23rd Oct 2015 11:16
LONDON (Alliance News) - Irish pharmaceuticals group Shire PLC Friday reiterated its earnings guidance for 2015, as it reported a fall in pretax profit for its third quarter due to costs related to its acquisition of NPS Pharmaceuticals and its proposed offer for Baxalta Inc, and investments in its pipeline.
Additionally, Shire reiterated its commitment to its offer for Baxalta, saying it continues to believe the deal would help deliver its targeted USD20 billion in sales by 2020. In August, Baxalta rejected an unsolicited USD30 billion takeover bid from Shire, saying it had determined the offer was not in the best interest of Baxalta or its shareholders.
For the third quarter to end-September the company reported a pretax profit of USD455.5 million, down from USD575.6 million a year before, as a result of integration and acquisition costs of USD89.9 million and higher operating expenses, which offset a rise in revenue to USD1.66 billion from USD1.60 billion.
Research and development costs were up 11% in the quarter, as the company continued to invest in its pipeline of products, and it incorporated cots related to NPS that were not included in the previous year.
The company reiterated its guidance for full-year non generally accepted accounting principles diluted earnings per American depositary share growth in the mid-to-high single digit range.
The company said that its product sales were driven by a strong performance from attention deficit hyperactivity disorder drug Vyvanse, Shire's biggest seller, and from its hereditary angiodema portfolio.
Shire said its product sales growth in the quarter had been held back by around 4% due to the strength of the US dollar.
"As we progress our ambition to be a rare diseases leader, we continue to believe the proposed acquisition of Baxalta represents a highly strategic combination, delivering an expected USD20 billion in sales by 2020 and a world-leading rare diseases portfolio. Based on the strength of our core business, we are reiterating our recently upgraded full year Non GAAP diluted EPS guidance of mid-to-high single digit growth," said Chief Executive Officer Flemming Ornskov in a statement.
Shares in Shire were up 2.6% at 4,562.00 pence Friday afternoon.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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