Ipsen
JP Morgan Healthcare
Conference
January 10, 2018

Disclaimer & Safe Harbor
This presentation includes only summary information and does not purport to be comprehensive. Forward-looking statements, targets and estimates contained
herein are for illustrative purposes only and are based on management’s current views and assumptions. Such statements involve known and unknown risks and
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rtainties that may cause actual results, performance or events to differ materially from those anticipated in the summary information. Actual results may
depart significantly from these targets given the occurrence of certain risks and uncertainties, notably given that a new product can appear to be promising at a
preparatory stage of development or after clinical trials but never be launched on the market or be launched on the market but fail to sell notably for regulatory
or competitive reasons. The Group must deal with or may have to deal with competition from generic that may result in market share losses, which could affect
its current level of growth in sales or profitability. The Company expressly disclaims any obligation or undertaking to update or revise any forward-looking
statements, targets or estimates contained in this presentation to reflect any change in events, conditions, assumptions or circumstances on which any such
statements are based unless so required by applicable law.
All product names listed in this document are either licensed to the Ipsen Group or are registered trademarks of the Ipsen Group or its partners.
The implementation of the strategy has to be submitted to the relevant staff representation authorities in each country concerned, in compliance with the
specific procedures, terms and conditions set forth by each national legislation.
The Group operates in certain geographical regions whose governmental finances, local currencies or inflation rates could be affected by the current crisis, which
could in turn erode the local competitiveness of the Group’s products relative to competitors operating in local currency, and/or could be detrimental to the
Group’s margins in those regions where the Group’s drugs are billed in local currencies.
In a number of countries, the Group markets its drugs via distributors or agents: some of these partners’ financial strength could be impacted by the crisis,
potentially subjecting the Group to difficulties in recovering its receivables. Furthermore, in certain countries whose financial equilibrium is threatened by the
crisis and where the Group sells its drugs directly to hospitals, the Group could be forced to lengthen its payment terms or could experience difficulties in
recovering its receivables in full.
Finally, in those countries in which public or private health cover is provided, the impact of the financial crisis could cause medical insurance agencies to place
added pressure on drug prices, increase financial contributions by patients or adopt a more selective approach to reimbursement criteria.
All of the above risks could affect the Group’s future ability to achieve its financial targets, which were set assuming reasonable macroeconomic conditions based
on the information available today.

2

Compelling investment thesis
Growth story

Top
line
Bottom line

Vision: To be a leading global biopharmaceutical company
focused on Innovation and Specialty Care

▪ Established and fast growing Specialty Care franchise
▪ Launch of two major Oncology products
▪ Synergies in the U.S. market with Oncology commercial infrastructure
▪ Profitability enhancement through new products sales ramp
▪ External sourcing of new innovative assets to build a sustainable pipeline

Pipeline

▪ Mid to late-stage portfolio readouts over next 24 months
▪ Ongoing business development efforts

3

Momentum fueled by high Specialty Care growth and the U.S.
U.S. fast growing and representing 24%
of sales

Specialty Care led business
Q3 YTD 2017 sales by therapeutic area

Rare Diseases

Neurosciences

18%

Specialty Care
84%

Oncology

Q3 YTD 2017 sales by geographical area

4%
17%

Emerging
markets

Consumer
Healthcare
16%

29%

EU5

35%

61%
12%
ROW

4

EU5: France, Germany, Italy, United Kingdom, Spain; ROW: Rest of World

24%
North
America

Execution against 2017 objectives

Financial Performance

Business Execution

Specialty Care
growth

+24.3%1

+2.5%1

Somatuline® Launches of
® Advancement
Market share Cabometyx
of pipeline
and Onivyde®
expansion

IPSEN Transformation

5

Consumer
Healthcare
growth

R&D
External
innovation

(1) As of Q3 2017, at constant exchange rates

Leadership
Culture

Consumer
Healthcare
back to
growth

Management team

David Meek
Chief Executive Officer
Aymeric Le Chatelier
Chief Financial Officer

Alexandre Lebeaut
Chief Scientific Officer

Harout Semerjian
Specialty Care

Benoit Hennion
Consumer Healthcare

Proven management team

200 cumulative years of experience in the pharma industry
100 cumulative years of experience in Oncology
Significant international, launch and entrepreneurial experience

6

Focus on three key therapeutic areas in Specialty Care
Oncology

Neurosciences

Rare diseases

▪ Establish leadership position in specialty therapeutic areas
▪ Leverage expertise from development to commercialization
▪ Provide innovative solutions along entire treatment paradigm

7

Oncology business over 60% of sales, on track to exceed €1bn in 2017
Prostate
Cancer

Renal Cell
Carcinoma (RCC)

Pancreatic
Cancer

Established
and growing
legacy
Oncology
product in EU
and China

8

Neuroendocrine
Tumors (NET)

Best-in-class
somatostatin
analog with
market
leadership
position

Ongoing EU
launch in 2L
RCC
supported by
best-in-class
clinical
profile

Ongoing U.S.
launch for
differentiated
product with
OS benefit

OS: Overall Survival

Oncology strategy
Capabilities / Strengths
✓ Presence in Oncology for 30+ years
✓ Worldwide Oncology commercial infrastructure
✓ Significant Oncology experience added in R&D and commercial

Source
innovation
External sourcing
of new innovative
assets

9

Develop
internally
Develop best-inclass,
differentiated
products

Leverage
Lifecycle
management to
maximize value of
assets

Build
leadership
Build leadership
position in
Specialty Oncology
markets

Somatuline® building leadership position in Neuroendocrine Tumor market
Key product for Ipsen

Strong business momentum

▪

Largest and most profitable global product

▪

SSAs to remain standard of care for NET

▪

Long duration of therapy

▪

IP protection: March 2020 (acromegaly), Dec 2021 (NET)

▪

Product differentiation – strong clinical profile,
broadest label, superior device

400

Franchise extension

200

▪

+31%1

600

▪

Peptide receptor radionuclide therapy (PRRT)
program in development

▪

+36%
+34%
+17%

Xermelo® launch in EU in 2018

▪

10

800

Somatuline® lifecycle management (3-month
formulation, improved device, lung NET)

0
2014

IP: Intellectual Property; NET: Neuroendocrine Tumors; SSA: somatostatin analogue
(1) Q3 2017 YTD growth rate at constant exchange rates

2015

North America

2016

2017E

Other

Cabometyx® franchise expanding in potential
Maximizing global value
▪

Differentiated clinical profile in Renal Cell Carcinoma
▪
▪

▪

First-and-only 2L treatment with benefits in OS, PFS, ORR
Superiority over standard of care (Sutent®) in 1L RCC

Combination trials
with IO ongoing

Other opportunities
▪
▪

2L
RCC

11

IO

Investigator-sponsored trials (ISTs) – NET
trial to start in 2018
Expansion into China

Ex-US launch gaining
traction and growing
market share

1L
RCC

2L
HCC

CELESTIAL Phase 3
positive top-line results,
filing in H1 2018

z
EU regulatory
submission Sept. 2017

IO: Immuno-Oncology; NET: Neuroendocrine Tumors; ORR: Objective Response Rate; OS: Overall Survival; PFS:
Progression-Free Survival; RCC: Renal Cell Carcinoma

Onivyde® serving unmet medical need in pancreatic cancer
Differentiated product
▪
▪

▪

Launch progress and market expansion

First and only FDA-approved therapy in
post-gemcitabine patients

▪

Launch update
▪
▪

Category 1 evidence in NCCN guidelines
▪

Significant synergies achieved through U.S.
oncology infrastructure

▪

Novel encapsulation of irinotecan with
superior PK profile and selective
accumulation at tumor site

Increase in demand growth, number of unique
ordering accounts, awareness among oncologists

Sales expected to ramp significantly in 2018

Market expansion opportunities
▪
▪

12

Phase 2 trial in 1L metastatic pancreatic cancer
Phase 2 trial in 2L SCLC

FDA: Food and Drug Administration; NCCN: National Comprehensive Cancer Network PK: Pharmacokinetics; SCLC: Small Cell Lung
Cancer

Building world-class Neurosciences franchise

Established
position with
Dysport® in
attractive
neurotoxin
market

13

Therapeutics:
Grow share of
Dysport in
spasticity,
expand into
select
indications

Aesthetics:
Continue
successful
partnership
with Galderma

Development
of nextgeneration
toxins

25+ years in neurotoxin market
Neurotoxin market growth: 10%+ CAGR through 2020

Expanding capabilities in Rare Diseases
Current portfolio/ Ambition
▪

Build on established Rare Disease assets: Somatuline® in acromegaly and
Neuroendocrine Tumors, Xermelo® in carcinoid syndrome, Dysport® in pediatric
spasticity, Nutropin® for growth failure and Increlex® in severe primary IGF-1 deficiency

▪

Expand Rare Diseases portfolio via targeted Business Development

Capabilities/ Factors for success
▪

Business model highly patient-centric (patient finding, advocacy groups,
reimbursement assistance)

▪

Specialized, non-traditional skill-set in clinical/regulatory

▪

Agile and attractive global partner now with significant U.S. presence

14

LCM: Life Cycle Management; OS: Overall Survival; ROW: Rest of World

Building sustainable R&D Pipeline
Preclinical

Phase I

Phase II

Phase III

Registration

IPN-01087A (PDAC)

Satoreotide (GEP NET)

Somatuline® PRF
GEP NET

Cabometyx®
2L HCC

Cabometyx®
1L RCC

Satoreotide (Non-NET
indications)

Cabometyx®
Solid tumors
(combo w/ atezolizumab)

Onivyde®
1L PDAC

Cabometyx®
1L RCC
(combo w/ nivo/ipi)

Dysport® PLL spasticity
(EU)

Long acting toxin
rBoNT/A

Onivyde®
Breast cancer

Onivyde®
2L SCLC

Decapeptyl®
1M CPP China

Long acting toxin
rBoNT/A’

Short acting toxin
rBoNT/E

VSN16R (Canbex)
Multiple sclerosis
spasticity

Decapeptyl®
3M Endometriosis China

Dysport®
New Indications

Somatuline®
NET lung

Oncology
Neurosciences

Somatuline® PRF
Acromegaly

Endocrinology
New program in 2017

5 new programs from Cabometyx® and
Onivyde® transactions added in H1 2017
15

ALL: Adult Lower Limb; GEP-NET: Gastroenteropancreatic Neuroendocrine Tumors; HCC: Hepatocellular Carcinoma; NDO:
Neurogenic Detrusor Overactivity; PRF: Prolonged Release Formulation; PLL: Paediatric Lower Limb; PRRT: Peptide Receptor
Radionuclide Therapy; PUL: Paediatric Upper Limb; RCC: Renal Cell Carcinoma; SCLC: Small Cell Lung Cancer

Dysport®
PUL spasticity
Dysport®
NDO
Dysport®
Glabellar lines (China)
Dysport® solution (liquid)
Glabellar lines
Dysport® solution (liquid)
cervical dystonia
Somatuline®
Acromegaly (China)

Transformation of R&D model

R

esearch investment with selective focus

D

evelopment powerhouse

C

ommercial powerhouse in Specialty Care

▪
▪

▪
▪

▪
▪

16

Ongoing intensive review and prioritization of R&D pipeline
Build sustainable pipeline via external innovation model

Launch a new drug or indication/registration every year
Improve product governance to accelerate innovative programs

Focus on Oncology to increase market share for Somatuline®, competitive execution on
Cabometyx® and Onivyde® launches
Develop competitive capability to execute sustained high-quality launches

Active business development efforts
Transaction criteria

Early to
midstage
assets
High
margin
products

Global
rights

Nearterm
targets

Oncology
Neurosciences
Rare
diseases

Best-inclass /
first-inclass

Strong balance sheet and cash flow generation
with significant firepower >€1.0 billion
17

▪

Strategically aligned

▪

Financially viable

▪

Ability to integrate /
synergies

Longer-term targets
▪

Earlier/ innovative best-inclass assets

▪

De-risked late-stage assets

Well on track to meet 2020 financial objectives(1)
Group sales

Core Operating Income margin
In percentage of net sales

> 30%

> €2.5bn

>+20%
CAGR

>+12%
CAGR

> +7pts

€1.6bn

23%

2016

18

2020E

(1)

2016

Guidance assumes no impact from business development and covers the impact of potential Somatuline® competitive threats

2020E

Ipsen priorities
▪ Deliver accelerated sales growth and significant improved profitability
▪ Execute successful commercial launches of Cabometyx® and Onivyde®
▪ Accelerate development of expanded pipeline and external innovation model
▪ Sustain growth of Consumer Healthcare business
▪ Continue to drive transformation through leadership, people and culture

Deliver superior value to patients and shareholders

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MERCI

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