Sales of the HealthCare subgroup rose by 6.4% in the second quarter of 2010, to €4,305 million (Q2 2009: €4,045 million). Adjusted for currency and portfolio effects, business was up by 2.0%. Both of the subgroup’s segments contributed to this growth, with Consumer Health playing a particularly significant role.

EBITDA before special items at HealthCare came in nearly level with the prior year at €1,102 million (Q2 2009: €1,112 million), despite significantly higher research and development costs (+13.9%) in support of our research and development pipeline, which continues to perform positively. The decline in earnings in the Pharmaceuticals segment was nearly offset by a gratifying improvement at Consumer Health. EBIT before special items grew by 0.8% to €764 million (Q2 2009: €758 million). Special items totaled minus €189 million (Q2 2009: plus €63 million). EBIT fell by 30.0% to €575 million (Q2 2009: €821 million).

Sales of the Pharmaceuticals segment climbed by 4.3% in the second quarter of 2010 to €2,748 million (Q2 2009: €2,634 million). Adjusted for currency and portfolio effects, the increase was 1.1%. Business expanded in the Asia/Pacific and Latin America/Africa/Middle East regions, but fell considerably in North America.

Sales of the Women’s Healthcare and General Medicine business unit increased by 3.9% to €1,710 million (Q2 2009: €1,646 million). On a currency-adjusted basis, business was down by 1.2%.

Our YAZ®/Yasmin®/Yasminelle® (Fx adj. -14.9%) line of oral contraceptives saw sales fall significantly, the main factor being lower demand for YAZ® in the United States. Our business in that country was additionally hampered by intensified generic competition. Sales of the hormone-releasing intrauterine device Mirena® fell by 16.2% (Fx adj.). This was chiefly attributable to advanced sales in the United States in the first quarter of 2010 following the announcement of a selling price increase.

Sales of our antibiotic Cipro®/Ciprobay® (Fx adj. -34.6%) shrank considerably in North America, particularly due to the expiration at the end of the first quarter of a U.S. government contract. By contrast, our business with the antibiotic Avalox®/Avelox® (Fx adj. +20.8%) benefited from increased stocking by Japanese dealers and sales gains in China resulting from a reassessment by that country’s regulatory authorities of the active substance class. There was also a positive impact from fluctuations in the ordering schedule of our distribution partner in the United States. Sales of Aspirin® Cardio for prevention of myocardial infarction (Fx adj. +11.2%) rose significantly due to an increase in volumes. Our antihypertensive Kinzal®/Pritor® posted pleasing growth (Fx adj. +8.5%), benefiting from the expansion of its indications in October 2009 to include the prevention of cardiovascular disease. Sales of our erectile dysfunction treatment Levitra® (Fx adj. +1.0%) and Adalat® for treating hypertension and coronary heart disease (Fx adj. +0.8%) edged forward year on year. Adalat® benefited from an unscheduled order from a business partner in Canada. Sales of Glucobay® (Fx adj. +0.1%) came in level year on year. Growth for that product in China compensated for declining volumes in Europe as a result of intensified generic competition.

Sales of the Specialty Medicine business unit climbed by 5.1% to €1,038 million (Q2 2009: €988 million). Adjusted for currency and portfolio effects, business was up by 4.9%.

Sales of our blood-clotting medication Kogenate® were up considerably (Fx adj. +25.2%) against the weak prior-year quarter, due primarily to higher volumes in North America and Asia/Pacific that resulted partly from fluctuations in the ordering schedule of our distribution partner. Our cancer drug Nexavar® (Fx adj. +19.6%) achieved impressive sales growth worldwide. In this connection, special mention should be made of the Asia/Pacific region, where the product was registered in Japan for the indication liver cancer in May 2009. Business with Nexavar® expanded markedly in Europe as well. Sales of the contrast agent Iopamiron® dropped considerably (Fx adj. -8.9%), mostly because of the near-complete cessation of marketing activities in Latin America. Benefiting from this trend was our contrast agent Ultravist®, sales of which expanded briskly also thanks to a positive performance in the Asia/Pacific region (Fx adj. +17.6%). The continuing decline in sales of the contrast agent Magnevist® (Fx adj. -8.3%) was more than offset by increases for Gadovist® (Fx adj. +24.1%), particularly in Europe. Sales of the multiple sclerosis drug Betaferon®/Betaseron® were down (Fx adj. -10.7%), mostly because of intensified competition especially in Germany and the United States. Sales were also down in Russia, where we had benefited in the previous year from a tender.

EBITDA before special items of the Pharmaceuticals segment fell by 7.3% in the second quarter of 2010 to €753 million (Q2 2009: €812 million). The decline resulted particularly from higher research and development expenditures in support of our Phase III projects and from a slight increase in selling expenses. Earnings were also diminished by portfolio changes. By contrast, currency effects had a positive impact. EBIT before special items declined by 7.8% to €482 million (Q2 2009: €523 million). Special items totaling minus €189 million (Q2 2009: plus €66 million) resulted from a partial write-down for our cancer drug Zevalin® and from litigations. EBIT fell by 50.3% to €293 million (Q2 2009: €589 million).

In the first half of 2010, sales of our Pharmaceuticals segment moved ahead by 1.1% to €5,279 million, compared with €5,221 million in the prior-year period. Adjusted for currency and portfolio effects, business grew by 0.8%. This performance was made possible especially by gratifying sales increases for the blood-clotting medication Kogenate® (Fx adj. +10.5%), the cancer drug Nexavar® (Fx adj. +17.9%) and the antibiotic Avalox®/Avelox® (Fx adj. +13.3%). By contrast, there was a decline in business with our YAZ®/Yasmin®/Yasminelle® line of oral contraceptives (Fx adj. -12.6%), the multiple sclerosis drug Betaferon®/Betaseron® (Fx adj. -7.9%) and our antibiotic Cipro®/Ciprobay® (Fx adj. -20.4%).

EBITDA before special items in the first half of 2010 fell 5.4% to €1,550 million (H1 2009: €1,639 million). EBIT before special items fell by 3.6% to €1,008 million (H1 2009: €1,046 million). Special items of minus €218 million (H1 2009: plus €48 million) related to a partial write-down for our cancer drug Zevalin® and to litigations. EBIT fell by 27.8% to €790 million (H1 2009: €1,094 million).

Sales of the Consumer Health segment advanced by 10.3% in the second quarter of 2010 to €1,557 million (Q2 2009: €1,411 million). Business expanded by 3.8% on a currency- and portfolio-adjusted basis, with all regions – and particularly North America and Asia/Pacific – contributing to this increase.

In the Consumer Care Division, sales advanced by 11.6% to €836 million (Q2 2009: €749 million). Adjusted for currency and portfolio effects, the increase was 5.6%. All main products and regions contributed to this increase, with the growth in North America playing an especially important role. The analgesics Aspirin® (Fx adj. +6.1%) and Aleve® (Fx adj. +14.3%) and the One-A-Day® line of dietary supplements (Fx adj. +14.8%) achieved pleasing sales growth thanks mainly to the recovery of consumption in the United States. In addition, business with Aleve® and Canesten® benefited from the rescission of the prescription requirement in Canada. The improvement in sales of our Bepanthen®/Bepanthol® line of skincare products (Fx adj. +8.4%) was attributable especially to the positive trend in Russia and France.

Sales of the Medical Care Division advanced by 2.0% in the second quarter of 2010 to €399 million (Q2 2009: €391 million). On a currency-adjusted basis, sales fell by 4.3% due mostly to the negative trend in the U.S. diabetes care market, where both prices and demand were down. This situation negatively impacted our Breeze® (Fx adj. -26.2%) and Contour® (Fx adj. -8.8%) blood glucose meter lines. In Europe – and especially the United Kingdom – the Contour® product line benefited from the market launch of new products and was thus able to match prior-year sales overall despite inventory reductions in the German distribution channels. Buoyed by growth in the equipment service sector in North America, our medical devices business saw a further increase in sales to €133 million (Fx adj. +10.8%).

Sales of the Animal Health Division rose by a substantial 18.8% to €322 million (Q2 2009: €271 million). After adjusting for currency effects, the increase came to 10.4%. This performance was attributable to sales growth in all regions, but mainly to especially strong increases in North America. There was a gratifying improvement in sales of our Advantage® line of flea, tick and worm control products (Fx adj. +20.5%), due particularly to initial stocking of a new distribution channel in the United States. Business with our broad-spectrum antibiotic Baytril® (Fx adj. -0.5%) held steady year on year. Sales declines in Europe resulting especially from growing generic competition were almost fully offset by increases in North America and in Asia/Pacific.

In the Consumer Health segment we achieved EBITDA before special items of €349 million in the second quarter of 2010 (Q2 2009: €300 million). The 16.3% year-on-year increase resulted chiefly from the good business performance in the Animal Health and Consumer Care divisions and from positive currency effects. Moreover, the product mix had a favorable effect on the cost of goods sold. EBIT before special items grew by 20.0% to €282 million (Q2 2009: €235 million). There were no special items (Q2 2009: special charges of €3 million). EBIT rose by €50 million to €282 million (Q2 2009: €232 million).

Sales of the Consumer Health segment rose by 8.5% to €2,895 million in the first half of 2010 (H1 2009: €2,667 million). After adjusting for currency and portfolio changes, sales grew by 5.2%; all regions contributed to this increase, with North America putting in an especially strong performance. The marked economic recovery and the associated rise in demand led to significant sales growth for the majority of our Consumer Health products. Examples include the Advantage® line of flea, tick and worm control products (Fx adj. +18.0%), our analgesic Aleve® (Fx adj. +25.9%) and the Bepanthen®/Bepanthol® line of skincare products (Fx adj. +10.2%). EBITDA before special items rose by a substantial 18.2% to €631 million (H1 2009: €534 million). EBIT before special items grew by a gratifying 23.7% to €501 million (H1 2009: €405 million). EBIT advanced by €99 million to €501 million (H1 2009: €402 million).