Shares in Shire (LON:SHP) have fallen into the red in afternoon trade following an initial surge, as the company updated investors on its third-quarter performance. While the rare disease specialist posted a rise in revenues and profits, it also revealed that it had suffered generic competition to its ulcerative colitis treatment Lialda.
As of 13:13 BST, Shire’s share price had given up 1.73 percent to 3,462.00p, after jumping more than one percent immediately after the results were released. The shares have lost just under 30 percent of their value over the past year, and are down by a little over a quarter in the year-to-date.
Shire sees revenues and profits rise
Shire announced in a statement today that its product sales had increased by seven percent to $3.53 billion in the third quarter, driven by rapid growth at the pharmco’s Immunology franchise. Non GAAP diluted earnings per American Depository Share meanwhile came in 20 percent higher at $3.81. Reuters noted in its coverage of the news that analysts on average had expected the company to report earnings per share of $3.69 on revenue of $3.75 billion for the third quarter.
The rare disease specialist, however, also revealed that its sales growth had been held back by the launch of generic competition to its ulcerative colitis treatment Lialda, as well as by a supply constraint related to hereditary angioedema drug Cinryze.
“We are reiterating our 2017 full year guidance, and I look forward to updating you on the Neuroscience strategic review by year end,” Shire’s chief executive Flemming Ornskov said in the statement. The company further assured investors that it had started a search for a new finance chief after Jeff Poulton announced plans to leave the company.