Ipsen Reports Strong H1 2024 Results, Advances Launches, Upgrades FY Guidance

1 August 2024

Ipsen, a biopharmaceutical entity listed on Euronext (IPN) and operating globally, has disclosed its financial outcomes for the initial half of 2024. 

Key Developments

Regulatory Approvals and Launches
The U.S. market saw the approval and subsequent launch of two significant treatments: Onivyde® (irinotecan) for first-line pancreatic cancer and Iqirvo® (elafibranor) for second-line primary biliary cholangitis. Furthermore, Ipsen has expanded its oncology portfolio with the acquisition of rights to tovorafenib outside the U.S.

Strategic Expansions
Ipsen has engaged in several early-stage innovation deals in both oncology and neuroscience sectors, enhancing its growth and development pipeline. 

Financial Performance

Growth Metrics
The company's total sales increased by 9.5% at constant exchange rates (CER), or 8.0% in reported terms, attributed mainly to the strong sales performance of Cabometyx® (cabozantinib) and Dysport® (abobotulinumtoxinA), supplemented by contributions from Bylvay® (odevixibat) and Onivyde. 

Margins and Profits
Ipsen's core operating margin stood at 32.4%, a decrease of 1.6 percentage points, primarily due to increased investment in research and development. Meanwhile, the IFRS operating margin remained steady at 19.2%. The company has upgraded its financial outlook for 2024, anticipating total sales growth exceeding 7.0% at CER and a core operating margin surpassing 30.0% of total sales.

Executive Commentary
David Loew, Ipsen's Chief Executive Officer, remarked on the strategic advancements and solid performance in the first half, emphasizing the company's robust portfolio across oncology, rare diseases, and neuroscience. He expressed confidence in the potential of newly launched products, Onivyde and Iqirvo, and highlighted the pipeline's expansion with the acquisition of tovorafenib for pediatric oncology. Loew reiterated Ipsen's commitment to focusing on launches, commercial execution, and further pipeline expansion.

Financial Summary for H1 2024 vs. H1 2023
- Total Sales: €1,659.3 million, up 8.0% (9.5% at CER)
- Core Operating Income: €538.0 million, up 2.8%
- Core Operating Margin: 32.4%, down from 34.0%
- Core Consolidated Net Profit: €399.4 million, up 1.6%
- Core Earnings Per Share (fully diluted): €4.78, up 1.2%
- IFRS Operating Income: €317.8 million, up 7.5%
- IFRS Operating Margin: 19.2% (unchanged)
- IFRS Consolidated Net Profit: €232.3 million, up 19.1%
- IFRS Earnings Per Share (fully diluted): €2.78, up 18.4%
- Free Cash Flow: €393.5 million, up 5.9%
- Closing Net Debt: Improved from €272.2 million to a net surplus of €6.8 million

2024 Guidance Upgrades
Ipsen has revised its guidance for the full year 2024, projecting:
- Total sales growth of over 7.0% at CER
- An anticipated negative currency impact of approximately 1%
- Core operating margin expected to surpass 30.0% of total sales

Pipeline Updates
In June 2024, Ipsen received accelerated U.S. FDA approval for Iqirvo for primary biliary cholangitis, with the product becoming available shortly thereafter. A decision from European authorities is awaited later in the year. Additionally, Ipsen expanded its collaboration with Exelixis for Cabometyx® in neuroendocrine tumors following positive Phase III trial results. Partnerships with Marengo Therapeutics and Foreseen Biotechnology were also bolstered, advancing oncology research and preparatory activities for new treatments.

Consolidated Financial Statements
The Board approved the condensed consolidated financial statements on July 24, 2024, with auditors conducting a limited review. The interim financial report will be accessible on Ipsen's website.

Future Announcements
Ipsen plans to release its year-to-date and third-quarter sales update on October 24, 2024.

Ipsen continues to drive its strategic initiatives, focusing on innovative treatments across key therapeutic areas to enhance patient outcomes and generate sustainable growth.

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