Ipsen Afflicted By Too Several Drugs, Bucks Trend Infecting Others
“We have enough products in early development, we may even have too many,” Chief Executive Officer Jean-Luc Belingard said in an interview. The companys experimental cancer drugs “are prompting regular approaches from others in the field but for now we have turned a deaf ear.”
Ipsen began selling a rival to Allergan Inc.s Botox in the U.S. last month through Medicis Pharmaceutical Corp. and has 23 compounds in development, including a breast cancer drug that may compete with Novartis AGs Femara and AstraZeneca Plcs Arimidex and a diabetes treatment with Roche Holding AG.
The family-controlled drugmaker, known in France for its Smecta diarrhea remedy, spent 19 percent of sales on research last year, more than larger rival Sanofi-Aventis SA. Taspoglutide, the diabetes medicine licensed to Switzerlands Roche, may garner annual sales of 1 billion euros ($1.4 billion) or more, according to Guillaume Cuvillier, an analyst at Gilbert Dupont in Paris.
Belingard, who spoke in an interview at Ipsens Boulogne- Billancourt headquarters just outside Paris, began focusing the company on specific areas of research such as cancer and gland disorders when he took over as CEO seven years ago.
Cancer Medicines
The result is what Ipsen describes as a slew of experimental drugs, including 10 in early stages of development, five in phase II, the second level of medical tests, and eight in advanced research.
A cancer-fighting compound known as BN 83495, which works by blocking the production of estrogen that fuels tumor growth, could challenge sales of Novartiss Femara and AstraZenecas Arimidex, according to Thierry Verrecchia, an analyst at Raymond James in Paris, who has a “strong buy” on Ipsen stock. Arimidex had sales of $1.86 billion last year.
Belingard, 60, says the company has other cancer compounds in development that are “even more promising.”
“We dont have enough money to finance all the projects we would like to, but we prefer it to be this way, rather than the other way around,” Stephane Thiroloix, Ipsens head of corporate development, said at a June 15 press conference.
Not Taking Off
The shelves arent so crowded at some of Ipsens bigger rivals. Frances Sanofi announced last week a reorganization of its research department meant to spur innovation and find new drugs. The company is hunting for acquisitions and partnerships to replenish its pipeline.
“We have nothing to do with all this,” Belingard said. “Our pipeline has compounds that are all very attractive in their own way.”
If investors are impressed, theyre not showing it. Ipsen shares slipped 11 percent over the past year, the ninth-worst performing stock in the Bloomberg index that tracks 18 European drugmakers. Sanofi gained 2.4 percent in the same period.
“The stock isnt taking off,” said Gilbert Duponts Cuvillier. “Nobody is invulnerable to R&D failures and there are uncertainties surrounding Taspoglutide.”
Not the Same
Novo Nordisk A/Ss rival drug liraglutide has been linked to an increased risk of thyroid cancer in mice. Ipsen shares dropped 13 percent on the day an advisory panel to the U.S. Food and Drug Administration failed to back the Novo Nordisk drug.
Both medicines are known as GLP-1 analogues and mimic a hormone that stimulates the pancreas to produce insulin when blood sugar levels rise too much. Diabetics cant produce enough insulin to absorb sugar.
“Each product in that class is individual,” Belingard said. “Taspoglutide isnt liraglutide.” The Ipsen drug is in the third and final stage of research.