Shire reports 7% product sales growth, continues Baxalta pursuit
pharmafile | October 23, 2015 | News story | Sales and Marketing | Baxalta, Shire
Shire has exceeded market expectations as it reported an 11% rise in Q3 earnings on Friday, driven by product sales, and reiterated its desire to complete a deal for Baxalta.
The stronger-than-anticipated earnings performance and a 4% increase in revenue to $1.66 billion was aided by a favourable tax rate and good sales for its hyperactivity drug Vyvanse, which rose 20% to $427 million.
Cinryze and Firazyr for hereditary angioedema also performed well, as did blood calcium-booster Natpara, while short bowel syndrome drug Gattex also sold well following its approval in the US.
Shire CEO Flemming Ornskov reacted to the results, saying: “In the third quarter, Shire maintained momentum while advancing the pipeline and investing for the future. Vyvanse again performed strongly in the adult market and we continued to demonstrate leadership in rare diseases, with the growth of our HAE assets, Cinryze and Firazyr, and the strong performance of the recently launched NPS products Natpara and Gattex/Revestive. These recent launches and our ongoing success enable us to invest in future growth drivers, including several programs that are preparing to enter Phase III in the months ahead.
Shire also said the $300 million August acquisition of Foresight Biotherapeutics demonstrates its commitment to building a leadership position in ophthalmology, with the potential for SHP640 (formerly FST-100) to become the first agent to treat both viral and bacterial conjunctivitis.
Shire first went public with a $30bn bid for the Baxter spin-off in August, but failed to convince the company’s board as to the benefit of the deal, and its hopes have since then been hit by a 24% decline in Shire’s share price. Today’s results saw an immediate 3.4% uptick, however.
Of the Baxalta deal, Ornskov says: “As we progress our ambition to be a rare diseases leader, we continue to believe the proposed acquisition of Baxalta represents a highly strategic combination, delivering an expected $20 billion in sales by 2020 and a world-leading rare diseases portfolio. Based on the strength of our core business, we are reiterating our recently upgraded full year Non GAAP diluted EPS guidance of mid-to-high single digit growth.”
Despite the positive results for Q3, Shire received a setback last week as the US FDA issued a complete response letter requesting an additional clinical study to support the Irish-based company’s drug application for lifitegrast as a treatment for the signs and symptoms of dry eye disease in adults.
Shire confirmed an additional Phase 3 study has recently been completed, with topline results expected before the end of 2015, and that if data is positive, it would support a resubmission to the Authority in Q1 2016.
The company reiterated its expectations for diluted per-share earnings to rise to mid-to-high single or low double-digits for the entirety of 2015.
Joel Levy
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