Ipsen: Portzamparc still buyer after Clementia acquisition

(CercleFinance.com) - The Parisian "smidcaps" specialist Portzamparc confirms its buy rating on the share of pharmaceuticals group Ipsen after the group announced its acquisition of the biotech firm Clementia Pharmaceuticals.
Although it has trimmed its target price from 149.8 euros to 139.6 euros, this still suggests upside potential of over 20%.

Clementia is a Canadian company specialising in the treatment of rare pediatric diseases, a note says, which will strengthen Ipsen's portfolio in this area, in line with management's aims. Clementia's most advanced product is a selective beta-3 retinoic acid receptor called palovarotene. Out of all of its indications, the product has peak potential sales of between 500 million and a billion dollars according to different estimates, the note adds.

Ipsen is acquiring an attractive asset that will provide it with a real franchise in rare diseases and boost its growth beyond 2020/2021. Portzamparc believes that the price of the deal appears reasonable given the product's potential.



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