24th Oct 2013 11:51
LONDON (Alliance News) - Shire PLC shares jumped 7% Thursday, making it the biggest gainer on the FTSE 100, after it increased its full-year earnings guidance to deliver mid-to-high-teens non-GAAP earnings growth. Shire also posted increased revenues and operating income in its third quarter.
Shire shares were quoted at 2,700.00 pence at midday, up 175.00p, having touched a new record high of 2,706.00 pence after its announcement.
The biopharmaceutical company posted third-quarter revenues, on a non-GAAP basis, of USD1.24 billion, up from USD1.10 billion in the previous year.
GAAP refers to generally accepted accounting principles. Non-GAAP refers to alternative earnings measures of a company's performance.
Non-GAAP operating income rose to USD422 million from USD325 million in the previous year. GAAP operating income was up to USD340.8 million from USD273.4 million.
Products sales grew 13% to USD1.2 billion in the quarter as eight of Shire's products delivered double-digit growth, with ADHD treatment Vyvanse up 21%, Ulcerative Colitis Medication Liada/Mezavent up 36%, bolstered by growth in the US market, and hereditary angiodema treatment Firazyr up 107%.
Total product sales growth was moderated by declines of 29% in diabetic foot-ulcer treatment Dermagraft, 20% in narcolepsy and ADHD treatment Adderall, and 11% in Fabry disease drug Replagal. Replagal product sales were impacted by the return of competition to the market, Shire said.
Previous guidance for the full year 2013 non-GAAP earnings was for double-digit growth, which Shire increased Thursday to mid-to-high teens. The company said it anticipates similar levels of product sales in the fourth quarter as it saw in the third quarter, and expects full-year products sales growth in the mid-to-high single digits.
Shire said it anticipates royalties and other revenues to be 35% to 40% lower than in 2012, and its non-GAAP gross margin for the full year to be at a similar level to 2012.
Non-GAAP research and development expenses are expected to be 5% to 7% higher in 2013 than in 2012. Selling, general and administrative expenses are now expected to be 5% to 7% lower than in 2012.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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