Ipsen presents its new strategy and improved 2020 financial targets
2020 sales to exceed €2.5 billion
driven by Specialty Care sales growth above 14% per year1 with a Group Core Operating Income margin greater than 30% of sales
Ipsen (Euronext: IPN; ADR: IPSEY), a global specialty-driven pharmaceutical group, will today host an Investor Day at which the management team will provide a comprehensive update on its current business, corporate strategy and outlook.
David Meek, Chief Executive Officer of Ipsen said: “There is tremendous momentum at Ipsen. Our Specialty Care business is driving top-line growth which is outpacing that of our peers and the industry. We are benefiting from a growing focus in Oncology, which already represents almost €1 billion in sales, and from increasing geographical diversification, with a strengthening presence in the U.S. Looking forward, we are focused on driving continued double-digit growth, improving profitability and building a sustainable pipeline of innovative and differentiated assets to deliver our improved 2020 guidance and create long-term value to our patients and shareholders.”
In Specialty Care, Ipsen is focused on three key therapeutic areas, Oncology, Neurosciences and Rare diseases, where Ipsen can establish a leadership position and leverage its expertise from drug development to commercialization. To complement the continued execution on its key products including the important launches of Cabometyx® and Onivyde®, Ipsen has defined a targeted and dynamic innovation model to accelerate Specialty Care growth.
To build a sustainable pipeline of innovative assets, Ipsen will transform the R&D model by accelerating focused internal projects, de-prioritizing select internal programs and externally sourcing assets.
Ipsen will continue to invest in business development through innovative deal structures with a focus on early to mid-stage assets in the three key therapeutic areas, targeting best-in-class, wholly-owned assets with global rights.
In Consumer Healthcare, to establish a sustainable and growing business, Ipsen will complete the OTx2 model transformation and leverage the three main market-leading brands through consumer innovations, capture the underlying market growth in emerging markets and strengthen the European business.
Updated 2020 financial targets
Ipsen provides improved 2020 financial targets to reflect the contribution of the acquisitions announced in early 2017, the change of definition of Core Operating Income (to exclude the amortization of intangible assets and the gain or loss on disposal of fixed assets) and the strong performance of the Specialty Care business over the last 15 months:
- Sales greater than €2.5 billion, including Specialty Care sales growth of greater than 14% per year over the period 2016-2020 and Consumer Healthcare sales growth between 4% and 6% per year;
- Core Operating Income margin greater than 30%.
This guidance includes the contribution from the recent 2017 acquisitions and excludes the impact from any further business development (other than development costs associated with potential new early to mid-stage R&D assets). It also covers the impact from potential Somatuline® competitive threats.
Ipsen will also outline its priorities for capital allocation, which include capital expenditures, business development, dividend, and anti-dilutionary share buybacks to support its ambition to increase shareholder return.
1 Compound Annual Growth Rate (CAGR) for the period 2016-2020
2 OTx: Combination of prescripton and over-the-counter