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Research Tree provides access to ongoing research coverage, media content and regulatory news on IPSEN. We currently have 5 research reports from 1 professional analysts.
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Solid financial performance; new mid-term growth engine instilled by the CEO
12 Jan 17
Ipsen reported yet another strong quarter. The revenue for Q3 FY16 (at CER unless specified otherwise) increased by 12.2% (vs Q2 16: +14.5%), fuelled by strong growth in the speciality care ‘SC’ segment (+17.8% vs Q2 16: +18.6%; accounts for c.82% of Q3 16 sales). Within the segment, Somatuline was the largest growth contributor (+34.1% vs Q2 16: +37.4%; accounts for c.35% of Q3 16 sales), and once again drove the robust volume growth and favourable pricing trend in the North America. Moreover, the good overall performance in Europe (notably Germany, France, and the UK) further underpinned the sales of the drug. The impressive performance continued for ‘Decapeptyl’ (+6.3% vs Q2 16: +6.7%; accounts for c.22% of Q3 16 sales), aided by a strong volume uptick in Europe. Growth for Dysport decelerated to +9.3% (vs Q2 16: +12.2%; accounts for c.19% of Q3 16 sales) as the solid performance in the US aesthetics market was slightly offset by volume declines in Brazil and Russia. The dismal performance continued in the primary care ‘PC’ segment (-7.5% vs Q2 16: -0.1%; accounts for c.18% of Q3 16 sales), mainly due to the slower ramp-up of the new commercial strategy in China for Smecta (-1% vs Q2 16: +1.7%; accounts for c.6% of Q3 16 sales). Moreover, the challenging market environment for Tanakan in Russia and for Forlax in Algeria, suppressed further growth in the segment. Geographically, revenue was up 6% in major western European countries (vs Q2 16: +9.2%; accounts for c.35% of Q3 16 sales) and +4.4% in other European countries (vs Q2 16: +12.2%; accounts for c.21% of Q3 16 sales). Sales in North America increased by 72% (vs Q2 16: +75.3%; accounts for c.18% of Q3 16 sales), driven by the solid performance of key drugs – Somatuline and Dysport. ROW was up 1.8% (Q2 16: +1.1%; accounts for c.26% of Q3 16 sales). The total reported revenue grew by 10.2% (vs Q2 16: +10.5%), reflecting a -2% currency effect. Management has raised the FY16 revenue guidance for the SC business (+15% vs earlier guidance of +12%) subsequent to the strong performance witnessed in 9M FY16. Although the revenue guidance for the PC business has been lowered to c.-5% (vs slight growth earlier), Ipsen’s core operating margin guidance has been revised upwards by 100bp (vs earlier guidance). In August 2016, the US FDA approved Dysport for the treatment of paediatric lower limb (PLL) spasticity and, in September 2016, the European Commission approved cabometyx as a second line of treatment for renal cell carcinoma (RCC). Moreover, in October 2016, Ipsen (along with partner Exelixis) announced positive clinical data from its ‘Cabosun’ phase 2 trial (for use of Cabometyx in the frontline setting for RCC). In January 2017, Ipsen acquired US commercialisation rights for oncology drug ‘Onivyde’, from Merrimack Pharma. The drug is approved as a second-line of treatment for metastatic pancreatic cancer and is the only FDA approved drug in this indication (post gemcitabine-based therapy). The deal (expected to close in Q1 17) involves payment of $575m in cash and up to $450m in additional milestones, contingent upon the approval of Onivyde for other potential indications in the US.
Q1 negatively impacted by RoW
28 Apr 16
Q1 sales grew 4.7% at CER and 3.4% as reported, including +9.7% at CER for speciality care and -11% for primary care. Sales increased by 74.7% at CER in North America (c.15% of total sales) and by 3.7% in major Western European countries (39% of total sales). The significant decrease in the RoW accounts for 24% of total sales (-16.1% at CER and -18.6% as reported).
07 Mar 16
1/ Q4 sales were up 21.3% at CER (FY15 +10.4%). Operating income increased by 10.2% and the group’s net income by 23.7%. Operating cash flow decreased by 9% to 15.5% of sales (vs. 19.3% in FY14). 2/ Management announced the in-licensing of the global rights ex North America and Japan of cabozantinib for the second-line treatment of advanced renal cell carcinoma, for which commercial launch is expected in 2017 in Europe.
Strong Somatuline and progress in neuro-endocrine studies
04 Aug 15
1/ Q2 sales increased by 9.3% (+4.5% at CER). H1 increase was 11.8% (+7.9% at CER). H1 current operating income increased by 3.2%. Operating CF fell by 33.8% (+11.2% before changes in working capital). 2/ Ipsen’s partner, Lexicon Pharmaceuticals, announced positive results from the TELESTAR phase 3 study showing that telotristat etiprate is effective in the treatment of carcinoid syndrome caused by neuroendocrine tumors not adequately controlled by somatostatin analogs
N+1 Singer - Morning Song 21-03-2017
21 Mar 17
accesso Technology (ACSO LN) Full year results in line, but key trading months still ahead | Augean (AUG LN) Double digit growth in ’16, good start to ‘17 | Earthport (EPO LN) Interims show continued top line strength | Goals Soccer Centres (GOAL LN) Good momentum under new team. It’s now all about delivery | IQE (IQE LN) FY’16 results prompt further upgrades | Microsaic Systems (MSYS LN) Challenges in 2016, strategy remains in place | mporium Group (MPM LN) Funds raised to help execute strategy | RhythmOne (RTHM LN) Dawn of the independents | ScS Group (SCS LN) Strong progress on key growth initiatives albeit comps now toughen | Sinclair Pharma (SPH LN) FY results: EBITDA ahead, Instalift™ gaining pace | Vectura Group (VEC LN) FY (9-month) results
N+1 Singer - EKF Diagnostics - Final results & potential buy back
20 Mar 17
FY16 prelims are slightly ahead of our latest expectations, those having been increased materially over the course of H2’16 as the strength of the recovery in trading became apparent. In order to maximise shareholder value, the directors are currently examining a potential break up of the group. This would also involve a delisting from AIM. A buy back offer at 21.5p would therefore be made to those investors that wish to exit now rather than holding their shares for the two years plus it would likely take to achieve a potentially higher realisation value for the businesses.
N+1 Singer - Morning Song 22-03-2017
22 Mar 17
Carador Income Fund (CIFU LN) Premium rating restored, high levels of refinancing activity | Cello Group (CLL LN) Outlook getting brighter – watch Pulsar | Eckoh (ECK LN) Largest ever US secure payments win | eg solutions (EGS LN) Full year results in line | Futura Medical (FUM LN) Licensing deal for CSD500 in Portugal | Verona Pharma (VRP LN) Global agreement with QuintilesIMS to support development of RPL554 | Xaar (XAR LN) 2016 results slightly ahead, reduced visibility in 2017
Good results, but further restructuring complex for investors
20 Mar 17
EKF Diagnostics FY 2016 results are slightly ahead of expectations, with both higher revenue and better EBITDA. Management has also announced plans to split the company into two separate companies, Point of Care and Laboratory Diagnostics, with the prospect of a delisting to manage the process. The primary metric for valuation of the two businesses is different consequently we believe that the separation is likely to generate significant value. However, in anticipation of the volatility likely given the restructuring announced this morning, despite the strength of the results, we reduce our recommendation to HOLD and maintain our 21p target price.