Press Release

Ipsen delivered sales growth and margin expansion in 2020 – Focused on executing new strategy and delivering financial objectives in 2021

  • Solid full year 2020 results in a COVID-19 environment, with Group sales growth of 3.0%1 and Core Operating margin at 32.0%
  • 2021 guidance of Group sales growth greater than 4.0% at constant currency and Core Operating margin greater than 30.0% of the sales
  • 2021 priority to execute new Group strategy, highlighted by external innovation efforts to fuel future growth as well as pipeline advancements to maximize the value of Ipsen’s current portfolio


Paris (France), 11 February 2021 – Ipsen (Euronext: IPN; ADR: IPSEY), a global specialty-driven biopharmaceutical group, today announced its financial results for the full year 2020.

  • Solid full year 2020 financial results in a COVID-19 environment
    • Group sales of €2,592 million, growing by 3.0%1 at constant currency or 0.6% as reported, driven by Specialty Care sales growth of 5.9%1, reflecting a resilient oncology portfolio, while Consumer Healthcare sales were down 21.3%1 mostly due to the impact of COVID-19.
    • Core Operating margin at 32.0% of the sales, up 1.6 points. IFRS Operating margin at 20.1% of the sales, up 21.4 points.
    • Core consolidated net profit of €610.5 million, with fully diluted Core EPS growing by 8.4% to reach €7.31. IFRS Consolidated net profit showing a gain of €548.9 million, with IFRS net earnings per share of €6.57.
    • Sound financial structure, with a closing Net Debt of €525.3 million and a Net Debt to EBITDA ratio of 0.6x. Strong Free Cash Flow at €646.4 million, up 38%, mainly driven by higher Operating Cash Flow.
  • Advancing solid pipeline in H2 2020
    • Cabometyx® (cabozantinib) in combination with nivolumab for 1L renal cell carcinoma (RCC) filing with EMA based on successful Phase 3 CheckMate -9ER;
    • Onivyde® (irinotecan liposome injection) received Fast Track designation from the FDA for 2L Small Cell Lung Cancer (SCLC);
    • Palovarotene on track for NDA and MAA submissions for fibrodysplasia ossificans progressiva (FOP).
  • Proposed dividend of €1.00 per share2 for the 2020 financial year, consistent with the prior year.
  • 2021 guidance3 of Group sales growth greater than 4.0% at constant currency and Core Operating margin greater than 30.0% of the sales.
  • Executing on new strategy presented in December 2020: Together. For patients and society.


David Loew, Chief Executive Officer of Ipsen, stated:I am truly proud of Ipsen’s performance in 2020. We met our financial objectives, delivering steady top-line growth, significant core operating margin expansion and strong cash flow generation to fund our external innovation strategy.  The fact these achievements took place against the backdrop of the pandemic is remarkable and speaks to the dedication and patient-centricity of our highly motivated employees. We made encouraging pipeline progress, especially in Oncology.  In December we announced our new strategy which will drive long-term value for all our stakeholders: Focus. Together. For patients & society. While the world continues to face uncertain business conditions in 2021, I am confident that Ipsen will build on its strong foundations and execute on its strategy to deliver another successful year.”


New Strategy

Ipsen is executing on the four key pillars of its new strategy presented in December 2020:

  • The Group is focused on maximizing the value of its current Specialty Care product portfolio through commercial excellence and geographic expansion. It aims to maximize its core brands and capture the full potential of its innovative oncology products. A strategic review of the Consumer Healthcare business is proceeding.
  • Ipsen’s priority is to build a sustainable pipeline to drive long-term growth. Recent initiatives have prioritized the pipeline on the highest potential opportunities and progressed the transformation of the R&D organization. Ipsen is strengthening its external innovation efforts by targeting differentiated medicines in its three core therapeutics areas of Oncology, Rare Disease and Neuroscience, with a broader disease and modality scope than previously defined, and across all stages of clinical development.
  • The company is committed to generating efficiencies through a focused and agile operating model. Leveraging smart spending, streamlined operations, manufacturing efficiencies and optimizing digitalization, the Group will be able to reinvest in R&D and external innovation to fuel future growth.
  • Patients and society are at the core of Ipsen’s mission, starting with fully engaged employees and a culture of accountability to perform and compete in the long term. Ipsen is highly committed to its corporate social responsibility (CSR) initiatives which are centered around employees, community and the environment, as reflected throughout the organization and in the inclusion of responsibility metrics in management compensation.


Comparison of 2020 performance with financial objectives

The Group exceeded its Full Year 2020 guidance provided in July 2020 as shown in the table below:

2020 Financial objectives 2020 Actuals

Group sales growth

(at constant exchange rate)

> 2.0%1 +3.0%1
Core Operating margin
(as a percentage of the sales)
> 30.0% 32.0%


2021 Financial guidance

The Group has set the following financial targets for the current year, assuming a progressive recovery from COVID-19 by H2 2021:

  • Group sales growth year-on-year greater than 4.0% at constant currency1, with an expected negative 3.0% impact of currency based on the level of exchange rates at the end of January 2021;
  • Core Operating margin greater than 30.0% of the sales, excluding any potential impact of incremental investments from external innovation.

This guidance assumes a phased launch of lanreotide generic in Europe by mid-2021 and a limited impact in case of a potential launch of octreotide or lanreotide generics in the U.S.


Review of full year 2020 results

Extract of audited consolidated results for the full year 2020 and 2019

(in milions of euros) FY 2020 FY 2019 % change % change at constant currency1
Group sales 2,591.6 2,576.2 +0.6% +3.0%
Specialty Care sales 2,381.1 2,299.4 +3.5% +5.9%
Consumer Healthcare sales 210.6 276.8 -23.9% -21.3%
Core Operating Income 829.3 782.6 +6.0%

Core Operating margin

(as a % of the sales)

32.0% 30.4% +1.6 pts
Core consolidated net profit 610.5 563.4 +8.4%
Core EPS – fully diluted (€) 7.31 6.74 +8.4%
Operating Income 521.0 (33.4) N.A.

Operating margin

(as a % of the sales)

20,1% -1.3% +21.4 pts
Consolidated net profit 548.9 (50.2) N.A.
EPS – fully diluted (€) 6.57 (0.61) N.A.

Group sales reached €2,591.6 million, up 3.0%1 year-on-year.

Specialty Care sales reached €2,381.1 million, up 5.9%1, driven by the continued strong growth of Somatuline® (lanreotide) and Cabometyx. Somatuline growth of 13.1%1 was driven by continued positive momentum in North America with a double-digit growth (17.0%1) and solid performance throughout Europe despite the availability of the octreotide generic. Dysport® (botulinum toxin type A) down by 3.4%1, was impacted in most geographies by the closure of treatment centers resulting from COVID-19 despite a faster recovery in the aesthetics market. Decapeptyl® (triptorelin) sales reflected good volume growth across Major European countries offset by lower volumes in China.

Consumer Healthcare sales reached €210.6 million, down 21.3%1, mainly due to a decline in Smecta® (diosmectite) sales impacted by COVID-19, the implementation of hospital central procurement in China and lower performance in France.

Core Operating Income reached €829.3 million in 2020, compared to €782.6 million in 2019, a growth of 6.0%, driven by sales growth, Group-wide efficiencies and costs savings with less travel, medical and marketing expenses due to COVID-19 partially offset by continued investment in R&D to advance key programs in Oncology, Rare Disease and Neuroscience.

Core Operating margin reached 32.0% of the sales, up 1.6 points compared to 2019.

Core consolidated net profit was €610.5 million in 2020, an increase of 8.4% versus €563.4 million in 2019, driven by higher Core Operating Income.

Fully diluted Core EPS (earnings per share) grew by 8.4% to reach €7.31, compared to €6.74 in 2019.

IFRS Fully diluted EPS was a net profit per share amounting to €6.57 versus a net loss of €0.61 in 2019.

Free Cash Flow reached €646.4 million, up by €178.7 million, mainly driven by higher Operating Cash Flow thanks to a lower level of capital expenditures and working capital partly offset by higher cash out from restructuring costs, financial result and current income tax.

Closing net debt reached €525.3 million at the end of 2020, as compared to closing net debt in 2019 of €1,115.6 million.


Conference call

Ipsen will hold a conference call Thursday, 11 February 2021 at 2:30 p.m. (Paris time, GMT+1). Participants should dial in to the call approximately five to ten minutes prior to its start. No reservation is required to participate in the conference call.


Participants can register for the call on the link below:

Webcast link:


Standard International: +44 (0) 2071 928 000

France and continental Europe: +33 (0) 1 76 70 07 94

UK: 08445 718 892

U.S.: (631) 510-7495

Conference ID: 8302029


A recording will be available for seven days on Ipsen’s website.

1. Year-on-year growth excluding foreign exchange impact established by recalculating sales for the relevant period at the rate used for the previous period.
2. Decided by the Ipsen S.A. board of directors, which met on 10 February 2021, to propose at the annual shareholder’s meeting on 27 May 2021.
3. Excluding any potential impact of incremental investments from external innovation, assuming phased launch of lanreotide generic in Europe by mid-2021 and limited impact in case of potential launch of octreotide or lanreotide generics in the U.S.

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