Ipsen (IPN) investor relations material

Executive summary

• H1 2026 delivered strong financial and operational performance, with sales up 23.5% at constant exchange rates (CER) or 20.4% as reported, reaching €2.2 billion, and all three therapeutic areas—oncology, rare disease, and neuroscience—contributing to growth.

• Core operating margin improved to 38.6%, with core operating income rising 28.8% to €845 million and free cash flow up 34.9% to €652 million.

• IFRS consolidated net profit increased by 20.0% to €403 million, and core consolidated net profit grew 19.6% to €608 million.

• Three positive Phase III readouts (Dysport in migraine, Iqirvo in PBC) and two late-stage acquisitions (Kartos and Memo Therapeutics) strengthened the pipeline.

• Upgraded 2026 guidance reflects strong momentum and portfolio performance, with sales growth now expected above 20% at CER and core margin above 37%.

Financial highlights

• Total sales reached €2.2 billion, up 23.5% at CER (20.4% as reported); core operating income €845 million, up 28.8%.

• Free cash flow increased 34.9% year-over-year to €652 million; net cash position improved to €1 billion.

• Gross margin was 85.1% of sales, slightly down from 86.1% last year due to product mix and lower milestone revenues.

• IFRS consolidated net profit was €403 million, up 20% year-over-year, despite higher impairment losses.

• EBITDA for H1 2026 was €890 million (+27.3% year-over-year).

Outlook and guidance

• Upgraded FY 2026 guidance: total sales growth expected above 20% at CER (previously >13%), and core operating margin above 37% (previously >35%).

• Guidance assumes continued growth of Somatuline despite potential generic competition and accelerated growth of the broader portfolio.

• Additional R&D expenses and the dilutive impact of recent acquisitions are factored into margin guidance.

• Continued investment in R&D and commercial launches, especially for Dysport in migraine.

• Guidance excludes potential impact from late-stage external innovation transactions.