8th September 2016

Ipsen Biopharm invests in Wales as profits rise

Pre-tax profit has risen by 75 per cent to more than £50m at North Wales pharmaceutical company Ipsen Biopharm, which further growth expected following investment in its manufacturing facilities.

The Wrexham-based company, which employs more than 390 staff, manufactures and markets pharmaceutical products including treatments for prostate cancer, muscles spasms and growth failure among children.

It also provides research and development services to affiliated companies as part of the global Ipsen group which operates in 115 countries and has large R&D and manufacturing facilities in China, Ireland, France, the UK and America.

According to recently filed accounts for Ipsen Biopharm Ltd, pre-tax profit was £51.3m in the year to 31 December 2015, up from £29.4m in 2014.

Turnover also increased to £171.2m, up from £148.4m the year before. Ipsen was boosted by a 17 per cent increase in sales for its Dysport drug during the period.

The company is also set to open a new production facility and laboratory in Wrexham and incurred costs of £1.6m during 2015. The base is expected to become operational for commercial manufacture in 2017.

In the report accompanying the results, the directors said: “The company’s revenue from sales of Dysport increased by 17 per cent in 2015 in comparison to 2014, in which year a combination of factors had reduced year-on-year sales by 14 per cent.

“These factors have now stabilised and the resulting increase in revenue reflects an increase in volume. Royalty income has increased over the period by a lower percentage as these are driven by aesthetic sales only.

“As product sales are the main element of turnover, the increase in the value of these sales has resulted in a proportionately higher increase in the gross profit and the lower level of research and development expenses has further contributed to the increase in operating profit.”

The wider Ipsen Group reported sales of €1.44bn (£1.21bn) in its 2015 results with consolidated net profit up 23.8 per cent over the period to €190.7m (£159.7m).