Shire 1st-qrt 2014 sales and earnings rocket; lifitegrast disappoints

Ireland-headquartered drugmaker Shire (LSE: SHP) posted a strong set of financials this afternoon, showing that total revenues increased 18% to $1.35 billion and product sales grew 19% to $1.31 billion in the first quarter of 2014. Shire’s shares rose 2% to £34.45 by early afternoon trading.

The company, which is the subject of takeover speculation (including from Allergan), reported earnings per American Depositary Share (ADS) of $2.36. Analysts expected Shire to post revenue of $1.38 billion and non-GAAP earnings per ADS of $2.22, according to a Reuters-compiled poll of 19 brokers. First-quarter net income leapt to $230.4 million from $64.8 million in the prior year quarter.

Outlook and guidance

Reflecting Shire’s strong start to the year, the company is increasing its guidance for non-generally accepted accounting principles( GAAP) earnings per ADS to mid-to-high 20% growth for the full year 2014, (previous guidance: growth at a similar level to 2013) (2013: up 23%). This guidance reflects the contribution from the ViroPharma acquisition for the 11 months post closing.