Shareholder value continues to rise on Shire Plc ‘s (LSE:SHP) stellar performance in the fourth quarter of 2011 with a phenomenal 47% increase in earnings over the same period in 2010. Price per share was up £32.00 at close of trading today, whilst speculation seemed to abound that the company may be ripe for a takeover.
Everything’s Going Shire’s Way
Although Shire’s CEO, Angus Russell declined to comment regarding potential takeover bids, he did praise the company’s performance, saying “our strategy of focusing on meeting the needs of patients, physicians and payors to deliver value to the healthcare system has led to growing sales across our balanced portfolio of differentiated products. In 2011 our total revenues topped $4 billion for the first time.” The $4.3 billion revenue for the year 2011 was an increase of 23% over the previous year. Operating income was reported at $1.1 billion, up from $794 million in 2010.
Product Sales and Royalties
Total product sales were $1,049 million, up 23% from the previous year. Sales of Vyvanse for treatment of ADHD were up 20%. This is double the growth rate of product for this market in the US.
- Sales of Adderall XR were up 40%
- Sales of Elaprase for treatment of Hunter Syndrome were up 17%
- Sales of Intuniv for treatment of ADHD were up 52%
- Sales of Replagal for treatment of Fabry Disease were up 17%
- Sales of Vpriv for treatment of Gaucher Disease were up 79%
- Sales of Lialda, which has a newly discovered potential for treatment of diverticulitis, were up 14%
- Sales of Dermagraft for treatment of diabetic foot ulcers contributed $105 million in additional revenue
Royalties
The company enjoyed an increase of 14% in royalty revenues for a total of $83.7 million.
Company Plans
While rumors and speculation may abound regarding the future of Shire, no official or off-the-record comments have been offered by directors of Shire.
The company strategy seems to be to build upon its success by expanding its ability to meet market demands. CEO Russell spoke about the development of the company’s new Massachusetts location saying,”the regulatory processes are progressing well at our new biologics manufacturing facility in Lexington, Massachusetts which will soon enable us to significantly increase capacity to meet growing global demand.” Elsewhere, he stated that, “Supported by our strong cash generation, we will continue to invest in growth prospects that will further leverage our established infrastructure. We expect 2012 to be a year of good earnings growth, as we aim to deliver increasing value to all our stakeholders.”
Company Spotlight
Shire defines itself as a specialty pharmaceutical company whose mission is “to help people with life-altering conditions lead better lives.” The company therefore focuses on scenarios where their products can make “an immediate and tangible difference” where conditions, left inadequately treated would dramatically affect patients lives, including debilitating and life-threatening diseases.
References
↑ Shire Company History
↑ Zacks
↑ Shire Website
↑ InPharm
↑ Shire Purpose Statement
Ted Oh, and I STILL think you should get Karen some bike shorts … EVERYBODY would want to talk to you, then!