Shire sales rocket with 25% growth
pharmafile | July 29, 2011 | News story | Sales and Marketing | ADHD, Fabry disease, Gaucher's disease, Shire
Specialist pharma company Shire has posted exceptionally strong results for the second quarter, increasing its product sales by 30% and raising total revenues by 25 per cent.
The performance benefited from a particularly robust showing from ADHD treatment Adderall XR, which increased revenues by 83% to $147 million, largely due to much lower sales rebates compared to the same period last year.
Nevertheless, sales excluding Adderall XR increased by $163 million (up 24%) compared to Q2 last year, particularly driven by Vyvanse (up 26% to $186 million), Lialda /Mezavant (up 43% to $99 million), Replagal (up 46% to $120 million) and Vpriv (up 121% to $63 million).
Chief executive Angus Russell said: “It’s been another strong quarter with Shire continuing to perform very well. Total revenues were up 25% and for the first time exceeded $1billion for the quarter, and we have reported a 29% increase in Non GAAP diluted earnings per ADS.”
The company’s rare disease treatments are performing well around the world, and the FDA Advisory Committee recommended approval and self administration of Firazyr for acute attacks of hereditary angioedema.
The company is now preparing for a US launch, in anticipation of an FDA approval in August. The European Medicines Agency has approved the purification of Replaga for Fabry disease at the company’s new facility in Massachusetts, giving it increased manufacturing flexibility.
Sales of ADHD products increased significantly in the US market, driven by increasing market share and further strong market growth. GI treatment Lialda added to its growth with a recent US approval for maintenance of remission in patients with ulcerative colitis
The company has also just completed the acquisition of Advanced BioHealing bringing Dermagraft, a US marketed product, and a foothold in the field of regenerative medicine.
Shire’s performance beat market expectations, but analysts doubt whether the company can maintain the rapid growth.
Analysts Jeffries says it sees “limited near-term pipeline opportunities” to add to revenues. It also cautions that Genzyme is expected to claw back market share in Fabry disease and Gaucher’s disease, where Shire has capitalised on its rivals manufacturing problems.
Another risk is that companies in these very high cost enzyme drug markets will face greater than expected pricing pressure. Finally, Jeffries also anticipates US generic competition for Asacol/Pentasa and Adderall XR, but doesn’t expect rival products to become available until the final quarter of 2013.
Andrew McConaghie
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