Ipsen's first-quarter 2010 drug sales up 6.2%

IpsenMay 3 2010

“In the near future, capitalizing on these positive developments, Ipsen will continue to progress its rich R&D pipeline, optimize the contribution of its presence in primary care and strengthen its R&D organization.”

Ipsen (Euronext: IPN) reported today its sales for the first quarter 2010.

Commenting on the first quarter performance, Jean-Luc Bélingard, Chairman and Chief Executive Officer of Ipsen said: "Ipsen's specialty care franchise is more than ever confirming its high growth potential and has passed a landmark, as it now represents nearly two thirds of Ipsen's total drug sales. Our three therapeutic areas have grown double-digit this quarter, with oncology, endocrinology and neurology up 11.4%, 23.3% and 16.0% at constant currency respectively. In that context, the launch of the new Decapeptyl^® 6-month formulation in France and soon throughout Europe, and our entry in the US, epitomized by the recent launch of Dysport^® in this country are key milestones that will allow the Group to continue to grow Specialty Care very dynamically in the years to come." Jean-Luc Bélingard added: "In parallel, over the same period, Ipsen has significantly leveraged its R&D pipeline, notably through several key partnerships with Inspiration in hematology, Rhythm in metabolic disorders, GTx in oncology and Dicerna in cutting edge siRNA technologies." Jean-Luc Bélingard concluded: "In the near future, capitalizing on these positive developments, Ipsen will continue to progress its rich R&D pipeline, optimize the contribution of its presence in primary care and strengthen its R&D organization."

Drug related sales correspond to sales of active indredients and raw materials (eg Ginkgo Biloba extract, EGb 761^®) and are subject to a high volatility from one quarter to another, making comparisons more difficult.

First quarter 2010 sales highlights

Consolidated Group sales reached €266.2 million, up 5.7% year-on-year.

Drug sales reached €258.0 million, up 6.3% year-on-year or 6.2% excluding foreign exchange impacts. This performance was driven by strong Specialty Care sales, with all products growing double digit: oncology, endocrinology and neurology grew 11.4%, 23.3% and 16.0% excluding foreign exchange impacts respectively over the period. Specialty care sales reached €168.5 million up 17.1% year-on-year, and its relative weight in total drug sales grew sharply to 65.3% from 59.3% a year earlier. Primary Care sales reached €89.5 million, down 9.5% year-on-year, impacted by slower sales in France notably.

Sales in Major Western European countries amounted to €138.3 million, slightly down 0.2% year-on-year. Despite a tougher competitive environment, notably in the French primary care landscape, sales were driven by the Group's dynamic speciality care products. Sales in this region represented 52.0% of total sales compared with 55.1% a year earlier.

Sales generated in the Other European countries reached €65.6 million, up 29.1% year-on-year from a low first quarter 2009. Growth was fuelled notably by Nordic countries, and by Russia and other Eastern European countries recovering from their low performance in the first quarter 2009. The relative weight of the sales in this region was up sharply to 24.7% of total consolidated Group sales, from 20.2% a year earlier.

Sales generated in North America reached €9.9 million, up 26.6% year-on-year or up 35.3% excluding foreign exchange impacts. This reflected a sustained and dynamic growth of all products and notably Somatuline^®, up 51.9% year-on-year excluding foreign exchange impacts. Dysport^®, which was launched in the US in late 2009, achieved its first commercial sales over the period after a successful sampling campaign.

Sales generated in countries in the Rest of the World reached €52.3 million, down 4.4% year-on-year excluding foreign exchange impacts. This region was negatively impacted by a change in importation regulations in Algeria at the end of 2009 which affected the timing of local sales, while in Brazil, for technical reasons the first quarter 2009 represented a high baseline. In addition the region was also affected by slower sales in China, notably as a result of the progressive implementation of the Essential Drug List, affecting the volume as well as the seasonality of the sales of Smecta^®, which for the time being does not participate in this programme. Sales in the Rest of the World represented 19.7% of total consolidated Group sales, against 21.6% a year earlier.