Shire delivers a strong start to 2014 and increases full year guidance
May 1, 2014 – Shire (LSE: SHP, NASDAQ: SHPG) announces unaudited results for the three months to March 31, 2014.
Financial Highlights Q1 2014 Growth(1)
Product sales $1,308 million +19%
Total revenues $1,347 million +18%
Non GAAP operating income $591 million +40%
US GAAP operating income from continuing operations $307 million -15%
Non GAAP diluted earnings per ADS $2.36 +38%
US GAAP diluted earnings per ADS $1.17 +218%
Non GAAP cash generation $331 million +29%
Non GAAP free cash flow $231 million +104%
US GAAP net cash provided by operating activities $246 million +53%
(1) Percentages compare to equivalent 2013 period. The 2013 comparatives in this release have been recast to exclude the DERMAGRAFT® business from continuing operations following its divestment on January 17, 2014.
The Non GAAP financial measures included within this release are explained on page 22, and are reconciled to the most directly comparable financial measures prepared in accordance with US GAAP on pages 19 - 21 of the full release.
Flemming Ornskov, M.D., Shire's Chief Executive Officer, commented:
"I'm pleased with our strong first quarter results. Our sharpened strategy, the addition of CINRYZE from the ViroPharma acquisition and our continued focus on operational discipline have all contributed to this strong financial performance and our ability to drive further future growth. We have multiple drivers of growth within our portfolio.
Sales in ADHD were driven by strong performance of VYVANSE (up 18%). Our US prescription growth was in line with the overall market growth. We believe we can significantly increase our Neuroscience revenue through developing a treatment option in the growing adult market, expanding our international sales and progressing a potential new indication in Binge Eating Disorder.
LIALDA continues to grow (up 28%) and has very positive sales and prescription momentum, carrying on the outstanding performance from 2013 with total US prescriptions up 33% on the prior year and an increase in market share of eight percentage points in the past twelve months.
Our Rare Diseases products delivered good sales growth this quarter; we're pleased with FIRAZYR's strong performance (up 80%) and the $86 million contribution to product sales from CINRYZE in the first two months since the ViroPharma acquisition closed.
The integration of ViroPharma is progressing well and we are on target to deliver the previously estimated cost synergies by the end of 2015.
We're excited about the growing value in our innovative pipeline. We'll shortly be meeting with the FDA to determine our next steps with lifitegrast. We continue to advance our intrathecal enzyme replacement therapy program for rare pediatric CNS diseases. In addition, the ViroPharma acquisition brought us the Phase 2 program for maribavir, an investigational treatment under development for cytomegalovirus infection in transplant patients, as well as several potential new uses for CINRYZE. And, our acquisition of Fibrotech adds FT011, a small molecule targeting an innovative, novel mechanism of action, currently in a Phase 1B study in patients with renal impairment, and a Phase 2 study in patients with FSGS, a rare kidney disease, is planned.
Our strong financial performance and business progress this quarter gives us the confidence to increase our guidance for the full year 2014 and we now expect to deliver Non GAAP earnings per ADS growth in the mid-to-high twenty percent range."
- full release (PDF)