Research, Charts & Company Announcements
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 22-02-2017
22 Feb 17
CORETX (COR LN) Contract wins and new Lifestyle facility | Gooch & Housego (GHH LN) Solid Q1 trading plus earnings enhancing acquisition of StingRay Optics | NCC Group (NCC LN) Further issues in Assurance | PCI-PAL (PCIP LN) Strong H1 underpins positive outlook | UBM (UBM LN) Results | Verona Pharma (VRP LN) Phase IIa RPL554 add-on trial to tiotropium commenced
N+1 Singer - Morning Song 21-02-2017
21 Feb 17
Abzena (ABZA LN) Contract bookings strong; US costs higher than expected | City of London Investment Group (CLIG LN) Earnings and interim dividend in line, some modest growth in FuM | dotdigital Group (DOTD LN) Good H1; broadening avenues of growth | Grafenia (GRA LN) Weak print volumes | Vernalis (VER LN) Interims highlight increasing Tuzistra™ scrip volume
Panmure Morning Note 15-02-2017
15 Feb 17
With the early January trading update having prompted us to upgrade forecasts, today’s interim results show how the group’s focus on areas such as product development and international sales are translating through to growth in both the top and bottom-line. The consistency of delivery is what impresses us, reflecting the maturity of the management team and the clarity of the longterm vision. We repeat our Buy recommendation.
Interim results – adhering to international growth strategy
23 Feb 17
Interim results showed a strong performance for Tristel, 6% ahead of its AGM statement on 12 December at which it indicated adjusted pre-tax profits to be no less than £1.6m. Revenues increased by 22% (16% at constant exchange rates – CER or 12% CER excluding the impact of the Australian acquisition) and adjusted pre-tax profits were up 15% to £1.71m. Despite the strong half, we leave our full-year forecasts unchanged, given FX uncertainty and a one-off stocking order in H1 from the NHS, although at current FX rates the risk to our forecasts is considered to be to the upside. However, we raise our target price by 10% to 165p to reflect the solid progress as well as rolling forward our multiples to calendar-adjusted 2017.
Panmure Morning Note 20-02-2017
20 Feb 17
Chi-Med has announced the initiation of a Phase II study of savolitinib in locally advanced or metastatic pulmonary sarcomatoid carcinoma (PSC) in China. This is a disease where patients are usually diagnosed by normal pathology (i.e. not via molecular diagnostics methods) but given that 20-30% of PSC patient show c-Met gene amplification this potentially represents a very rich patient pool for savolitinib as a highly selective and potent oral c-Met inhibitor. The continued strength of Chi-Med’s clinical momentum is further demonstrated by today’s news and we consider this represents further upside potential against our existing investment case. We repeat our Buy recommendation.
13 Dec 16
Tristel has announced in its AGM statement that it expects to report first half adjusted (share-based payments) pre-tax profits to be no less than £1.6m. This compares with £1.5m in the 6 months to December 2015 and is in line with management’s expectations and stated strategic financial goals: (i) revenue growth within a range of 10% to 15% as an annual average over the 2016-19 period, (ii) maintaining a minimum pre-tax profit margin of 17.5% and (iii) distributing cash that is not required for the operational and investment needs of the business to shareholders in the form of dividends. Our forecasts for the full year are for adjusted pre-tax profits of £3.6m, and include a contribution from the acquisition of its previous Australian distributor for its Wipes System from 21 July 2016 (ie 11 months contribution in the full year). Our forecasts also include £0.5m of US development expenses for the full year (incremental £370k), which impacts margins by c190bps. We make no changes to either our forecast or target price; however, note that risks to both of these are on the upside.