Shire beats analysts’ forecasts with first-quarter earnings

Shire reported first-quarter earnings that beat analysts' estimates as it raised more revenue from drugs for attention deficit hyperactivity disorder and gastrointestinal diseases.

Earnings excluding some items climbed 16 per cent to $683 million (€611m), the Dublin-based company said in a statement on Thursday. That beat the average analyst estimate of $604 million.

Sales of Vyvanse, for ADHD and binge-eating disorder, rose 19 per cent to $417 million in the quarter, while Lialda, for a stomach disorder called ulcerative colitis, gained 15 per cent. Sales of Cinryze, for an immune system disorder, jumped 73 per cent.

Total revenue rose 11 per cent to $1.49 billion.

The drugmaker expanded its portfolio of rare-disease treatments in February with the purchase of NPS Pharmaceuticals. Shire is seeking to boost growth after a proposed $52 billion sale to AbbVie collapsed last year and has said it will continue buying companies to become a leader in the biotech industry.

Shire's $5.2 billion purchase of NPS has already started to pay off with the drugmaker winning US approval in January for Natpara, a medicine to control low blood calcium levels related to hypoparathyroidism. Growth will also come from Shire's best-selling ADHD drug Vyvanse, which was approved in the US on January 30th to treat binge-eating disorder. The additional use may add as much as $300 million to annual sales of Vyvanse, chief executive Flemming Ornskov has said.

While Mr Ornskov and most other top executives have offices in Lexington, Massachusetts, Shire is registered in Jersey, in the Channel Islands, and based for tax purposes in the Republic.

Bloomberg