Shares in Shire (LON:SHP) have advanced in today’s session, as the blue-chip pharma group delivered a rise in sales and profits for the first quarter. The rare disease specialist’s results come after the company reached a preliminary tie-up deal with Takeda Pharmaceutical earlier this week.
As of 13:35 BST, Shire’s share price had added 0.86 percent to 3,853.00p. The group’s shares are outperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.07 percent higher at 7,384.16 points.
Shire posts Q1 results
Shire said in a statement today that its product sales had grown seven percent to $3.64 billion in the first quarter of the year, driven by a six-percent rise in the group’s rare disease unit, which helped offset a four-percent decline in the company’s neurosciences division. Shire’s non-GAAP diluted earnings per American depository share meanwhile rose six percent to $3.86 year-on-year.
“Shire is off to a good start in 2018 delivering on our key priorities of commercial execution, pipeline progression, debt pay down, and portfolio optimization,” the group’s chief executive Flemming Ornskov commented in the statement.
Analysts mull over Takeda deal
Shire’s first-quarter update has been eclipsed by news of the group’s preliminary deal with Takeda, which will see shareholders in the FTSE 100 company receive 0.839 new Takeda shares and $30.33 in cash, equivalent to about £49 per share, and valuing the company at about £46 billion.
“The chances are UK shareholders in particular are not going to want Takeda shares, so there’s going to be a forced discount because some people are going to sell it,” said Neil Dwane, global strategist at Allianz Global Investors, as quoted by Reuters. According to Thomson Reuters data, Allianz Global Investors holds 1.1 percent of Shire.