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Interim Results

Shire delivers strong Q2 performance

03 August 2017 13:26

Shire has reported a strong performance in the second quarter of 2017, with product sales growth of 7% on a combined pro forma basis; generating $1.2bn operating cash flow.

Operating income from continuing operations came in at $399m, while non-GAAP operating income was $1,492m.

The Company said it over-delivered Year 1 Baxalta integration cost synergies, recognizing $400m vs its $300m target.

Shire added that it is exploring a strategic review of its Neuroscience franchise, including a potential independent public listing.

In addition, the Company reported significant pipeline progress with SHP643 (lanadelumab); Phase 3 topline data demonstrating potential to change treatment paradigm for patients with HAE; U.S. approval of MYDAYIS for patients with ADHD, with a September launch planned.

Flemming Ornskov, M.D., M.P.H., Shire Chief Executive Officer, commented:

"During the second quarter, we delivered strong top-line growth of 7% on a pro forma basis, generating product sales of $3.6 billion. Our Immunology franchise grew by 18%, and we saw significant contributions across our broad and diverse portfolio. Shire remains ahead of schedule to deliver at least $700 million in cost synergies from the Baxalta integration by Year 3. The Q2 performance resulted in strong operating cash flow of $1.2 billion and enabled us to reduce Non GAAP net debt by $880 million in the quarter.

"We also continue to drive the late-stage clinical pipeline. In Q2 we announced positive topline data from our Phase 3 pivotal trial of SHP643 in HAE, and anticipate submission of the BLA in late 2017 or early 2018. MYDAYIS, a once-daily treatment for patients with ADHD, received US FDA approval and will be launched in September.

"We are at an exciting inflection point, with both our rare disease and neuroscience businesses performing strongly and each having significant growth potential over the coming years. The strength and scale of our business provides us with the opportunity to further optimize our franchise portfolio - one of our key priorities communicated earlier this year. By year end, we expect to complete a formal evaluation of the full range of strategic options for the neuroscience franchise, including the potential for its independent public listing.

"As we enter the second half of 2017, we are focused on generating strong organic growth while continuing to deliver on our key priorities - launching more than 80 products globally by leveraging our expanded commercial platform, progressing our late-stage pipeline, integrating Baxalta, and paying down debt. We have updated our 2017 full year guidance and remain very confident about Shire's long-term prospects." At 1:26pm: (LON:SHP) Shire PLC share price was +166p at 4366p

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