Oct. 24 (Bloomberg) -- Shire Plc rose the most in seven years after increasing its full-year profit forecast as a reorganization of the U.K. drugmaker led to lower costs.
Shire soared 9.3 percent to close at a record 2,760 pence in London, the biggest intraday advance since October 2006, giving the U.K. company a market value of 15.3 billion pounds ($24.8 billion).
The percentage increase in profit excluding some items this year will be in the mid to high teens because the company sees benefits from its cost cutting, Shire said today in a statement. Previously the company forecast “double-digit” growth. Since taking over in May, Chief Executive Officer Flemming Ornskov has attempted to unite the separate drug units and trim overlap.
“The clear message is unappreciated operating leverage,” Peter Welford, an analyst at Jefferies International Ltd., said in a report to clients. The results are an “important explicit outline for lower future spend.”
Revenue for the company’s top selling drug, Vyvanse for attention deficit hyperactivity disorder, increased 21 percent to $299 million. Shire is based in Dublin and has executive offices in Basingstoke, England.
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