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Ipsen SA (IPSEF) Full Year 2024 Earnings Call Highlights: Strong Sales Growth and Strategic ...

In This Article:

  • Total Sales Growth: 9.9% at constant exchange rates, exceeding EUR3.4 billion.

  • Core Operating Margin: 32.6%.

  • Core Operating Income: EUR1.1 billion, a growth of 10.8%.

  • Free Cash Flow: EUR774 million, an increase of 8.9%.

  • Revenue from Ex-Somatuline Portfolio: Grew by 12.2%.

  • Cabometyx Sales: Increased by 13.3% for the full year.

  • ONIVYDE Sales: Grew 23.7% for the full year.

  • Fidrisertib Sales: Rose by 24%.

  • Dysport Sales Growth: 9.2% for the full year.

  • Bylvay Sales: EUR136 million.

  • IQIRVO Sales: EUR22 million.

  • R&D Costs: Increased by 10.9%, exceeding 20% of sales.

  • SG&A Costs: Increased by 3.3%, with a ratio to sales at 34.4%.

  • Net Cash Position: EUR160 million at the end of December.

  • Dividend Increase: From EUR1.2 to EUR1.4 per share.

Release Date: February 13, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Ipsen SA (IPSEF) reported a 9.9% increase in total sales for 2024, driven by strong performance in their ex-somatuline portfolio.

  • The company achieved a core operating margin of 32.6%, reflecting efficient cost management and strong sales performance.

  • Ipsen SA (IPSEF) received a positive FDA decision for ONIVYDE in first-line pancreatic ductal adenocarcinoma, with subsequent approvals in the US and EU.

  • The company anticipates significant pipeline milestones in 2025, including potential approvals for Cabometyx in neuroendocrine tumors and Tovorafenib in Europe.

  • Ipsen SA (IPSEF) has a strong balance sheet with no debt and EUR 2.3 billion available for external innovation, indicating financial stability and capacity for growth.

Negative Points

  • Ipsen SA (IPSEF) faces increased competition and pricing pressure for Cabometyx in Europe and China, impacting sales growth.

  • The company recognized an impairment loss of EUR 281 million related to Sohonos due to lower-than-anticipated patient uptake.

  • Somatuline is expected to face accelerated erosion due to increased generic competition, impacting profitability.

  • The aesthetics market in the US is experiencing some softening, which could affect future growth prospects for Dysport.

  • Ipsen SA (IPSEF) anticipates a contraction in core operating profit margin in 2025 due to increased R&D expenses and competitive pressures.

Q & A Highlights

Q: Could you provide more details on the expected erosion pattern for Somatuline in 2025 and the current state of generic competition in Europe and the US? A: David Loew, CEO: The erosion pattern for Somatuline is expected to accelerate compared to historical levels due to anticipated market entry by additional generics, likely around mid-year. In Europe and the US, we have seen significant shortages from existing generics, but we expect increased competition and accelerated erosion moving forward.