Ipsen reports 8.3% increase in Group sales for first nine months of 2010

IpsenOct 28 2010

Ipsen (Euronext: IPN, ADR: IPSEY) reported today its sales for the third quarter and the first nine months of 2010.

Commenting on the Group's performance, Jean-Luc Bélingard, Chairman and Chief Executive Officer of Ipsen said: "Ipsen's first nine months performance continued to show strong and sustained growth, a confirmation of the medical value of our drugs and of our successful presence in emerging markets. Since 2002, neurology and endocrinology sales have grown threefold and fivefold respectively. For the first time, more than half of our sales were made outside of the major European countries across all of our franchises including primary care. These achievements have been reached through the high commitment of Ipsen's outstanding teams I have been proud to lead and the strict implementation of our strategy. Owing to its proprietary technologies in peptides and protein engineering and toxin knowledge, Ipsen qualifies as one of the most promising biopharmaceutical companies. Furthermore, I am convinced that the appointment of Marc de Garidel as Chairman and Chief Executive Officer will mark a new era for the company. His recognised experience in biotechnology and his leadership will be critical in securing Ipsen's successful development as a unique global biopharmaceutical company."

Third quarter and first nine months of 2010 sales highlights

For the third quarter 2010, drug sales grew by 12.4% year-on-year (or up 9.9% at constant currency) driven by dynamic specialty care growth up 14.3% year-on-year (or 11.2% at constant currency) and solid primary care growth up 9.0% year-on-year (or up 7.6% at constant currency). These performances are related to the sustained growth of the endocrinology and neurology franchises respectively up 23.3% and 21.2% and a solid quarterly performance of the gastroenterology franchise up 21.4%. Third quarter sales also benefited from anticipated orders from our distributors in Russia ahead of the implementation on September 1^st of a new law on the packaging of imported drugs. This positive, non-recurring impact on sales, is estimated at c.10 million euros and should level-out before year end.

For the first nine months 2010, consolidated Group sales reached €842.1 million, up 8.3% year-on-year (or up 7.0% at constant currency).

Drug sales over the first nine months of 2010 grew by 8.6% year-on-year (or 7.4% at constant currency), with a strong growth of Decapeptyl^®, up 8.4% year-on-year (or up 8.2% at constant currency) due to launches of Decapeptyl^® 3-month formulation in China in the treatment of prostate cancer and the new 6-month formulation in France. The continued solid growth of the endocrinology franchise, up 22.2% year-on-year (or up 19.8% at constant currency), reflects strong performances of all products as well as Ipsen's presence in North America. Drug sales were also fuelled by the growth of the neurology franchise, up 17.3% year-on-year (or 13.3% at constant currency).

Specialty Care sales reached €535.4 million, up 15.2% year-on-year (or up 13.4% at constant currency), representing 63.6% of the Group's consolidated sales, against 59.8% a year earlier. Primary care sales reached €282.3 million, down 2.0% (or down 2.4% at constant currency), representing 33.5% of the Group's consolidated sales, against 37.0% a year earlier.

Sales in Major Western European countries amounted to €411.7 million, stable year-on-year (or slightly down 0.3% at constant currency).

Sales generated in the Other European countries reached €203.8 million, up 15.9% year-on-year (or up 14,6% at constant currency), fuelled by sustained growth, notably in Turkey, Nordic countries and Switzerland and a sharp recovery from a low first quarter 2009 in Eastern European countries. Third quarter sales in Russia benefited from the stocking effect described above.

Sales generated in North America reached €43.9 million, up 31.0% year-on-year (or up 26.3% at constant currency).. Over the period, Somatuline^® Depot grew 49.9% at constant currency. Sales of Dysport^® in cervical dystonia were still limited, following a successful product experience phase after its launch late 2009. Overall, the total number of unique commercial accounts set-up year-to-date are above plan and Dysport^® customer experience feedbacks show a strongly positive appreciation of the clinical experience and of the quality of services provided.

Sales generated in the Rest of the World reached €182.7 million, up 16.9% year-on-year (or up 13.0% at constant currency), notably driven by strong volume growth of Decapeptyl^® in China. Sales in Brazil, Australia, Iran and Mexico remained strong while changes in importation regulations in Algeria at the end of 2009 affected the timing of local sales.

2010 sales objectives

Based on its strong sales performance over the first nine months of 2010 and on information currently available, the Group believes it should be able to deliver on the upper range of its 3.0% to 5.0% total Drug sales target growth year-on-year for 2010.