Shire Q3 Profit Up 72%, Beats View; Lifts 2014 Earnings Outlook

(RTTNews) - Irish drug company Shire Plc (SHP.L, SHPG) on Friday reported a 72 percent surge in profit for the third quarter from last year, helped by strong revenue growth. Adjusted earnings per share for the quarter beat analysts' estimates. Looking ahead, the company once again lifted its earnings growth forecast for fiscal 2014.

Flemming Ornskov, Shire's Chief Executive Officer, said, "We have seen strong sales performance across our portfolio with all of our top ten products delivering double digit growth in the quarter. Rare Diseases, our largest business unit, grew by 66%, aided by our acquisition of ViroPharma."

For the third quarter, the company's net income climbed to $479.7 million from $278.2 million in the previous year. Earnings per ordinary share increased to 81.7 cents from 50.7 cents last year.

Earnings per American Depository Share or ADS for the quarter increased to $2.43 from $1.46 in the year-ago period.

Adjusted earnings per ADS for the quarter were $2.93, compared to $1.83 in the same period last year. On average, 13 analysts polled by Thomson Reuters expected the company to report earnings of $2.48 per share for the quarter. Analysts' estimates typically exclude special items.

Total revenues for the quarter grew 32 percent to $1.60 billion from $1.21 billion in the same period last year. Analysts had a consensus revenue estimate of $1.46 billion for the quarter.

Product sales for the quarter increased 33 percent from the year-ago period to $1.55 billion and represented 97 percent of total revenues.

Product sales for the quarter includes $153 million for products acquired with ViroPharma Inc., primarily $145 million from Cinryze. The inclusion of ViroPharma contributed 14 percent to reported product sales growth in the quarter. Excluding products acquired with ViroPharma, product sales for the quarter grew 19 percent.

Looking ahead to the fourth quarter, Shire anticipates product sales to be lower than it has delivered so far in the year, as the preceding third quarter benefited from Rare Diseases sales to customers who order less frequently, and as the company laps against stronger comparatives in the fourth quarter.

For fiscal 2014, Shire now forecasts adjusted earnings per ADS to grow in the high thirty percent range, up from the prior outlook for growth in the low-to-mid thirty percent range.

The company now projects product sales growth for the full year 2014 in the low twenty percent range, compared to previous guidance of high teens growth.

In early October, U.S. drug maker AbbVie, Inc. (ABBV) agreed to terminate its proposed $54 billion takeover deal for Shire, after its board withdrew support and recommendation for the deal. The move came amid the proposed changes in tax rules in the U.S.

In London, Shire shares are gaining 146 pence or 3.75 percent, and trading at 4,041 pence.

On the Nasdaq, SHPG is trading at $194.88, up $9.90 or 5.35 percent on a volume of 1.45 million shares.