Ipsen’s proposed acquisition of Memo Therapeutics, in a deal that could top 700 million euros, expands the French drugmaker’s rare-disease portfolio by adding the experimental kidney drug potrivutig, which targets the BK polyomavirus in kidney transplant recipients, RBC Capital Markets analysts Natalia Webster and Charles Weston said Wednesday.
“Potrivutig, a monoclonal antibody against BK polyomavirus, addresses genuine unmet need in kidney transplant recipients where no approved targeted therapies exist,” the analysts said in a research note. The drug is projected to reach the market from 2029 or 2030, the analysts wrote.
The proposed deal fits within Ipsen’s dealmaking playbook of targeting underserved rare-disease populations, according to RBC. Ipsen’s acquisition of Memo and its separate deal to buy Kartos Therapeutics earlier this week are likely to leave the company with an estimated net cash position of about 500 million euros at year-end, the analysts said. Ipsen shares fell 0.1% on the day.
In other European health care analyst coverage, Bank of America analysts said AstraZeneca might face questions about its ability to expand profitability when it reports second-quarter results. The U.K. drugmaker is expected to report quarterly sales of $15.4 billion and core earnings per share of $2.51, according to the bank. AstraZeneca is likely to reiterate its 2026 guidance, but debate about its 2027 profit margin could re-emerge, the analysts said. Consensus expectations point to a 160 basis-point expansion in the company’s core operating profit margin, though Bank of America said it is more cautious even while its sales estimate is above consensus. AstraZeneca shares fell 0.6%.
AbbVie and Genmab’s blood-cancer drug Epkinly showed a competitive profile in a late-stage lymphoma trial that boosts confidence in its potential, Bank of America analysts said. Strong results for a drug combination including Epkinly as a second-line treatment for diffuse large B-cell lymphoma support confidence in its potential to move to the first line of therapy, the analysts said. The study results can drive investor sentiment on Danish biotech Genmab ahead of what the analysts described as a busy second half, during which the company is due to release data on two wholly-owned drugs — Rina-S in ovarian cancer and petosemtamab in head and neck cancer. Each represents a $2 billion sales opportunity, according to Bank of America. Genmab shares rose 5.3%.
Abivax shares surged 30%, leading Europe’s Stoxx 600 index, after Stifel analysts said data for the company’s experimental ulcerative colitis treatment showed improved safety and better efficacy that should reassure investors. Negative side effects in the trial were limited, with no new concerns raised, the analysts said. The evidence supports a favorable benefit-to-risk profile ahead of the company’s planned submission of the drug to regulators in the fourth quarter of 2026, according to Stifel. The drug also performed well among patients with difficult-to-treat ulcerative colitis, suggesting more patients could benefit than previously thought, the analysts noted.
At a broader sector level, UBS analysts said investors are souring on European pharmaceutical and biotech stocks. “Overall, sentiment is relatively negative for European pharma and biotech sector, and many investors see the sector as a source of funding for AI trades,” the analysts said. There is interest in biotech, which can generate outsized returns if the right call is made at the right time, they added. Among European midsized pharma and biotech companies, UBS said Argenx, Genmab, Ipsen and UCB attract high investor interest.
The Stoxx Europe 600 Health Care index rose 0.8% on Wednesday.