Shire beats earnings forecasts, boosted by Baxalta acquisition

2 May 2017

Ireland-headquartered rare diseases specialist Shire (LSE: SHP) reported a 110% leap in first-quarter 2017 total revenues to $3.57 billion, boosted by its $32 billion acquisition last year of Baxalta, and at the top end of analysts’ forecasts. Sales excluding legacy Baxalta were up 11% to $1.8 billion.

Shire generated non-GAAP (generally-accepted accounting principles) earnings per American Depositary Receipt (ADS) of $3.63, up 14%, reflecting strong business fundamentals and operational discipline, and beating analysts’ forecasts of $3.27. Diluted earnings per ADS were $1.23, a decline of 42%. Non-GAAP net income was $1.10 billion, a year-on-year rise of 74%. Net profit declined 11% in the three months to $375 million from $419 million a year earlier,

In mid-afternoon trading, after the results, Shire shares gained 3% to 4,363 pence.

This article is accessible to registered users, to continue reading please register for free. A free trial will give you access to exclusive features, interviews, round-ups and commentary from the sharpest minds in the pharmaceutical and biotechnology space for a week. If you are already a registered user please login. If your trial has come to an end, you can subscribe here.

Try before you buy

Free

7 day trial access

Take a Free Trial

All the news that moves the needle in pharma and biotech
Exclusive features, podcasts, interviews, data analyses and commentary from our global network of life sciences reporters.
Receive The Pharma Letter daily news bulletin, free forever.

Become a subscriber

£820

Or £77 per month

Subscribe Now

Unfettered access to industry-leading news, commentary and analysis in pharma and biotech.
Updates from clinical trials, conferences, M&A, licensing, financing, regulation, patents & legal, executive appointments, commercial strategy and financial results.
Daily roundup of key events in pharma and biotech.
Monthly in-depth briefings on Boardroom appointments and M&A news.
Choose from a cost-effective annual package or a flexible monthly subscription

The Pharma Letter is an extremely useful and valuable Life Sciences service that brings together a daily update on performance people and products. It’s part of the key information for keeping me informed

Chairman, Sanofi Aventis UK