Agreement between Ipsen and MSD for the Co-Marketing in France of Adrovance(TM) for the Treatment of Postmenopausal Osteoporosis.

PARIS -- Ipsen (ISIN:FR0010259150) (Paris:IPN) and MSD today announced the signing of a co-marketing agreement under which MSD will grant Ipsen the marketing rights in France for Adrovance(TM), a fixed combination of alendronate sodium and cholecalciferol (vitamin D3), indicated for the treatment of postmenopausal osteoporosis in patients at risk of vitamin D deficiency.

Adrovance(TM) reduces the risk of vertebral and hip fractures. MSD currently markets this product under the brand name Fosavance([R]).

Under the terms of the agreement, Ipsen will source the product from MSD, market and sell it under the brand name Adrovance(TM) in France.

Christophe Jean, Executive Vice President, Chief Operations Officer of Ipsen said: "The addition of Adrovance(TM), a new product for the treatment of osteoporosis, to Ipsen's portfolio of products represents another step forward in the execution of our strategy to optimize our primary care activity in France. We will thus be able to further increase the productivity of our sales force". Christophe Jean added: "We are pleased to collaborate with a world leader like MSD. Our common commitment, alongside physicians treating this disease, will allow us, through this partnership, to meet a real public health concern"

Michel Vounatsos, Vice President MSD Europe and Managing Director MSD France said: "Major health issue recognized by our Health Authorities, osteoporosis is one of the key targets of the Public Health legislation. Working with authorities, physicians, pharmacists and patients, MSD France reinforces its commitment to tackle this serious disease with very severe morbimortality consequences. In this context, we are very proud to announce our partnership with Ipsen, a very dynamic and professional French based company".

About osteoporosis

Osteoporosis is a diffuse disease of the skeleton, whose main characteristic is low bone mass and deterioration of bone tissue. Resulting bone fragility increases susceptibility to fractures.

Osteoporosis is a severe pathology because of its subsequent fractures, which may induce pain, impotence, loss of autonomy and overmortality (fractured neck of femur). Besides, the frequency of this pathology is high and proportional to age, and is thus growing as the French population is ageing. The already noticeable impact of osteoporosis on the healthcare system is therefore increasing. Moreover, direct medical costs related to osteoporosis were assessed at 800 million euros in 1999.

Osteoporosis is recognised as a Public Health concern: one of the 100 objectives set by the law voted on August 9, 2004 is "the 10% reduction of the incidence of fractures of the upper end of the femur by 2008."

About Adrovance(TM)

Adrovance(TM) is a fixed combination of alendronate sodium (biphosphonate) and cholecalciferol (vitamin D3 - 2800 UI) as a weekly treatment regimen.

Alendronate sodium inhibits osteoclats, cells which are responsible for bone resorption.

Vitamin D's main function is to increase intestinal absorption of both calcium and phosphate as well as to regulate serum calcium, renal calcium and phosphate excretion, bone formation and bone resorption.

This medicine is currently in the final stage of registration in the European Union and in France in the following indication: treatment of postmenopausal osteoporosis in women at risk of vitamin D deficiency; Adrovance(TM) reduces the risk of vertebral and hip fractures.

The combination of alendronate sodium / colecalciferol has been reimbursed in France since October, 2006 in the treatment of postmenopausal osteoporosis to reduce the risk of vertebral and hip fractures:

* in patients with a fracture due to bone fragility

* without fracture, in women suffering from a significant reduction of bone density (T score inferior to -3) or with a T score inferior or equal to -2.5 combined with other risk factors for fracture, especially an age over 60, a previous or current systemic corticotherapy with a posology superior or equal to 7.5 mg/day of prednisone equivalent, a body mass index inferior to 19 kg/mU, a history of fracture of the neck of femur in a first degree parent (mother), a precocious menopause (before 40)

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 centres (Paris, Boston, Barcelona, 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 [euro]169.0 million, i.e. 20.9% of consolidated sales, which amounted to [euro]807.1 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 EuronextTM (stock code: IPN, ISIN code: FR0010259150). Ipsen's internet website is www.ipsen.com.

About MSD (Merck Sharp & Dohme)

MSD is a global research-driven pharmaceutical company dedicated to putting patients first. MSD discovers, develops, manufactures and markets vaccines and medicines in more than 20 therapeutic areas (cardiology, rheumatology, pneumology, infectiology, oncology, ophthalmology, urology, dermatologyO). In 2005, MSD invested more than 3.8 billion $ for Research and Development. MSD has a 61 500 worldwide staff, including 7 800 dedicated to research. In France, MSD has a strong presence, especially in research and manufacturing, with 2 500 employees. MSD has established a partnering strategy and concluded important agreements with companies. MSD devotes extensive efforts to increase access to medicines through far-reaching programs that not only donate MSD medicines but help deliver them to the people who need them. For more information : visit our international site : www.merck.com and our MSD France site : www.msd-france.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.