Shire share price subdued ahead of pharmco’s full-year results

Analysts expect rise in earnings

Shire share price subdued ahead of pharmco’s full-year results

Shares in Shire (LON:SHP) have fallen into the red in today’s session, ahead of the pharmco’s full-year results tomorrow. The update will come after the group trimmed its revenue target earlier this year, and unveiled plans to split its rare disease and hyperactivity treatments businesses. 

As of 13:28 GMT, Shire’s share price had given up 0.17 percent to 3,191.50p, underperforming the broader UK market, with the benchmark FTSE 100 index having climbed into positive territory and currently standing 0.34 percent higher at 7,201.19 points. The group’s shares have lost a little over 30 percent of their value over the past year, as compared with about a 1.2-percent dip in the Footsie.

Shire to post results

Shire is scheduled to release its full-year results tomorrow and Proactive Investors reports that Deutsche Bank expects the pharmco’s underlying earnings per share on a constant currency basis to have climbed 15 percent year-on-year, driven by seven-percent pro forma product sales growth.

“Shire will experience pressure on growth from a full year of Lialda generics, and competitive pressure from Hemlibra on US Inhibitors sales in ‘18,” the analysts pointed out, as quoted by the newswire, adding, however, that despite that, continued growth of new products “and likely double-digit Immunology growth should ensure that product sales still grow in low single digits”.

Investors will also be looking out for updates on Shire’s integration of US blood disease specialist Baxalta, as well on the pharmco’s plans to create two separate divisions within the group, namely a Rare Disease Division and a Neuroscience Division.

Ratings update

Barclays kicked off coverage of Shire with an ‘equal weight’ stance earlier this month, without specifying a price target on the shares. According to MarketBeat, the rare disease specialist currently has a consensus ‘buy’ rating and an average price target of 5,334.38p.

As of 13:50 GMT, Tuesday, 13 February, Shire PLC share price is 3,195.50p.

Top Equities Brokers

0 Brokers added for comparison:
Clear all