Paris (France), 26 July 2018 \u2013\u00a0<\/b>Ipsen (Euronext: IPN; ADR: IPSEY), a global specialty-driven biopharmaceutical group, today announced financial results for the first half of 2018.<\/p>\n
![\"ENGL](\"https:\/\/old.ipsen.com\/websites\/IPSENCOM-PROD\/wp-content\/uploads\/2018\/07\/25183048\/ENGL-Table-1.jpg\")
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David Meek, Chief Executive Officer of Ipsen<\/b>, stated:\u00a0\u201cWe executed very well against our objectives in the first half of 2018. We delivered outstanding Group sales growth of 21.5%\u00a0<\/em>and significant core<\/em>\u00a0operating margin improvement,\u00a0<\/em>leading to upgraded guidance for the full year 2018.\u00a0<\/em>We also continued to increase the value proposition of Cabometyx<\/em>\u00ae\u00a0with approval for first-line renal cell cancer by the European Commission and the validation of the regulatory submission for second-line hepatocellular carcinoma by the EMA. In the second half of the year, we remain focused on maintaining the growth momentum of our Oncology and Neuroscience franchises and reinforcing our R&D strategy to build an innovative and sustainable pipeline.<\/em>\u201d<\/em><\/p>\n Upgraded Full Year 2018 guidance<\/u><\/b> Review of the first half 2018 results<\/u><\/b> IFRS Operating income<\/b>\u00a0was \u20ac269.7 million after amortization of intangible assets, the costs of relocation of the U.S. commercial affiliate to Cambridge, Massachusetts and the termination of certain R&D studies. Operating income margin at 25.3% is up 6.2 points compared to the first half of 2017. The interim financial report, with regard to regulated information, is available on the Group\u2019s website, old.ipsen.comunder the Regulated Information tab in the Investor Relations section.<\/p>\n The company\u2019s auditors performed a limited review of the accounts.<\/p>\n Conference call<\/b> <\/p>\n [1] Year-on-year growth excluding foreign exchange impacts \n Attachment<\/strong>\n<\/p>\n
Following the strong performance in the first half of 2018, the Group raises its financial targets for the full year 2018:<\/p>\n\n
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![\"ENGL](\"https:\/\/old.ipsen.com\/websites\/IPSENCOM-PROD\/wp-content\/uploads\/2018\/07\/25183235\/ENGL-Table-2.jpg\")
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Note: Unless stated otherwise, all variations year-on-year in sales are stated excluding foreign exchange impacts.<\/em>
Group sales<\/b>\u00a0reached \u20ac1,064.5 million, up 21.5% year-on-year.
Specialty Care<\/b>\u00a0sales<\/b>\u00a0reached \u20ac920.2 million, up 26.7%, driven by the strong growth of Somatuline\u00ae\u00a0(26.1% with a continued volume growth in North America and a solid performance throughout Europe), the contribution of new products Cabometyx\u00ae\u00a0and Onivyde\u00ae, as well as the good performance of Dysport\u00ae\u00a0(13.0% fueled by our partner Galderma in the aesthetics market in Europe, and a strong growth in Brazil and in the U.S. therapeutics market) and Decapeptyl\u00ae\u00a0(8.9% impacted by good volume growth, notably in France, Spain and Algeria).
Consumer Healthcare<\/b>\u00a0sales<\/b>\u00a0reached \u20ac144.3 million, up 2.0%2, driven by the good performance of the Smecta\u00ae\u00a0brand, which grew by 3.6%.
Core Operating Income<\/b>\u00a0was \u20ac322.5 million, up 34.1%, driven by the strong Specialty Care sales growth and reflecting increased commercial investments for the Oncology product launches and R&D investments to support the advancement of the pipeline.
Core operating margin<\/b>\u00a0reached 30.3% of sales, up 4.1 points.
Core consolidated net profit<\/b>\u00a0was \u20ac237.1 million, compared to \u20ac169.2 million in 2017, up 40.1%, after higher financial and income tax expenses and benefitting from a lower effective tax rate due to the U.S. tax reform.
Core earning per share fully diluted<\/b>\u00a0grew by 40.2% to reach \u20ac2.86, compared to \u20ac2.04 in 2017.<\/p>\n
IFRS Consolidated net profi<\/b>t was \u20ac197.3 million versus \u20ac125.9 million in 2017, up 56.7% after financial and income tax expenses.
IFRS<\/b>\u00a0Fully diluted EPS<\/b>\u00a0(Earning per share) was \u20ac2.38 versus \u20ac1.52 in 2017, up 56.6%.
Free cash flow<\/b>\u00a0reached \u20ac164.5 million, up by \u20ac69.5 million or 73.3% versus 2017, from higher operating cash flow, lower restructuring costs and higher income tax.
Closing net debt<\/b>\u00a0reached \u20ac438.0 million at the end of June 2018, versus \u20ac669.4 million at the end of June 2017, reflecting positive cash flow generation of the Group over the last twelve months and after payment in June 2018 of \u20ac83.0 million in dividends.<\/p>\n
Ipsen will hold a conference call Thursday, 26 July 2018 at 1:30 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.
Standard International: +44 (0) 1452 555 566
France and continental Europe: + 33 (0) 1 76 74 24 28
UK: +44 (0) 8444 933 800
United States: 1-631-510-7498
Conference ID: 2791758
A recording will be available for seven days on Ipsen\u2019s website.<\/p>\n
[2] Reported sales in Consumer Healthcare down 3.9%, non-restated from the new contractual set-up of Etiasa\u00ae
[3] Excludes amortization of intangible assets (excluding software), gain or loss on disposal of fixed assets, restructuring costs, impairment losses and
other non-core items
[4] Cash and cash equivalents, less bank overdrafts, bank loans and other financial liabilities and excluding financial derivative instruments<\/p>\n<\/p>\n
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