Blow for Ipsen as Roche drops taspoglutide, but good news on IB1001, as French drugmaker posts 5% rise in 2010 sales

French drugmaker Ipsen (Euronext: IPN) suffered a significant setback yesterday, when Swiss major Roche (ROG: VX) informed the group of its decision to return rights to the diabetes drug candidate taspoglutide to Ipsen. The drug was touted as having a sales potential of $2 billion a year, and the news saw Ipsen’s share fall as much as 4%.

Roche’s decision is based on the analysed data stemming from the root cause analysis carried-out on both nausea and hypersensitivity. According to the agreements signed with Roche in 2003 and 2006, Ipsen is entitled to the full body of data generated by Roche. Ipsen will thoroughly assess the available data to determine potential further partnership opportunities. Given the level of required investment, Ipsen says it does not intend to clinically develop taspoglutide on its own.

Roche’s decision to return taspoglutide to Ipsen triggers the accelerated recognition in 2010 of the deferred revenues corresponding to the taspoglutide milestones cashed-in but not recognized in Ipsen’s profit and loss account by the end of June 2010, amounting to a non-recurring, non-cash profit of around 41 million euros after tax.