2nd Aug 2016 11:19
LONDON (Alliance News) - Irish pharmaceuticals company Shire PLC Tuesday upgraded its full year guidance following its acquisition of Baxalta as it reported a jump in revenue for its first half, boosted by the deal.
For the first half of 2016 the company reported a pretax profit of USD508.3 million, down from USD591.2 million the year before, as integration and acquisition costs offset a rise in revenue to USD4.14 billion from USD3.05 billion.
Within this product sales rose to USD3.95 billion from USD2.90 billion.
The company said revenue growth was bolstered by a 19% rise in sales of its Shire legacy products in the second quarter, as well as a 12% rise in legacy Baxalta product sales. Baxalta legacy product sales contributed USD559 million in the second quarter.
Shire set out its new guidance following the acquisition, as well as a strong performance for its first half, now expecting total product sales on a non-generally accepted accounting principles basis of USD10 billion to USD11 billion, and diluted earnings per American depositary share of between USD12.70 to USD13.10.
At the time of its first quarter results in April, Shire had guided for full year product sales to to increase 11% to 14% on a reported basis for 2016, and between 13% and 17% on a non-generally accepted accounting principles, constant currency basis, as part of its longer term efforts to reach a targeted USD20 billion in product sales by 2020.
It proposed an interim dividend of USD4.63 cents, up from USD4.21 cents the previous year.
"Baxalta integration activities continue to progress very well and, with our new operating structure in place, we are raising our operating cost synergy expectations by 40% to at least USD700 million in year three post close. This would not have been possible without the commitment of all our employees, who have worked tirelessly in recent months to help drive efficiencies across the business, so that we can continue to deliver best-in-class therapies to patients around the world," said Chief Executive Officer Flemming Ornskov in a statement.
"We remain resolutely focused on achieving our goals, and I am very confident that Shire will continue to deliver strong growth as we integrate Baxalta and advance our combined portfolio of products," Ornskov added.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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