( BW)(IPSEN)(IPN.PA) Ipsen: Initiation of Phase III Clinical Trials
with Decapeptyl(R)'s 4-Month Sustained Release Formulation

    Pharmaceutical Writers/Business Editors

    PARIS--(BUSINESS WIRE)--Dec. 14, 2006--Ipsen (Paris:IPN)
(Euronext:FR0010259150) announced today that the 4-month sustained
release formulation of Decapeptyl(R), originated from the Group's
internal research, is being tested in a phase III clinical trial. This
new formulation, aimed at improving patients' quality of life, is
based on Ipsen's proprietary drug delivery system technology and uses
the Group's advanced drug delivery platform. This development is part
of the life-cycle management strategy for the products of Ipsen
research and development pipeline.

    About Decapeptyl(R)

    Decapeptyl(R) is a formulation for injection of a peptide analogue
of GnRH (triptorelin) that was initially developed and continues to be
used mainly in the treatment of advanced metastatic prostate cancer.
In addition, Decapeptyl(R) is also indicated in the treatment of
uterine fibroids (a benign tumour of muscle tissues in the uterus),
endometriosis (proliferation of endometrial tissue, the mucous
membrane that lines the uterine wall outside the reproductive tract),
prior to surgery or when surgery is not deemed appropriate, as well as
early-onset puberty and female infertility (in vitro fertilisation).

    Decapeptyl(R) is available in monthly or quarterly
sustained-release formulations, as well as a daily formulation.

    Decapeptyl(R) has marketing authorisations in over 60 countries,
including 25 in Europe; it was launched in Great Britain in 2003
(quarterly formulation) and in Germany during 2004 (under the
Pamorelin(R) brand).

    In 2005, 67.1% of Decapeptyl(R) sales of a total amount of EUR
210.6 million derived from the major Western European countries. For
the first nine months of 2006, sales of Decapeptyl(R) reached EUR
168.4 million, up 5.7% compared to the first nine months of 2005.

    About oncology

    Oncology is one of the main targeted therapeutic areas of the
Ipsen Group, with endocrinology and neuromuscular disorders. Its
peptide and protein engineering and medicinal chemistry platforms
enable it to explore and develop new approaches in cancer treatment
under hormonal control. These research programmes are conducted
internally with assistance from university and industry specialists.

    About innovative delivery technologies

    Ipsen is one of the world leaders in sustained-release delivery
systems with two peptides currently marketed, triptorelin
(Decapeptyl(R)) and lanreotide (Somatuline(R) and Somatuline(R)
Autogel(R)). Further to Decapeptyl(R)'s research programmes, the Group
is also pursuing pre-clinical development of sustained-release
formulations of Somatuline(R) Autogel(R) for longer treatment duration
than the one already marketed (28 days). In addition, Ipsen signed a
R&D agreement with Genentech in November 2004, which covers the
development of sustained-release formulations of recombinant human
growth hormone. Moreover, under its agreement with Roche, Ipsen is
studying an innovative, user-friendly sustained release formulation of
BIM 51077, GLP-1 analogue, for type 2 diabetic patients.

    About Ipsen

    Ipsen is a European pharmaceutical group with over 20 products on
the market and a total worldwide staff of nearly 4,000. The Company's
development strategy is based on a combination of products in targeted
therapeutic areas (oncology, endocrinology and neuromuscular
disorders), which are growth drivers and primary care products which
contribute significantly to its research financing. This strategy is
also supported by an active policy of partnerships. The location of
its four R&D centers (Paris, Boston, Barcelona and London) gives the
Group a competitive edge in gaining access to leading university
research teams and highly qualified personnel. In 2005, Research and
Development expenditure reached EUR 169 million, i.e. 20.9% of
consolidated sales, which amounted to EUR 807 million in the Group's
pro forma accounts set up according to the IFRS. Nearly 700 people in
R&D are dedicated to the discovery and development of innovative drugs
for patient care. Ipsen's shares are traded on Segment A of Eurolist
by Euronext (stock code: IPN, ISIN code: FR0010259150). Ipsen's
internet website is www.ipsen.com.

    Forward-looking statements

    The forward-looking statements and targets contained herein are
based on Ipsen's management's 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.

    Ipsen 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. Ipsen's business is
subject to the risk factors outlined in its information documents
filed with the French Autorite des marches financiers.

    --30--DC/ps*

    CONTACT: Didier Veron
             Director, Public Affairs and Corporate Communications
             Tel.: +33 (0)1 44 30 42 38
             Fax: +33 (0)1 44 30 42 04
             didier.veron@ipsen.com
             or
             David Schilansky
             Investor Relations Officer
             Tel.: +33 (0)1 44 30 43 88
             Fax: +33 (0)1 44 30 43 21
             david.schilansky@ipsen.com