SHIRE PLC: Shire Delivers Strong 2012 Results

Shire Delivers Strong 2012 Results and Reiterates Confidence in 2013 
February 14, 2013 - Shire (LSE: SHP, NASDAQ: SHPG)announces results for the
year to December 31, 2012. 
Financial Highlights                                 Full Year 2012(1)  
                                                                 
Product sales                                       $4,407 million    +12%
Product sales excluding ADDERALL XR                 $3,978 million    +16%
Total revenues                                      $4,681 million    +10% 
                                                                 
Non GAAP operating income                           $1,474 million     +9%
US GAAP operating income                              $949 million    -14% 
                                                                  
Non GAAP diluted earnings per ADS                            $6.10    +14%
US GAAP diluted earnings per ADS                             $3.93    -13% 
                                                                 
Non GAAP cash generation                            $1,637 million    +18%
Non GAAP free cash flow                             $1,256 million    +43%
US GAAP net cash provided by operating activities   $1,383 million    +29% 
(1)  Percentages compare to the full financial year 2011. 
The Non GAAP financial measures included within this release are explained on
page 28, and are reconciled to the most directly comparable financial measures
prepared in accordance with US GAAP on pages 23 - 27. 
Angus Russell, Chief Executive Officer, commented: 
"It's been another strong year for Shire with 12% growth in product sales and
14% growth in Non GAAP earnings which have driven particularly strong cash
generation. While delivering strong financial results, we continue to invest in
our emerging late stage R&D pipeline. 
Our ADHD portfolio is performing very well in a growing global market and we
see further growth going forward. The positive opinion received from the
European regulators for ELVANSE is a significant milestone and we're now
preparing for country launches in some of the largest markets in Europe. All
our rare disease treatments continue to grow and we saw particularly strong
performance from FIRAZYR in its first full year in the US market. We advanced
our plans for developing our Regenerative Medicine business with the
acquisition of VASCUGEL and the approval of DERMAGRAFT in Canada. 
Our late stage R&D pipeline now holds the prospect of future growth from LDX
(the active ingredient in VYVANSE) in major depressive disorder, binge eating
disorder and negative symptoms of schizophrenia. Our intrathecal programs are
also progressing well as we plan the next clinical trials for Hunter CNS and
Sanfilippo A and continue to enrol MLD patients into the ongoing Phase 1/2
trial. A phase 2b study of SPD602, our iron chelating product, is underway and
headline results are expected later this year. 
We've completed a number of in-licensing deals and acquisitions in 2012,
bringing us new technology platforms in rare diseases, hematology and a range
of early stage and exciting differentiated treatments. 
We've put in place our leadership succession plan. Dr. Flemming Ørnskov joined
us at the beginning of January and is familiarising himself with the business
before he assumes the role of CEO at the end of April. His considerable
pharmaceutical and international experience will benefit Shire going forward.
Today we announce that Sylvie Gregoire, President of our HGT business, has
decided to leave Shire at the end of March, after five years. We're grateful
for her significant contributions to the growth of Shire through establishing
HGT as a leader in rare diseases. 
Shire is in great shape, with the current business performing well, a promising
pipeline of new growth opportunities, and the strategy in place to deliver an
exciting future. As we look forward to the year ahead, we expect our financial
results to show further growth in line with current consensus earnings
expectations for 2013(1)." 
See page 3 for assumptions 
FINANCIAL SUMMARY 
Full Year 2012 Unaudited Results 


                        Full Year 2012                  Full Year 2011         
                                                                               
                 US GAAP Adjustments Non GAAP    US GAAP Adjustments Non GAAP  
                                                                               
                      $M          $M       $M         $M          $M       $M  


                                                                           
Total revenues    4,681           -    4,681      4,263           -    4,263    
                                                                           
Operating                                                                      
income              949         525    1,474      1,109         248    1,357    


                                                                               
                                                                               


                                                                           
Diluted                                                                        
earnings per                                                                   
ADS                $3.93       $2.17    $6.10      $4.53       $0.81    $5.34   
                                                                            
  
Product sales in 2012 were up 12% to $4,407 million (2011: $3,950 million). On
a Constant Exchange Rate ("CER") basis, which is a Non GAAP measure, product
sales were up 13%. 
Product sales excluding ADDERALL XR® grew strongly and were up 16%, driven
particularly by growth from VYVANSE® (up 28% to $1,030 million), VPRIV® (up 
20%
to $307 million), INTUNIV® (up 29% to $288 million) and FIRAZYR® (up 252% to
$116 million). 
ADDERALL XR product sales were down 19% to $429 million primarily due to lower
prescription volumes following the approval of a new generic version of
ADDERALL XR in Q2 2012. Reported product sales were also impacted by the
accounting for the settlement of the Impax Laboratories, Inc. ("Impax")
litigation (see page 6 for further details). 
Total revenues increased by 10% (up 12% on a CER basis) as the growth in
product sales was partially offset by lower royalties and other revenues (down
12%), primarily ADDERALL XR royalties following the launch of a new generic
competitor in Q2 2012. The decline in ADDERALL XR royalties was partially
offset by the recognition of one-time royalty income of $38 million following
resolution of a disagreement with GlaxoSmithKline ("GSK") and ViiV Healthcare
("ViiV") relating to royalty payments for 3TC® and ZEFFIX®. 
On a Non GAAP basis: 
Operating income was up 9% to $1,474 million (2011: $1,357 million), as we
invested in our promising pipeline leading to total operating expenses
increasing at a slightly higher rate than total revenues. Research and
Development expenditure was up 16% particularly due to investment in new uses
for lisdexamfetamine dimesylate(1) ("LDX") and SPD602 for Iron Overload. The
effect of higher Research and Development expenditure was moderated by a lower
rate of increase in Selling, General and Administrative expenditure (up 7%). 
On a US GAAP basis: 
Operating income in 2012 was down 14% to $949 million (2011: $1,109 million)
primarily resulting from charges to impair intangible assets for RESOLOR® in
the EU ($198 million) in 2012. The impairments were due to lower actual and
projected performance for the product given the increasingly challenging
European reimbursement environment. Operating income in 2012 was also impacted
by a charge of $58 million in relation to the agreement in principle with the
US Government to resolve a previously disclosed civil investigation (see page 6
for further details). 
Non GAAP diluted earnings per American Depository Share ("ADS") increased 14%
to $6.10 (2011: $5.34), due to higher Non GAAP operating income and a lower
effective tax rate on Non GAAP income of 18% (2011: 22%). 
On a US GAAP basis diluted earnings per ADS decreased 13% to $3.93 (2011:
$4.53) primarily due to the lower US GAAP operating income, partially offset by
a lower US GAAP effective tax rate of 18% (2011: 21%). 
LDX, currently marketed as VYVANSE in the US and ELVANSE in certain territories
in the EU for the treatment of ADHD. 
Cash generation, a Non GAAP measure, grew strongly by 18% to $1,637 million
(2011: $1,391 million) as higher cash receipts from gross product sales and
improved cash collections for aged European receivables more than offset higher
operating expenses and sales deduction payments in the year. 
Free cash flow, also a Non GAAP measure, was up 43% to $1,256 million (2011:
$879 million) due to higher cash generation, lower cash tax payments and lower
capital expenditure. 
On a US GAAP basis, net cash provided by operating activities was up 29% to
$1,383 million (2011: $1,074 million). 
Reflecting our strong cash generation, net cash (also a Non GAAP measure) at
December 31, 2012 was $373 million (December 31, 2011: Non GAAP net debt of
$488 million) including the impact of share purchases totalling $106 million
under the share buy-back program. 
OUTLOOK 
We enter 2013 in a good position following our strong performance in 2012 and
the investments we have made in previous years. We anticipate that our highly
differentiated portfolio will deliver product sales growth in the low double
digits. 
We note the recent news of the approval of Barr's ANDA for ADDERALL XR. We
derive insignificant income from our authorised generic supply contract with
Barr (now owned by TEVA). We believe that branded ADDERALL XR can continue to
compete successfully in a generic market as it has done over the last four
years. 
Royalties and other revenues are expected to be 30-40% lower than 2012. This
reflects a full year's impact of the lower ADDERALL XR authorized generic
royalty rate receivable from Impax, along with generic competition and patent
expiry on other products, and the one-time $38 million of royalty income
recorded in Q4 2012 following the resolution of the disagreement with GSK. 
Our Non GAAP gross margin is expected to be at a similar level to 2012. 
We expect high single digit growth in combined Non GAAP R&D and SG&A costs,
with growth significantly weighted towards Non GAAP R&D as we continue to
invest in our promising pipeline and progress our late stage clinical trials. 
Our core effective tax rate on Non GAAP income is anticipated to remain in the
range of 18-20%. 
As we look forward to the year ahead, we expect our financial results to show
further growth in line with current consensus earnings expectations for 2013 
(1). 
Based on the most recent consensus estimates compiled by Consensus Forecast
Ltd, as of the date of this press release, of $6.72 Non GAAP diluted earnings
per ADS for the year ended 31 December 2013, available on Shire's website (
http://www.shire.com/shireplc/en/investors/forecasts). 
FINANCIAL SUMMARY 
Fourth Quarter 2012 Unaudited Results 
Financial Highlights                                  Q4 2012(1)      
                                                                 
Product sales                                     $1,098 million  +5%
Product sales excluding ADDERALL XR               $1,016 million +10%
Total revenues                                    $1,201 million  +5% 
                                                                 
Non GAAP operating income                           $368 million   0%
US GAAP operating income                             $79 million -74% 
                                                                 
Non GAAP diluted earnings per ADS                          $1.58  +4%
US GAAP diluted earnings per ADS                           $0.22 -83% 
                                                                 
Non GAAP cash generation                            $452 million  +1%
Non GAAP free cash flow                             $314 million -11%
US GAAP net cash provided by operating activities   $372 million  -9% 
(1) Percentages compare to equivalent 2011 period. 
Product sales in Q4 2012 were up 5% (up 5% on a CER basis) to $1,098 million
(Q4 2011: $1,049 million).  
Product sales excluding ADDERALL XR were up 10% due to strong growth
particularly from VYVANSE (up 18% to $257 million), INTUNIV (up 24% to $81
million) and FIRAZYR(up 132% to $35 million). The growth in product sales
excluding ADDERALL XR was moderated by DERMAGRAFT® (down 65% to $19 million)
due to the ongoing restructuring of the Regenerative Medicine ("RM") sales and
marketing organization. 
ADDERALL XR product sales were down 35% to $82 million primarily due to lower
prescription demand following the approval of a new generic version of ADDERALL
XR in Q2 2012, the accounting for the settlement of the Impax litigation (see
page 6 for further details) and higher sales deductions. 
Total revenues were up 5% due to both higher product sales and royalties.
Royalties in Q4 2012 benefited from one-time royalty income of $38 million for
3TC and ZEFFIXfollowing the resolution of the disagreement with GSK and ViiV. 
On a Non GAAP basis: 
Operating income remained broadly constant at $368 million (Q4 2011: $369
million), as the increase in total revenues was offset by higher Research and
Development expenditure (up 14%) as we continue to invest in a number of early
and late stage pipeline programs expected to drive future growth. The effect of
higher Research and Development expenditure was moderated by a lower rate of
increase in Selling, General and Administrative expenditure (up 5%). 
On a US GAAP basis: 
Operating income was down 74% to $79 million (Q4 2011: $304 million) primarily
due to charges to impair intangible assets relating to RESOLOR in the EU of
$171 million and higher legal and litigation costs in Q4 2012, including a
charge of $58 million in relation to the agreement in principle with the US
Government. 
Non GAAP diluted earnings per ADS increased 4% to $1.58 (Q4 2011: $1.51) as
broadly constant Non GAAP operating income benefited from a lower effective tax
rate on Non GAAP income of 15% (Q4 2011: 19%). 
On a US GAAP basis diluted earnings per ADS decreased 83% to $0.22 (Q4 2011:
$1.33), due to lower US GAAP operating income together with a higher US GAAP
effective tax rate of 35% (Q4 2011: 14%). 
Cash generation, a Non GAAP measure, increased by 1% to $452 million (Q4 2011:
$447 million). 
Free cash flow, also a Non GAAP measure, decreased by 11% to $314 million (Q4
2011: $351 million) primarily due to higher cash tax payments in the quarter. 
On a US GAAP basis, net cash provided by operating activities was down 9% to
$372 million (Q4 2011: $409 million). 
FOURTH QUARTER 2012 AND RECENT PRODUCT AND PIPELINE DEVELOPMENTS 
Products 
ELVANSE® (LDX) for the treatment of Attention Deficit Hyperactivity Disorder
("ADHD") in Europe 
On December 18, 2012 Shire announced a positive outcome from the European
Decentralized Procedure for ELVANSE (to be known as TYVENSE® in Ireland).
ELVANSE is indicated as part of a comprehensive treatment program for ADHD in
children aged 6 years of age and over when response to previous methylphenidate
treatment is considered clinically inadequate. 
Pipeline 
LDX for the treatment of Binge Eating Disorder ("BED") 
A Phase 3 clinical program to evaluate the efficacy and safety of LDX in adults
with BED was initiated in Q4 2012. 
LDX for the treatment of Negative Symptoms of Schizophrenia ("NSS") 
A Phase 3 clinical program to evaluate the efficacy and safety of LDX as
adjunctive treatment to antipsychotic medications on negative symptoms in
adults who have persistent predominant NSS was initiated in Q4 2012. 
FIRAZYR for the treatment for Angiotensin Converting Enzyme Inhibitor-Induced
Angioedema ("ACE-I AE") 
In December 2012, Shire submitted a supplemental Marketing Authorization
Application to the European Medicines Agency ("EMA") seeking approval for
FIRAZYR for the treatment of ACE-I AE in Europe. Depending upon the outcome of
discussions with the US Food and Drug Administration ("FDA") about appropriate
development pathways for FIRAZYR as a possible ACE-I AE treatment option, Phase
3 studies for the US market could begin in 2013.  
VPRIV for the treatment of Gaucher disease (Type 1) 
In December 2012, Shire filed with the EMA in Europe for the VPRIV label to be
updated with data regarding the impact of VPRIV on certain parameters of bone
disease in Type 1 Gaucher patients. 
HGT2310 for the treatment of Hunter Syndrome with Central Nervous System
("CNS") symptoms, idursulfase-IT 
HGT2310 is in development as an Enzyme Replacement Therapy ("ERT") delivered
intrathecally for Hunter Syndrome patients with CNS symptoms. Shire initiated a
Phase 1/2 clinical trial in Q1 2010 which has now completed. The top line
results of this trial indicate that HGT2310 appears to be well tolerated at all
three doses studied during the timeframe of the trial. Furthermore,
dose-dependent drug activity in vivo was evidenced by a decline in
glycosaminoglycan ("GAG") levels in cerebrospinal fluid following treatment, a
biomarker of metabolic activity. Full results from this trial will be presented
at the American College of Medical Genetics ("ACMG") meeting in March 2013.
Shire is currently planning a pivotal clinical trial which is expected to
initiate in the second half of 2013, subject to customary regulatory
interactions with the FDA and EMA. 
HGT1410 for Sanfilippo A Syndrome (Mucopolysaccharidosis IIIA) 
HGT1410 is in development as an ERT delivered intrathecally for the treatment
of Sanfilippo A Syndrome (Mucopolysaccharidosis IIIA). Shire initiated a Phase
1/2 clinical trial in August 2010 which has now completed. The top line results
of this trial indicate that HGT1410 appears to be well tolerated at all three
doses studied during the timeframe of the trial. Furthermore, dose-dependent
drug activity in vivo was evidenced by a decline in GAG levels in cerebrospinal
fluid following treatment. Full results from this trial will be presented at
the ACMG meeting in March 2013. Shire is currently planning the next clinical
trial for HGT1410, designed to measure a clinical response, which is expected
to initiate in the second half of 2013, subject to customary regulatory
interactions with the FDA and EMA. 
ABH001 for the treatment of Epidermolysis Bullosa ("EB") 
In February 2013, Shire enrolled the first patient in its Phase 3 clinical
program for EB. 
OTHER DEVELOPMENTS 
Legal Proceedings 
Shire reaches agreement in principle with the US Government 
On February 1, 2013 Shire announced that it had reached an agreement in
principle to resolve the previously disclosed civil investigation into Shire's
U.S. sales and marketing practices relating to ADDERALL XR, VYVANSE and
DAYTRANA®. The agreement also addresses sales and marketing practices relating
to LIALDA® and PENTASA® pursuant to a subsequent voluntary disclosure made by
Shire. Shire has recorded a $57.5 million charge in Q4 2012, comprised of the
agreement in principle amount, interest and costs. The agreement in principle
is subject to change until this matter is finally resolved. Discussions between
Shire and the US Government are ongoing to establish a final resolution to the
investigation. 
Settlement of litigation with Impax 
On February 7, 2013 Shire and Impax settled all litigation relating to Shire's
contract to supply Impax with authorized generic ADDERALL XR. 
Under the terms of the settlement Shire will make a one-time cash payment to
Impax of $48.0 million and Shire and Impax entered into an amended supply
agreement which will govern the supply of authorized generic ADDERALL XR from
Shire to Impax until the end of the supply term on September 30, 2014. The cash
payment has been recorded as a liability at December 31, 2012. As it represents
a payment to a customer, the cash payment has been recorded in the Income
Statement as a reduction in reported ADDERALL XR product sales ($42.0 million)
and royalties ($6.0 million) in 2012, in accordance with US GAAP. The reduction
to revenues for Q4 2012 was $8.0 million, with the balance having been recorded
in earlier periods. 
Collective dismissal and business closure at Turnhout 
On January 23, 2013 Shire announced that it had decided to proceed with a
collective dismissal and business closure at its site in Turnhout, Belgium.
This decision follows the conclusion of an information and consultation
process. 
Shire will continue to sell RESOLOR in Europe and the supply of RESOLOR for
patients in Europe who rely on the medicine will not be affected. 
Acquisition of Lotus Tissue Repair, Inc. 
On February 12, 2013 Shire completed the acquisition of Lotus Tissue Repair,
Inc. of Cambridge, MA, a privately held biotechnology company developing the
first and only protein replacement therapy currently being investigated for the
treatment of dystrophic epidermolysis bullosa ("DEB"). DEB is a devastating
orphan disease for which there is no currently approved treatment option other
than palliative care. Shire purchased the company for an upfront cash payment
and further contingent cash payments may be payable in future periods,
depending on the achievement of certain safety and development milestones. 
Leadership Team Changes 
We announce today that Sylvie Gregoire, President of our HGT business will
leave Shire at the end of March after five years with the Company. Sylvie has
contributed to the growth of Shire through leading the building of our rare
diseases business; we're grateful for her significant contributions and we wish
her well in the future. Flemming Ørnskov will assume interim leadership of 
this
business from the end of March. Mike Yasick, who for the last five years has
led Shire's largest business unit, Behavioral Health, will assume interim
leadership of the SP business from the end of March. 


    

On November 15, 2012 Shire announced that Dr. Jeff Jonas had been appointed as
President of Shire's RM business and has joined the Shire Leadership Team. Jeff
has been closely involved with the RM business since Shire acquired it as
Advanced BioHealing Inc. ("ABH") in June 2011. In addition to his role as head
of the SP R&D team, Jeff has been leading the RM R&D team and has been a member
of the RM leadership team. As previously announced, Kevin Rakin, who led ABH
since 2007 and during its integration into Shire, has stepped down from his
position as RM President and from the Shire Leadership Team to pursue new
career interests.

Share buy-back Program

Shire has a strong balance sheet and continued robust cash generation, and
considers efficient use of capital on behalf of shareholders an important
objective. Therefore in Q4 2012 Shire commenced a share buy-back program, for
the purpose of returning funds to shareholders, of up to $500 million, through
both direct purchases of ordinary shares and through the purchase of ordinary
shares underlying American Depositary Receipts. As of February 13, 2013 Shire
had made on-market repurchases totaling 4,776,274 ordinary shares at a cost of
$143 million (excluding transaction costs).

For the weighted average number of shares used for Non GAAP diluted earnings
per ADS, please refer to the Non GAAP reconciliation tables on pages 23 - 26.


DIVIDEND

In respect of the six months ended December 31, 2012 the Board has resolved to
pay an interim dividend of 14.60 US cents per ordinary share (2011: 12.59 US
cents per ordinary share).

Dividend payments will be made in Pounds Sterling to ordinary shareholders and
in US Dollars to holders of ADSs. A dividend of 9.39 pence per ordinary share
(2011: 7.96 pence) and 43.80 US cents per ADS (2011: 37.77 US cents) will be
paid on April 9, 2013 to shareholders on the register as at the close of
business on March 8, 2013.

Together with the first interim payment of 2.73 US cents per ordinary share
(2011: 2.48 US cents per ordinary share), this represents total dividends for
2012 of 17.33 US cents per ordinary share (2011: 15.07 US cents per ordinary
share), an increase of 15% in US Dollar terms.


ADDITIONAL INFORMATION

The following additional information is included in this press release:
                                             Page


                                             
Overview of Full Year 2012 Financial Results  9   
                                             
Financial Information                         14  
                                             
Non GAAP Reconciliation                       23  
                                             
Notes to Editors                              27  
                                             
Safe Harbor Statement                         28  
                                             
Explanation of Non GAAP Measures              28  
                                             
Trademarks                                    29  


                                                 

 
For further information please contact:
    Investor Relations                                                             


                                                                           
  - Eric Rojas                            erojas@shire.com      +1 781 482 0999 
                                                                            
                                                               +44 1256 894
  - Sarah Elton-Farr                      seltonfarr@shire.com              157 
                                                                           
Media                                                                           
                                                                           
  - Jessica Mann (Corporate)              jmann@shire.com      +44 1256 894 280 
                                                                           
  - Gwen Fisher (Specialty Pharma)        gfisher@shire.com     +1 484 595 9836 
                                                                           
  - Jessica Cotrone (Human Genetic                                             
  Therapies)                              jcotrone@shire.com    +1 781 482 9538 
                                                                           
  - Lindsey Hart (Regenerative Medicine)  lhart@shire.com       +1 615 250 3311 


                                                                               


Dial in details for the live conference call for investors 14:00 GMT / 09:00
EST on February 14, 2013:

UK dial in:                         0808 237 0030 or 0203 139 4830

US dial in:                        1 866 928 7517 or 1 718873 9077

International Access Numbers:               Click Here

Password/Conf ID:                            99054603#

Live Webcast:                     http://www.shire.com/shireplc/en/investors



OVERVIEW OF FULL YEAR 2012 FINANCIAL RESULTS

1.         Product sales

For the year to December 31, 2012 product sales increased by 12% to $4,406.7
million (2011: $3,950.2 million) and represented 94% of total revenues (2011:
93%).
                                     Year on year growth                       
                                                                               


                                               US Rx  US Exit Market Share 
Product sales          Sales $M     Sales    CER    (1)            (1)          


                                                                               
                                                                               


                                                                           
VYVANSE                1,029.8       +28%    +28%    +17%                   17% 
                                                                           
ELAPRASE®                497.6        +7%    +11%  n/a(2)                
n/a(2) 
                                                                           
REPLAGAL®                497.5        +5%    +10%  n/a(3)                
n/a(3) 
                                                                           
LIALDA/MEZAVANT®         399.9        +7%     +8%     +5%                   
22% 
                                                                           
VPRIV                    306.6       +20%    +23%  n/a(2)                n/a(2) 
                                                                           
INTUNIV                  287.8       +29%    +29%    +34%                    5% 
                                                                           
PENTASA                  265.8        +6%     +6%     -5%                   14% 
                                                                           
FOSRENOL®                172.0        +3%     +6%    -19%                    
4% 
                                                                           
DERMAGRAFT(4)            153.8       +46%    +46%  n/a(2)                n/a(2) 
                                                                           
FIRAZYR                  116.3      +252%   +258%  n/a(2)                n/a(2) 
                                                                           
OTHER                    250.6        -5%     -2%     n/a                   n/a 
                                                                           
Excluding ADDERALL                                                             
XR                     3,977.7       +16%    +18%                               
                                                                           
ADDERALL XR              429.0       -19%    -19%    -11%                    5% 
                                                                           
Total                  4,406.7       +12%    +13%                               
(1)            Data provided by IMS Health National Prescription Audit ("IMS
NPA"). Exit market share represents the average US market share in the month
ended December 31, 2012. 
(2)            IMS NPA Data not available. 
(3)            Not sold in the US in 2012. 
(4)            DERMAGRAFT was acquired by Shire on June 28, 2011 (sales growth
above reflects full year 2012 sales compared to post acquisition sales for 
2011). 
VYVANSE - ADHD 
VYVANSE product sales grew strongly (28%) in 2012 as a result of higher
prescription demand, due to growth in US ADHD market (+9%) and VYVANSE's share
of that market, and as a result of a price increase taken in 2012. These
positive factors, together with lower sales deductions in 2012, more than
offset the effect of higher retailer destocking in 2012 compared to 2011 and
some shipment slippage at the end of the fourth quarter. 
ELAPRASE - Hunter syndrome 
Reported ELAPRASE sales growth (7%) was driven by an increase in the number of
patients on therapy. On a CER basis, ELAPRASE sales grew by 11% as reported
sales were held back by unfavorable foreign exchange (amounting to
approximately $20 million) primarily due to weaker European currencies in 2012
compared to 2011. The increase in ELAPRASE sales between Q3 and Q4 of 2012 was
partly driven by the timing of certain large orders from markets which order
less frequently. 
REPLAGAL - Fabry disease 
Reported REPLAGAL sales growth (5%) was driven by an increase in the number of
patients on therapy. On a CER basis, REPLAGAL sales grew by 10%, as reported
sales were impacted by unfavorable foreign exchange (amounting to approximately
$26 million), primarily due to weaker European currencies in 2012 compared to
2011. The reduction in REPLAGAL sales between the third and fourth quarter of
2012 was partly driven by the timing of certain large orders from markets which
order less frequently. 
LIALDA/MEZAVANT - Ulcerative colitis 
The growth in product sales for LIALDA/MEZAVANT (7%) in 2012 was primarily
driven by higher market share in the US and a price increase taken since Q4
2011, the effects of which were partially offset by product destocking in 2012
compared to a small amount of product stocking in 2011 and higher sales
deductions in 2012. Growth in US net product sales was partially offset by the
impact of lower priced imports into certain European markets. 
VPRIV - Gaucher disease 
Reported VPRIV sales growth (20%) was driven by an increase in the number of
patients on therapy. On a CER basis, VPRIV sales increased by 23% as reported
sales were also held back by unfavorable foreign exchange (amounting to
approximately $8 million). 
INTUNIV - ADHD 
INTUNIV product sales were up 29% compared to 2011, primarily driven by strong
growth in US prescription demand (up 34% compared to 2011), together with price
increases taken during 2012. These positive factors were partially offset by
lower stocking in 2012 and higher sales deductions in 2012 compared to 2011. 
PENTASA - Ulcerative colitis 
PENTASA product sales were up 6% as the benefit of price increases was
partially offset by lower prescription demand, a small amount of destocking in
2012 and higher sales deductions as compared to 2011. 
FOSRENOL - Hyperphosphatemia 
Product sales of FOSRENOL in the US increased (3%) due to the effect of price
increases in 2012 and lower sales deductions compared to 2011, which more than
offset the decline in prescription demand. Product sales of FOSRENOL outside
the US decreased marginally primarily because of the impact of unfavorable
foreign exchange. 
DERMAGRAFT - Diabetic Foot Ulcers ("DFU") 
DERMAGRAFT product sales were up 46%(1) compared to sales reported by Shire
subsequent to acquisition in 2011. On a full year basis, sales for DERMAGRAFT
were down 21% reflecting the impact of an ongoing restructuring of the RM sales
and marketing organization and the implementation of a new commercial model,
all of which is expected to position DERMAGRAFT for future sales growth. 
Shire acquired DERMAGRAFT through its acquisition of ABH on June 28, 2011 and
reported revenues from DERMAGRAFT of $105.3m relating to the post acquisition
period in 2011. 
FIRAZYR - Hereditary Angioedema 
Reported FIRAZYR sales growth (252%) was driven largely by the first full year
of sales in the US market, following launch of FIRAZYR in the market in Q4 
2011. 
ADDERALL XR - ADHD 
ADDERALL XR product sales decreased (-19%) in 2012 as a result of lower US
prescription demand following the introduction of a new generic competitor and
the impact of the accounting for the legal settlement with Impax, which reduced
reported product sales by $42 million in 2012, in addition to the effect of
product destocking in 2012 compared to stocking in 2011 and, higher sales
deductions. These negative factors were partially offset by the benefit of a
price increase taken during 2012. 
2.         Royalties 
Product        Royalties to Shire $M Year on year growth  CER  
                                                          
3TC and ZEFFIX              91.6            +11%         +11%  
                                                          
ADDERALL XR                 70.3             -34%         -34% 
                                                          
FOSRENOL                    53.3            +15%         +15%  
                                                          
Other                       26.4             -44%         -42% 
                                                          
Total                      241.6             -15%         -15% 


                                                              

Royalties from 3TC and ZEFFIX include one-time royalty income of $38 million in
respect of prior periods due to resolution of the disagreement between Shire,
GSK and ViiV as to how the royalty rate for these products should be applied.
This one-time income more than offset the underlying decline in 3TC and Zeffix
royalties as a result of increased competition and the expiry of patents in
certain territories in 2012.

Royalties from ADDERALL XR in 2012 were significantly impacted by the lower
royalty rate payable on sales of authorized generic ADDERALL XR by Impax,
following the launch of a new generic version of ADDERALL XR in late Q2 2012.

FOSRENOL royalties increased primarily due to higher royalties received on
sales in Japan.

Other royalties decreased primarily due to increased generic competition.
 

3.         Financial details

Cost of product sales
                                                                               
                                 2012                     2011                 
                                          % of product             % of product
                                    $M           sales       $M           sales


                                                                           
Cost of product sales (US GAAP) 645.4              15%   588.1              15% 
                                                                           
Transfer of manufacturing from                                                 
Owings Mills                        -                    (11.3)                 
                                                                           
Unwind of inventory fair value                                                 
adjustment                          -                    (11.0)                 
                                                                           
Depreciation                    (31.5)                   (33.2)                 
                                                                           
Non GAAP Cost of product sales  613.9              14%   532.6              13% 
Non GAAP cost of product sales as a percentage of product sales increased
slightly in 2012 primarily due to slight dilution from DERMAGRAFT following the
acquisition of ABH in Q2 2011. 
US GAAP cost of product sales as a percentage of product sales remained
constant as the impact of lower Non GAAP gross margins in 2012 was offset by
the fair value adjustment relating to DERMAGRAFT inventories and costs incurred
on the transfer of manufacturing from Owings Mills in 2011 which were not
repeated in 2012. 


    Research and Development ("R&D")
                                                                            
                                                                               
                                    2012           % of     2011           % of
                                                product                 product
                                       $M         sales        $M         sales


                                                                           
R&D (US GAAP)                      965.5            22%    770.7            20% 
                                                                           
Impairment of intangible assets    (71.2)                  (16.0)               
                                                                           
Payment in respect of in-licensed  (23.0)                      -               
and acquired products                                                           
                                                                           
Depreciation                       (22.5)                  (25.2)               
                                                                           
Non GAAP R&D                       848.8            19%    729.5            18% 
Non GAAP R&D increased by $119.3 million, or 16%, due to our continuing
investment in a number of targeted R&D programs, particularly new uses for LDX
and recently acquired assets including SPD602 for iron overload (acquired with
FerroKin Biosciences Inc. ("FerroKin")). R&D costs also include the first full
year of RM's R&D expenditure. 
US GAAP R&D increased by $194.8 million, or 25%, a higher rate of increase than
on a Non GAAP basis as 2012 included higher in-process R&D ("IPR&D") impairment
charges relating to RESOLOR EU intangible assets and up-front payments in
respect of in-licensed and acquired products. 
Selling, General and Administrative ("SG&A") 


                                                                               
                             2012                        2011                  
                                       % of product                % of product
                                $M            sales         $M            sales


                                                                           
SG&A (US GAAP)            2,114.0               48%   1,751.4               44% 
                                                                           
Intangible asset           (194.1)                     (165.0)                 
amortization                                                                    
                                                                           
Impairment of intangible   (126.7)                          -                  
assets                                                                          
                                                                           
Legal and litigation       (102.6)                          -                  
costs(1)                                                                        
                                                                           
Depreciation                (59.8)                      (63.1)                  
                                                                           
Non GAAP SG&A             1,630.8               37%   1,523.3               39% 
                                                                            
In Q2 2012 Shire amended its Non GAAP policy to exclude costs related to the
settlement of litigation, government investigations and other disputes,
together with related external legal costs. Non GAAP SG&A in 2011 has not been
restated as the amounts incurred in that period were not significant. 
Non GAAP SG&A increased by $107.5 million, or 7%, as we continue to invest in
our business to support our growth objectives. Non GAAP SG&A also included the
first full year of RM's SG&A expenditure. Reported costs benefited (by 2
percentage points) from the stronger US Dollar in 2012. 
US GAAP SG&A increased by $362.6 million, or 21%, a higher rate of increase
than on a Non GAAP basis, as 2012 included higher intangible asset
amortization, the impact of impairment charges and higher legal and litigation
costs, which included a charge of $57.5 million in relation to the agreement in
principle with the US Government and settling the litigation related to the
termination of co-promotion agreement for VYVANSE. 
Impairment charges relate to RESOLOR intangible assets as the actual and
projected performance for RESOLOR has been adversely affected by the
challenging European reimbursement environment. Shire has evaluated alternative
sales and marketing strategies for RESOLOR in response to these challenges but
has judged that projected profitability levels will continue to be below the
level forecast at the time of the acquisition of Movetis N.V. ("Movetis"). 
Gain on sale of product rights 
For the year to December 31, 2012 Shire recorded a gain on sale of product
rights of $18.1 million (2011: loss of $6.0 million) following re-measurement
of the contingent consideration receivable from the divestment of DAYTRANA. 
Integration and acquisition costs 
For the year to December 31, 2012 Shire recorded integration and acquisition
costs of $25.2 million (2011: $13.7 million), primarily associated with the
acquisition of FerroKin and the integration of ABH. In 2011 integration and
acquisition costs primarily related to the acquisition of ABH. 
Interest expense 
For the year to December 31, 2012 Shire incurred interest expense of $38.2
million (2011: $39.1 million). Interest expense principally relates to the
coupon and amortization of issue costs on Shire's $1,100 million 2.75%
convertible bonds due 2014. 
Taxation 
The effective tax rate on Non GAAP income in 2012 was 18% (2011: 22%) and the
effective tax rate on US GAAP income was 18% (2011: 21%). The effective tax
rate on both Non GAAP and US GAAP income in 2012 is lower than 2011 due to
favorable changes in profit mix and the benefit of the recognition of foreign
tax credits. 
FINANCIAL INFORMATION 
TABLE OF CONTENTS 
                                                         Page 
                                                             
Unaudited US GAAP Consolidated Balance Sheets                  15 
                                                             
Unaudited US GAAP Consolidated Statements of Income            16 
                                                             
Unaudited US GAAP Consolidated Statements of Cash Flows        18 
                                                             
Selected Notes to the Unaudited US GAAP Financial Statements      


                                                                 
     (1) Earnings per share                                    20
                                                                 
     (2) Analysis of revenues                                  21


                                                             
Non GAAP reconciliation                                        23 


                                                                 


Unaudited US GAAP financial position as of December 31, 2012
Consolidated Balance Sheets
                                                            December   December
                                                                 31,        31,
                                                                               
                                                               2012       2011 
                                                                               
                                                                  $M         $M


                                                                           
ASSETS                                                                          
                                                                           
Current assets:                                                                 
                                                                           
Cash and cash equivalents                                   1,482.2      620.0  
                                                                           
Restricted cash                                                17.1       20.6  
                                                                           
Accounts receivable, net                                      824.2      845.0  
                                                                           
Inventories                                                   436.9      340.1  
                                                                           
Deferred tax asset                                            229.9      207.6  
                                                                           
Prepaid expenses and other current assets                     221.8      174.9  


                                                                               
                                                                               


                                                                           
Total current assets                                        3,212.1    2,208.2  


                                                                               
                                                                               


                                                                           
Non-current assets:                                                             
                                                                           
Investments                                                    38.7       29.9  
                                                                           
Property, plant and equipment ("PP&E"), net                   955.8      932.1  
                                                                           
Goodwill                                                      644.5      592.6  
                                                                           
Other intangible assets, net                                2,388.1    2,493.0  
                                                                           
Deferred tax asset                                             46.5       50.7  
                                                                           
Other non-current assets                                       31.5       73.7  


                                                                               
                                                                               


                                                                           
Total assets                                                7,317.2    6,380.2  


                                                                               
                                                                               


                                                                           
LIABILITIES AND EQUITY                                                          
                                                                           
Current liabilities:                                                            
                                                                           
Accounts payable and accrued expenses                       1,501.5    1,370.5  
                                                                           
Convertible bonds                                                 -    1,100.0  
                                                                           
Other current liabilities                                     144.1       63.8  


                                                                               
                                                                               


                                                                           
Total current liabilities                                   1,645.6    2,534.3  


                                                                               
                                                                               


                                                                           
Non-current liabilities:                                                        
                                                                           
Convertible bonds                                           1,100.0          -  
                                                                           
Deferred tax liability                                        520.8      516.6  
                                                                           
Other non-current liabilities                                 241.6      144.3  


                                                                               
                                                                               


                                                                           
Total liabilities                                           3,508.0    3,195.2  


                                                                               
                                                                               


                                                                           
Equity:                                                                         
                                                                           
Common stock of 5p par value; 1,000 million shares                             
authorized; and 562.5 million shares issued and outstanding                    
(2011: 1,000 million shares authorized; and 562.5 million                      
shares issued and outstanding)                                 55.7       55.7  
                                                                           
Additional paid-in capital                                  2,981.5    2,853.3  
                                                                           
Treasury stock: 10.7 million shares (2011: 11.8 million)     (310.4)    (287.2) 
                                                                           
Accumulated other comprehensive income                         86.9       60.3  
                                                                           
Retained earnings                                             995.5      502.9  


                                                                               
                                                                               


                                                                           
Total equity                                                3,809.2    3,185.0  


                                                                               
                                                                               


                                                                           
Total liabilities and equity                                7,317.2    6,380.2  


                                                                               


Unaudited US GAAP results for the three months and year to December 31, 2012
Consolidated Statements of Income
                                        3 months   3 months                       
                                           to         to     Year to    Year to
                                                                               
                                     December   December    December   December
                                          31,        31,         31,        31,
                                                                               
                                        2012       2011        2012       2011 
                                                                               
                                           $M         $M          $M         $M


                                                                           
Revenues:                                                                       
                                                                           
Product sales                        1,097.6    1,049.2     4,406.7    3,950.2  
                                                                           
Royalties                               87.2       83.7       241.6      283.5  
                                                                           
Other revenues                          16.4        9.3        32.9       29.7  
                                                                           
Total revenues                       1,201.2    1,142.2     4,681.2    4,263.4  


                                                                               
                                                                               


                                                                           
Costs and expenses:                                                             
                                                                           
Cost of product sales(1)               166.6      153.4       645.4      588.1  
                                                                           
R&D(1)                                 281.9      214.4       965.5      770.7  
                                                                           
SG&A(1)                                665.6      456.1     2,114.0    1,751.4  
                                                                           
(Gain)/loss on sale of product                                                 
rights                                  (1.6)       2.2       (18.1)       6.0  
                                                                           
Reorganization costs                       -        6.3           -       24.3  
                                                                           
Integration and acquisition costs       10.1        5.8        25.2       13.7  
                                                                           
Total operating expenses             1,122.6      838.2     3,732.0    3,154.2  


                                                                               
                                                                               


                                                                           
Operating income                        78.6      304.0       949.2    1,109.2  


                                                                               
                                                                               


                                                                           
Interest income                          0.8        0.4         3.1        1.9  
                                                                           
Interest expense                        (9.2)     (10.3)      (38.2)     (39.1) 
                                                                           
Other (expense)/income, net             (6.3)       2.2        (2.7)      18.1  
                                                                           
Total other expense, net               (14.7)      (7.7)      (37.8)     (19.1) 


                                                                               
                                                                               


                                                                           
Income before income taxes and                                                 
equity in earnings/(losses) of                                                 
equity method investees                 63.9      296.3       911.4    1,090.1  
                                                                           
Income taxes                           (22.4)     (40.3)     (167.0)    (227.6) 
                                                                           
Equity in earnings/(losses) of                                                 
equity method investees, net of                                                
taxes                                    0.5       (0.7)        1.0        2.5  
                                                                           
Net income                              42.0      255.3       745.4      865.0  
                                                                            
Cost of product sales includes amortization of intangible assets relating to
favorable manufacturing contracts of $nil for the three months to December 31,
2012 (2011: $0.4 million) and $0.7 million for the year to December 31, 2012
(2011: $1.7 million). R&D includes intangible asset impairment charges of $44.2
million (2011: $nil) for the three months to December 31, 2012 and $71.2
million (2011: $16.0 million) for the year to December 31, 2012. SG&A costs
include amortization and impairment charges of intangible assets relating to
intellectual property rights acquired of $174.2 million for the three months to
December 31, 2012 (2011: $45.9 million) and $320.8 million for the year to
December 31, 2012 (2011: $165.0 million). 
Unaudited US GAAP results for the three months and year to December 31, 2012
Consolidated Statements of Income (continued) 
                                3 months     3 months                           
                                   to           to      Year to      Year 
to 
                                                                             
                             December     December     December     
December 
                                  31,          31,          31,          
31, 


                                                                                
                                    2012         2011         2012         2011 
                                                                                
                                                                                
                                                                                

Earnings per ordinary share -                                                   

basic                                7.5c        46.4c       134.2c       
156.9c
                                                                                
                                                                                
                                                                                

Earnings per ADS - basic            22.5c       139.2c       402.6c       
470.7c
                                                                                
                                                                                
                                                                                

Earnings per ordinary share -                                                   

diluted                              7.4c        44.4c       130.9c       
150.9c
                                                                                
                                                                                
                                                                                

Earnings per ADS - diluted          22.2c       133.2c       392.7c       
452.7c
                                                                                
                                                                                
                                                                                

Weighted average number of                                                      

shares:                                                                         
                                                                                


                             Millions     Millions     Millions     
Millions 


                                                                                
                                                                                
                                                                                

Basic                              555.2        550.7        555.4        551.1 
                                                                                

Diluted(1)                         558.5        593.9        593.5        595.4 
                                                                                


For the weighted average number of shares used for Non GAAP diluted earnings
per ADS, please refer to the Non GAAP reconciliation tables on pages 23 - 26. 
Unaudited US GAAP results for the three months and year to December 31, 2012
Consolidated Statements of Cash Flows 


                                               3 months to      Year to December  
                                           December 31,             31,        
                                                                               
                                           2012     2011       2012       2011 
                                                                               
                                              $M       $M         $M         $M


                                                                           
CASH FLOWS FROM OPERATING ACTIVITIES:                                           


                                                                               
                                                                               


                                                                           
Net income                                 42.0    255.3      745.4      865.0  
                                                                           
Adjustments to reconcile net income to                                         
net cash provided by operating                                                 
activities:                                                                     
                                                                           
  Depreciation and amortization            77.1     82.6      308.6      294.8  
                                                                           
  Share based compensation                 22.1     21.0       87.1       75.7  
                                                                           
  Impairment of intangible assets         170.9        -      197.9       16.0  
                                                                           
  Gain on sale of non-current investments  (0.2)       -       (0.5)     (23.5) 
                                                                           
  (Gain)/loss on sale of product rights    (1.6)     2.2      (18.1)       6.0  
                                                                           
  Other                                    12.6     10.2       18.0       16.1  
                                                                           
Movement in deferred taxes                (27.9)    (1.3)     (58.3)     (14.5) 
                                                                           
Equity in (earnings)/losses of equity                                          
method investees                           (0.5)     0.7       (1.0)      (2.5) 
                                                                           
Changes in operating assets and                                                
liabilities:                                                                    
                                                                           
  Decrease/(increase) in accounts                                              
  receivable                               45.2    (11.3)      22.2     (134.0) 
                                                                           
  Increase in sales deduction accrual       6.6     34.3       42.7       80.5  
                                                                           
  Increase in inventory                    (6.3)   (21.6)     (88.2)     (64.4) 
                                                                           
  Increase in prepayments and other                                            
  assets                                  (32.3)   (54.1)     (14.5)     (36.8) 
                                                                           
  Increase/(decrease) in accounts payable                                      
  and other liabilities                    64.0     91.4      136.7      (10.0) 
                                                                           
Returns on investment from joint venture      -        -        4.9        5.2  
                                                                           
Net cash provided by operating activities                                      
(A)                                       371.7    409.4    1,382.9    1,073.6  


                                                                               
    CASH FLOWS FROM INVESTING ACTIVITIES:                                          
                                                                               
                                                                               


                                                                           
Movements in restricted cash                  1.8      0.5       3.5       6.2  
                                                                           
Purchases of subsidiary undertakings and                                       
businesses, net of cash acquired                -     (1.5)    (97.0)   (725.0) 
                                                                           
Purchases of non-current investments         (5.9)    (2.4)    (18.0)    (10.7) 
                                                                           
Purchases of PP&E                           (58.0)   (58.4)   (149.6)   (194.3) 
                                                                           
Purchases of intangible assets                  -        -     (43.5)     (5.2) 
                                                                           
Proceeds from disposal of non-current                                          
investments and PP&E                          2.6     11.3       7.2     106.0  
                                                                           
Proceeds from capital expenditure grants        -        -       8.4         -  
                                                                           
Proceeds received on sale of product                                           
rights                                        4.1      3.2      17.8      12.0  
                                                                           
Returns of equity investments and                                              
proceeds from short term investments            -      0.1       0.2       1.8  
                                                                           
Net cash used in investing activities(B)    (55.4)   (47.2)   (271.0)   (809.2) 


                                                                               

Unaudited US GAAP results for the three months and year to December 31, 2012
Consolidated Statements of Cash Flows (continued)
                                                3 months to       Year to December 
                                            December 31,             31,        
                                                                                
                                             2012     2011       2012      2011 
                                                                                


                                            $M       $M         $M        
$M 
                                                                             
                                                                             
CASH FLOWS FROM FINANCING ACTIVITIES:                                            
                                                                             
Proceeds from drawing of revolving credit                                        
facility                                        -        -          -      30.0  
                                                                             
Repayment of revolving credit facility          -        -          -     
(30.0) 
                                                                             
Repayment of debt acquired through                                               
business combinations                           -        -       (3.0)    
(13.1) 
                                                                             
Excess tax benefit associated with                                               
exercise of stock options                     2.1      7.7       40.7      31.4  
                                                                             
Payments to acquire shares under the                                             
share buy-back program                     (106.5)       -     (106.5)        -  
                                                                             
Payments to acquire shares by the                                                
Employee Benefit Trust ("EBT")              (48.4)   (25.0)     (99.3)   
(151.8) 
                                                                             
Proceeds from exercise of options            15.6     12.5       16.2      13.4  
                                                                             
Deferred contingent consideration                                                
payments                                     (2.9)       -       (5.8)        -  
                                                                             
Payment of dividend                         (15.6)   (13.3)     (86.3)    
(73.8) 
                                                                             
Other                                           -     (0.5)      (0.3)     
(1.5) 
                                                                             
Net cash used in financing activities(C)   (155.7)   (18.6)    (244.3)   
(195.4) 
                                                                             
Effect of foreign exchange rate changes                                          
on cash and cash equivalents (D)             (0.3)       -       (5.4)      0.4  
                                                                             
Net increase in cash and cash equivalents                                        
(A) +(B) +(C) +(D)                          160.3    343.6      862.2      69.4  
                                                                             
Cash and cash equivalents at beginning of                                        
period                                    1,321.9    276.4      620.0     550.6  
                                                                             
Cash and cash equivalents at end of                                              
period                                    1,482.2    620.0    1,482.2     620.0  


                                                                                



Unaudited US GAAP results for the three months and year to December 31, 2012

Selected Notes to the Financial Statements

 (1)  Earnings Per Share ("EPS")
                                   3 months    3 months                        
                                         to          to     Year to     Year to
                                                                               
                                   December    December    December    December
                                        31,         31,         31,         31,
                                                                               
                                      2012        2011        2012        2011 
                                                                               
                                         $M          $M          $M          $M
                                                                               
                                                                               


                                                                           
Numerator for basic EPS               42.0       255.3       745.4       865.0  
                                                                           
Interest on convertible bonds,                                                 
net of tax (1)                           -         8.4        31.3        33.6  


                                                                               
                                                                               


                                                                           
Numerator for diluted EPS             42.0       263.7       776.7       898.6  


                                                                               
                                                                                 


                                                                           
Weighted average number of                                                     
shares:                                                                         


                                                                               
                                   Millions    Millions    Millions    Millions


                                                                           
Basic(2)                             555.2       550.7       555.4       551.1  
                                                                           
Effect of dilutive shares:                                                      
                                                                           
Share based awards to employees                                                
(3)                                    3.3         9.7         4.6        10.9  
                                                                           
Convertible bonds 2.75% due 2014                                               
(4)                                      -        33.5        33.5        33.4  


                                                                               
                                                                               


                                                                           
Diluted(5)                           558.5       593.9       593.5       595.4  
                                                                            
For the three month period ended December 31, 2012 interest on the convertible
bond has not been added back as the effect would be anti-dilutive 
Excludes shares purchased by the EBT and under the share buy-back program and
presented by Shire as treasury stock. 
Calculated using the treasury stock method. 
Calculated using the "if converted" method. 
For the weighted average number of shares used for Non GAAP diluted earnings
per ADS, please refer to the Non GAAP reconciliation tables on pages 23 - 26. 
The share equivalents not included in the calculation of the diluted weighted
average number of shares are shown below: 


                                   3 months     3 months                          
                                      to           to      Year to      Year to
                                                                               
                                December     December     December     December
                                     31,          31,          31,          31,
                                                                               
                                   2012         2011         2012         2011 
                                                                               
                                Millions     Millions     Millions     Millions


                                                                           
Share based awards to                                                          
employees(1)                        6.7          2.7          5.2          2.9  
                                                                           
Convertible bonds 2.75% due                                                    
2014(2)                            33.5            -            -            -  
                                                                            
Certain stock options have been excluded from the calculation of diluted EPS
because (a) their exercise prices exceeded Shire's average share price during
the calculation period or (b) the required performance conditions were not
satisfied as at the balance sheet date. 
For the three month period ended December 31, 2012 the ordinary shares
underlying the convertible bonds have not been included in the calculation of
the diluted weighted average number of shares, as the effect of their inclusion
would be anti-dilutive. 
Unaudited US GAAP results for the year to December 31, 2012 
Selected Notes to the Financial Statements 
(2)  Analysis of revenues 
Year to December 31,        2012        2011     2012         2012  


                                                                   
                                                     %   % of total
                                                                   
                               $M          $M   change      revenue


                                                               
Net product sales:                                                  
                                                               
Specialty Pharmaceuticals                                           
                                                               
BehavioralHealth                                                    
                                                               
VYVANSE                  1,029.8       805.0       28%          22% 
                                                               
ADDERALL XR                429.0       532.8      -19%           9% 
                                                               
INTUNIV                    287.8       223.0       29%           6% 
                                                               
EQUASYM®                    29.2        19.9       47%           1% 


                                                                   
                         1,775.8     1,580.7       12%          38%


                                                               
Gastro Intestinal                                                   
                                                               
LIALDA/MEZAVANT            399.9       372.1        7%           9% 
                                                               
PENTASA                    265.8       251.4        6%           6% 
                                                               
RESOLOR                     11.8         6.1       93%          <1% 


                                                                   
                           677.5       629.6        8%          15%


                                                               
General products                                                    
                                                               
FOSRENOL                   172.0       166.9        3%           4% 
                                                               
XAGRID®                     97.2        90.6        7%           2% 


                                                                   
                           269.2       257.5        5%           6%
                                                                   
                                                                   


                                                               
Other product sales        112.4       147.8      -24%           2% 
                                                               
Total SP product sales   2,834.9     2,615.6        8%          61% 


                                                                   
                                                                   


                                                               
Human Genetic Therapies                                             
                                                               
ELAPRASE                   497.6       464.9        7%          11% 
                                                               
REPLAGAL                   497.5       475.2        5%          11% 
                                                               
VPRIV                      306.6       256.2       20%           6% 
                                                               
FIRAZYR                    116.3        33.0      252%           2% 
                                                               
Total HGT product sales  1,418.0     1,229.3       15%          30% 


                                                                   
                                                                   


                                                               
Regenerative Medicine                                               
                                                               
DERMAGRAFT                 153.8       105.3       46%           3% 
                                                               
Total RM product sales     153.8       105.3       46%           3% 


                                                                   
                                                                   


                                                               
Total product sales      4,406.7     3,950.2       12%          94% 


                                                                   
                                                                   


                                                               
Royalties:                                                          
                                                               
3TC and ZEFFIX              91.6        82.7       11%           2% 
                                                               
ADDERALL XR                 70.3       107.1      -34%           2% 
                                                               
FOSRENOL                    53.3        46.5       15%           1% 
                                                               
Other                       26.4        47.2      -44%          <1% 
                                                               
Total royalties            241.6       283.5      -15%           5% 


                                                                   
                                                                   


                                                               
Other revenues              32.9        29.7       11%           1% 


                                                                   
                                                                   


                                                               
Total revenues           4,681.2     4,263.4       10%         100% 


    Unaudited US GAAP results for the three months to December 31, 2012

Selected Notes to the Financial Statements

(2)  Analysis of revenues
 

3 months to December 31,    2012       2011     2012         2012 
                                                                  
                                                    %   % of total
                                                                  
                               $M         $M   change      revenue


                                                              
Net product sales:                                                 
                                                              
Specialty Pharmaceuticals                                          
                                                              
BehavioralHealth                                                   
                                                              
VYVANSE                    256.5      217.1       18%          21% 
                                                              
ADDERALL XR                 81.5      124.8      -35%           7% 
                                                              
INTUNIV                     81.2       65.4       24%           7% 
                                                              
EQUASYM                      7.9        4.3       84%           1% 


                                                                  
                           427.1      411.6        4%          36%


                                                              
Gastro Intestinal                                                  
                                                              
LIALDA/MEZAVANT            111.4       96.1       16%           9% 
                                                              
PENTASA                     69.1       65.2        6%           6% 
                                                              
RESOLOR                      3.5        2.1       67%          <1% 


                                                                  
                           184.0      163.4       13%          15%


                                                              
General products                                                   
                                                              
FOSRENOL                    45.2       39.9       13%           4% 
                                                              
XAGRID                      26.5       21.4       24%           2% 


                                                                  
                            71.7       61.3       17%           6%
                                                                  
                                                                  


                                                              
Other product sales         26.5       30.5      -13%           2% 
                                                              
Total SP product sales     709.3      666.8        6%          59% 


                                                                  
                                                                  


                                                              
Human Genetic Therapies                                            
                                                              
ELAPRASE                   139.3      124.0       12%          12% 
                                                              
REPLAGAL                   118.2      120.9       -2%          10% 
                                                              
VPRIV                       77.3       69.3       12%           6% 
                                                              
FIRAZYR                     34.6       14.9      132%           3% 
                                                              
Total HGT product sales    369.4      329.1       12%          31% 


                                                                  
                                                                  


                                                              
Regenerative Medicine                                              
                                                              
DERMAGRAFT                  18.9       53.3      -65%           1% 
                                                              
Total RM product sales      18.9       53.3      -65%           1% 


                                                                  
                                                                  


                                                              
Total product sales      1,097.6    1,049.2        5%          91% 


                                                                  
                                                                  


                                                              
Royalties:                                                         
                                                              
3TC and ZEFFIX              56.8       18.6      205%           5% 
                                                              
ADDERALL XR                  8.1       40.5      -80%           1% 
                                                              
FOSRENOL                    16.3       15.1        8%           1% 
                                                              
Other                        6.0        9.5      -37%          <1% 
                                                              
Total royalties             87.2       83.7        4%           7% 


                                                                  
                                                                  


                                                              
Other revenues              16.4        9.3       76%           2% 


                                                                  
                                                                  


                                                              
Total revenues           1,201.2    1,142.2        5%         100% 
                                                               
Unaudited results for the year to December 31, 2012 
Non GAAP reconciliation 
Year  to December                                                              
31, 2012              US GAAP               Adjustments                Non GAAP 


                                                                               
                                                                               
                                                                               
                                    (a)    (b)    (c)     (d)    (e)           
                                                                               
                           $M        $M     $M     $M      $M     $M         $M


                                                                           
Total revenues       4,681.2       -      -      -       -      -      4,681.2  


                                                                               
                                                                               


                                                                           
Costs and expenses:                                                             
                                                                           
Cost of product                                                                
sales                  645.4       -      -      -       -    (31.5)     613.9  
                                                                           
R&D                    965.5     (71.2) (23.0)   -       -    (22.5)     848.8  
                                                                           
SG&A                 2,114.0    (320.8)   -      -    (102.6) (59.8)   1,630.8  
                                                                           
Gain on sale of                                                                
product rights         (18.1)      -      -     18.1     -      -          -    
                                                                           
Integration and                                                                
acquisition costs       25.2       -    (25.2)   -       -      -          -    
                                                                           
Depreciation             -         -      -      -       -    113.8      113.8  
                                                                           
Total operating                                                                
expenses             3,732.0    (392.0) (48.2)  18.1  (102.6)   -      3,207.3  


                                                                               
                                                                               


                                                                           
Operating income       949.2     392.0   48.2  (18.1)  102.6    -      1,473.9  


                                                                               
                                                                               


                                                                           
Interest income          3.1       -      -      -       -      -          3.1  
                                                                           
Interest expense       (38.2)      -      -      -       -      -        (38.2) 
                                                                           
Other (expense)/                                                               
income, net             (2.7)      4.0    -      -       -      -          1.3  
                                                                           
Total other expense,                                                           
net                    (37.8)      4.0    -      -       -      -        (33.8) 
                                                                           
Income before income                                                           
taxes and equity in                                                            
earnings of equity                                                             
method investees       911.4     396.0   48.2  (18.1)  102.6    -      1,440.1  
                                                                           
Income taxes          (167.0)    (59.5)  (9.9)   -     (28.3)   -       (264.7) 
                                                                           
Equity in earnings                                                             
of equity method                                                               
investees, net of                                                              
tax                      1.0       -      -      -       -      -          1.0  
                                                                           
Net income             745.4     336.5   38.3  (18.1)   74.3    -      1,176.4  
                                                                           
Impact of                                                                      
convertible debt,                                                              
net of tax              31.3       -      -      -       -      -         31.3  
                                                                           
Numerator for                                                                  
diluted EPS            776.7     336.5   38.3  (18.1)   74.3    -      1,207.7  
                                                                           
Weighted average                                                               
number of shares                                                               
(millions) - diluted   593.5       -      -      -       -      -        593.5  
                                                                           
Diluted earnings per                                                           
ADS                    392.7c    170.0c  19.4c (9.1c)   37.5c   -        610.5c 
                                                                            
The following items are included in Adjustments: 
Amortization and asset impairments: Impairment of IPR&D intangible assets for
RESOLOR in the EU ($71.2 million), impairment charges of intellectual property
rights acquired for RESOLOR in the EU ($126.7 million), amortization of
intangible assets relating to intellectual property rights acquired ($194.1
million), impairment of available for sale securities ($4.0 million), and tax
effect of adjustments; 
Acquisitions and integration activities: Up-front payments made to Sangamo
Biosciences Inc. and for the acquisition of the US rights to prucalopride
(marketed in certain countries in Europe as RESOLOR) ($23.0 million), costs
primarily associated with the acquisition of FerroKin and the integration of
ABH ($16.0 million), charges related to the change in fair value of deferred
contingent consideration ($9.2 million), and tax effect of adjustments; 
Divestments, reorganizations and discontinued operations: Re-measurement of
DAYTRANA contingent consideration to fair value ($18.1 million) and tax effect
of adjustments; 
Legal and litigation costs: Costs related to litigation, government
investigations, other disputes and external legal costs ($102.6 million), and
tax effect of adjustments; and 
Depreciation reclassification: Depreciation of $113.8 million included in Cost
of product sales, R&D costs and SG&A costs for US GAAP separately disclosed for
the presentation of Non GAAP earnings. 
Unaudited results for the year to December 31, 2011 
Non GAAP reconciliation 
                                                                           
Year to December 31, 2011     US GAAP           Adjustments            Non GAAP 


                                                                               
                                            (a)    (b)    (c)    (d)           
                                                                               
                                   $M        $M     $M     $M     $M         $M


                                                                           
Total revenues               4,263.4       -      -      -      -      4,263.4  
                                                                            
                                                                           
Costs and expenses:                                                             
                                                                           
Cost of product sales          588.1       -    (11.0) (11.3) (33.2)     532.6  
                                                                           
R&D                            770.7     (16.0)   -      -    (25.2)     729.5  
                                                                           
SG&A                         1,751.4    (165.0)   -      -    (63.1)   1,523.3  
                                                                           
Loss on sale of product                                                        
rights                           6.0       -      -     (6.0)   -          -    
                                                                           
Reorganization costs            24.3       -      -    (24.3)   -          -    
                                                                           
Integration and acquisition                                                    
costs                           13.7       -    (13.7)   -      -          -    
                                                                           
Depreciation                     -         -      -      -    121.5      121.5  
                                                                           
Total operating expenses     3,154.2    (181.0) (24.7) (41.6)   -      2,906.9  


                                                                               
                                                                               


                                                                           
Operating income             1,109.2     181.0   24.7   41.6    -      1,356.5  


                                                                               
                                                                               


                                                                           
Interest income                  1.9       -      -      -      -          1.9  
                                                                           
Interest expense               (39.1)      -      -      -      -        (39.1) 
                                                                           
Other income/(expense), net     18.1       2.4    -    (23.5)   -         (3.0) 
                                                                           
Total other expense, net       (19.1)      2.4    -    (23.5)   -        (40.2) 
                                                                           
Income before income taxes                                                     
and equity in earnings of                                                      
equity method investees      1,090.1     183.4   24.7   18.1    -      1,316.3  
                                                                           
Income taxes                  (227.6)    (58.7)  (8.3)   2.7    -       (291.9) 
                                                                           
Equity in earnings of equity                                                   
method investees, net of tax     2.5       -      -      -      -          2.5  
                                                                           
Net income                     865.0     124.7   16.4   20.8    -      1,026.9  
                                                                           
Impact of convertible debt,                                                    
net of tax                      33.6       -      -      -      -         33.6  
                                                                           
Numerator for diluted EPS      898.6     124.7   16.4   20.8    -      1,060.5  
                                                                           
Weighted average number of                                                     
shares (millions) - diluted    595.4       -      -      -      -        595.4  
                                                                           
Diluted earnings per ADS       452.7c     62.7c   8.4c  10.5c   -        534.3c 
The following items are included in Adjustments: 
Amortization and asset impairments: Impairment of intangible assets ($16.0
million), amortization of intangible assets relating to intellectual property
rights acquired ($165.0 million), impairment of available for sale securities
($2.4 million), and tax effect of adjustments; 
Acquisitions and integration activities:Unwind of ABH inventory fair value
adjustment ($11.0 million), costs associated with acquisition and integration
of ABH ($13.6 million) and integration of Movetis ($8.3 million), less
adjustment to contingent consideration payable for EQUASYM ($8.2 million), and
tax effect of adjustments; 
Divestments, reorganizations and discontinued operations: Accelerated
depreciation ($6.6 million) and dual running costs ($4.7 million) on the
transfer of manufacturing from Owings Mills to a third party, re-measurement of
DAYTRANA contingent consideration to fair value ($6.0 million), reorganization
costs ($24.3 million) on the transfer of manufacturing from Owings Mills to a
third party and the establishment of an international commercial hub in
Switzerland, gain on disposal of investment in Vertex ($23.5 million), and tax
effect of adjustments; and 
Depreciation: Depreciation of $121.5 million included in Cost of product sales,
R&D costs and SG&A costs for US GAAP separately disclosed for the presentation
of Non GAAP earnings. 


    Unaudited results for the three months to December 31, 2012

Non GAAP reconciliation

3 months to December                                                           
31, 2012               US GAAP               Adjustments               Non GAAP
                                                                               
                                     (a)    (b)    (c)    (d)    (e)           
                                                                               
                            $M        $M     $M     $M     $M     $M         $M


                                                                           
Total revenues        1,201.2       -      -      -      -      -      1,201.2  


                                                                               
                                                                               


                                                                           
Costs and expenses:                                                             
                                                                           
Cost of product sales   166.6       -      -      -      -     (7.9)     158.7  
                                                                           
R&D                     281.9     (44.2)   -      -      -     (4.2)     233.5  
                                                                           
SG&A                    665.6    (174.2)   -      -    (62.2) (17.5)     411.7  
                                                                           
Gain on sale of                                                                
product rights           (1.6)      -      -      1.6    -      -          -    
                                                                           
Integration and                                                                
acquisition costs        10.1       -    (10.1)   -      -      -          -    
                                                                           
Depreciation              -         -      -      -      -     29.6       29.6  
                                                                           
Total operating                                                                
expenses              1,122.6    (218.4) (10.1)   1.6  (62.2)   -        833.5  


                                                                               
                                                                               


                                                                           
Operating income         78.6     218.4   10.1   (1.6)  62.2    -        367.7  


                                                                               
                                                                               


                                                                           
Interest income           0.8       -      -      -      -      -          0.8  
                                                                           
Interest expense         (9.2)      -      -      -      -      -         (9.2) 
                                                                           
Other expense, net       (6.3)      4.0    -      -      -      -         (2.3) 
                                                                           
Total other expense,                                                           
net                     (14.7)      4.0    -      -      -      -        (10.7) 
                                                                           
Income before income                                                           
taxes and equity in                                                            
earnings of equity                                                             
method investees         63.9     222.4   10.1   (1.6)  62.2    -        357.0  
                                                                           
Income taxes            (22.4)    (17.5)   0.2    -    (13.8)   -        (53.5) 
                                                                           
Equity in earnings of                                                          
equity method                                                                  
investees, net of tax     0.5       -      -      -      -      -          0.5  
                                                                           
Net income               42.0     204.9   10.3   (1.6)  48.4    -        304.0  
                                                                           
Impact of convertible                                                          
debt, net of tax (1)      -         7.6    -      -      -      -          7.6  
                                                                           
Numerator for diluted                                                          
EPS                      42.0     212.5   10.3   (1.6)  48.4    -        311.6  
                                                                           
Weighted average                                                               
number of shares                                                               
(millions) - diluted                                                           
(1)                     558.5      33.5    -      -      -      -        592.0  
                                                                           
Diluted earnings per                                                           
ADS                      22.5c    106.5c   5.1c (0.9c)  24.6c   -        157.8c 
The impact of convertible debt, net of tax has a dilutive effect on Non GAAP
basis. 
The following items are included in Adjustments: 
Amortization and asset impairments: Impairment of IPR&D intangible assets for
RESOLOR ($44.2 million), impairment charges of intellectual property rights
acquired for RESOLOR in the EU ($126.7 million), amortization of intangible
assets relating to intellectual property rights acquired ($47.5 million),
impairment of available for sale securities ($4.0 million), and tax effect of
adjustments; 
Acquisition and integration activities: Costs primarily associated with the
acquisition of FerroKin and the integration of ABH ($4.2 million), charges
related to the change in fair value of deferred contingent consideration ($5.9
million), and tax effect of adjustments; 
Divestments, reorganizations and discontinued operations: Re-measurement of
DAYTRANA contingent consideration to fair value ($1.6 million), and tax effect
of adjustments; 
Legal and litigation costs: Costs related to litigation, government
investigations, other disputes and external legal costs ($62.2 million), and
tax effect of adjustments; and 
Depreciation reclassification: Depreciation of $29.6 million included in Cost
of product sales, R&D costs and SG&A costs for US GAAP separately disclosed for
the presentation of Non GAAP earnings. 


    Unaudited results for the three months to December 31, 2011

Non GAAP reconciliation

3 months to December 31, 2011   US GAAP          Adjustments           Non GAAP
                                                                               
                                             (a)   (b)    (c)    (d)           
                                                                               
                                     $M       $M    $M     $M     $M         $M


                                                                           
Total revenues                 1,142.2      -     -      -      -      1,142.2  


                                                                               
                                                                               


                                                                           
Costs and expenses:                                                             
                                                                           
Cost of product sales            153.4      -    (2.0)  (2.3) (10.8)     138.3  
                                                                           
R&D                              214.4      -     -      -     (8.8)     205.6  
                                                                           
SG&A                             456.1    (45.9)  -      -    (16.7)     393.5  
                                                                           
Loss on sale of product rights     2.2      -     -     (2.2)   -          -    
                                                                           
Reorganization costs               6.3      -     -     (6.3)   -          -    
                                                                           
Integration and acquisition                                                    
costs                              5.8      -    (5.8)   -      -          -    
                                                                           
Depreciation                       -        -     -      -     36.3       36.3  
                                                                           
Total operating expenses         838.2    (45.9) (7.8) (10.8)   -        773.7  


                                                                               
                                                                               


                                                                           
Operating income                 304.0     45.9   7.8   10.8    -        368.5  


                                                                               
                                                                               


                                                                           
Interest income                    0.4      -     -      -      -          0.4  
                                                                           
Interest expense                 (10.3)     -     -      -      -        (10.3) 
                                                                           
Other income/(expense), net        2.2      -     -      -      -          2.2  
                                                                           
Total other income/(expense),                                                  
net                               (7.7)     -     -      -      -         (7.7) 
                                                                           
Income before income taxes and                                                 
equity in earnings of equity                                                   
method investees                 296.3     45.9   7.8   10.8    -        360.8  
                                                                           
Income taxes                     (40.3)   (23.1) (4.1)  (1.8)   -        (69.3) 
                                                                           
Equity in earnings of equity                                                   
method investees, net of tax      (0.7)     -     -      -      -         (0.7) 
                                                                           
Net income                       255.3     22.8   3.7    9.0    -        290.8  
                                                                           
Impact of convertible debt,                                                    
net of tax                         8.4      -     -      -      -          8.4  
                                                                           
Numerator for diluted EPS        263.7     22.8   3.7    9.0    -        299.2  
                                                                           
Weighted average number of                                                     
shares (millions) - diluted      593.9      -     -      -      -        593.9  
                                                                           
Diluted earnings per ADS         133.2c    11.5c  1.9c   4.6c   -        151.2c 
The following items are included in Adjustments: 
Amortization and asset impairments: Amortizationof intangible assets relating
to intellectual property rights acquired ($45.9 million), and tax effect of
adjustments; 
Acquisition and integration activities: Unwind of ABH inventory fair value
adjustment ($2.0 million), costs associated with the acquisition and
integration of ABH ($3.5 million) and integration of Movetis ($2.3 million),
and tax effect of adjustments; 
Divestments, reorganizations and discontinued operations: Dual running costs
($2.3 million) on the transfer of manufacturing from Owings Mills to a third
party, re-measurement of DAYTRANA contingent consideration to fair value ($2.2
million), reorganization costs ($6.3 million) on the transfer of manufacturing
from Owings Mills to a third party and establishment of an international
commercial hub in Switzerland, and tax effect of adjustments; and 
Depreciation: Depreciation of $36.3 million included in Cost of product sales,
R&D costs and SG&A costs for US GAAP separately disclosed for the presentation
of Non GAAP earnings. 


    Unaudited results for the three months and year to December 31, 2012

Non GAAP reconciliation

The following table reconciles US GAAP net cash provided by operating
activities to Non GAAP cash generation:
                                          3 months to       Year to December    
                                         December 31,              31,          
                                                                                
                                         2012      2011       2012       2011   
                                                                                
                                            $M        $M         $M         $M  
                                                                                

Net cash provided by operating                                                  

activities                              371.7     409.4    1,382.9    1,073.6   
                                                                                

Tax and interest payments, net           79.9      37.4      230.8      317.4   
                                                                                

Up-front payments in respect of                                                 

in-licensed and acquired products           -         -       23.0          -   
                                                                                

Non GAAP cash generation                451.6     446.8    1,636.7    1,391.0   
                                                                                


The following table reconciles US GAAP net cash provided by operating
activities to Non GAAP free cash flow: 


                                          3 months to       Year to December    
                                         December 31,              31,          
                                                                                
                                         2012      2011       2012       2011   
                                                                                
                                            $M        $M         $M         $M  
                                                                                

Net cash provided by operating                                                  

activities                              371.7     409.4    1,382.9    1,073.6   
                                                                                

Up-front payments in respect of                                                 

in-licensed and acquired products           -         -       23.0          -   
                                                                                

Capital expenditure                     (58.0)    (58.4)    (149.6)    (194.3)  
                                                                                

Non GAAP free cash flow                 313.7     351.0    1,256.3      879.3   
                                                                                
    Non GAAP net cash/(debt) comprises:
                          December 31,   December 31,
                                                     
                                 2012           2011 
                                                     
                                    $M             $M


                                                 
Cash and cash equivalents     1,482.2          620.0  
                                                  
                                                 
Convertible bonds            (1,100.0)      (1,100.0) 
                                                 
Other debt                       (9.3)          (8.2) 
                                                 
Non GAAP net cash/(debt)        372.9         (488.2) 
                                                  
NOTES TO EDITORS 
Shire enables people with life-altering conditions to lead better lives. 
Through our deep understanding of patients' needs, we develop and provide
healthcare in the areas of: 
Behavioral Health and Gastro Intestinal conditions 
Rare Diseases 
Regenerative Medicine 
as well as other symptomatic conditions treated by specialist physicians. 
We aspire to imagine and lead the future of healthcare, creating value for
patients, physicians, policymakers, payors and our shareholders. 
www.shire.com 
THE "SAFE HARBOR" STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT
OF 1995 
Statements included herein that are not historical facts are forward-looking
statements. Such forward-looking statements involve a number of risks and
uncertainties and are subject to change at any time. In the event such risks or
uncertainties materialize, Shire's results could be materially adversely
affected. The risks and uncertainties include, but are not limited to, that: 
Shire's products may not be a commercial success; 
revenues from ADDERALL XR are subject to generic erosion; 
the failure to obtain and maintain reimbursement, or an adequate level of
reimbursement, by third party payors in a timely manner for Shire's products
may impact future revenues and earnings; 
Shire relies on a single source for manufacture of certain of its products and
a disruption to the supply chain for those products may result in Shire being
unable to continue marketing or developing a product or may result in Shire
being unable to do so on a commercially viable basis; 
Shire uses third party manufacturers to manufacture many of its products and is
reliant upon third party contractors for certain goods and services, and any
inability of these third party manufacturers to manufacture products, or any
failure of these third party contractors to provide these goods and services,
in each case in accordance with its respective contractual obligations, could
adversely affect Shire's ability to manage its manufacturing processes or to
operate its business; 
the development, approval and manufacturing of Shire's products is subject to
extensive oversight by various regulatory agencies and regulatory approvals or
interventions associated with changes to manufacturing sites, ingredients or
manufacturing processes could lead to significant delays, increase in operating
costs, lost product sales, an interruption of research activities or the delay
of new product launches; 
the actions of certain customers could affect Shire's ability to sell or market
products profitably  and fluctuations in buying or distribution patterns by
such customers could adversely impact Shire's revenues, financial conditions or
results of operations; 
investigations or enforcement action by regulatory authorities or law
enforcement agencies relating to Shire's activities in the highly regulated
markets in which it operates may result in the distraction of senior
management, significant legal costs and the payment of substantial compensation
or fines; 
adverse outcomes in legal matters and other disputes, including Shire's ability
to obtain, maintain, enforce and defend patents and other intellectual property
rights required for its business, could have a material adverse effect on
Shire's revenues, financial condition or results of operations; 
and other risks and uncertainties detailed from time to time in Shire's filings
with the Securities and Exchange Commission, including those risks outlined in
"Item 1A: Risk Factors" in Shire's Form 10-K for the years ended December 31,
2011 and 2012. 
Non GAAP Measures 
This press release contains financial measures not prepared in accordance with
US GAAP. These measures are referred to as "Non GAAP" measures and include: Non
GAAP operating income; Non GAAP net income; Non GAAP diluted earnings per ADS;
effective tax rate on Non GAAP income before income taxes and earnings/(losses)
of equity method investees ("effective tax rate on Non GAAP income"); Non GAAP
cost of product sales; Non GAAP research and development; Non GAAP selling,
general and administrative; Non GAAP other income/expense; Non GAAP cash
generation; Non GAAP free cash flow and Non GAAP net cash/(debt). These Non
GAAP measures exclude the effect of certain cash and non-cash items, that
Shire's management believes are not related to the core performance of Shire's
business. 
These Non GAAP financial measures are used by Shire's management to make
operating decisions because they facilitate internal comparisons of Shire's
performance to historical results and to competitors' results. Shire's
Remuneration Committee uses certain key Non GAAP measures when assessing the
performance and compensation of employees, including Shire's executive
directors. 
The Non GAAP measures are presented in this press release as Shire's management
believe that they will provide investors with a means of evaluating, and an
understanding of how Shire's management evaluates, Shire's performance and
results on a comparable basis that is not otherwise apparent on a US GAAP
basis, since many non-recurring, infrequent or non-cash items that Shire's
management believe are not indicative of the core performance of the business
may not be excluded when preparing financial measures under US GAAP. 
These Non GAAP measures should not be considered in isolation from, as
substitutes for, or superior to financial measures prepared in accordance with
US GAAP. 
Where applicable the following items, including their tax effect, have been
excluded when calculating Non GAAP earnings for both 2012 and 2011, and from
our Outlook: 
Amortization and asset impairments:
Intangible asset amortization and impairment charges; and
Other than temporary impairment of investments. 
Acquisitions and integration activities:
Up-front payments and milestones in respect of in-licensed and acquired 
products;
Costs associated with acquisitions, including transaction costs, fair value
adjustments on contingent consideration and acquired inventory;
Costs associated with the integration of companies; and
Noncontrolling interests in consolidated variable interest entities. 
Divestments, re-organizations and discontinued operations:
Gains and losses on the sale of non-core assets;
Costs associated with restructuring and re-organization activities;
Termination costs; and
Income/(losses) from discontinued operations. 
Legal and litigation costs:
Net legal costs related to the settlement of litigation, government
investigations and other disputes (excluding internal legal team costs). 
Depreciation, which is included in Cost of product sales, R&D and SG&A costs in
our US GAAP results, has been separately disclosed for the presentation of 2011
and 2012 Non GAAP earnings. 
Cash generation represents net cash provided by operating activities, excluding
up-front and milestone payments for in-licensed and acquired products, tax and
interest payments. 
Free cash flow represents net cash provided by operating activities, excluding
up-front and milestone payments for in-licensed and acquired products, but
including capital expenditure in the ordinary course of business. 
A reconciliation of Non GAAP financial measures to the most directly comparable
measure under US GAAP is presented on pages 23 to 27. 
Growth at CER, which is a Non GAAP measure, is computed by restating 2012
results using average 2011 foreign exchange rates for the relevant period. 
Average exchange rates for the year to December 31, 2012 were $1.59:£1.00 and
$1.29:€1.00 (2011: $1.60:£1.00 and $1.39:€1.00). Average exchange rates 
for Q4
2012 were $1.61:£1.00 and $1.29:€1.00 (2011: $1.57:£1.00 and 
$1.35:€1.00). 
TRADE MARKS 
All trade marks designated ® and ™ used in this press release are trade 
marks
of Shire plc or companies within the Shire group except for 3TC® and ZEFFIX®
which are trade marks of GSK, PENTASA® which is a registered trade mark of
FERRING B.V., LIALDA® which is a trade mark of Nogra International Limited,
MEZAVANT® which is a trade mark of Giuliani International Limited and 
DAYTRANA®
which is a trade mark of Noven Pharmaceuticals Inc. Certain trade marks of
Shire plc or companies within the Shire group are set out in Shire's Annual
Report on Form 10-K for the years ended December 31, 2011 and 2012 and the
Quarterly Report on Form 10-Q for the three months and nine months ended
September 30, 2012. 
END 
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