Shire’s Vyvanse could bring in new revenue
pharmafile | February 14, 2014 | News story | Medical Communications, Research and Development, Sales and Marketing | ADHD, Shire, Vyvanse, binge eating, generics
Shire is hoping its ageing ADHD drug Vyvanse could find a new and potentially lucrative market in patients with eating disorders.
This week the firm announced a 20% jump in annual pre-tax profits to $1.42 billion, a figure driven by a 19% surge in revenue from Vyvanse (lisdexamfetamine).
But the drug’s patent is looming and the Irish-based firm has been anxious to find new licences to help shore up the revenue it will lose to generic competition.
So far it has not gone well: just last week Vyvanse failed to help patients with depression, and so all hopes will now be riding on new trials for its use in patients with a chronic eating disorder.
Shire says that there are 3 million people in the US alone who suffer from bouts of binge eating (around 1% of the population) — and recent trials of Vyvanse have suggested that the drug can cause a dramatic drop in the frequency of such episodes.
The firm said it was ‘on track’ to file an application for approval with the FDA in the third quarter of this year.
Should it gain approval, this could be a lucrative market for the firm as binge-eating disorder was officially recognised as a condition by the American Psychiatric Association just last year.
The ethics of such a drug may prove controversial however as some believe that this is simply medicalising a disorder that could be better treated with non-drug interventions, such as cognitive behavioural therapy, diet and exercise.
Flemming Ornskov, Shire’s chief executive, was careful to skirt around the moral issues, saying: “There’s a bit of a stigma attached to these people. We’re not talking about people who are overweight or who want a bit of chocolate. We’re talking about psychologically ill people — they’re emptying the refrigerator, more or less.”
Financial results
Shire’s financial results, released yesterday, shows that its revenue rose by 9% to $4.93 billion. The company has been through a rapid series of deals over the past 12 months after selling its poorly performing Dermagraft skin treatment business last month.
Shire also recently bought a rare diseases specialist, ViroPharma, for $4.2 billion.
But the firm has also announced a series of job cuts, which has included hundreds of staff being axed in the UK – a common occurrence across the industry as it looks to help shore up costs as patent expiries hit.
Analysts at Jefferies said Shire’s figures had beaten City expectations, adding: “We still believe significant news flow could boost belief in Shire’s longer-term organic growth prospects.”
Ben Adams
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