PARIS: French drugmaker Ipsen posted a 39 percent drop in 2010 net profit after writing off the development of a drug and said the CEO's strategy to cope with government spending cuts should be ready by June.
For this year, Ipsen said it expected sales of its key specialty care drugs, which treat cancer forms or hormone diseases related to the gland, to rise 8 percent from 2010 while sales of primary care treatments could drop 8-10 percent.
Last year speciality care contributed about 66 percent of total sales, while primary care accounted for 34 percent. The company did not give an outlook for 2011 group sales.
Shares in Ipsen, plagued by several setbacks in its drug pipeline, were down 2.3 percent by 1408 GMT. It announced another pipeline failure, dropping the development of prostate cancer drug toremifine with US partner GTx .
New chairman and chief executive Marc de Garidel said at a news conference the group, hit by Swiss group Roche's decision to pull out of a partnership to develop a diabetes drug, would likely present a fresh strategy by June. "We are looking at all the possibilities. It is now or never," he said.
De Garidel, who took the helm at end-November after a career of about 15 years at US biotech Amgen , is conducting a strategic review of the company which, like peers, is dealing with European government spending cuts.
As part of Ipsen's pipeline assessment, it would examine the clinical trial data that led Swiss drugmaker Roche to drop taspoglutide from its development and, based on those findings, decide whether to ditch the drug or look for another partner.
Japanese group Teijin is conducting early stage clinical trials with taspoglutide but in different dosages than Roche and de Garidel said those data could perhaps open up new possibilities for the once-promising diabetes treatment.
De Garidel said it would take until 2014 or 2015 for Ipsen to push a new treatment out of its pipeline.
Ipsen's net profit attributable to shareholders fell 39 percent to 95.3 million euros ($132 million), on sales, reported last month, of 1.1 billion.
Net profit was hit by a charge of 80.3 million euros after tax, partly linked to Ipsen's decision to stop developing a growth hormone drug in mid-stage clinical trials.
"These results ... underline the challenges that the group is confronted to: further price pressure, notably in Primary Care, attrition of some of our R&D projects, break-even still to be reached in North America," de Garidel said.
Another letdown in its drug development involved a treatment against acromegaly, a relatively rare disease caused by the over production of growth hormone and Ipsen halted clinical trials on BIM 23A760.
Natixis analyst Beatrice Muzard said Ipsen shares could get a lift, having fallen 41 percent last year, if it announced "a restructuring plan, an idea to leverage its US structure or develop in emerging countries".
Ipsen has been expanding in the United States. It launched its first product, Dysport, on its own as a muscle relaxant and in a partnership as an anti-wrinkle treatment that competes with Allergan's Botox.
It also sealed a haemophilia partnership with Inspiration Biopharmaceuticals in the world's biggest drug market.
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