Ipsen: Leveraging an encompassing strategy to accelerate growth in pharma 

These efforts to balance Ipsen’s pipeline resulted in the acquisition or “in-licensing” of 20 targets across the three focus areas up to 2022. In addition, Ipsen acquired Epizyme, a biotechnology company that specialized in next-generation cancer treatments, expanding the former’s oncology capabilities.

Loew and his senior leadership team also doubled down on rare diseases as a critical area that Ipsen could further expand. He recognized that Ipsen’s size meant that it was more agile than larger companies, and therefore better placed to liaise with patient groups and healthcare providers to introduce new treatments for rare diseases. Ipsen also expanded its expertise in this area through the acquisition of Albireo, an innovator in the treatment of rare liver diseases.

Use purpose to help drive through efficiencies

Loew understood that, as a mid-sized company, Ipsen had limited resources and, consequently, if some areas of the business required greater focus, energy, and funding, it would have to offset this with efficiencies in others.

As part of the initial diagnosis, Loew decided that Ipsen was spreading itself too thinly across too many therapeutic fields. As a result, the strategic decision was to narrow Ipsen’s focus to oncology, rare diseases and neuroscience, and step away from its consumer healthcare division, which, although it had been the core of Ipsen’s original offering, was no longer considered a good fit going forward.

As well as stepping away from the customer healthcare part of the business, the internal review suggested operational expenses as a target for efficiencies. Ipsen’s operational expenses were five points higher than the average for companies of a similar size. A key issue was a lack of joined-up initiatives across territories. In response, the company launched the Efficiency for Growth initiative with the intention of lowering operating expenses. In 2021, the business successfully reduced its selling, general, and administrative expenses (SG&A) ratio by 3.5%.

Recognizing that culture was essential to positioning these efficiencies and that the company’s staff was highly purpose-driven and motivated by delivering treatments that would have a positive impact on patients, Loew engaged in a company-wide effort to create a high-performing culture that would continue to emphasize the centrality of patients and how succeeding in the market would make more resources available for R&D for new and better treatments.