech company with the resources
and backing of a major international pharmaceutical company,” he
stresses.
There is a positive picture for what is to come: “In recent years, we
have successfully built a truly globalised development structure which
has strengthened our non-clinical development in Ridgefield. Our
new physical science building adds an important capability to achieve
our goal of supporting research in Ridgefield and Laval, but also adds
the needed capacity in development worldwide. Our experience in
working closely with research colleagues provides an important advantage
and drives the rapid and efficient development of compounds in
our therapeutic areas,” notes Dr Peter Farina, Senior Vice-President
Development at Boehringer Ingelheim, Ridgefield.
Dr Paul Anderson,
Senior Vice-President Research, USA
Dr Peter Farina,
Senior Vice-President
Development, USA

Laval, Canada
Virology
Boehringer Ingelheim’s Research Center in Laval
is one of Canada’s largest pharmaceutical research
sites. Located near Montreal, over 130 scientists
and their complementing support staff are
Boehringer Ingelheim’s experts for discovering
potential treatments for chronic and acute viral
diseases for which either no vaccine exists or
current therapy is lacking or unsatisfactory. The
teams in Laval are dedicated to advance therapeu-
tics for diseases caused by the hepatitis C virus
and the human immunodeficiency virus (causing
AIDS).
HIV research in Laval aims to complement
Boehringer Ingelheim’s portfolio of existing HIV
treatments, e. g. viramune® (nevirapine, a non-
nucleoside reverse transcriptase inhibitor) and
aptivus® (tipranavir, a protease inhibitor). Further
compounds under development will be added to
the armentarium of drugs to treat HIV-positive
patients, particularly those where prior therapy
has failed due to development of a resistance.
State-of-the-art technology in the key areas chem-
istry and biological sciences, such as the nuclear
magnetic resonance (NMR) and X-ray technology,
as well as computer-aided image analysis, push
projects forward.
The increase in the number of research projects in
Laval are being complemented by the extension of
the research facility to about double the size. The
building is planned to be inaugurated in early
2008.
“What is most rewarding in my position is to receive
the positive response from collaborators regarding our
scientists and projects – and it’s humbling. Universally,
I hear our scientists’ high level of motivation, and the
obvious excitement they get from the science that they
do is unique,” relates Dr Michael Cordingley, Senior Vice-
President Research, about the teams in Laval.
By capitalising on research with first molecules in
hepatitis C in recent years and by implementing even better
technology to ferret out bad actors early, the teams will
continue to consolidate the strong position in hepatitis C
virus protease inhibitor and polymerase inhibitor devel-
opment in 2007. “We will also strengthen our activities
within our collaborative programme, for example with the
Australian biotech Biota Holdings, for additional comple-
mentary targets.”
The work is far from done in the HCV area. Current treat-
ment options still carry the serious safety and tolerability
problems associated with the standard care. “Our aspira-
tion therefore is to introduce oral combination therapy
which will deliver patients effective and well tolerated
oral treatments, rather than inconvenient injectables.”
The focus in Laval is on discovering antivirals with comple-
mentary mechanisms suitable for use together to combat
resistance and provide durable efficacy and safety. “Overall,
we aim for nothing less than providing safe and effective
novel oral medicines to improve treatment outcomes for
HCV and HIV-infected patients,” emphasises Dr Cordingley.
Dr Michael Cordingley,
Senior Vice-President Research,
Canada
Our R & D sites
our r & d drive

Vienna, Austria
Oncology
Boehringer Ingelheim’s dedicated drug discovery
center for innovative cancer medicines is located
in Vienna. Oncology was created as a new thera-
peutic area at Boehringer Ingelheim in response
to the substantial unmet medical needs of cancer
patients and the tremendous advances in under-
standing cancer biology, fuelled by the human
genome project, with new insights into cancer
genes and the biochemical signalling pathways
gone awry in malignant cells.
Research in Vienna reveals that scientific excellence
and the ambition to discover and develop
new medicines are not limited by national borders:
the more than 200 researchers in Boehringer
Ingelheim’s laboratories come from more than a
dozen countries worldwide. Together with the
global development center in Biberach and colleagues
in Medical, the discovery teams are committed
to new treatment choices for patients (with
locally advanced or metastatic cancers).
The oncology research campus is part of the
Regional Center Vienna, which has business
responsibility for Austria and twenty-nine
countries in Central and Eastern Europe. From
2000 to 2007, a highly modern, state-of-the-art
research infrastructure has been built up at the
Regional Center. Only recently, a new biology
research building has been opened, which
complements the chemistry research building
inaugurated in 2002. Within a very short time-
span, innovative drug candidates from in-house
research – both small-molecule chemicals and
human monoclonal antibodies – have been
advanced into development, including three
compounds currently in phase II clinical trials.
Boehringer Ingelheim A n n u A l R e p o R t 2 0 0 6
Of the nearly 25 million people diagnosed with malignant
cancers worldwide, more than half can be treated today
with long-lasting benefit; however, “close to seven million
cancer deaths per year are simply not acceptable,” explains
Dr Wolfgang Rettig, Senior Vice-President Research in Vienna.
“Available treatment options, particularly surgical inter-
ventions, are least promising when the cancer has spread to
distant organs, and at this stage of the disease the need for
more effective, targeted therapies with fewer side effects
becomes plainly visible. One in every three women and one
in every two men will be diagnosed with a malignant cancer
during their lifetimes, and this is a challenge we take very
personally,” Dr Rettig states.
The time for finding better cancer medicines has never been
better for Boehringer Ingelheim, since the company can build
on a very strong scientific foundation provided by academic
research centers worldwide. “Nevertheless, the road ahead is
long and arduous,” Dr Rettig forecasts. Boehringer Ingelheim
has entered the field of oncology with the persistence
and long-term vision possible for a family-owned group
of companies, and the outlook for patients is therefore
promising. Already, some cancer types are being treated
very effectively with targeted drugs, although not all
patients benefit equally. According to Dr Rettig: “With many
additional drugs in development, this trend will improve,
and we will continue to change the face of cancer, turning it
into a chronic disease with improved quality of life, one
step at a time.”
Dr Wolfgang Rettig,
Senior Vice-President
Research, Vienna

Our support centres
Kawanishi, Japan
Molecular biology,
non-clinical development
One of Boehringer Ingelheim’s centres for molec-
ular cell biology is located in Kawanishi, Japan.
Kawanishi is specialised in membrane receptor
targets providing dedicated support for drug
discovery activities. International development is
supported by early pharmaceutical work and ana-
lytical sciences. Furthermore, Kawanishi serves as
a skill center to characterise how drugs interact
with transporter molecules in the body.
Milan, Italy
Chemical synthesis
The Chemistry Research Center Milan, Italy, with
about 30 employees, contributes to advancing
research at an important stage of the process,
namely by providing expertise in synthesis in
exploratory projects and lead optimisation projects
for Biberach.
Buenos Aires, Argentina
Non-clinical development
Our support center in Buenos Aires operates in
close cooperation with the Ridgefield development
site and also provides assistance to production
plants in Argentina, Brazil, Colombia and
Mexico. From Buenos Aires comes added support
on drug formulation and the manufacture of
medication for clinical trials.
our r & d drive
Research Institute of Molecular Pathology
(IMP), Vienna, Austria – an independent
basic research institute
The bridge between our R&D people and academia is reinforced
by the strong link to the renowned Research Institute
of Molecular Pathology (IMP) in Vienna. IMP scientists are at
the forefront of discovery defining fundamental processes
of cell division and differentiation in healthy and diseased
states. In 2001, collaboration started between the IMP and
the Institute of Molecular Biotechnology Austria (IMBA),
which added a new dimension to our academic network.
Our R & D sites

Our expertise in landmark studies
Landmark studies are large-scale, randomised, controlled clinical trials for thousands
of patients recruited from a great number of sites around the world. Results have a
potential to broadly impact on clinical practice. All in all, in the last decade Boehringer
Ingelheim conducted or sponsored some 1,400 studies involving approximately
1.2 million patients in 59 countries in all regions of the world.
Among these studies, the ontarget/
transcend®, profess®, uplift® and
re-volution® trial programmes are land-
mark studies. They progressed according
to plan in 2006.
The ontarget trial programme, the cardiovas-
cular protection study with micardis® (telmisar-
tan), our angiotensin II receptor blocker, had
recruited over 31,000 patients by 2004, the end
of the recruitment interval. Since then, patients
have been followed up with regular clinical
examinations and are now in the last year of
observation. The primary target of the study is
to determine if the combination of micardis®
and the angiotensin-converting enzyme (ACE)
inhibitor ramipril is more effective in reducing
myocardial infarction, stroke, heart failure and
cardiovascular death compared with ramipril
alone, and, if micardis® 80 mg is at least as
effective as ramipril 10 mg daily.
Among the secondary endpoints are newly
diagnosed congestive heart failure, the need
for cardiovascular revascularisation procedure,
newly diagnosed diabetes, cognitive decline and
dementia. The transcend® trial with micardis®
versus a placebo looks into the same endpoints
but is focused on patients who cannot tolerate
an ACE inhibitor and may benefit from an angiotensin
II receptor blocker instead. Results are
expected in 2008.
Boehringer Ingelheim A n n u A l R e p o R t 2 0 0 6
The largest secondary stroke prevention study
profess® exceeded its recruitment target and
has now enrolled 20,333 patients. The primary
endpoint of this trial is time to first recurrent
stroke. profess® compares the efficacy and
safety of aggrenox® (25 mg ASA/200 mg
extended-release dipyridamole) with clopidogrel,
and additionally of micardis® (telmisartan) with
a placebo. First results are expected in 2008.
Every single step matters
Interview with Dr Salim Yusuf
What will the landmark trial ONTARGET mean for patients?
The ONTARGET trial programme is set up to investigate the
potential benefits of the combination of the angiotensin-II
receptor blocker telmisartan (ed: MICARDIS®) and the ACE
inhibitor ramipril in reducing myocardial infarction, stroke, heart
failure and cardiovascular death. We also have a parallel study
called TRANSCEND® where people who can’t take ramipril receive
either telmisartan or placebo. So between these two trials we
will learn whether telmisartan is at least as good as ramipril,
and whether the combination is more effective. This is important
because ramipril has some side effects and a significant proportion
of people can’t tolerate it. If telmisartan is as good as ramipril,
but is tolerated better, that is a positive finding for patients.
The second possibility is that telmisartan when added to ramipril
will have more benefit than either drug alone. That would be the
most exciting finding if confirmed.

uplift® is our 6,000-patient, long-term outcome
study with spiriva® (tiotropium bromide), a
novel once-daily inhaled anticholinergic for the
maintenance treatment of chronic obstructive
pulmonary disease (COPD). The trial has been
set up to prospectively confirm that spiriva® has
the potential to positively influence the progression
of COPD over time. The primary endpoint
is the rate of decline in forced expiratory volume
during the first second of exhalation (FEV1)
over four years in COPD patients. This study is
explored to be completed in 2008 as well.
Do you think that patients will understand the importance of a
“prevention treatment”, i.e. taking tablets for a condition which
does not hurt before infarction or stroke may occur?
The people in ONTARGET have all had a heart attack or stroke,
coronary disease or diabetes or some complications, or are
at high risk of developing these. These are patients who need
multiple approaches to prevent cardiovascular disease. Think of
it like climbing a staircase: every step matters. One step alone
won’t do.
How is the flood of information in this trial processed?
We have more than 700 trial centres in 41 countries. Data comes
in on 40 fax lines open to receive data continuously day and
night. The data are automatically screened and scanned by an
intelligent optical recognition system which enters them into a
special software for a first-level data check. Next, our specialists
check to see if there are things the computer missed. Some 180
individuals, research assistants, research coordinators, medical
officers, statisticians, programmers and administrative staff
collaborate here at The Population Health Research Institute at
re-volution®, the clinical trial programme in
thrombo-embolic disease, involves more than
27,000 patients and investigates dabigatran
etexilate, an orally available thrombin inhibitor
for the prevention and treatment of thromboembolic
diseases. Studies cover the prevention
of deep vein thrombosis following orthopaedic
hip or knee replacement surgery, as well as
treatment of thromboembolism, secondary
prevention of thromboembolism and stroke
prevention in atrial fibrillation. The studies are
scheduled for completion between 2006 and
2009.
McMaster University to make this an efficient process managing
some one and a half to two million pages of data every year. With
ONTARGET we will publish a large number of scientific paper
and analysis will go on for many years after the first announcements
of data in 2008.
Salim Yusuf, Professor of Epidemiology and Cardiology at
McMaster University in Hamilton, Ontario, Canada, leads
the research team for Boehringer Ingelheim’s ONTARGET
trial programme. Here he discusses the long-term project.
Our expertise in landmark studies
our r & d drive
9

From mind to man – the R & D process
It seems almost as impossible as finding a needle in a haystack.
From more than one million screened molecules, only one
will eventually enter the market as an approved medication.
Drug discovery, pre-clinical and clinical development take
about 1 years and an average investment of USD 00 million.
The development of a drug from mind to market has to
successfully pass through the stages described below.
years ›
Research
Target identification
Drugs usually act on cellular proteins, such as enzymes or
receptors, known as drug targets, which are believed to be
associated with a disease. Scientists use a variety of molecular,
genetic or pharmacological techniques to identify a target
and learn more about how it influences the disease.
research
Target validation
To select targets most likely to be useful for the treatment of a
disease, researchers compare each drug target to others based
on their association with a specific disease and their ability to
regulate biological processes in the body. Tests confirm that
interactions with the drug target effect the desired change in
the behaviour of the diseased cells.
Lead identification
Laboratory assays are developed that allow a rapid screening
of small molecules or proteins. Screening of chemical libraries
representing larger or smaller cellections of molecules that
with drug-like properties will identify leads, compounds that
specifially bind to the desired target.
Lead optimisation
Improvement of the properties of the identified leads in order
to support the selection of those compounds with the greatest
potential to be developed into safe and effective medicines.
The best lead compounds are studied for their therapeutic
effects and how they are absorbed, metabolised and excreted
in living organisms.
development
target
identification target
validation
lead
identification lead
basic research (academia)
pre-clinical
and exploratory research
(industry) optimisation
development
phase I
phase II
1 2 3 4 5 6 7 8

Development
Pre-clinical development
Profiling of the drug candidate with regard to safety according
to regulatory requirements prior to first use in humans is per-
formed. A chemical synthesis is developed and scaled up to
provide the necessary drug quantities for further development
and testing. The best dosage form for administration to pat-
ients and a suitable pharmaceutical formulation are identified.
Phase I
Clinical trials, normally performed in healthy volunteers,
provide results on the absorption, distribution in the human
body and excretion of an investigational compound, and on
short-term tolerability and safety, in order to determine a
preliminary dose range. Boehringer Ingelheim has two Human
Pharmacological Centers in operation in Germany (Ingelheim
and Biberach).
Phase II
Efficacy and safety in the target indication is established with
up to several hundred patients usually treated for several weeks
or a few months. These studies allow the determination of the
potential therapeutic dose range.
registration
regulatory
phase III approval phase IV (life cycle management)
9 10 11 12 13 14 15
our r & d drive
Phase III
Phase II results on efficacy and safety are refined and
confirmed in larger patient numbers (several thousands) and
surveillance of long-term treatment as appropriate for the
indication.
Registration / life cycle management
Regulatory approval
After clinical studies, results are submitted to regulatory agencies.
Independent experts give their opinion on whether or not
the drug product should be approved.
Phase IV (life cycle management)
The product is further profiled for more general and broader
real-life usage, in special patient subgroups and in the context
of an even broader concomitant therapeutic environment.
These trials may be extremely large (10,000—30,000 patients)
and therefore can better identify even rare adverse reactions.

New biological entities (NBE)
One of the fastest drug developers
Pharmaceutical companies that develop and launch new
products faster than their competitors perform consistently
better across a number of dimensions, earn higher revenues,
and have lower development costs. These findings were
reported in a newly-completed analysis of the period 2000 to
2005 from the Tufts Center for the Study of Drug Development,
based in Boston, USA.
Boehringer Ingelheim is widely recognised as a
world leader in all aspects of biopharmaceutical
manufacturing, from early process development
to large-scale commercial manufacturing in
microbial as well as mammalian expression
systems. Combined with our disease expertise,
our strategy is to create a comprehensive and
proprietary NBE programme, thus addressing
unmet medical needs in several indication areas
and expanding our proprietary NBE product
portfolio beyond actilyse®, metalyse®, imukin®
and beromun®.
To fully exploit our internal synergistic potential,
we have established expertise in human antibody
drug discovery facilitated by in-licensing key
technologies from MorphoSys (phage display)
and Medarex (genetically modified mice). We
have also strengthened our protein technology
infrastructure and allocated dedicated biology
resources.
Boehringer Ingelheim was represented amongst a group of
the fastest pharmaceutical companies. All of the fastest
companies shortened their development and regulatory cycles
by as much as 17 months, compared to average-performing
drug developers. They had far less development and regulatory
time variability, stopped projects sooner, instead of moving
Boehringer Ingelheim A n n u A l R e p o R t 2 0 0 6
Our current NBE discovery programme includes
some ten projects, a first step towards a steady
stream of innovative NBE therapeutics in
our development pipeline. Good progress was
achieved during 2006 with several projects
across multiple therapeutic areas moving to the
lead optimisation and pre-development stages.
We are also pursuing a number of biotechnology
collaborations to sustain and strengthen future
delivery of quality NBEs. With FivePrime Therapeutics
we are conducting a high-throughput
functional screen of their proprietary library
of secreted proteins and receptor ectodomains
to identify novel NBE targets for rheumatoid
arthritis. We are also currently looking into
new alliances on technologies that will help
us develop high-quality NBEs as a complement
to our successful alliances with Medarex and
MorphoSys.
them to ever more complex studies, and were better at setting
resource priorities, the survey revealed.
“We have in the last few years noted an increase in our R&D
productivity, as measured by increased output of compounds,
better project success rates and a growing R&D portfolio.
The Tufts survey addresses speed as yet another productivity
parameter. The data further supports the notion that our
international R&D strategy is on the right track,” says
Dr Mikael Dolsten, Executive Vice-President Pharma Research
of Boehringer Ingelheim. “In view of the very high R&D costs
– one reckons presently with more than EUR 800 million for
the development of a new drug – the speed to get valuable
drugs to the market is crucial, and may give us another competitive
edge over other pharma companies.”

Biomarker and pharmacogenetics
Realising the importance of biomarkers and
pharmacogenetics from early discovery phase
to post-launch in delivering more and safer
medicines with good and predictable efficacy
to patients, this area receives particular attention
in Boehringer Ingelheim. Biomarkers give an
objective read-out for drug target binding,
immediate downstream physiological effects
(pharmacodynamic biomarkers), pathological
processes (disease biomarkers) or drug-induced
side effects (safety biomarkers). This is
particularly helpful in early clinical development
as a tool to obtain an early indication of drug
effectiveness and safety. Biomarkers are typically
recorded by clinical chemistry measurements
or physiological responses in animal models
and patients. Boehringer Ingelheim is increasingly
exploring cutting-edge technologies
for biomarker assessment, including imaging,
expression profiling and proteomics in our
discovery and early development projects.
In pharmacogenetics the genetic variation
between patients is studied in order to explain
potential differences in the response to drugs.
This area is becoming increasingly important for
understanding efficacy and side effects for the
individual patient, with a particular focus on
polymorphisms (i. e. having multiple alleles of a
gene within a population) in the drug target itself,
as well as in drug metabolising enzymes and
drug transporters. In 2006 Boehringer Ingelheim
started to put in place a strong infrastructure to
support our clinical development project teams
to efficiently use biomarkers and pharmacogenetics.
The newly built function includes
laboratories for clinical chemistry and pharmacogenetic
analyses, and will provide capacity for
fully automated long-term storage of several
million anonymised DNA samples obtained from
patients during clinical development. The new
function also includes a state-of-the-art sample
logistics infrastructure and data mining and
modelling capabilities.
New biological entities (NBE) / Biomarker and pharmacogenetics
our r & d drive

The development of
our businesses
We have committed ourselves to the goal
of serving mankind through research into
diseases and the development of new drugs
and therapies in the areas of human pharmaceuticals
and animal health. Our businesses
follow our patient-orientated approach. They
are divided into two main business areas:
Human Pharmaceuticals, that accounts for
96 % of our business, and Animal Health that
accounts for 4 % of our business.
Net sales (in EUR million) 00 2005 Growth in %
Human Pharmaceuticals 10, 00 9,1 1,0 11 %
Prescription Medicines
8,311 7,247 1,064 15 %
– Branded Prescription Medicines
7,654 6,712 942 14 %
– Generic Prescription Medicines
657 535 122 23 %
Consumer Health Care 1,064 1,052 12 1 %
Industrial Customer
— Pharma Chemicals
809 847 -38 -5 %
— and Pharmaceuticals Production
306 299 7 2 %
— Biopharmaceuticals
503 548 -45 -8 %
Others 16 28 -12 -43 %
Animal Health 1 1 %
Total 10, 9, 1,0 9 11 %
Boehringer Ingelheim A n n u A l R e p o R t 2 0 0 6

Serving patients

Rin Fujima, Kyoto, Japan, suffers from high blood pressure,
a serious risk for the brain, heart and kidneys.

“I wake up refreshed ...”
“When I woke up in the morning, I no longer felt refreshed from sleep. I went to my doctor Haruteru
Hasuo who found that my blood pressure was far too high. Fortunately, apart from high blood
pressure, my checkup revealed no other disorders, such as hyperlipidaemia or diabetes,” recalls
Rin Fujima, a 60-year-old housewife living near Kyoto. She was prescribed an angiotensin-II-receptorblocker
to control her blood pressure. “I now measure my blood pressure before taking my
medication every morning. I’ve seen great improvement.” After taking the medication things got
back to normal for her.
However, high blood pressure or hypertension is not only an unpleasant condition. It is possibly also
the first sign of a serious cardiovascular risk that can be the precursor to stroke and heart attack.
Uncontrolled, this 24-hour condition can cause damage to vital organs, such as the heart, kidneys or
brain, over the long term. Sharp rises in blood pressure occur in the early hours, coinciding with an
increase in life-threatening heart attacks and strokes.
“I can do so much by exercising and
having a healthy life style, but I also
need effective medicine to lower my
blood pressure,” Rin Fujima
“We know that more than half of the patients who appear to have well-controlled blood pressure
are not effectively protected when their blood pressure is measured over a 24-hour period,” notes
Professor Toshiro Fujita, chairman of the department of internal medicine at the graduate school
of medicine and faculty of medicine, University of Tokyo. “There is a need for patients to receive
powerful blood pressure lowering treatments that work over the full 24-hour period,” he urges.
“I can do so much by exercising and having a healthy life style,” says Rin, “but I also need effective
medicine to lower my blood pressure. I’m convinced that my new treatment and my new way of life
now complement each other. And I wake up refreshed like I used to.”
Cardiovascular disease remains the No. 1 cause of death globally and is responsible for every one in
three deaths worldwide – an estimated 17 million people a year. It is also a major cause of disability,
and contributes significantly to the escalating costs of healthcare.
Boehringer Ingelheim A n n u A l R e p o R t 2 0 0 6

Human Pharmaceuticals
Branded prescription
medicines
Boehringer Ingelheim is recognised as an innovative
company which discovers, develops and markets
new medications. We focus on the therapeutic
needs of our ultimate customer, the patient.
During 2006, we continued to build and
strengthen our clinical development programme
by including nearly 40,000 patients in (Good
Clinical Practice) clinical trials of phase I to IV.
With these new patients included the number of
patients actively engaged in clinical trials exceeded
50,000 patients on average every day throughout
the year.
Currently, our focus is on the following therapeutic
areas: respiratory diseases, central nervous
system (CNS) diseases, virology, cardiovascular
diseases, immunology/inflammation, oncology,
metabolic diseases and urology.
Top products
Branded prescription medicines
Net sales 2006 in millions of EUR change
spiriva® 1,381 +45.2 %
micardis® 967 +33.6 %
flomax® 922 +27.8 %
combivent® 671 +19.6 %
mobic® 579 -31.8 %
sifrol® 536 +23.4 %
viramune® 276 -4.1 %
atrovent® 263 +5.4 %
aggrenox® 225 +30.9 %
catapresan® 217 +23.7 %
Respiratory diseases
Respiratory diseases have long been a major focus
area for Boehringer Ingelheim and we dedicate
ample resources to research in this field. Our main
objective in pulmonary research is to further
improve treatment options for chronic obstructive
pulmonary disease (COPD) and asthma.
COPD and asthma
COPD is currently the fourth most common cause
of death, yet up to three-quarters of sufferers in
Europe and 45 % in the USA go undiagnosed. This
suggests a major unmet need for treatment for
this debilitating lung disease.
Americas
xxxx
The major cause of COPD is tobacco smoking. The
disease is progressive with an ongoing decline in
lung function, which results in increasing breathlessness,
reduction in the capacity to exercise, and
a subsequent diminishment of quality of life.
of which: USA
xxxx
Sales of branded prescription medicines
by therapeutic area
Central nervous system
9.8 %
Muscoloskeletal/
rheumatology
7.7 %
Gastrointestinal/
metabolic 3.0 %
Urology
12.6 %
HIV 4.4 %
Others 1.9 %
Cardiovascular
23.5 %
Respiratory
37.1 %
Prescription Medicines
serving patients
9

50
Boehringer Ingelheim’s respiratory portfolio con­
sists of major COPD and asthma products:
spiriva® (tiotropium bromide), combivent® (ipra­
tropium bromide / salbutamol) and atrovent®
(ipratropium bromide).
spiriva® is a once­daily inhaled medicine recom­
mended for first­line regular treatment of COPD.
It contains an anticholinergic agent which acts on
airway constriction, a dominant mechanism in
COPD. It opens the narrowed airways of COPD
patients for a full 24 hours to help patients to
breathe more easily, thereby positively impacting
the clinical course of COPD and helping to change
the way patients live with their disease. It is the
first inhaled treatment to provide significant and
sustained improvement in lung function with
once­daily dosing.
In 2005, spiriva® became Boehringer Ingelheim’s
first blockbuster medicine, that is one with annual
turnover exceeding USD 1,000 million. spiriva®
posted growth in net sales
to EUR 1,400 million, or
USD 1,700 million, in 2006.
spiriva® expanded its
position as a global medication
for COPD. With the
successful launch of the
product in France in 2006,
spiriva®, which is globally
co­promoted with Pfizer
Inc., is now available to
patients in most countries
of the world. About six
million patients affected
by COPD worldwide have
been treated with spiriva®
in 2006. This reflects
the benefits spiriva®
provides to COPD
patients.
Boehringer Ingelheim A n n u A l R e p o R t 2 0 0 6
spiriva® is a novel anticholinergic
medicine
recommended for first­line
regular treatment of COPD.
It is the first inhaled treatment
to provide significant and
sustained improvement in
lung function over 24 hours
with once­daily dosing.
Our clinical studies in respiratory diseases
The year 2006 was highlighted by several important
successes in the spiriva® clinical trial programme.
The importance of spiriva® for the
treatment of COPD was focused on by over 70
publications, including review articles and
abstracts. Several publications from primary and
secondary data analyses were issued, including
the publication of the one­year mistral® trial in
France in which spiriva® demonstrated significant
reductions in COPD exacerbations.
Important clinical trial data presented in 2006
also demonstrated significant improvements in
lung function in patients with milder disease
symptoms and those diagnosed with both COPD
and asthma. Both patient populations are considered
important patient groups who may be under
treated with required inhaled anticholinergics.
uplift®, the global 6,000­patient landmark study
with spiriva®, is investigating the drug’s potential
to impact the course of the
disease by slowing the
decline in pulmonary
function, which is one of
the devastating consequences
of COPD. All
parameters of good clinical
trial conduct indicate
that this study will successfully
enter its last full
year of follow­up in 2007
and be completed in
2008.
On the basis of excellent
clinical study results, the
European label for
spiriva® HandiHaler®
was extended to include
the improvement of physi

cal exercise capacity and the reduction of exacerbations
in COPD. spiriva® is now the first COPD
drug which incorporates information about exacerbations
and exercise in a broad population of
COPD patients on its label.
spiriva® is currently delivered to patients via our
HandiHaler® device. In future, patients will also
be able to benefit from spiriva® delivered via
Boehringer Ingelheim’s respimat® Soft Mist
Inhaler (SMI), a novel propellant-free, multi-dose,
inhaler that generates a slow-moving, long-lasting
cloud (the soft mist) with a high fine particle
fraction (less than 5.8 μm). As a result, deposition
“I feel now like another man”
“I have smoked for 30 years which has left me with chronic
obstructive pulmonary disease,” says seventy-year-old Frenchman
Jacques Luchier, a retired food industry bacteriologist. “The first
time I met my pulmonary specialist and he told me I had very
severe COPD, I was caught completely off guard. I was scared,
as you think about death and that you’ll end up in a hospital bed
with tubes everywhere to keep you alive.”
COPD causes significant deterioration of lung function resulting
in breathlessness, activity limitation and associated disability.
Some 600 million people currently live with COPD, and the
disease is projected to be the world’s third leading cause of death
by 2020.
serving patients
Jacques Luchier started treatment with a novel bronchodilator.
He also undertakes respiratory rehabilitation which consists of
regular supervised exercise, education on COPD and its treatment,
breathing techniques, as well as nutritional and psychological
support.
“The respiratory rehabilitation is very hard to cope with at the
start. You have to really make an effort,” Jacques says. “But you
get to improve your quality of life by inhaling the bronchodilator.
You feel relief, you breathe better, you feel more yourself, you
recover your spirits”. And he adds: “Now I feel like another man.
I feel distinctly better. I feel less handicapped.”
of the drug in the lungs is improved and less
deposition occurs in the mouth and throat compared
to pressurised metered dose inhalers. Attitudes
of patients show a high level of satisfaction
with this device.
After completion of the pivotal studies for spiriva®
in our propellant-free respimat® SMI we have
submitted a registration file in the EU under the
“decentralised procedure” and in addition in several
other countries around the world. The completion
of the US submission will be one of our
key activities for 2007.
Prescription Medicines
1

Our R & D for respiratory diseases
Our worldwide launch of spiriva® (tiotropium)
provided a medication to improve COPD therapy
and strengthened our leading position in this field.
We are striving for further innovations by devel-
oping bronchodilators with alternative mecha-
nisms. These new bronchodilators are being for-
mulated in innovative inhalation devices.
In addition, Boehringer Ingelheim in 2006 entered
into a worldwide collaboration, development and
licence agreement with the British company
Vectura. The aim of the collaboration is to develop
a multi-dose dry powder inhaler as a Boehringer
Ingelheim branded device, to deliver a range of
proprietary Boehringer Ingelheim respiratory
products, mainly for the treatment of COPD and
asthma. We currently have numerous bronchodilator
programmes in development, six of them
in clinical studies.
Extending our product portfolio to drugs that
target treatment of the underlying inflammation
and the tissue remodelling process are further key
goals in our COPD research. Inflammation in
COPD patients is provoked by an infiltration of
the lungs by macrophages and neutrophils.
This is only poorly controlled by current, widelyused
anti-inflammatory drugs, such as corticosteroids.
We are therefore working on alternative
anti-inflammatory mechanisms, specifically targeting
macrophage and neutrophil-driven inflammation.
In addition, we aim at preventing or delaying tissue
remodelling that is induced by chronic inflammation
by targeting lung growth factors. Two
first-in-class mechanisms targeting mucous
hyperplasia and fibrosis are being tested clinically.
Beyond COPD, such new mechanisms have a
therapeutic potential in idiopathic pulmonary
fibrosis (IPF), a life-threatening disease, and in
Boehringer Ingelheim A n n u A l R e p o R t 2 0 0 6
severe asthma, where mucous plugging is considered
the main cause of death.
Our research in asthma is aimed at new mechanisms
and immunological paradigms that would
allow us to replace or reduce the doses of inhaled
steroids by providing anti-inflammatory therapy
better tolerated by patients. Another goal is to
provide a new treatment for specific syndromes
with high, unmet medical need, such as severe,
steroid-resistant asthma.
Diseases of the
central nervous system
According to World Health Organization (WHO)
predictions, diseases of the central nervous system
will constitute an increasing medical need in this
century, attributable to an exponential increase of
these diseases in patients beyond 65 years of age,
combined with an aging population. To date,
available therapeutic treatments are still unsatisfactory
for the majority of CNS diseases.

“Like a great round of golf“
“When in 2003 I faced my diagnosis of Parkinson’s disease, I tried to deal with it with the spirit of a true competitor,”
says Cherie Zaun, a professional golfer from Glendale, California, USA. “Despite at first feeling helpless, I read up on
everything about how to live with the disease and set out to battle it. I was still only in my early 50s.”
“Today, I’m able to teach and play golf again. Living with Parkinson’s is not all that different from doing a great
round of golf – it takes practice and determination,” Cherie explains. She is mother of three and former winner of
the Virginia State Amateur Championship, former member of the Duramed Future Tour and one-time head coach
for the University of Southern California Women’s Golf Team. She is still playing in some West Coast tournaments
and qualifiers. For three years she has been taken a dopamine agonist for the treatment of Parkinson’s disease.
“I’m exercising, too, finding yoga and golf especially helpful. But I do not want to just focus on my own health,”
Cherie comments. “I’ve decided to take an active role in patient education. Together with Boehringer Ingelheim
I’ve developed patient materials specifically for people who have been recently diagnosed with Parkinson’s.
And I act as spokeswoman for ‘Planning Your Course’, a patient education programme supported by Boehringer
Ingelheim and the US National Parkinson’s Foundation (NPF).”
Diseases of the central nervous system (CNS) are
one of the most important therapeutic areas for
Boehringer Ingelheim. Our product portfolio con-
sists of drugs for the treatment of Parkinson’s
disease and restless legs syndrome (RLS), as well
as for treatment of major depressive disorder
(MDD) and diabetic peripheral neuropathic pain
(DPNP).
Parkinson’s disease and restless legs syndrome
sifrol® / mirapexin® / mirapex® (pramipexole),
a product from Boehringer Ingelheim research, is
a dopamine agonist that was first approved in
1997 for the treatment of the signs and symptoms
of idiopathic Parkinson’s disease (PD), as monotherapy
or in combination with levodopa.
After a decade of treatment for Parkinson’s
patients, a new key milestone was achieved with
the approval of sifrol® / mirapexin® / mirapex®
for the symptomatic treatment of moderate to
severe idiopathic restless legs syndrome (RLS) in
2006, both in the European Union and the USA.
serving patients
Pramipexole has significant efficacy on the key
symptoms of restless legs syndrome (RLS) and
beneficial effects on the symptoms frequently
affecting RLS patients, such as daytime sleepiness,
mood disturbance, and overall reduced quality of
life. Patients often have difficulties in describing
their symptoms, with sleep disturbance often
being the most frequent reason why people with
RLS seek medical advice. We expect that the
impressive efficacy of RLS as shown in our clinical
trial programme will favourably impact and
strengthen the market position of sifrol®.
sifrol® / mirapexin® / mirapex® continued to
show strong growth in 2006 in the Parkinson’s
disease indication, too. At the end of October
2006, the brand ranked No. 6 among Boehringer
Ingelheim’s best-selling products, with total net
sales of EUR 536 million, up 23 % against the
same period in 2005. It is the world’s best-selling
dopamine agonist, with a market share of more
than 22 %. The estimated cumulative worldwide
exposure since 1997 is 2.2 million patient years.
Prescription Medicines

Our clinical studies in Parkinson’s disease
and RLS
The continued research interest in sifrol®/
mirapexin® / mirapex® is reflected in a comprehensive
phase IV clinical trials programme that is
underway in both indications, PD and RLS, comprising
more than 2,800 patients. It will investigate
additional aspects of these diseases in an
effort to provide data on the effects of sifrol® /
mirapexin® / mirapex® in improving the quality
of life in patients with these conditions. A study
recently reported (Barone P. et al., J Neurol 253,
601–607 [2006]) highlights the positive effects of
sifrol® on depressive symptoms in patients with
PD which we plan to confirm in further studies.
Boehringer Ingelheim A n n u A l R e p o R t 2 0 0 6
Depression and diabetic peripheral
neuropathic pain
Major depressive disorder (MDD), a common disorder
of complex, often recurring symptoms
affecting the mind and body, can be life-threatening
and certainly disabling, according to WHO
research. The neuropathology of depression is not
fully understood, but the two neurotransmitters,
serotonin and noradrenalin, seem to play a major
role in the development and course of the disease.
cymbalta®/xeristar® (duloxetine hydrochloride)
is a potent and balanced dual reuptake inhibitor
of both serotonin and noradrenalin that provides
rapid, sustained relief of the emotional and
painful physical symptoms of depression and
Boehringer Ingelheim is directing
major efforts into its research
and development of drugs for the
treatment of diseases of the central
nervous system. The most recent
indication for which we gained
market approval for our medication
mirapex®/sifrol® was RLS.
Characterised by a distressing urge
to move the legs, RLS is usually
associated with uncomfortable or
sometimes painful sensations in
the legs, with symptoms being
worse at night and while at rest.

gives patients a better chance of getting well and
staying well. A recently completed placebo-
controlled study with duloxetine showed clear
therapeutic effects of the drug on painful body
symptoms in patients suffering from depression.
This favourable profile of duloxetine can help to
address an important aspect of the clinical
symptoms of depression.
Serotonin and noradrenalin also play a major role
in the neuronal modulation of pain signals, sug-
gesting a role for duloxetine. Through its exten-
sive clinical programme, duloxetine has also been
successfully developed for the treatment of
diabetic peripheral neuropathic pain (DPNP), and
in 2006 was launched in Germany, Mexico and
Brazil in the DPNP indication.
In November 2002, Eli Lilly and Company and
Boehringer Ingelheim signed a long-term agree-
ment to jointly develop and commercialise
duloxetine. At year-end 2005, cymbalta® had
been successfully launched in more than 20 co-
promotion countries worldwide. In Germany,
cymbalta® has been the most successful anti-
depressant launch in the country to date. During
2006, cymbalta® was launched in 11 additional
countries in Europe, Latin America and Asia. Key
2006 milestones include Boehringer Ingelheim’s
successful launch of xeristar® in the co-market-
ing countries of Italy, Spain and Greece.
To support continued medical education concern-
ing these important and potentially debilitating
diseases, Boehringer Ingelheim and Lilly hosted a
series of educational events to raise awareness
and understanding of depression and pain man-
agement in Europe, Latin America and Asia.
cymbalta® and xeristar® generated combined
revenues of EUR 53 million, more than 100 %
growth over 2005.
Depression is one of the most
frequent psychiatric disorders,
but is often undiagnosed or is
under-treated. This may be
because up to about 70 % of
patients later diagnosed with
depression cite physical symptoms
as the reason they initially
visited their primary care
physican. New data shows that
cymbalta® (duloxetine hydrochloride)
significantly reduced
both painful and emotional
symptoms of depression,
resulting in an increased likelihood
for patients to reach
remission.
Female hypoactive sexual desire
disorder (FHSDD)
Hypoactive sexual desire disorder (HSDD), a con-
dition in which patients suffer from their decreased
serving patients
sexual desire, is the most common form of female
sexual dysfunction. It is an important and defined
medical condition that can be identified and diagnosed.
Epidemiological studies indicate that up to
one in five women suffer from decreased sexual
desire.
Over 60 % of the patients are moderately to
extremely distressed because of their low desire.
Flibanserin, a centrally active compound with a
unique mechanism of action, is a novel approach
for the treatment of decreased sexual desire in premenopausal
women. The medical definition for
the condition is hypoactive sexual desire disorder
(HSDD) with marked distress and or interpersonal
difficulties. Thus focusing on this condition, four
phase III studies have been initiated. One of them
has already fully recruited more than 1,000
Prescription Medicines

patients. High interest to participate in these
studies supports our understanding that there is
substantial medical need and patient demand. We
expect the phase III programme to run until 2008
and provide us with pivotal results for registra-
tion.
Our R & D in CNS
Our research in CNS diseases focuses on novel
treatment concepts for the major neurodegenera-
tive disorders, Alzheimer’s and Parkinson’s
disease, both being prominent consequences of
the ageing population. Our research efforts to
interfere with disease progression in Alzheimer’s
and Parkinson’s disease focus on targets estab-
lished by pathohistology and genetics.
Moreover, we are investigating approaches for
reducing treatment-induced motor complications
(dyskinaesias), a major medical problem for patients
with late stage Parkinson’s disease. Our activities
in Alzheimer’s disease are, for example, aimed at
reducing amounts of the amyloid-beta peptide,
the major mediator of this fatal disorder, and
additionally searching for pro-cognitive therapies
beyond acetylcholine restoration in this disease.
In order to expand these approaches, we have
entered into an exclusive worldwide collaboration
and license agreement with the Belgian company
Ablynx to discover and develop new therapies for
Alzheimer’s disease, using Nanobodies®, a novel
class of therapeutic proteins.
An additional focus lies on chronic pain, a condition
for which medical attention is sought most
frequently, yet satisfactory treatment options are
still limited. New molecular targets, such as ion
channels and G-protein coupled receptors
Boehringer Ingelheim A n n u A l R e p o R t 2 0 0 6
(GPCRs), which are involved in pain transduction
pathways and have been validated in neuropathic
and inflammatory pain models, form the basis for
our drug discovery efforts in the chronic pain
indication. Our drug discovery activities in the
indication migraine address a new mechanism of
action to interfere with cerebral vasodilatation for
which we were the first research group to obtain
clinical proof of concept.
Virology
Antiviral therapies for many serious, life-threatening
chronic and acute viral diseases are lacking
or are unsatisfactory. New antiviral therapeutics
for the treatment of the human immunodeficiency
virus type 1 (HIV-1) and the hepatitis C virus
(HCV) are therefore in the focus. These two pathogens
have each emerged epidemically in recent
decades, infecting millions of people globally.
HIV/AIDS
In 2006, the AIDS pandemic continued to grow.
Now about 40 million people are infected with
HIV. Boehringer Ingelheim aims at improving
HIV/AIDS therapy by providing physicians and
patients with innovative antiretroviral (ARV)
drugs.
aptivus® (tipranavir), a non-peptidic protease
inhibitor, blocks the viral protease, an enzyme
needed to complete HIV replication. In co-administration
with low dose ritonavir, aptivus® is
indicated for combined antiretroviral treatment of
HIV infection in highly treatment-experienced
(HTE) patients with resistance to multiple protease
inhibitors (PI).

aptivus® was launched in the USA in July 2005
and in the EU in November 2005, reaching net
sales of EUR 53 million in 2006.
viramune® (nevirapine), which posted net sales
of EUR 276 million in 2006, was the first com-
pound of the class of non-nucleoside reverse
transcriptase inhibitors (NNRTI) to be launched
in 1996 as a powerful component of combination
therapy of HIV-1 with a favourable long-term
tolerability. This product is now available in some
100 countries, making it one of the most widely
used compounds in chronic HIV-1 therapy worldwide.
viramune® has also been demonstrated to be
beneficial alone as a single oral dose in preventing
transmission of HIV-1 from the infected mother
to the newborn. A single dose administered to the
mother during labour and a single dose to the
infant after birth has shown to significantly reduce
Since the introduction of HAART (highly active
antiretroviral retroviral therapy) in the late 1990s, mortality
due to AIDS has been dramatically reduced in
the western world. In these countries HAART –
normally a combination therapy consisting of
three antiretroviral drugs – has transformed formed the
life-threatening disease into a chronic illness.
Thus the goal of the therapy can be now
defined as: prolonging the the patient’s life, while
maintaining taining the best possible quality quality of health health
and life. However, up to now it has not been
possible to eradicate the virus from the body.
The patient therefore therefore has to undergo a lifelong
treatment.
the HIV transmission rate. This simple and effective
treatment, also tested successfully in combination
with zidovudine/lamivudine, has particular
value in the healthcare setting of developing
countries, and as such is recommended by the
WHO (see also page 10).
For more information, please visit the website
www.pmtctdonations.org
serving patients
Our clinical studies and R & D in virology
After the worldwide introduction of aptivus®,
physicians had a powerful therapeutic to treat
HIV patients with highly resistant virus. The superiority
of aptivus® over a group of comparator PI’s
in our resist trials was the basis for accel-
erated, conditional approval in the
USA and the EU in 2005. In
the meantime, long-term
Prescription Medicines

maintenance data with controlled observation of
up to 96 weeks have become available. The supe-
rior efficacy over the ongoing comparator treat-
ment is fully maintained both for aptivus® with
two other active antiretroviral drugs and aptivus®
in combination with new drugs as for example
the injectable enfurvitide. Both in the USA and in
Europe we have submitted long-term follow-up
data together with additional phase IV study
results and expect traditional approval in the USA
in 2007.
“I just cannot believe it ...
... I didn’t think I would survive the year,” says Meike Nörder
(right), a 41-year-old former cook from the north German
town of Oldenburg.
“I’ve been HIV-positive for 16 years. The debilitating effects
of the infection, and long-term multiple resistance to drug
treatments, have made normal life impossible for me, but
I still keep home for my partner and our teenage son,” says
Meike about her situation. “Over the years, I’ve taken a
number of different treatment regimens which did not
sufficiently control my viral load to an undetectable level
and have rendered the virus resistant to many anti-HIV
medications.”
In 2006, she began to take a novel protease inhibitor. Her
new HIV treatment – in conjunction with other anti-AIDS
drugs – brought significant improvement in key virus
counts. “Within a month, my viral load dropped below
the measurable limit for the first time. When I heard this
news I was speechless.”
Boehringer Ingelheim A n n u A l R e p o R t 2 0 0 6
Our R&D activities in HIV aim at developing new
treatment options for all HIV patients, but espe-
cially those who have failed prior therapy due to
the development of drug resistance. Our research
in this area has identified a new NNRTI as a fol-
low-up to our existing HIV treatment viramune®.
Moreover, our discovery efforts are addressing
several novel targets for future HIV therapy.
Our hepatitis C virus research is directed toward
identifying inhibitors targeting essential viral
“Naturally, I do experience side effects, including tiredness.
But the side effects are all tolerable and bearable,”
she notes. “The rapid recovery of my immune system was
a real surprise for me and brought to halt an HIV-specific
encephalopathy, unlike in the previous two winters when
my immune cell levels were low and made me susceptible
to infections. My CD4 T-lymphocyte cell count went from
13 % in February 2006 immediately before the new treatment
began to 18 % in May. By September it was up to
24 %. Over the same period my viral load dropped from
32,600 to below 47.”
Meike says: “I’ve not only found renewed hope concerning
my own health. I’m also actively promoting AIDS awareness,
visiting schools and other institutions in my region
to tell of my own experiences of living with HIV and drug
resistance.”

enzymes, such as the HCV serine protease and
RNA polymerase. Such new mechanisms offer the
potential for new therapies with improved safety
and efficacy compared to current treatments of
chronic hepatitis C.
Our virology drug discovery group in Laval has
developed compounds with an alternative mode
of action for the treatment of HCV infection. In
clinical trials in infected patient volunteers, we
established the short-term-efficacy for a new anti-
viral principle and have one other compound in
clinical phase I.
Our ongoing activities in HCV continue to exploit
these antiviral targets together with other novel
approaches and are complemented by partnering
efforts. In 2006, we initiated a collaboration with
the Australian company Biota to jointly discover
and develop Biota’s novel nucleoside analogues
designed to treat HCV infections and other
diseases.
serving patients
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9

Top Story: Actilyse

Børge Madsen, Copenhagen, Denmark.
Thanks to rapid treatment he fully recovered from a stroke.

“I was fortunate to get the right treatment
promptly and efficiently at the local hospital.
My recovery came fast. Only three days after
being admitted, I was able to leave hospital.”
Børge Madsen
“My recovery came fast”
“I was making a cup of coffee in my kitchen on 1 May 2006 when I had a stroke. Luckily,
my wife Lis came home a little later with the grandchildren. She found me paralysed and
unable to speak. Straight away she called the emergency services and an ambulance
quickly transferred me to the local hospital,” says Børge Madsen, a 64-year-old retired
schoolteacher from Copenhagen. After a neurological examination and an immediate brain
scan, he was given a thrombolytic therapy to treat the stroke.
An ischaemic stroke occurs when a blood clot blocks a blood vessel in the brain, interrupting
blood flow to an area of the brain, killing cells in the immediate vicinity from within minutes
to a few hours after the stroke. The time it takes to transport stroke patients to hospital
is decisive to their recovery, or even their survival. But the administration of a thrombolytic
agent is only the first step. Careful further treatment and therapy in a hospital also has a
crucial impact on the health and recovery of the patient.
“I was fortunate to get the right treatment promptly and efficiently at the local hospital,”
Børge says. “My recovery came fast. By around noon, I felt I was regaining the ability
to move my fingers. Later that day, I was able to write. It was fantastic. Only three days
after being admitted, I was able to leave hospital.”
“My relatively good health played a significant role,” Børge says. “I’ve been physically active
all my life and always played football, most recently with the old boys. And I used to work
as a voluntary sports journalist for the local newspaper. Okay, I was a bit overweight and my
blood pressure was a little too high. But otherwise I was fit. And I always have been. The
doctors also tell me that this has helped me.”
Boehringer Ingelheim A n n u A l R e p o R t 2 0 0 6

Cardiovascular diseases
Despite significant advances in the understanding
and treatment of cardiovascular disease, it remains
the leading cause of premature death in western
societies and is predicted to become the most
common cause of premature death worldwide
within the next decade.
Our product portfolio consists of drugs for the
treatment of hypertension, acute myocardial
infarction and treatment of acute massive pulmonary
embolism, as well as stroke treatment and
prevention.
Hypertension and cardiovascular protection
Hypertension is a major risk factor for cardiovascular
morbidity and mortality. The organs at risk
are primarily the heart, the main blood vessels,
the brain and the kidneys. Furthermore, it is
strongly linked to stroke and heart attack as well
as other associated clinical conditions.
Approximately 1 billion people are affected by
hypertension worldwide. The prevalence of essential
hypertension increases steadily with age. As
the population as a whole ages, the prevalence of
hypertension will increase even further.
The primary goal of antihypertensive treatment is
to reduce the long-term total risk for cardiovascular
morbidity and mortality. To achieve this,
current evidence suggests that blood pressure
values should be targeted as low as possible.
micardis® offers powerful 24-hour
blood pressure control. Despite
treatment options, some 80 % of
hypertensive patients in the USA and
Western Europe remain untreated.
Beyond antihypertensive treatment, the aim of
additional cardiovascular protection requires
serving patients
treatment of all identified risk factors and associ-
ated clinical conditions accessible by therapeutic
approaches and/or changes in lifestyle.
With micardis® (telmisartan), our angiotensin II
receptor blocker (ARB), and micardisplus®/
micardis® hct (telmisartan in a fixed dose combination
with the diuretic hydrochlorothiazide),
Boehringer Ingelheim offers two innovative
options and flexibility for the treatment of essential
hypertension. micardis® has the longest halflife
in the ARB class and a high affinity for the
angiotensin-I receptor, providing powerful blood
pressure control over 24 hours with a once-daily
dosage, including the early morning hours when
blood pressure surges.
micardis® / micardisplus® / micardis® hct
generated net sales of EUR 967 million in 2006,
representing growth of 34 %. This made it our
second biggest prescription medicine and secured
it blockbuster status.
Our clinical studies in hypertension
and cardiovascular protection
The micardis® landmark trials in cardiovascular
protection, ontarget and transcend®,
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continued to perform according to our best expec-
tations with excellent patient retention and no
concern from safety review board assessments.
For both trials we are setting up all necessary
logistics to recruit more than 30,000 cardiovascu-
lar high-risk patients within a short time period at
the end of 2007 and in early 2008.
In parallel to the ongoing ontarget and
transcend® studies, the protection® programme
was concluded in hypertension. amadeo was
the last in a series of studies involving 6,500
patients in 32 countries. All studies were positive
and the protection® programme showed a bene-
ficial effect of micardis® and micardisplus®/
micardis® hct on renal organ protection in
hypertensive patients, also when compared to
other established therapies.
Acute myocardial infarction
Every year, approximately three million people
worldwide suffer from acute myocardial infarc-
tion (AMI), or heart attack. However, only about
47 % are diagnosed and treated. The most impor-
tant factor for a successful treatment of AMI is
time to treatment. Thrombolytic therapy is established
as one of the most successful modern
AMI treatment options, in particular in patients
in whom percutaneous transluminal coronary
angiography (PTCA) cannot be performed within
90 minutes after first medical contact.
metalyse® (tenecteplase) is the only thrombolytic
to be administered as a single bolus for the thrombolytic
treatment in AMI for patients, in whom a
coronary intervention cannot be performed. With
its ease of administration, thrombolysis with
metalyse® is very well suited for pre-hospital and
in-hospital thrombolysis to keep the time from
the onset of symptoms to effective treatment as
short as possible.
Boehringer Ingelheim AnnuA l RepoR t 2006
actilyse® (alteplase) is also indicated for the
thrombolytic treatment in AMI as well as in
thrombolytic treatment in acute massive
pulmonary embolism with haemodynamic
instability. actilyse® is also approved for the
treatment of acute ischaemic stroke.
In 2006, both products continued to be leaders
in their class and posted combined net sales of
EUR 159 million.
Stroke treatment and prevention
Stroke is one of the leading causes of death
and disability in the developed world. The
WHO estimates that 5.1 million people die
from stroke each year.
Almost one in four men and one in five women
aged 45 can expect to have a stroke, if they live
to their 85th year. A stroke occurs when a
blood clot blocks an artery in the brain (ischaemic
stroke), or when a blood vessel ruptures
(haemorrhagic stroke), interrupting blood flow
to an area of the brain. A stroke kills brain
cells in the immediate area beginning a few
minutes after onset.
metalyse® is indicated for the
treatment of acute mycardial
infarction. It is in particular
suitable for patients in whom
a coronary intervention can
not be performed. It can also
be administered as a prehospital
lysis in the ambulance.

actilyse® is the first and only thrombolytic indi-
cated for treatment of acute ischaemic stroke
within three hours after symptom onset. Addi-
tionally, the company is currently investigating
the efficacy of actilyse® within the 3 –4.5 hour
time window through the ecass 3 trial which, if
positive, will allow a larger proportion of patients
to benefit from treatment.
Boehringer Ingelheim is also the sole sponsor of
sits-most. This is the largest international stroke
registry with the objective of optimising the
thrombolytic treatment of acute stroke and providing
a benchmarking tool for best practice for
treating stroke patients worldwide. The laudable
results of the sits-most study, which enrolled
6,483 patients from 285 European centres, have
confirmed the safety and efficacy of actilyse® for
“I didn’t let a stroke stop me”
“I suffered the first stroke in 2003 at a training camp in Tashkent,
Uzbekistan. Two more followed in Germany. I was paralysed on one
side and I couldn’t speak,” recounts German national wrestling team
trainer Alexander Leipold. The former national, European and world
title-holder says with good humour: “When fate strikes, it often picks
me out. But I wasn’t going to let a stroke stop me from leading an
active life.”
serving patients
After rehab at the Medical Park Bad Rodach and treatment with a
medication for reducing the risk of further strokes, Alexander, at 35,
resumed his wrestling career in 2003, winning acclaim from leading
German sportsmen. In 2005, he won the world masters title for
wrestlers over 35 years of age in Teheran, Iran. The same year, he also
switched to his current role as trainer.
Alexander lives with his wife and two children in the German state of
Bavaria. “But apart from my sport, I’m also keen to help others fight
strokes, too”, he says. “This is the reason why I work as an ambassador
for German Stroke Aid.”
acute stroke treatment as demonstrated in the
previous pooled randomised trials. This was published
in the Lancet at the beginning of 2007.
aggrenox®/asasantin® retard/(extended
released dipyridamole + acetyl salicylic acid (ASA))
is indicated to reduce the risk of secondary stroke
in patients who have had a transient ischaemicattack
(TIA) or completed ischaemic stroke due to
thrombosis. It generated net sales of EUR 225 million
in 2006 with a growth of 31 %.
The use of aggrenox®/asasantin® retard as a
first-line treatment for secondary stroke prevention
is recommended in many international
guidelines, such as those issued by the European
Stroke Initiative (EUSI), the UK’s National
Institute of Health and Clinical Excellence (NICE),
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the American College of Chest Physicians (ACCP),
as well as the recently issued joint guidelines of
the American Heart and Stroke Association (AHA/
ASA).
For more information please visit the website:
www.stroke-forum.com
Our clinical studies in stroke prevention
profess®, one of Boehringer Ingelheim’s landmark
studies, has concluded recruitment with
20,300 patients enrolled. It had been designed to
confirm the efficacy, and potentially demonstrate
the superiority, of aggrenox® over clopidogrel
prove as well as to the additional protective benefits
of our ARB micardis® in the prevention of
secondary stroke. As profess® is proceeding to
plan, we foresee final recruitment of patients and
availability of results in 2008.
The independent esprit study (European/
Australasian Stroke Prevention in Reversible
Ischaemia Trial) on prevention of secondary
stroke was published in Lancet, 2006; 367: 1665–
1673. It found superior efficacy of dipyridamole
extended release in combination with ASA versus
ASA alone. These results with a 20 % risk reduction
for stroke over ASA alone in the ESPRIT
study are in line with our own ESPS 2 results and
support our expectation in favour of a positive
outcome of profess®.
Treatment and prevention of thrombo-embolic
diseases
Our presently largest phase III programme is for
dabigatran etexilate, an oral direct thrombin
inhibitor that we are developing for the prevention
and treatment of thrombo-embolic disease.
Dabigatran is the frontrunner of all new oral anticoagulants
currently being developed, and is
being investigated in the primary prevention of
Boehringer Ingelheim A n n u A l R e p o R t 2 0 0 6
Promising new drug
for blood clot prevention
Therapeutic options for preventing thrombo-embolic diseases
remain limited, despite their being among the most common
causes of death in the aging societies of the industrialised
world.
The anticoagulant dabigatran etexilate, a new direct thrombin
inhibitor discovered and developed by Boehringer Ingelheim,
holds out the promise of a new drug to fulfil the unmet
therapeutic need.
The most commonly used oral anticoagulant has been
warfarin. Dabigatran etexilate specifically and reversibly
inhibits thrombin, one of the key enzymes for blood clot
formation. It is administered in a fixed dose and has a rapid
onset of action, providing a consistent anticoagulation
effect without the need for time-consuming coagulation
monitoring and dose adjustment.
Major indication areas will be stroke prevention in atrial
fibrillation, the most common form of cardiac arrhythmia,
prevention of deep vein thrombosis (DVT) after hip or knee
replacement surgery, acute DVT treatment and secondary
prevention of DVT.
deep vein thrombosis (DVT) after hip or total knee
replacement, the treatment of acute DVT, the
secondary prevention of DVT and the long-term
prevention of thrombo-embolic events (stroke) in
patients with atrial fibrillation. The phase III trial
programme has been initiated with a group of
studies combined under the umbrella of the
re-volution® programme. With more than
27,000 patients re-volution® is the largest
clinical trial programme in thrombo-embolic
disease.
With studies in all indications successfully imple-
mented, the two indications we advanced most
were the post-surgery prevention of DVT and
stroke prevention in atrial fibrillation. We have
launched a 15,000-patient study (rely) in atrial

fibrillation in some 40 countries involving almost
1,000 study centres. By the end of 2006, more
than 8,000 patients have been recruited, exceed-
ing our plan by far.
For the prevention of DVT post-orthopaedic sur-
gery pivotal studies have been completed and the
first submission for Europe has been completed.
Additional study results will become available
during 2007 to complement the dataset for a later
US submission file.
Our R & D in cardiovascular diseases
Continuing research efforts in the thrombo-
embolic area resulted in compounds with alterna-
tive anti-thrombotic mechanisms, which also
recently entered clinical development where their
efficacy-safety profile is being compared to that of
direct thrombin inhibitors. We will continue to
develop our cardiovascular research platform in
the area of atherothrombosis and widen our
research to include heart failure.
These research programmes are facilitated by the
use of in vivo imaging studies and enhanced by
external collaborations with academic and bio-
technology industry partners.
Our cardiovascular research programmes also
benefit from close collaboration with scientists
working in related therapeutic areas, such as
metabolic diseases and immunology and inflam-
mation, in order to increase the opportunities for
developing novel therapeutic agents for the fight
against cardiovascular disease.
Immunologic /
inflammatory diseases
Despite advances in treatment, there remains a
large unmet medical need for safe and efficacious
treatments for autoimmune diseases. Our drug
discovery in these therapeutic areas places an
emphasis on gaining a mechanistic understanding
of rheumatoid arthritis, multiple sclerosis and
psoriasis disease processes.
Rheumatic arthritis / osteoarthritis
Rheumatoid arthritis is an autoimmune disease
that affects the body as a whole and may lead to
joint destruction. Osteoarthritis is the most
commonly diagnosed degenerative disease affect-
ing the joints, especially in elderly people. Signs
and symptoms of osteoarthritis can include joint
stiffness, often with a sensation of grinding in the
affected joint.
mobic®/mobec® (meloxicam) is indicated for the
symptomatic treatment of osteoarthritis and
rheumatoid arthritis as well as ankylosing spon-
dylitis (Morbus Bechterew).
The patent exclusivity period in the USA for the
drug ended in July 2006, and the market entry of
generics resulted in major sales losses for this
product. mobic®/mobec® generated net sales of
EUR 577 million in 2006.
Our R & D in immunologic
and inflammatory diseases
Together with experts in the field, we are gaining
greater insights into the biology of autoimmune
diseases with a view to identifying novel drug
targets. For example, certain cells play a key role
in perpetuating the inflammation and resulting
tissue destruction observed in the joints of
rheumatoid arthritis patients by secreting
cytokines and other inflammatory mediators.
As a means to identify key pathways operating in
these cells, we have established collaborations to
screen for modulators which may be drug targets
that could form the basis of novel therapies.
Current approaches targeting autoimmune disease
serving patients
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include diverse mechanisms that are being
addressed with both small molecules as well as
protein-based therapeutics.
Our activities in the area of new biological entities
(NBEs) have been further strengthened by enter-
ing into a collaborative research and licence
agreement with the US-based biotech company
FivePrime Therapeutics with the goal of discover-
ing novel therapeutic protein products to treat
rheumatoid arthritis and other inflammatory
diseases. Promising new small molecule therapies
are currently being tested in clinical trials to
establish their effectiveness for psoriasis and multiple
sclerosis. By gaining a mechanistic understanding
of immune disease, we can identify those
mechanisms that are also relevant for the pathology
of other diseases and thus expand the
promise of new immunological therapies to additional
medical conditions.
The combination of our current focus on disease
mechanisms, our efforts directed to the identification
of novel drug targets and our expansion into
protein-based therapeutics is maximising our
ability to deliver promising new therapeutic
options for patients suffering from autoimmune
diseases.
Urology
In 2006, Boehringer Ingelheim’s product port-
folio in urologic diseases consisted of drugs to
treat benign prostate hyperplasia (BPH) and stress
urinary incontinence.
Benign prostate hyperplasia
The incidence of benign prostate hyperplasia (BPH)
increases with age. Symptomatic BPH in general occurs
in approximately 25 % of men over 40 and in one of
every three men over 65. flomax®/alna® (tamsulosin),
an alpha receptor blocker that has been established
as a standard first-line treatment of BPH symptoms,
is the most widely prescribed medication for them.
Boehringer Ingelheim AnnuA l RepoR t 2006
Lower urinary tract symptoms (LUTS) suggestive
of BPH are the most common urological condi-
tion in older men. BPH is characterised by the
presence of several urinary symptoms that can be
related to bladder emptying (voiding or obstructive
symptoms) or filling (storage or irritative
symptoms).
Typical voiding symptoms are hesitancy, weak
stream and intermittency. Typical storage symptoms
are increased daytime frequency, nocturia
and urgency. Nocturia, i.e. awakening one or more
times at night for voiding, reduces the quality of
sleep of the patient and has a significant negative
impact on how the patient feels the next day in
terms of energy level/fatigue, concentration and
mood (sometimes the patient may even get
depressed) and ultimately his overall well-being
and quality of life.

Treatment modalities used to relieve bothersome
LUTS/BPH are designed to reduce the static and/
or dynamic component of obstruction and to
improve the quality of life.
Pharmacological therapy with flomax®/alna®
(tamsulosin), an α1-receptor antagonist, is
indicated for the treatment of this condition and
provides effective and well-tolerated improve-
ment of the symptoms. It relieves obstruction by
relaxing smooth muscles in the prostate and
urethra improving voiding symptoms. It also
improves storage symptoms in which bladder
instability plays an important role.
After the launch of the 0.4 mg capsule in 1996,
Boehringer Ingelheim and its partner Astellas
developed a new tablet formulation using the
technology ocas® (Oral Controlled Absorption
System) to further optimise pharmacological
therapy for LUTS/BPH.
This system provides effective symptom control
during daytime and nighttime, a very good tolerability
and excellent convenience for the patient
(e.g. once-daily dosing without the need of dose
adjustment, medication intake independent of
meals).
flomax®/alna®, using the ocas® technology, has
been available since 2005 in Germany, Spain and
Switzerland. In 2006, it was launched in Portugal,
France, Canada and Greece.
The capsule formulation started to lose patent
protection in several countries in March 2006. In
the USA, patent protection will continue until
October 2009. flomax®/alna® capsules and
ocas® tablets generated net sales of EUR 922
million, an increase of 28 % over 2005, placing the
medication third in Boehringer Ingelheim’s
Human Pharmaceuticals sales ranking.
Stress urinary incontinence
Stress urinary incontinence (SUI) is the involun-
tary loss of urine on effort or exertion, or on
sneezing or coughing. Around 97 % of SUI patients
are female, but less than half of the women suf-
fering from this condition seek treatment.
yentreve®/ariclaim®, with the active ingredient
of duloxetine, is approved in the EU for the treat-
ment of women with moderate to severe SUI. In
2006, it was jointly commercialised in several
European countries and Mexico by Eli Lilly and
Company and Boehringer Ingelheim. yentreve®/
ariclaim® generated revenues of EUR 4 million
in 2006.
Boehringer Ingelheim and Eli Lilly and Company
(USA) jointly decided in February 2006 to change
the contractual agreements for yentreve®/
ariclaim®. Eli Lilly and Company took over sole
worldwide commercialisation rights for the medi-
cation for SUI and potential future, related urinary
incontinence indications, effective as of 15 Janu-
ary 2007.
Oncology
Every year, more than ten million people find
themselves grappling with the medical uncertainties
and emotional upheaval of a newly diagnosed
cancer. Fortunately, an increasing number of
patients benefit from surgery, radiation and
pharmacological medicines, with a complete cure
possible in about 60 % of cases. If the cancer has
spread throughout the body, the hurdles for
effective therapies become higher, but even then
serving patients
cure or disease modification with longer survival
and better quality of life is possible with innovative,
targeted medicines that offer more efficacy
and better tolerability to patients.
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9

0
Our clinical studies in oncology
We have embarked on the discovery and develop-
ment of innovative medicines for some of the most
common cancers. Since 2000, research conducted
at Boehringer Ingelheim Austria has resulted in
promising drug candidates moving into advanced
clinical development. We are conducting clinical
studies of phase II for compounds interfering
with essential drivers of tumour growth: A) aber-
rant growth signalling through activity of epider-
mal growth factor receptor (EGFR) and human
epidermal growth factor (HER 2), B) supply of
oxygen and nutrients to cancer cells by the development
of new blood vessels to the tumour (neoangiogenesis),
and C) targeting inhibition of the
uncontrolled cell division (mitosis).
Current phase I / II target indications for our oral
compounds in antiangiogenesis and signal transduction,
and our intravenous cell-cycle inhibitor,
include non-small-cell lung cancer, breast cancer,
colorectal cancer, prostate cancer, ovarian cancer,
leukaemia and lymphomas.
We are confident that the continued good patient
accrual into our phase II studies will allow us to
establish first proofs of efficacy towards the end of
Boehringer Ingelheim A n n u A l R e p o R t 2 0 0 6
Cell-cycle kinases are cellular
proteins that promote the
process of cell division.
Boehringer Ingelheim’s first-inclass
investigational compound
BI 2536 (light blue) seems to
effectively block such a cell-cycle
kinase (the polo-like kinase,
Plk-1) at its active site, leading
to tumour growth inhibition
and tumour regression.
2007 and that the innovative features of our molecules,
once confirmed in phase III trials, will
offer improved treatment choices to cancer
patients.
Our R & D in oncology
The sequencing of the human genome and detailed
studies of genetic changes in human cancer cells,
known as oncogenome signature typing, have
accelerated the identification of mutations and
the knowledge of the faulty cellular circuitry that
underlie the aberrant growth, invasion and metastasis
of cancerous tissues in the body. Moreover,
they provide important clues to new drug targets
and the best match-up of new drugs with the
patients whose cancers are most likely to respond
to the drugs, a process called biomarker-guided
drug development or customised cancer therapy.
New further compounds have entered development
to strengthen our emerging oncology
pipeline and we are continuing our efforts to
develop monoclonal antibody-based drug candi-
dates. As part of our strategic collaboration with
MorphoSys on human antibodies, we have exer-
cised an option for optimising a therapeutic

HuCAL antibody directed against a cancer-related
target molecule and have acquired an exclusive
licence for this project.
Metabolic diseases
Health authorities and governments have been
alarmed by recent epidemiological data suggest-
ing that metabolic diseases, including diabetes
mellitus type II, obesity and dyslipidaemia, will
grow worldwide by a much greater extent than
previously expected. This has been identified as a
major health problem, not only for western countries,
but also in, for example, South America,
India and China. Particularly worrisome is the
increasing prevalence of obesity in children
together with the onset of type II diabetes in
young adults. This disturbing fact leads to the
forecast that today’s children may have a lower
life expectancy than their parents. We are therefore
putting great efforts into the metabolic disease
field with particular focus on diabetes type II,
obesity and dyslipidaemia. Many diabetic patients
are overweight or obese and also suffer from dyslipidaemia,
features of the metabolic syndrome.
Our clinical studies in metabolic diseases
We were particularly pleased with promising first
clinical results of compounds with two different,
but complementary, mechanisms, one that stimulates
insulin secretion and another that facilitates
the renal excretion of glucose.
The first compound with an already established
mode of action is entering phase IIb after very
encouraging four weeks’ results in diabetes type II
patients. We believe that during later phase III this
compound has the potential to develop into a bestin-class
drug providing improved efficacy and
convenience.
serving patients
The second compound in phase I is a first-in-class,
new development, which may offer improved
options for treatment of diabetes mellitus. It has
already established pharmacodynamic effects of
the mode of action and will enter phase II in
patients in 2007. With additional preclinical
development candidates and follow-up compounds
expected to enter the clinic, our metabolic
clinical pipeline will grow and gain further attractiveness
in the near future.
Our R&D in metabolic diseases
New therapeutic approaches for the treatment of
diabetes type II have the potential of delaying or
even inhibiting the progression of the disease.
Several research projects even offer the possibility
of preventing manifestation of the illness. We
have been successful in entering development
with several of our research projects with a variety
of new mechanisms.
In obesity there is a great need for new drugs that
are more efficacious than the existing ones while
providing a high level of patient safety. Research
in that area is directed both at a reduction of appetite
and food intake as well as increasing the
metabolism of energy carriers. We have established
state-of-the-art technologies to carefully
profile advanced compounds in vitro and in vivo.
We also see opportunities to explore the combination
of various mechanisms.
Despite efficacious treatment for the lowering
of low-density lipoprotein (LDL) cholesterol,
60–70 % of cardiovascular events still cannot be
prevented. The role of low levels of high-density
lipoprotein (HDL) cholesterol and malfunction of
the reverse cholesterol transport are hence areas
of increasing research interest. We have started
several new research projects to address this
therapeutic need.
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1

Our regions
Americas
In our Americas region, 2006 saw continued
strong development of our product portfolio. Net
sales in our Presciption Medicines business
reached EUR 4,460 million.
The USA remains the main driver of pharmaceutical
growth and is the largest contributor to
Boehringer Ingelheim’s sales and profits. The US
market, a highly competitive environment which
underwent significant changes in 2006, grew by
8.2 %. Boehringer Ingelheim continued to develop
above the market average. micardis®, spiriva®,
flomax® and aggrenox® were the main growth
drivers in the USA and compensated for lost sales
of mobic® due to the launch of generic competi-
tors in July.
For the first time, US citizens above 65 years of
age, regardless of income, were given access to
prescription drug coverage by Medicare. This new
coverage (Medicare Part D) began on 1 January
2006. Boehringer Ingelheim ensured that it was
well positioned in the plans to enable a greater
number of US citizens access to our portfolio of
innovative medicines.
In Canada, new regulations on intellectual property
came into law. This established eight years of
data exclusivity for a molecule from the date of its
approval, further protecting the intellectual rights
of the research-driven pharmaceutical industry.
But 2006 also saw the proposal and implementation
of tighter pricing and reimbursement policies
mainly affecting the two major provinces Ontario
and Quebec. This will further limit patient access
to innovative drugs.
Boehringer Ingelheim A n n u A l R e p o R t 2 0 0 6
The economic situation in Latin America stabilised
in 2006. Mexico, our largest operating unit
in Latin America, developed very positively, with
a growth rate of 35 % compared with 2005. The
main growth drivers were flomax®, micardis®,
buscopan®, combivent® and some local key
products. Sales of major drugs, such as spiriva®
and cymbalta®, are growing strongly.
Our South American operating unit, which combines
the management of all Spanish-speaking
countries in the region, enjoyed its first full year in
2006. Greater efficiencies are being generated and
marketing efforts simplified by combining strategies
and resources across the whole regional unit.
A cross-country (CN) management structure has
been established and regional centres of excellence
developed for products in our portfolio. Our
Brazilian company celebrated its 50th anniversary
in 2006. Development here was seen across our
portfolio, with particular success for mirapex®/
sifrol®, the most prescribed drug of its class for
Parkinson’s disease. mirapex® for RLS was
launched in September, reinforcing its market
position. Main drivers of growth were micardis®,
mirapex® and buscopan®.
Europe
Despite an extremely challenging market environ-
ment, our net sales in the Europe region achieved
7 % growth in 2006. Our three main patent-pro-
tected products, spiriva®, micardis®/micardis-
plus® and sifrol®/mirapexin®, met strong
demand, posting double-digit growth rates. New
product introductions contributed positively to
the growth. xeristar®, an innovative antidepressant,
was successfully launched in Italy, Greece
and Spain. Our new protease inhibitor aptivus®
is now available in almost all markets. spiriva®
was successfully launched in France. On the other

hand, the end of exclusivity in Europe for mobic®
and alna®/pradif®/josir® affected sales signifi-
cantly.
In Italy and France, we grew faster than the over-
all market. In the UK, we matched overall market
growth, but in Germany we were unable to keep
up with the market due to the loss of alna® sales
to generic competition. In contrast to Western
European markets, Eastern Europe showed
dynamic economic growth. This was evident in
the prescription medicines markets, especially in
Russia, where a newly introduced federal pro-
gramme reimburses ‘essential medicines’ to
selected patients. Across Eastern Europe strong
demand for our respiratory products and for
mobic® enabled us to achieve 27 % growth.
The healthcare market, in particular the market
for prescription medicines, remains very difficult
in most European countries. While demand is
increasing due to demographic developments and
the use of innovative products with real benefits
to patients, most healthcare systems are chronically
The USA remained by
far the most important
market for our drugs.
Prescription Medicines (PM)
– which accounted for
79 % of our net sales –
had a turnover of more
than EUR 8.3 billion
to which US sales
contributed 46 %.
The Europe region
achieved 26 % of PM
Americas
, 0
underfunded. Accordingly, governments throughout
Europe are reducing consumption volume by
restricting patient access to innovative medicines
and demanding lower prices.
In 2006, the Italian government, for instance,
secured a 10 % cut in retail prices. Newly introduced
products, which naturally post above-
average growth rates, were even subjected to an
additional price reduction. France’s Social
Security Financing Law and Germany’s Economic
Optimisation of Pharmaceutical Care Act have
also contributed to market stagnation.
Price referencing has become common practice
across Europe, with price reductions in one
country leading to reductions elsewhere, inducing
a downward spiral. An increasing number of
companies will be forced to refuse such significant
price reductions to avoid this vicious circle. The
result will be the withdrawal of hitherto
reimbursed medicines, less access to drugs and
higher financial contributions from patients.
Overall, the outlook for the European prescription
of which:
USA branded
3,174
USA generics
657
Europe
,1 0
of which: Germany
446
Asia, Australasia,
Africa
1, 9
serving patients
of which: Japan
849
net sales. Net sales Prescription Medicines, excl. licences (in millions of EUR)
Prescription Medicines

medicines market is far from encouraging and any
fresh investment in this region needs to be evalu-
ated with particular care.
Asia, Australasia,
Africa (AAA)
In our AAA region, 2006 was characterised by
continued strong growth in local currency terms.
Our PM business in the AAA region is heavily
dominated by the performance of Japan which
contributes more than 59 % to regional sales and
earnings. Nippon Boehringer Ingelheim was, for
the second year running, the fastest growing business
among the leading 20 pharmaceutical companies
in Japan. In nearly all the other AAA
countries we outpaced the market. Locally
achieved sales growth was, however, not fully
reflected in euro terms, as most of the region’s
major currencies weakened against the euro during
the reporting period.
The Japanese market for prescription products
remained sluggish. Net sales of our prescription
products increased by 16 % in local currency (by
7 % in euro terms) and by the end of the year our
market share reached 1.7 %, despite a governmentimposed
price cut in April, averaging 5.6 % for our
business.
Australia, our second most important AAA market,
achieved net sales of EUR 118 million and market
share of over 2.3 %. We achieved significant sales
and established a respectable market share of
1.5 % in Turkey, making it our third most important
country in the AAA region.
In South Korea, where we have a joint venture
with a local partner, sales growth exceeded 24 %.
Here we closely follow ongoing governmental
deliberations on positive listing for drug
Boehringer Ingelheim A n n u A l R e p o R t 2 0 0 6
reimbursement. Such deliberations, all being part
of cost containment measures and governmental
restrictions, feature throughout the region. Price
cuts in Taiwan and Indonesia in 2006 caused
particular concern in the pharmaceutical
industry.
In South Africa and neighbouring countries our
growth rate has slowed. This development must,
however, be seen in conjunction with our decision
to grant voluntary licences for viramune® in
South Africa (and also in Egypt, Nigeria, Kenya)
so that generic manufacturers can offer our
antiretroviral drug at generic prices. In fact, in
order to make viramune® more readily available
we announced measures to encourage even more
generic manufacturers to avail themselves of the
opportunity of offering medicines containing the
active ingredient nevirapine to the countries of
the developing world, including the whole of
Africa.
In China, the pharmaceutical market is neither
transparent nor easy, and is in fact dominated by
healthcare reform and generics. Although last
year our Chinese business accounted for only 3 %
of our PM sales in the AAA region, we remain
confident that the huge Chinese market will
gradually make a more significant contribution to
our worldwide business. In 2006, we completed
the formalities to purchase the outstanding 5 % of
shares in our joint venture, which will give
Boehringer Ingelheim a wholly owned enterprise
in China in 2007.
Our strong growth in nearly all the AAA countries
reflects continuing field force efficiency initiatives
and also the robust development of our core prod-
ucts micardis®, spiriva® and sifrol®. Some
well-established products, such as buscopan®,
combivent® and mucosolvan® also produced
an upward sales trend in some countries.

Generic Prescription
Medicines
The US generic industry posted revenues in excess
of USD 47 billion in 2006 and the market is
expected to grow by 6 % annually over the next
five years. Drivers of this growth include the aging
population, government cost reduction measures,
increased generic utilisation, blockbuster patent
expirations, and the emergence of biogenerics or
copies of biopharmaceuticals (biosimilars).
Boehringer Ingelheim’s Generic Prescription
Medicine (GPM) business in the USA, which
consists of Roxane Laboratories and BenVenue
Laboratories with its unit Bedford Laboratories,
generated net sales of USD 825 million (EUR 657
million), approximately 17 % of overall USA
Prescription Medicines sales in 2006.
Business Environment
The US generic market was shaped by many
factors in 2006. There was significant consolida-
tion due to mergers and acquisitions, at the same
time as new international competitors emerged
from Europe and Asia. This increase in the number
of competitors, along with the cost-focused
pharmacopolitical environment, is exerting
continued pressures on margins.
As the size of the generic market continues to
grow, there is also increased competition for
revenues from brand pharmaceutical companies
which show a renewed interest in generics.
Additionally, large multinational generic com-
panies, which have grown through merger and
acquisition, and companies from India, Eastern
Europe and China are playing key roles in this
market.
Roxane Laboratories
Roxane Laboratories focuses on developing
manufacturing and marketing a broad line of oral
solid and liquid medications and intranasal
products. The year 2006 was one of dramatic
growth in which the company achieved net sales
of USD 328 million (EUR 261 million) compared
with USD 242 million (EUR 194 million) in 2005
(+ 35 % in USD terms). Leading this growth
was the launch of fluticasone proportionate
nasal spray, a generic version of GSK’s flonase.
Driven by demographic factors, government’s assumption of the
responsibility for healthcare needs of the uninsured, and efforts to reduce
spiraling costs, the US generic pharmaceutical market will continue its
rapid growth in the coming years. It is anticipated that in 2007 the market
will grow by 15 % to USD 62 billion, versus USD 54 billion in 2006.
Boehringer Ingelheim, by virtue of its US Generic Prescription Medicine
(GPM) subsidiaries Bedford Laboratories and Roxane Laboratories, is poised
to benefit from this growth. By the year 2010, our combined multisource
companies are expected to reach USD 1 billion in sales.
serving patients
Generic Prescription Medicines

Roxane
Boehringer Ingelheim Roxane and Roxane Laboratories
are located in Columbus, Ohio, and are subsidiaries of
Boehringer Ingelheim Corporation (Ridgefield, Connecticut).
These subsidiaries are recognised leaders in
researching, manufacturing and packaging brand name
and generic medications, including oral liquids, tablets
and capsules.
Boehringer Ingelheim Roxane (BIRI) is the manufacturing
arm of Boehringer Ingelheim Corporation. It functions as
a primary site for prescription and multisource pharmaceutical
manufacturing in North America. In addition,
BIRI is one of Boehringer Ingelheim’s two product launch
sites.
Roxane Laboratories is the research and development
and sales and marketing arm of our multi-source business.
It offers development services for new products
and formulas, oversees the manufacturing process for
its customers, and develops analytical test methods for
potential new products.
Roxane started in 1885 as Columbus Pharmacal, a small,
regional pharmaceutical manufacturer. In 1978, it was
acquired by Boehringer Ingelheim. Roxane has about
1,000 employees. The sales increased over the past five
years by about 13 % per year, totalling EUR 261 million in
2006.
Boehringer Ingelheim A n n u A l R e p o R t 2 0 0 6
Fluticasone is the first Roxane product to exceed
the USD 100 million threshold. In 2006, Roxane
submitted 16 abbreviated new drug applications
(ANDAs) to the US Food & Drug Administration
(FDA), received ten tentative approvals (TAs) and
launched seven new products.
Bedford Laboratories
Bedford Laboratories posted net sales of USD 497
million ( EUR 396 million) in 2006, a growth rate
of 17 %. Key products for the year included
propofol, octreotide, glucagen®, paclitaxel,
adriamycin®, midazolam and polymyxin B.
Three new products were launched in 2006,
including ciprofloxacin, an anti-infective; loraze-
pam, an anaesthesia adjunct, and mitoxantrone,
an oncology product. With these three new prod-
ucts, Bedford continues to consolidate its position
in the generic market and remains one of the larg-
est US suppliers of speciality injectable pharma-
ceuticals to hospitals and clinics.
Bedford currently offers 90 injectable products in
254 different configurations, covering a wide
variety of therapeutic classes, mainly in the areas
of oncology, cardiology, anaesthesia, anti-infec-
tive and antipsychotics. It will continue to file ten
to twelve ANDAs each year to create a pipeline of
products that will allow it to maintain a leadership
position in the generic injectable market.

Ben Venue – a world leader in sterile injectable pharmaceuticals
Ben Venue Laboratories (Bedford, Ohio), is part of the Boehringer Ingelheim group of
companies and a leading producer of sterile injectable pharmaceutical products. Also the
oldest and largest contract manufacturer of sterile injectable products in the USA, it has
with an impressive track record. Ben Venue works with some of the largest pharmaceutical
and biopharmaceutical companies, along with mid-size and virtual pharmaceutical and
biopharmaceutical companies which bring their products for development and manufac-
turing of clinical and commercial supply. Ben Venue has established a reputation for exper-
tise in lyophilisation, or freeze drying, which remains a primary speciality.
Freeze drying (above) extends the shelf life of a product, makes it more stable and allows it
to be stored at room temperature. When its latest expansion is completed, Ben Venue will
have 27 freeze-driers with 718 square meters of lyophilising chamber space. It offers the
ability to support batch sizes from 1 litres to 2,000 litres, from clinical to commercial. Ben
Venue markets its own line of generic injectables to hospitals in North America through
its Bedford Laboratories division, currently offering 90 drugs with 254 configurations,
including oncology, cardiovascular, anaesthesia, antipsychotic and other miscellaneous
products to hospitals and alternate care markets.
serving patients
Generic Prescription Medicines

“Now I know how to keep
them under control”
“When I moved from my home town of Pico in La Pampa to study communication science at the
University of Buenos Aires in the Argentinian capital, I found the change very hard. Pressure from
exams made things even worse,” Mara Lovera, a 25-year-old student, explains. “Every time I had to
take a test I experienced strong discomfort and abdominal pain, which on some occasions forced
me to skip exams.”
Abdominal pain and cramps, a widespread ailment around the world, is more common in women
than in men and can affect people still in their teens. The ailment can strike sufferers at any time and
is one of the most common causes of absence from work. It can also have significant impact on self-
confidence, social life and day-to-day living.
“As the discomfort and pain was constantly disrupting my studies, I went my doctor to find out what
could be done to help me. He explained that what I had were spasms produced by stress and nerves,”
Mara says. The doctor recommended an antispasmodic which suppresses and relieves painful muscle
spasms.
“Since the moment I started taking the medication my problem was solved,” Mara says. “Nowadays,
the pain is not so frequent, but every time my stomach starts to hurt, I know how to treat it and keep
the spasms under control.”
New data presented at the international gastroenterology congress, the Digestive Disease Week,
Los Angeles, in 2006, showed that the prevalence and severity of abdominal cramping, pain and
discomfort have been globally underestimated. A global epidemiological study showed that one in
four people around the world suffer from this troublesome and sometimes debilitating ailment.
Two- thirds of all sufferers indicated they experience sudden abdominal attacks that begin without
warning. On average, more than one-third of these sufferers experience at least one fierce attack
every week.
Professor Guido N. J. Tytgat, from the Academisch Medisch Centrum of the University of Amsterdam,
comments: “This ailment is classified as a functional gastrointestinal disorder, which means that the
abdomen appears normal, but does not function properly. Despite the painful symptoms associated
with this ailment, proactive management and treatment can significantly improve a sufferer’s quality
of life.”

Mara Lovera, Buenos Aires, Argentina, went through
hard times because of abdominal pain.

0
From plant to the pharmacy – the buscopan® story
The buscopan® story starts in Ingelheim,
Germany, where elite Duboisia plants are grown
in greenhouses. These plants are bred to be
resistant against nematodes and beetles. The best
seeds are harvested and then delivered to the
company’s plantations in South America and
Australia for further on-site selection. Here, the
shrubs grow on a large scale. The pharmaceutically
important alkaloid scopolamine which is
contained in the dried leaves and stalks is isolated
and purified. Finally, the active precursor
substance scopolamine is converted in a single
chemical process into hyoscine butylbromide,
the active ingredient of buscopan®.
Boehringer Ingelheim’s buscopan® is an
effective over-the-counter medicine which
offers relief from abdominal pain
and discomfort by targeting the
source of the problem. It suppresses
and relieves painful muscle
spasms by travelling directly to
the gastrointestinal tract. It does
not enter the bloodstream, but
Boehringer Ingelheim AnnuA l RepoR t 2006
acts directly on the muscle contractions from
within the digestive tract, causing them to relax,
thus relieving the pain and allowing normal
functioning.
Abdominal cramping, pain and discomfort is a
functional gastrointestinal disorder which can
be painful, embarrassing and often debilitating.
Whilst mild symptoms can be annoying and
unpleasant, severe ones can be unbearable.
Anyone can suffer from abdominal cramping,
pain and discomfort at any time and for any
reason. It affects almost a quarter of the general
population worldwide, with women being more
likely to suffer than men (31 % vs. 22 %). Whilst
there is no difference in the prevalence of the
ailment between different age groups, the
initial onset of symptoms usually
occurs between 27 and 31 years of age.
The causes are manifold and often
difficult to
determine.

Consumer Health Care
Our Consumer Health Care (CHC) business segment achieved net sales of
EUR 1.1 billion in 2006 (+1.1 % against the previous year). All regions of the
CHC business, except Japan, achieved strong growth supported by positive
exchange rate developments. Boehringer Ingelheim is ranked No. 8 worldwide
among CHC companies and defended its position in 2006, primarily
through launching new line extensions and switching prescription-only
medicines to over-the-counter (OTC) products. Our key international brands
continued to develop very positively.
Development by brand
buscopan® – positioned as the specialist treat-
ment for abdominal cramping, discomfort and
pain – extended its worldwide No. 1 antispasmodic
brand position, according to IMS data. The
buscopan® franchise produced strong double-
digit growth in 2006. In Argentina, Colombia and
Paraguay the most recent buscopan® line exten-
sion, buscapina® fem, was successfully intro-
duced for treatment against menstrual pain.
Globally aligned international packaging has now
been introduced in all major countries such as
Argentina, Brazil, Mexico, Germany and Italy a
step towards building a contemporary and com-
pelling global OTC brand.
Top products Consumer Health Care
Net sales in millions of EUR change
dulcolax® 122.0 + 6.2 %
mucosolvan® 108.3 + 18.6 %
pharmaton® 95.6 + 8.2 %
buscopan® 71.2 + 19.6 %
bisolvon® 67.1 + 0.4 %
thomapyrin® 34.2 + 14.2 %
laxoberal® 34.0 + 6.9 %
antistax® 23.2 + 2.7 %
dulcolax® – our leading laxative brand – main-
tained its position as the No. 1 laxative worldwide
and is now marketed in over 100 countries. Posi-
tive performances were achieved in 2006 in
Europe, Asia and the Americas, where our strong
category position was reinforced. In order to con-
tinually strengthen our brand worldwide, a
number of key line and brand extensions are being
developed in order to reinforce dulcolax®’s
global position.
antistax® – our brand for the prevention and
treatment of chronic leg vein insufficiency –
succeeded in delivering another year of growth in
2006. Driven by strong double-digit growth in
Italy, Belgium and Russia, antistax® is well on its
way to becoming a leading international player in
the treatment of chronic venous insufficiency.
With a new brand positioning and worldwide
rollout plans in place, antistax® is set to continue
playing a central role in delivering positive busi-
ness growth for our CHC business in the coming
years.
mucoangin® – our sore throat brand – achieved
satisfactory growth in the major markets of
Germany and Mexico. A new product launch was
made in the Netherlands.
serving patients
Consumer Health Care
1

zantac® – an excellent strategic fit
Boehringer Ingelheim’s Consumer Health Care (CHC)
business made an important strategic move in October
2006 with the acquisition of US rights to the over-the-
counter (OTC) brand zantac® (ranitidine), an H2 blocker
for treating the common disorders heartburn and acid
indigestion.
“Our CHC business ranks as the eighth largest supplier of
self-medication products worldwide, and the well-known
consumer brand zantac® will further strengthen its
presence in the key US market,” says Hans V. Regenauer,
Corporate Senior Vice-President Marketing & Sales
of Boehringer Ingelheim’s CHC business. The zantac®
rights, acquired under an agreement between Boehringer
Ingelheim Pharmaceuticals, Inc., Johnson & Johnson
and Pfizer, add to the US portfolio a strong consumer
brand that combines well in terms of retailing and sales
and promotion with the flagship brand dulcolax®,
Boehringer Ingelheim’s worldwide leading laxative brand.
“zantac® is an excellent strategic fit that comple-
ments our existing OTC franchise and provides us with
two leading brands in the two largest gastrointestinal
categories – acid reducers and laxatives,” says J. Martin
Carroll, president and CEO of Boehringer Ingelheim’s
US Corporation.
mucosolvan® – the world’s leading cough expec-
torant – maintained its No. 1 position in 2006 and
achieved good growth performances in Russia,
Mexico and Brazil. New marketing campaigns
were launched in Germany and Russia, as well as
in China and France, where mucosolvan® was
targeted at consumers for the first time.
bisolvon® – the cough remedy – strengthened its
position as one of the leading brands in the world
cough remedies category as a result of new prod-
uct upgrades and product launches.
Boehringer Ingelheim AnnuA l RepoR t 2006
Regions
Europe
In 2006, the region reported sales growth of more
than 5 % compared to the previous year, this in
spite of low incidence in coughs and colds and
strong negative business impact caused by the
delisting activities by the authorities in France.
Strong growth was provided by our flagship
brands dulcolax® and buscopan® which
together posted a growth of almost 20 % against
the previous year.
Together with several small countries, Spain, Italy
and Russia were prime drivers of the positive
development.
Americas
The year 2006 was again positive for the CHC
business in the Americas region, which achieved
growth of 10 % against the previous year. All international
core brands developed positively. The
main growth drivers were the USA, Mexico,
Argentina and Venezuela.
mucosolvan® has
proven to be a very
reliable, trusted
and strong
expectorant for
the treatment of
productive cough.
It is one of the
leading therapies
for cough and is
available around
the world.

Switching reinforces the trend towards
self-medication
Switching – the reclassification of prescription-only
medicines to over-the-counter (OTC) products needing
no prescription – is reinforcing the growing trend towards
self-medication.
Throughout the developed world the explicit policy
adopted by many health authorities in licensing and
reclassifying medicines, is that they should be made
freely available to patients, unless a case can be made
for availability being restricted.
Making medicines more widely available at the pharmacy
as OTC products provides consumers with the opportunity
to buy a wider range of medicinal products. This
deregulation of medicines comes against a background
of pressure on the drugs bill in many countries.
Some governments are already committed to expanding
the range of medicines available for self-medication
towards longer-term chronic conditions and preventive
therapies. zantac®, for which Boehringer Ingelheim
recently purchased the USA rights, is a great example of
a brand which was a prescription blockbuster for many
years, but has now successfully switched globally with
equal OTC success.
In addition, Boehringer Ingelheim’s self-medication
portfolio also includes other highly successfully switched
products, such as the antispasmodic buscopan® and
mucosolvan®, the cough expectorant.
Asia, Australasia, Africa (AAA)
SSP Co. Ltd. – the No. 3 OTC company in Japan,
whose major shareholder is Nippon Boehringer
Ingelheim Co. Ltd. – defended its position in a
highly competitive market environment. The AAA
region, excluding Japan, achieved strong growth
of 26 % against the previous year. Our international
core brands pharmaton®, bisolvon® and
dulcolax® showed overall sales growth of 10 %.
On the road for leg vein health
serving patients
Boehringer Ingelheim’s antistax® camper van is a wellestablished
mobile consulting room. It tours Italy to raise
public awareness about chronic vein insufficiency.
The tour is conducted in cooperation with the scientific
institute San Raffaele in Milan under the slogan
“Benessere delle Gambe” (Well-being for legs). In 2006,
the van visited 13 cities from Como to Naples, giving
access to the public, in order to provide them a free
leg-vein check, conducted by a specialist. About 3,000
people, mainly women but also some men, visited the van
for a free consultation, to find out if they suffered from
chronic venous insufficiency, an ailment which can be
associated with heavy, tired, achy and swollen legs.
Boehringer Ingelheim’s antistax®, a natural food supplement
can help to maintain leg vein health. It contains the
unique extract of red vine leaf, AS195®.
Consumer Health Care

Top Story: Metacam®

Alexander (left) and Christopher playing together with Tom, a Fjord gelding
which is part of their therapy. The horse had to be treated for colic.

Our friend Tom
Fatima, a 30-year-old Anglo-Arabian mare, and
Miriam who takes care of the horse, still an
important member of the team. And the children
are happy to work with her.
Alexander and Christopher, both nine years old, are two cheerful, outgoing young boys. They love
playing football and computer games. But Fridays are always special for the twins: that is when they go
to see Tom. Tom, a 12-year-old Fjord gelding, is their friend. “He’s so big and blond and soft,” says
Christopher, his eyes gleaming. Riding and handling the horse, feeding and looking after it, is extremely
important for the children’s development, as their health has been impaired since birth.
For about three years Alexander and Christopher have had regular training once a week at the
therapeutic riding centre in Flörsheim-Dalsheim, a town south-west of Frankfurt in Germany. Tom
has been part of the team there now for many years and has been specially trained for the job. The
rhythmic movement of the horse and the therapeutic exercises during a ride relieve Alexander’s
spasticity. The elevated position and being able to move without a wheelchair give him an immense
feeling of freedom. And Christopher finds the horse has a calming effect, particularly the close
physical contact with the animal. Christopher suffers from attention deficit disorder (ADD).
“The most vital aspect of the therapy is the trust between the horse and client,” explains Nora Ringhof,
the boys’ therapeutic riding instructor. “The animal becomes an important partner and friend. Building
trust, through eye-to-eye contact, for instance, is of decisive importance and is only possible over a
long period of time,” she says.
This kind of therapy normalises muscle tone, helps clients control their upper body and head, improves
balance and helps them learn how it feels to move. It is indicated in the case of cerebral movement
disorders, regardless of the cause or severity, multiple sclerosis, spina bifida, postural defects, or lowback
syndromes. Furthermore, the improvement of social skills forms an important part of riding
therapy.
When Tom suddenly developed colic one day, he was given immediate relief by administration of
metacam®, an analgesic and anti-inflammatory drug from Boehringer Ingelheim. Their very long
intestine makes horses very prone to colic, a disease that can prove life-threatening. Every year about
10% of all horses across the world suffer from equine colic. Many horses can be helped with drug
therapy while others have to undergo intensive surgery in special clinics. Recent research results from
the USA show that metacam® is highly effective in the treatment of this disease. Ms Ringhof adds:
“The children are delighted that Tom found help so quickly and that he’s ready for them again.”
Boehringer Ingelheim A n n u A l R e p o R t 2 0 0 6

Animal Health
The sound progress of our core business segments in Animal Health, namely
swine and small animals, is a key characteristic of the year 2006. On the
whole, our global Animal Health business has concluded another successful
year with a growth of 4 %. Adjusted for extraordinary and currency effects,
the business grew by 8 %. This again compares favourably to the industry’s
excellent growth of 6 %.
Overall, we increased sales to EUR 374 million
and have hence continued to strengthen our
position in the global market. With a global mar-
ket share of 3 %, in 2006 we once again ranked
among the top ten animal health companies in
the world.
Regions
Growth was relatively balanced across all regions
and exceeded our expectations everywhere in
2006. Once again, Europe brought very gratifying
news, since all countries developed positively
compared to the previous year, showing overall
growth of 10 %. The NAFTA region achieved con-
siderable growth over 2005. Our market leadership
in the porcine vaccine sector was extended further
and, in the first full financial year with our own
independent companion animal team, we achieved
marked sales growth for several products. We
celebrated the 25th anniversary of Boehringer
Ingelheim Vetmedica, Inc. in St. Joseph, Missouri,
our global research and production site.
In Asia, our country organisations, in particular in
China, Thailand and South Korea, achieved
exceptional growth figures, a result of the stringent
focus on pig vaccines in these markets. Japan
showed far-reaching progress in increasing profitability
and improving the product portfolio.
serving patients
Emerging markets
The Animal Health business area extended its
global presence in 2006. We commenced marketing
our porcine vaccine portfolio through our own
organisation in Brazil, one of the world’s largest
pig markets. In addition, we reorganised our
South American activities with a regional sales
organisation in September. Our teams now very
effectively serve the markets in Argentina, Chile,
Paraguay, Uruguay and the Andean Pact countries.
By newly establishing a sales organisation in
South Africa, we emphasised the geographic
expansion of our business activities in sub-Saharan
Africa. Furthermore, our new subsidiary in
Dubai is to supply the demanding Arab markets,
especially in the small animal, equine and poultry
segments.
In Europe too, additional efforts are dedicated to
opening up new markets, especially in Eastern
Europe. Most recently, all our operations for Austria
and Eastern Europe have been bundled and
are now conducted from a regional centre in
Vienna, which will be fully operational by the first
quarter of 2008. In summary, 2006 was dedicated
to accessing emerging markets and to introducing
and marketing our product portfolio in new
regions – a strategy we intend to continue to pursue
in the future.
Animal Health

Food-producing animals
Swine
The global launch of enterisol® ileitis was one
of the highlights of 2006 in the swine segment.
With the market introduction of this innovative
vaccine in most European countries, in Brazil,
Australia and in New Zealand it grew by 33 %.
However, it became evident that many farmers
still consider the concept of disease prevention to
be a major change of standard practice. The
acceptance and implementation at farm level will
therefore take longer than anticipated. However,
forecast trends indicate that enterisol® ileitis
will already be our biggest selling pig vaccine in
2007. In July 2006, a survey of participants at the
Congress of the International Pig Veterinary
Society (IPVS) in Copenhagen confirmed that
ileitis is currently seen as the most important sub-
clinical disease in pigs. The unmet therapeutic
need is obviously substantial. But substantial too
is the economic advantage that the use of
enterisol® ileitis brings to pig farmers.
Further highlights of 2006 included the market-
ing authorisation of our new vaccine ingelvac®
circoflex which was granted approval in the
USA in October, and in Canada in November. This
highly efficacious vaccine protects against porcine
circovirus, PCV-2, currently considered to be one
of the greatest unsolved problems in pig production.
This insidious disease dramatically weakens
the animals’ immune system, leaving them
susceptible to infection. The one-shot vaccine
ingelvac® circoflex, which was developed in
record time, is an antigen that effectively controls
this disease in affected herds. Products, such
as enterisol® ileitis and ingelvac®
circoflex, have demonstrated that Boe-
hringer Ingelheim Animal Health can rapidly
Boehringer Ingelheim A n n u A l R e p o R t 2 0 0 6
and effectively respond to emerging diseases by
supplying medical innovations and economically
beneficial solutions to pig producers.
As to the future, we are confident that we will be
able to maintain strong growth in the swine seg-
ment and aim to become the global No. 1 in pig
vaccines in the near future. Fiftyfive scientific
publications presented at the 2006 IPVS congress
have substantiated our market and opinion-lead-
ing position.
Cattle
Our support for US search dogs
“Over the past decade, we’ve found out about the vital role
rescue dogs play when properly trained with a skilled fire-
fighter to save lives. This is the human-animal bond at its most
profound. Over the years, the canines and their firefighter
partners have responded to national and local disasters such
as 9/11, Hurricane Katrina and many other regional and state
disasters. We thank Boehringer Ingelheim for their belief in
our mission and for their support in being part of the search,”
says Wilma Melville, founder of the National Disaster Search
Dog Foundation (NDSDF).
The mission of the NDSDF is to produce the most highly trained
canine search and rescue teams in the USA. In response to
the shortage of such teams, Boehringer Ingelheim Vetmedica
is enabling a greater number of search and rescue dogs to be
The cattle segment also posted
significant growth in 2006.
Our traditional mastitis
products continue to
enjoy great popularity in
the market due to their
outstanding efficacy.

located, trained and placed with fire departments under a
three-year partnership deal.
In return, the NDSDF has given the company exclusive affiliation
with a search dog, Lola, a Black Labrador (right) handled
by Johnny Subia of the Seaside Fire Department in California.
She was selected as the metacam® search dog.
In metacam®, Boehringer Ingelheim offers a medication that
benefits canines (and other animals) suffering from osteoarthritis,
the most common cause of impaired mobility in dogs.
One of a new generation of effective non-steroidal antiinflammatory
drugs, it reduces within hours inflammation and
relieves pain associated with osteoarthritis, while minimising
the side effects seen with less selective substances.
Encouraging growth rates for these products, for
instance mamyzin® and benestermycin®, have
supported our decision to make additional invest-
ments in this segment. In January 2006, we
acquired the mastitis product line of Leo Animal
Health in the United Kingdom and Ireland.
Productivity in the cattle business – as in many
other Animal Health areas – is closely linked to
animals’ well-being. Consequently, efficient treatment
of pain and inflammation will increase
productivity. With growth of over 10 %, metacam®
again made strong inroads into this market. In
addition, the cattle vaccines business in the USA
developed very well in 2006. At the same time,
the divestment of our ectoparasite portfolio has
further streamlined our product segment in the
US and facilitates our global focus on vaccines,
mastitis products and pharmaceutical
specialties.
Companion animals
serving patients
Small animals
The positive trend in our business in the small
animals segment continues apace. Due to the
strong brand awareness, highly efficacious products
and successful marketing strategies, we can
look back on another record-breaking year in the
companion animals segment. In 2006, we focused
on the long-term treatment of dogs and cats with
osteoarthritis and other painful locomotor diseases.
Not only did we make impressive gains in
this sector with our top brand metacam®, but we
also responded to the wishes of veterinarians and
dog owners for a new dosage form by launching
metacam® chewable tablets for short-term postoperative
treatment in Europe and Australia.
Additional synergy effects were clearly apparent
for metacam® injectable solution.
Animal Health 9

90
serving patients
Our second flagship product for companion ani-
mals, vetmedin®, a product based on pimobendan,
secured further market shares in 2006 in the
fiercely competitive small animal market. The
outstanding efficacy of this drug in endocardiosis
in dogs was recently underlined by a scientific
study called Vetscope. By dilating the blood ves-
sels and increasing the contractility of the heart
muscle, the animals not only lived much longer
than after treatment with angiotensin-converting
enzyme (ACE) inhibitors, but also significantly
showed fewer symptoms – a clear indication of
improved quality of life. Thus, it is no surprise that
vetmedin® more than surpassed our expectations
in the reporting year, achieving growth of over
20 %. We plan to increase market penetration even
further over the next few years to be able to offer
vetmedin® across the globe.
Horses
Our company’s global equine business has clearly
followed the positive trend of all other business
areas. Milestone achievements were the launch of
the metacam® oral suspension for musculoskeletal
diseases in horses in Europe, as well as
the market introduction of equitop gonex®
in Germany, a product available without pres-
cription for regulating and stabilising joint
and connective tissue metabolism. Furthermore,
the European marketing authorisation for
metacam® injectable
Boehringer Ingelheim A n n u A l R e p o R t 2 0 0 6
solution for pain relief in equine colic was another
landmark accomplishment, providing an essential
component for the treatment of gastrointestinal
diseases and supplementing buscopan®, sedivet®
and pronutrin®. Hence, the ground is prepared
for further growth in the equine sector in the
future.
Research and
development
For many years, Boehringer Ingelheim Animal
Health has been investing a high percentage of its
sales in research and development. In 2006, it
totalled around 13 % of our net sales. Innovation
is the imperative basis of our organic growth
strategy. Consequently, we commit ourselves to
further substantial investment in our global R&D
infrastructure and in a European vaccines research
and development centre in the years ahead. We
also note with considerable optimism the sound
progress in our product pipeline and the high level
of expertise in the control of emerging diseases
as well as the expertise in developing novel
chemical formulations. Through the discovery of
new pharmaceutical solutions, molecules or
vaccines we can offer added value to
veterinarians and animal owners, thus
benefiting mankind.

Our Customer Orientation
Our customer orientation

9
How innovations are made
The world of biopharmaceutical production has in the last five years grown
immensely due to ever-increasing market demand for monoclonal antibodies
(MAbs) and other therapeutic proteins. As many antibody-based therapies are
applied in high doses – for example in oncology – there is a need to ensure
high production capacity with high yield. Boehringer Ingelheim is meeting this
need by continuously improving biopharmaceutical production of therapeutics
derived from mammalian cell culture (Biberach, Germany) and bacterial
fermentation (Vienna, Austria). For gene therapeutics and DNA products
Boehringer Ingelheim’s expertise is increasingly in demand too.
At our biopharmaceutical site in Vienna we have
developed a fusion protein technology which uses
the bacteria E. coli to produce efficiently therapeutic
proteins. E. coli serves as a bacterial
expression system and core of a process which
ultimately delivers a therapeutic protein yield that
is four times that of current industrial standards.
This achievement will further strengthen the
company’s competitiveness in the area of produc-
tion of therapeutics of bacterial origin. Due to the
creativity and know-how of our teams in process
development and manufacturing, Boehringer
Ingelheim offers very economic, high-yield
processes performed in our modern facilities.
In 2000, Boehringer Ingelheim Austria entered
the area of plasmid DNA products, an important
therapeutic molecular structure which helps to
develop gene therapeutics and vaccines. During
the last five years, Boehringer Ingelheim has
advanced its plasmid DNA product yields from 50
mg/l to 2,000 mg/l – a 40-fold yield increase.
After the successful validation of the new Vienna
plant, Boehringer Ingelheim became the preferred
partner for the immediate uptake of late-stage and
commercial products to be produced in E. coli and
yeast. These include therapeutic proteins, antibody
fragments, protein scaffolds and plasmid
DNA products.
Boehringer Ingelheim A n n u A l R e p o R t 2 0 0 6
For some years now, Boehringer Ingelheim Pharma
in Biberach has had an international reputation
as a reliable contract developer and manufacturer
of biopharmaceuticals from mammalian cells and,
as such, has cultivated a long-standing and synergistic
relationship with highly respected companies
in the biopharmaceutical arena.
Recombinant proteins are manufactured by means
of fermentation in bioreactors. Cultivation depends
here on optimal conditions for cell growth and
production of the drug substance. The organisms
used (cell cultures or bacteria) are highly sensitive
to any changes such as temperature, pH, oxygen
and carbon dioxide saturation, length of the
process or excipients used. Biopharmaceutical
Process Development in Biberach tests and evaluates
at once the different cultivation conditions for
mammalian cell cultures (e.g. CHO cells) on a small
scale. These tests make it possible to determine the
optimal growth conditions for the cells which will
later be implemented in the large-scale bioreactors
for market production. This important part of
development is essential for the economic production
of drug substances with high-yield processes.

On a biopharmaceutical compound’s way from
mind to market there are many hurdles to over-
come. The Biberach teams have successfully
addressed these challenges and many projects
have been advanced into late stages: three new
cell culture products in oncology and in respiratory
diseases have recently been transferred from
the small-scale process development level to the
large-scale production level. This is one step
further on our way to be able to finally apply for
international marketing authorisation.
Furthermore, Boehringer Ingelheim successfully
entered the Japanese oncology business by signing
a manufacturing agreement with a major Japanese
pharmaceutical company for a monoclonal antibody
in the field of oncology.
our customer orientation
In Biberach, Boehringer Ingelheim has also developed
a high expression system (bi-hex) which
uses mammalian cell cultures (CHO cells) to
obtain a high yield of the therapeutic protein of
interest. The bi-hex platform meets demands for
shorter development times of a new biological
medicine and follows the paradigm do-it-rightthe-first-time
to avoid unnecessary costs and
delays. The bi-hex system has a four-fold higher
yield from mammalian cells than the current
industrial standard.
Since most modern biopharmaceutical treatments
cannot be taken in tablet form, patients have to
inject the medication using a syringe. With prefilled
syringes the convenience for patients can be
increased usually resulting in a better compliance
How innovations are made
9

9
and treatment success. The worldwide need for
such devices is constantly on the increase.
Boehringer Ingelheim established a new aseptic
filling line for pre-filled syringes in Biberach for
this therapeutic need.
Our biopharmaceutical activities also support the
development of Boehringer Ingelheim’s Animal
Health product pipeline. The support focuses on
R&D activities, such as the evaluation of anti-
microbial peptides, for the treatment of chronic
bacterial infections that cannot be efficiently
controlled by conventional antibiotics, and the
investigation of the safety and efficacy of recom-
binant cytokines for the treatment of certain
canine tumours in a new galenic formulation.
New biotechnology course started
Confirming our leading position in biopharma-
ceuticals development and manufacture, we have
extended our resources for cell line development
services for third parties and have established a
global manufacturing network with collaboration
partners in manufacturing in Asia, Europe and
the USA.
Our biopharmaceutical Industrial Customer
business is not only growing faster than the mar-
ket average but is at the same time adding value to
research and development activities within the
company to ensure a sustained biological product
pipeline with the aim of developing innovative
therapeutic proteins that ultimately benefit
patients.
October 2006 saw the first 35 students begin a pioneering degree course in pharmaceutical biotechnology
at the School of Technology, Biberach, the German town that is home to Boehringer Ingelheim’s
main biopharmaceuticals site. Studies started only days after the inauguration of a EUR 8.6 million
faculty building.
“This project is of great importance beyond the region for the competitiveness of biopharmaceuticals
in Germany, as well as for patients who attach new hopes to this technology for treatment of their
diseases. Every third medicine being approved today is of biopharmaceutical origin,” Professor Rolf
Werner, Senior Vice-President, Corporate Division Biopharmaceuticals, Boehringer Ingelheim, said.
The 3.5-year course, which leads to a bachelor’s degree, concentrates on biopharmaceutical production
processes and is more focused than previous study options serving the industry.
Boehringer Ingelheim’s Biberach site houses the largest biopharmaceutical production facility in
Europe. The new specialised faculty, set up by Boehringer Ingelheim in partnership with the local,
regional and federal authorities, as well as commercial partners, represents an important investment
in ensuring the future skills base.
Boehringer Ingelheim A n n u A l R e p o R t 2 0 0 6

Pharmaceuticals
Production
Our Pharmaceuticals Production Division
launches and produces Boehringer Ingelheim’s
own drugs in a globally coordinated production
network. Each site has a distinctive strength
focusing on launch or seamless supply. Production
sites are competitive centres of business process
excellence with distinctive competencies in
managing, for example, new technologies and
product life cycle.
In 2006, major investments, such a that for the
respimat®, dabigatran or the LogiPack Center in
Ingelheim, were made.
Ben Venue, Bedford, Ohio, USA, one of the world’s
largest sterile injectables manufacturers, also
invested more than USD 50 million in a new
manufacturing facility which will come on line in
2007. For the mid-term, Boehringer Ingelheim
plans to invest a total of more than EUR 1.3 billion
for new products, mainly in Germany and the
USA. Optimising the assets of Boehringer Ingel-
heim’s corporate network will further contribute
to increasing efficiency.
Pharmaceuticals Production also offers its capa-
bilities and capacities to our Industrial Customer
business. Boehringer Ingelheim produces for key
clients, such as Pfizer, Sanofi, GlaxoSmithKline,
Novartis, Bristol Myers Squibb, Sankyo, Sagmel
and Valeant.
our customer orientation
Pharma Chemicals
The sales figures of our worldwide Pharma Chem-
icals business developed very well. Consolidated
sales amounted to EUR 158 million in 2006,
clearly exceeding the 2005 level (EUR 140 mil-
lion). The importance of the US market increased
further.
The excellent positioning of our large established
line products also contributed to the gratifying
sales development. The phenylephrine business
continued growing at a high level, guaifenesin
sales doubled and ketoprofen volumes developed
very well, especially in Japan. The development in
the new business development area was also
favourable. A couple of very promising projects
will ensure future growth.
Pharmaceuticals Production / Pharma Chemicals
9

9
Our investments in 2006
As a result of dynamic business growth, global investments in tangible fixed assets at Boehringer
Ingelheim increased significantly in 2006. They totalled EUR 596 million, which is an increase of 12 %
on the previous year.
Major investment projects that began in 2006 included expansion of the chemical production facilities
in Petersburg, Virginia, USA, and Fornovo, Italy. With an investment volume totalling more than EUR
170 million, these projects will ensure a long-term supply of active pharmaceutical ingredients (APIs)
for pharmaceutical production.
An especially important investment project is the expansion of the production facilities of Boehringer
Ingelheim microParts at the site in Dortmund, Germany, where production capacity for respimat®
devices is set to double by 2009 through expansion of the on-site production area and systems. This
will be accompanied by an increase in the number of employees in Dortmund from approximately
350 to 500 by 2010.
In addition to the opening of a new biology research centre in Vienna, Austria, a new centre for
pharmaceutical research and development was inaugurated in Biberach, Germany, in 2006 (right).
With an investment of approximately EUR 50 million, this new building provides a modern working
environment for around 130 employees for administering and applying new active ingredients.
Boehringer Ingelheim A n n u A l R e p o R t 2 0 0 6

Counterfeits – a real threat
for patients
According to World Health Organization (WHO) figures,
about 10 % of all pharmaceuticals are counterfeit, are fakes
or substandard drugs. People in developing countries are
regularly confronted with this problem, also developed
countries too are increasingly affected by this kind of crimi-
nal activity. The main sources for counterfeit drugs are in
Asia and Latin America.
Boehringer Ingelheim products were also subject to this
criminal activity. Since 2001, when the Corporate reporting
system was installed, over 100 cases had been reported from
inside or outside the Corporation.
There are several reasons for the rise of counterfeit
medications: weak regulatory oversight, missing legal
framework for prosecution and penalisation, untrained
customs and a supply chain which is not sufficiently
Two-dimensional barcodes are small and can store much
more information than older one-dimensional barcodes.
They are therefore useful for pharma packages. To give
the maximum protection for the patient they should be
combined with tamper-resistant closures.
our customer orientation
controlled by inspections and not well protected against
penetration of faked products. New distribution channels
like the internet are not yet sufficiently controlled either.
“One company alone cannot solve the problem,” says
Dr Thomas Zimmer, Head of Corporate Safety, Quality
& Environmental Protection. Dr Zimmer represents
Boehringer Ingelheim in the European Federation of
Pharmaceutical Industries Associations (EFPIA) as the
chairman of the anticounterfeiting ad hoc group and
as a member of the WHO taskforce IMPACT.
The strategy for combating counterfeits in the developed
world involves a couple of different approaches: a tamper-
resistant package, which is combined with a two-dimen-
sional randomised barcode specific to one individual pack-
age, and a database to support the authentication process of
products as close to the customer as possible, ideally in
pharmacies. In the USA, other techniques, such as radio
frequency identification (RFID) labels are currently being
discussed as too are so-called “pedigrees” which document
each stop a product has made in the supply chain. To
specifically address the Latin American market Boehringer
Ingelheim founded an internal taskforce intended to
collaborate with other companies and local agencies to
contribute to respective solutions.
“But the solution is not only a technical one,” Dr Zimmer
says. “There is in general an over-reliance on technology.
Communication with the public is needed.”
It is a fight which requires patience, persistence and sustained
effort. “This battle can be won, but you can only
win it step by step,” underlines Dr Zimmer.
Investments / Counterfeits
9

9
Boehringer Ingelheim A n n u A l R e p o R t 2 0 0 6

Group Management Report 2006

Group Management Report
Business and operating
environment
Overview
The world economy in 2006 maintained the
positive development of the previous year.
Economic growth was broadly based. The
primary contributors to this were the economies
of East Asia, the United States and the euro zone
too, which in 2006 showed a strong increase in
its real gross domestic product (GDP).
In Germany too economic development in
2006 was favourable. With a growth rate of
2.7 %, real GDP was higher than it had been
since 2000. In contrast to the previous years,
domestic demand, alongside continued, strong
exports, also contributed decisively to this
gratifying development. In particular, the sales
Net sales by businesses 2006
(in millions of EUR)
Prescription Medicines
7,247
Consumer Health Care
1,052
Biopharmaceuticals
548
Pharma Chemicals and
Pharmaceuticals Production
299
Animal Health
361
’05 ’06
8,311
1,064
503
306
374
100 Boehringer Ingelheim A n n u A l R e p o R t 2 0 0 6
tax increase, from 16 % to 19 %, announced
for 2007, led to extensive purchases of durable
consumer goods being brought forward.
The pleasing development in 2006 also extended
to the labour market. The number of unemployed
fell distinctly and the number of people in
employment rose further.
The favourable economic development can,
however, only to a very limited extent be applied
to the research-driven pharmaceutical industry.
The growth rate for the world pharmaceutical
industry, discounting currency effects, slowed
again in 2006 – already the third year in succes-
sion.
The reasons for this development are various. In
first place is certainly the fact that a number of
important products from leading pharmaceutical
Net sales by region 2006
Net (in millions sales by of region EUR) 2006
(in millions of EUR)
Americas
Americas 4,559
4,559
Europe
Europe 3,117
3,117
Asia, Australasia,
Asia, Australasia, Africa
Africa 1,859
1,859
’05 ’06
’05 ’06
5,388
5,388
3,295
3,295
1,891
1,891
Total
Total
9,535
9,535
10,574
10,574

companies lost their patent protection. Due to
the subsequent generic competition, these
products were sold at substantially lower prices.
On the other hand, it is becoming increasingly
difficult to close the sales gaps caused by
expiring patent protection with new products.
The number of new registrations still trails
behind the high points of previous years.
Nor was Boehringer Ingelheim able to avoid the
worldwide trend of declining growth rates in the
industry. Following turnover growth, according
to the healthcare information provider IMS
Health, of 24 % in 2005, discounting currency
effects, primarily borne by innovative launches
(spiriva® and micardis®) and extraordinary
effects (mobic®), growth of only 8.4 % was
achieved in 2006. However, as in the last seven
years, this exceeded overall market growth
(6.1 % in 2006). A significant cause of the slowed
growth at Boehringer Ingelheim is that our anti-
rheumatic mobic®, as expected, faced generic
competition in the USA from summer 2006
and compared to 2005 experienced a decline
in turnover of EUR 250 million.
Boehringer Ingelheim’s growth in 2006 was
again borne by all three regions, each of which
surpassed its respective market growth. This
testifies to the international orientation and
strength of our group. The strongest growth was
achieved in the Asia, Australasia, Africa (AAA)
region, with 15 % at constant exchange rates
according to IMS Health. In the Americas region
turnover growth was 9 %, discounting currency
effects. In Europe we posted market growth of
4.6 % at comparable exchange rates.
Net sales
(in millions of EUR) 2006 2005 Change
Prescription Medicines 8,311 7,247 +15 %
Consumer Health Care 1,064 1,052 +1 %
Biopharmaceuticals 503 548 -8 %
Pharma Chemicals and
and Pharmaceuticals
Production
306 299 +2 %
Animal Health 374 361 +4 %
Borne by growth in all three regions, group net
sales were increased by 10.9 % to almost EUR
10.6 billion. The favourable development of the
business in the last few years (2005: +17 %, 2004:
+10.5 %) has thus continued. As in 2005, exchange
rate developments in 2006 had no decisive impact
on turnover growth. The Japanese yen only lost
some 6% of its value compared with the previous
period, which only had an effect of less than -1 %
on group net sales.
Boehringer Ingelheim’s most important sales
segment is the Prescription Medicines (PM)
business that again in 2006 developed very
favourably, with an increase of 15 %.
Net sales by region
(in millions of EUR) 2006 2005
Americas 5,388 4,559
Europe 3,295 3,117
Asia, Australasia, Africa 1,891 1,859
Group Management Report 101

102
In our Animal Health business, with growth of
10 %, we further reinforced our No. 10 position
internationally and thereby secured a market
share of 3 % in this highly competitive market.
We considered growth of 1 % for our Consumer
Health Care (CHC) as unsatisfactory. The main
reason lies in the restrained development of our
business in Japan, which, in addition, suffered
from the marked depreciation of the Japanese
yen. We expect the acquisition at the end
of 2006 of the medication zantac® in the USA
to give us strong growth in CHC business in
this market in 2007.
We anticipated the 8 % decline in turnover in
the Biopharmaceuticals segment, as the previous
period had been positively affected by certain
extraordinary factors (2005 growth in this
segment amounted to 40 %).
In the business area PM we further extended
the market position of our main sales generators
spiriva®, flomax® and micardis®. In these
products Boehringer Ingelheim now has three
medications with sales volumes exceeding
USD 1 billion. spiriva®, one of the most prescribed
medications for the treatment of chronic
obstructive pulmonary disease (COPD), achieved
the strongest growth with a 45 % increase on the
previous year. micardis®, a medication for the
treatment of hypertension, achieved growth of
34 %, which underlines the strength of this
medication in this highly contested market
segment. micardis® has thereby met our expec-
Boehringer Ingelheim A n n u A l R e p o R t 2 0 0 6
tations and we assume that it has further growth
potential that can gain additional momentum on
publication of the results of the ontarget
study in 2008. flomax®/alna®, a medication for
the treatment of benign prostatic hyperplasia
(BPH), achieved sales growth of 28 %. This
growth is primarily attributable to its market
success in the USA, where it holds a market share
of around 57 %. We expect another important
turnover driver from the 2006 market approval
for sifrol®/mirapex® in the indication restless
legs syndrome (RLS) in both Europe and the USA.
The generic competition for our mobic® in the
USA had been anticipated, but some months later
than it actually happened. For the first time, the
US Food and Drug Administration (FDA) granted
market approval to 14 applicants simultaneously,
which immediately after they entered the market
led to a dramatic decline in prices.
As in previous periods, the positive influence of
our concepts Value through Innovation (VTI)
and Lead & Learn was of importance in 2006.
Both have continued to play a decisively
formative role in our corporate culture and are
a significant basis for successful cooperation at
Boehringer Ingelheim. With a series of projects
we have ensured that these principles will
continue to be translated into reality so that
we can thereby also successfully meet the
challenges of the future.

To summarise, we see the success of 2006 once
again as confirmation of our business efforts.
In the business areas Research and Development,
Production, Marketing and Sales we regard
ourselves as well-equipped and look to the future
with confidence.
The most important figures for earnings for 2006
are as follows:
(in millions of EUR) 2006 2005 Change
Net sales 10,574 9,535 +10.9 %
Operating income 2,140 1,923 +11.3 %
Return on net sales (as %) 20.2 20.2
Research and Development
Boehringer Ingelheim has firmly anchored
in its guiding principles (Leitbild) the mission
of helping people suffering from diseases by
researching innovative medicines. Against this
background, the worldwide deployment of
resources in research and development are of
prime importance. In the reporting period,
Boehringer Ingelheim spent EUR 1,574 million
in this business area, thereby increasing our
R&D expenditure by 15.7 % against the previous
period and again investing 14.9 % of our net sales
in our own R&D activities.
In our Human Pharmaceuticals business, R&D
expenditure as a share of net sales was 15.0 %
(2005: 14.4 %). We have distributed our global
research activities to our sites in Germany, the
USA, Austria and Canada. In addition to each
site’s focussing on certain fields of research,
numerous international project teams ensure
that necessary know-how concerning successful
project management is available. Boehringer
Ingelheim has concentrated its R&D on seven
therapeutic areas:
• respiratory diseases
• virology
• oncology
• metabolic diseases
• cardiovascular diseases
• central nervous system diseases
• immunology and inflammation
Research and development 2006 2005 2004 2003 2002
Total expenditure (in millions of EUR) 1,574 1,360 1,232 1,176 1,304
– as % of net sales 14.9 14.3 15.1 15.9 17.2
Human Pharma. expend. (in millions of EUR) 1,527 1,318 1,195 1,140 1,264
– as % of HP net sales 15.0 14.4 15.3 16.1 17.4
Average number of employees 6,003 5,678 5,471 5,362 5,205
Investments in tangible assets (in millions of EUR;
without investments in infrastructure) 125 116 97 93 97
Group Management Report 103

104
Our medications spiriva®, combivent® and
atrovent® have for many years given us a
leading position in the treatment of COPD.
spiriva®, our first blockbuster medication, is one
of the medicines that is most often prescribed for
this indication. The product, co-promoted with
Pfizer, Inc., was also launched in France in 2006
and is now available in most countries. We
assume that the clinical study uplift®, the
outcome of which we expect in 2008, will further
reaffirm the medicinal efficacy of spiriva® with
additional favourable results.
In the therapeutic area of central nervous system
diseases we have in the dopamine agonist
sifrol®/mirapex® (pramipexole) a successful
medication for the treatment of Parkinson’s
disease. In 2006, pramipexole was also given
market approval by the EU and the FDA for the
treatment of RLS. Together with Lilly, Boehringer
Ingelheim has developed the antidepressant
cymbalta® that has already been introduced in
more than 20 countries. In Germany cymbalta®
has developed into the most successful introduction
of an antidepressant.
In the area of virology Boehringer Ingelheim has
had for years, with the medication viramune®, a
successful drug in the non-nucleoside reverse
transcriptase inhibitor (NNRTI) class. The introduction
of aptivus® in 2005 complemented our
portfolio of treatments for the immune deficiency
disease AIDS. A further focus in virological
research is in the area of the hepatitis C virus.
With growth of more than 30 % in 2006,
micardis® (angiotensin II receptor blocker) is
one of the fastest growing Boehringer Ingelheim
products. The medication has developed highly
successfully since launch and is a cornerstone
Boehringer Ingelheim A n n u A l R e p o R t 2 0 0 6
of our therapy area cardiovascular diseases. We
assume that the presentation of the results of the
large-scale studies ontarget and transcend®
(together including more than 30,000 patients)
at the beginning of 2008 will show that the
spectrum for using micardis® can be further
widened substantially. The clinical study
profess®, with over 20,000 patients, to demon-
strate the efficacy of aggrenox® in secondary
stroke prevention, will be concluded in 2008.
Here too we expect an outcome that promises
success. In dabigatran we have a highly
promising substance in clinical phase III in the
therapeutic area cardiovascular diseases for the
prevention and treatment of thrombo-embolic
diseases.
In the urology area Boehringer Ingelheim
markets flomax®/alna®, a medication
in-licensed from Astellas, for the treatment
of benign prostate hyperplasia (BPH).
In the areas oncology and metabolic diseases,
newer research areas for Boehringer Ingelheim,
we have some interesting development products
in clinical phase II.
Our own previously mentioned research efforts
are complemented by strategic alliances and
in-licensing. Here we can note our exemplary
cooperation with Ablynx for researching and
developing new forms of therapy for Alzheimer’s
disease based on Nanobodies® developed by
Ablynx.
With several compounds in clinical phases II
and III, and a number of substances in the
pre-clinical phase, we will be able to ensure
the flow of new products.

Production
Production sites belonging to the Boehringer
Ingelheim group of companies produce the
company’s own pharmaceutical products within
the framework of a global network. Catchphrases
like “Business Process Excellence” and
“Customer Relation Excellence” characterise the
management culture at these sites. Compliance
and optimisation are among the main focus
areas when new products or technologies are
implemented.
Significant investments in 2006 were at the
site at Cleveland, Ohio, USA to expand our
production capacity (> EUR 50 million) and
in our LogiPack-Center (packaging facility)
at the site in Ingelheim, Germany.
With an investment volume of more than
EUR 250 million in our production plants over
the next few years we will establish the basis to
be able to meet future demands on capacity and
fulfil the ever-growing regulatory requirements
of the authorities.
In the area of chemical production we will in
the next few years invest a total of over EUR 150
million at the sites Petersburg, Virginia, USA and
Fornovo, Italy. With these plants and the existing
capacity at Ingelheim and Malgrat, Spain we will
guarantee active substance supply for
our pharmaceutical products, and with a view
to our planned launches, on a lasting basis.
At both of our biopharmaceutical production
sites, Biberach, Germany and Vienna, Austria,
capacity was expanded markedly over the past
few years. We consider ourselves very wellequipped
for the next few years, underpinned
by continued strong demand for biotechnological
capacity in which Boehringer Ingelheim is established
and recognised as a leading manufacturer.
Environmental and employee protection
The safety of employees and protection of the
environment play a central role for Boehringer
Ingelheim at all of our sites. This high priority is
also expressed by the fact that this aspect is
written down in our Leitbild. Our aim is to avoid
damaging impact on the environment and to
conserve natural resources in conducting our
activities. For us, it goes without saying that we
respect and adhere to the legal requirements in
the respective countries. Indeed, we also go
beyond the legally defined demands, where we
regard it as purposeful. Our established processes
in the field of environmental, health and safety
(EH&S) are the foundation for the successful
implementation of the basic principles of
environmental policy. Here our objective is
to scrutinise our existing procedures in a
continuous process of improvement constantly
in search of improvement potential. We ensure
consistent groupwide adherence to these
standards through environmental audits at our
sites (2006: 13 environmental audits). Within the
framework of our participation in “Responsible
Care”, the global initiative of the chemical
industry, we have also committed ourselves to its
basic principles.
The certification of our sites at Fornovo, Italy
and Yamagata, Japan, by external inspectors in
accordance with ISO 14001 confirmed our high
internal standards. In this we also see an
incentive to build on our excellent position in
these areas.
Group Management Report 105

106
Employee reporting
The sustained, positive development of our
business has led to a further expansion of the
number of our employees. Averaged over the year,
Boehringer Ingelheim in 2006 employed 38,428
people. This corresponds to growth of 3 %,
following 5 % growth in 2005.
In the reporting year, we, through a series
of programmes and events, intensified and
established as a central element of our working
culture, the Lead & Learn concept that has
been implemented since 2005. In this we see a
significant basis to further create Value through
Innovation in order to face the challenges ahead.
An important goal of our human resources work
is to recruit and retain the best people on a lasting
basis. Boehringer Ingelheim offers talented
employees various paths to personal and leadership
development in order to develop further
their abilities. We are convinced that our remuneration
schemes also put us in a very good,
competitive position. Our system of financial
rewards provides, in addition to a basic marketorientated
salary, for a variable salary element
that essentially follows company success and the
achievement of personal targets. Alongside this,
our extensive social contributions play an important
role in the overall remuneration concept.
As in previous years, Boehringer Ingelheim
in 2006 again received recognition in many
countries in conjunction with opinion polls to
find the best employers. Part of our fundamental
beliefs is not to rest on our laurels. In 2007,
we will conduct a group-wide opinion survey
among our employees. From the results of this
survey we will access further improvement
potential.
Boehringer Ingelheim A n n u A l R e p o R t 2 0 0 6
In addition, an important part of our human
resources work is our commitment to education.
In the reporting period, we offered apprenticeships
to 667 young people in Germany, thereby
raising the previous year’s level once again. In
the years before, we had already at the Biberach
and Ingelheim sites taken account of the social
challenge of creating a better work-life balance
and, in cooperation with the local communities,
promoted and supported the establishment of
day-care centres for children.
In 2006, a childcare centre with 130 places was
also built at our site at Ridgefield, Connecticut,
USA.
Social responsibility
Boehringer Ingelheim has for more than 100
years taken care of its social responsibility in a
very extensive and highly attentive manner. Our
understanding is that our responsibility applies
to our patients, our employees and their families
as well as the communities and countries in
which we operate (Good Corporate Citizenship).
Boehringer Ingelheim orientates itself after the
basic principles of “corporate governance” and
“corporate social responsibility”, as proposed
by various international organisations (United
Nations, World Health Organization, Organisation
for Economic Cooperation and Development
and the EU). These principles are employed in
our strategic deliberations, our corporate culture
and our daily business.

In the area of HIV/AIDS therapy, we have for
years considered it our duty to undertake the
special social task of making our medication
viramune® available to patients who would
otherwise receive an inadequate supply of
medicine. Through our donation programme
we support activities that clearly reduce the risk
of transmission of HIV from mother to child
during birth using an antiretroviral therapy. For
this purpose we make our AIDS medication
viramune® available free of charge. In 2006,
we in addition reduced the price for viramune®
for some developing countries and within the
framework of the Accelerating Access Initiative
(AAI) programme we offer these countries considerable
price reductions. Furthermore, we have
in the meantime granted seven manufacturing
licences that allow generic production in the
developing countries concerned.
At the same time in 2006, we sought through
numerous clinical studies with aptivus® and
viramune® to gain further insights into the
treatment and therapy of AIDS.
Another given for our social responsibility as
a company is, where possible, to encourage
and support the voluntary commitment of our
employees. Many of our employees engage
voluntarily in their free time in social projects
and make a decisive contribution where help
is called for.
Results from operations,
financial position and
net assets
Results from operations
Independent market data show that Boehringer
Ingelheim again grew faster than the overall
market in 2006. We thereby gained market share
for the seventh consecutive year. This success
was all the more remarkable, as Boehringer
Ingelheim achieved this growth essentially with
its own resources, i.e. with products from its own
research. According to current market data,
Boehringer Ingelheim ranks 15th among the
world’s largest pharmaceutical companies, with
a market share of 2 %.
Boehringer Ingelheim increased its net sales by
10.9 % in 2006 to EUR 10,574 million. Exchange
rate movements, compared to the previous period
2005, had a slightly negative impact (-1 %) on
this development. When analysing our growth, it
must be noted that changes in the consolidation
were negligible. The acquisition of the product
zantac® in the USA took place at the end of
2006 and has not yet affected our turnover
development.
Boehringer Ingelheim is divided into the businesses
Human Pharmaceuticals and Animal
Components of growth in net sales (as %) 2006 2005 2004 2003 2002
Price/quantity/new introductions 12.1 17.4 16.1 7.8 10.1
Acquisition and sale of businesses –0.3 –0.5 –0.5 –0.2 7.1
Currency effect –0.9 0 –5.1 –10.2 –4.0
Group Management Report 107

108
Health. The Human Pharmaceuticals business
encompasses the segments PM, CHC as well
as Industrial Customers. In 2006, this business
achieved net sales of EUR 10,200 million,
corresponding to growth of 11 %. The Human
Pharmaceuticals business thereby accounted
for 96 % of group net sales.
Prescription Medicines
PM is by far the most important segment in
our Human Pharmaceuticals business. In 2006,
net sales of EUR 8,311 million were achieved,
corresponding to growth of 14.7 % compared
to the previous year (2005: EUR 7,247 million).
The significance of this segment is evident in
that it accounts for 81 % of our Human Pharma-
ceuticals business.
This gratifying development was borne by our
strategic products which all showed marked
growth:
Net sales
(in millions of EUR) 2006 2005 Growth
spiriva® 1,381 951 45 %
micardis® 967 724 34 %
aggrenox® 225 172 31 %
flomax®
sifrol®/mirapex®
922
536
721
434
spiriva® continued to develop favourably and
28 %
23 %
is our fastest growing product. For the products
micardis® and aggrenox® we also expect
further growth in the next few years, supported
by the outcomes of clinical studies. In 2006,
our medication sifrol®/mirapex® was granted
market approval in the indication RLS, so we
can also expect further growth from the
extended spectrum of use in 2007. Due to the
Boehringer Ingelheim A n n u A l R e p o R t 2 0 0 6
loss of exclusivity for mobic® in the USA in 2006,
we had, as already mentioned, to take a drop in
net sales of this product exceeding EUR 250
million which will be even greater in the 2007
period.
The overwhelmingly strongest region in the
PM segment is the Americas, with a 54 % share
of group net sales. With only a very modest
foreign exchange influence, growth of 8.9 % was
achieved, discounting currency effects. Growth
of 8.5 % in the pharmaceutical market was
thereby surpassed once again. Net sales for the
region amounted to EUR 4.5 billion. As a single
market, the USA was the largest and most important
country for Boehringer Ingelheim, with an
86 % share of net sales. In the US market the
products spiriva®, micardis® and flomax®
showed very gratifying development, all achieving
double-digit growth.
In the Europe region a net sales volume of
EUR 2,180 million was achieved, giving the
region a share of 26 % in this segment. Market
growth of 3.9 % in the region was exceeded
slightly. The country in this region with the
biggest turnover was Germany, which contributed
EUR 446 million to total net sales. This
represented a 2 % decline in net sales in our
home market compared to the previous period.
Our businesses in Eastern Europe showed very
pleasing development, with many countries
achieving double-digit growth.
Exchange rate movements, particularly that of
the Japanese yen, had a negative impact on net
sales development in the AAA region. At constant
exchange rates, we grew 15 %, markedly above
the overall market that had a growth rate of

only 2 %. The region’s overall net sales reached
EUR 1,379 million, with Japan in the leading
position with a 62 % share of net sales. In 2006,
Japan’s total net sales in PM amounted to EUR
849 million.
Consumer Health Care
In the business segment CHC we increased
our net sales to EUR 1,064 million, a rise of 3 %
compared to the previous year, discounting
currency effects. We continue to pursue our
strategic orientation with a focus on defined key
brands. In 2006, we distinctly strengthened our
presence on the over-the-counter (OTC) market
in the USA by acquiring the product zantac®.
Together with our product dulcolax® we
now have a strong position there in the gastrointestinal
medications segment.
The most important product groups in this
segment in 2006 were:
Net sales
(in millions of EUR) 2006 2005 Growth
dulcolax® 122 115 6 %
mucosolvan® 108 91 19 %
pharmaton® 96 88 9 %
buscopan® 71 59 20 %
Business development was very different from
region to region. While the Americas (+ 10 %)
and Europe (+ 5 %) marked increases in net sales,
turnover in the AAA region (- 9 %) declined. The
reason for the weak development in the AAA
region was the depreciation of the Japanese yen
against the euro.
Industrial Customers
In our Industrial Customers business we have
brought together the third party business of
Pharmaceuticals Production, the Pharma
Chemicals area and our contract manufacturing
of Biopharmaceuticals. Total net sales for these
three business areas in 2006 amounted to EUR
809 million, thereby falling below the figure for
the previous year. It must be noted that the 2005
figures contained favourable, one-off effects in
Biopharmaceuticals. Contract manufacture of
biotechnologically produced medications takes
the most important place.
Animal Health
In the global markets in animal health products,
Boehringer Ingelheim is in No. 10 position, with
a market share of 3 %. Compared to the previous
year, net sales were increased in 2006 by 4 %,
despite the sale in 2005 of some non-strategic
product groups. On the basis of comparable
underlying business, growth in 2006 was 8 %
in local currency terms. Net sales amounted to
EUR 374 million.
Worldwide growth was achieved by the following
product groups in particular:
Net sales
(in millions of EUR) 2006 2005 Growth
enterisol ileitis® 22 17 29 %
vetmedin® 19 16 19 %
metacam® 75 68 10 %
Group Management Report 109

110
From a regional point of view, Europe showed
marked growth. With an increase of 10 %, net
sales reached a volume of EUR 179 million.
Development in the other two regions showed a
slight decline. In the Americas region this was
attributable to the sale of certain product groups,
while in AAA the currency effect of the Japanese
yen had a negative impact.
Expenditure and income
Total operating costs were 5.5 % higher than in
2005 and reached EUR 8,848 million. In 2005,
they amounted to EUR 8,388 million. Personnel
costs rose by 6 % in 2006 to EUR 2,836 million,
which reflects an increase in the average headcount
by 1,022 employees.
Depreciations remained at the 2005 level at
EUR 530 million. Other operating expenses rose
by EUR 425 million (+ 12 %). Overall, operating
income increased by EUR 217 million compared
to 2005 and now amounts to EUR 2,140 million.
The return on net sales was maintained at the
2005 level of 20 %.
The financial income in the reporting period
amounted to EUR 102 million and was
significantly affected by the sale of a number
of financial assets. Borne by increase in income
from operations, income before taxes rose to
EUR 2,243 million and was thereby EUR 355
million, or 19 %, distinctly higher than in 2005.
Tax expenses amounted to EUR 514 million,
corresponding to a tax ratio of 23 % (2005: 20 %).
Here, it must be taken into consideration that due
to regulations of the German commercial code,
personal taxes on group activities levied on the
Boehringer Ingelheim A n n u A l R e p o R t 2 0 0 6
shareholders may not be shown as tax expenses.
These are presented as withdrawals from accu-
mulated group equity.
Taking this extraordinary effect into considera-
tion, the actual tax ratio is markedly higher than
the value shown in the profit and loss statement.
To sum up, net income rose to EUR 1,722 million.
This signifies a EUR 231 million increase
compared to 2005.
Financial position
Boehringer Ingelheim’s financial management
instruments and methods are aligned with
international standards for a modern
industrial company. The goal of the financial
management is to support the business strategy
of our company by providing or investing financial
assets, taking account of the foreign
exchange risk.
As a result of Boehringer Ingelheim’s international
orientation, exchange rate fluctuations
have a considerable impact on the measure of
the company’s success. Here, the exchange rate
development of the US dollar represents the
highest single risk. Within the framework of
group-wide financial reporting, foreign exchange
risk is regularly investigated and analysed. To
secure against this risk, particularly from goods
and services, derivative financial instruments are
employed. The manner and extent of these
measures are regulated by the relevant group
guideline.
Boehringer Ingelheim’s good economic development
in 2006 is also reflected in the development

of the cash flow, which rose by EUR 248 million
compared to 2005 to EUR 2,317 million (+ 12 %).
The cash flow from operating activities is EUR
1,500 million, clearly exceeding funds used for
investment activities. In 2006, we increased
our investment efforts again (+ EUR 64 million)
and entered an investment volume of EUR 596
million in tangible assets. There was an addition
of EUR 451 million to the intangible assets,
essentially due to the acquisition of the product
zantac® in the USA. Securities and liquid funds
stood at EUR 3,934 million at year-end.
To summarise, it can be noted that, because
of existing liquidity, the given capital structure
and the available funding potential, the financial
preconditions for successfully realising our
strategy remain in place.
In Germany the new galenics building in
Biberach and the new packaging facility
(LogiPack-Center) in Ingelheim were completed.
Furthermore, a number of new investment
projects were started in Germany. Particularly
noteworthy are the expansion of our production
plants at the Dortmund site (BI microParts),
the new chemical laboratory and a new works
canteen in Ingelheim. In Biberach additional
investments in the biotechnical active ingredient
production facilities were started.
In Italy we laid the foundation stone for a new
chemical synthesis facility at the Fornovo site.
In addition, we have commenced activities
for building a new synthesis plant in Petersburg,
Virginia, USA. It was also decided to expand
production capacity at the Ben Venue site in
Cleveland, Ohio. In the USA construction was
also started at the site at Ridgefield, Connecticut
on a laboratory building in order to increase
our research capacity.
Net assets
Total assets in 2006 stood at EUR 11,845 million,
the same level as in the previous year. Tangible
and intangible assets are covered by Boehringer
Ingelheim’s total equity.
By actively managing the days of sales outstand-
ing of our receivables, we achieved an increase of
the receivables, discounting currency effects, that
was disproportionately small relative to the
expansion of our business.
Due to the transfer of liquid funds into the
financial assets, liquid assets declined, compared
to the previous year, to EUR 866 million (2005:
EUR 1,167 million).
Group equity increased compared to the
previous year to EUR 5,363 million (2005:
EUR 4,825 million) because of the favourable
business development. Long-term disposable
capital (equity, pension provisions and long-term
liabilities) amounted to EUR 7,450 million,
corresponding to 63 % of the balance sheet total.
This year again, this item covers all the intangi-
ble and tangible assets, inventories and liabilities
as well as almost half the liquid assets.
The balance sheet and the related balance sheet
ratios round off the altogether favourable picture
that the earnings and financial position have
already drawn.
The combined evaluation of the net assets,
financial position and results of operations
shows that Boehringer Ingelheim is a soundly
financed and profitable company. In 2006, we
created a firm basis for our further business
development.
Group Management Report 111

112
Report on post-balance
sheet date events
Since the end of the financial year 2006, we
have not become aware of any events that are of
material significance to the group of companies,
or could lead to a reappraisal of its asset, financial
or earnings position.
Risk report
The Boehringer Ingelheim group’s risk management
system has proved effective over recent
years and the concept was unchanged in the
reported period.
With the participation of the country organisations,
and the inclusion of various function
holders, business-specific risks are systematically
reported and monitored.
Our strategy and planning processes, which
focus over several years, also form a significant
element of our active risk management. Hereby,
we ensure that all risks known to us are reported,
thoroughly analysed and evaluated. Following
the appropriate classification, counter-measures
are commenced and their implementation
consistently monitored.
Boehringer Ingelheim A n n u A l R e p o R t 2 0 0 6
Within the framework of the audit plan approved
by the Board of Managing Directors, internal
auditing conducted routine and extraordinary
audits worldwide during the reporting year.
The focus was the efficiency of structures and
processes, securing assets, adherence to legal
requirements and guidelines, the functionality
of systems and the effectiveness of internal
controls.
Currency and interest rate risks, which arise
because of our group’s international business
relationships, are constantly examined and
limited by appropriate hedging strategies. From
the portfolio of receivables and liabilities on
trade accounts no risk arose for the Boehringer
Ingelheim group which exceeds the industry
norm. This equally applies to the default risks
that are mainly secured against economic and
political uncertainties.
Risks in the area of environmental health and
safety are minimised preventively by adherence
to our own very high safety standards. For
possible incidents appropriate emergency plans
are in place that are regularly tested and trained.
Furthermore, Boehringer Ingelheim has
risk-adjusted insurance coverage.
In addition to the general business risks associated
with the industry, we are not currently
aware of any risks that substantially threaten the
further development of Boehringer Ingelheim’s
business.

Report on expected
developments
The good results of the financial year 2006
confirmed our internal planning parameters.
Our businesses and functions have, within the
framework of our planning processes, in the
reporting period adapted their multi-year
planning on the basis of current development.
The insights gained from this essentially
confirm our strategic parameters and targets.
For our key brands spiriva®, micardis®,
flomax® and sifrol® we foresee further
growth potential in 2007. For spiriva® and
micardis® we expect positive outcomes in
the next two years from various clinical studies,
such as uplift® (spiriva®) and ontarget and
transcend® (both micardis®). For the product
flomax® we anticipate further market growth in
the relevant indication, especially in the important
US market, from which our product will
benefit. The market approval received from the
European authorities and the FDA in 2006
for our product sifrol® in the indication RLS
will further reinforce the development of this
product. We expect the results in 2008 of the
profess® study on micardis® and aggrenox®,
a medication to prevent the risk of secondary
stroke.
The spiriva® respimat® Soft Mist Inhaler
(SMI) was filed for registration with the Euro-
pean authorities in 2006. For 2007, it is planned
to put together the documentation for filing
with the US authorities. Studies confirm that
the SMI is preferred by our patients compared
to other dosage forms. This gas propellant-free
mist generation achieves improved uptake of
the active ingredient via the lungs.
At the beginning of 2006, we began
re-volution®, the largest clinical study
programme to date in thrombo-embolic diseases,
in which 27,000 patients worldwide will take
part. It will investigate dabigatran, a novel, orally
available thrombin inhibitor researched and
developed by Boehringer Ingelheim for the
prevention and treatment of thrombo-embolic
conditions.
Other important development projects are in
phases II and III. For flibanserin a number of
phase III studies were commenced in 2006.
Flibanserin is a novel treatment approach for the
treatment of hypoactive sexual desire disorder
(HSDD). In the oncology area, one of our newer
fields of research, we have developed some promising
approaches in cancer therapy. Several
clinical phase II studies were initiated in 2006.
We expect their outcomes in 2007.
Group Management Report 113

114
For the financial year 2007, we assume turnover
growth in single figures. One reason for this is
the loss of exclusivity for our product mobic®
in the USA in 2006. For this product alone we
estimate that we will have a decline in net sales
of more than EUR 350 million in 2007. The fact
that we, in spite of everything, expect growth in
net sales exceeding 5 %, is testimony to the
strength and balance of our portfolio.
On the basis of current planning, we expect net
sales of more than EUR 11 billion in 2007. For
2008, we plan to exceed the EUR 12 billion mark
for the first time.
With approximately EUR 700 million we will
again increase our investment expenditure
in 2007 compared to the previous year. Our
investments will be concentrated in the areas of
production and research. Major projects in the
chemicals area to ensure that we can meet future
active ingredient demand were approved with a
total investment volume of more than EUR 160
million. In the research area projects for modernising
and expanding our capacity at our German
and US sites have been decided. With these
investments we will establish the necessary
preconditions to also be able to conduct
Boehringer Ingelheim A n n u A l R e p o R t 2 0 0 6
innovative research long term and thereby be
able to guarantee the necessary flow of new
products in the future.
Although further concentration occurred in the
pharmaceutical industry in 2006, especially in
the German market, our declared goal remains
to manage Boehringer Ingelheim long term as
an independent, family-owned company. Our
endeavour in this context is to achieve aboveaverage
growth in the market that will deliver
a corresponding increase in the value of the
company. To this end, we will also continue to
keep a close eye on the profitability of our group.
With the success of the year 2006 we were able
to link up with the very good figures of the
previous year and further improve our turnover
and net income. This confirms our strategic
orientation and gives us confidence that we can
reach our demanding goals in the future too. We
will continue to take every measure in order for
Boehringer Ingelheim to be able to successfully
develop further. We consider this a duty towards
all stakeholders, primarily towards all patients
for whom we wish to make effective and safe
medicines available in the future.

Consolidated
Financial Statements 2006

Overview of the major consolidated companies
Germany
Boehringer Ingelheim
Pharma GmbH & Co. KG,
Ingelheim
Boehringer Ingelheim
Vetmedica GmbH, Ingelheim
*sole general partner:
Boehringer AG
116
Boehringer Ingelheim GmbH Boehringer Ingelheim
Europe GmbH
Distribution
Production
Research
Finland
Boehringer Ingelheim
Finland Ky, Espoo
Norway
Boehringer Ingelheim
Norway KS, Asker
Boehringer Ingelheim a n n u a l r e p o r t 2 0 0 6
C. H. Boehringer Sohn*
Boehringer Ingelheim
International GmbH
Austria
Forschungsinstitut für Molekulare
Pathologie Gesellschaft mbH,
Vienna
Belgium
SCS Boehringer Ingelheim
Comm. V., Brussels
China
Boehringer Ingelheim
International Trading (Shanghai)
Co. Ltd., Shanghai
Boehringer Ingelheim Shanghai
Pharmaceuticals Co. Ltd.,
Shanghai
Philippines
Boehringer Ingelheim (Phil.) Inc.,
Manila
South Korea
Boehringer Ingelheim Korea Ltd.,
Seoul (50 %)
Boehringer Ingelheim Vetmedica
Korea Ltd., Seoul
Argentina
Boehringer Ingelheim S.A.,
Buenos Aires
Australia
Boehringer Ingelheim Pty. Ltd.,
North Ryde
Austria
Boehringer Ingelheim Austria
GmbH, Vienna
Boehringer Ingelheim
Pharma Ges.m.b.H., Vienna
Brazil
Boehringer Ingelheim do Brasil
Quimica e Farmaceutica Ltda.,
São Paulo
Solana Agro Pecuaria Ltda.,
Arapongas
Canada
Boehringer Ingelheim (Canada)
Ltd., Burlington
Chile
Boehringer Ingelheim Ltda.,
Santiago de Chile
Colombia
Boehringer Ingelheim S.A., Bogotá
Czech Republic
Boehringer Ingelheim s.r.o.,
Prague
Denmark
Boehringer Ingelheim Danmark
A/S, Copenhagen
Ecuador
Boehringer Ingelheim del Ecuador
Cia. Ltda., Quito

C. H. Boehringer Sohn Grundstücksverwaltung GmbH & Co. KG
Boehringer Ingelheim
Auslandsbeteiligungs GmbH
France
Boehringer Ingelheim
France S.A.S., Paris
Labso Chimie Fine S.A.R.L.,
Blanquefort
Greece
Boehringer Ingelheim Ellas AE,
Athens
Indonesia
PT Boehringer Ingelheim
Indonesia, Jakarta
Italy
Boehringer Ingelheim Italia S.p.A.,
Reggello
Bidachem S.p.A.,
Fornovo S. Giovanni
Istituto De Angeli srl,
Reggello
Japan
Nippon Boehringer Ingelheim
Co. Ltd., Kawanishi
SSP Co. Ltd., Tokio (57 %)
Boehringer Ingelheim
Vetmedica Japan Co. Ltd.,
Kawanishi
Boehringer Ingelheim
Seiyaku Co., Ltd., Yamagata
Netherlands
Boehringer Ingelheim B. V.,
Alkmaar
Poland
Boehringer Ingelheim Sp.zo.o.,
Warsaw
Portugal
Boehringer Ingelheim Lda.,
Lisbon
Unilfarma Lda., Lisbon
South Africa
Boehringer Ingelheim (Pty.) Ltd.,
Randburg
Ingelheim Pharmaceuticals (Pty.)
Ltd., Randburg
Spain
Boehringer Ingelheim España S.A.,
Barcelona
Boehringer Ingelheim S.A.,
Barcelona
Europharma S.A., Barcelona
Laboratorios Fher S.A., Barcelona
Sweden
Boehringer Ingelheim AB,
Stockholm
Switzerland
Boehringer Ingelheim
(Schweiz) GmbH, Basel
Pharmaton S.A., Lugano
Taiwan
Boehringer Ingelheim Taiwan Ltd.,
Taipei
Thailand
Boehringer Ingelheim (Thai) Ltd.,
Bangkok
Turkey
Boehringer Ingelheim Ilac
Ticaret A.S., Istanbul
United Kingdom
Boehringer Ingelheim Ltd.,
Bracknell
Venezuela
Boehringer Ingelheim C.A.,
Caracas
Pharma Investment Ltd.,
Burlington, Canada
USA
Boehringer Ingelheim Corp.,
Ridgefield, Connecticut
Boehringer Ingelheim
Pharmaceuticals, Inc.,
Ridgefield, Connecticut
Ben Venue Laboratories, Inc.,
Bedford, Ohio
Roxane Laboratories, Inc.,
Columbus, Ohio
Boehringer Ingelheim
Vetmedica, Inc.,
St. Joseph, Missouri
Boehringer Ingelheim
Roxane, Inc., Columbus, Ohio
Boehringer Ingelheim
Chemicals, Inc.,
Petersburg, Virginia
Boehringer Ingelheim
Investment Ltd.,
Burlington, Canada
Mexico
Boehringer Ingelheim
Promeco S.A. de C.V., Mexico City
Boehringer Ingelheim Vetmedica
S.A. de C.V., Guadalajara
Overview of the major consolidated companies
117

118
C. H. Boehringer Sohn, Ingelheim
Consolidated balance sheet
Assets (in millions of EUR) Notes 1) 31.12.2006 31.12.2005
Intangible assets (3.1) 554 233
Tangible assets (3.2) 2,886 2,900
Financial assets (3.3) 3,043 3,396
Fixed assets 6,483 6,529
Inventories (3.4) 1,280 1,229
Accounts receivable (3.5) 2,333 2,143
Securities 79 80
Cash and cash equivalents 866 1,167
Current assets 4,558 4,619
Deferred taxes 746 821
Deferred charges and prepaid expenses 58 49
Total assets 11,845 12,018
Liabilities and equity (in millions of EUR) Notes 1) 31.12.2006 31.12.2005
Shareholders’ capital 178 178
Group reserves 3,415 3,001
Balance sheet currency conversion difference -140 -61
Net income 1,722 1,491
Equity 5,175 4,609
Minority interests 188 216
Group equity 5,363 4,825
Provisions (3.6) 4,459 4,754
Accounts payable (3.7) 1,774 2,174
Liabilities 6,233 6,928
Deferred taxes 182 204
Deferred charges 67 61
Total liabilities and equity 11,845 12,018
1) For explanation, see relevant section in the Notes to the Consolidated Financial Statements.
Boehringer Ingelheim a n n u a l r e p o r t 2 0 0 6

C. H. Boehringer Sohn, Ingelheim
Consolidated profit and loss statement
(in millions of EUR) Notes 1) 2006 2005
Net sales (4.1) 10,574 9,535
Changes in inventories 40 175
Other internal work performed and capitalised 4 3
Other operating income 370 598
Total revenues 10,988 10,311
Material costs (4.2) -1,484 -1,613
Personnel costs (4.3) -2,836 -2,671
Amortisation of intangible and depreciation of tangible assets (4.4) -530 -531
Other operating expenses (4.5) -3,998 -3,573
Operating income 2,140 1,923
Financial income (4.6) 102 -35
Holding income (4.7) 1 0
Income before taxes 2,243 1,888
Taxes 2) (4.8) -514 -374
Income after taxes 1,729 1,514
Third-party share -7 -23
Net income (4.9) 1,722 1,491
1) For explanation, see relevant section in the Notes to the Consolidated Financial Statements.
2) Due to legal requirements the disclosure of the shareholders’ personal taxes arising from
consolidated business activities as tax expenses is not allowed. These taxes are shown as
withdrawals from the accrued group capital.
Consolidated balance sheet / Consolidated profit and loss statement
119

120
C. H. Boehringer Sohn, Ingelheim
Cash flow statement
(in millions of EUR) 2006 2005
Income after taxes 1,729 1,514
Write-downs/write-ups on fixed assets 1) 527 529
Change in provisions for pensions 61 26
Cash flow 2,317 2,069
Change in other provisions -184 561
Other non-cash income and expenses -5 43
Gain on disposals of fixed assets -30 -4
Increase of inventories -99 -90
Increase of accounts receivable and other assets not related to
investing or financing activities -302 -385
Decrease/increase of trade accounts payable and other liabilities
not related to investing or financing activities -197 196
Cash flow from operating activities 1,500 2,390
Investments in intangible assets -451 -57
Investments in property, plant and equipment -596 -532
Investments in non-current financial assets 1) -11 -6
Proceeds from disposals of intangible assets 2 2
Proceeds from disposals of property, plant and equipment 92 43
Proceeds from disposals of non-current financial assets 1) 13 21
Cash flow from investing activities –951 –529
Cash payments to shareholders and minority shareholders -1,088 -1,360
Cash proceeds from borrowings/repayments of loans -96 26
Cash flow from financing activities –1,184 –1,334
Change in liquid funds from cash relevant transactions -635 527
Changes in liquid funds due to changes in scope of consolidation 0 0
Changes in liquid funds due to exchange rate movements -16 43
Securities and liquid funds 2) as of 1. 1. 4,585 4,015
Securities and liquid funds 2) as of 31. 12. 3,934 4,585
1) excl. fixed-asset securities
2) liquid funds, securities within fixed and current assets
(+) = source of funds, (–) = use of funds
Boehringer Ingelheim a n n u a l r e p o r t 2 0 0 6

C. H. Boehringer Sohn, Ingelheim
Statement of changes in group equity
(in millions of EUR)
Shareholders’
capital 1)
Accrued
group
capital
thereof
currency
effects
Group Equity
Equity
Minority
interests
thereof
currency
effects
Balance as of 31. 12. 2004 178 4,185 –168 4,363 193 –29 4,556
Contributions 0 0 0 0 0 0 0
Withdrawals 0 –1,352 0 –1,352 0 0 –1,352
Net income 0 1,491 0 1,491 23 0 1,514
Change of scope of consolidation 0 0 0 0 7 0 7
Other changes 0 107 107 107 –7 2 100
Balance as of 31. 12. 2005 178 4,431 –61 4,609 216 –27 4,825
Contributions 0 0 0 0 0 0 0
Withdrawals 0 -1,077 0 -1,077 0 0 -1,077
Net income 0 1,722 0 1,722 7 0 1,729
Change of scope of consolidation 0 0 0 0 0 0 0
Other changes 0 -79 -79 -79 -35 -24 -114
Balance as of 31. 12. 2006 178 4,997 -140 5,175 188 -51 5,363
1) The shareholders’ capital consists of the equity of C. H. Boehringer Sohn and C. H. Boehringer Sohn Grundstücksverwaltung
GmbH & Co. KG. It consists only of capital of the limited partners. The shareholders’ personal taxes arising from consolidated
business activities are shown as withdrawals from the accrued group capital.
Cash flow statement / Statement of changes in group equity
Group
equity
121

122
C. H. Boehringer Sohn, Ingelheim
Notes to the consolidated financial statements 2006
1 Principles and methods
1.1 General principles
The consolidated financial statements of Boehringer Ingelheim for the fiscal year 2006 have been
prepared pursuant to section 264a German Commercial Code (HGB) by applying the group accounting
regulations of section 290 to 314 HGB.
In accordance with section 297, paragraph 1 HGB, the consolidated financial statements are composed
of the consolidated balance sheet, the consolidated profit and loss statement, notes to the consolidated
financial statements, the consolidated cash flow statement and the statement on changes in equity.
1.2 Companies included in the consolidation
The ultimate parent of Boehringer Ingelheim is C. H. Boehringer Sohn. Boehringer AG is the sole
unlimited managing partner of this company.
Besides C. H. Boehringer Sohn there is C. H. Boehringer Sohn Grundstücksverwaltung GmbH &
Co. KG whose unlimited partner is under the unified management of C. H. Boehringer Sohn.
The Boehringer Ingelheim Group of companies consists of 137 affiliated companies in and outside
Germany. In addition to C. H. Boehringer Sohn and C. H. Boehringer Sohn Grundstücksverwaltung
GmbH & Co. KG, a further 104 companies in which C. H. Boehringer Sohn holds directly or indirectly
the majority of voting shares are included in the consolidated financial statements.
29 companies were not consolidated in the reporting year, as the net assets, financial position and
results of operations of these companies were insignificant to Boehringer Ingelheim. Combined they
represent less than 1 % of the Group’s net sales, equity and net profit.
A further two companies are subject to bylaws containing enduring restrictions.
Compared to the previous year, the total number of affiliated companies was reduced by six:
• five companies were closed down,
• a further three companies were dissolved due to mergers and
• two companies were established
A separate statement of interests held by Boehringer Ingelheim will be submitted to the authority
operating the German Federal Gazette in order to place it in the Register of Companies.
Boehringer Ingelheim a n n u a l r e p o r t 2 0 0 6

The following subsidiaries were exempted from the reporting and disclosure obligations in accordance
with section 264, paragraph 4 HGB in conjunction with section 264, paragraph 3 HGB:
• Boehringer Ingelheim GmbH, Ingelheim
• Boehringer Ingelheim International GmbH, Ingelheim
• Dr. Karl Thomae GmbH, Biberach
• Boehringer Ingelheim Europe GmbH, Ingelheim
• Boehringer Ingelheim Vetmedica GmbH, Ingelheim
• Boehringer Ingelheim Secura Versicherungsvermittlungs GmbH, Ingelheim
• Boehringer Ingelheim Grundstücks-GmbH, Ingelheim
• Boehringer Ingelheim Finanzierungs GmbH, Ingelheim
Exempted from reporting and disclose obligations of annual financial statements according to HGB
regulations for joint stock companies under section 264b HGB are:
• C. H. Boehringer Sohn, Ingelheim
• C. H. Boehringer Sohn Grundstücksverwaltung GmbH & Co. KG, Ingelheim
• Boehringer Ingelheim Pharma GmbH & Co. KG, Ingelheim
1.3 Consolidation methods
For inventories, accounts receivable and payable, and the income and expense items, business
transactions between the companies consolidated were eliminated as part of the debt consolidation,
according to section 303 HGB, the elimination of inter-company profits according to section 304 HGB,
and the income and expense consolidation according to section 305 HGB.
The purchase method of accounting was used for the capital consolidation of those subsidiaries that
were included for the first time in the consolidated financial statements. First-time consolidation takes
place at the time of the respective company becoming a subsidiary.
The goodwill of two major companies wholly acquired in 1997 was amortized according to plan over
10 years (last portion in 2006).
Credit balances from capital consolidation primarily represent retained earnings during group
membership; they therefore have the characteristics of equity and are included in group reserves.
Notes to the consolidated financial statements 2006 123

124
1.4 Currency conversions
The financial statements prepared in foreign currencies were translated into euros, the functional
currency of the group parent company, C. H. Boehringer Sohn, according to the year-end method.
All assets and liabilities have been converted at the year-end rate. The profit and loss statement and,
consequently, net income, were converted at the average annual rate for the reporting year.
Translation differences due to the conversion of foreign currencies are shown as a balancing item in
the equity without impact on income.
The functional currency of subsidiaries is the respective local currency. Annual financial statements in
high inflation countries are in principle drawn up in accordance with German Accounting Standard
14 (GAS 14); in the financial year 2006, no group company was affected by the high inflation
accounting. All positions in individual financial statements drawn up in prior years in hard currencies
(in US dollars or euros), were translated into the new functional currency on 1 January 2006 at the
respective spot rate.
The most important currencies for Boehringer Ingelheim reflect the following changes in the reporting
year (base 1 euro):
year-end rate average annual rate
31.12.2006 31.12.2005 2006 2005
US dollar 1.32 1.18 1.26 1.24
Japanese yen 156.93 139.90 146.06 136.87
Pound sterling 0.67 0.69 0.68 0.68
Canadian dollar 1.53 1.37 1.42 1.51
Boehringer Ingelheim a n n u a l r e p o r t 2 0 0 6

2 Accounting and evaluation methods
2.1 Fixed assets
Intangible and tangible assets are shown at purchase or manufacturing cost, net of regular straightline
depreciation, according to the technical and economic situation. The following periods of use
were applied:
Buildings 20 years
Technical facilities and machinery 10 years
Other facilities, operating and business equipment 3 to 10 years
Diverging from the declining-balance method of depreciation applied in the individual financial
statements of C. H. Boehringer Sohn the straight-line method of depreciation is used in the consolidated
financial statements for the purpose of uniformity in group-wide measurement. Anticipated
long-term losses in the value of investments were accounted for by unscheduled write-offs. Cost
of direct material and production as well as appropriate portions of material and production overheads
were taken into consideration for the determination of manufacturing costs. Fully amortised
goodwill that is more than five years old, or is materially insignificant, is shown under disposals.
All capitalised intangible assets have a limited useful life.
The financial assets were valued at the lower of either purchase cost, present value or fair market
value.
2.2 Current assets
Inventories are valued at purchase or manufacturing cost using the weighted average cost flow
method as the group-wide uniform method of measurement, whereas C. H. Boehringer Sohn applies
the LIFO Method in its individual financial statements. Appropriate portions of material and
production overheads were taken into consideration for the determination of the manufacturing
costs. Necessary reductions were made for inventory risks.
Accounts receivable were stated at their nominal value net of any individual valuation allowances
required. The general credit risk was covered by a general valuation allowance for bad debt.
Other assets were stated at the lower of either purchase cost or fair market value.
Foreign currency items were recorded at the year-end rate of exchange.
Notes to the consolidated financial statements 2006 125

126
2.3 Group reserves
Group reserves include the retained earnings of the consolidated subsidiaries from prior years,
consolidation entries that affect earnings and credit balances arising from capital consolidation,
where they respectively relate to prior years.
2.4 Provisions
The provisions include amounts necessary to cover any perceptible obligations and risks, including
provisions for contingent losses from pending contracts. The valuation is made on the basis of
reasonable commercial judgement. Provisions with an implied interest are shown on a discounted
basis (e. g. certain personnel provisions).
2.5 Liabilities
Liabilities are shown in the balance sheet at the repayable amount. Liabilities in foreign currencies
were recorded at the year-end rate of exchange.
2.6 Deferred taxes
The deferred tax assets and liabilities represent the tax deferral in accordance with section 274
and 306 HGB, which arise because of temporary differences between the tax balance sheets of
the individual companies and the consolidated balance sheet (including differences arising from
adjustments for conformity in group-wide reporting and evaluation as well as consolidation
measures). Quasi-permanent differences between the consolidated balance sheet and the tax
balance sheet are treated as temporary differences in accordance with German Accounting Standard
10 (GAS 10). Deferred tax assets and liabilities are offset in accordance with GAS 10.
In the individual balance sheets (i.e. the financial statements II) the consolidated companies made
use of their option to capitalise assets to the amount of probable tax relief in the following years in
accordance with section 274, paragraph 2 HGB. The calculation of deferred taxes is based on the
tax rates that are expected to be valid at the time of their realisation.
The capitalisation of deferred tax assets on tax loss carry-forwards is carried out if it is sufficiently
probable that the tax benefits can be realised.
Boehringer Ingelheim a n n u a l r e p o r t 2 0 0 6

3 Notes to the consolidated balance sheet
3.1 Intangible assets
(in millions of EUR)
Procurement/manufacturing costs
Concessions/
Similar rights
Goodwill Advance
payments
Balance as of 1. 1. 2005
526 816 3 1,345
Currency conversion difference 11 3 0 14
Additions due to first consolidation 0 0 0 0
Additions 50 0 7 57
Disposals -18 -13 0 -31
Reclassifications 4 0 -4 0
Balance as of 31. 12. 2005 573 806 6 1,385
Currency conversion difference -30 0 0 -30
Additions due to first consolidation 0 0 0 0
Additions 443 0 8 451
Disposals -18 0 0 -18
Reclassifications 7 0 -3 4
Balance as of 31. 12. 2006 975 806 11 1,792
Accumulated depreciations
Balance as of 1. 1. 2005 357
721
0 1,078
Currency conversion difference 9 2 0 11
Additions due to first consolidation 0 0 0 0
Additions 44 48 0 92
Write-ups 0 0 0 0
Disposals -16 -13 0 -29
Reclassifications 0 0 0 0
Balance as of 31. 12. 2005 394 758 0 1,152
Currency conversion difference -10 0 0 -10
Additions due to first consolidation 0 0 0 0
Additions 63 48 0 111
Write-ups 0 0 0 0
Disposals -15 0 0 -15
Reclassifications 0 0 0 0
Balance as of 31. 12. 2006 432 806 0 1,238
Book value as of 31. 12. 2005 179 48 6 233
Book value as of 31. 12. 2006 543 0 11 554
Total
Notes to the consolidated financial statements 2006 127

128
3.2 Tangible assets
(in millions of EUR)
Procurement/manufacturing costs
Land and
buildings
Technical
facilities and
machines
Other
facilities/
operating
equipment
Advance
payments/
construction
in progress
Balance as of 1. 1. 2005 2,022 1,982 1,312 270 5,586
Currency conversion difference 96 82 61 15 254
Additions due to first consolidation 3 2 2 0 7
Additions 37 77 140 278 532
Disposals -31 -42 -89 -8 -170
Reclassifications 56 98 49 -203 0
Balance as of 31. 12. 2005 2,183 2,199 1,475 352 6,209
Currency conversion difference -115 -81 -56 -17 -269
Additions due to first consolidation 0 0 0 0 0
Additions 54 70 164 308 596
Disposals -78 -57 -82 -2 -219
Reclassifications 66 107 89 -266 -4
Balance as of 31. 12. 2006 2,110 2,238 1,590 375 6,313
Accumulated depreciations
Balance as of 1. 1. 2005 933 1,030 911 0 2,874
Currency conversion difference 42 43 40 0 125
Additions due to first consolidation 2 1 2 0 5
Additions 125 163 151 0 439
Write-ups 0 -2 0 0 -2
Disposals -13 -37 -82 0 -132
Reclassifications 0 0 0 0 0
Balance as of 31. 12. 2005 1,089 1,198 1,022 0 3,309
Currency conversion difference -58 -45 -38 0 -141
Additions due to first consolidation 0 0 0 0 0
Additions 83 172 164 0 419
Write-ups -1 -1 -1 0 -3
Disposals -36 -48 -73 0 -157
Reclassifications -1 1 0 0 0
Balance as of 31. 12. 2006 1,076 1,277 1,074 0 3,427
Book value as of 31. 12. 2005 1,094 1,001 453 352 2,900
Book value as of 31. 12. 2006 1,034 961 516 375 2,886
Boehringer Ingelheim a n n u a l r e p o r t 2 0 0 6
Total

3.3 Financial assets
(in millions of EUR)
Procurement/manufacturing costs
Investments
in affilated
companies
Loans
to affiliated
companies
Investments
in related
companies
Loans to
related
companies
Investment
securities
Other loans
Balance as of 1. 1. 2005 21 8 10 6 2,686 41 2,772
Currency conversion difference 0 0 0 0 3 0 3
Additions due to first consolidation 0 0 0 0 0 0 0
Additions 0 1 0 0 674 5 680
Disposals -1 0 0 0 -7 -21 -29
Reclassifications 0 0 0 0 0 0 0
Balance as of 31. 12. 2005 20 9 10 6 3,356 25 3,426
Currency conversion difference -2 -1 -1 0 -9 0 -13
Additions due to first consolidation 0 0 0 0 0 0 0
Additions 0 0 7 0 603 4 614
Disposals 0 0 -6 0 -911 -6 -923
Reclassifications 0 0 0 0 0 0 0
Balance as of 31. 12. 2006 18 8 10 6 3,039 23 3,104
Accumulated depreciations
Balance as of 1. 1. 2005 3 0 3 3 4 3 16
Currency conversion difference 0 0 0 0 0 0 0
Additions due to first consolidation 0 0 0 0 0 0 0
Additions 0 0 0 0 14 0 14
Write-ups 0 0 0 0 0 0 0
Disposals 0 0 0 0 0 0 0
Reclassifications 0 0 0 0 0 0 0
Balance as of 31. 12. 2005 3 0 3 3 18 3 30
Currency conversion difference 0 0 -1 0 0 0 -1
Additions due to first consolidation 0 0 0 0 0 0 0
Additions 0 0 0 0 38 0 38
Write-ups 0 0 0 0 -1 0 -1
Disposals 0 0 0 0 -5 0 -5
Reclassifications 0 0 0 0 0 0 0
Balance as of 31. 12. 2006 3 0 2 3 50 3 61
Book value as of 31. 12. 2005 17 9 7 3 3,338 22 3,396
Book value as of 31. 12. 2006 15 8 8 3 2,989 20 3,043
As in the previous year, the item “other loans” includes no loans to the shareholders.
Total
Notes to the consolidated financial statements 2006 129

130
3.4 Inventories
(in millions of EUR) 31.12.2006 31.12.2005
Raw materials and supplies 224 225
Unfinished products 549 537
Finished products and goods for resale 201 460
Advance payments to suppliers 6 7
3.5 Accounts receivable
1,280 1,229
Residual term
Residual term
(in millions of EUR) 31.12.2006 over 1 year 31.12.2005 over 1 year
Trade accounts receivable 1,937 2 1,854 71
Receivables from affiliated companies 7 0 2 0
Receivables from related companies 6 0 5 0
Other assets 383 19 282 12
2,333 21 2,143 83
The item “other assets” contains receivables from the shareholders amounting to EUR 64 million
(2005: EUR 0 million).
3.6 Provisions
(in millions of EUR) 31.12.2006 31.12.2005
Pension provisions 2,062 2,035
Tax provisions 382 548
Other provisions 2,015 2,171
Boehringer Ingelheim a n n u a l r e p o r t 2 0 0 6
4,459 4,754

Pension provisions
Boehringer Ingelheim’s pension schemes are based on various defined contribution plans as well as
defined benefit plans.
Pension obligations arising from direct or indirect defined benefit plans are determined on the basis of
the projected unit credit method, taking future salary and pension increases into consideration.
The actuarial calculation of the pension obligation from defined benefit plans is based on country-
specific biometric data (e. g. in Germany the “generation tables” issued in 2005 by Professor Klaus
Heubeck) and actuarial assumptions. The main countries applied the following parameters:
Germany USA Japan
Parameter (in %) 2006 2005 2006 2005 2006 2005
Discount rate 4.5 4.1 5.8 5.5 1.5 1.5
Expected return on plan assets 6.0 6.0 8.0 8.0 2.2-3.0 2.2–3.0
Salary increase 3.5 2.5 5.5 5.5 2.4-3.0 2.4–4.7
Pension increase 1.7 1.7 3.0 3.0 0.0 0.0
At the balance sheet date, the present value of the expected pension obligation was netted with the fair
value of the respective pension plan assets (funded status).
Based on this, pension provisions are determined by deducting unrealised transition amounts as well
as unrealised actuarial gains and losses from the funded status. Based on the “corridor approach”,
unrealised gains and losses are amortised over the expected average service periods of the respective
active employees. At balance sheet date, pension commitments (including total unrealised transition
amounts and actuarial gains and losses) of EUR 498 million (2005: EUR 698 million) were not recognised
as part of pension provisions.
In conjunction with defined contribution plans, group companies paid contributions to state or
private insurers on the basis of legal or contractual regulations. On payment of the contributions the
companies no longer have any performance obligations. Contributions are recognised as personnel
costs.
Notes to the consolidated financial statements 2006 131

132
3.7 Accounts payable
Residual term Residual term Residual term
Residual term
(in millions of EUR) less than 1 year 1–5 years over 5 years 31.12.2006 31.12.2005 less than 1 year
Bank loans 225 116 25 366 480 216
Other accounts payable 1,280 128 – 1,408 1,694 1,549
of which:
– Trade accounts payable 696 – – 696 775 775
– Advance payments 56 – – 56 45 45
– Notes payable 7 – – 7 14 14
– Accounts payable to
affiliated companies 9 – – 9 8 8
– Accounts payable to
related companies 1 – – 1 1 1
– Other liabilities (*) 511 128 – 639 851 706
(*) of which:
1,505 244 25 1,774 2,174 1,765
– taxes 68 24
– social security contributions 13 22
There were no liabilities secured by mortgages or similar rights on the balance sheet date consistent
with the previous year.
At year-end, there were no liabilities due to shareholders (2005: EUR 215 million).
Payments received from the Asset-Backed-Security partners in conjunction with the ABS transaction
are shown as short-term loans under “other liabilities” until the underlying accounts receivable are
paid off.
Boehringer Ingelheim a n n u a l r e p o r t 2 0 0 6

4 Notes to the consolidated profit and loss statement
The consolidated profit and loss statement is presented in line with the total cost method.
4.1 Net sales
by business and business segment (in millions of EUR) 2006 2005
Human Pharmaceuticals 10,200 9,174
of which: Prescription Medicines 8,311 7,247
Consumer Health Care 1,064 1,052
Industrial Customer 809 847
Other sales 16 28
Animal Health 374 361
10,574 9,535
by geographic region (in millions of EUR) 2006 2005
Europe 3,295 3,177
of which: Germany 822 816
Americas 5,388 4,559
of which: USA/Canada/Mexico 5,039 4,219
Asia/Australasia/Africa 1,891 1,859
of which: Japan 1,227 1,232
4.2 Material costs
10,574 9,535
(in millions of EUR) 2006 2005
Costs of raw material, supplies and goods for resale 1,219 1,351
Expenditure on services 265 262
4.3 Personnel costs
1,484 1,613
(in millions of EUR) 2006 2005
Salaries and wages 2,217 2,087
Social benefits and retirement benefits 619 584
of which: retirement benefits 231 155
2,836 2,671
The interest component with respect to the increase in pensions and similar obligations is included in
financial income rather than in personnel costs and is, therefore, not included in the operating result
of the company.
Notes to the consolidated financial statements 2006 133

134
Average headcount 2006 2005
Production 12,380 12,044
Administration 4,972 4,742
Marketing and Sales 14,368 14,257
Research and Development 6,003 5,678
Apprentices 705 685
4.4 Amortisation of intangible and depreciation of tangible assets
38,428 37,406
The amortisation of intangible assets and depreciation of tangible assets includes unscheduled
write-offs of EUR 21 million (2005: EUR 2 million).
4.5 Other operating expenses
Other operating expenses include third-party services in research, development, medicine, and
marketing, further administration costs, fees, contributions, non-income-related taxes, commissions,
rents, freight costs, and expenses for third-party repairs as well as expenses incurred by restructuring
measures.
4.6 Financial income
(in millions of EUR) 2006 2005
Interest expense relating to pensions and similar obligations -100 -108
Other interest expense and similar expenditure -53 -70
Interest expense and similar expenditure -153 -178
Amortisation of other financial assets and short-term investments -38 -14
Income from other investment securities and from long-term loans 226 110
Other interest income and similar proceeds 67 47
102 -35
Boehringer Ingelheim a n n u a l r e p o r t 2 0 0 6

4.7 Holding income
(in millions of EUR) 2006 2005
Gains from the sale of investments 1 0
4.8 Taxes
(in millions of EUR) 2006 2005
Income taxes 501 504
Deferred taxes 13 -154
Other taxes – 24
514 374
As of the reporting year, other taxes are treated as operating expenses and have correspondingly
reduced operating income.
By concluding profit transfer agreements, significant German corporations have since 1 January 2004
belonged to the trade and corporate taxation group of integrated companies of the parent company
C. H. Boehringer Sohn. As income tax levied on taxable income allocated to the shareholders of
C. H. Boehringer Sohn may not be shown in the consolidated profit and loss statement, only the trade
tax of the relevant companies is shown as a tax expense.
In the effective tax-rate reconciliation the expected tax expense for Boehringer Ingelheim is calculated
on the profit tax rate for corporations (corporate tax, solidarity levy and trade tax). As in the profit and
loss statement tax expenses related to the income tax for partnerships and integrated companies of
C. H. Boehringer Sohn are limited to showing trade tax, the expected tax expense in the effective
tax-rate reconciliation is in this respect adjusted for fictive current and deferred corporate tax expenses
in order to link to the profit tax expense shown in the profit and loss statement. This elimination of
fictive corporate tax (including the solidarity levy) is shown in the items Fictive Corporation.
Notes to the consolidated financial statements 2006 135

136
The expected tax expense derived by using a fictive tax rate of 37.1 % (average tax rate for a German
corporation at a municipal trade tax levy rate of 340 %; 2005: 360 %) can be related to the actual tax
expense as follows:
(in millions of EUR) 2006 2005
Income before taxes minus other taxes 2,243 1,864
Expected tax expense (current and deferred) 832 37.1 % 701 37.6 %
Decrease/increase in expected tax expense by
– Fictive Corporation current taxes
-284
-12.7 % -378
-20.3 %
– Fictive Corporation deferred taxes -25 -1.1 % 49 2.6 %
– Local tax rate divergences -28 -1.2 % -34 -1.8 %
– Non-taxable income -26 -1.2 % -6 -0.3 %
– Non-tax-deductible expenses 59 2.6 % 34 1.8 %
– Taxes related to prior periods -10 -0.4 % -35 -1.9 %
– Amortisation of goodwill 18 0.8 % 18 1.0 %
– Changes in applicable tax rates -5 -0.2 % 7 0.4 %
– Withholding taxes not subject to tax credits 5 0.2 % 20 1.1 %
– Tax credits for research activities -39 -1.7 % -19 -1.0 %
– Other effects 17 0.7 % -7 -0.4 %
Actual tax expense (current and deferred) 514 22.9 % 350 18.8 %
The deferred taxes can be attributed to the following balance sheet items:
31.12.2006 31.12.2005
(in millions of EUR) Assets Liabilities Assets Liabilities
Intangible assets 9 2 7 2
Tangible assets 32 122 32 132
Financial assets 13 17 15 24
Inventories 116 14 104 19
Receivables 21 9 38 9
Provisions 511 16 600 16
Liabilities 17 2 14 2
Tax loss carryforwards and tax credits 27 0 11 0
Boehringer Ingelheim a n n u a l r e p o r t 2 0 0 6
746 182 821 204

Other mandatory disclosures according to GAS 10.39:
(in millions of EUR) 2006 2005
Deferred tax expense from changes in law -5 7
Deferred tax expense relating to the write-off of deferred tax assets
in fiscal year
The absence of changes in accounting and evaluation methods results, as in the previous year,
in no deferred tax income.
The valuation allowances relating to deferred tax assets amount to EUR 10 million.
Unused tax loss carryforwards, on which no deferred tax assets are recognized in the balance
sheet, amount to EUR 29 million at year-end, EUR 24 million of which expire in five years and
EUR 5 million expire in 10 years at the latest.
4.9 Net income
Net income for the year 2006 includes operating income unrelated to the accounting period
(mainly the release of other provisions) amounting to EUR 136 million (2005: EUR 81 million).
Operating expenditure unrelated to the accounting period amounted to EUR 17 million
(2005: EUR 27 million).
Notes to the consolidated financial statements 2006 137
5
5

138
5 Notes to the cash flow statement
The cash flow statement shows how the total liquid funds (liquid assets and securities in fixed and
current assets) of the Boehringer Ingelheim Group have changed during the reporting year through
inflow and outflow of cash and cash equivalents. In accordance with German Accounting Standard
No. 2 (GAS 2), Cash Flow Statements, cash flows are classified by operating, investing or financing
activities.
Changes reported by consolidated companies are converted at the average annual rate. Liquid funds
are converted, as shown in the balance sheet, according to the year-end rate method. The influence
of exchange rate changes on liquid funds is provided separately.
6 Other information
6.1 Derivative financial instruments
Boehringer Ingelheim is, due to its extensive international structure, highly dependent on the
development of the major world currencies and interest rates. In order to hedge against the risks,
particularly those inherent in supplies and services and financial funding, use is generally made
of foreign exchange forward contracts in the case of currency risks. Regarding interest rate risks,
use is made of interest rate swaps and interest rate options.
The use of derivative financial instruments and the organisational procedure are laid down in internal
guidelines. Trade, processing, documentation, and control are kept strictly separate.
The risk positions are recorded, analyzed and assessed regularly in a special consolidated financial
report. The items are periodically re-evaluated and monitored. Derivative financial instruments are
only agreed on with banks of sound financial standing.
As of 31 December 2006, the nominal value of all foreign currency and interest rate hedging
transactions amounted to EUR 2,506 million (2005: 3,618 million). The corresponding market values
amounted to EUR +103 million (2005: EUR -63 million).
Boehringer Ingelheim a n n u a l r e p o r t 2 0 0 6

Derivative financial instruments at year-end were as follows:
Nominal value Market value
(in millions of EUR) 31.12.2006 31.12.2005 31.12.2006 31.12.2005
Foreign exchange forward contracts 2,448 3,355 103 –62
Interest instruments 58 263 0 –1
The nominal value is the sum of all purchases and sales. The market value is calculated on the basis of
quoted prices or derived values for derivative instruments.
6.2 Contingent liabilities to the benefit of third parties
(in millions of EUR) 31.12.2006 31.12.2005
Liabilities from guarantees, guarantees for bills and cheques,
warranties and provisions of collateral for third-party liabilities
6.3 Other financial obligations
(in millions of EUR) 31.12.2006 31.12.2005
To third parties 967 741
At year-end, other financial obligations included capital investments of EUR 665 million (2005:
EUR 552 million). Furthermore, EUR 195 million (2005: EUR 182 million) from renting and leasing
contracts are included, of which EUR 82 million concern long-term rent contracts with subsidiaries
not included in the consolidation.
6.4 Research and development expenses
(in millions of EUR) 2006 2005
Expenditures for Research and Development 1,574 1,360
12
176
Notes to the consolidated financial statements 2006 139

140
Auditor’s Report
We have audited the consolidated financial
statements prepared by the C. H. Boehringer
Sohn, Ingelheim – comprising the balance sheet,
the income statement, statement of changes in
equity, cash flow statement and the notes to the
consolidated financial statements – together
with the group management report for the
business year from 1 January to 31 December
2006. The preparation of the consolidated financial
statements and the group management
report in accordance with German commercial
law is the responsibility of the Management
Board of the Managing Corporate Partnership-
AG. Our responsibility is to express an opinion
on the consolidated financial statements and the
group management report based on our audit.
Boehringer Ingelheim a n n u a l r e p o r t 2 0 0 6
We conducted our audit of the consolidated
financial statements in accordance with § 317
HGB (German Commercial Code) and German
generally accepted standards for the audit of
financial statements promulgated by the Institut
der Wirtschaftsprüfer (Institute of Public
Auditors in Germany) (IDW). Those standards
require that we plan and perform the audit such
that misstatements materially affecting the
presentation of the net assets, financial position
and results of operations in the consolidated
financial statements in accordance with
(German) principles of proper accounting and in
the group management report are detected with
reasonable assurance. Knowledge of the business
activities and the economic and legal environment
of the Group and expectations as to possible
misstatements are taken into account in the
determination of audit procedures. The effectiveness
of the accounting-related internal control
system and the evidence supporting the
disclosures in the consolidated financial
statements and the group management report
are examined primarily on a test basis within
the framework of the audit. The audit includes
assessing the annual financial statements of the
companies included in consolidation, the determination
of the companies to be included in
consolidation, the accounting and consolidation
principles used and significant estimates made by
the Management Board of the Managing Corporate
Partnership-AG, as well as evaluating the
overall presentation of the consolidated financial
statements and the group management report.
We believe that our audit provides a reasonable
basis for our opinion.

With the following exception, our audit has not
led to any reservations: Contrary to § 314 para-
graph 1 number 6 HGB compensation of the
members and the former members of the board
of managing directors have not been disclosed.
In our opinion based on the findings of our audit,
the consolidated financial statements with the
exception mentioned comply with the legal
requirements. The consolidated financial state-
ments give a true and fair view of the net assets,
financial position and results of operations of
the Group in accordance with German principles
of proper accounting. The group management
report is consistent with consolidated financial
statements that comply with the legal require-
ments and as a whole provides a suitable view
of the Group’s position and suitably presents the
opportunities and risks of future development.
Frankfurt am Main, 16 February 2007
PricewaterhouseCoopers
Aktiengesellschaft
Wirtschaftsprüfungsgesellschaft
(E.-W. Frings) (P. Marshall)
Wirtschaftsprüfer Wirtschaftsprüfer
(German Certified (German Certified
Public Accountant) Public Accountant)
Auditor’s Report
141

142
Glossary
Human Pharmaceuticals
Product name Active ingredient Indication
actilyse® alteplase Fibrinolytic treatment of acute myocardial
infarction, acute massive pulmonary embolism
and ischaemic stroke.
aggrenox®
asasantin®
persantin®
persantine®
persantina®
alesion®
flurinol®
talerc®
ASA / dipyridamole
extended release
epinastine Antiallergic agent
antistax® quantified red wine leaf
extract AS195 ®
Boehringer Ingelheim AnnuA l RepoR t 2006
Prevention of stroke following a first stroke
or for transient ischaemic attacks.
As above and adjunct to coumarin anti-coagulants
in the prevention of postoperative thromboembolic
complications of cardiac valve
replacement.
Prevention and treatment of symptoms of chronic
venous insufficiency; varicosis veins, leg edema,
painful swollen legs, tickling itching legs,
tired and heavy legs.

Product name Active ingredient Indication
aptivus® tipranavir Available as capsules for adults –
used co-administered with 200 mg of ritonavir,
is indicated for combination antiretroviral treatment
of HIV-1-infected adult patients with
evidence of viral replication, who are highly
treatment-experienced or have HIV-1 strains
resistant to multiple protease inhibitors.
atrovent® ipratropium bromide Bronchodilator for maintenance treatment
of bronchospasm associated with chronic
obstructive pulmonary disease, including
chronic bronchitis, emphysema and asthma.
berotec®
dosberotec®
fenoterol a) Symptomatic treatment of acute asthma attacks
b) Prophylaxis of exercise induced asthma
c) Symptomatic treatment of bronchial asthma
and other conditions with reversible airway
narrowing e.g. chronic obstructive bronchitis.
Concomitant anti-inflammatory therapy should be
considered for patients with bronchial asthma and
steroid responsive chronic obstructive pulmonary
disease (COPD).
bisolvon® bromhexine Mucolytic for the treatment of acute and chronic
bronchopulmonary diseases associated with
impaired formation and transport of mucus.
Glossary 143

144
Product name Active ingredient Indication
buscopan®
buscapina®
catapresan®
catapres®
catapressan®
atensina®
combivent® ipratropium bromide /
salbutamol
cymbalta®
xeristar®
Boehringer Ingelheim AnnuA l RepoR t 2006
butylscopolamine Treatment of abdominal discomfort and pain
associated with intestinal cramps.
clonidine All forms of high blood pressure,
unless caused by phaeochromocytoma.
Treatment of bronchospasms associated with
reversible obstructive airway diseases in patients
requiring more than one bronchodilator.
duloxetine Major depressive disorder (MDD),
diabetic peripheral neuropathic pain (DPNP)

Product name Active ingredient Indication
dulcolax® bisacodyl (tablets,
suppositories),
sodium picosulphate
(drops, pearls)
duovent®
bronchodual®
berodual®
flomax®
alna®
josir®
pradif®
secotex®
urolosin®
flomax® cr
alna® ocas®
pradif® t
urolosin® ocas®
fenoterol /
ipratropium bromide
Laxative for use in patients suffering from
constipation. In preparation for diagnostic
procedures, in pre- and postoperative treatment
and in conditions, which require defecation
to be facilitated.
For prevention and treatment of symptoms in
chronic obstructive airway disorders with
reversible bronchospasm such as bronchial
asthma and especially chronic bronchitis with
or without emphysema.
tamsulosin Lower urinary tract symptoms (LUTS) associated
with benign prostatic hyperplasia (BPH).
tamsulosin,
orally controlled
absorption system
Lower urinary tract symptoms (LUTS) associated
with benign prostatic hyperplasia (BPH).
Glossary 145

146
Product name Active ingredient Indication
inflammide® budesonide Chronic control of symptoms and signs of
bronchial asthma.
laxoberal®
laxoberon®
dulcolax® pico
lendormin®
lendorm®
lindormin®
sintonal®
sodium picosulphate
(drops, pearls, tablets)
Laxative for use in cases of constipation and
in conditions which require defecation to
be facilitated.
brotizolam Short-term treatment of disorders of initiating and
maintaining sleep.
metalyse® tenecteplase Fibrinolytic treatment of acute myocardial
infarction.
Boehringer Ingelheim AnnuA l RepoR t 2006

Product name Active ingredient Indication
mexitil®
mexitilen®
micardis®
micardisplus®
micardis® plus
micardis® hct
co-micardis®
mobic®
mobec®
movalis®
movatec®
motens®
caldine®
tens®
midotens®
mexiletine Serious symptomatic ventricular tachycardic heart
rhythm disturbances.
telmisartan
telmisartan / hydrochlorothiazide
Treatment of essential hypertension.
meloxicam Symptomatic treatment of rheumatic diseases.
lacidipine Treatment of essential hypertension.
Glossary 147

148
Product name Active ingredient Indication
mucoangin®
frubizin® akut
mucosolvan®
motosol®
mucosan®
surbronc®
vaksan®
pharmaton®
pharmaton® capsules
geriavit pharmaton®
pharmaton® caplets
sifrol®
mirapex®
mirapexin®
ambroxol (lozenges) Pain relief in acute sore throat.
ambroxol Mucolytic treatment of acute and chronic
bronchopulmonary diseases associated with
impaired formation and transport of mucus.
standardized ginseng
extract G115®,
vitamins, minerals,
trace elements
Boehringer Ingelheim AnnuA l RepoR t 2006
To improve physical and mental performance
and well-being.
pramipexole Symptomatic treatment of idiophathic
Parkinson’s disease,
symptomatic treatment of idiophathic
Restless Legs Syndrome.

Product name Active ingredient Indication
silomat® clobutinol Symptomatic treatment of irritable,
non-productive cough.
spiriva® tiotropium bromide Maintenance treatment of patients with
COPD (chronic obstructive pulmonary disease,
including chronic bronchitis and emphysema),
the maintenance treatment of associated
dyspnoea and for prevention of exacerbations.
thomapyrin® ASA, paracetamol,
coffeine
Mild to moderate pain.
viramune® nevirapine Available as tablets for adults and suspension
for children – for the combination therapy
of HIV infection and for the prevention of
mother-to-child transmission of HIV.
Glossary
149

150
Animal Health
Product name Active ingredient Indication
enterisol® ileitis attenuated
live vaccine (Lawsonia
intracellularis)
express® attenuated live vaccine
(IBRV, BVDV, PI3V, BRSV)
ingelvac® circoflex recombinant vaccine
(Porcine Circovirus
Type 2, PCV­2)
ingelvac® m.hyo inactivated vaccine
(Mycoplasma
hyopneumoniae)
Boehringer Ingelheim AnnuA l RepoR t 2006
For active immunisation of pigs to reduce intestinal
lesions caused by Lawsonia intracellularis
infection and to reduce growth variability and loss
of weight gain associated with the disease.
For prevention of reproductive and respiratory
diseases in cattle.
For the active immunisation of swine against
porcine circovirus type 2.
For the active immunisation of swine to reduce
lung lesions following infection with Mycoplasma
hyopneumoniae.

Product name Active ingredient Indication
ingelvac® prrs mlv attenuated live vaccine
(PRRS virus)
mamyzin® penethamate
hydroiodide
For the active immunisation of clinically healthy
swine against the respiratory and
reproductive form of PRRS virus infection (porcine
reproductive respiratory syndrome).
For the treatment of mastitis caused by
Gram-positive pathogens.
metacam® meloxicam Dog, horse: alleviation of pain and inflammation
associated with acute or chronic musculo-skeletal
disorders
Cat, dog: reduction of postoperative pain
Cattle: respiratory infection, diarrhoea, mastitis
Swine: non-infectious locomoter disorders,
mastitis-metritis-agalactia-syndrome,
Horse: for the alleviation of pain in the event of
colic.
ventipulmin® clenbuterol Bronchodilator for the treatment of acute and
chronic obstructive airway disease in horses.
vetmedin® pimobendan For the treatment of congestive heart failure
in dogs.
Glossary 151

If you have any queries or comments, please contact us:
Boehringer Ingelheim GmbH
Binger Strasse 173
55216 Ingelheim
Germany
Telephone + 49 / 6132 / 77-0
Fax + 49 / 6132 / 77-3000
Contacts
CD Communications
Telephone + 49 / 6132 / 77-2012
Fax + 49 / 6132 / 77-6601
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Copyright
© Boehringer Ingelheim GmbH, 2007
All rights reserved. No part of this Annual Report 2006
may be reproduced or transmitted in any form or
by any means, electronic or photocopy, without permission
in writing from Boehringer Ingelheim GmbH.
Figures from third parties used in the annual report are based
on data available at the time the financial statement was drawn up.

Comparison of Balance Sheets/
Financial Data 1997—2006 (in millions of EUR)
Assets (as of 31.12.) 1997 1998 1999 * 2000 2001 2002 2003 2004 2005 2006
Intangible assets 508 452 400 344 322 302 242 267 233 554
Tangible assets 1,612 1,739 1,992 2,217 2,467 2,840 2,767 2,712 2,900 2,886
Financial assets 757 731 849 1,135 1,008 1,689 2,462 2,756 3,396 3,043
Fixed assets 2,877 2,922 3,241 3,696 3,797 4,831 5,471 5,735 6,529 6,483
Inventories 794 806 944 1,021 1,014 971 1,000 1,085 1,229 1,280
Accounts receivable (incl. deferred charges and deferred taxes) 1,211 1,255 1,870 1,938 2,314 2,360 2,537 2,477 3,013 3,137
Cash and cash equivalents (incl. securities) 134 299 459 477 1,002 1,055 1,134 1,333 1,247 945
Current assets 2,139 2,360 3,273 3,436 4,330 4,386 4,671 4,895 5,489 5,362
Total assets 5,016 5,282 6,514 7,132 8,127 9,217 10,142 10,630 12,018 11,845
Liabilities and equity (as of 31.12.) 1997 1998 1999 * 2000 2001 2002 2003 2004 2005 2006
Shareholders’ capital 399 441 332 211 200 178 178 178 178 178
Reserves (incl. currency conversion difference) 1,461 1,651 1,982 2,362 2,753 2,818 3,139 3,297 2,940 3,275
Net income 212 229 320 379 401 537 529 888 1,491 1,722
Total equity 2,072 2,321 2,634 2,952 3,354 3,533 3,846 4,363 4,609 5,175
Minority interests 0 0 0 0 1 203 188 193 216 188
Group equity 2,072 2,321 2,634 2,952 3,355 3,736 4,034 4,556 4,825 5,363
Provisions (incl. deferred taxes) 1,982 2,012 2,631 2,932 3,150 3,568 3,963 4,172 4,958 4,641
Liabilities (incl. deferred charges) 962 949 1,249 1,248 1,622 1,913 2,145 1,902 2,235 1,841
Total liabilities 2,944 2,961 3,880 4,180 4,772 5,481 6,108 6,074 7,193 6,482
Total liabilities and equity 5,016 5,282 6,514 7,132 8,127 9,217 10,142 10,630 12,018 11,845
Summary of selected financial data 1997 1998 1999 * 2000 2001 2002 2003 2004 2005 2006
Net sales 4,201 4,474 5,086 6,188 6,694 7,580 7,382 8,157 9,535 10,574
Operating income 350 336 655 800 980 1,082 901 1,372 1,923 2,140
Operating income as % of sales 8.3 7.5 12.9 12.9 14.6 14.3 12.2 16.8 20.2 20.2
Income after taxes 212 229 320 379 401 551 537 908 1,514 1,729
Income after taxes as % of sales 5.0 5.1 6.3 6.1 6.0 7.3 7.3 11.1 15.9 16.4
Return on equity (in %) 11.4 11.0 13.8 14.4 13.6 16.0 15.0 23.1 34.2 37.4
Own capital resources (in %) 41.3 43.9 40.4 41.4 41.3 38.3 37.9 41.0 38.4 43.7
Cash flow 561 595 737 791 1,117 1,049 1,059 1,430 2,069 2,317
Financial funds 722 858 1,055 1,094 1,645 2,645 3,516 4,015 4,585 3,934
Personnel expenditure 1,270 1,409 1,527 1,749 1,916 2,175 2,252 2,443 2,671 2,836
Personnel expenditure as % of sales 30.2 31.5 30.0 28.3 28.6 28.7 30.5 29.9 28.0 26.8
Average numbers of employees 24,860 25,927 26,448 27,325 27,980 31,843 34,221 35,529 37,406 38,428
Research and development costs 771 812 826 968 1,019 1,304 1,176 1,232 1,360 1,574
R&D as % of sales 18.4 18.1 16.2 15.6 15.2 17.2 15.9 15.1 14.3 14.9
Investments in tangible assets 455 421 377 497 548 634 516 427 532 596
Depreciation of tangible assets 189 211 256 288 305 340 354 377 439 419
*As of the comparative financial statement
1999, accounting and evaluation methods were
brought closer into line with International
Accounting Standards (IAS), particularly with
regard to deferred taxes and provisions for
pensions.

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