On April 28, 2016 Ipsen (Euronext: IPN; ADR: IPSEY) reported its sales for the first quarter 2016 (Press release, Ipsen, APR 28, 2016, View Source [SID:1234511572]). Schedule your 30 min Free 1stOncology Demo! First quarter 2016 unaudited IFRS consolidated sales (in million euros) Q1 2016 Q1 2015 % Change % Change at constant currency Specialty care 288.1 265.7 8.4% 9.7% of which Somatuline 121.7 89.3 36.3% 36.3% of which Decapeptyl 78.2 82.9 -5,6% -4.6% of which Dysport 63.2 68.6 -7.9% -4.2% Primary care* 73.9 84.4 -12.4% -11.0% of which Smecta 29.3 35.9 -18.6% -16,9% of which Forlax 10.0 9.1 10.6% 11.5% of which Tanakan 9.8 10.5 -6.9% -4.1% Group Sales 362.0 350.1 3.4% 4.7% * Drug-related sales (active ingredients and raw materials) are recorded within Primary care sales.
Discover why more than 1,500 members use 1stOncology™ to excel in:
Early/Late Stage Pipeline Development - Target Scouting - Clinical Biomarkers - Indication Selection & Expansion - BD&L Contacts - Conference Reports - Combinatorial Drug Settings - Companion Diagnostics - Drug Repositioning - First-in-class Analysis - Competitive Analysis - Deals & Licensing
Schedule Your 30 min Free Demo!
Commenting on the first quarter 2016 performance, Marc de Garidel, Chairman and Chief Executive Officer of Ipsen said: "In the first quarter, the Group continued to benefit from the acceleration of the growth of Somatuline in neuroendocrine tumors, both in the United States and Europe. However, the environment in emerging markets, especially in China, is still adversely affecting the performance of Decapeptyl and the primary care." Marc de Garidel added: "We are fully committed, upon regulatory approval, to preparing the upcoming commercial launches of cabozantinib in advanced renal cell carcinoma in Europe, and Dysport in pediatric lower limb spasticity in the United States."
First quarter 2016 sales highlights
Note: Unless stated otherwise, all variations in sales are stated excluding foreign exchange impacts.
Consolidated Group sales grew 4.7% to €362.0 million.
Sales of Specialty care products reached €288.1 million, up 9.7% year-on-year. Oncology sales grew by 16.3% while neurosciences and endocrinology sales decreased by respectively 3.9% and 1.4%. The relative weight of specialty care continued to increase to reach 79.6% of Group sales, compared to 75.9% the previous year.
Sales of Somatuline reached €121.7 million, up 36.3%, driven by a strong growth in North America following the launch of the new indication of neuroendocrine tumors at the beginning of 2015, and the strong performance in most European countries, notably in Germany, France, Poland, Italy and the UK.
Sales of Dysport reached €63.2 million, down 4.2% year-on-year impacted by unfavorable inventory effects in the aesthetic indication through the Galderma partnership. These effects were partly offset by a very good performance in Russia and to a lesser extent in Germany and the United States with a limited growth in therapeutic sales.
Sales of Decapeptyl reached €78.2 million, down 4.6% year-on-year, mainly impacted by negative inventory effects in the Middle East and Algeria. In China, the product suffered from a high comparison base in the first quarter 2015, and from increased price pressure in some provinces. However, the product registered a good performance in some European countries especially in Russia, the United Kingdom and Belgium.
Primary care sales reached €73.9 million, down 11.0% year-on-year. International sales declined 13.7%, while sales were down 3.6% in France. Over the period, primary care sales represented 20.4% of total Group sales, compared to 24.1% the previous year.
Sales of Smecta reached €29.3 million, down 16.9% year-on-year, affected by inventory effects in China related to the change in business model in a slower market.
Sales of Forlax reached €10.0 million, up 11.5%, driven by supply sales to the Group’s partners in charge of marketing the generic versions of the product.
Sales of Tanakan reached €9.8 million, down 4.1% year-on-year, penalized by a market slowdown in France and in Russia.
2016 financial objectives
The Group confirms its financial targets for 2016:
Specialty care sales growth year-on-year in excess of 10.0%;
Slight primary care sales growth year-on-year;
Core operating margin of around 21%, including the impact from the investment required to prepare the commercial launch of cabozantinib for the treatment of advanced renal cell carcinoma in Europe.
Sales objectives are set at constant currency.