On Tuesday, RBC Capital Markets updated its outlook for shares of Ipsen (EPA:IPN) SA, a biopharmaceutical company, by increasing the price target from EUR 140.00 to EUR 144.00 while maintaining an Outperform rating. The firm's analyst highlighted the potential growth trajectory of Ipsen, driven by recent acquisitions and the launch of Iqirvo, a treatment for primary biliary cholangitis (PBC).
Ipsen's strategy to return to growth includes leveraging Iqirvo, which has been introduced in both the US and European markets. The analyst believes that Ipsen's sales growth prospects should more than compensate for the anticipated decline in sales of Somatuline, another of the company's products.
The forecast is supported by Ipsen's price-to-earnings (PE) multiple of 10.7 times the projected 2025 earnings and an expected mid-term earnings per share (EPS) growth rate of 8% annually.
Iqirvo represents a new approach to treating PBC, a rare liver disease. Despite facing competition from Gilead (NASDAQ:GILD)'s Livdelzi, another treatment in the same drug class, the analyst anticipates that Iqirvo will capture approximately 20-25% of the market by 2030, with projected sales around EUR 360 million. The competition between Iqirvo and Livdelzi is expected to be a significant factor influencing Ipsen's share price in the coming years.
The analyst's outlook suggests that the early performance of Iqirvo will be particularly crucial for Ipsen's growth. The company's focus on this new treatment, in addition to the overall sales growth from its recent acquisitions, positions Ipsen favorably in the biopharmaceutical sector. The revised price target reflects confidence in Ipsen's strategic direction and its potential to deliver growth in line with the sector.
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