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Ipsen’s First Quarter 2013 Sales



  Ipsen’s First Quarter 2013 Sales

                            * Group Sales up 5.3%^1
  * Solid Specialty Care Growth, up 8.0%^1

       * Somatuline^® up 12.6%^1
       * Dysport^® up 8.4%^1

  * Resilience of Primary Care, Down 1.9%^1, Supported by Strong International
                                   Sales Growth
  * 2013 Group Financial Objectives Reiterated

Business Wire

PARIS -- April 25, 2013

Regulatory News:

Ipsen (Euronext: IPN; ADR: IPSEY) reported today its sales for the first
quarter 2013.

First quarter 2013 unaudited IFRS consolidated sales
 
                                                                   % Change at
(in million euros)          2013        2012        % Change       constant
                                                                   currency
SALES BY REGION                                                     
Major Western               127.6       135.6       (5.9%)         (5.7%)
European countries
Other European              81.7        77.0        6.1%           6.2%
countries
North America               17.3        16.4        5.2%           6.6%
Rest of the world           80.1        63.8        25.5%          27.6%
Group Sales                 306.6       292.8       4.7%           5.3%
                                                                    
SALES BY THERAPEUTIC                                                
AREA
Specialty care              217.0       202.4       7.2%           8.0%
Primary care                80.4        81.9        (1.9%)         (1.9%)
Total Drug Sales            297.3       284.4       4.6%           5.1%
Drug-related sales^2        9.3         8.4         10.7%          11.5%
Group Sales                 306.6       292.8       4.7%           5.3%
                                                                    

Commenting on the first quarter 2013 performance, Marc de Garidel, Chairman
and Chief Executive Officer of Ipsen said: “Ipsen is off to a good start this
year with a solid specialty care growth, up 8.0%, notably driven by the good
performance of Somatuline^®. Moreover, primary care proved resilient with
strong growth of Smecta^® sales and international sales.” Marc de Garidel
added : “Despite supply shortage issues with Increlex^®, Ipsen confirms its
2013 guidance, both in terms of sales and recurring adjusted^3 operating
margin.”

^1 Year-on-year growth excluding foreign exchange impacts
^2 Drug related sales correspond to sales of active indredients and raw
materials
^3 Before non-recurring elements

First quarter 2013 sales highlights

Consolidated Group sales reached €306.6 million in the first quarter 2013, up
5.3% year-on-year excluding foreign exchange impacts^4.

Drug sales reached €297.3 million in the first quarter 2013, up 5.1%
year-on-year excluding foreign exchange impacts^1, driven by solid Specialty
Care growth, up 8.0% year-on-year excluding foreign exchange impacts^1.
Endocrinology, neurology and uro-oncology sales grew year-on-year by 10.8%,
8.4% and 4.7%, respectively, excluding foreign exchange impacts^1. In the
first quarter 2013, the relative weight of specialty care products continued
to increase to reach 70.8% of total Group sales, compared to 69.1% the
previous year.

Sales of Primary Care products amounted to €80.4 million, down 1.9%
year-on-year excluding foreign exchange impacts^1, negatively impacted in
France by the consequences of a tougher competitive environment and by the
step-up during the summer 2012 of the regulation known as “Tiers-Payant^5”,
partly offset by strong international sales growth.

Sales in the Major Western European countries amounted to €127.6 million, down
5.7% year-on-year excluding foreign exchange impacts^1. The dynamic specialty
care volume growth was more than offset by:

  * In France, the consequences of a tougher primary care competitive
    environment and the slight decline in specialty care sales, mainly due to
    the collateral effect of the restructuring plan;
  * In Spain, the significant decline of the Spanish pharmaceutical market
    which negatively impacted Decapeptyl^® sales.

Sales in Other European countries reached €81.7 million, up 6.2% year-on-year
excluding foreign exchange impacts^1. Sales growth was mainly driven by Russia
where both specialty care (notably Dysport^® and Decapeptyl^®) and primary
care (notably Tanakan^® and Fortrans^®) performed strongly. In the first
quarter 2013, sales in this region represented 26.7% of total consolidated
Group sales compared to 26.3% the previous year.

Sales in North America reached €17.3 million, up 6.6% year-on-year excluding
foreign exchange impacts^1, mainly driven by the continuous penetration of
Somatuline^® in acromegaly, the supply of Dysport^® for aesthetic use to
Medicis and the growth of Dysport^® in the treatment of cervical dystonia.
Sales were negatively impacted by lower sales of Increlex^® further to the
management of the anticipated shortage period. Sales in North America
represented 5.6% of total consolidated Group sales, a stable ratio
year-on-year.

Sales generated in the Rest of the World reached €80.1 million, up 27.6%
year-on-year excluding foreign exchange impacts^1. This performance was mainly
driven by strong volume growth in China (notably Decapeptyl^®), in Australia
(where the Group signed an agreement in April 2012 with Galderma for the
distribution of Dysport^® in aesthetic use), in Algeria and in Vietnam. Sales
in the Rest of the World reached 26.1% of total consolidated Group sales in
the first quarter 2013 compared to 21.8% the previous year.

^1 Variations excluding foreign exchange impacts are computed by restating the
first three months of 2012 with the first three months of 2013 average
exchange rates
^2 « Tiers-Payant » regulation: the patient now pays upfront for a branded
drug and is later reimbursed

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, endocrinology
and uro-oncology. 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 2012, R&D expenditure totalled close to
€250 million, representing more than 20% of Group sales. The Group has close
to 4,900 employees worldwide. 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.

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 2012 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.
  * 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 delay or 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, Ipsen’s supplier of Increlex^® active ingredient, is facing
    manufacturing issues with Increlex^® at its Hopkinton site (MA, USA).
    Lonza is working closely with the Food and Drug Administration (FDA) to
    address these issues. Ipsen is diligently addressing management of the
    shortage period to reduce its impact on the patients and their families.
    The supply interruption is expected in Q2 2013 in the US and in Q3 2013 in
    Europe and the rest of the world. Re-supply before the end of 2013 is not
    currently anticipated.
  * 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 quarter 2013, 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. The APA is subject to certain closing conditions, including
    Bankruptcy Court and regulatory approvals. Ipsen has agreed to extend the
    DIP to Inspiration for a period of 45 days i.e. for an additional amount
    of up to c. $5 million.
  * On 6 February 2013 - Ipsen and Inspiration Biopharmaceuticals Inc.
    (Inspiration) announced they entered into an Asset Purchase Agreement
    (APA) whereby Cangene Corporation (Cangene) agrees to acquire the
    worldwide rights to IB1001, a recombinant factor IX (rFIX) for the
    treatment of hemophilia B. Under the terms of the APA, Cangene has agreed
    to pay $5.9 million upfront, up to $50 million in potential additional
    commercial milestones as well net sales payments equivalent to tiered
    double digit percentage of IB1001 annual net sales. The APA is subject to
    certain closing conditions including Bankruptcy Court approval.
  * On 7 February 2013 - Ipsen and Braintree Laboratories, Inc., a US-based
    company specializing in the development, manufacturing and marketing of
    specialty pharmaceuticals announced today that Eziclen^® / Izinova^®
    (BLI-800) successfully completed its European decentralized registration
    procedure involving sixteen countries. The product will be indicated in
    adults for bowel cleansing prior to any procedure requiring a clean bowel
    (e.g. bowel visualization including bowel endoscopy and radiology or
    surgical procedure).
  * On 20 February 2013 - Ipsen and Inspiration Biopharmaceuticals Inc.
    (Inspiration) announced the closing of the sale of the proprietary
    hemophilia B product, IB1001 (recombinant FIX), to Cangene Corporation
    (Cangene). Ipsen and Inspiration jointly agreed to sell their respective
    commercialization rights to IB1001 as part of the transaction. Cangene
    acquired worldwide rights to IB1001, a recombinant factor IX currently
    under regulatory review in the United States and Europe.
  * On 21 March 2013 - Ipsen and Inspiration Biopharmaceuticals Inc.
    (Inspiration) announced the closing of the sale of its lead hemophilia
    program, OBI-1 to Baxter International Inc. (Baxter), the global leader in
    hemophilia. Baxter acquired worldwide rights to OBI-1, a recombinant
    porcine factor VIII in development for the treatment of congenital
    hemophilia A with inhibitors and acquired hemophilia A, as well as Ipsen’s
    manufacturing facility for OBI-1 in Milford, Massachusetts. The Ipsen
    employees working on the development and manufacturing of OBI-1 are
    offered employment by Baxter. Baxter has agreed to pay $50 million
    upfront, up to $135 million in potential additional development and sales
    milestones as well as tiered net sales payments ranging from 12.5% to
    17.5% of OBI-1 global net sales. OBI-1 is currently in a pivotal trial for
    the treatment of individuals with acquired hemophilia A. As Inspiration’s
    only senior secured creditor and as the owner of non-Inspiration assets
    that will be included in the sale of both OBI-1 and IB1001, Ipsen will
    receive at least 60% of the upfront payments. Over and above these upfront
    amounts, Ipsen will receive 80% of all payments up to a present value of
    $304 million and 50% of all proceeds thereafter.

After 31 March 2013, major developments included:

  * On 9 April, 2013 –Ipsen announced that Health Canada has granted a
    marketing authorization for Dysport^® (Botulinum toxin type A for
    injection) for the temporary improvement in the appearance of moderate to
    severe frown lines (glabellar lines) in adult patients younger than 65
    years of age. Medicis Aesthetics Canada, a division of Valeant
    Pharmaceuticals, will market Dysport^® for use in aesthetic medicine in
    Canada. Launch is expected in April 2013.
  * On 10 April, 2013 –PeptiDream Inc., a Tokyo-based pharmaceutical company
    (PeptiDream), and Ipsen announced that they have entered into a research
    collaboration and license option agreement to discover, evaluate,
    potentially develop and launch therapeutic peptides to treat serious
    medical conditions in areas of therapeutic focus for Ipsen.
  * On 24 avril 2013 – Upon proposal of the Appointments and Governance
    Committee, the Board of Directors of Ipsen will propose to the Combined
    Shareholders’ Meeting to be held on 31 May 2013 the renewal of the terms
    of office as Directors of Mr. Antoine Flochel and Mr. Gérard Hauser and
    the appointment as a Director of Mrs. Martha Crawford in replacement of
    Mr. Klaus-Peter Schwabe who did not request the renewal of his term of
    office.
  * On 25 April, 2013 – Ipsen announced that the supplier of Increlex^®’s
    (mecasermin [rDNA origin] Injection) active ingredient, Lonza, is facing
    manufacturing issues with Increlex^® at its Hopkinton site (MA, USA).
    Lonza is working closely with the Food and Drug Administration (FDA) to
    address these issues. Ipsen is diligently addressing management of the
    shortage period to reduce its impact on the patients and their families.
    The supply interruption is expected in Q2 2013 in the US and in Q3 2013 in
    Europe and the rest of the world. Re-supply before the end of 2013 is not
    currently anticipated.
  * On 25 April, 2013 – Active Biotech and Ipsen announced that the companies
    have updated the analysis plan for the 10TASQ10 trial, a global Phase III
    clinical trial evaluating tasquinimod in patients with metastatic
    castrate-resistant prostate cancer (mCRPC) who have not yet received
    chemotherapy. The companies now plan to conduct the primary PFS analysis
    for the 10TASQ10 trial in 2014, at the same time as the first interim
    overall survival (OS) analysis. The time point for the OS interim analysis
    will be driven by the number of OS events. The specified number of
    radiographic progression-free survival (PFS) events for the primary
    end-point will have been exceeded at the time of interim OS analysis.

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 2013. In addition, certain measures introduced in 2012 have
continued to affect the Group's accounts year-on-year.

Measures impacting 2013

In the Major Western European countries:

  * In France, Tanakan^® was delisted on 1^st March 2012. 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) and is only reimbursed
    later on;
  * In Spain, Tanakan^® was dereimbursed on 1^st September 2012. The new draft
    of the Royal Decree that establishes the new prices for products that are
    more than 10 years old was issued in March 2013 and affects all the LhRH
    analogues. Price impacts should be known during the 2^nd quarter 2013;
  * In Italy, the process of aligning on the lowest regional price for LhRH is
    not yet enforced. This due to the political context.

In the Other European countries:

  * In Belgium, a modulated price decrease of 1.95% on reimbursed products is
    applicable since 1^st April 2013 through the Inami tax;
  * In Portugal, new countries have been included in the reference basket for
    the International Pricing System such as Slovakia, Spain and France. For
    retail products, the price is the average of the basket and, for hospital
    products, the price is the lowest price of the basket. The new prices have
    been enforced on 1^st April 2013;
  * In Hungary, a 10.0% additional tax on sales, on top of the 20.0% tax
    already in force, was introduced as of 1^st August 2012 for all
    Somatuline^® formulations;
  * In Czech Republic, VAT on drugs was increased from 14% to 15% in January
    2013. New prices have been published on 1^st January 2013 as a result of
    International price referencing (average of the 3 lowest prices in EU 18),
    leading to price reductions in the range of -12% to -32% on Ipsen
    portfolio;
  * In Slovakia, new prices have been published on 1^st March 2013. It is the
    result of International reference pricing based on the 2^nd lowest price
    in EU 27. The next price bulletin is already established but will be
    enforced on 1^st June 2013 and is based on the average 3 lowest price in
    EU 27. Cumulative price decreases will impact Decapeptyl^® by -6% and
    Somatuline^® -7%;
  * In Greece, a new price bulletin was been published mid February 2013,
    impacting all LhRH analogues;
  * In Finland, a general price cut of 5% was applied on all drugs on 1^st
    February 2013 on the basis of cost containement measures;
  * In the Netherlands, switch of Growth Hormones budget from retail to
    hospital with new reimbursement system imposed by NZA (Dutch health
    authority) on 1^st January 2013;
  * In Poland, new limit of reimbursement was set by the launch of new
    competitor which led to patient co-payments on 1^st January 2013 and thus
    to a general price decrease by the industry.

In the Rest of the World:

  * China is still working on its international reference pricing system
    including ten countries such as 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; more recently, Algerian authorities have imposed a price
    decrease of 10% on Dysport^® for the hospital market;
  * 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^st September 2012 and will be further cut in 2013 by 7.3%,
    while Dysport^® price will be cut by 7%.

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 2013. 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 2013

In the Major Western European countries:

  * 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;
  * 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 Portugal, the outcome of negotiations between Pharma industry and
    Ministry of Health on the reimbursement threshold borne by the industry is
    expected soon. The final 2012 reimbursment amount is not yet confirmed,
    nor is the 2013 threshold. The final agreement will be very much dependent
    on drug value expenditure to be reached in 2013 as percentage of GDP;
  * In Greece, a new price bulletin is expected mid-year with further price
    adjustment. Claw-back will be adjusted, if any, by year-end, based on a
    €2.44 billion target set for 2013 by Ministry of Health. The government is
    aiming at €2 billion for 2014;
  * In Belgium, International Reference Pricing 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 2013;
  * In the Netherlands, shift of budget for Somatostatin and LhRH analogues
    from retail to intra-mural hospital is expected in 2014;
  * 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
    the 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 was implemented
    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.

Comparison of consolidated sales for the first quarter 2013 and 2012:

Sales by geographical area

Group sales by geographical area for the first quarter 2013 and 2012 were as
follows:

                          
                         First Quarter
                                                                    
                                                                   % Variation
(in million euros)       2013        2012        % Variation       at
                                                                   constant
                                                                   currency
                                                                  
France                   58.6        68.4        (14.4%)           (14.4%)
United Kingdom           13.2        12.8        2.8%              4.9%
Spain                    14.4        15.0        (3.7%)            (3.7%)
Germany                  20.5        18.3        11.9%             11.9%
Italy                    20.9        21.0        (0.6%)            (0.6%)
Major Western            127.6       135.6       (5.9%)            (5.7%)
European countries
Eastern Europe           46.0        42.6        7.8%              8.3%
Others Europe            35.8        34.4        3.9%              3.6%
Other European           81.7        77.0        6.1%              6.2%
Countries
                                                                    
North America            17.3        16.4        5.2%              6.6%
Asia                     39.4        28.7        37.2%             36.7%
Other countries in
the rest of the          40.7        35.1        16.0%             19.9%
world
Rest of the World        80.1        63.8        25.5%             27.6%
                                                                    
Group Sales              306.6       292.8       4.7%              5.3%
Of which: Total          297.3       284.4       4.6%              5.1%
Drug Sales
Drug-related             9.3         8.4         10.7%             11.5%
Sales^1
                                                                    

In the first quarter 2013, sales generated in the Major Western European
countries amounted to €127.6 million, down 5.7% year-on-year excluding foreign
exchange impacts^2. The dynamic sales growth of specialty care products in
volume was more than offset by the consequences of a tougher competitive
environment in the French primary care market. Sales in the Major Western
European countries represented 41.6% of total Group sales in the first quarter
2013, compared to 46.3% the previous year.

France – In the first quarter 2013, sales reached €58.6 million, down 14.4%
year-on-year, penalized by the accelerating decline of primary care sales. The
strong growth of Smecta^®, resulting from a gastroenteritis epidemy larger
than the previous year, was not sufficient to fully offset the decrease in
primary care sales, driven by declining sales of Nisis^®/Nisisco^® (following
the launch of several generics and a 15% price cut in November 2011) and of
Tanakan^® following the product delisting as of 1^st March 2012. Additionally,
since July 2012, sales of the Group’s genericized drugs (Nisis^®/Nisisco^® and
Forlax^®) were negatively impacted by the step-up of the regulation known as
“Tiers-Payant^3”. In the first quarter 2013, specialty care growth slightly
declined, mainly due to the collateral effect of the restructuring plan,
despite the solid volume growth of Somatuline^® and NutropinAq^®.
Consequently, the relative weight of France in the Group consolidated sales
continued to decrease, representing 19.1% of total Group sales compared to
23.4% in the previous year.

United Kingdom – In the first quarter 2013, sales reached €13.2 million, up
4.9% year-on-year excluding foreign exchange impacts^2, fuelled by
Decapeptyl^® and Somatuline^® volume growth. In the first quarter 2013, the
United Kingdom represented 4.3% of total Group sales compared to 4.4% the
previous year.

Spain – In the first quarter 2013, sales reached €14.4 million, down 3.7%
year-on-year, penalized by the significant decline of the Spanish
pharmaceutical market which impacted Decapeptyl^® sales. In the first quarter
2013, sales in Spain represented 4.7% of total Group sales compared to 5.1%
the previous year.

Germany – In the first quarter 2013, sales reached €20.5 million, up 11.9%
year-on-year, driven by the strong volume growth of Somatuline^®, NutropinAq^®
and Dysport^®. In the first quarter 2013, sales in Germany represented 6.7% of
total Group sales compared to 6.2% the previous year.

Italy – In the first quarter 2013, sales reached €20.9 million, about stable
year-on-year, negatively impacted by no Forlax^® sales in the period resulting
from a delay in the change of distribution model. The strong Decapeptyl^® and
Somatuline^® volume growth almost offset the elements above. Italy represented
6.8% of the Group sales in the quarter compared to 7.2% the previous year.

^1 Active ingredients and raw materials
^2 Variations excluding foreign exchange impacts are computed by restating the
first three months of 2012 with the first three months of 2013 average
exchange rates
^3 « Tiers-Payant » regulation: the patient now pays upfront for a branded
drug and is later reimbursed

In the first quarter 2013, sales generated in the Other European countries
reached €81.7 million, up 6.2% year-on-year excluding foreign exchange
impacts^1. Sales growth was mainly driven by Russia where both specialty care
(notably Dysport^® and Decapeptyl^®) and primary care (notably Tanakan^® and
Fortrans^®) performed strongly. In the first quarter 2013, sales in this
region represented 26.7% of total consolidated Group sales compared to 26.3%
the previous year.

In the first quarter 2013, sales generated in North America reached €17.3
million, up 6.6% year-on-year excluding foreign exchange impacts^1, mainly
driven by the continuous penetration of Somatuline^® in acromegaly, the supply
of Dysport^® for aesthetic use to Medicis and the growth of Dysport^® in the
treatment of cervical dystonia. Sales were negatively impacted by lower sales
of Increlex^® further to the management of the anticipated shortage period.
Sales in North America represented 5.6% of total consolidated Group sales, a
stable ratio year-on-year.

In the first quarter 2013, sales generated in the Rest of the World reached
€80.1 million, up 27.6% year-on-year excluding foreign exchange impacts^1.
This performance was mainly driven by strong volume growth in China (notably
Decapeptyl^®), in Australia (where the Group signed an agreement in April 2012
with Galderma for the distribution of Dysport^® in aesthetic use), in Algeria
and in Vietnam. Sales in the Rest of the World reached 26.1% of total
consolidated Group sales in the quarter compared to 21.8% the previous year.

^1 Variations excluding foreign exchange impacts are computed by restating the
first three months of 2012 with the first three months of 2013 average
exchange rates

Sales by therapeutic area and by product

The following table shows sales by therapeutic area and by product for the
first quarter 2013 and 2012:

                            
                           First Quarter
                                                                      
                                                                     %
                                                                     Variation
(in million euros)         2013        2012        % Variation       at
                                                                     constant
                                                                     currency
                                                                      
Uro-oncology               74.3        71.0        4.6%              4.7%
of which Hexvix^®          4.0         3.0         33.7              33.7%
of which                   70.2        68.0        3.3%              3.4%
Decapeptyl^®
Endocrinology              81.9        74.0        10.6%             10.8%
of which                   61.5        54.7        12.4%             12.6%
Somatuline^®
of which                   14.1        13.1        7.5%              7.6%
NutropinAq^®
of which Increlex^®        6.3         6.2         1.2%              2.1%
Neurology                  60.8        57.4        5.9%              8.4%
of which Dysport^®         60.8        57.4        5.9%              8.4%
Specialty Care             217.0       202.4       7.2%              8.0%
                                                                      
Gastroenterology           53.7        44.6        20.4%             20.3%
of which Smecta^®          29.7        26.6        11.4%             11.2%
of which Forlax^®          8.9         9.9         (10.6%)           (10.6%)
Cognitive Disorders        17.4        23.0        (24.2%)           (24.0%)
of which Tanakan^®         17.4        23.0        (24.2%)           (24.0%)
Cardiovascular             6.2         11.0        (43.9%)           (43.9%)
of which Nisis &           2.0         6.9         (71.5%)           (71.5%)
Nisisco^®
of which Ginkor^®          4.2         3.2         32.0%             32.0%
Other Primary Care         3.1         3.3         (6.9%)            (6.9%)
of which Adrovance^®       2.6         3.0         (14.5%)           (14.5%)
Primary Care               80.4        81.9        (1.9%)            (1.9%)
                                                                      
Total Drug Sales           297.3       284.4       4.6%              5.1%
Drug-related Sales^1       9.3         8.4         10.7%             11.5%
Group Sales                306.6       292.8       4.7%              5.3%
                                                                      

In the first quarter 2013, sales of Specialty Care products reached €217.0
million, up 8.0% year-on-year excluding foreign exchange impacts^2. Sales in
endocrinology, neurology and uro-oncology grew year-on-year by 10.8%, 8.4% and
4.7%, respectively, excluding foreign exchange impacts^2. The relative weight
of Specialty Care products continued to increase in the quarter to reach 70.8%
of total Group sales, compared to 69.1% the previous year.

In uro-oncology, sales of Decapeptyl^®  reached €70.2 million in the first
quarter 2013, up 3.4% year-on-year excluding foreign exchange impacts^2.
Strong volume growth in China and solid sales growth in Italy, Russia and the
United Kingdom, were partly offset by lower sales in France where market is
under pressure, and price pressure in Poland. In the first quarter 2013, sales
of Hexvix^® amounted to €4.0 million, mostly generated in Germany. Sales in
uro-oncology represented 24.2% of total Group sales, a stable ratio
year-on-year.

^1 Active ingredients and raw materials
^2 Variations excluding foreign exchange impacts are computed by restating the
first three months of 2012 with the first three months of 2013 average
exchange rates

In endocrinology, sales continued to grow, reaching €81.9 million in the first
quarter 2013, up 10.8% year-on-year excluding foreign exchange impacts^2,
representing 26.7% of total Group sales, compared to 25.3% in the previous
year.

Somatuline^® – In the first quarter 2013, sales reached €61.5 million, up
12.6% excluding foreign exchange impacts^3, fuelled by strong growth in the
United States, Mexico, Germany and France, where we noticed a dynamic trend.

NutropinAq^® – In the first quarter 2013, sales totalled €14.1 million, up
7.6% excluding foreign exchange impacts^1, driven by strong performance in
Germany, France and the Netherlands.

Increlex^® – In the first quarter 2013, sales amounted to €6.3 million, up
2.1% excluding foreign exchange impacts^1. In North America, sales of
Increlex^® were negatively affected by the management of the anticipated
shortage period, partly offset by the positive impact of the recognition of
the paediatric use of Increlex^® by the Centre for Medicare and Medicaid
Services (CMS) in the US, allowing for a reduced compulsory rebate (17% rebate
instead of 23%).

In neurology, Dysport^® sales reached €60.8 million in the first quarter 2013,
up 8.4% year-on-year excluding foreign exchange impacts^1, representing 19.8%
of total Group sales, compared to 19.6% the previous year. The growth was
mainly driven by a strong sales growth in Russia and Australia.

In the first quarter 2013, sales of Primary Care products amounted to €80.4
million, down 1.9% year-on-year excluding foreign exchange impacts^1,
negatively impacted by the consequences of a tougher competitive environment
in France and by the step-up during the summer 2012 of the regulation known as
“Tiers-Payant^4”, partly offset by strong international sales growth. In the
first quarter 2013, primary care sales represented 26.2% of the Group’s
consolidated sales compared to 28.0% the previous year. Primary Care sales in
France represented 35.0% of total Group Primary Care sales, compared to 46.3%
the previous year.

In gastroenterology, sales reached €53.7 million, up 20.3% year-on-year
excluding foreign exchange impacts^1, driven notably by anticipated orders in
Vietnam ahead of import license renewal and by a favourable comparison basis
related to Etiasa^® in China in the first quarter 2012.

Smecta^®  – In the first quarter 2013, sales reached €29.7 million, up 11.2%
year-on-year excluding foreign exchange impacts^1, resulting from a
gastroenteritis epidemy larger than the previous year in Europe and from a
solid growth in China. Smecta^® sales represented 9.7% of total Group sales
over the period compared to 9.1% the previous year.

Forlax^®  – In the first quarter 2013, sales amounted to €8.9 million, down
10.6% year-on-year excluding foreign exchange impacts^1, mainly penalized by
the step-up of the regulation known as “Tiers-Payant^2” and the change of
distribution model in Italy (mentioned above). France represented 60.8% of
total product sales in the quarter, compared to 61.2% the previous year.

In the cognitive disorders area, sales of Tanakan^® in the first quarter 2013
reached €17.4 million, down 24.0% year-on-year excluding foreign exchange
impacts^1, penalized by the delisting of the product in France as of 1st March
2012 and in Romania in May 2012, partly offset by solid sales growth in
Russia. In the first quarter 2013, 25.9% of Tanakan^® sales were made in
France compared with 40.3% the previous year.

In the cardiovascular area, sales in the first quarter 2013 amounted to €6.2
million, down 43.9% year-on-year, mainly impacted by the 71.5% decline in
Nisis^®/Nisisco^® sales following the arrival of several generics and a 15%
price cut in November 2011, and by the step-up of the regulation known as
“Tiers-Payant^2” in July 2012.

^1 Variations excluding foreign exchange impacts are computed by restating the
first three months of 2012 with the first three months of 2013 average
exchange rates
^2 « Tiers-Payant » regulation: the patient now pays upfront for a branded
drug and is later reimbursed

Sales of Other primary care products reached €3.1 million in the first quarter
2013, down 6.9% year-on-year excluding foreign exchange impacts^1, mainly
impacted by the decline in Adrovance^®  sales of 14.5% excluding foreign
exchange impacts^1.

In the first quarter 2013, drug-related sales (active ingredients and raw
materials) reached  €9.3 million, up 11.5% year-on-year excluding foreign
exchange impacts^1.

^1 Variations excluding foreign exchange impacts are computed by restating the
first three months of 2012 with the first three months of 2013 average
exchange rates

Contact:

For further information:
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
Brigitte Le Guennec
Media and Public Relations Officer
Tel.: +33 (0)1 58 33 51 17
Fax: +33 (0)1 58 33 50 58
brigitte.le.guennec@ipsen.com
or
Stéphane Durant des Aulnois
Investor Relations Officer
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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