30th Apr 2015 12:00
LONDON (Alliance News) - Shire PLC Thursday reiterated its guidance for 2015 as it posted higher earnings and an 11% rise in revenue for its first quarter to end-March, and said interim Chief Financial Officer Jeff Poulton would take the role on a permanent basis.
The pharmaceutical company continues to expect non generally accepted accounting principles diluted earnings per American depositary share growth in the mid-single digits for 2015. At actual exchange rates it continues to expect low-to-mid single digit product sales growth, due to the strengthening of the US dollar, although at constant currency it expects product sales growth in the low double digits.
Royalties and other revenues are expected to increase by 30 to 40% in 2015, as a result of including NPS's royalty streams for the first time.
It expects to see a lower rate of product sales growth throughout the remainder of 2015 than it saw in the first quarter due to stronger comparatives.
Its non GAAP diluted earnings per ADS rose 20% to USD2.84 in the first quarter from USD2.36 a year before, as revenue rose and its earnings before interest, tax, depreciation and amortisation margin, excluding royalties and other revenue, improved by one percentage point to 46%.
Revenue rose to USD1.49 billion in the first quarter, from USD1.35 billion a year before, despite a significant reduction in sales of its attention deficit hyperactivity disorder treatment Intuniv after it lost exclusivity last December. Revenue was bolstered by growth in Intuniv royalties and secondary hyperparathyroidism treatment Sensipar, which it acquired with NPS Pharmaceuticals Inc in January.
The acquisition of NPS has been completed, and its integration is progressing according to plan, Shire said. The company also announced its acquisition of Meritage Pharma Inc for USD75 million in February, and with it acquired the rights to its phase III ready compound for the treatment of esophagitis SHP621.
The company expects its operating costs to be higher throughout the remainder of 2015 as a result of the inclusion of NPS' operating costs, alongside investment in its pipeline and increased spending ahead of the launch of its treatment for dry eye disease lifitegrast.
Although the company did not reiterate its USD10 billion in annual sales target by 2020, in a call with journalists Chief Executive Flemming Ornskov said that Shire was "very confident" in achieving that sales target, and is "totally committed" to it.
During the quarter, Shire continued to make progress with its drugs pipeline, including getting a priority review designation for lifitegrast, and agreeing a regulatory parth for its adult ADHD treatment SHP465. In April its SHP625 treatment for cholestatic liver disease failed to meet its primary or secondary endpoints during a phase II trial. However, the company said it plans to study the data to better understand the results it has seen.
"Our continued financial performance driven by the strength of our commercial operations, focus on efficiency, and breadth of our innovative pipeline are indicators of our bright future," said Ornskov in a statement.
Shares in Shire are trading up 2.8% at 5,440.00 pence Thursday afternoon.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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