Shire replaces CEO as profits miss forecasts

City A.M. Reporter
PHARMACEUTICAL group Shire said yesterday its chief executive Angus Russell would be replaced by Flemming Ornskov, an executive from Bayer, to help steer the acquisitive company to continued growth.

The change in management came after the firm missed expectations for the third quarter by reporting non-GAAP diluted earnings per ADS (American Depositary Share) of $1.36, up six per cent, on revenue of $1.1bn, up one per cent.

The company, whose drugs portfolios include treatments for hyperactivity and rare diseases, said it remained on track to meet its target for double-digit earnings growth for the year.

Russell said it was the “right time to move on” after Shire had been transformed from a “little company reformulating old drugs” into an leader in areas like hyperactivity and rare diseases during his 13-year tenure at the group, the last five as chief executive.

Ornskov will take over on 30 April after a period of transition.