July 25 (Bloomberg) -- Shire Plc, the world’s biggest maker of drugs for attention deficit disorder, posted a 7.6 percent increase in second-quarter profit, beating analyst estimates, as the market widened for its top-seller, Vyvanse. The shares gained the most in more than four years.
Earnings excluding some items climbed to $452 million, or $1.79 per American depositary share, from $420 million, or $1.68, a year earlier, Shire, which has management offices in Basingstoke, England, said today in a statement. Analysts predicted $1.64 per ADS, according to the average of 12 estimates compiled by Bloomberg.
Shire reiterated a forecast for percentage growth in product sales this year to be in the mid-to-high single digits. Earnings will increase by double digits, the company said.
“The overall take is good and the guidance for EPS is higher than consensus, which has got the market excited,” Guillaume van Renterghem, an analyst at UBS AG in London, said by phone.
Since taking over in May, Chief Executive Officer Flemming Ornskov has boosted the company’s sales force in anticipation of a growing market for Vyvanse, a treatment for attention deficit hyperactivity disorder. Shire seeks to add 50 out of a potential 150 planned hires to cope with the demand. The company expects next year to apply for U.S. approval for the pill to treat binge-eating disorder, Ornskov said today on a call with reporters.
The stock rose 5.5 percent to close at 2,339 pence in London, the steepest gain since March 2009, boosting market value to 12.9 billion pounds ($19.8 billion). Before today, the stock had gained 25 percent, including reinvested dividends, since Oct. 25 when Shire said Ornskov would succeed Angus Russell.
Revenue, which includes royalties and product sales, climbed 6 percent to $1.28 billion, beating the average estimate of $1.21 billion.
Vyvanse sales climbed 13 percent to $300 million.
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