Shire Cuts Full-Year Sales Forecast as Revenue Misses Estimates
Shire Plc (SHP), the world’s largest maker of attention-deficit drugs, reduced its revenue forecast for the year after sales in the quarter were lower than expected.
Shire said it expects sales to grow by a percentage in the mid-to-high single digits, compared with an earlier forecast of low double-digits. Sales in the quarter were $1.16 billion, missing the average analyst estimate of $1.21 billion, Dublin- based Shire said in a statement today.
“Shire’s strategic priorities are to grow sales of our existing portfolio and to bring new innovative treatments to market through both research and development and business development,” Flemming Ornskov, who took over this week as chief executive officer from Angus Russell after a four-month transition period, said in the statement.
Shire’s shares fell 2.5 percent to 1,969 pence as of 12:13 p.m. in London, giving the company a market value of 10.9 billion pounds ($17 billion). Before today, the stock had gained 0.7 percent in the past year, including reinvested dividends, compared with a 32 percent advance in the Bloomberg Europe Pharmaceuticals Index of 18 companies.
Sales of Vyvanse, the company’s top-selling drug, climbed 15 percent to $298 million. Shire said yesterday the product won U.S. regulatory approval as a treatment for children age 6 and older who have attention deficit hyperactivity disorder. Vyvanse was previously approved for adults.
Earnings excluding some items rose to $1.63 per American depositary receipt from $1.48 a year earlier, Analysts predicted profit of $1.57 per ADS, the average of 10 estimates compiled by Bloomberg.
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