Shire hits seven-year high on growth forecast

Company soared 9.3 per cent to close at a record 2,760 pence in London

The percentage increase in profit excluding some items this year will be in the mid to high teens because the company sees benefits from its cost cutting, Shire said. Photograph: JB Reed/Bloomberg News.

The percentage increase in profit excluding some items this year will be in the mid to high teens because the company sees benefits from its cost cutting, Shire said. Photograph: JB Reed/Bloomberg News.

 

Shire rose the most in seven years after increasing its full-year profit forecast as a reorganisation of the UK drugmaker led to lower costs. Shire soared 9.3 per cent to close at a record 2,760 pence in London, the biggest intraday advance since October 2006, giving the company a market value of £15.3 billion.

The percentage increase in profit excluding some items this year will be in the mid to high teens because the company sees benefits from its cost cutting, Shire said. Previously the company forecast “double-digit” growth. Since taking over in May, chief executive Flemming Ornskov has attempted to unite the separate drug units and trim overlap.

“The clear message is unappreciated operating leverage,” Peter Welford, an analyst at Jefferies International , said in a report to clients. – (Bloomberg)