Oddo maintains its 'neutral' recommendation on Ipsen shares, with an unchanged target price of 102 euros.

The research firm reports that Ipsen announced this morning that it will acquire Albireo through a public tender offer. Ipsen is offering $42 per share (a 104% premium) or $952 million plus a CVR of $10/share (an additional $225 million or so) contingent on FDA approval of Bylvay® in biliary atresia.

The deal is centered on Bylvay® (odevixibat), the first treatment approved for progressive familial intrahepatic cholestasis (PFIC) in the US and EU, with potential for other rare diseases.

The deal is significant in terms of size: the acquisition amount corresponds to half of the cash currently available for business development (Ipsen has hitherto indicated that it had E2 billion available) and will be dilutive until the end of 2024, estimates Oddo.

At first glance, peak sales should exceed $400-500 million", adds the broker.

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