Ipsen delivers strong results for the first half of 2019, Consolidated net profit up 11.8%

PARIS–(BUSINESS WIRE)–Regulatory News:

Ipsen (Euronext: IPN; ADR: IPSEY), a global specialty-driven biopharmaceutical group, today announced financial results for the first half of 2019.

Extract of audited consolidated results for H1 2019 and 2018

David Meek, Chief Executive Officer of Ipsen, stated: “In the first half of 2019, the strong operational execution of our growth strategy led to robust double-digit sales growth, continued Core Operating margin expansion and an upgrade in our sales guidance for full year 2019. The value of our pipeline was further strengthened by the closing of the Clementia acquisition and promising interim Phase 2 data for Onivyde in first-line pancreatic cancer. Going forward, we will continue to advance our strategic priorities to deliver sustained top-line, bottom-line and pipeline growth.”

Upgraded Full Year 2019 guidance

• Group sales growth greater than +14.0% at constant currency and consolidation scope¹ (versus initial guidance of greater than +13.0%)
  • Impact of currencies estimated at +1.5% based on the current level of exchange rates
  • Impact of consolidation scope reflecting the consolidation under the equity method for joint arrangements related to the Schwabe partnership estimated at -1.0%
• Core Operating margin at around 30.0% of net sales, including the impact of Clementia but excluding potential incremental investments in pipeline expansion initiatives

¹ Subsidiaries involved in the partnership between Ipsen and Schwabe Group are consolidated in accordance with the equity method starting 1 January, 2019. Year-on-year growth excluding foreign exchange impact established by recalculating net sales for the relevant period at the rate used for the previous period.

Q2 2019 Pipeline highlights

• 17 April: Completion of the Clementia Pharmaceuticals acquisition
• 24 June: U.S. FDA approval of the Somatuline New Delivery System
• 5 July: Presentation at ESMO-GI of promising interim data from the Phase 1/2 study of the investigational use of Onivyde^® in combination with 5-fluorouracil/leucovorin (5-FU/LV) and oxaliplatin (OX) in study patients with previously untreated metastatic pancreatic ductal adenocarcinoma cancer (PDAC)

H1 2019 Financial highlights

• Group sales growth of 15.5% as reported and 14.3% at constant exchange rates and consolidation scope¹, driven by the strong performance of Specialty Care across all major products and geographies.
• Core Operating margin at 31.5% of net sales, up 1.2 points and Core Operating Income growth of 20.1% after higher R&D investments including Clementia

IFRS operating margin at 25.8% of net sales, up 0.5 points and IFRS Operating Income growth of 17.8%.

Refinancing update

• Full refinancing following the acquisition of Clementia Pharmaceuticals to increase debt capacity for future business development, extend the maturity horizon and diversify sources of financing.
• 24 May: Signature of a new 5-year revolving credit facility (RCF) of €1.5 billion with two possible one-year extensions to replace existing bank facilities with specific indicators linked to CSR (Corporate Social Responsibility).
• 23 July: Closing of a $300 million dual-tranche issuance of notes with 7- and 10-year maturities on the U.S. market (U.S. Private Placement – USPP) from a group of long-term U.S. investors.