French drug developer Ipsen (IPN.FR) Wednesday said its Swiss partner Roche AG (ROG.VX) has dropped out of development of diabetes drug Taspoglutide after patients developed undesirable side-effects, as the French company posted 2010 revenue growth of 6.5% on year.

Taspoglutide was considered Ipsen's key growth driver, with potential revenue of over EUR1 billion a year, which would have generated at least EUR150 million in royalties for Ipsen. It is now studying new partnership possibilities for the drug and doesn't plan to develop it alone given the necessary investments, the company said in a statement.

Ipsen posted EUR1.1 billion in revenue in 2010, supported by growth in its specialty drugs business. Growth was stripped 5% of positive foreign exchange effects.

The company could have to book depreciations of EUR65 million to EUR85 million in 2010 due to uncertainties weighing on its future partnerships and future development, it said.

Ipsen's new chief executive, Marc de Garidel, who has headed the company since the end of November, will present his strategy for the company during the second quarter--a little later than initially scheduled.

Full-year earnings are scheduled to be released on March 2.

-By Ambroise Ecorcheville, Dow Jones Newswires; 33 (0)1 40 17 17 71; ambroise.ecorcheville@dowjones.com
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