Bloomberg News

Ipsen Falls Most in Six Months on Writedowns: Paris Mover

February 03, 2012

Feb. 2 (Bloomberg) -- Ipsen SA shares tumbled the most in six months after the French drugmaker said it may take writedowns of as much as 180 million euros ($237 million) against 2011 earnings.

The shares slid 5.7 percent to 21.70 at the close of trading. The drop was the biggest since Aug. 8.

Ipsen, which owns about 41 percent of Cambridge, Massachusetts-based Inspiration Biopharmaceuticals, is taking part of the charge to reflect the U.S. company’s “sales forecasts in a rapidly evolving competitive environment,” it said in a statement today.

The charge, which may range from 150 million euros to 180 million euros before tax, also will cover “uncertainties” on the supply of Increlex, an Ipsen drug that uses an active ingredient from Lonza Group AG, and Ipsen’s French primary-care business.

Lonza received a warning letter from U.S. regulators at the plant that makes the ingredient, Ipsen said. The writedown also covers assets related to the company’s primary-care business, Ipsen said.

Fourth-quarter sales rose 15 percent to 295.8 million euros, said the company, based in Boulogne-Billancourt, just outside Paris.

--Editor: Marthe Fourcade

To contact the reporters on this story: Phil Serafino in Paris at pserafino@bloomberg.net; Vidya Root in Paris at vroot@bloomberg.net

To contact the editor responsible for this story: Phil Serafino at pserafino@bloomberg.net


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