SHIRE PLC: Shire reports 7% product sales growth

Shire reports 7% product sales growth: anticipating double digit
Non GAAP earnings growth in 2013 
July 25, 2013 - Shire (LSE: SHP, NASDAQ: SHPG) announces results for the three
months to June 30, 2013. 
Financial Highlights                                        Q2 2013     
Reported 
                                                                   
Growth(1) 
                                                            $1,230
Product sales                                                  million        
+7% 
                                                            $1,275
Total revenues                                                 million        
+6% 
Non GAAP operating income                                 $452 million        
+8%
US GAAP operating income                                  $342 million       
+13% 
Non GAAP diluted earnings per ADS                                $1.79        
+6%
US GAAP diluted earnings per ADS                                 $1.36       
+10% 
Non GAAP cash generation                                  $374 million       -
28%
Non GAAP free cash flow                                   $241 million       -
44%
US GAAP net cash provided by operating
activities                                                $259 million       -
44% 
(1) Percentages compare to equivalent 2012 period. 
The Non GAAP financial measures included within this release are explained on
page 24, and are reconciled to the most directly comparable financial measures
prepared in accordance with US GAAP on pages 19 - 23. 
GOOD PROGRESS: INCREASING GROWTH AND STRONG OPERATIONAL LEVERAGE IN Q2 
- Product sales growth increased to 7% year on year as expected 
- Non GAAP Operating Income +8% reflecting strong operating leverage in Q2
2013 and year to date 
- Non GAAP earnings per ADS +6%, held back by the timing of quarterly tax
charges 
EXECUTING OUR STRATEGY 
- Further enhanced organic growth and improved operating margins 
- Progression of our late stage pipeline addressing unmet needs including: 
- Lifitegrast for dry eye disease and LDX for binge eating and major
depressive disorders 
- Continued but focused R&D investment in other development opportunities 
- Focus on growth and value-driving business development 
- Good progress integrating three divisions into a simplified `One Shire'
organization to create operating leverage, drive fast decisions and focus on
growth-driving products 
Flemming Ornskov, M.D., Chief Executive Officer, commented: 
"We are pleased with our Q2 results, have made good progress and have returned
to higher growth. 
We're successfully executing our strategy, which is to grow by focusing on
innovation-driven specialty products through both R&D and M&A. We've sharpened
our focus on commercial excellence and we're enhancing our pipeline
productivity. Our late Phase 3 projects lifitegrast and LDX for BED are
progressing well and are programs in which we have increasing confidence. 
Our strategy has been designed to deliver further enhanced growth. We
anticipate delivering full year double digit Non GAAP earnings growth in 2013
and are confident in our ability to grow operating margins going forward." 
FINANCIAL SUMMARY 
Second Quarter 2013 Unaudited Results 
                              Q2 2013                           Q2 2012 
                 US GAAP   Adjustments  Non GAAP   US GAAP   Adjustments 
Non GAAP 
                      $M            $M        $M        $M            $M     
$M
Total revenues         1,275             -     1,275     1,208             -    
 1,208
Operating income         342           110       452       302           118     
420 
Diluted earnings
per ADS                $1.36         $0.43     $1.79     $1.24         $0.44    
 $1.68 
- Product sales in Q2 2013 were $1,230 million, up 7% when compared against a
strong set of comparatives in Q2 2012. On a Constant Exchange Rate ("CER")
basis, which is a Non GAAP measure, product sales were up 8%. 
Six of our top ten products delivered double digit growth: VYVANSE® (up 13% to
$300 million), ELAPRASE® (up 22% to $149 million), LIALDA®/MEZAVANT® (up 46%
to $138 million), INTUNIV® (up 31% to $90 million), PENTASA® (up 15% to $74
million), and FIRAZYR® (up 56% to $50 million). 
LIALDA/MEZAVANT sales in Q2 2013 were particularly strong due in part to new
managed care contracts in the US. ELAPRASE sales in Q2 2013 benefited from the
timing of shipments to markets with large infrequent orders. 
Growth in total product sales was moderated by DERMAGRAFT® (down 57% to $22
million), ADDERALL XR® (down 16% to $112 million) and REPLAGAL® (down 7% to
$114 million; down 5% on a CER basis). Q2 2013 sales for all three products
compare against strong prior year comparatives that will ease over the second
half of the year. 
The return of competition to the Fabry market in Europe was a factor in the
lower REPLAGAL product sales, as was the timing of shipments which have
distorted quarter on quarter growth rates in both 2013 and 2012. However,
recent positive trends in patient dynamics indicate that the impact of
switches to the competitor product is diminishing and we continue to see
strong growth in the number of new naïve patients starting on REPLAGAL
globally. Sales of $114 million in Q2 2013 were flat against Q1 2013 and we
expect similar levels in Q3 2013 with sequential growth in the final quarter
of the year. 
- Total revenues were up 6% to $1,275 million (Q2 2012: $1,208 million) as the
growth in product sales was partially offset, as expected, by lower royalties,
particularly from ADDERALL XR. 
- On a Non GAAP basis: 
Operating income was up 8% to $452 million (Q2 2012: $420 million), reflecting
further operating leverage as total operating costs increased at a lower rate
(up 4%) than total revenues. Research and Development expenditure was up 15%
as we continue to progress a number of promising pipeline programs. The
increase was moderated by lower Selling, General and Administrative
expenditure (down 5%) as we focus on simplifying our business, delivering
efficient growth and with that enhanced margins. 
On a US GAAP basis: 
Operating income was up 13% to $342 million (Q2 2012: $302 million) as the
good underlying operating leverage in Q2 2013 further benefited from lower
legal and litigation costs and lower impairment charges, only partially offset
by higher reorganization and acquisition costs compared to the prior year. 
- Non GAAP diluted earnings per American Depository Share ("ADS") increased 6%
to $1.79 (Q2 2012: $1.68) as higher Non GAAP operating income was partially
offset by a higher effective tax rate on Non GAAP income of 23% (Q2 2012:
20%). 
On a US GAAP basis, diluted earnings per ADS increased 10% to $1.36 (Q2 2012:
$1.24), due to higher US GAAP operating income partially offset by a higher US
GAAP effective tax rate of 22% (Q2 2012: 18%). 
- Cash generation, a Non GAAP measure, was 28% lower at $374 million (Q2 2012:
$520 million) due to timing of receipts from large distributors in the US and
operating expenses payments in Q2 2013 as compared to Q2 2012. In addition
cash generation in Q2 2012 benefited from significant cash receipts from
government-supported healthcare providers in Spain. 
Free cash flow, also a Non GAAP measure, decreased by 44% to $241 million (Q2
2012: $433 million) primarily due to the lower cash generation and the effect
of higher cash tax payments in Q2 2013 as compared to Q2 2012. 
On a US GAAP basis, net cash provided by operating activities was down 44% to
$259 million (Q2 2012: $466 million). 
OUTLOOK 
As we look forward to the remainder of the year, we anticipate delivering full
year double digit Non GAAP earnings growth in 2013. 
Based on our actual results to date and anticipated trends for the remainder
of the year, we continue to expect full year product sales growth in the
mid-to-high single digits. We expect the rate of product sales growth, as
previously guided, to show improvement over the balance of the year as our
portfolio continues to deliver growth and we benefit from an easing of
comparatives in the second half. 
We have narrowed our estimates for royalties and other revenues, which are now
expected to be 35-40% lower than 2012. 
Our Non GAAP gross margin is expected to remain at a similar level to 2012. 
We continue to invest behind our promising pipeline and to progress our late
stage clinical trials. Non GAAP R&D in 2013 is now expected to grow in the low
double digits as compared to the full year 2012. 
While we expect to see a higher level of Non GAAP SG&A in the second half
compared to the first half of 2013 as we increase commercial investment behind
VYVANSE. We now anticipate Non GAAP SG&A for the full year to be 2-4% lower
than 2012. 
We now expect combined Non GAAP R&D and SG&A to be only marginally higher than
in 2012, supporting 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 anticipate
delivering full year double digit Non GAAP earnings growth in 2013. 
SECOND QUARTER 2013 AND RECENT PIPELINE DEVELOPMENTS 
Pipeline 
INTUNIV - for the treatment of Attention Deficit Hyperactivity Disorder
("ADHD") in Canada 
- On July 5, 2013 Shire received approval from Health Canada for
INTUNIV XRTM (guanfacine hydrochloride extended-release tablets) as
monotherapy for the treatment of ADHD in children aged 6 to 12 years and as
adjunctive therapy to psychostimulants for the treatment of ADHD in children,
aged 6 to 12 years, with a sub-optimal response to psychostimulants. The
targeted launch date is November 2013. 
SPD602 - for the treatment of transfusion-dependent iron overload 
- In June 2013 data from an on-going phase 2 study was presented at
the 18th Congress of the European Hematology Association. Seventy-two-week
data in patients with hereditary anemias indicate that the safety,
tolerability and efficacy profile of SPD602 supports its continued
development. Full data from the ongoing phase 2 proof-of-concept program will
be available mid-2014. 
SPD557 - for the treatment of refractory gastroesophageal reflux
disease ("rGERD") 
- This program has been discontinued following review of headline
data from the proof-of-concept study which did not support continued
development. 
SPD554 (selective α2A agonist) - for the treatment of various
central nervous system disorders 
- This program has been discontinued as part of ongoing portfolio
prioritization assessments. 
OTHER DEVELOPMENTS 
Legal Proceedings 
LIALDA patent litigation 
- On May 9, 2013 Shire announced that it had prevailed in its litigation
against Watson Pharmaceuticals Inc., Watson Laboratories, Inc.-Florida, Watson
Pharma, Inc. and Watson Laboratories, Inc. (collectively "Watson", now
"Actavis") in connection with their ANDA for a generic version of Shire's
LIALDA. Following a bench trial, the US Court for the Southern District of
Florida upheld the validity of US Patent No. 6,773,720 and ruled that the
proposed generic product infringes that patent. Actavis has appealed this
ruling to the Court of Appeals of the Federal Circuit. 
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 July 24, 2013 Shire had
made on-market repurchases totaling 9,567,253 Ordinary Shares at a cost of
$289.9 million (excluding transaction costs). 
DIVIDEND 
In respect of the six months ended June 30, 2013 the Board resolved to pay an
interim dividend of 3.00 US cents per Ordinary Share (2012: 2.73 US cents per
Ordinary Share). 
Dividend payments will be made in Pounds Sterling to holders of Ordinary
Shares and in US Dollars to holders of ADSs. A dividend of 1.95 pence per
Ordinary Share (an increase of 12% compared to 2012: 1.74 pence) and 9.00 US
cents per ADS (an increase of 10% compared to 2012: 8.19 US cents) will be
paid on October 3, 2013 to shareholders on the register as at the close of
business on September 6, 2013. 
ADDITIONAL INFORMATION 
The following additional information is included in this press release: 
                                                       Page
Overview of Second Quarter 2013 Financial Results            6
Financial Information                                       10
Non GAAP Reconciliation                                     19
Notes to Editors                                            23
Safe Harbor Statement                                       24
Explanation of Non GAAP Measures                            24
Trade marks                                                 25
For further information please contact: 
Investor Relations 


      - Eric Rojas                 erojas@shire.com     +1 781 482 0999
                                                           +44 1256 894


  - Sarah Elton-Farr           seltonfarr@shire.com             157
Media 


                                                           +44 1256 894
      - Jessica Mann               jmann@shire.com                  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 14:00 BST / 09:00
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OVERVIEW OF SECOND QUARTER 2013 FINANCIAL RESULTS 
1. Product sales 
For the three months to June 30, 2013 product sales increased by 7% to $1,230
million (Q2 2012: $1,148 million) and represented 97% of total revenues (Q2
2012: 95%). 


                                                             US Exit
                                                              Market
                                   Year on year growth       Share(1)


                                    Non GAAP
Product sales      Sales $M   Sales        CER     US Rx(1) 
VYVANSE(2)            300.3    +13%           +13%      +7%        16%
ELAPRASE              149.2    +22%           +25%   n/a(3)     n/a(3)
LIALDA/MEZAVANT       137.5    +46%           +46%     +17%        26%
REPLAGAL              114.1     -7%            -5%   n/a(4)     n/a(4)
ADDERALL XR           112.3    -16%           -16%     -11%         5%
INTUNIV                90.4    +31%           +31%     +10%         5%
VPRIV®                 82.5       -            +1%   n/a(3)     n/a(3)
PENTASA                73.6    +15%           +15%      -1%        14%
FIRAZYR                49.5    +56%           +56%   n/a(3)     n/a(3)
DERMAGRAFT             22.3    -57%           -57%   n/a(3)     n/a(3)
OTHER                  98.5     -9%            -8%      n/a        n/a
Total               1,230.2     +7%            +8% 
(1) Data provided by IMS Health National Prescription Audit ("IMS
NPA") relates solely to US-based prescriptions. Exit market share represents
the average monthly US market share in the month ended June 30, 2013. 
(2) Lisdexamfetamine ("LDX") currently marketed as VYVANSE in the
US & Canada, VENVANSE® in Latin America and ELVANSE® in certain territories 
in
the EU. 
(3) IMS NPA Data not available. 
(4) Not sold in the US in Q2 2013. 
VYVANSE - ADHD 
VYVANSE product sales showed strong growth (up 13%) in Q2 2013 compared to Q2
2012, primarily as a result of higher prescription demand (up 7%) and to a
lesser extent the effect of a price increase taken since Q2 2012, the benefit
of which was partially offset by higher destocking in Q2 2013 compared to Q2
2012. 
ELAPRASE - Hunter syndrome 
Product sales from ELAPRASE in Q2 2013 were up 22% (up 25% on a CER basis)
compared to Q2 2012 primarily due to the impact of the timing of large orders
to certain markets which order less frequently, in addition to underlying
growth in patient numbers. 
LIALDA/MEZAVANT - Ulcerative Colitis 
Product sales for LIALDA/MEZAVANT in Q2 2013 were up 46%. New Managed Care
contracts in the US contributed to increased prescription demand (up 17%) and
stocking in Q2 2013 (compared to destocking in Q2 2012). To a lesser extent
sales also benefited from the effect of a price increase taken since Q2 2012. 
REPLAGAL - Fabry disease 
REPLAGAL sales were down 7% (down 5% on a CER basis) as compared to Q2 2012
partly due to the return of competition to the Fabry market in Europe and the
timing of shipments which have distorted quarter on quarter growth rates in
both 2013 and 2012. However, recent positive trends in patient dynamics
indicate that the impact of switches to the competitor product is diminishing
and we continue to see strong growth in the number of new naïve patients
starting on REPLAGAL globally. Sales of $114.1 million in Q2 2013 were flat
against Q1 2013 and we expect similar levels in Q3 2013 with sequential growth
in the final quarter of the year. 
ADDERALL XR - ADHD 
ADDERALL XR product sales decreased (down 16%) in Q2 2013 primarily
as a result of lower US prescription demand (down 11%) following the
introduction of a new generic competitor in June 2012 and the effect of higher
sales deductions as a percentage of sales in Q2 2013 compared to Q2 2012. 
INTUNIV - ADHD 
The strong growth in INTUNIV product sales (up 31%) in Q2 2013 was
driven by both growth in US prescription demand (up 10%) and the effect of
price increases taken since Q2 2012. 
VPRIV - Gaucher disease 
VPRIV product sales were flat (up 1% on a CER basis) in Q2 2013,
reflecting the relatively strong quarterly sales seen in Q2 2012 which
benefited from higher US volumes and the timing of orders to Latin America.
The number of patients on therapy continues to grow. 
PENTASA - Ulcerative Colitis 
PENTASA product sales (up 15%) benefited from both price increases taken since
Q2 2012 and the impact of moderate stocking in Q2 2013 compared to a small
amount of pipeline destocking in Q2 2012. 
FIRAZYR - Hereditary Angioedema 
FIRAZYR product sales (up 56%) showed strong growth reflecting the
continuing global growth of the product, particularly in the US market. 
DERMAGRAFT - Diabetic Foot Ulcers 
DERMAGRAFT product sales grew by 21% compared to Q1 2013 but were
down 57% compared to Q2 2012. 
2. Royalties 
                                          Year on year growth 
                     Royalties to
Product                    Shire $M       Royalties            CER 
3TC® and ZEFFIX®   1.00      11.3            +7%               +8%
FOSRENOL®          1.00      10.8           -17%              -17%
ADDERALL XR        1.00      4.9            -81%              -81%
Other              1.00      9.3            +33%              +29%
Total              1.00      36.3           -36%              -35% 
Royalties from ADDERALL XR in Q2 2013 were significantly impacted
by both reduced sales volume and a lower royalty rate being payable to Shire
by Impax Laboratories, Inc. for its authorised generic product following the
launch of a new generic product in June 2012. 
3. Financial details 
Cost of product sales 


                                            % of                  % of
                                         product               product
                            Q2 2013        sales  Q2 2012        sales


                             $M                    $M
Cost of product sales (US     175.7          14%    152.5          13%
GAAP)
Depreciation                 (10.0)                 (7.0)
Cost of product sales (Non    165.7          13%    145.5          13%
GAAP) 
Cost of product sales as a percentage of product sales remained broadly
constant in Q2 2013 as compared to Q2 2012. 
Research and Development ("R&D") 


                                            % of                  % of
                                         product               product
                            Q2 2013        sales  Q2 2012        sales


                             $M                    $M
R&D (US GAAP)                 260.1          21%    238.6          21%
Impairment of intangible     (19.9)                (27.0)
assets
Depreciation                  (4.3)                 (6.4)
R&D (Non GAAP)                235.9          19%    205.2          18% 
Non GAAP R&D increased by $30.7 million, or 15%, due to the continued
investment in our R&D pipeline, primarily on non-ADHD programs for LDX, on
SPD602 for iron overload and the impact of development programs acquired
through business development in 2013. 
US GAAP R&D increased by $21.5 million, or 9%, a lower rate of increase than
on a Non GAAP basis primarily due to lower impairment charges of IPR&D
intangible assets acquired through Movetis N.V. ("Movetis"), compared to Q2
2012. 
Selling, General and Administrative ("SG&A") 


                                            % of                  % of
                                         product               product
                               2013        sales     2012        sales


                             $M                    $M
SG&A (US GAAP)                457.6          37%    511.0          45%
Intangible asset             (45.8)                (51.0)
amortization
Legal and litigation costs    (5.3)                (35.9)
Depreciation                 (16.1)                (14.5)
SG&A (Non GAAP)               390.4          32%    409.6          36% 
Non GAAP SG&A decreased by $19.2 million, or 5%, due to our continuing focus
on simplifying our business and delivering efficient growth. 
US GAAP SG&A decreased by $53.4 million, or 10%, a higher rate of decrease
than on a Non GAAP basis primarily due to higher legal and litigation costs
incurred in Q2 2012, as compared to Q2 2013. 
Gain on sale of product rights 
For the three months to June 30, 2013 Shire recorded a gain on sale
of product rights of $4.5 million (2012: $3.6 million) following
re-measurement of the contingent consideration receivable from the divestment
of DAYTRANA®. 
Reorganization costs 
For the three months to June 30, 2013 Shire recorded reorganization
costs of $26.4 million (Q2 2012: $nil) primarily relating to the "One Shire"
reorganization as we transition to a new operating structure. The charges in
Q2 2013 primarily related to property costs arising from the decisions to not
relocate to a new site in Pennsylvania and to limit the site expansion in San
Diego to manufacturing facilities only. 
Integration and acquisition costs 
For the three months to June 30, 2013 Shire recorded integration and
acquisition costs of $17.4 million primarily associated with the acquisitions
of SARcode Biosciences Inc. ("SARcode") and Lotus Tissue Repair, Inc.
("Lotus") in addition to charges related to the change in fair value of
contingent consideration. In Q2 2012 integration and acquisition costs ($7.1
million) primarily related to the acquisition of FerroKin Biosciences, Inc.
("FerroKin") and integration of Advanced BioHealing Inc. ("ABH"). 
Interest expense 
For the three months to June 30, 2013 Shire incurred interest expense of $8.9
million (Q2 2012: $9.6 million). Interest expense in Q2 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 Q2 2013 was 23% (Q2
2012: 20%), and on a US GAAP basis the effective rate of tax was 22% (Q2 2012:
18%). 
The effective rate of tax in Q2 2013 on both a Non GAAP and US GAAP basis is
higher than the same period in 2012 due primarily to changes in both profit
mix and estimates of the amount of certain tax liabilities following the
finalisation of various tax returns. In addition, on a US GAAP basis, the
effective rate of tax is further increased by the impact of higher integration
and acquisition costs in Q2 2013 which are not deductible for tax purposes.
Our core Non GAAP tax rate guidance for 2013 remains at 18% to 20%. 
FINANCIAL INFORMATION 
TABLE OF CONTENTS 
                                                     Page 
Unaudited US GAAP Consolidated Balance Sheets              11 
Unaudited US GAAP Consolidated Statements of Income        12 
Unaudited US GAAP Consolidated Statements of Cash
Flows                                                      14 
Selected Notes to the Unaudited US GAAP Financial
Statements
(1) Earnings per share                                     16
(2) Analysis of revenues                                   17 
Non GAAP reconciliation                                    19 
Unaudited US GAAP financial position as of June 30, 2013
Consolidated Balance Sheets 


                                                    June 30,  December 31,
                                                        2013          2012


                                                      $M            $M
ASSETS
Current assets:
Cash and cash equivalents                            1,301.9       1,482.2
Restricted cash                                         17.6          17.1
Accounts receivable, net                               915.2         824.2
Inventories                                            492.2         436.9
Deferred tax asset                                     212.5         229.9
Prepaid expenses and other current assets              289.1         221.8 
Total current assets                                 3,228.5       3,212.1 
Non-current assets:
Investments                                             33.2          38.7
Property, plant and equipment ("PP&E"), net            953.1         955.8
Goodwill                                               611.6         644.5
Other intangible assets, net                         2,998.1       2,388.1
Deferred tax asset                                      44.5          46.5
Other non-current assets                                33.9          31.5 
Total assets                                         7,902.9       7,317.2 
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable and accrued expenses                1,456.7       1,501.5
Convertible bonds                                    1,100.0             -
Other current liabilities                              158.8         144.1 
Total current liabilities                            2,715.5       1,645.6 
Non-current liabilities:
Convertible bonds                                          -       1,100.0
Deferred tax liability                                 731.4         520.8
Other non-current liabilities                          624.5         241.6 
Total liabilities                                    4,071.4       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)                                 55.8          55.7
Additional paid-in capital                           3,024.1       2,981.5
Treasury stock: 14.5 million shares (2012: 10.7
million)                                             (476.9)       (310.4)
Accumulated other comprehensive income                  52.2          86.9
Retained earnings                                    1,176.3         995.5 
Total equity                                         3,831.5       3,809.2 
Total liabilities and equity                         7,902.9       7,317.2 
Unaudited US GAAP results for the three months and six months to June 30, 2013
Consolidated Statements of Income 


                             3 months to  3 months to  6 months to  6 months to
                                June 30,     June 30,     June 30,     June 30,
                                    2013         2012         2013         2012


                                  $M           $M           $M           $M
Revenues:
Product sales                    1,230.2      1,147.7      2,346.9      2,254.6
Royalties                           36.3         56.3         74.8        112.6
Other revenues                       8.0          3.8         14.7         12.4
Total revenues                   1,274.5      1,207.8      2,436.4      2,379.6 
Costs and expenses:
Cost of product sales              175.7        152.5        331.6        310.9
R&D(1)                             260.1        238.6        484.3        458.9
SG&A(1)                            457.6        511.0        896.3      1,011.0
Goodwill impairment charge             -            -        198.9            -
Gain on sale of product
rights                             (4.5)        (3.6)       (11.0)       (10.8)
Reorganization costs                26.4            -         43.9            -
Integration and acquisition
costs                               17.4          7.1         21.5         12.4
Total operating expenses           932.7        905.6      1,965.5      1,782.4 
Operating income                   341.8        302.2        470.9        597.2 
Interest income                      0.5          0.6          1.2          1.4
Interest expense                   (8.9)        (9.6)       (18.0)       (19.8)
Other (expense)/income, net        (1.4)        (1.8)        (2.5)          0.1
Total other expense, net           (9.8)       (10.8)       (19.3)       (18.3) 
Income before income taxes
and equity in
earnings/(losses) of equity
method investees                   332.0        291.4        451.6        578.9
Income taxes                      (74.4)       (53.0)      (129.6)      (103.0)
Equity in earnings/(losses)
of equity method investees,
net of taxes                         0.5        (0.6)          0.9          0.3
Net income                         258.1        237.8        322.9        476.2 
(1) R&D includes intangible asset impairment charges of $19.9 million for the
three months to June 30, 2013 (2012: $27.0 million) and $19.9 million for the
six months to June 30, 2013 (2012: $27.0 million). SG&A costs include
amortization and impairment charges of intangible assets relating to
intellectual property rights acquired of $45.8 million for the three months to
June 30, 2013 (2012: $51.0 million) and $91.7 million for the six months to
June 30, 2013 (2012: $96.6 million). 
Unaudited US GAAP results for the three months and six months to June 30, 2013
Consolidated Statements of Income (continued) 


                             3 months to  3 months to  6 months to  6 months to
                                June 30,     June 30,     June 30,     June 30,


                                2013         2012         2013         2012 
Earnings per Ordinary Share
- basic                            46.9c        42.7c        58.6c        85.8c 
Earnings per ADS - basic          140.7c       128.1c       175.8c       257.4c 
Earnings per Ordinary Share
- diluted                          45.3c        41.3c        57.5c        82.8c 
Earnings per ADS - diluted        135.9c       123.9c       172.5c       248.4c 
Weighted average number of
shares: 
                            Millions     Millions     Millions     Millions 
Basic                              549.6        557.0        550.5        555.2
Diluted                            586.0        594.9        587.5        594.8 
Unaudited US GAAP results for the three months and six months to June 30, 2013
Consolidated Statements of Cash Flows 
                                                               3 months to 
June 30,    6 months to June 30, 


                                                                        2013    
    2012       2013         2012
                                                                          $M    


  $M         $M           $M
CASH FLOWS FROM OPERATING ACTIVITIES: 
Net income                                                             258.1     
237.8      322.9        476.2
Adjustments to reconcile net income to net cash provided by
operating activities: 


                         Depreciation and amortization                  76.2    
    79.4      151.2        152.4
                         Share based compensation                       19.8    
    21.5       36.4         43.4
                         Impairment of intangible assets                19.9    
    27.0       19.9         27.0
                         Goodwill impairment charge                        -    
       -      198.9            -


                     Gain on sale of product rights                (4.5)     
(3.6)     (11.0)       (10.8) 
                     Other                                          19.0     
 2.7       20.9          4.3
Movement in deferred taxes                                              19.8     
(3.3)       21.2       (24.1)
Equity in (earnings)/losses of equity method investees                 (0.5)     
 0.6      (0.9)        (0.3)
Changes in operating assets and liabilities: 


                         (Increase)/decrease in accounts
                         receivable                                   (51.3)    
    87.6    (102.6)         22.4
                         (Decrease)/increase in sales deduction


                     accrual                                       (4.4)    
  (26.9)       40.0         27.6 
                     Increase in inventory                        (24.8)    
  (42.0)     (53.9)       (67.0) 


                         (Increase)/decrease in prepayments and
                         other assets                                  (4.7)    
    15.0     (66.5)         32.1
                         (Decrease)/increase in accounts payable
                         and other liabilities                        (67.2)    


65.1    (160.7)         34.7
Returns on investment from joint venture                                 3.2     
 4.9        3.2          4.9
Net cash provided by operating activities(A)                           258.6     
465.8      419.0        722.8
CASH FLOWS FROM INVESTING ACTIVITIES: 
Movements in restricted cash                  1.7      0.5    (0.5)      6.2
Purchases of subsidiary undertakings and
businesses, net of cash acquired          (150.6)   (97.0)  (227.8)   (97.0)
Purchases of PP&E                          (17.7)   (32.7)   (65.0)   (64.4)
Purchases of intangible assets                  -   (21.5)        -   (43.5)
Proceeds received on sale of product
rights                                        5.5      4.8     10.3     10.4
Other                                         3.1      0.2      3.7      8.4
Net cash used in investing activities(B)  (158.0)  (145.7)  (279.3)  (179.9) 
Unaudited US GAAP results for the three months and six months to June 30, 2013
Consolidated Statements of Cash Flows (continued) 
                                       3 months to June 30,    6 months to 
June 30, 


                                                2013        2012       2013     
    2012
                                                  $M          $M         $M     


  $M 
CASH FLOWS FROM FINANCING ACTIVITIES: 
Payments to acquire shares under the
share buy-back program                       (107.1)           -    (177.7)      
   -
Payment of dividend                           (79.2)      (70.7)     (79.2)     
  (70.7)
Payments to acquire shares by the
Employee Benefit Trust ("EBT")                (50.0)      (10.7)     (50.0)     
  (10.7)
Excess tax benefit associated with
exercise of stock options                        1.7         0.4        6.1      
35.2
Contingent consideration payments              (2.8)           -      (8.8)      
   -
Other                                          (6.8)       (3.0)      (7.5)      
(2.4)
Net cash used in financing activities(C)     (244.2)      (84.0)    (317.1)     
  (48.6)
Effect of foreign exchange rate changes
on cash and cash equivalents (D)               (5.2)       (2.8)      (2.9)      
(1.6)
Net (decrease)/increase in cash and cash
equivalents(A) +(B) +(C) +(D)                (148.8)       233.3    (180.3)      
492.7
Cash and cash equivalents at beginning of
period                                       1,450.7       879.4    1,482.2      
620.0
Cash and cash equivalents at end of
period                                       1,301.9     1,112.7    1,301.9     
 1,112.7 
Unaudited US GAAP results for the three months and six months to June 30, 2013 
Selected Notes to the Financial Statements 
(1) Earnings Per Share ("EPS") 


                             3 months to  3 months to  6 months to  6 months to
                                June 30,     June 30,     June 30,     June 30,
                                    2013         2012         2013         2012


                                  $M           $M           $M           $M 
Numerator for basic EPS            258.1        237.8        322.9        476.2
Interest on convertible
bonds, net of tax                    7.5          7.8         15.1         16.2 
Numerator for diluted EPS          265.6        245.6        338.0        492.4 
Weighted average number of
shares: 
                            Millions     Millions     Millions     Millions
Basic(1)                           549.6        557.0        550.5        555.2
Effect of dilutive shares:
Share based awards to
employees(2)                         2.6          4.4          3.3          6.1
Convertible bonds 2.75% due
2014(3)                             33.8         33.5         33.7         33.5 
Diluted                            586.0        594.9        587.5        594.8 
(1) Excludes shares purchased by the EBT and under the share buy-back program
and presented by Shire as treasury stock. 
(2) Calculated using the treasury stock method. 
(3) Calculated using the "if converted" method. 
The share equivalents not included in the calculation of the diluted weighted
average number of shares are shown below: 


                             3 months to  3 months to  6 months to  6 months to
                                June 30,     June 30,     June 30,     June 30,
                                    2013         2012         2013         2012


                            Millions     Millions     Millions     Millions
Share based awards to
employees(1)                        11.0          6.3          9.1          4.5 
(1) 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. 
Unaudited US GAAP results for the three months to June 30, 2013 
Selected Notes to the Financial Statements 
(2) Analysis of revenues 
3 months to June 30,        2013       2012       2013        2013 
                                                 %  % of total 
                          $M         $M     change     revenue
Net product sales:
VYVANSE                    300.3      266.2        13%         24%
ELAPRASE                   149.2      122.2        22%         12%
LIALDA/MEZAVANT            137.5       94.1        46%         11%
REPLAGAL                   114.1      123.2        -7%          9%
ADDERALL XR                112.3      133.9       -16%          9%
INTUNIV                     90.4       69.1        31%          7%
VPRIV                       82.5       82.7         0%          6%
PENTASA                     73.6       63.9        15%          6%
FIRAZYR                     49.5       31.7        56%          4%
FOSRENOL                    42.1       43.2        -3%          3%
XAGRID®                     26.5       25.5         4%          2%
DERMAGRAFT                  22.3       52.4       -57%          2%
Other product sales         29.9       39.6       -24%          2%
Total product sales      1,230.2    1,147.7         7%         97% 
Royalties:
3TC and ZEFFIX              11.3       10.6         7%          1%
FOSRENOL                    10.8       13.0       -17%          1%
ADDERALL XR                  4.9       25.7       -81%         <1%
Other                        9.3        7.0        33%          1%
Total royalties             36.3       56.3       -36%          3% 
Other revenues               8.0        3.8       111%         <1% 
Total revenues           1,274.5    1,207.8         6%        100% 
Unaudited US GAAP results for the six months to June 30, 2013 
Selected Notes to the Financial Statements 
(2) Analysis of revenues 
6 months to June 30,        2013       2012       2013        2013 
                                                 %  % of total 
                          $M         $M     change     revenue
Net product sales:
VYVANSE                    598.7      526.2        14%         24%
ELAPRASE                   263.5      247.8         6%         11%
LIALDA/MEZAVANT            238.0      184.1        29%         10%
REPLAGAL                   228.1      257.6       -11%          9%
ADDERALL XR                212.1      245.3       -14%          9%
INTUNIV                    168.1      137.6        22%          7%
VPRIV                      164.1      154.4         6%          7%
PENTASA                    144.6      129.7        11%          6%
FIRAZYR                     91.2       51.4        77%          4%
FOSRENOL                    84.4       88.7        -5%          3%
XAGRID                      49.9       48.7         2%          2%
DERMAGRAFT                  40.8      101.2       -60%          2%
Other product sales         63.4       81.9       -23%          2%
Total product sales      2,346.9    2,254.6         4%         96% 
Royalties:
3TC and ZEFFIX              23.8       24.2        -2%          1%
FOSRENOL                    19.8       23.0       -14%          1%
ADDERALL XR                 13.0       51.0       -75%         <1%
Other                       18.2       14.4        26%          1%
Total royalties             74.8      112.6       -34%          3% 
Other revenues              14.7       12.4        19%          1% 
Total revenues           2,436.4    2,379.6         2%        100% 
Unaudited results for the three months to June 30, 2013 
Non GAAP reconciliation 
3 months to June 30, 2013        US GAAP             Adjustments             
Non GAAP 
                                           (a)    (b)    (c)   (d)    (e) 
                                  $M      $M     $M     $M    $M     $M      
$M
Total revenues                   1,274.5       -      -      -     -      -   
1,274.5 
Costs and expenses:
Cost of product sales              175.7       -      -      -     - (10.0)     
165.7
R&D                                260.1  (19.9)      -      -     -  (4.3)     
235.9
SG&A                               457.6  (45.8)      -      - (5.3) (16.1)     
390.4
Gain on sale of product rights     (4.5)       -      -    4.5     -      -      
-
Reorganization costs                26.4       -      - (26.4)     -      -      
-
Integration and acquisition
costs                               17.4       - (17.4)      -     -      -      
-
Depreciation                           -       -      -      -     -   30.4     
 30.4
Total operating expenses           932.7  (65.7) (17.4) (21.9) (5.3)      -     
822.4 
Operating income                   341.8    65.7   17.4   21.9   5.3      -     
452.1 
Interest income                      0.5       -      -      -     -      -     
  0.5
Interest expense                   (8.9)       -      -      -     -      -     
(8.9)
Other expense, net                 (1.4)       -      -      -     -      -     
(1.4)
Total other expense, net           (9.8)       -      -      -     -      -     
(9.8)
Income before income taxes and
equity in earnings of equity
method investees                   332.0    65.7   17.4   21.9   5.3      -     
442.3
Income taxes                      (74.4)  (14.5)  (1.6)  (8.9) (1.9)      -   
(101.3)
Equity in earnings of equity
method investees, net of tax         0.5       -      -      -     -      -     
  0.5
Net income                         258.1    51.2   15.8   13.0   3.4      -     
341.5
Impact of convertible debt, net
of tax                               7.5       -      -      -     -      -     
  7.5
Numerator for diluted EPS          265.6    51.2   15.8   13.0   3.4      -     
349.0
Weighted average number of
shares (millions) - diluted        586.0       -      -      -     -      -     
586.0
Diluted earnings per ADS          135.9c   26.2c   8.2c   6.7c  1.8c      -    
178.8c 
The following items are included in Adjustments: 
(a) Amortization and asset impairments: Impairment of IPR&D intangible assets
acquired through Movetis ($19.9 million), amortization of intangible assets
relating to intellectual property rights acquired ($45.8 million), and tax
effect of adjustments; 
(b) Acquisition and integration activities: Costs primarily associated with
the acquisitions of SARcode and Lotus ($5.5 million), charges related to the
change in fair value of deferred contingent consideration ($11.9 million), and
tax effect of adjustments; 
(c) Divestments, reorganizations and discontinued operations: Re-measurement
of DAYTRANA contingent consideration to fair value ($4.5 million), costs
relating to the collective dismissal and closure of Shire's facility at
Turnhout, Belgium and the "One Shire" reorganization announced at Q1 2013
($26.4 million), and tax effect of adjustments; 
(d) Legal and litigation costs: Costs related to litigation, government
investigations, other disputes and external legal costs ($5.3 million), and
tax effect of adjustments; and 
(e) Depreciation reclassification: Depreciation of $30.4 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 June 30, 2012 
Non GAAP reconciliation 
3 months to June 30, 2012        US GAAP             Adjustments             
Non GAAP 
                                           (a)   (b)    (c)    (d)    (e) 
                                  $M      $M    $M     $M     $M     $M      
$M
Total revenues                   1,207.8       -     -      -      -      -   
1,207.8 
Costs and expenses:
Cost of product sales              152.5       -     -      -      -  (7.0)     
145.5
R&D                                238.6  (27.0)     -      -      -  (6.4)     
205.2
SG&A                               511.0  (51.0)     -      - (35.9) (14.5)     
409.6
Gain on sale of product rights     (3.6)       -     -    3.6      -      -      
-
Integration and acquisition
costs                                7.1       - (7.1)      -      -      -      
-
Depreciation                           -       -     -      -      -   27.9     
 27.9
Total operating expenses           905.6  (78.0) (7.1)    3.6 (35.9)      -     
788.2 
Operating income                   302.2    78.0   7.1  (3.6)   35.9      -     
419.6 
Interest income                      0.6       -     -      -      -      -     
  0.6
Interest expense                   (9.6)       -     -      -      -      -     
(9.6)
Other expense, net                 (1.8)       -     -      -      -      -     
(1.8)
Total other expense, net          (10.8)       -     -      -      -      -    
(10.8)
Income before income taxes and
equity in earnings of equity
method investees                   291.4    78.0   7.1  (3.6)   35.9      -     
408.8
Income taxes                      (53.0)  (14.5) (2.4)      - (13.0)      -    
(82.9)
Equity in losses of equity
method investees, net of tax       (0.6)       -     -      -      -      -     
(0.6)
Net income                         237.8    63.5   4.7  (3.6)   22.9      -     
325.3
Impact of convertible debt, net
of tax                               7.8       -     -      -      -      -     
  7.8
Numerator for diluted EPS          245.6    63.5   4.7  (3.6)   22.9      -     
333.1
Weighted average number of
shares (millions) - diluted        594.9       -     -      -      -      -     
594.9
Diluted earnings per ADS          123.9c   32.1c  2.4c (1.8c)  11.4c      -    
168.0c 
The following items are included in Adjustments: 
(a) Amortization and asset impairments: Impairment of IPR&D intangible assets
acquired through Movetis ($27.0 million), amortization of intangible assets
relating to intellectual property rights acquired ($51.0 million), and tax
effect of adjustments; 
(b) Acquisition and integration activities: Costs associated with the
acquisition of FerroKin and the integration of ABH ($5.0 million), charges
related to the change in fair value of deferred contingent consideration ($2.1
million), and tax effect of adjustments; 
(c) Divestments, reorganizations and discontinued operations: Re-measurement
of DAYTRANA contingent consideration to fair value ($3.6 million); 
(d) Legal and litigation costs: Costs related to the settlement of litigation
and external legal costs ($35.9 million), and tax effect of adjustments; and 
(e) Depreciation reclassification: Depreciation of $27.9 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 six months to June 30, 2013 
Non GAAP reconciliation 
6 months to June 30, 2013        US GAAP             Adjustments              
Non GAAP 


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


$M
Total revenues                   2,436.4        -      -      -     -      -   
2,436.4 
Costs and expenses:
Cost of product sales              331.6        -      -      -     - (17.8)    
 313.8
R&D                                484.3   (19.9)      -      -     -  (8.9)    
 455.5
SG&A                               896.3   (91.7)      -      - (9.5) (32.8)    
 762.3
Goodwill impairment charge         198.9  (198.9)      -      -     -      -     
 -
Gain on sale of product rights    (11.0)        -      -   11.0     -      -     
 -
Reorganization costs                43.9        -      - (43.9)     -      -     
 -
Integration and acquisition
costs                               21.5        - (21.5)      -     -      -     
 -
Depreciation                           -        -      -      -     -   59.5    
  59.5
Total operating expenses         1,965.5  (310.5) (21.5) (32.9) (9.5)      -   
1,591.1 
Operating income                   470.9    310.5   21.5   32.9   9.5      -    
 845.3 
Interest income                      1.2        -      -      -     -      -     
1.2
Interest expense                  (18.0)        -      -      -     -      -    
(18.0)
Other expense, net                 (2.5)        -      -      -     -      -    
 (2.5)
Total other expense, net          (19.3)        -      -      -     -      -    
(19.3)
Income before income taxes and
equity in earnings of equity
method investees                   451.6    310.5   21.5   32.9   9.5      -    
 826.0
Income taxes                     (129.6)   (29.1)  (2.1)  (8.9) (3.4)      -   
(173.1)
Equity in earnings of equity
method investees, net of tax         0.9        -      -      -     -      -     
0.9
Net income                         322.9    281.4   19.4   24.0   6.1      -    
 653.8
Impact of convertible debt, net
of tax                              15.1        -      -      -     -      -    
  15.1
Numerator for diluted EPS          338.0    281.4   19.4   24.0   6.1      -    
 668.9
Weighted average number of
shares (millions) - diluted        587.5        -      -      -     -      -    
 587.5
Diluted earnings per ADS          172.5c   143.8c  10.0c  12.3c  3.1c      -    
341.7c 
The following items are included in Adjustments: 
(a) Amortization and asset impairments: Impairment of IPR&D intangible assets
acquired with Movetis ($19.9 million), impairment of goodwill relating to
Shire's Regenerative Medicine Business ($198.9 million), amortization of
intangible assets relating to intellectual property rights acquired ($91.7
million), and tax effect of adjustments; 
(b) Acquisitions and integration activities: Costs primarily associated with
the acquisitions of SARcode and Lotus ($7.8 million), charges related to the
change in fair value of deferred contingent consideration ($13.7 million), and
tax effect of adjustments; 
(c) Divestments, reorganizations and discontinued operations: Re-measurement
of DAYTRANA contingent consideration to fair value ($11.0 million), costs
relating to the collective dismissal and closure of Shire's facility at
Turnhout, Belgium and the "One Shire" reorganization announced at Q1 2013
($43.9 million), and tax effect of adjustments; 
(d) Legal and litigation costs: Costs related to litigation, government
investigations, other disputes and external legal costs ($9.5 million), and
tax effect of adjustments; and 
(e) Depreciation reclassification: Depreciation of $59.5 million included in
Cost of product sales, R&D costs and SG&A costs for US GAAP separately
disclosed for the presentation of Non GAAP earnings. 
Unaudited results for the six months to June 30, 2012 
Non GAAP reconciliation 
6 months to June 30, 2012        US GAAP              Adjustments              
Non GAAP 


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


 $M
Total revenues                   2,379.6        -      -      -      -      -   
2,379.6 
Costs and expenses:
Cost of product sales              310.9        -      -      -      - (14.2)   
  296.7
R&D                                458.9   (27.0) (23.0)      -      - (12.8)   
  396.1
SG&A                             1,011.0   (96.6)      -      - (35.9) (28.1)   
  850.4
Loss on sale of product rights    (10.8)        -      -   10.8      -      -    
  -
Integration and acquisition
costs                               12.4        - (12.4)      -      -      -    
  -
Depreciation                           -                             -   55.1    
55.1
Total operating expenses         1,782.4  (123.6) (35.4)   10.8 (35.9)      -   
1,598.3 
Operating income                   597.2    123.6   35.4 (10.8)   35.9      -   
  781.3 
Interest income                      1.4        -      -      -      -      -    
1.4
Interest expense                  (19.8)        -      -      -      -      -   
 (19.8)
Other income, net                    0.1        -      -      -      -      -    
0.1
Total other expense, net          (18.3)        -      -      -      -      -   
 (18.3)
Income before income taxes and
equity in earnings of equity
method investees                   578.9    123.6   35.4 (10.8)   35.9      -   
  763.0
Income taxes                     (103.0)   (27.7)  (9.0)      - (13.0)      -   
(152.7)
Equity in earnings of equity
method investees, net of tax         0.3        -      -      -      -      -    
0.3
Net income                         476.2     95.9   26.4 (10.8)   22.9      -   
  610.6
Impact of convertible debt, net
of tax                              16.2        -      -      -      -      -    
16.2
Numerator for diluted EPS          492.4     95.9   26.4 (10.8)   22.9      -   
  626.8
Weighted average number of
shares (millions) - diluted        594.8        -      -      -      -      -   
  594.8
Diluted earnings per ADS          248.4c    48.3c  13.2c (5.4c)  11.7c      -   
 316.2c 
The following items are included in Adjustments: 
(a) Amortization and asset impairments: Impairment of IPR&D intangible assets
acquired through Movetis ($27.0 million), amortization of intangible assets
relating to intellectual property rights acquired ($96.6 million), and tax
effect of adjustments; 
(b) Acquisitions and integration activities: Up-front payments made to Sangamo
Biosciences Inc. and for the acquisition of the US rights to prucalopride
(marketed in certain countries in Europe as RESOLOR) ($23.0 million), costs
associated with acquisition of FerroKin and the integration of ABH ($10.3
million), charges related to the change in fair value of deferred contingent
consideration ($2.1 million), and tax effect of adjustments; 
(c) Divestments, reorganizations and discontinued operations: Re-measurement
of DAYTRANA contingent consideration to fair value ($10.8 million); 
(d) Legal and litigation costs: Costs related to the settlement of litigation
and external legal costs ($35.9 million), and tax effect of adjustments; and 
(e) Depreciation reclassification: Depreciation of $55.1 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 and six months to June 30, 2013 
Non GAAP reconciliation 
The following table reconciles US GAAP net cash provided by
operating activities to Non GAAP cash generation: 


                            3 months to June 30,    6 months to June 30,
                                2013         2012       2013         2012


                              $M           $M         $M           $M
Net cash provided by
operating activities           258.6        465.8      419.0        722.8
Tax and interest payments,
net                            115.4         54.4      212.5         84.2
Up-front payments in
respect of in-licensed and
acquired products                  -            -          -         23.0
Non GAAP cash generation       374.0        520.2      631.5        830.0
The following table reconciles US GAAP net cash provided by
operating activities to Non GAAP free cash flow: 


                            3 months to June 30,    6 months to June 30,
                                2013         2012       2013         2012


                              $M           $M         $M           $M
Net cash provided by
operating activities           258.6        465.8      419.0        722.8
Up-front payments in
respect of in-licensed and
acquired products                  -            -          -         23.0
Capital expenditure           (17.7)       (32.7)     (65.0)       (64.4)
Non GAAP free cash flow        240.9        433.1      354.0        681.4
Non GAAP net cash comprises: 


                                         June 30,  December 31,
                                             2013          2012


                                           $M            $M
Cash and cash equivalents                 1,301.9       1,482.2 
Convertible bonds                       (1,100.0)     (1,100.0)
Other debt                                  (8.9)         (9.3)
Non GAAP net cash                           193.0         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, reorganizations and discontinued operations: 
- Gains and losses on the sale of non-core assets; 
- Costs associated with restructuring and reorganization 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 19 to 23. 
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 the six months to June 30, 2013 were $1.55:£1.00
and $1.31:€1.00 (2012: $1.58:£1.00 and $1.31:€1.00). Average exchange 
rates
for Q2 2013 were $1.53:£1.00 and $1.30:€1.00 (2012: $1.59:£1.00 and
$1.30:€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 Therapeutics,
LLC. 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 and the Quarterly Report on Form 10-Q for the three months ended March
31, 2013. 
END 
-0- Jul/25/2013 11:00 GMT
 
 
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