Ipsen delivers strong H1 2021 results and upgrades full-year guidance

July 2021: Ipsen, a global specialty-driven biopharmaceutical company, today announced its financial results for the first half of 2021:

Strong financial results

• Total sales growth in H1 2021 of 11.0% at CER¹, or 6.5% as reported, to €1,350.3m
  • Q2 2021 total sales growth of 16.8% at CER¹, or 12.7% as reported, to €691.8m
    
• Core operating income of €479.8m (H1 2020: €410.2m); IFRS operating income of €412.2m (H1 2020: €249.8m)
  
• Core operating margin²: 35.5% (H1 2020: 32.3%). IFRS operating margin: 30.5% (H1 2020: 19.7%)
  
• Healthy balance sheet: net debt down to €336.5m, a reduction of €188.7m versus December 2020

Delivering against the strategy

• Maximizing the brands:
  • Speciality Care sales growth in H1 2021 of 11.2%¹ to €1,244.5m
  • Consumer Healthcare sales growth in H1 2021 of 8.6%¹ to €105.9m
• Strengthening the pipeline:
  • Good progress in external innovation: agreements announced in early and mid-stage pipeline
  • Regulatory submission acceptance for palovarotene in FOP in the U.S. and E.U.
  • Regulatory approval and launch of first-line renal cell carcinoma indication for Cabometyx^® (cabozantinib) in combination with nivolumab and positive Phase III results for Cabometyx^® in differentiated thyroid cancer
• Driving efficiencies:
  • Cost savings driven by reduced face-to-face activity as a result of the pandemic, and by some efficiency gains
  • Ratio of SG&A expenses to total sales declined to 35.8% (H1 2020: 37.0%)
• Focus on culture:
  • Strong momentum with Ipsen’s ambitious CSR⁴ agenda

Full-year guidance upgraded

• Total sales growth: greater than +8.0% (prior guidance: greater than +4.0%)
• Core operating margin: around 32.0% (prior guidance: greater than 30.0%)

David Loew, Chief Executive Officer, commented:

“Our strong results reflected the progress we are making with our new strategy. We continued to grow our brands, with particularly strong sales in the second quarter partly a result of the gradual lifting of pandemic confinement measures.

We achieved the important regulatory approval and launch of the combination of Cabometyx^® with nivolumab in first-line renal cell carcinoma and, while we were disappointed with the recent Phase III data readout in liver cancer, our pipeline continued to strengthen, with the positive Phase III results for Cabometyx^® in thyroid cancer and the regulatory submission of palovarotene in FOP.

This progress was coupled with recent licensing agreements in the early and mid-stage pipeline.

I was also pleased with the efficiencies achieved throughout our business, with the focus on our culture also underpinning more exciting opportunities to benefit patients and society.

Our raised expectations for our full-year results reflect the strength of our business. In the near term, we await further regulatory steps for palovarotene in the U.S. and Europe, while we continue to anticipate launches of generic lanreotide in Europe this year.

I expect Ipsen to continue to deliver, driven by a clear strategy, strong fundamentals and attractive growth opportunities, reinforced by an unrelenting focus on serving patients.”

https://www.ipsen.com/