Ipsen's six-month net income drops 10%

Profits for the first six months of 2007 at French drugmaker Ipsen fell 11.6% to 78.0 million euros ($108.4 million), equivalent to earnings per share of 0.92 euros. The decline was attributed to the combined impact of price cuts in Europe, a 3.5 million-euro loss incurred as a result of Tercica's performance, in which Ipsen holds a 25% stake, and the lack of payments for R&D work conducted on behalf of Swiss major Roche, as a result of the revised deal between the two (Marketletter July 31, 2006).

Despite this, Ipsen remained upbeat, commenting that sales had grown 7.6% to 463.2 million euros in the period, with Somatuline (lanreotide acetate), NutropinAq (controlled-release somatropin) and Dysport (botulinim toxin product), driving expansion. The firm also reiterated its guidance, forecasting a full-year total revenue increase of 4.0% to 5.0%.

Analysts at Lehman Brothers said that Ipsen's rich pipeline makes it an attractive investment proposition, and added that the FDA's decision on Somatuline for acromegaly, expected on August 30, would be the next key performance catalyst.