Ipsen S.A. (IPN.PA) | Investment Case

1. Company Snapshot

1.a. Company Description

Ipsen S.A. operates as a biopharmaceutical company worldwide.The company provides drugs in the areas of oncology, neuroscience, gastroenterology, cognitive disorders, and rare diseases.It offers Somatuline for neuroendocrine tumors and acromegaly; Decapeptyl for the treatment of advanced metastatic prostate cancer; Cabometyx for renal cell and second-line hepatocellular carcinoma; Onivyde for second-line metastatic pancreatic cancer; Dysport for motor muscular disorders and medical aesthetics; NutropinAq for growth failure in children due to growth hormone (GH) deficiency, turner syndrome, chronic renal failure, and GH deficiency in adults; and Increlex for growth failure in children and adolescents.

The company also offers Smecta for chronic and acute diarrhea, and pain associated with functional bowel diseases; Forlax for constipation; Fortrans/Eziclen for bowel cleansing prior to endoscopy, X-ray examination, and colonic surgery; and Tanakan for cognitive disorders in adults, vertigo of vestibular origin and vestibular rehabilitation, and tinnitus.In addition, it provides Xermelo for the carcinoid syndrome; Cometriq for medullary thyroid cancer; Smebiocta/SmectaFlora Protect, a food supplement; SmectaGas, a medical device used in the symptomatic treatment of gas-related gastrointestinal disorders and relief of gas-related symptoms; and Etiasa for inflammatory bowel diseases.Further, the company offers other consumer healthcare products in the gastro-intestinal area, including Buscopan, Clin4000, Prontalgine, Suppositoria Glycerini, Mucothiol, Floractin, and Mucodyne.

Ipsen S.A. has agreements with Debiopharm; Exelixis; Galderma; Blueprint Medicines; TerSera Therapeutics; Rhythm Pharmaceuticals; Teijin; Braintree Laboratories; Ethypharm; Schwabe; BAKX Therapeutics Inc.; and Exicure.The company was founded in 1929 and is headquartered in Boulogne-Billancourt, France.

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1.b. Last Insights on IPN

Ipsen's recent performance has been driven by strong sales growth, particularly in its Rare Disease, Neuroscience, and Oncology therapeutic areas. The company's H1 2025 results showed total sales growth of 11.4% at CER, with core operating income growing 21.9%. Ipsen has upgraded its full-year guidance, expecting total sales growth greater than 10% at CER. Additionally, the company has been engaging in a share buyback program, repurchasing shares in recent weeks. Ipsen's acquisition of ImCheck Therapeutics also expands its oncology pipeline.

1.c. Company Highlights

Last Price	121.9
Change Percentage	-0.41%
Open	122.7
Previous Close	122.4
Market Cap ( Millions)	10078
Volume	82417
Year High	131.6
Year Low	87.95
M A 50	121.31
M A 200	110.4

FCF Yield	8.01%
Dividend Yield	1.15%
ROE	10.65%
Debt / Equity	22.74%
Net Debt / EBIDTA	-35.88%
Price To Book	2.38
Price Earnings Ratio	22.51
Price To FCF	12.49
Price To sales	2.77
EV / EBITDA	7.12

2. Ipsen's Full Year 2024 Results

Ipsen delivered a strong financial performance in 2024, with total sales exceeding €3.4 billion, growing by 9.9% at constant exchange rates. The company's core operating income grew by 10.8% to €1.1 billion, while free cash flow increased by 8.9% to €774 million. This robust performance was driven by oncology, rare disease, and neuroscience, with significant contributions from Cabometyx, ONIVYDE, and Dysport. As Aymeric Le Chatelier highlighted, "Our sales performance in 2024 was driven by oncology, rare disease, and neuroscience."

Publication Date: Feb -18

                                    📋 Highlights
                                    Sales Growth:
                                                Ipsen's sales grew by 9.9% at constant exchange rates, driven by strong performance in ex-Somatuline portfolio.
Oncology and Rare Disease Performance:
                                                Oncology performed well, driven by Cabometyx and ONIVYDE launch, while rare disease continues to stand out, driven by Bylvay and IQIRVO.
Pipeline Progress:
                                                Ipsen's pipeline has made significant progress, including positive FDA decision for ONIVYDE in first-line pancreatic ductal adenocarcinoma and U.S. approval of IQIRVO, with four key milestones anticipated in 2025.
Financial Performance:
                                                Core operating income grew by 10.8% to €1.1 billion, while free cash flow increased by 8.9% to €774 million, with a strong balance sheet and €2.3 billion of firepower available for external innovation.
2025 Guidance:
                                                Ipsen anticipates a core operating margin of at least 30% in 2025, with expectations of top-line growth, advancing pipeline, and evaluating external innovation opportunities to strengthen the portfolio.

                                

Segment Performance

Oncology performed well, reflecting the growth of Cabometyx and the launch of ONIVYDE. Rare disease continues to stand out, driven by the sustained success of Bylvay and the first-time contribution of IQIRVO. Neuroscience delivered strong and consistent growth, with Dysport sales increasing by 9.2% for the full year.

Pipeline Progress

Ipsen's pipeline has made significant progress, with a positive FDA decision for ONIVYDE in first-line pancreatic ductal adenocarcinoma and U.S. approval of IQIRVO in June. The company anticipates four key milestones in 2025, including the anticipated approval of Cabometyx in neuroendocrine tumors in the EU. Christelle Huguet emphasized the company's well-balanced pipeline across three therapeutic areas and phases of clinical development.

Guidance and Outlook

Ipsen expects continued top-line growth based on its strong portfolio and solid 2024 results. The company anticipates an accelerated erosion pattern in 2025 due to generic entry, with a core operating profit margin guidance of at least 30%. Ipsen is confident in its mid-term outlook for margin, targeting at least 32% by 2027. With a strong balance sheet, no debt, and €2.3 billion of firepower available for external innovation, Ipsen is well-positioned for future growth.

Valuation Metrics

Based on current valuation metrics, Ipsen trades at a PE ratio of 13.07, a price-to-sales ratio of 2.75, and an enterprise value to EBITDA ratio of 8.27. The company's dividend yield stands at 1.08%, with a free cash flow yield of 8.35%. Ipsen's ROIC and ROE are 13.18% and 17.31%, respectively, indicating a strong financial position.

3. NewsRoom

IPSEN - Buy-back programme - Art 5 of MAR - Week 48 - 2025

Dec -02

Source:

Ipsen mourns the passing of Henri Beaufour, a founding family Board member

Dec -01

Source:

Is Ipsen’s Acquisition the Catalyst for a Better Value in 2025?

Nov -28

Source:

IPSEN - Buy-back programme - Art 5 of MAR - Week 47 - 2025

Nov -25

Source:

IPSEN - Buy-back programme - Art 5 of MAR - Week 46 - 2025

Nov -19

Source:

Cervical Dystonia Research Analysis Report 2025-2035: Market Sees Intense Competition as Ipsen, Merz, and AbbVie Advance Therapies Through Strategic Expansions

Nov -18

Source:

IPSEN - Buy-back programme - Art 5 of MAR - Week 45 - 2025

Nov -12

Source:

Ipsen (ENXTPA:IPN) Valuation in Focus After Promising Long-Term PBC Data Revealed at AASLD Conference

Nov -12

Source:

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.86%)

6. Segments

Oncology

Expected Growth: 5%

Ipsen's Oncology segment growth is driven by increasing demand for cancer treatments, strong pipeline of innovative therapies, strategic partnerships, and expansion into emerging markets. Additionally, growing adoption of precision medicine and increasing investment in R&D are contributing to the 5% growth rate.

Neurosciences

Expected Growth: 4%

Ipsen's Neurosciences segment growth is driven by increasing demand for innovative treatments in neurology and psychiatry, strong pipeline of novel therapies, strategic partnerships, and expansion into emerging markets. Additionally, growing awareness of neurological disorders and investments in R&D contribute to the segment's 4% growth.

Rare Diseases

Expected Growth: 7%

Ipsen's Rare Diseases segment growth is driven by increasing demand for orphan drugs, strategic partnerships, and a strong pipeline of innovative treatments. The company's focus on niche areas like neuroendocrine tumors and growth hormone deficiencies also contributes to its 7% growth. Additionally, investments in digital technologies and expansion into emerging markets further support growth.

7. Detailed Products

Somatuline

A somatostatin analogue used to treat acromegaly, a rare hormonal disorder that occurs when the pituitary gland produces too much growth hormone.

Decapeptyl

A GnRH agonist used to treat prostate cancer, endometriosis, and uterine fibroids.

NutropinAq

A recombinant human growth hormone used to treat growth hormone deficiency in children and adults.

Increlex

A recombinant human insulin-like growth factor-1 (IGF-1) used to treat growth failure in children and adults with severe primary IGF-1 deficiency.

Cabometyx

A tyrosine kinase inhibitor used to treat advanced renal cell carcinoma and hepatocellular carcinoma.

Cometriq

A tyrosine kinase inhibitor used to treat medullary thyroid cancer and advanced renal cell carcinoma.

8. Ipsen S.A.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Ipsen S.A. operates in the pharmaceutical industry, where substitutes are limited. However, the company faces competition from other pharmaceutical companies, which could lead to a moderate threat of substitutes.

Bargaining Power Of Customers

Ipsen S.A. has a diverse customer base, including hospitals, clinics, and pharmacies. The bargaining power of customers is low due to the company's strong brand reputation and the lack of alternative products.

Bargaining Power Of Suppliers

Ipsen S.A. relies on a network of suppliers for raw materials and services. The bargaining power of suppliers is moderate due to the company's dependence on a few key suppliers.

Threat Of New Entrants

The pharmaceutical industry has high barriers to entry, including significant research and development costs, regulatory hurdles, and the need for specialized expertise. This limits the threat of new entrants.

Intensity Of Rivalry

The pharmaceutical industry is highly competitive, with many established players competing for market share. Ipsen S.A. faces intense competition from other pharmaceutical companies, which could lead to a high intensity of rivalry.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	11.06%
Debt Cost	4.97%
Equity Weight	88.94%
Equity Cost	7.08%
WACC	6.84%
Leverage	12.43%

11. Quality Control: Ipsen S.A. passed 7 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Ipsen

A-Score: 5.5/10

Value: 5.0

Growth: 6.0

Quality: 7.7

Yield: 1.2

Momentum: 6.0

Volatility: 7.3

1-Year Total Return ->

Hikma Pharmaceuticals

A-Score: 5.3/10

Value: 4.9

Growth: 4.4

Quality: 6.1

Yield: 5.0

Momentum: 3.0

Volatility: 8.3

1-Year Total Return ->

Almirall

A-Score: 5.0/10

Value: 4.3

Growth: 2.2

Quality: 4.3

Yield: 2.5

Momentum: 9.0

Volatility: 7.7

1-Year Total Return ->

Sobi

A-Score: 4.8/10

Value: 3.1

Growth: 7.3

Quality: 7.4

Yield: 0.0

Momentum: 5.0

Volatility: 5.7

1-Year Total Return ->

Siegfried Holding

A-Score: 4.4/10

Value: 4.4

Growth: 7.4

Quality: 5.5

Yield: 0.6

Momentum: 1.0

Volatility: 7.3

1-Year Total Return ->

Alvotech

A-Score: 2.9/10

Value: 5.1

Growth: 5.8

Quality: 5.7

Yield: 0.0

Momentum: 0.0

Volatility: 1.0

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

1.91%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

6.84%

Ipsen S.A. - FR0010259150

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on IPN

1.c. Company Highlights

Better Quality

Less Volatile

Average Growth

Stable Momentum

Higher Growth

Revenues Beats

Earnings Miss

Weak Momentum

Earnings Beats

Revenues Miss

Average Quality

2. Ipsen's Full Year 2024 Results

Segment Performance

Pipeline Progress

Guidance and Outlook

Valuation Metrics

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.86%)

6. Segments

Oncology

Expected Growth: 5%

Neurosciences

Expected Growth: 4%

Rare Diseases

Expected Growth: 7%

7. Detailed Products

Somatuline

Decapeptyl

NutropinAq

Increlex

Cabometyx

Cometriq

8. Ipsen S.A.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Ipsen S.A. passed 7 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

121.9$

Current Price

121.9$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA