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Ipsen's (IPSEY) CEO Marc de Garidel on H1 2015 Results - Earnings Call Transcript

Ipsen S.A. ADR (OTCPK:IPSEY) H1 2015 Earnings Conference Call July 31, 1969 8:30 AM ET


Marc de Garidel - Chairman & CEO

So, good afternoon. Welcome to our H1 results at Ipsen. So, I am Marc de Garidel, I am the Chairman and CEO. Today we will have the pleasure also to have Christel Bories, Deputy CEO, and Aymeric, Chief Financial Officer, speaking as well. So, you are familiar with the disclaimer and the forward-looking statements, Safe Harbor. So, I'd like to present to you first the agenda.

So, the agenda is going to be first a quick overview, a reminder of the strategy that I presented a few weeks ago, and some highlights about our H1 performance. Then Christel will go through the detailed performance review. It will be followed by Aymeric, who will describe the financial impact of our performance. And then I'll come back at the end to discuss our guidance, our new guidance for 2015. And we will obviously take questions at the end, first in the room and then with the operator.

So, in early July, we presented you an update of Ipsen’s strategy in terms of where we are headed for the next five years. This strategy is about increased focus in the Specialty Care segment where we derive about three-fourths of our business, even a bit more these days. We are concentrating essentially on key diseases including neuroendocrine tumors, as well as spasticity. We will obviously leverage furthermore our presence in neuro-oncology with Decapeptyl and our presence in adult endocrinology. And then opportunistically we will explore avenues in the field of GI oncology and orphan oncology.

On Primary Care, which I think was probably more new for our shareholders. We are going to focus on GI, so an area where historically Ipsen has been strong. We are going to also try to shift away from reimbursement markets so to go into the OTx. And we want to expand our geographic footprint because today we are very dependent on three markets, which are France, China and Russia.

So this strategy leads to an ambition of an acceleration of growth in sales first 6% to 8%, that’s what we are predicting and the H1 results go definitely in that direction. And also more importantly it’s an increasing profit where Ipsen wants to get closer to its peers with a target of 26% on sales for the core operating income.

So, if we look now at the H1 performance, we can be I think satisfied overall with the results that have been driven by the good performance of the Specialty business. More specifically, we see really a star at Ipsen these days, which is Somatuline, Somatuline growing at a very, very fast pace thanks to the good launch in Europe but also importantly solidly in the US.

The third element which is important for the future on top Somatuline was the approval of the FDA for a new claim for Dysport in adult upper limb, which will help us in the future. And in addition, it’s important to note that despite the fact that we have had some very successful Phase III results in the last two years. This is important to continue to replenish our portfolio. And this is what we have done through business development activities completing two deals in H1.

So just a last point before I turn over to Christel, who will present the detail review of the performance. I think strategically it is also very important to realize that Ipsen is now addressing successfully one of the weak elements of our geographic footprint and that was in United States.