Shire earnings beat estimates and remains 'extremely optimistic' for 2017
Shire has reported fourth quarter sales and earnings that beat City estimates, with the drugmaker confident of generating strong top- and bottom-line growth in 2017.
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Revenues for the quarter came in £3.81bn, versus the consensus $3.77bn, while earnings per share of $3.37 beat the forecast $3.24.
On calendar 2016 revenues up 78% to $11.4bn, non-GAAP net income surged 47% to $3.4bn, with diluted earnings per American depository share shrinking 11% to $13.1 though this was at the top end of financial guidance.
“2016 was a transformational year for Shire as we became the world leader in rare diseases," said chief executive Flemming Ornskov, in a period when the drug pipeline was bolstered and the acquisitions of Dyax and Baxalta were integrated ahead of schedule.
The August US launch of Xiidra for dry eyes saw 19% market share captured within four months, which Ornskov said marks "an outstanding entry into ophthalmics and we aim to further build a leadership position in this therapeutic area".
Looking to 2017 with multiple product launches planned, he said Shire expected to generate strong top- and bottom-line growth.
"Our pipeline has never been stronger with multiple programs in Phase 3 or registration. We remain extremely optimistic about Shire’s long-term growth prospects.”
For 2017, total product sales were guided to $14.5-14.8bn, with diluted earnings per ADS of $6.95-7.55 or on a non-GAAP basis $14.6-15.20.