Ipsen’s Fourth Quarter and Full Year 2012 Sales

  Ipsen’s Fourth Quarter and Full Year 2012 Sales

              Ipsen delivers robust 2012 sales above objectives

            *Dynamic and sustained specialty care growth of 11.3%^1
  *Primary care down 13.2%^1, negatively impacted by performance in France,
                                   down 29.7%^1
  *Drug sales up 9.3%^1 excluding French Primary Care

Business Wire

PARIS -- January 30, 2013

Regulatory News:

Ipsen (Euronext: IPN; ADR: IPSEY) reported today its sales for the fourth
quarter and full year 2012.

Fourth quarter and full year 2012 unaudited IFRS consolidated sales
                                        
               Fourth Quarter             Twelve Months
                                                                     
                                                                           %
                                                                           Variation
(in million                    %                               %
Euros)        2012   2011   Variation  2012     2011     Variation  at
                                                                           constant

                                                                           currency
                                                                           
SALES BY
REGION
Major
Western        125.2   136.4   (8.2%)      518.5     542.0     (4.3%)      (4.9%)
European
countries
Other
European       76.7    68.4    12.2%       306.0     279.6     9.5%        8.5%
countries
North          18.2    18.4    (0.9%)      72.8      65.7      10.8%       2.3%
America
Rest of the    74.7    72.7    2.8%        322.2     272.5     18.2%       14.1%
world
Group Sales   294.9  295.8  (0.3%)     1,219.5  1,159.8  5.1%       3.3%
                                                                           
SALES BY
THERAPEUTIC
AREA
Specialty      210.3   193.6   8.6%        862.5     759.4     13.6%       11.3%
Care
Primary care   78.0    94.3    (17.3%)     324.6     368.5     (11.9%)     (13.2%)
Total Drug    288.2  287.9  0.1%       1,187.0  1,127.9  5.2%       3.4%
Sales
Drug-related   6.6     7.9     (16.1%)     32.5      31.9      1.9%        0.7%
sales^2
Group Sales   294.9  295.8  (0.3%)     1,219.5  1,159.8  5.1%       3.3%
                                                                           

Commenting on the full year 2012 sales performance, Marc de Garidel, Chairman
and Chief Executive Officer of Ipsen said: “From the first year on, Ipsen’s
drug sales performance illustrates the relevance of the Group’s strategy of
focus, with specialty care up 11.3%^1, growing internationally and at an
accelerating pace. In parallel, the Group has been addressing two of its main
challenges: the adjustment of French primary care sales organization and the
sale of hemophilia-related assets.” Marc de Garidel added: “Our therapeutic
areas and geographical footprint form robust foundations for the achievement
of our 2020 ambition.”

^1 Annual growth excluding foreign exchange impacts – 2011 sales are restated
with 2012 average exchange rate
^2 Active ingredients and raw materials

Fourth quarter and full year 2012 sales highlights

In the fourth quarter 2012, Group drug sales were stable year-on-year, driven
by specialty care up 8.6%, fully offset by decline of French primary care
sales, down 17.3% year-on-year.

In the fourth quarter 2012, Consolidated Group sales reached €294.9 million,
down 0.3% year-on-year.

In the fourth quarter 2012, sales generated in the Major Western European
countries amounted to €125.2 million, down 8.2% year-on-year, mainly penalized
by the consequences of a tougher competitive environment in the French primary
care landscape and administrative measures in Spain.

In the fourth quarter 2012, sales generated in the Other European countries
reached €76.7 million, up 12.2% year-on-year, despite an unfavourable
comparison basis related to Dysport^® sales in Russia in 2011.

In the fourth quarter 2012, sales generated in North America reached €18.2
million, slightly down by 0.9% year-on-year or up 7.8% restated from 2011
Apokyn^® sales, sold on 30 November 2011.

In the fourth quarter 2012, sales generated in the Rest of the World reached
€74.7 million, up 2.8% year-on-year, despite an unfavourable comparison basis
related to a stocking effect in Algeria in the fourth quarter 2011 and a
destocking of Dysport^® in the fourth quarter 2012 in Latin America.

In 2012, Group drug sales grew by 5.2% year-on-year or 3.4% year-on-year
excluding foreign exchange impacts^1.

Consolidated Group sales reached €1,219.5 million for the full year 2012, up
3.3% year-on-year excluding foreign exchange impacts^1.

Sales generated in the Major Western European countries amounted to €518.5
million in 2012, down 4.9% year-on-year excluding foreign exchange impacts^1.
Dynamic volume sales growth of specialty care products were more than offset
by the consequences of a tougher competitive environment in the French primary
care landscape and administrative measures in Spain. As a result, sales in the
Major Western European countries represented 42.5% of total Group sales at the
end of 2012, compared to 46.7% a year earlier.

Sales generated in the Other European countries reached €306.0 million in
2012, up 8.5% year-on-year excluding foreign exchange impacts^1. Sales were
mainly driven by Russia where the good performance of specialty care products
and Tanakan^®. Over the period, Poland, the Netherlands, Ukraine and Belgium
also contributed to the volume growth. In 2012, sales in this region
represented 25.1% of total consolidated Group sales, compared to 24.1% a year
earlier.

In 2012, sales generated in North America amounted to €72.8 million, up 2.3%
excluding foreign exchange impacts^1. Restated to exclude Apokyn^® sales,
North American sales were up 11.5% year-on-year, driven by strong supply of
Dysport^® for aesthetic use to Medicis, by the continuous penetration of
Somatuline^® in acromegaly and by the growth of Dysport^® in the treatment of
cervical dystonia. Sales in North America represented 6.0% of total
consolidated Group sales, compared to 5.7% a year earlier.

In 2012, sales generated in the Rest of the World reached €322.2 million, up
14.1% excluding foreign exchange impacts^1, driven by a strong volume growth
in China, Colombia, Vietnam, Australia, Brazil and Mexico. In 2012, sales in
the Rest of the World continued to increase, representing 26.4% of total
consolidated Group sales, compared to 23.5% a year earlier.

In 2012, sales of Specialty Care products amounted to €862.5, up 11.3%
excluding foreign exchange impacts^1. Sales in endocrinology, neurology and
uro-oncology grew by 13.5%, 10.8% and 9.6% respectively, excluding foreign
exchange impacts^1. At the end of 2012, the relative weight of Specialty Care
products continued to increase to 70.7% of total Group sales, compared to
65.5% a year earlier.

^1 Variations excluding foreign exchange impacts are computed by restating the
2011 figures with the 2012 average exchange rates

In 2012, sales of Primary Care products amounted to €324.6 million, down 13.2%
excluding foreign exchange impacts^1, negatively impacted by the destocking
effect on Smecta^® in Russia and the consequences of a tougher competitive
environment in France, reinforced by the implementation of the “tiers-payant”
regulation in France. Primary Care sales represented 26.6% of total Group
sales in 2012 against 31.8% a year earlier. Primary Care sales in France, down
29.7% year-on-year, represented 38.1% of total Group Primary Care sales
against 47.7% a year earlier.

^1 Variations excluding foreign exchange impacts are computed by restating the
2011 figures with the 2012 average exchange rates

About Ipsen

Ipsen is a global specialty-driven pharmaceutical company with total sales
exceeding €1.2 billion in 2012. Ipsen’s ambition is to become a leader in
specialty healthcare solutions for targeted debilitating diseases. Its
development strategy is supported by 3 franchises: neurology / Dysport^®,
endocrinology / Somatuline^® and uro-oncology / Decapeptyl^®. Moreover, the
Group has an active policy of partnerships. Ipsen's R&D is focused on its
innovative and differentiated technological platforms, peptides and toxins. In
2011, R&D expenditure totalled more than €250 million, above 21% of Group
sales. The Group has total worldwide staff of close to 4,500 employees.
Ipsen’s shares are traded on segment A of Euronext Paris (stock code: IPN,
ISIN code: FR0010259150) and eligible to the “Service de Règlement Différé”
(“SRD”). The Group is part of the SBF 120 index. Ipsen has implemented a
Sponsored Level I American Depositary Receipt (ADR) program, which trade on
the over-the-counter market in the United States under the symbol IPSEY. For
more information on Ipsen, visit www.ipsen.com.

Ipsen Forward Looking Statement

The forward-looking statements, objectives and targets contained herein are
based on the Group’s management strategy, current views and assumptions. Such
statements involve known and unknown risks and uncertainties that may cause
actual results, performance or events to differ materially from those
anticipated herein. All of the above risks could affect the Group’s future
ability to achieve its financial targets, which were set assuming reasonable
macroeconomic conditions based on the information available today.

Moreover, the targets described in this document were prepared without taking
into account external growth assumptions and potential future acquisitions,
which may alter these parameters. These objectives are based on data and
assumptions regarded as reasonable by the Group. These targets depend on
conditions or facts likely to happen in the future, and not exclusively on
historical data. Actual results may depart significantly from these targets
given the occurrence of certain risks and uncertainties, notably the fact that
a promising product in early development phase or clinical trial may end up
never being launched on the market or reaching its commercial targets, notably
for regulatory or competition reasons. The Group must face or might face
competition from Generics that might translate into a loss of market share.

Furthermore, the Research and Development process involves several stages each
of which involves the substantial risk that the Group may fail to achieve its
objectives and be forced to abandon its efforts with regards to a product in
which it has invested significant sums. Therefore, the Group cannot be certain
that favourable results obtained during pre-clinical trials will be confirmed
subsequently during clinical trials, or that the results of clinical trials
will be sufficient to demonstrate the safe and effective nature of the product
concerned. The Group also depends on third parties to develop and market some
of its products which could potentially generate substantial royalties; these
partners could behave in such ways which could cause damage to the Group’s
activities and financial results. The Group cannot be certain that its
partners will fulfil their obligations. It might be unable to obtain any
benefit from those agreements. A default by any of the Group’s partners could
generate lower revenues than expected. Such situations could have a negative
impact on the Group’s business, financial position or performance.

The Group expressly disclaims any obligation or undertaking to update or
revise any forward looking statements, targets or estimates contained in this
press release to reflect any change in events, conditions, assumptions or
circumstances on which any such statements are based, unless so required by
applicable law.

The Group’s business is subject to the risk factors outlined in its
registration documents filed with the French Autorité des Marchés Financiers.

APPENDICES

Risk factors

The Group operates in an environment which is undergoing rapid change and
exposes its operations to a number of risks, some of which are outside its
control. The risks and uncertainties set out below are not exhaustive and the
reader is advised to refer to the Group’s 2011 Registration Document available
on its website www.ipsen.com

  *The Group is dependent on the setting of prices for medicines and is
    vulnerable to the possible reduction of prices of certain of its products
    by public or private payers or to their possible withdrawal from the list
    of reimbursable products by the relevant regulatory authorities in the
    countries where it does business. In general terms, the Group is faced
    with uncertainty in relation to the prices set for all its products, in so
    far as medication prices have come under severe pressure over the last few
    years as a result of various factors, including the tendency for
    governments and private payers to reduce prices or reimbursement rates for
    certain drugs marketed by the Group in the countries in which it operates,
    or even to remove those drugs from lists of reimbursable drugs.
  *The Group depends on third parties to develop and market some of its
    products which generate or may generate substantial royalties for the
    Group, but these third parties could behave in ways which cause damage to
    the Group’s business. The Group cannot be certain that its partners will
    fulfill their obligations. It might be unable to obtain any benefit from
    those agreements. A default by any of the Group’s partners could generate
    lower revenues than expected. Such situations could have a negative impact
    on the Group’s business, financial position or performance. More
    specifically and on the basis of available information, according to the
    auction procedure under the supervision of the US Federal Bankruptcy Court
    for the common sale of Ipsen’s and Inspiration’s assets, the Group may
    impair hemophilia related assets (mainly composed of the convertible bonds
    and the Milford manufacturing site) for a total amount, as of 31 December
    2012, of around €100 million after tax. (Excluding DIP financing, fully
    covered by the upfront payment in the deal recently announced with
    Baxter).
  *Actual results may depart significantly from the objectives given that a
    new product can appear to be promising at a development stage or after
    clinical trials but never be launched on the market or be launched on the
    market but fail to sell notably for regulatory or competitive reasons.
  *The Research and Development process typically lasts between eight and
    twelve years from the date of a discovery to a product being brought to
    market. This process involves several stages; at each stage, there is a
    substantial risk that the Group could fail to achieve its objectives and
    be forced to abandon its efforts in respect of products in which it has
    invested significant amounts. Thus, in order to develop viable products
    from a commercial point of view, the Group must demonstrate, by means of
    pre-clinical and clinical trials, that the molecules in question are
    effective and are not harmful to humans. The Group cannot be certain that
    favorable results obtained during pre-clinical trials will subsequently be
    confirmed during clinical trials, or that the results of clinical trials
    will be sufficient to demonstrate the safety and efficacy of the product
    in question such that the required marketing approvals can be obtained.
  *The Group must deal with or may have to deal with competition (i) from
    generic products, particularly in relation to Group products which are not
    protected by patents, for example, Forlax^® or Smecta^® (ii), products
    which, although they are not strictly identical to the Group’s products or
    which have not demonstrated their bioequivalence, may obtain a marketing
    authorization for indications similar to those of the Group’s products
    pursuant to the bibliographic reference regulatory procedure (well
    established medicinal use) before the patents protecting its products
    expire. Such a situation could result to the Group losing market share
    which could affect its current level of growth in sales or profitability.
  *Third parties might claim the benefit of intellectual property rights in
    respect to the Group’s inventions. The Group provides the third parties
    with which it collaborates (including universities and other public or
    private entities) with information and data in various forms relating to
    the research, development, manufacturing and marketing of its products.
    Despite the precautions taken by the Group with regard to these entities,
    in particular of a contractual nature, they (or certain of their members
    or affiliates) could claim ownership of intellectual property rights
    arising from the trials carried out by their employees or any other
    intellectual property right relating to the Group’s products or molecules
    in development.
  *The Group’s strategy includes acquiring companies or assets which may
    enable or facilitate access to new markets, research projects or
    geographical regions or enable it to realize synergies with its existing
    businesses. Should the growth prospects or earnings potential of such
    assets as well as valuation assumptions change materially from initial
    assumptions, the Group might be under the obligation to adjust the values
    of these assets in its balance sheet, thereby negatively impacting its
    results and financial situation.
  *The marketing of certain products by the Group has been and could be
    affected by supply shortages and other disruptions. Such difficulties may
    be of both a regulatory nature (the need to correct certain technical
    problems in order to bring production sites into compliance with
    applicable regulations) and a technical nature (difficulties in obtaining
    supplies of satisfactory quality or difficulties in manufacturing active
    ingredients or drugs complying with their technical specifications on a
    sufficiently reliable and uniform basis). This situation may result in
    inventory shortages and/or in a significant reduction in the sales of one
    or more products. More specifically, in their US Hopkinton facility,
    Lonza, our supplier of IGF-1 (Increlex^® drug substance), is facing a
    regulatory challenge by the Food and Drug Administration that may result
    in a supply shortage in the US and in Europe.
  *In certain countries exposed to significant public deficits, and where it
    sells its drugs directly to public hospitals, the Group could face
    discount or lengthened payment terms or difficulties in recovering its
    receivables in full. In Greece notably, which represented in 2011
    approximately 1.6% of consolidated sales, and where payment terms from
    public hospitals are particularly long, the Group is closely monitoring
    the current situation. More generally, the Group may also be unable to
    purchase sufficient credit insurance to protect itself adequately against
    the risk of payment default from certain customers worldwide. Such
    situations could negatively impact the Group’s activities, financial
    situation and results.
  *In the normal course of business, the Group is or may be involved in legal
    or administrative proceedings. Financial claims are or may be brought
    against the Group in connection with some of these proceedings. Ipsen
    Pharmaceuticals, Inc. has received an administrative demand from the
    United States Attorney’s Office for the Northern District of Georgia
    seeking documents relating to its sales and marketing of Dysport^®
    (abobotulinumtoxinA) for therapeutic use. Ipsen’s policy is to fully
    comply with all applicable laws, rules and regulations. Ipsen is
    cooperating with the U.S. Attorney’s Office in responding to the
    government's administrative demand. Additionally, In February 2012,
    Allergan has commenced legal proceedings against Ipsen in Italy and in the
    United Kingdom concerning an alleged patent infringement. The patents
    claim certain therapeutic uses of botulinum toxin products in the field of
    urology. Ipsen will vigorously defend its rights in these legal
    proceedings, which are based on patents that are being challenged by Ipsen
    in opposition proceedings before the European Patent Office.

Major developments

During the first nine months of 2012, major developments included:

  *On January 5, 2012 – Oncodesign, a Drug Discovery company and Oncology
    pharmacology service provider, and Ipsen announced that the two companies
    have entered into a research collaboration to discover and develop
    innovative LRRK2 kinase inhibitors as potential therapeutic agents against
    Parkinson's disease and for potential additional uses in other therapeutic
    areas.
  *On January 24, 2012 – Santhera Pharmaceuticals and Ipsen announced that
    they had renegotiated their fipamezole licensing agreement. Santhera
    regains the worldwide rights to the development and commercialization of
    fipamezole, its first-in-class selective adrenergic alpha-2 receptor
    antagonist for the management of levodopa-induced Dyskinesia in
    Parkinson’s disease. Under the renegotiated terms, Ipsen returns its
    rights for territories outside of North America and Japan in exchange for
    milestone payments and royalties based on future partnering and commercial
    success of fipamezole. Ipsen retains a call option for worldwide license
    to the program under certain conditions.
  *On January 27, 2012 – Ipsen acknowledged the French government’s decision
    to no longer reimburse Tanakan^®, Tramisal^® and Ginkogink^®. This
    decision is linked to the French policy to reassess the reimbursement of a
    certain number of drugs by the French Social Security. Although Tanakan^®,
    Tramisal^® and Ginkogink^® have been delisted from 1st March 2012 onwards,
    they can continue to be prescribed and delivered by healthcare
    professionals to patients in France. The Group plans a decrease of
    Tanakan^® sales of around 35% in France in 2012. This estimate is based on
    decreases of sales following the delisting of veintonics in 2008.
  *On February 24, 2012 – Active Biotech’s and Ipsen’s castrate resistant
    prostate cancer project, TASQ, announced the presentation of the up to
    three years safety data from the TASQ Phase II study in chemotherapy-naïve
    metastatic castrate resistant prostate cancer (CRPC) at the 27th Annual
    EAU Congress.
  *On April 17, 2012 – Ipsen announced that its partner, Inspiration
    Biopharmaceuticals, Inc. (Inspiration), has submitted a Biologics License
    Application to the U.S. Food and Drug Administration (FDA) for the
    approval of IB1001, an intravenous recombinant factor IX (rFIX) for the
    treatment and prevention of bleeding in individuals with hemophilia B.
    Under the terms of this partnership and following the filing, Ipsen
    decided to pay Inspiration a $35 million milestone payment. In return,
    Inspiration has issued a convertible note to Ipsen, bringing Ipsen’s fully
    diluted equity ownership position in Inspiration to approximately 43.5%.
  *On April 25, 2012 – Ipsen announced the official opening of its new US
    commercial headquarters in Basking Ridge, New Jersey. This is an important
    step forward for Ipsen in the United States. This announcement confirms
    Ipsen’s commitment to growth for its uniquely targeted neurology and
    endocrinology therapeutics in the United States and to provide innovative
    specialty medicines to US patients in need.
  *On May 3, 2012 – Ipsen disclosed that it had sold, under a share purchase
    agreement, all of its shares in Spirogen Limited (19.31% of Spirogen’s
    equity) on February 24, 2012, and is no longer represented on the board of
    Spirogen. Ipsen received an upfront cash payment and may receive deferred
    consideration.
  *On May 3, 2012 – Ipsen disclosed that it had terminated its agreement with
    Novartis for the co-promotion of Exforge^® in France effective April 30,
    2012. Ipsen will receive a contractual cash exit fee payment of €4 million
    from Novartis.
  *On May 18, 2012 – Active Biotech and Ipsen announced the presentation of
    overall survival (OS) data from the Phase II study on tasquinimod (TASQ),
    their prostate cancer drug candidate (CRPC), at the scientific conference
    “2012 ASCO Annual Meeting” held in Chicago (USA) on 1-5 June 2012.
  *On May 21, 2012 – Active Biotech and Ipsen announced that recruitment to
    the global, pivotal, randomized, double-blind, placebo-controlled phase
    III study of tasquinimod in patients with metastatic castrate-resistant
    prostate cancer (CRPC) had reached an inclusion of 600 patients, half of
    the planned accrual. This triggered a €10 million milestone payment from
    Ipsen to Active Biotech.
  *On June 4, 2012 – Active Biotech and Ipsen presented overall survival (OS)
    data from the tasquinimod Phase II study in chemotherapy-naïve metastatic
    castrate resistant prostate cancer (CRPC) at the scientific conference
    “2012 ASCO Annual Meeting” held in Chicago (USA).
  *On June 29, 2012 – Ipsen announced that its partner Teijin received
    manufacturing and marketing approval from the Japan’s Ministry of Health,
    Labour and Welfare (MHLW) for Somatuline^® 60/90/120 mg for s.c. injection
    (lanreotide acetate). In Japan, Somatuline^® is indicated for the
    treatment of growth hormone and IGF-I (somatomedin-C) hypersecretion and
    related symptoms in acromegaly and pituitary gigantism (when response to
    surgical therapies is not satisfactory or surgical therapies are difficult
    to perform). Somatuline^® will be available in a new enhanced presentation
    with a pre-filled syringe that does not need reconstitution and with a
    retractable needle that enhances safety for caregivers.
  *On July 10, 2012 – Ipsen announced that its partner Inspiration
    Biopharmaceuticals Inc. (Inspiration) was notified by the Food and Drug
    Administration (FDA) that the two clinical trials evaluating the safety
    and efficacy of IB1001 were placed on clinical hold. During the course of
    routine laboratory evaluations conducted as part of the ongoing phase III
    clinical trials, Inspiration observed, and reported to the FDA, a trend
    towards a higher proportion of IB1001 treated individuals developing a
    positive response to testing of antibodies to Chinese Hamster Ovary (CHO)
    protein, the product's host cell protein (HCP). A total of 86 people with
    hemophilia B have received IB1001 in clinical studies and, to date, no
    adverse events (anaphylaxis or other serious allergic type reaction and
    nephrotic syndrome) related to the development of antibodies to CHO
    protein have been reported. Furthermore, no relationship has been
    demonstrated between the development of antibodies to CHO protein and the
    development of any antibodies to factor IX. Inspiration continues to
    follow subjects enrolled in clinical trials of IB1001 to collect
    safety-related information and will share this information with
    regulators.
  *On July 11, 2012 – Ipsen announced its decision to retain the Dreux
    (France)-based industrial facility within the scope of its activity.
    Considering the perspectives of Ipsen’s primary care activity
    internationally and as a result the higher than-expected production
    volumes at this site since the beginning of this year, the Group has
    decided to keep its Dreux industrial site.
  *On August 21, 2012 – Ipsen announced the renegotiation of its 2010
    strategic partnership agreement with Inspiration Biopharmaceuticals, Inc.
    (Inspiration) for the development and commercialization of Inspiration’s
    recombinant product portfolio: OBI-1, a recombinant porcine factor VIII
    (rpFVIII) being developed for the treatment of patients with acquired
    hemophilia A and congenital hemophilia A with inhibitors, and IB1001, a
    recombinant factor IX (rFIX) for the treatment and prevention of bleeding
    in patients with hemophilia B. The new agreement aims to establish an
    effective structure whereby Ipsen gains commercial rights in key
    territories. Inspiration remains responsible for the world-wide
    development of OBI-1 and IB1001. As part of the renegotiation, Ipsen paid
    Inspiration $30.0 million (approximately €24.0 million, based on current
    exchange rates) upfront. Including this upfront payment, Ipsen is entitled
    to pay Inspiration milestones for a total amount of up to $200m, of which
    $27.5m are regulatory milestones and the remaining are commercial
    milestones.
  *On September 10, 2012 – Ipsen announced that it has avoided an
    interruption in US supply of Increlex^® (IGF-1) for the treatment of
    Severe Primary IGF-1 Deficiency due to delays in manufacturing site
    approval. Increlex^® is an important drug used to treat patients with
    Severe Primary IGF-1 Deficiency (Primary IGFD) and is considered to be a
    drug of medical necessity. As a result, Ipsen has worked closely with the
    US Food and Drug Administration to maintain product supply.
  *On October 1, 2012 – Active Biotech and Ipsen have presented a new set of
    data on biomarkers from the previously concluded tasquinimod Phase II
    study in chemotherapy-naïve metastatic castrate resistant prostate cancer
    (CRPC) at the scientific congress ESMO (European Society for Medical
    Oncology) held in Vienna from 28 September to 02 October 2012.
  *On October 3, 2012 – Ipsen and Active Biotech announced the initiation of
    a new phase II proof of concept clinical trial, evaluating the activity of
    tasquinimod in advanced metastatic castrate resistant prostate cancer
    patients. The study aims at establishing the clinical efficacy of
    tasquinimod used as maintenance therapy in patients with metastatic
    castrate-resistant prostate cancer (mCRPC) who have not progressed after a
    first line docetaxel based chemotherapy.
  *On October 3, 2012 – Ipsen announced that Inspiration Biopharmaceuticals
    Inc. (Inspiration) had not raised third party financing by the contractual
    deadline of 30 September 2012. Consequently, Ipsen is no longer obligated
    to pay the additional $12.5 million in exchange for Inspiration equity.
    The parties continue to explore various options.
  *On October 19, 2012 – Ipsen announced that it will shortly initiate a new
    phase II, proof-of-concept clinical trial with tasquinimod in a so-called
    umbrella study evaluating the compound in four different tumour types. The
    study will evaluate the safety and efficacy of tasquinimod in advanced or
    metastatic hepato-cellular, ovarian, renal cell and gastric carcinomas in
    patients who have progressed after standard anti-tumor therapies.
  *On October 31 2012 - Ipsen announced that Inspiration Biopharmaceuticals
    Inc. (Inspiration) has commenced a voluntary reorganization case pursuant
    to Chapter 11’s provisions of the United States Bankruptcy Code.
    Inspiration's Chapter 11 case was filed on October 30, 2012 with the
    United States Bankruptcy Court in Boston, Massachusetts. With this filing,
    Inspiration seeked to have the Bankruptcy Court’s approval on detailed
    bidding and auction procedures for the sale of its assets to a third party
    purchaser. Inspiration’s assets are notably comprised of commercial rights
    to OBI-1, a recombinant porcine factor VIII (rpFVIII) for the treatment of
    hemophilia A with inhibitors and IB1001, a recombinant factor IX (rFIX)
    for the treatment of hemophilia B. Through its $200 million of convertible
    bonds, Ipsen is Inspiration's only senior secured creditor. Ipsen has
    agreed to include its hemophilia assets in the sale process under certain
    conditions. Ipsen’s assets are comprised of commercial rights to OBI-1 and
    IB1001 as well as its OBI-1 industrial facility in Milford (Boston, MA).
  *On November 20 2012 - Ipsen and Inspiration Biopharmaceuticals Inc.
    (Inspiration) announced that Inspiration has received Fast Track
    designation from the US Food and Drug Administration (FDA) for OBI-1 in
    acquired hemophilia A. OBI-1, an intravenous recombinant porcine factor
    VIII (FVIII), is being evaluated for the treatment of individuals with
    acquired hemophilia A, who have developed inhibitory antibodies
    (inhibitors) against their innate FVIII. Fast track is a designation that
    the FDA reserves for a drug intended to treat a serious disease and has a
    potential to fill an unmet medical need. Fast track designation is
    designed to facilitate the development and expedite the review of new
    drugs. Marketing applications for fast track development programs are
    likely to be considered appropriate for priority review, which implies an
    abbreviated review time of eight months. Inspiration intends to submit a
    biologics license application (BLA) to FDA in the first half of 2013.
  *On December 3, 2012 –Ipsen and Galderma, a leading global pharmaceutical
    company focused on dermatology, announced that their collaboration for the
    promotion and distribution of Dysport^®, Ipsen’s botulinum toxin type A in
    aesthetic indications, has been extended. Both companies renewed their
    collaboration in Brazil and Argentina and extended their partnership to
    Australia where Galderma has the exclusive promotion and distribution
    rights for Ipsen’s Dysport^® in aesthetic indications. Both companies also
    entered into a co-promotion agreement in South Korea where Galderma and
    Ipsen will co-promote Dysport^® and Restylane^®.
  *On December 10, 2012 – Active Biotech and Ipsen announced that the Phase
    III clinical trial for tasquinimod, a novel compound for the treatment of
    prostate cancer, is successfully enrolled with over 1,200 randomized
    patients as planned in the clinical protocol. This achievement triggers a
    €10 million milestone payment from Ipsen to Active Biotech.
  *On December 18, 2012 – Oncodesign, a Drug Discovery company and oncology
    pharmacology service provider, and the Laboratory for Neurobiology and
    Gene Therapy (LNGT) at the Department of Neurosciences at the KU Leuven,
    an expert academic group exploring the roles of LRRK2 and α-synuclein in
    Parkinson’s disease headed by Professor Veerle Baekelandt, announced that
    they have entered into a research collaboration. The collaboration builds
    on Oncodesign's LRRK2 program with advanced Nanocyclix^® lead molecules
    that was partnered with Ipsen in January 2012.

After 31 December 2012, major developments included:

  *On January 17, 2013 – Teijin Pharma Limited, the core company of the
    Teijin Group’s healthcare business, and Ipsen announced the launch of
    Somatuline^® 60/90/120 mg for subcutaneous injection in Japan for the
    treatment of acromegaly and pituitary gigantism (when response to surgical
    therapies is not satisfactory or surgical therapies are difficult to
    perform). In Japan, Teijin Pharma holds the rights to develop and market
    the drug.
  *On January 24, 2013 – Ipsen and Inspiration Biopharmaceuticals Inc.
    (Inspiration) today announced they entered into an Asset Purchase
    Agreement (APA) whereby Baxter International (Baxter) agrees to acquire
    the worldwide rights to OBI-1, a recombinant porcine factor VIII (rpFVIII)
    in development for congenital hemophilia A with inhibitors and acquired
    hemophilia A, and Ipsen’s industrial facility in Milford (Boston, MA). The
    APA was filed on 23 January 2013, with the US Federal Bankruptcy Court in
    Boston (MA). The sale is a result of joint marketing and sale process
    pursued by Ipsen and Inspiration shortly after Inspiration filed for
    protection under Chapter 11 of the U.S. Bankruptcy Code on October 30,
    2012.

Administrative measures

In a context of financial and economic crisis, the governments of many
countries in which the Group operates continue to introduce new measures to
reduce public health expenses, some of which are affecting the Group sales and
profitability in 2012. In addition, certain measures introduced in 2011 have
continued to affect the Group's accounts year-on-year.

Measures impacting 2012

In the Major Western European countries:

  *In France, the price of Forlax^® was reduced by 3.5% on 1 October, 2011
    and the prices of Nisis^®/Nisisco^® by 15.0% on 14 November, 2011. On 1
    January, 2012, the price of Decapeptyl^® was reduced by 3.0% for both
    3-month and 6-month formulations while the price of Adrovance^® was
    reduced by 33.0%. On 1 March 2012, Tanakan^® was delisted in France.
    An additional tax on promotional expenses of 0.6% has also been
    introduced. Moreover, sales of Nisis^®/Nisisco^® and Forlax^® were
    negatively impacted by a step-up in July in the regulation known as
    «tiers-payant», whereby the patient now pays upfront for a branded drug
    (when genericized) at the pharmacy and is reimbursed only later on;

  *In Spain, as of 1 November, 2011, tax on drug sales was raised from 7.5%
    (introduced in June 2010) to 15.0% for products that have been on the
    market for more than 10 years and have no generic or biosimilar on the
    Spanish market. In addition, Tanakan^®was dereimbursedon
    1 September 2012.

In the Other European countries:

  *In Belgium, as from 1 April 2012, as soon as a generic or a hybrid is
    launched on the market, drugs are regrouped per active ingredient
    regardless of their galenic form and prices are cut by up to 31.0%;

  *In Poland, a new Reimbursement Law Reform was enforced on 1 January 2012,
    introducing a sales tax in case of budget excess and a tax on
    manufacturers’ income to fund clinical trials. Regulated margins have been
    decreased as well. As a result, prices of Decapeptyl^® and Somatuline^®
    were both reduced by 3.0% on 1 January 2012;
  *Greece voted new measures designed to decrease pharmaceutical expenditure.
    Key measures include higher rebates to wholesalers and retail pharmacies
    (9.0% instead of 4.0% - retroactive effect as of 1 January 2012), an
    obligation to prescribe drugs labelled International Non-proprietary Name
    (INN) through an e-prescription system and introduction of a payback
    contribution in case of Health public budget overrun;
  *In 2011, Portugal introduced an electronic system encouraging prescription
    of the cheapest product (including generics). New countries have been
    included in the reference basket for the International Pricing System such
    as Slovakia, Spain and France. New measures for 2013 have already been
    published: 6.0% price cut on all drugs and contribution of the
    pharmaceutical industry to the decrease of healthcare spending through the
    set up by every Pharma company of a provision fund equal to 2.0% of sales;
  *In Hungary, a 10.0% additional tax on sales, on top of the 20.0% tax
    already in force, was introduced as of 1 August 2012 for all Somatuline^®
    formulations;
  *In Czech Republic, VAT on drugs was increased from 9.0% to 14.0% in
    January 2012.

In the Rest of the World:

  *China is finalizing its international reference pricing system including
    ten countries including the USA, France, Germany, South Korea and Japan;
  *In January 2011, Algeria set reference pricing per therapeutic class,
    hence a price alignment of Decapeptyl^® on the cheapest GnRH seems
    imminent;
  *In Korea, under the volume-control regulation in force since November
    2011, the price of the 11.25 mg formulation of Diphereline^® has been cut
    by 4.5% on 1 September, 2012;

Furthermore, and in the context of financial and economic crisis, governments
of many countries in which the Group operates continue to introduce new
measures to reduce public health expenses, some of them will affect the Group
sales and profitability beyond 2012. Health Technology Assessment (HTA)
methods are more broadly used in market access decisions in several part of
the world, including some emerging countries and Eastern European countries.

Measures which may have impacts beyond 2012

In the Major Western European countries:

  *The Spanish Health Minister confirmed a 14.0% reduction of healthcare
    budget in 2012. The new Royal Decree published in April 2011 stated that
    molecules that have been introduced in Europe for more than ten years will
    be regrouped per active ingredient and prices will be aligned on the
    cheapest daily dosage;
  *In France, the taxable basis for the promotion tax has been significantly
    extended to the institutional communication and congresses by a decree
    published in December 2012, with a retroactive impact since the beginning
    of the year;
  *In Italy, the cap for hospital expenditure has been increased from 2.4% to
    3.5%. In addition, Pharma Companies will have to pay 50.0% of any extra
    expenditure beyond this cap level;

In the Other European countries:

  *In Greece, a new price bulletin has been published in November 2011 based
    on the average of the 3 lowest prices within the Eurozone (27 countries),
    as well as a reimbursement reference price based on lower product price of
    ATC4 classification and a co-payment change. They should be in force in
    early 2013;
  *In Belgium, IRPP was updated with new rules and a reference basket of 6
    countries (France, Germany, the Netherlands, Austria, Ireland and
    Finland); it should be implemented in April 2013;

  *Within the frame of the Healthcare Reform, Russian Health Authorities are
    considering a possible change in the price-setting methodology for drugs
    on the Essential Drug List (EDL). Future registered prices for drugs on
    EDL should be set as the weighted average price of all drugs with the same
    International Non-proprietary Name (INN);

In the Rest of the World:

  *In Colombia, a new International Reference pricing system is expected
    during the second semester 2012, as well as maximum reimbursement prices
    on expensive drugs. Somatuline^® could face a price cut in the range of
    40%-50%;
  *Twelve Latin American countries (Argentina, Bolivia, Brazil, Chile,
    Colombia, Ecuador, Guyana, Paraguay, Peru, Surinam, Uruguay, and
    Venezuela) agreed to create a regional drug-pricing database in order to
    harmonize drug prices. Launch and impacts are unknown at this stage;
  *In South Korea, price-volume agreements negotiated in 2011 which have led
    to a 7.0% price decrease of Decapetpyl^® and Dysport^® will continue to
    negatively impact prices in 2013 with a further 7,5% decrease.

Comparison of consolidated sales for the fourth quarters and full year of 2012
and 2011

Sales by geographical area

Group sales by geographical area for the fourth quarter and full year of 2012
and 2011 were as follows:

              4th Quarter              12 Months
                                                         
                                                                       % change
                                                                       at
(in million   2012   2011   %        2012      2011     %       
euros)                         Change                        Change    constant

                                                                       currency
                                                                  
France         58.7    72.4    (18.9%)   246.3     292.9     (15.9%)   (15.9%)
United         14.7    12.6    16.8%     56.6      46.3      22.2%     14.1%
Kingdom
Spain          14.0    14.4    (3.0%)    56.8      59.2      (4.0%)    (4.0%)
Germany        19.6    18.2    7.2%      77.0      63.7      20.9%     20.9%
Italy          18.3    18.8    (2.4%)    81.7      79.9      2.3%      2.3%
Major
Western       125.2  136.4  (8.2%)   518.5    542.0    (4.3%)   (4.9%)
European
countries
                                                                       
Eastern        43.6    38.3    13.8%     169.1     151.2     11.8%     11.4%
Europe
Others         33.1    30.0    10.2%     136.9     128.4     6.7%      5.1%
Europe
Other
European      76.7   68.4   12.2%    306.0    279.6    9.5%     8.5%
Countries
                                                                       
North         18.2   18.4   (0.9%)   72.8     65.7     10.8%    2.3%
America
Asia           43.2    37.3    15.7%     167.3     138.3     21.0%     12.7%
Other
countries in   31.6    35.4    (10.8%)   154.8     134.2     15.4%     15.8%
the rest of
the world
Rest of the   74.7   72.7   2.8%     322.2    272.5    18.2%    14.1%
World
                                                                       
Group Sales    294.9   295.8   (0.3%)    1,219.5   1,159.8   5.1%      3.3%
Of which:
Total Drug     288.2   287.9   0.1%      1,187.0   1,127.9   5.2%      3.4%
Sales
Drug-related  6.6    7.9    (16.1%)  32.5      31.9     1.9%     0.7%
Sales^1
                                                                       

In the fourth quarter 2012, sales generated in the Major Western European
countries amounted to €125.2 million, down 8.2% year-on-year. For the full
year, sales generated in the major Western European countries amounted to
€518.5 million, down 4.9% year-on-year excluding foreign exchange impacts^2.
Dynamic volume sales growth of specialty care products were more than offset
by the consequences of a tougher competitive environment in the French primary
care landscape and administrative measures in Spain, outlined below. As a
result, sales in the Major Western European countries represented 42.5% of
total Group sales at the end of 2012, compared to 46.7% a year earlier.

^1 Active ingredients and raw materials
^2 Variations excluding foreign exchange impacts are computed by restating the
full year 2011 with full year 2012 average exchange rates

France – In the fourth quarter 2012, sales reached €58.7 million, down 18.9%
year-on-year. For the full year, sales totalled €246.3 million, down 15.9%
year-on-year, penalized by the accelerating decline of primary care sales.
Despite the strong volume growth of specialty care (mainly Somatuline^®,
NutropinAq^® and launch of Hexvix^®), sales were negatively impacted by
declining sales of Nisis^®/Nisisco^® following a 15% price reduction and the
arrival of several generics in November 2011 and by decreasing sales of
Tanakan^® after the delisting of the product as of 1^st March 2012.
Additionally, sales of Nisis^®/Nisisco^® and Forlax^® were negatively impacted
by a step-up in July in the regulation known as «Tiers-Payant», whereby the
patient now pays upfront for a branded drug and is later reimbursed. This has
generated an unprecedented and sudden increase in generic penetration.
Consequently, primary care sales in France are down by 29.7% year-on-year. The
relative weight of France in the Group’s consolidated sales continued to
decrease, representing 20.2% of total Group sales compared to 25.3% a year
earlier.

United Kingdom – In the fourth quarter 2012, sales reached €14.7 million, up
16.8% year-on-year. For the full year, sales totalled €56.6 million, up 14.1%
excluding foreign exchange impacts^1, fuelled by a very strong double digit
growth of Decapeptyl^® and a strong growth of Somatuline^® and ^ Dysport^®.
Sales also benefited from a favourable comparison basis related to accruals
booked in 2011 in conformance with the Pharmaceutical Price Regulation Scheme
(PPRS). Restated to exclude this PPRS effect, sales for the full year 2012
were up 11.0%. Over the period, the United Kingdom represented 4.6% of total
Group sales compared to 4.0% in 2011.

Spain – In the fourth quarter 2012, sales reached €14.0 million, down 3.0%
year-on-year. For the full year 2012, sales totalled €56.8 million, down 4.0%
year-on-year, penalized by the tax on sales increase to 15.0% from 7.5%
implemented on 1 November 2011. Additionally, the Spanish pharmaceutical
market slowed down significantly during the summer, with a double digit
decrease year-on-year. In 2012, sales in Spain represented 4.7% of total Group
sales, compared to 5.1% a year earlier.

Germany – In the fourth quarter 2012, sales reached €19.6 million, up 7.2%
year-on-year. For the full year 2012, sales amounted to €77.0 million, up
20.9% year-on-year, driven by strong volume growth of Somatuline^®, the
Hexvix^® launch on November 2011 and drug-related sales^2. For the full year
2012, sales in Germany represented 6.3% of total Group sales compared to 5.5%
a year earlier.

Italy – In the fourth quarter 2012, sales reached €18.3 million, down 2.4%
year-on-year. For the full year 2012, sales reached €81.7 million, up 2.3%
year-on-year, driven by the good performance of Somatuline^®, partly offset by
the sales of Dysport^® affected by competitive pressure and by the decline of
Forlax^® following a change in the distribution model. Italy represented 6.7%
of the Group’s consolidated sales at the end of 2012 compared to 6.9% a year
earlier.

In the fourth quarter 2012, sales generated in the Other European countries
reached €76.7 million, up 12.2% year-on-year. For the full year 2012, sales
amounted to €306.0 million, up 8.5% excluding foreign exchange impacts^1.
Sales were mainly driven by Russia where the good performance of specialty
care products and Tanakan^® have more than offset a destocking effect on
Smecta^® following its re-submission in 2011. Over the period, Poland, the
Netherlands, Ukraine and Belgium also contributed to the volume growth. In
2012, sales in this region represented 25.1% of total consolidated Group
sales, compared to 24.1% a year earlier.

In the fourth quarter 2012, sales generated in North America reached €18.2
million, slightly down by 0.9% year-on-year or up 7.8% restated from 2011
Apokyn^® sales. For the full year 2012, sales amounted to €72.8 million, up
2.3% excluding foreign exchange impacts^1. In November 2011, Ipsen sold its
North American development and marketing rights for Apokyn^®. As a
consequence, Ipsen stopped recording Apokyn^® sales in its accounts as of 30
November 2011. Restated to exclude Apokyn^® sales, North American sales were
up 11.5% year-on-year, driven by strong supply of Dysport^® for aesthetic use
to Medicis, by the continuous penetration of Somatuline^® in acromegaly and by
the growth of Dysport^® in the treatment of cervical dystonia. Sales in North
America represented 6.0% of total consolidated Group sales, compared to 5.7% a
year earlier.

In the fourth quarter 2012, sales generated in the Rest of the World reached
€74.7 million, up 2.8% year-on-year, despite an unfavourable comparison basis
related to a stocking effect in Algeria in the fourth quarter 2011 as well as
by a destocking of Dysport^® in the fourth quarter 2012 in Latin America. For
the full year 2012, sales amounted to €322.2 million, up 18.2% year-on-year or
up 14.1% excluding foreign exchange impacts^1, driven by a strong volume
growth in China, Colombia, Vietnam, Australia, Brazil and Mexico. In 2012,
sales in the Rest of the World continued to increase, representing 26.4% of
total consolidated Group sales, compared to 23.5% a year earlier.

^1 Variations excluding foreign exchange impacts are computed by restating the
2011 figures with the 2012 average exchange rates
^2 Active ingredients and raw materials

Sales by therapeutic area and by product

The following table shows sales by therapeutic area and by product for the
fourth quarter and full year of 2012 and 2011:

                  4th Quarter               12 Months
                                                               
                                                                            % change
                                                                            at
(in million       2012   2011   % Change   2012     2011     %       
euros)                                                            Change    constant

                                                                            currency
                                                                      
Uro-oncology       77.9    73.4    6.0%       318.7     285.0     11.8%     9.6%
of which           3.3     1.3     160.6%     12.3      1.3       857.7%    857.7%
Hexvix^®
of which           74.5    72.2    3.3%       306.4     283.6     8.0%      5.9%
Decapeptyl^®
Endocrinology      77.7    63.4    22.4%      307.6     264.4     16.3%     13.5%
of which           57.3    45.4    26.1%      225.7     188.4     19.8%     17.1%
Somatuline^®
of which           13.9    12.3    13.3%      53.6      50.9      5.4%      4.5%
NutropinAq^®
of which           6.5     5.8     12.9%      28.3      25.2      12.2%     5.1%
Increlex^®
Neurology          54.7    56.7    (3.4%)     236.2     210.1     12.4%     10.8%
of which           54.7    55.2    (0.8%)     236.1     204.6     15.4%     13.9%
Dysport^®
of which           0.0     1.5     (100.0%)   0.1       5.5       (97.9%)   (98.0%)
Apokyn^®
Specialty Care    210.3  193.6  8.6%       862.5    759.4    13.6%    11.3%
                                                                            
Gastroenterology   52.7    50.8    3.9%       199.9     193.7     3.2%      0.8%
of which           30.0    25.8    16.3%      113.5     102.3     10.9%     6.6%
Smecta^®
of which           9.3     10.8    (13.6%)    38.7      41.4      (6.5%)    (7.4%)
Forlax^®
Cognitive          17.2    25.8    (33.2%)    79.0      96.4      (18.0%)   (18.5%)
Disorders
of which           17.2    25.8    (33.2%)    79.0      96.4      (18.0%)   (18.5%)
Tanakan^®
Cardiovascular     4.2     12.5    (66.3%)    32.4      62.1      (47.8%)   (47.8%)
of which Nisis^®   1.5     9.6     (84.2%)    18.2      45.9      (60.4%)   (60.4%)
& Nisisco^®
of which           2.3     2.4     (2.9%)     11.9      12.7      (6.9%)    (6.9%)
Ginkor^®
Other Primary      3.8     5.2     (27.7%)    13.2      16.3      (19.1%)   (19.1%)
Care
of which           2.9     3.9     (26.7%)    11.5      12.8      (10.3%)   (10.3%)
Adrovance^®
Primary Care      78.0   94.3   (17.3%)   324.6    368.5    (11.9%)  (13.2%)
                                                                            
Total Drug Sales  288.2  287.9  0.1%       1,187.0  1,127.9  5.2%     3.4%
Drug-related       6.6     7.9     (16.1%)    32.5      31.9      1.9%      0.7%
Sales^1
Group Sales       294.9  295.8  (0.3%)     1,219.5  1,159.8  5.1%     3.3%
                                                                            

In the fourth quarter 2012, sales of Specialty Care products reached €210.3
million, up 8.6% year-on-year. For the full year 2012, sales amounted to
€862.5, up 13.6% year-on-year or up 11.3% excluding foreign exchange
impacts^2. Sales in endocrinology, neurology and uro-oncology grew by 13.5%,
10.8% and 9.6% respectively, excluding foreign exchange impacts^2. At the end
of 2012, the relative weight of Specialty Care products continued to increase
to 70.7% of total Group sales, compared to 65.5% a year earlier.

In uro-oncology, sales of Decapeptyl^®  reached €74.5 million for the fourth
quarter 2012, up 3.3% year-on-year. In 2012, sales amounted to €306.4 million,
up 5.9% excluding foreign exchange impacts^2, mainly driven by a good
performance in China, United Kingdom, Poland and Russia. Besides, on September
27^th, 2011, Ipsen in-licensed Hexvix^®, the first approved & marketed drug
for improved detection of bladder cancer. For the full year 2012, sales of
Hexvix^® amounted to €12.3 million, mostly generated in Germany. Sales in
uro-oncology represented 26.1% of total Group sales compared to 24.6% a year
earlier.

^1 Active ingredients and raw materials
^2 Variations excluding foreign exchange impacts are computed by restating the
full year 2011 with full year 2012 average exchange rates

In endocrinology sales continued to grow, reaching €77.7 million for the
fourth quarter 2012, up 22.4% year-on-year. For the full year, sales amounted
to €307.6 million, up 13.5% excluding foreign exchange impacts^3, representing
25.2% of total Group sales, compared to 22.8% a year earlier.

Somatuline^®  – In the fourth quarter 2012, sales reached €57.3 million, up
26.1%. For the full year 2012, Somatuline^® sales reached €225.7 million, up
17.1% year-on-year excluding foreign exchange impacts^1, fuelled by strong
growth in North America (16.8% excluding foreign exchange impacts^1) ^ as well
as continuous growth in France, Germany, Poland, Italy, Belgium, the
Netherlands and Colombia.

NutropinAq^® – In the fourth quarter 2012, sales reached €13.9 million, up
13.3% year-on-year. For the full year 2012, sales of NutropinAq^® reached
€53.6 million, up 4.5% excluding foreign exchange impacts^1, driven notably by
a good performance in Major Western European countries.

Increlex^® – In the fourth quarter 2012, sales reached €6.5 million, up 12.9%
year-on-year. Sales of Increlex^® for the full year 2012 amounted to €28.3
million, up 5.1% excluding foreign exchange impacts^1, benefiting from the
recognition of the paediatric use of Increlex^® by the Centre for Medicare and
Medicaid Services (CMS) in the US, allowing for a reduced rebate (17% rebate
instead of 23%).

In neurology, sales reached €54.7 million in the fourth quarter 2012, down
3.4% year-on-year. For the full year 2012, sales amounted to €236.2 million,
up 10.8% excluding foreign exchange impacts^1. Restated to exclude Apokyn^®
sales, divested on November 30th, 2011, sales were up 13.8% excluding foreign
exchange impacts^1. Sales ^ in neurology represented 19.4% of total Group
sales compared to 18.1% a year earlier.

Dysport^®  – In the fourth quarter 2012, sales reached €54.7 million, slightly
down by 0.8% year-on-year. Dysport^® sales were mainly penalized by an
unfavourable comparison basis in the fourth quarter 2011 in Russia. In 2012,
sales reached €236.1 million, up 13.9% year-on-year excluding foreign exchange
impacts^1, fuelled by strong sales growth in Brazil, Australia where the Group
signed an agreement in April 2012 with Galderma and in Russia. Restated to
exclude this stocking effect, sales were up 13.0% excluding foreign exchange
impacts^1. Sales were ^ also driven by supply sales to the Group’s aesthetics’
partners Medicis and Galderma.

Apokyn^® – In November 2011, Ipsen sold its North American development and
marketing rights for Apokyn^® to Britannia Pharmaceuticals. As a result, Ipsen
stopped recording Apokyn^® sales in its accounts as of 30 November 2011.

In the fourth quarter 2012, sales of Primary Care products amounted to €78.0
million, down 17.3% year-on-year, negatively impacted by the destocking effect
on Smecta^® in Russia and the consequences of a tougher competitive
environment in France, reinforced by the implementation of the “tiers-payant”
regulation, both mentioned above. For the full year 2012, sales amounted to
€324.6 million, down 11.9% year-on-year or down 13.2% excluding foreign
exchange impacts^1. Primary Care sales represented 26.6% of total Group sales
in 2012 against 31.8% a year earlier. Primary Care sales in France represented
38.1% of total Group Primary Care sales against 47.7% a year earlier.

In gastroenterology, sales reached €52.7 million in the fourth quarter 2012,
up 3.9% year-on-year. For the full year 2012, sales amounted to €199.9
million, up 0.8% year-on-year excluding foreign exchange impacts^1.

Smecta^®  – In the fourth quarter 2012, sales reached €30.0 million, up 16.3%
year-on-year. Sales of Smecta^® for the full year reached €113.5 million, up
6.6% year-on-year excluding foreign exchange impacts^1, fuelled notably by a
good performance in China. Sales of Smecta^® represented 9.3% of total Group
sales during the period compared with 8.8% a year earlier.

Forlax^®  – In the fourth quarter 2012, sales reached €9.3 million, down 13.6%
year-on-year. For 2012, sales amounted to €38.7 million, down 7.4%
year-on-year excluding foreign exchange impacts^1, mainly due to a step-up in
July in the regulation known as «Tiers-Payant» in France (as mentioned
above). Sales were also negatively impacted by an unfavourable comparison
basis in Algeria described above and by a change in distribution model in
Italy and in Belgium. In 2012, France represented 57.1% of the total sales of
the product, up from 55.5% a year earlier.

^1 Variations excluding foreign exchange impacts are computed by restating the
2011 figures with the 2012 average exchange rates

In the cognitive disorders area, sales of Tanakan^® in the fourth quarter 2012
reached €17.2 million, down 33.2% year-on-year. In the full year 2012 sales
reached €79.0 million, down 18.5% excluding foreign exchange impacts^1,
penalized by the delisting of the product in France as of 1 March 2012, in
Romania in May 2012 and in Spain in September, despite solid sales in Russia.
In 2012, 32.9% of Tanakan^® sales were made in France compared with 48.9% a
year earlier.

In the cardiovascular area, sales in the fourth quarter 2012 amounted to €4.2
million, down 66.3% year-on-year. In the full year 2012, sales amounted to
€32.4 million, down 47.8% year-on-year excluding foreign exchange impacts^1,
mainly impacted by the 15% price decrease of Nisis^®/Nisisco^®, the arrival of
several generics in November 2011 and the implementation of the “tiers-payant”
regulation described above.

Other primary care products sales reached €3.8 million in the fourth quarter
2012, down 27.7%. Sales for the full year 2012 amounted to €13.2 million, down
19.1% year-on-year. Sales of Adrovance^®  were down 10.3% year-on-year
excluding foreign exchange impacts^1, penalized by a 33.0% price cut enforced
in January 2012 in France, contributed to €11.5 million.

In the fourth quarter 2012, drug-related sales (active ingredients and raw
materials) reached  €6.6 million, down 16.1% year-on-year. For the full year
2012, sales amounted to €32.5 million, slightly up 0.7% excluding foreign
exchange impacts^1.

^1 Variations excluding foreign exchange impacts are computed by restating the
2011 figures with the 2012 average exchange rates

Contact:

Ipsen
Media
Didier Véron
Vice President, Public Affairs and Corporate Communications
Tel.: +33 (0)1 58 33 51 16
Fax: +33 (0)1 58 33 50 58
didier.veron@ipsen.com
or
Financial Community
Pierre Kemula
Vice President, Corporate Finance, Treasury and Financial Markets
Tel.: +33 (0)1 58 33 60 08
Fax: +33 (0)1 58 33 50 63
pierre.kemula@ipsen.com
or
Stéphane Durant des Aulnois
Investor Relations Manager
Tel.: +33 (0)1 58 33 60 09
Fax: +33 (0)1 58 33 50 63
stephane.durant.des.aulnois@ipsen.com
 
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