Shire Plc (SHP) reported a 20 percent increase in first-quarter earnings per share as doctors prescribed more of the Vyvanse and Intuniv attention-deficit drugs.
First-quarter earnings excluding some items were $1.48 per American depositary receipt, compared with $1.23 a year earlier, Shire said today in a statement. Earnings missed the average estimate of $1.49 per depositary receipt from 12 analysts surveyed by Bloomberg.
The U.K. maker of the Adderall hyperactivity pill has been benefiting from an expansion of the market for drugs to treat attention deficit hyperactivity disorder. The company has been widening the use of Vyvanse since the pill won U.S. approval to treat children ages 6 to 12 in 2007. Vyvanse is now also cleared to treat adolescents and adults with the disorder. Shire said in a separate statement that Vyvanse met goals of a trial of patients with binge-eating disorder.
“Vyvanse and Intuniv are beneficiaries” of the expanding U.S. market for such treatments, Citigroup Inc. analysts wrote in a note to clients on April 19. “These trends will continue during 2012, we believe, as the ADHD market benefits from increased penetration of the adult patient population group.”
Shire, based in Dublin with management offices in Basingstoke, England, said sales climbed 21 percent to $1.17 billion.
Sales of Vyvanse increased 29 percent to $260 million, while Intuniv brought in $68.5 million. The drug’s revenue will probably exceed $1 billion this year, Shire said. Adderall XR sales were $111.4 million.
Shire shares fell 0.5 percent to 1,993 pence as of 12:12 p.m. in London. The stock has declined 11 percent this year.
Shire repeated a warning in February that 2012 gross margins would be “marginally lower,” reflecting costs from the $750 million acquisition of Advanced BioHealing Inc. Research, sales and administrative costs are expected rise between 12 percent to 14 percent higher than those in 2011, Shire said today.
Shire has faced several setbacks in the quarter. The company in March dropped an application to gain Food and Drug Administration approval for Fabry disease therapy Replagal, leading one analyst to cut his peak sales forecast for the drug by $95 million. Last month, Shire’s Lialda for ulcerative colitis failed in a trial that would have expanded its use to new patients.
The company was also expecting U.S. approval by the end of the first quarter for a new plant outside of Boston that would have expanded capacity for the Vpriv treatment for Gaucher disease. The FDA sent Shire a complete response letter, and the company is working with the agency to address remaining questions.
Revenue from Replagal rose 28 percent to $134.4 million, beating an average estimate of $124.8 million. Sales of Vpriv climbed 22 percent to $71.7 million.
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