On Thursday, Citi reaffirmed its Buy rating and €130.00 stock price target for Ipsen SA (IPN:FP) (OTC: IPSEY), following the presentation of promising long-term data for the rare liver disease drug elafibranor at the European Association for the Study of the Liver (EASL) conference. The data showed that 70% of patients reached the primary composite endpoint at 78 weeks, a stark contrast to the 0% efficacy in the placebo group.
The drug's performance aligns with results from a competing medication, seladelpar, which had previously disclosed similar long-term data. The anticipation is building for the upcoming U.S. Prescription Drug User Fee Act (PDUFA) decision for elafibranor, expected on June 10. Additionally, the approval of seladelpar by Gilead (NASDAQ:GILD) is projected for August.
The analyst highlighted the potential market expansion for second-line primary biliary cholangitis (2L PBC) treatments, noting that currently, there are no available options for this condition. The entry of both elafibranor and seladelpar into the market is seen as a positive development for market creation.
Citi's projections are conservative, estimating that elafibranor will capture only 40% of the treated patient population. Still, even with this modest market share, peak sales are forecasted to reach approximately €540 million, surpassing the consensus estimate of €300 million. These figures underscore the financial potential of Ipsen's drug in the treatment landscape for rare liver diseases.
InvestingPro Insights
As Ipsen SA (OTC: IPSEY) garners attention with its promising liver disease drug, elafibranor, investors may find additional confidence in the company's financial health and stock stability. With a market capitalization of 10.99 billion USD and a price-to-earnings (P/E) ratio of 15.66, which adjusts slightly to 15.36 for the last twelve months as of Q4 2023, the company presents a stable investment profile. The gross profit margin for the same period stands at an impressive 82.72%, indicating strong profitability.
Two notable InvestingPro Tips for Ipsen SA include the company's ability to maintain dividend payments for 19 consecutive years and its moderate level of debt, which suggests a prudent financial strategy. Moreover, the stock has been trading near its 52-week high and has seen a strong return over the last three months, with a 21.7% total return. These factors may reassure investors about the consistency and potential growth of their investment.
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