Ipsen goes back to black
This article was originally published in Scrip
French pharma company Ipsen has reported a return to profit in 2013 after putting behind it a costly venture in hemophilia which saw its partner Inspiration Biopharmaceuticals go bust and investigational candidate OBI-1 sold to Baxter International. Its outlook for 2014 was broadly welcomed by analysts as in line with expectations.
The firm booked a consolidated net profit of €153m after suffering a loss of €27.5m in 2012. The firm also exceeded its operating margin target by one percentage point to hit 17% on a recurring basis, adjusted for one-off items.
The improved margin came despite increased R&D spending, and reflected a reduction in selling, general and administrative expenses. Notably, it cut its primary care sales force in France, its largest single market, and reshuffled its US sales organization for therapeutic Dysport (botulinum toxin type A).
Ipsen booked total revenues of €1.28bn, up 0.3% on 2012. Its top-selling drug Decapeptyl (triptorelin for prostate cancer, endometriosis and uterine fibroids) declined 2% to €299m, and there was a drag from negative currency exchange rate movements in emerging markets (which account for 40% of sales, with China and Russia representing the company's next largest markets after France).
However, Ipsen's next three best-selling drugs performed well. Somatuline (lanreotide) for acromegaly is expected to drive further growth from 2015 following planned filings for neuroendocrine tumors in the US and Europe by June 2014.
Product | 2013 Sales (€m) | % change (at constant currencies) |
Decapeptyl | 299 | -2 |
Somatuline | 247 | +11 |
Dysport | 242 | +7 |
Smecta | 121 | +8 |
Total Drug Sales | 1,191 | +2 |
Increlex problems
Ipsen's financials were also hit in 2013 by the supply interruption for Increlex (mecasermin), the insulin-like growth factor 1 product for children with growth problems.
Its partner Lonza shifted production from the US to Switzerland but the FDA has yet to approve product from the new facility. Supply was interrupted in the US from mid-June and from Q3 in Europe, and stockpiles were insufficient to ensure continued supply.
Although supplies of the product were available again in Europe from the beginning of 2014, negotiations are still continuing with the FDA regarding the US market, and Ipsen's CEO Marc de Garidel admitted to Scrip that while Ipsen is "trying to help the situation...the process is in the hands of the authorities and Lonza."
outlook
Ipsen is targeting specialty care drug sales growth of 4-6%, with the Increlex resupply and the situation in China both notable uncertainties that will have a bearing on the final figure.
It expects primary care sales to decline between -2-0%, although this number excludes the launch of generic Smecta in France.
The recurring adjusted operating margin is expected to stay around 16-17% of sales.