Ipsen plans more deals after €700m Memo acquisition to fill portfolio gaps

Ipsen plans to pursue more acquisitions after completing a €700m takeover this week, as the French drugmaker seeks to fill gaps in its portfolio.

"We see gaps in our portfolio and have the financial means to fill them," Ipsen's chief business officer said.

The Paris-based company this week completed a pair of acquisitions, including the purchase of Memo, a biotech focused on rare disease therapies. The €700m deal adds Memo's experimental treatments to Ipsen's rare disease pipeline, expanding beyond the company's established oncology and neuroscience franchises. Terms of the second acquisition were not disclosed.

Ipsen, which generated most of its revenue from oncology drugs, has been expanding through dealmaking as it faces patent expirations on some of its top-selling medicines. The company's chief business officer said Ipsen has the financial capacity to continue acquiring, though the size and structure of future deals will depend on available opportunities.

The acquisition strategy shows Ipsen's push to diversify its revenue streams beyond its current portfolio. The company did not disclose specific therapeutic areas or deal sizes for future acquisitions, leaving investors to speculate on which pipeline gaps the company aims to fill.

Ipsen's move comes as the pharmaceutical sector sees a wave of M&A activity, with drugmakers including Pfizer and AstraZeneca also pursuing deals to replenish pipelines. For Ipsen, the €700m Memo deal represents one of its largest acquisitions in recent years as the company shifts toward rare diseases, a segment where drugs often command higher prices and face fewer competitors.

The company's next catalyst will be its half-year earnings report, where investors will look for updates on pipeline progress and acquisition plans. Ipsen's ability to execute additional deals will depend on finding suitable targets at reasonable valuations in a competitive M&A market where large-cap drugmakers are also hunting for assets.

This article is for informational purposes only and does not constitute investment advice.