SHIRE, the acquisitive drugmaker buying Belgium’s Movetis, beat second-quarter expectations as its rare disease franchise capitalised on production woes at US rival Genzyme.
The strong performance prompted the UK company to increase its full-year forecast and chief executive Angus Russell said he now expected underlying 2010 earnings to grow 15 percent from 2009.
Shire’s drugs for hyperactivity also performed better than expected, as sales of Vyvanse gathered pace, offsetting pressure on former blockbuster Adderall XR from generic competition.
Its second-quarter profit jumped to $160.5m (£101m) from $44.1m in the year-ago period. Total revenue climbed to $849.4m, from $629.7m last year, a result of increased product sales and higher royalties.
The firm posted non-GAAP earnings per American depository share of $1.03 on 35 per cent higher revenue of $849m and said earnings would trend towards $4.00 for the full year.
Shire agreed to buy Movetis for €428m (£354m), including its €100m cash pile, on Tuesday, bolstering its gastrointestinal business, the smallest of its three major franchises.
Shire has been quick to take advantage of Genzyme’s problems, with its Fabry disease drug Replagal taking share from Genzyme’s Fabrazyme, and its Gaucher medicine Vpriv replacing Cerezyme. Fabry disease is one where the sufferer has trouble breaking down fat in the body.
FAST FACTS | SHIRE
Shire’s second-quarter profit jumped to $160.5m (£101m) from $44.1m in the year-ago period.
Replagal sales were up 84 per cent to $82m (£51.6m) during the second-quarter.