Ipsen: RBC initiates coverage with neutral rating
(CercleFinance.com) - On Wednesday Royal Bank of Canada initiated coverage of Ipsen shares with a market perform (i.
e. neutral) rating and a target price of 107 euros (current price about 92 euros, -1%).
In a study, the broker points out that the biopharmaceutical group's best-selling drug, Somatuline, now accounts for 40% of its sales, while pointing out that this treatment for neuroendocrine tumours must now face the arrival of generics.
While RBC only expects a slow erosion of company sales, the broker stresses that Ipsen will now have to find growth, considering that products such as Cabometyx, Onyvide and Dysport will not fully offset the loss of patent protection on Somatuline.
RBC says that Ipsen therefore has no choice but to strengthen its therapeutic portfolio, an option it says could be through deals similar to the recent acquisition of Epizyme and its lead drug, Tazverik, which is currently in clinical trials for lymphoma.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
e. neutral) rating and a target price of 107 euros (current price about 92 euros, -1%).
In a study, the broker points out that the biopharmaceutical group's best-selling drug, Somatuline, now accounts for 40% of its sales, while pointing out that this treatment for neuroendocrine tumours must now face the arrival of generics.
While RBC only expects a slow erosion of company sales, the broker stresses that Ipsen will now have to find growth, considering that products such as Cabometyx, Onyvide and Dysport will not fully offset the loss of patent protection on Somatuline.
RBC says that Ipsen therefore has no choice but to strengthen its therapeutic portfolio, an option it says could be through deals similar to the recent acquisition of Epizyme and its lead drug, Tazverik, which is currently in clinical trials for lymphoma.
Copyright (c) 2022 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.