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SHIRE PLC: New CEO reports Q1 and sets out strategy for growth

New Chief Executive reports Q1 results and sets out strategy for growth 
Shire delivers 10% increase in Non GAAP earnings; full year EPS guidance in
line with consensus (1) 
May 2, 2013 - Shire (LSE: SHP, NASDAQ: SHPG) announces results for the three
months to March 31, 2013. 
Financial Highlights                               Q1 2013     Reported Growth  


                                                                     (2)       
                                                                               


                                                   $1,117                  
Product sales                                         million            +1%(3) 
                                                                            
                                                   $1,162                  
Total revenues                                        million            -1%(3) 


                                                                               
                                                                               


                                                                           
Non GAAP operating income                        $393 million            +9%(3) 
                                                                           
US GAAP operating income                         $129 million           -56%(4) 


                                                                               
                                                                               


                                                                           
Non GAAP diluted earnings per ADS                       $1.63           +10%(3) 
                                                                           
US GAAP diluted earnings per ADS                        $0.35           -72%(3) 


                                                                               
                                                                               


                                                                           
Non GAAP cash generation                         $257 million           -17%(3) 
                                                                           
Non GAAP free cash flow                          $113 million           -54%(3) 
                                                                           
US GAAP net cash provided by operating                                         
activities                                       $160 million           -38%(3) 


          

(1)  See page 4 for assumptions.

(2)  Percentages compare to equivalent 2012 period.

(3)  Percentage growth on a Constant Exchange Rate ("CER") basis is in line
with the reported growth for the quarter.

(4)  US GAAP operating income includes the impact of goodwill impairment, see
page 11 for details.

The Non GAAP financial measures included within this release are explained on
page 21, and are reconciled to the most directly comparable financial measures
prepared in accordance with US GAAP on pages 18 - 20.


Flemming Ornskov, M.D., Chief Executive Officer, commented:

"In Q1 2013 we experienced continued strong performance from VYVANSE, INTUNIV,
LIALDA, VPRIV and FIRAZYR offset by the challenge of lower sales of DERMAGRAFT
and REPLAGAL which we are actively managing. We generated $257 million of cash
during the quarter and delivered 10% Non GAAP earnings growth while investing
in our R&D pipeline. 

Shire has consistently delivered growth significantly above the industry levels
of mid single digit and we intend that this will be the case in the future. As
we look forward to the remainder of the year, we continue to expect to deliver
earnings growth in line with current consensus earnings expectations for 2013
(1).

On becoming Shire Chief Executive Officer, I am pleased to confirm the
direction we will take, in order to continue to deliver significantly above
industry average growth. We intend to continue to be a high-growth innovation
business providing differentiated specialist medicines in areas of high unmet
need for patients treated by specialist physicians. Shire's strategic
priorities are to grow sales of our existing portfolio and to bring new
innovative treatments to market through both R&D and Business Development.

To deliver this we are evolving the way the business works, introducing a
flatter and more scalable structure of initially five commercially focused
business units (Rare Diseases, Neuroscience, GI, Regenerative Medicine and
Internal Medicine) and a single R&D organization supported by centralized
corporate functions.

In the first quarter we added to our pipeline with three acquisitions: Lotus
Tissue Repair, Premacure and SARcode BioSciences. The last two provide us with
the foundation to build a potential new business unit in ophthalmology - a
growing market with many unmet patient needs.  We're reviewing our pipeline to
prioritize investment in our innovative, late stage pipeline assets. We also
aim to focus our business development on acquiring later stage assets and to
grow our sales in Latin America and Asia.

As the new Chief Executive, I am excited by the potential opportunities for
delivering even greater value to Shire's patients and shareholders and I look
forward to updating you in the many quarters to come."

SHIRE STRATEGY

Flemming Ornskov, Chief Executive Officer ("CEO") today sets out his strategy
for Shire's future and outlines a re-alignment of its business structure to
drive future growth and innovation. Shire will continue to grow through
focusing on its core strengths of developing and marketing innovative
specialist medicines to meet significant unmet patient needs.

The growth strategy will be delivered through a sharpened focus on two key
priorities:

Commercial Excellence - driving optimum performance of currently marketed
products

Pipeline Innovation - building the pipeline of specialty medicines to deliver
future value through both Research & Development ("R&D") and Business
Development ("BD")

These priorities will be underpinned by a simplification of the business
structure in order to drive commercial excellence and pipeline innovation.
Shire will have an "In-Line" marketed product group and a "Pipeline" group,
supported by a single technical operations group and simplified, centralized
corporate functions.

Delivering the strategy

The newly established "In-Line" marketed products group will consist of five
business units ("BU"s) focused exclusively on commercial delivery; Rare
Diseases, Neuroscience (formerly Behavioral Health), Gastrointestinal ("GI"),
Regenerative Medicine ("RM") and Internal Medicine. More BUs will be formed
when significant assets are either acquired or reach the appropriate stage of
development.

The Pipeline group, consisting of R&D and BD, will prioritize its activities
towards late stage development programs. Pre-clinical development focus will be
primarily in rare diseases. As part of the delivery of this strategy, Shire's R
&D will be led by a single R&D organization. BD will continue to be a key
activity for Shire, focused on identifying later stage development programs and
in market products in target specialist areas.

In addition to chairing a newly formed Executive Committee, Flemming Ornskov
will also chair the "In-Line" and "Pipeline" group teams, which will be the
engines accountable for driving the profitable growth.

Geographic expansion

Shire will work to increase profitability of its existing international
business while also investing in Asia and Latin America. Plans are underway for
more focused growth in Japan where Shire recently announced the establishment
of a new office, and in Brazil which is already the 5th largest country for
Shire's rare disease business sales. China has also been identified as a
priority and Shire is evaluating options for expanding more of the business
into this dynamic market.
 

FINANCIAL SUMMARY

First Quarter 2013 Unaudited Results
                            Q1 2013                         Q1 2012            
                                                                               
                 US GAAP Adjustments Non GAAP    US GAAP Adjustments Non GAAP  
                                                                               
                      $M          $M       $M         $M          $M       $M  


                                                                           
Total revenues    1,162           -    1,162      1,172           -    1,172    
                                                                           
Operating                                                                      
income              129         264      393        295          67      362    


                                                                               
                                                                               


                                                                           
Diluted                                                                        
earnings per                                                                   
ADS                $0.35       $1.28    $1.63      $1.24       $0.24    $1.48   


                                                                               
                                                                               
    

Product sales in Q1 2013 were $1,117 million, up 1% compared against a strong
set of comparatives in Q1 2012.

Five of our top ten products delivered double digit growth: VYVANSE® (up 15% 
to
$298 million), LIALDA®/MEZAVANT® (up 12% to $101 million), VPRIV® (up 14% to
$82 million), INTUNIV® (up 13% to $78 million) and FIRAZYR®(up 112% to $42
million).

Total product sales were held back this quarter by DERMAGRAFT® (down 62% to 
$19
million), resulting from the ongoing restructuring of the RM commercial
organization; REPLAGAL® (down 15% to $114 million) due to some shipment 
timings
and as increased competition outweighed continued growth in new naïve 
patients;
and ELAPRASE® (down 9% to $114 million) due to uneven ordering patterns in
Latin America.

The rate of growth in total product sales (Q1 2013: +1%) is expected to improve
to mid-to-high single digit growth for the full year as our portfolio continues
to deliver growth and we benefit from easing comparatives over the second half
of the year.

Total revenues decreased 1% to $1,162 million (Q1 2012: $1,172 million) as
growth in product sales was offset, as expected, by lower royalties,
particularly ADDERALL XR® royalties received from Impax Laboratories Inc.
("Impax") due to both lower volumes and a lower royalty rate payable since the
launch of a new generic product.

On a Non GAAP basis:

Operating income was up 9% to $393 million (Q1 2012: $362 million), as combined
total operating costs decreased at a higher rate (down 5%) than total revenues,
driven by lower Selling, General and Administrative ("SG&A") expenditure (down
16% reflecting both lower SG&A this year and comparison to high SG&A in Q1
2012). The effect was moderated by higher R&D expenditure, which was up 15% as
we continue to progress a number of early and late stage pipeline programs
expected to drive future growth.

On a US GAAP basis:

Operating income was down 56% to $129 million (Q1 2012: $295 million) primarily
due to an impairment charge for goodwill ($199 million) relating to Shire's RM
business. Following a review of future forecasts for the RM business unit,
management determined in Q1 2013 that future sales are now expected to be lower
than anticipated at the time of acquisition and consequently in accordance with
US GAAP it has been determined that the goodwill attributable to the RM
business unit is impaired.

Non GAAP diluted earnings per ADS increased 10% to $1.63 (Q1 2012: $1.48) due
to higher Non GAAP operating income and a lower effective tax rate on Non GAAP
income of 19% (Q1 2012: 20%).

On a US GAAP basis, diluted earnings per ADS decreased 72% to $0.35 (Q1 2012:
$1.24), due to lower US GAAP operating income and a higher US GAAP effective
tax rate of 46% (Q1 2012: 17%) both of which reflect the impact of the
impairment of RM goodwill.

Cash generation, a Non GAAP measure, decreased by 17% to $257 million (Q1 2012:
$310 million) as higher cash receipts from gross product sales were more than
offset by the payment to settle the litigation with Impax ($48 million), lower
royalty receipts and higher sales deduction payments in the quarter.

Free cash flow, also a Non GAAP measure, decreased by 54% to $113 million (Q1
2012: $248 million) primarily due to the lower cash generation and the effect
of higher cash tax payments in Q1 2013 as compared to Q1 2012.

On a US GAAP basis, net cash provided by operating activities was down 38% to
$160 million (Q1 2012: $257 million).

OUTLOOK

We reiterate our confidence in delivering Non GAAP earnings growth in line with
consensus earnings expectations for 2013(1).

For the full year we now anticipate product sales growth in the mid-to-high
single digits. The rate of growth in total product sales will improve from that
seen in the first quarter as our portfolio continues to deliver growth and we
benefit from an easing of comparatives over the second half of the year.

Specifically we expect ELAPRASE to post double digit growth for the full year
and we expect REPLAGAL sales to recover from the first quarter decline to be
more in line with 2012 for the full year. We expect DERMAGRAFT to return to
growth in the second half but sales for the full year will still be lower than
in 2012.

We continue to expect Royalties and other revenues to be 30-40% lower than
2012, and our Non GAAP gross margin is expected to remain at a similar level to
2012.

We expect low-to-mid teens growth in Non GAAP R&D as we continue to invest
increasing amounts in our promising pipeline and to progress our late stage
clinical trials. As a result of lower Non GAAP SG&A in Q1, and continued
careful management of our cost base, we now expect Non GAAP SG&A for the full
year to be marginally lower than 2012. Taken together, we now expect low single
digit growth in combined Non GAAP R&D and SG&A, creating operating leverage for
the full year.

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 remainder of the year, we continue to expect to
deliver earnings 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 $6.67 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).


FIRST QUARTER 2013 AND RECENT PRODUCT AND PIPELINE DEVELOPMENTS

Products

VYVANSE - for the treatment of Attention Deficit Hyperactivity Disorder
("ADHD")

On May 1, 2013 Shire announced that the US Food and Drug Administration ("FDA")
approved VYVANSE as a maintenance treatment in children and adolescents with
ADHD. With this new approval, VYVANSE is currently the only stimulant approved
for maintenance treatment in children and adolescents aged 6 to 17 years with
ADHD, as well as in adults with ADHD.

DERMAGRAFT - for the treatment of Diabetic Foot Ulcers ("DFU") in Canada

On March 25, 2013 Shire announced that DERMAGRAFT is now available in Canada
for the treatment of DFU, following its approval by Health Canada as a class IV
medical device for the treatment of DFU in September 2012.

VPRIV - for the treatment of Gaucher disease (Type 1)

On March 21, 2013 the Committee for Medicinal Products for Human Use of the
European Medicines Agency issued a positive opinion regarding an update to the
clinical efficacy and safety section of the VPRIV Summary of Product
Characteristics to include information on long term clinical data relating to
efficacy and safety in skeletal pathology from the TKT025 extension study in
Type 1 Gaucher patients.

Pipeline

Lisdexamfetamine dimesylate(1) ("LDX") - for the treatment of negative symptoms
of schizophrenia ("NSS")

Shire has cancelled the NSS Phase 3 program after a review and prioritization
of Shire's development portfolio and taking into account investment
requirements for recent acquisitions. No patients had been dosed in the studies
and this decision was not due to any safety issues with LDX in any patient
population. Shire remains committed to continuing Phase 3 trials for MDD and
BED and these are enrolling as expected.

(1) Currently marketed as VYVANSE in the US and ELVANSE® in certain 
territories
in the EU for the treatment of ADHD.

HGT4510 - for Duchenne Muscular Dystrophy ("DMD")

In April 2013, following analysis of the results of toxicology studies, Shire
discontinued development of HGT4510 and returned Shire's rights in the asset to
Acceleron Pharma Inc. The development of HGT4510 was placed on clinical hold in
February 2011, subject to the completion of the toxicology studies.

VASCUGEL® - for the treatment of end-stage renal disease.

In March 2013, Shire enrolled the first patient in its Phase 2 clinical program
for VASCUGEL.


OTHER DEVELOPMENTS

Legal Proceedings

INTUNIV patent litigation

On April 25, 2013, Shire settled all pending litigation with Actavis, Inc.,
Actavis LLC, and Actavis Elizabeth LLC (collectively "Actavis") and Watson
Laboratories, Inc.-Florida, Watson Pharma, Inc. and ANDA, Inc. (collectively
"Watson") in connection with Actavis's and Watson's Abbreviated New Drug
Applications ("ANDAs") for generic versions of INTUNIV for the treatment of
ADHD.

The settlement provides Actavis with a license to make and market Actavis's
generic versions of INTUNIV in the United States on December 1, 2014, or
earlier in certain limited circumstances. Such sales will require the payment
of a royalty of 25% of gross profits to Shire during the 180 day period of
Actavis's exclusivity. The settlement also provides Watson with a license to
make and market Watson's generic versions of INTUNIV in the United States, 181
days after Actavis's launch of generic INTUNIV, or earlier in certain limited
circumstances.

Acquisition of SARcode Bioscience Inc. ("SARcode")

On April 17, 2013 Shire completed the acquisition of SARcode, a privately held
biopharmaceutical company based in Brisbane, California. This acquisition
brings a new Phase 3 compound, lifitegrast, currently under development for the
signs and symptoms of dry eye disease, into Shire's portfolio. Shire
anticipates launching lifitegrast in the United States as early as 2016 pending
a positive outcome of the Phase 3 clinical development program and regulatory
approvals. Shire is acquiring the global rights to lifitegrast and will
evaluate an appropriate regulatory filing strategy for markets outside of the
United States. After customary closing adjustments, cash consideration paid on
closing amounted to $150 million with further potential contingent payments
upon achievement of certain clinical, regulatory, and commercial milestones.

Acquisition of Premacure AB ("Premacure")

On March 8, 2013 Shire completed the acquisition of Premacure, a privately held
biotechnology company based in Uppsala, Sweden, developing PREMIPLEX®, a
protein replacement therapy in Phase 2 development  for the prevention of
retinopathy of prematurity ("ROP"). Shire purchased Premacure for an up-front
payment of $31 million with further potential contingent payments based on the
achievement of pre-specified development and commercial milestones.

Shire will continue the ongoing Phase 2 study, the primary goal of which is to
compare the severity of ROP among patients treated with PREMIPLEX, versus an
untreated control population matched for gestational age.

The acquisition of SARcode and Premacure will provide Shire with the foundation
to build a potential new business unit in ophthalmology - a growing market with
many unmet patient needs.   

Acquisition of Lotus Tissue Repair, Inc. ("Lotus")

On February 12, 2013 Shire completed the acquisition of Lotus, a privately held
biotechnology company, based in Cambridge, MA, with a protein replacement
therapy in pre-clinical development 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 up-front cash payment
of $49 million and further contingent cash payments may be payable in future
periods, depending on the achievement of certain safety and development
milestones.

Share buy-back Program

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 April 30, 2013 Shire had made
on-market repurchases totaling 7,374,182 ordinary shares at a cost of $222.7
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 18 - 19.


BOARD AND COMMITTEE CHANGES

Shire announces that Susan Kilsby, Non Executive Director of Shire becomes the
Chairman of Shire's Audit, Compliance & Risk Committee with immediate effect.
Susan has been a member of this Committee since September 2011 when she joined
the Board. She takes over the Chairmanship from David Kappler who remains a
member of the Committee.

Shire also announces that Dr David Ginsburg becomes Chairman of Shire's Science
& Technology Committee with immediate effect. Dr David Ginsburg has been a
member of the Committee and the Board since June 2010 and he has more recently
been the acting Chairman of the Science & Technology Committee.


ADDITIONAL INFORMATION

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


                                                 
Overview of First Quarter 2013 Financial Results  8   
                                                 
Financial Information                             12  
                                                 
Non GAAP Reconciliation                           18  
                                                 
Notes to Editors                                  20  
                                                 
Safe Harbor Statement                             21  
                                                 
Explanation of Non GAAP Measures                  21  
                                                 
Trade marks                                       22  
  
For further information please contact: 
Investor Relations                                          
                                                       
  - Eric Rojas       erojas@shire.com       +1 781 482 0999 
                                                       
  - Sarah Elton-Farr seltonfarr@shire.com  +44 1256 894 157 
                                                       
Media                                                       
                                                       
  - Jessica Mann     jmann@shire.com       +44 1256 894 280 
                                                       
  - Gwen Fisher      gfisher@shire.com      +1 484 595 9836 
                                                       
  - Jessica Cotrone  jcotrone@shire.com     +1 781 482 9538 
                                                        
Dial in details for the live conference call for investors 13:00 BST / 08:00
EDT on May 2, 2013: 
UK dial in:                                             0808 237 0030 or 0203
139 4830 
US dial in:                                             1 866 928 7517 or 1 718
873 9077 
International Access Numbers:               Click here 
Password/Conf ID:                                29454716# 
Live Webcast:                                       Click here 
OVERVIEW OF FIRST QUARTER 2013 FINANCIAL RESULTS 
1.         Product sales 
For the three months to March 31, 2013 product sales increased by 1% to $1,117
million (Q1 2012: $1,107 million) and represented 96% of total revenues (Q1
2012: 94%). 


                                        Year on year growth                       
                                                                               


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


                                                                               
                                                                               


                                                                           
VYVANSE                298.4       +15%         +15%    +6%                 17% 
                                                                           
ELAPRASE               114.3        -9%          -9% n/a(2)              n/a(2) 
                                                                           
REPLAGAL               114.0       -15%         -15% n/a(3)              n/a(3) 
                                                                           
LIALDA/MEZAVANT        100.5       +12%         +12%    +9%                 23% 
                                                                           
VPRIV                   81.6       +14%         +14% n/a(2)              n/a(2) 
                                                                           
INTUNIV                 77.7       +13%         +13%   +12%                  4% 
                                                                           
PENTASA®                71.0        +8%          +8%    -3%                 
14% 
                                                                           
FIRAZYR                 41.7      +112%        +111% n/a(2)              n/a(2) 
                                                                           
DERMAGRAFT              18.5       -62%         -62% n/a(2)              n/a(2) 
                                                                           
OTHER                   99.2       -11%         -11%    n/a                 n/a 
                                                                           
Excluding ADDERALL                                                             
XR                   1,016.9        +2%          +2%                            
                                                                           
ADDERALL XR             99.8       -10%         -10%   -20%                  5% 
                                                                           
Total                1,116.7        +1%          +1%                            
(1)           Data provided by IMS Health National Prescription Audit ("IMS
NPA"). Exit market share represents the average monthly US market share in the
month ended March 31, 2013. 
(2)           IMS NPA Data not available. 
(3)           Not sold in the US in Q1 2013. 


    VYVANSE - ADHD

VYVANSE product sales showed strong growth (up 15%) in Q1 2013 compared to Q1
2012, primarily as a result of higher prescription demand (up 6%) and the
effect of a price increase taken since Q1 2012. Shire also experienced further
destocking in the retail channel which was offset by the positive impact of
some shipment slippage from Q4 2012.

ELAPRASE - Hunter syndrome

Product sales from ELAPRASE in Q1 2013 were down 9% compared to Q1 2012 due to
the impact of the timing of large orders to certain markets which order less
frequently. The underlying number of patients being treated with ELAPRASE
continues to grow.

REPLAGAL - Fabry disease

REPLAGAL sales for the quarter were down 15% primarily due to the impact of
ordering patterns in Latin America and lower volumes in Europe, where the
impact of increased competition outweighed the continued growth in new naïve
patients. On a global basis, total patient numbers continue to show good long
term growth.

LIALDA/MEZAVANT - Ulcerative colitis

Product sales for LIALDA/MEZAVANT increased (up 12%) in Q1 2013 primarily due
to higher market share in the US and the effect of a price increase taken since
Q1 2012. These positive factors were to a lesser extent offset by the effect of
higher US sales deductions and higher destocking at the retail level.

VPRIV - Gaucher disease

Growth in VPRIV product sales (up 14%) in Q1 2013 was driven by the continued
growth in the number of patients on therapy.

INTUNIV - ADHD

The strong growth in INTUNIV product sales (up 13%) in Q1 2013 was driven by
growth in US prescription demand (up 12%) and the effect of price increases
taken since Q1 2012. These positive factors were partially offset by the effect
of destocking in Q1 2013 as compared to slight stocking in Q1 2012.

PENTASA - Ulcerative colitis

PENTASA product sales (up 8%) benefited from price increases taken since Q1
2012, the impact of which was moderated by a small amount of retail pipeline
destocking in Q1 2013.

FIRAZYR - Hereditary Angioedema ("HAE")

The significant growth in FIRAZYR sales (up 112%) reflects the continued
success of the product in the US market.

DERMAGRAFT - DFU

DERMAGRAFT product sales were down 62%, reflecting the impact of an ongoing
restructuring of the RM sales and marketing organization and the implementation
of a new commercial model. Whilst our future expectations for long term growth
of DERMAGRAFT have been revised downwards, we still expect the product to
return to growth over coming quarters. 

ADDERALL XR - ADHD

ADDERALL XR product sales decreased (down 10%) in Q1 2013 primarily as a result
of lower US prescription demand (down 20%) following the introduction of a new
generic competitor in Q2 2012 and to a lesser extent the effect of higher sales
deductions as a percentage of sales in Q1 2013 compared to Q1 2012. These
negative factors were partially offset by the benefit of a price increase taken
since Q1 2012.


2.         Royalties
                                                 Year on year growth


                                                                
Product                Royalties to Shire $M     Royalties      CER  


                                                                    
                                                                    


                                                                
3TC® and ZEFFIX® 1.00          12.5                 -8%         -8%  
                                                                
FOSRENOL®        1.00          9.0                  -10%        -10% 
                                                                
ADDERALL XR      1.00          8.1                  -68%        -68% 
                                                                
Other            1.00          8.9                 +20%        +18%  
                                                                
Total            1.00          38.5                 -32%        -32% 
                                                                 
As expected, royalty income from 3TC and ZEFFIX continued to decline due to
increased competition from other products and the expiry of patents in certain
territories. 
Royalties from ADDERALL XR in Q1 2013 were significantly impacted by reduced
sales volume as well as a lower royalty rate payable on sales of authorized
generic ADDERALL XR by Impax, since the launch of a new generic version in Q2
2012. 
3.         Financial details 
Cost of product sales 


                                Q1                         Q1                  
                              2013                       2012                  
                                        % of product               % of product
                                $M             sales       $M             sales


                                                                           
Cost of product sales (US   155.9                14%   158.4                14%
GAAP)                                                                           
                                                                           
Depreciation                 (7.8)                      (7.2)                   
                                                                           
Cost of product sales (Non  148.1                13%   151.2                14%
GAAP)                                                                           


    

Non GAAP cost of product sales as a percentage of product sales decreased
slightly in Q1 2013, due to improved margins in the ADHD portfolio which were
only partially offset by lower margins on other products.

Research and Development ("R&D")
                                                                               
                                        Q1                     Q1              
                                      2013          % of     2012          % of
                                                 product                product
                                        $M         sales       $M         sales


                                                                           
R&D (US GAAP)                       224.2            20%   220.3            20% 
                                                                           
Payments in respect of in-licensed      -                  (23.0)              
and acquired products                                                           
                                                                           
Depreciation                         (4.6)                  (6.4)               
                                                                           
R&D (Non GAAP)                      219.6            20%   190.9            17% 
                                                                            
Non GAAP R&D increased by $28.7 million, or 15%, due to our increased
investment in a number of targeted R&D programs including non-ADHD programs for
LDX, and spend on SPD602 for Iron Overload and SRM003 for Acute Vascular
Repair, acquired since Q1 2012. 
US GAAP R&D increased by $3.9 million, or 2%, a lower rate of increase than on
a Non GAAP basis as Q1 2012 included payments in respect of acquired and
in-licensed products, not repeated in Q1 2013. 
Selling, General and Administrative ("SG&A") 


                                                                               
                           2013                        2012                    
                                       % of product                % of product
                              $M              sales       $M              sales


                                                                           
SG&A (US GAAP)            438.7                 39%   500.0                 45% 
                                                                           
Intangible asset          (45.9)                      (45.6)                   
amortization                                                                    
                                                                           
Legal and litigation       (4.2)                          -                    
costs(1)                                                                        
                                                                           
Depreciation              (16.7)                      (13.6)                    
                                                                           
SG&A (Non GAAP)           371.9                 33%   440.8                 40% 
                                                                            
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 Q1 2012 has not
been restated as the amounts incurred in that period were not significant. 
Non GAAP SG&A decreased by $68.9 million, or 16%, partly due to the benefit of
actions taken during last year, in addition to careful management of our cost
base. The rate of decline in SG&A in Q1 2013 was accentuated by the high level
of SG&A in Q1 2012 relative to the level of spend in subsequent quarters in
2012. 
US GAAP SG&A decreased by $61.3 million, or 12% primarily due to legal and
litigation costs excluded from Non GAAP SG&A in Q1 2013. 
Goodwill impairment charges 
For the three months to March 31, 2013 Shire recorded an impairment charge for
goodwill of $198.9 million (Q1 2012: $nil) relating to Shire's RM business.
Following a review of future forecasts for the RM business unit, management
determined in Q1 2013 that future sales are now expected to be lower than
anticipated at the time of acquisition and consequently in accordance with US
GAAP, it has been determined that the goodwill attributable to the RM business
unit is impaired. Whilst our future expectations for long term growth of
DERMAGRAFT have been revised downwards, we still expect the product to return
to growth over coming quarters. 
Gain on sale of product rights 
For the three months to March 31, 2013 Shire recorded a gain on sale of product
rights of $6.5 million (2012: $7.2 million) following re-measurement of the
contingent consideration receivable from the divestment of DAYTRANA®. 
Reorganization costs 
For the three months to March 31, 2013 Shire recorded reorganization costs of
$17.5 million (Q1 2012: $nil) relating to the collective dismissal and closure
of Shire's facility at Turnhout, Belgium. 
Integration and acquisition costs 
For the three months to March 31, 2013 Shire recorded integration and
acquisition costs of $4.1 million primarily associated with the acquisition of
Lotus and integration of FerroKin Biosciences, Inc. ("FerroKin") in addition to
charges related to the change in fair value of deferred contingent
consideration. In Q1 2012 integration and acquisition costs ($5.3 million)
primarily related to the integration of Advanced BioHealing Inc. ("ABH"). 
Interest expense 
For the three months to March 31, 2013 Shire incurred interest expense of $9.1
million (Q1 2012: $10.2 million). Interest expense in Q1 2013 principally
relates to the coupon on Shire's $1,100 million 2.75% convertible bonds due
2014. 
Taxation 
The effective rate of tax on Non GAAP income in Q1 2013 was 19% (Q1 2012: 20%),
and on a US GAAP basis the effective rate of tax was 46% (Q1 2012: 17%). 
The effective rate of tax in Q1 2013 on a Non GAAP basis is lower than the same
period in 2012 due primarily to the recognition of the 2012 US R&D credit in
the first quarter of 2013, partially offset by adverse changes in profit mix.
The US R&D credit was recognized in Q1 2013 following the enactment of
legislation on January 2, 2013, approving the extension of the regular R&D
credit retrospectively. 
The effective rate of tax in Q1 2013 on a GAAP basis is higher than the same
period in 2012 primarily due to the impact of the impairment of RM goodwill
which is non-deductible for tax purposes, an increase in unrecognised tax
losses and adverse changes in profit mix but partially offset by the
recognition of the 2012 US R&D credit in the first quarter of 2013. 
FINANCIAL INFORMATION 
TABLE OF CONTENTS 


                                                             Page
                                                                 


                                                             
Unaudited US GAAP Consolidated Balance Sheets                  13 
                                                              
                                                             
Unaudited US GAAP Consolidated Statements of Income            14 
                                                              
                                                             
Unaudited US GAAP Consolidated Statements of Cash Flows        15 
                                                              
                                                             
Selected Notes to the Unaudited US GAAP Financial Statements      


                                                                 
     (1) Earnings per share                                    16
                                                                 
     (2) Analysis of revenues                                  17
                                                                 


                                                             
Non GAAP reconciliation                                        18 


    

Unaudited US GAAP financial position as of March 31, 2013
Consolidated Balance Sheets
                                                               March   December
                                                                 31,        31,
                                                                               
                                                               2013       2012 
                                                                               
                                                                  $M         $M


                                                                           
ASSETS                                                                          
                                                                           
Current assets:                                                                 
                                                                           
Cash and cash equivalents                                   1,450.7    1,482.2  
                                                                           
Restricted cash                                                19.3       17.1  
                                                                           
Accounts receivable, net                                      884.4      824.2  
                                                                           
Inventories                                                   471.4      436.9  
                                                                           
Deferred tax asset                                            224.3      229.9  
                                                                           
Prepaid expenses and other current assets                     283.2      221.8  


                                                                               
                                                                               


                                                                           
Total current assets                                        3,333.3    3,212.1  


                                                                               
                                                                               


                                                                           
Non-current assets:                                                             
                                                                           
Investments                                                    39.3       38.7  
                                                                           
Property, plant and equipment ("PP&E"), net                   951.0      955.8  
                                                                           
Goodwill                                                      522.8      644.5  
                                                                           
Other intangible assets, net                                2,657.2    2,388.1  
                                                                           
Deferred tax asset                                             47.3       46.5  
                                                                           
Other non-current assets                                       34.7       31.5  


                                                                               
                                                                               


                                                                           
Total assets                                                7,585.6    7,317.2  


                                                                               
                                                                               


                                                                           
LIABILITIES AND EQUITY                                                          
                                                                           
Current liabilities:                                                            
                                                                           
Accounts payable and accrued expenses                       1,477.2    1,501.5  
                                                                           
Other current liabilities                                     142.5      144.1  


                                                                               
                                                                               


                                                                           
Total current liabilities                                   1,619.7    1,645.6  


                                                                               
                                                                               


                                                                           
Non-current liabilities:                                                        
                                                                           
Convertible bonds                                           1,100.0    1,100.0  
                                                                           
Deferred tax liability                                        607.3      520.8  
                                                                           
Other non-current liabilities                                 476.5      241.6  


                                                                               
                                                                               


                                                                           
Total liabilities                                           3,803.5    3,508.0  


                                                                               
                                                                               


                                                                           
Equity:                                                                         
                                                                           
Common stock of 5p par value; 1,000 million shares                             
authorized; and 562.8 million shares issued and outstanding                    
(2012: 1,000 million shares authorized; and 562.5 million                      
shares issued and outstanding)                                 55.7       55.7  
                                                                           
Additional paid-in capital                                  3,002.1    2,981.5  
                                                                           
Treasury stock: 11.3 million shares (2012: 10.7 million)     (341.6)    (310.4) 
                                                                           
Accumulated other comprehensive income                         49.1       86.9  
                                                                           
Retained earnings                                           1,016.8      995.5  


                                                                               
                                                                               


                                                                           
Total equity                                                3,782.1    3,809.2  


                                                                               
                                                                               


                                                                           
Total liabilities and equity                                7,585.6    7,317.2  


                                                                               


Unaudited US GAAP results for the three months to March 31, 2013
Consolidated Statements of Income
    3 months to March 31,                                          2013       2012 
                                                                               
                                                                  $M         $M


                                                                           
Revenues:                                                                       
                                                                           
Product sales                                               1,116.7    1,106.9  
                                                                           
Royalties                                                      38.5       56.3  
                                                                           
Other revenues                                                  6.7        8.6  
                                                                           
Total revenues                                              1,161.9    1,171.8  


                                                                               
                                                                               


                                                                           
Costs and expenses:                                                             
                                                                           
Cost of product sales(1)                                      155.9      158.4  
                                                                           
R&D                                                           224.2      220.3  
                                                                           
SG&A(1)                                                       438.7      500.0  
                                                                           
Goodwill impairment charge                                    198.9          -  
                                                                           
Gain on sale of product rights                                 (6.5)      (7.2) 
                                                                           
Reorganization costs                                           17.5          -  
                                                                           
Integration and acquisition costs                               4.1        5.3  
                                                                           
Total operating expenses                                    1,032.8      876.8  


                                                                               
                                                                               


                                                                           
Operating income                                              129.1      295.0  


                                                                               
                                                                               


                                                                           
Interest income                                                 0.7        0.8  
                                                                           
Interest expense                                               (9.1)     (10.2) 
                                                                           
Other income, net                                              (1.1)       1.9  
                                                                           
Total other expense, net                                       (9.5)      (7.5) 


                                                                               
                                                                               


                                                                           
Income from continuing operations before income taxes and                      
equity in earnings of equity method investees                 119.6      287.5  
                                                                           
Income taxes                                                  (55.2)     (50.0) 
                                                                           
Equity in earnings of equity method investees, net of                          
taxes                                                           0.4        0.9  
                                                                           
Net income                                                     64.8      238.4  


                                                                               
    3 months to March 31,                    2013       2012 
                                                         


                                                     
Earnings per ordinary share - basic      11.7c      43.1c 
                                                      
                                                     
Earnings per ADS - basic                 35.1c     129.3c 
                                                      
                                                     
Earnings per ordinary share - diluted    11.7c      41.4c 
                                                      
                                                     
Earnings per ADS - diluted               35.1c     124.2c 


                                                         
                                                         


                                                     
Weighted average number of shares:                        


                                                         
                                      Millions   Millions
                                                         


                                                     
Basic                                   551.5      553.5  
                                                     
Diluted(2)                              555.3      595.6  


     

Cost of product sales includes amortization of intangible assets relating to
favorable manufacturing contracts of $nil for the three months to March 31,
2013 (2012: $0.2 million). SG&A costs include amortization of intangible assets
relating to intellectual property rights acquired of $45.9 million for the
three months to March 31, 2013 (2012: $45.6 million).

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 18 - 19.


Unaudited US GAAP results for the three months to March 31, 2013
Consolidated Statements of Cash Flows


3 months to March 31,                                            2013     2012 
                                                                               
                                                                    $M       $M


                                                                           
CASH FLOWS FROM OPERATING ACTIVITIES:                                           
                                                                           
Net income                                                       64.8    238.4  
                                                                           
Adjustments to reconcile net income to net cash provided by                    
operating activities:                                                           
                                                                           
  Depreciation and amortization                                  75.0     73.0  
                                                                           
  Share based compensation                                       16.6     22.0  
                                                                           
  Goodwill impairment charge                                    198.9        -  
                                                                           
  Other                                                          (4.6)    (5.9) 
                                                                           
Movement in deferred taxes                                        1.4    (20.8) 
                                                                           
Equity in earnings of equity method investees                    (0.4)    (0.9) 


                                                                               
                                                                               


                                                                           
Changes in operating assets and liabilities:                                    
                                                                           
  Increase in accounts receivable                               (51.3)   (65.2) 
                                                                           
  Increase in sales deduction accrual                            44.4     54.5  
                                                                           
  Increase in inventory                                         (29.1)   (25.0) 
                                                                           
  (Increase)/decrease in prepayments and other assets           (61.8)    17.2  
                                                                           
  Decrease in accounts and notes payable and other liabilities  (93.5)   (30.3) 
                                                                           
Net cash provided by operating activities(A)                    160.4    257.0  


                                                                               
    CASH FLOWS FROM INVESTING ACTIVITIES:                                          


                                                                           
Movements in restricted cash                                     (2.2)     5.7  
                                                                           
Purchases of subsidiary undertakings and businesses, net of                    
cash acquired                                                   (77.2)       -  
                                                                           
Purchases of non-current investments                             (2.8)    (4.1) 
                                                                           
Purchases of PP&E                                               (47.3)   (31.7) 
                                                                           
Purchases of intangible assets                                      -    (22.0) 
                                                                           
Proceeds received on sale of product rights                       4.8      5.6  
                                                                           
Proceeds from capital expenditure grants                          2.7      8.4  
                                                                           
Proceeds from disposal of non-current investments and PP&E        0.7      3.8  
                                                                           
Returns from equity investments                                     -      0.1  
                                                                           
Net cash used in investing activities(B)                       (121.3)   (34.2) 


                                                                               
    CASH FLOWS FROM FINANCING ACTIVITIES:                                          


                                                                           
Payments to acquire shares under the share buy-back program     (70.6)       -  
                                                                           
Deferred contingent consideration payments                       (6.0)       -  
                                                                           
Excess tax benefit associated with exercise of stock options      4.4     34.8  
                                                                           
Other                                                            (0.7)     0.6  
                                                                           
Net cash (used in)/provided by financing activities(C)          (72.9)    35.4  


                                                                               
                                                                               


                                                                           
Effect of foreign exchange rate changes on cash and cash                       
equivalents(D)                                                    2.3      1.2  


                                                                               
                                                                               


                                                                           
Net (decrease)/increase in cash and cash equivalents(A) +(B)                   
+(C) +(D)                                                       (31.5)   259.4  
                                                                           
Cash and cash equivalents at beginning of period              1,482.2    620.0  
                                                                           
Cash and cash equivalents at end of period                    1,450.7    879.4  


                                                                               


Unaudited US GAAP results for the three months to March 31, 2013

Selected Notes to the Financial Statements

 (1)  Earnings Per Share("EPS")
    3 months to March 31,                           2013       2012 
                                                                
                                                   $M         $M
                                                                
                                                                


                                                            
Net Income                                      64.8      238.4  


                                                                
                                                                


                                                            
Numerator for basic EPS                         64.8      238.4  
                                                            
Interest on convertible bonds, net of tax(1)       -        8.4  


                                                                
                                                                


                                                            
Numerator for diluted EPS                       64.8      246.8  


                                                                
                                                                
                                                                
                                                                


                                                            
Weighted average number of shares:                               


                                                                
                                             Millions   Millions
                                                                
                                                                


                                                            
Basic(2)                                       551.5      553.5  
                                                            
Effect of dilutive shares:                                       
                                                            
Share based awards to employees(3)               3.8        8.6  
                                                            
Convertible bonds 2.75% due 2014(4)                -       33.5  


                                                                
                                                                


                                                            
Diluted(5)                                     555.3      595.6  
                                                             
For the three month period ended March 31, 2013 interest on 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 18 - 19. 
The share equivalents not included in the calculation of the diluted weighted
average number of shares are shown below: 


    3 months to March 31,                            2013                   2012   
                                                                               
                                         No. of shares          No. of shares  
                                              Millions               Millions  
                                                                               
                                                                               


                                                                           
Share based awards to employees                                                
(1)                                               5.6                    6.1    
                                                                           
Convertible bonds 2.75% due 2014                                               
(2)                                              33.6                       -   
                                                                            
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 March 31, 2013 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 three months to March 31, 2013 
Selected Notes to the Financial Statements 
(2)  Analysis of revenues 


    3 months to March 31,      2013       2012     2013         2013 
                                                                 
                                                   %   % of total
                                                                 
                              $M         $M   change      revenue


                                                             
Net product sales:                                                
                                                             
Specialty Pharmaceuticals                                         
                                                             
Behavioral Health                                                 
                                                             
VYVANSE                   298.4      260.0       15%          26% 
                                                             
ADDERALL XR                99.8      111.4      -10%           9% 
                                                             
INTUNIV                    77.7       68.5       13%           7% 
                                                             
EQUASYM®                    6.7        7.2       -7%          <1% 


                                                                 
                          482.6      447.1        8%          42%


                                                             
Gastro Intestinal                                                 
                                                             
LIALDA/MEZAVANT           100.5       90.0       12%           9% 
                                                             
PENTASA                    71.0       65.8        8%           6% 
                                                             
RESOLOR®                    3.2        2.4       33%          <1% 


                                                                 
                          174.7      158.2       10%          15%


                                                             
General products                                                  
                                                             
FOSRENOL                   42.3       45.5       -7%           4% 
                                                             
XAGRID®                    23.4       23.2        1%           2% 


                                                                 
                           65.7       68.7       -4%           6%
                                                                 
                                                                 


                                                             
Other product sales        23.6       32.7      -28%           2% 
                                                             
Total SP product sales    746.6      706.7        6%          64% 


                                                                 
                                                                 


                                                             
Human Genetic Therapies                                           
                                                             
ELAPRASE                  114.3      125.6       -9%          10% 
                                                             
REPLAGAL                  114.0      134.4      -15%          10% 
                                                             
VPRIV                      81.6       71.7       14%           7% 
                                                             
FIRAZYR                    41.7       19.7      112%           3% 
                                                             
Total HGT product sales   351.6      351.4        0%          30% 


                                                                 
                                                                 


                                                             
Regenerative Medicine                                             
                                                             
DERMAGRAFT                 18.5       48.8      -62%           2% 
                                                             
Total RM product sales     18.5       48.8      -62%           2% 


                                                                 
                                                                 


                                                             
Total product sales     1,116.7    1,106.9        1%          96% 


                                                                 
                                                                 


                                                             
Royalties:                                                        
                                                             
3TC and ZEFFIX             12.5       13.6       -8%           1% 
                                                             
FOSRENOL                    9.0       10.0      -10%           1% 
                                                             
ADDERALL XR                 8.1       25.3      -68%          <1% 
                                                             
Other                       8.9        7.4       20%           1% 
                                                             
Total royalties            38.5       56.3      -32%           3% 


                                                                 
                                                                 


                                                             
Other revenues              6.7        8.6      -22%          <1% 


                                                                 
                                                                 


                                                             
Total revenues          1,161.9    1,171.8       -1%         100% 
                                                              
Unaudited results for the three months to March 31, 2013 
Non GAAP reconciliation 
3 months to March 31,                                                          
2013                     US GAAP              Adjustments              Non GAAP 


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


                                                                           
Total revenues          1,161.9       -     -      -     -      -      1,161.9  


                                                                               
                                                                               


                                                                           
Costs and expenses:                                                             
                                                                           
Cost of product sales     155.9       -     -      -     -     (7.8)     148.1  
                                                                           
R&D                       224.2       -     -      -     -     (4.6)     219.6  
                                                                           
SG&A                      438.7     (45.9)  -      -    (4.2) (16.7)     371.9  
                                                                           
Gain on sale of product                                                        
rights                     (6.5)      -     -      6.5   -      -          -    
                                                                           
Goodwill impairment                                                            
charge                    198.9    (198.9)  -      -     -      -          -    
                                                                           
Reorganization costs       17.5       -     -    (17.5)  -      -          -    
                                                                           
Integration and                                                                
acquisition costs           4.1       -    (4.1)   -     -      -          -    
                                                                           
Depreciation                -         -     -      -     -     29.1       29.1  
                                                                           
Total operating                                                                
expenses                1,032.8    (244.8) (4.1) (11.0) (4.2)   -        768.7  


                                                                               
                                                                               


                                                                           
Operating income          129.1     244.8   4.1   11.0   4.2    -        393.2  


                                                                               
                                                                               


                                                                           
Interest income             0.7       -     -      -     -      -          0.7  
                                                                           
Interest expense           (9.1)      -     -      -     -      -         (9.1) 
                                                                           
Other expense, net         (1.1)      -     -      -     -      -         (1.1) 
                                                                           
Total other expense,                                                           
net                        (9.5)      -     -      -     -      -         (9.5) 
                                                                           
Income before income                                                           
taxes and equity in                                                            
earnings of equity                                                             
method investees          119.6     244.8   4.1   11.0   4.2    -        383.7  
                                                                           
Income taxes              (55.2)    (14.6) (0.5)   -    (1.5)     -      (71.8) 
                                                                           
Equity in earnings of                                                          
equity method                                                                  
investees, net of tax       0.4       -     -      -     -      -          0.4  
                                                                           
Net income                 64.8     230.2   3.6   11.0   2.7      -      312.3  
                                                                           
Impact of convertible                                                          
debt, net of tax (1)        -         7.6   -      -     -      -          7.6  
                                                                           
Numerator for diluted                                                          
EPS                        64.8     237.8   3.6   11.0   2.7      -      319.9  
                                                                           
Weighted average number                                                        
of shares (millions) -                                                         
diluted(1)                555.3      33.6   -      -     -      -        588.9  
                                                                           
Diluted earnings per                                                           
ADS                        35.1c    118.8c  1.8c   5.7c  1.5c   -        162.9c 
                                                                            
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: Amortization of intangible assets relating
to intellectual property rights acquired ($45.9 million), impairment of RM
goodwill ($198.9 million), and tax effect of adjustments; 
Acquisition and integration activities: Costs primarily associated with the
acquisition of Lotus and integration of FerroKin ($2.3 million), charges
related to the change in fair value of deferred contingent consideration ($1.8
million), and tax effect of adjustments; 
Divestments, reorganizations and discontinued operations: Re-measurement of
DAYTRANA contingent consideration to fair value ($6.5 million), costs relating
to the collective dismissal and closure of Shire's facility at Turnhout,
Belgium ($17.5 million), and tax effect of adjustments; 
Legal and litigation costs: Costs related to litigation, government
investigations, other disputes and external legal costs ($4.2 million), and tax
effect of adjustments; and 
Depreciation reclassification: Depreciation of $29.1 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 March 31, 2012

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


                                                                           
Total revenues                1,171.8      -      -      -      -      1,171.8  


                                                                               
                                                                               


                                                                           
Costs and expenses:                                                             
                                                                           
Cost of product sales           158.4      -      -      -     (7.2)     151.2  
                                                                           
R&D                             220.3      -    (23.0)   -     (6.4)     190.9  
                                                                           
SG&A                            500.0    (45.6)   -      -    (13.6)     440.8  
                                                                           
Gain on sale of product                                                        
rights                           (7.2)     -      -      7.2    -          -    
                                                                           
Integration and acquisition                                                    
costs                             5.3      -     (5.3)   -      -          -    
                                                                           
Depreciation                      -        -      -      -     27.2       27.2  
                                                                           
Total operating expenses        876.8    (45.6) (28.3)   7.2    -        810.1  


                                                                               
                                                                               


                                                                           
Operating income                295.0     45.6   28.3   (7.2)   -        361.7  


                                                                               
                                                                               


                                                                           
Interest income                   0.8      -      -      -      -          0.8  
                                                                           
Interest expense                (10.2)     -      -      -      -        (10.2) 
                                                                           
Other income, net                 1.9      -      -      -      -          1.9  
                                                                           
Total other expense, net         (7.5)     -      -      -      -         (7.5) 
                                                                           
Income before income taxes                                                     
and equity in earnings of                                                      
equity method investees         287.5     45.6   28.3   (7.2)   -        354.2  
                                                                           
Income taxes                    (50.0)   (13.2)  (6.6)   -      -        (69.8) 
                                                                           
Equity in earnings of equity                                                   
method investees, net of tax      0.9      -      -      -      -          0.9  
                                                                           
Net income                      238.4     32.4   21.7   (7.2)   -        285.3  
                                                                           
Impact of convertible debt,                                                    
net of tax                        8.4      -      -      -      -          8.4  
                                                                           
Numerator for diluted EPS       246.8     32.4   21.7   (7.2)   -        293.7  
                                                                           
Weighted average number of                                                     
shares (millions) - diluted     595.6      -      -      -      -        595.6  
                                                                           
Diluted earnings per ADS        124.2c    16.3c  10.9c (3.5c)   -        147.9c 
                                                                            
The following items are included in Adjustments: 
Amortization and asset impairments: Amortization of intangible assets relating
to intellectual property rights acquired ($45.6 million), and tax effect of
adjustments; 
Acquisition 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
associated with the acquisition of FerroKin and the integration of ABH ($5.3
million); and tax effect of adjustments; 
Divestments, reorganizations and discontinued operations: Re-measurement of
DAYTRANA contingent consideration to fair value ($7.2 million), and tax effect
of adjustments; and 
Depreciation reclassification: Depreciation of $27.2 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 March 31, 2013 
Non GAAP reconciliation 
The following table reconciles US GAAP net cash provided by operating
activities to Non GAAP cash generation: 


                                                                3 months to March 
                                                                    31,        
                                                                               
                                                              2013        2012 
                                                                               
                                                                 $M          $M


                                                                           
Net cash provided by operating activities                    160.4       257.0  
                                                                           
Tax and interest payments, net                                97.1        29.8  
                                                                           
Up-front payments in respect of in-licensed and acquired                       
products                                                         -        23.0  
                                                                           
Non GAAP cash generation                                     257.5       309.8  
                                                                            
The following table reconciles US GAAP net cash provided by operating
activities to Non GAAP free cash flow: 


                                                             3 months to March 
                                                                    31,        
                                                                               
                                                              2013        2012 
                                                                               
                                                                 $M          $M


                                                                           
Net cash provided by operating activities                    160.4       257.0  
                                                                           
Up-front payments in respect of in-licensed and acquired                       
products                                                         -        23.0  
                                                                           
Capital expenditure                                          (47.3)      (31.7) 
                                                                           
Non GAAP free cash flow                                      113.1       248.3  


                                                                               
    Non GAAP net cash comprises:
                          March 31,   December 31,
                                                  
                              2013           2012 
                                                  
                                 $M             $M


                                              
Cash and cash equivalents  1,450.7        1,482.2  


                                                  
                                                  


                                              
Convertible bonds         (1,100.0)      (1,100.0) 
                                              
Other debt                    (8.8)          (9.3) 
                                              
Non GAAP net cash            341.9          372.9  
                                               
NOTES TO EDITORS 
Shire enables people with life-altering conditions to lead better lives. 
Our strategy is to focus on developing and marketing innovative specialty
medicines to meet significant unmet patient needs. 
We provide treatments in Neuroscience, Rare Diseases, Gastrointestinal,
Internal Medicine and Regenerative Medicine and we are developing treatments
for symptomatic conditions treated by specialist physicians in other targeted
therapeutic areas. 
www.shire.com 
FORWARD - LOOKING STATEMENTS - "SAFE HARBOR" STATEMENT UNDER THE PRIVATE
SECURITIES LITIGATION REFORM ACT OF 1995 
Statements included in this announcement that are not historical facts are
forward-looking statements. 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 U.S. Securities and Exchange Commission, including its most recent
Annual Report on Form 10-K. 
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 2013 and 2012, 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 2013
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 18 to 20. 
Growth at CER, which is a Non GAAP measure, is computed by restating 2013
results using average 2012 foreign exchange rates for the relevant period. 
Average exchange rates for Q1 2013 were $1.58:£1.00 and $1.33:€1.00 (2012:
$1.57:£1.00 and $1.31:€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 GlaxoSmithKline, PENTASA® which is a registered trade
mark of FERRING B.V., LIALDA® and MEZAVANT® which are trade marks of Nogra
Pharma 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 year ended December 31,
2012. 

END 
-0- May/02/2013 11:00 GMT