Ipsen looks to cut costs, increase revenues
Ipsen Group (Euronext:IPN) hopes to more than double its revenues and more than triple its EBIT by 2020 through a combination of R&D cuts and growth of existing products into additional indications and territories. Ipsen is targeting 2020 revenues of EUR 2-EUR 2.5 billion ($2.9-$3.7 billion), with an EBIT of EUR 500-EUR 600 million ($730.9-$877.1 million). Ipsen reported 2010 revenues of EUR 1.1 billion and an EBIT of EUR 183 million.
The company will close its R&D facility in Barcelona and stop internal development in several areas, including proteins, small molecules, short stature indications and non-prostate cancer oncology programs. Ipsen also is searching for a partner for its primary care commercial operations in France as well as a buyer for its manufacturing facility in Dreux, France. In the U.S., Ipsen plans to consolidate commercial operations on the East Coast. The changes are expected to incur EUR 80-EUR 100 million in charges before taxes over 2011-12. ...